WEBVTT - Debt Ceiling Update; Wood Misses Out On Nvidia Record Day

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<v Speaker 1>From the Bloomberg Interactive Burgers Studios. This is Bloomberg Daybreak

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<v Speaker 1>for Friday, May twenty six.

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<v Speaker 2>Coming up today, with less than a week till potential default,

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<v Speaker 2>signs of compromise are forming on the debt ceiling.

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<v Speaker 1>A Nobel Prize winning economists Warren's budget cuts will harm

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<v Speaker 1>the country's future.

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<v Speaker 2>Bets grow over another FED rate hike this summer.

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<v Speaker 1>And on prominent investor dumpson video shares before a record rally.

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<v Speaker 3>I'm Amy Morris. New York City is opening new respid

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<v Speaker 3>sites for migrants. And Connecticut lawmakers have passed an amended

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<v Speaker 3>version of the governor's gun safety bill.

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<v Speaker 4>John Staves Sharon's Ward's easy win for the Mets. The

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<v Speaker 4>Yankees lost NBA Playoffs. The Celtics against stayed alive. They

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<v Speaker 4>beat the heat.

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<v Speaker 5>That's all straight ahead on Bloomberg day Break, The Business

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<v Speaker 5>News You need to starn your day in just one

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<v Speaker 5>fifteen minute podcast each morning on Apples, Spotify, The Bloomberg

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<v Speaker 5>Business Appen everywhere you get your podcasts.

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<v Speaker 6>Good morning, I'm Nathan.

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<v Speaker 1>Hager and I'm Karen Moscow. Here are the stories we're

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<v Speaker 1>following today.

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<v Speaker 2>We now have less than a week until the US

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<v Speaker 2>could begin to default on its debts, and White House

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<v Speaker 2>and Republican negotiators are still trying to reach an agreement

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<v Speaker 2>on the debt ceiling. President Biden says progress is being made.

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<v Speaker 7>Speaker McCarthy and I have had several productive conversations, and

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<v Speaker 7>our staff continue to meet as we speak, as a

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<v Speaker 7>matter of fact, and they're making progress.

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<v Speaker 2>And House Speaker Kevin McCarthy is that going President Biden's sentiments, we.

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<v Speaker 7>Know this would not be easy.

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<v Speaker 6>It's hard, but we're working and we're going to continue

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<v Speaker 6>to work till we get this done.

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<v Speaker 2>When Speaker McCarthy says he'll work for the weekend to

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<v Speaker 2>get a deal done, and now we're hearing the gap

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<v Speaker 2>between both sides may be narrowing, sources tell Bloomberg a

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<v Speaker 2>framework is emerging that would include a two year cap

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<v Speaker 2>on federal spending while allowing defense spending to rise three

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<v Speaker 2>percent next year. If a deal is announced soon, a

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<v Speaker 2>vote in the House could come as early as Tuesday.

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<v Speaker 7>Well.

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<v Speaker 1>Meantime, Nathan, we have a warning from Paul Krugman on

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<v Speaker 1>the dead crisis the Nobel Prize Economists as negotiators risk

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<v Speaker 1>undermining the nation's prosperity by cutting spending on programs like

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<v Speaker 1>education and child nutrition.

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<v Speaker 8>What's happening right now is that in the effort to

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<v Speaker 8>hold down headline spending right now, we're actually kind of

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<v Speaker 8>disinvesting in the country's future. And that's that's pretty alarming.

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<v Speaker 1>Paul Krugan made the comments in an interview with David

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<v Speaker 1>Weston on Bloomberg's Wall Street. We catch the program today

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<v Speaker 1>at six pm Eastern on Bloomberg Radio and Television.

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<v Speaker 2>Okay, let's turn to the broader economy, Karen, because we're

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<v Speaker 2>going to get an inflation report today that is closely

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<v Speaker 2>watched by the Federal Reserve. That's as investors rethink the

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<v Speaker 2>chances of a rate pause. Let's get the details now

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<v Speaker 2>with Bloomberg's John Tucker, John.

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<v Speaker 9>Hi, Nathan. The investors now betting we're going to see

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<v Speaker 9>another rate increase in the next two months. As the

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<v Speaker 9>view shared by ALTHEA. Spinozi of Saxo.

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<v Speaker 10>Bank, we believe that there is one lost rate high

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<v Speaker 10>that the filin that our server has to deliver is

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<v Speaker 10>going to be that in June and July.

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<v Speaker 9>She's looking at the latest data. It's resilient and suggests

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<v Speaker 9>policymakers will have to keep their foot on the brakes

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<v Speaker 9>to slow the economy further to battle inflation. The narrative

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<v Speaker 9>hasn't been easy to follow. You have Fed shared Jerome

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<v Speaker 9>pal saying just last week his team could afford to

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<v Speaker 9>keep monitoring data that actually sounded a little dubvish and

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<v Speaker 9>suggests a pause at the next meeting. Now we can

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<v Speaker 9>throw into the mix of the Fed's preferred inflation measure,

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<v Speaker 9>the PCE deflator will be out this morning. Bloomberg Economics

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<v Speaker 9>says the data will probably show elevated inflation, if make

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<v Speaker 9>the Fed's job that much more difficult in New York.

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<v Speaker 9>I'm John Tucker, Bloomberg Day Break, All.

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<v Speaker 1>Right, John, thank you well. Banks also remain in focus

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<v Speaker 1>this morning. JP Morgan Cheese has notified about one thousand

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<v Speaker 1>First Republic employees that they will not have jobs after

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<v Speaker 1>its takeover of the failed lender. Sources say the biggest

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<v Speaker 1>US bank offered full time or transitional roles to almost

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<v Speaker 1>eighty five percent of the nearly seven thousand employees still

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<v Speaker 1>working at First Republic when it collapsed. The rest have

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<v Speaker 1>been told they will not get offers well.

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<v Speaker 2>Meantime, another bank, Morgan Stanley is letting go of at

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<v Speaker 2>least six managing directors Karen, including some Key China bankers.

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<v Speaker 2>It's part of broader job cuts the bank has been

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<v Speaker 2>making in Asia. Deal Making in the region has suffered

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<v Speaker 2>due to growing tensions between the US and China, combined

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<v Speaker 2>with tepid economic growth.

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<v Speaker 1>Well Nathan two banks in New York are seeing less

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<v Speaker 1>money coming in from this city. The New York City

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<v Speaker 1>Banking Commission has voted to prohibit additional city deposits at

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<v Speaker 1>Capital one Financial and Key Corpse Key Bank for up

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<v Speaker 1>to two years. Then as if for the banks failed

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<v Speaker 1>to submit plans demonstrating efforts to combat discrimination and we

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<v Speaker 1>get the story from Bloomberg's Charlie Pellett.

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<v Speaker 7>At its first ever public hearing, the Commission extended conditional

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<v Speaker 7>designation to Capital One and Key Bank, which will allow

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<v Speaker 7>them to service existing accounts for one year. The Commission

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<v Speaker 7>also deemed twenty six banks eligible to hold the city's

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<v Speaker 7>deposits and contract to provide banking services to city agencies

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<v Speaker 7>for the next two years. To a statement from New

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<v Speaker 7>York City Controller Brand Lander's office, as of the end

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<v Speaker 7>of April, Capital One held seven point two million dollars

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<v Speaker 7>in city deposits across one hundred eight accounts. Key Bank

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<v Speaker 7>held ten million across three accounts in New York. Charlie Pellett,

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<v Speaker 7>Bloomberg Daybreak.

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<v Speaker 2>All right, Charlie, thank you.

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<v Speaker 7>Turning to the markets.

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<v Speaker 2>Now we're learning the one prominent investor missed out big

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<v Speaker 2>on Nvidia's recent rally. Kathy Woods, flagship Exchange traded fund,

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<v Speaker 2>closed out It's in Nvidia' steake in early January. Since then,

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<v Speaker 2>the chip makers added around five hundred and sixty billion

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<v Speaker 2>dollars in market cap, the last two hundred billion of

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<v Speaker 2>which came on yesterday's AI related earnings surge. Although Wood

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<v Speaker 2>holds in Vidia across several smaller funds, investors in her

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<v Speaker 2>flagship Arc Innovation ETF have mostly been left out of

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<v Speaker 2>this year's one hundred and sixty percent rally.

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<v Speaker 1>Meantime, Nathan, another chip maker, is surging on the artificial

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<v Speaker 1>intelligence craze. Shares of our Veil technology are up about

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<v Speaker 1>sixteen and a half percent. The company said it expects

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<v Speaker 1>revenue from AIDS this year. Marvel says sales of AI

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<v Speaker 1>related products will at least double in its current fiscal year.

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<v Speaker 1>Adjusted earnings for the first quarter also came in above

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<v Speaker 1>analyst estimates.

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<v Speaker 2>Outside Chips Careen shares of Gapper on the move this

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<v Speaker 2>morning as well. They're rising about twelve percent in early trading.

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<v Speaker 2>The retailer reported better than expected earnings, while margins improved

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<v Speaker 2>in the first quarter. Gap has been reducing headcount and

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<v Speaker 2>trimming expenses. Time and how to take a look at

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<v Speaker 2>some of the other stories making news in New York

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<v Speaker 2>and around the world. And for that, we're joined by

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<v Speaker 2>Bloomberg's Amy Morris. Good morning, Amy, Good morning Nathan.

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<v Speaker 3>New York City now opening respite sites for migrants. They

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<v Speaker 3>serve as waiting rooms until the migrants can be placed

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<v Speaker 3>somewhere more stable. One side is called Saint Bridget's. It's

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<v Speaker 3>a shuttered Catholic school in the East Village. Say of

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<v Speaker 3>Colina is a migrant from Venezuela and tells New York

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<v Speaker 3>One through a translator that conditions are rough, but he

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<v Speaker 3>is hopeful.

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<v Speaker 7>The hardest part about being here is to be without work.

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<v Speaker 7>We don't sleep well. Any of us. Those that have

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<v Speaker 7>become citizens are lucky they're in a stable place.

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<v Speaker 3>The Mayor's office says New York City is receiving hundreds

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<v Speaker 3>of migrants each day, even though there is just no

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<v Speaker 3>room left to house them. Connecticut lawmakers in the state

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<v Speaker 3>House of Representatives signed off on an amended version of

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<v Speaker 3>Governor Lamont's gun safety legislation. The bill includes a tighter

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<v Speaker 3>definition of prohibited military style rifles, It reduces places where

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<v Speaker 3>gun owners are allowed to carry their weapons in public.

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<v Speaker 3>It includes safe storage requirements and limits permit holders to

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<v Speaker 3>buying no more than three weapons each month. Representative Steve

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<v Speaker 3>Stafstrom tells The Connecticut Post that the legislation is the

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<v Speaker 3>most comprehensive gun safety measure since the twenty thirteen response

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<v Speaker 3>to the Sandy Hook Elementary School massacre. Former Donald Trump

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<v Speaker 3>campaign strategist Steve ben And will go on trial in

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<v Speaker 3>New York next May on state charges that he defrauded

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<v Speaker 3>contributors to a fund to build a wall on the

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<v Speaker 3>US Mexico border. Ben In faces money laundering, fraud, and

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<v Speaker 3>ND conspiracy charges. His trial will follow that of the

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<v Speaker 3>former president on unrelated charges in quick succession and in

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<v Speaker 3>the run up to next year's presidential election. New Jersey

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<v Speaker 3>Assembly Speaker Craig Kauflin has introduced a proposal that would

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<v Speaker 3>cut property taxes for most senior citizens in half, while

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<v Speaker 3>also helping to pay for their health insurance. His proposal

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<v Speaker 3>is called Stay and Jay. Its goal is to prevent

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<v Speaker 3>seniors from moving out of New Jersey. The proposal would

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<v Speaker 3>provide an income tax credit of fifty percent of the

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<v Speaker 3>property tax bill for New Jersey residents. Governor Phil Murphy

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<v Speaker 3>vows to veto what he calls an irresponsible bill if

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<v Speaker 3>it reaches his desk. Global News twenty four hours a day,

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<v Speaker 3>powered by more than twenty seven hundred journalists and analysts

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<v Speaker 3>in over one hundred twenty countries. I'm Amy Morris, and

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<v Speaker 3>this is Bloomberg Nathan.

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<v Speaker 2>Thank you Amy. Time now for our Bloomberg Sports Update.

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<v Speaker 2>For that we bring in John Stashaur.

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<v Speaker 7>Thanks Beth.

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<v Speaker 4>Things are getting very interested in this Celtics Heat East

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<v Speaker 4>Final series because the Celtics are now halfway towards doing

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<v Speaker 4>something no NBA team has done in one hundred and

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<v Speaker 4>fifty attempts. Boston already has the only baseball team to

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<v Speaker 4>win a series after trailing three to nothing, and now,

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<v Speaker 4>nineteen years after the Red Sox comeback on the Yankees,

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<v Speaker 4>the Celtics have won games four and five. It was

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<v Speaker 4>easy in Boston one ten to ninety seven over Miami Celtics.

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<v Speaker 4>Led by twenty four in the fourth quarter, they had

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<v Speaker 4>four players score over twenty points, including Jalen Brown.

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<v Speaker 11>I bet it's been against the wall.

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<v Speaker 5>Obviously, we didn't imagine being in his position, being down

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<v Speaker 5>three zero, But you know, university is you get to

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<v Speaker 5>see why what a team.

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<v Speaker 1>Is really made of, and I mean it couldn't get

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<v Speaker 1>no worse than being down three.

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<v Speaker 4>ZHO Game six tomorrow in Miami. Denver Nuggets await the winner.

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<v Speaker 4>Dallas Stars also stayed alive a three two overtime win.

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<v Speaker 4>Vegas still leads that Stanley Cup West Final series three

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<v Speaker 4>to one, and that was the final at the Stadium,

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<v Speaker 4>three to one, beating the Yankees. Kyle Gibson through seven

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<v Speaker 4>scoreless innings. Clark Schmid pitched well but fell the two

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<v Speaker 4>to five. Yanks are starting a rookie tonight against San

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<v Speaker 4>Diego in the Bronx Randy Vesquez. The Mets will have

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<v Speaker 4>Max Schurz are going tonight at Colorado. The Mets just

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<v Speaker 4>salvaged one in Chicago, easy win over the Cubs ten

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<v Speaker 4>to one, fifteen hits the night after getting only four

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<v Speaker 4>one of the hits of Pee Alonzo home run his nineteenth.

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<v Speaker 4>When we last saw Michael Block, the forty six year

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<v Speaker 4>old had a hole in one, capping four terrific rounds

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<v Speaker 4>at the PGA Championship, and that earned the club pro

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<v Speaker 4>from California an invite to play the Colonial in Dallas.

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<v Speaker 4>Back to reality yesterday, Block shot eighty one. He's in

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<v Speaker 4>last place, already nineteen shots behind the leader, the brit

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<v Speaker 4>Harry Hall, John Stashedward. Bloomberg Sports.

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<v Speaker 11>From coast to coast, from New York to San Francisco,

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<v Speaker 11>Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

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<v Speaker 11>Business Appen Bloomberg dot Com. This is Bloomberg Daybreak. Good morning.

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<v Speaker 2>I'm Nathan Hager, and we are just days from a

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<v Speaker 2>potential US default. As negotiators continue debating a debt limit deal,

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<v Speaker 2>Congress is taking its scheduled Memorial Day recess. Michigan Congresswoman

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<v Speaker 2>Debbie Dingle, for one, is not happy that lawmakers are

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<v Speaker 2>leaving their posts with no agreement in place. Dingle says

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<v Speaker 2>she won't attend a family event in Italy this weekend

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<v Speaker 2>to ensure she is ready for a potential vote. Debbie

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<v Speaker 2>Dingle discussed the negotiations and the risks of a US

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<v Speaker 2>default with our Joe Matthew and Kaylee Lines on Bloomberg

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<v Speaker 2>Sound on, let's bring you part of that discussion.

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<v Speaker 5>Now.

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<v Speaker 10>We can not default. We have no choice. Republicans have

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<v Speaker 10>got to come to the table. We have to get

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<v Speaker 10>this done. I'm sick of the drama that happens in

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<v Speaker 10>this city, the showdowns that we always have, and i

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<v Speaker 10>am just we have to get it done. We have

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<v Speaker 10>no choice but to get this done. And we should

0:11:57.760 --> 0:12:00.560
<v Speaker 10>be getting it done today. We should have gotten done

0:12:00.920 --> 0:12:05.079
<v Speaker 10>long before this. But as your economists are telling you,

0:12:05.160 --> 0:12:08.760
<v Speaker 10>businesses are telling you, my constituents who range from a

0:12:08.800 --> 0:12:12.640
<v Speaker 10>whole lot of different my small businesses, my larger businesses, people,

0:12:13.000 --> 0:12:17.360
<v Speaker 10>my retirees with savings accounts. We know all the people.

0:12:17.400 --> 0:12:19.719
<v Speaker 10>They're going to be intected by this, people who are

0:12:19.760 --> 0:12:23.720
<v Speaker 10>on Social Security. We cannot do this to the American people,

0:12:23.760 --> 0:12:26.920
<v Speaker 10>to the American economy. We have to get this deal done.

0:12:27.200 --> 0:12:31.120
<v Speaker 12>We spoke with Congressman Jim McGovern two days ago about this.

0:12:31.200 --> 0:12:33.840
<v Speaker 12>He said he's a no vote if additional work requirements

0:12:33.920 --> 0:12:35.439
<v Speaker 12>end up in the deal. Are you are you worried

0:12:35.480 --> 0:12:37.280
<v Speaker 12>about what President Biden might agree to.

0:12:37.760 --> 0:12:40.960
<v Speaker 10>I believe the President Biden is in touch with the

0:12:41.000 --> 0:12:45.200
<v Speaker 10>Democrats in this caucus. He knows what matters. He is

0:12:45.360 --> 0:12:49.000
<v Speaker 10>fighting for those values. I believe, no matter where you

0:12:49.040 --> 0:12:51.920
<v Speaker 10>are in the spectum inside the Democratic Party, we share

0:12:51.960 --> 0:12:57.320
<v Speaker 10>those same values. And I believe he is going to

0:12:58.280 --> 0:13:02.000
<v Speaker 10>not agree to anything that the majority of our caucus

0:13:02.040 --> 0:13:05.680
<v Speaker 10>cannot support, or that's what I am very hopeful of.

0:13:05.880 --> 0:13:08.319
<v Speaker 10>He does know how our caucus feels. I know that

0:13:08.400 --> 0:13:10.200
<v Speaker 10>he talks to us regularly.

0:13:10.120 --> 0:13:13.439
<v Speaker 13>A congresswoman as he needs to compromise in theory to

0:13:13.520 --> 0:13:16.120
<v Speaker 13>get to get a deal done. Are you willing to

0:13:16.200 --> 0:13:18.640
<v Speaker 13>vote for whatever it is that the President does agree

0:13:18.679 --> 0:13:20.200
<v Speaker 13>to to avoid a default.

0:13:20.679 --> 0:13:22.880
<v Speaker 10>I will never say that I will vote for something

0:13:23.000 --> 0:13:26.520
<v Speaker 10>I have not seen that is irresponsible for any elected official.

0:13:27.840 --> 0:13:31.160
<v Speaker 10>I know how important it is not to default on

0:13:31.280 --> 0:13:34.400
<v Speaker 10>the loan on our debt ceiling. I keep calling his

0:13:34.559 --> 0:13:41.120
<v Speaker 10>loans that we cannot default. But I really do have

0:13:41.200 --> 0:13:43.760
<v Speaker 10>to see what is in that film, what the impact

0:13:43.840 --> 0:13:45.480
<v Speaker 10>is going to be in our people. And I think

0:13:45.520 --> 0:13:48.960
<v Speaker 10>that it is very important that people understand right now

0:13:49.480 --> 0:13:53.200
<v Speaker 10>that we cannot negotiate a package to appease the far

0:13:53.400 --> 0:13:56.880
<v Speaker 10>right of the Republican Party who are never going to

0:13:57.040 --> 0:14:01.640
<v Speaker 10>vote for this agreement anyway, to be negotiating a deal

0:14:02.200 --> 0:14:05.720
<v Speaker 10>that helps the working men and women of this country

0:14:06.679 --> 0:14:10.160
<v Speaker 10>across the country, that is what both parties need to

0:14:10.200 --> 0:14:14.760
<v Speaker 10>be focused on, not to a very far group of

0:14:14.800 --> 0:14:16.920
<v Speaker 10>people that are never going to vote for this bill ever.

0:14:17.080 --> 0:14:19.680
<v Speaker 13>Congressman, are you worried that we could see another downgry

0:14:19.720 --> 0:14:22.840
<v Speaker 13>What would would it be irresponsible of a credit readings agency,

0:14:22.960 --> 0:14:25.720
<v Speaker 13>given the deadlock we are seeing in Washington on this

0:14:25.760 --> 0:14:28.920
<v Speaker 13>issue at the moment, to say that our credit worthiness

0:14:28.960 --> 0:14:29.720
<v Speaker 13>has been impaired.

0:14:30.640 --> 0:14:33.760
<v Speaker 10>I want to say something to you all that and

0:14:33.920 --> 0:14:38.840
<v Speaker 10>take a bigger picture. I think the political divide in

0:14:38.840 --> 0:14:44.960
<v Speaker 10>this country. I think this lack of civility is a

0:14:45.080 --> 0:14:49.800
<v Speaker 10>significant factor every day now in business decisions that are

0:14:49.840 --> 0:14:54.040
<v Speaker 10>being made. People are looking at states that have more

0:14:54.120 --> 0:14:58.240
<v Speaker 10>of the political division than other states that they're making

0:14:58.280 --> 0:15:02.600
<v Speaker 10>decisions about where there are are locating plant I'm a cargirl,

0:15:02.680 --> 0:15:07.480
<v Speaker 10>you know that decisions about where manufacturing facilities are going

0:15:07.520 --> 0:15:10.560
<v Speaker 10>to be located, where people are opening their businesses. This

0:15:10.800 --> 0:15:13.360
<v Speaker 10>is people that you look at the state of Florida

0:15:13.440 --> 0:15:17.560
<v Speaker 10>and how bitterly divided that they are. I think we

0:15:17.680 --> 0:15:20.840
<v Speaker 10>all need to understand. I'm an American first, I'm not

0:15:21.000 --> 0:15:24.360
<v Speaker 10>a Democrat or and my friends on the other side

0:15:24.400 --> 0:15:27.280
<v Speaker 10>of the all are Republicans. We're Americans and we need

0:15:27.320 --> 0:15:31.000
<v Speaker 10>to be working together for the American people. This political

0:15:31.160 --> 0:15:34.880
<v Speaker 10>divide is poisoning us, and it is hurting us in

0:15:35.000 --> 0:15:35.880
<v Speaker 10>many ways.

0:15:36.120 --> 0:15:37.280
<v Speaker 12>What are you going to do in the next couple

0:15:37.320 --> 0:15:38.800
<v Speaker 12>of days while you wait for something to happen.

0:15:39.320 --> 0:15:42.680
<v Speaker 10>I'm going to be sitting here in my office in Washington,

0:15:42.760 --> 0:15:46.320
<v Speaker 10>d C. My godmother's daughter has promised me she's going

0:15:46.360 --> 0:15:49.680
<v Speaker 10>to send me video live of what is happening. But

0:15:49.960 --> 0:15:53.400
<v Speaker 10>we need to come together. We need to make sure

0:15:53.440 --> 0:15:55.800
<v Speaker 10>we never get in this position again.

0:15:58.400 --> 0:16:01.200
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