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Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

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Speaker 1: Break for Tuesday, May twenty third.

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Speaker 2: Coming up today, still no deal. President Biden and Speaker

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Speaker 2: McCarthy meet again to try to avert a default.

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Speaker 1: Two FED officials and Jamie Diamond expect more rate increases.

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Speaker 2: Saudi Arabia sents a warning to oil short sellers from

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Speaker 2: the Cutter Economic Forum, and.

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Speaker 1: You'lp share surge as an activist pushes a sale.

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Speaker 3: Looks like subway and bus fairs are going up. Donald

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Speaker 3: Trump's accuser amend's her lawsuit. I'm John Tuffer. Those stories

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Speaker 3: straight Ahead.

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Speaker 4: From John Stas Sharon Sports. The Nuggets finished a sweep

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Speaker 4: for the Lakers, another win for the Florida Panthers. Yankees

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Speaker 4: host the Orioles tonight them Let's visit the.

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Speaker 5: Code That's all straight Ahead on Bloomberg day Break, The

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Speaker 5: Business news you need to sturn your day in just

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Speaker 5: one fifteen minute podcast each morning on Apples, Spotify, the

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Speaker 5: Bloomberg Business app and everywhere you get your podcasts.

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

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

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Speaker 2: Karon, They're still talking, but there's still no deal. That's

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Speaker 2: where things stand in debt ceialing negotiations between President Biden

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Speaker 2: and House Speaker Kevin McCarthy, with the earliest possible default

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Speaker 2: now just nine days away. Speaker McCarthy says last night's

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Speaker 2: discussions were productive, but the Republican position is clear. We're

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Speaker 2: not going to raise taxes because we bring in more

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Speaker 2: money than we ever have, and we're not going to

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Speaker 2: pass the clean debt ceiling, and we've got to spend

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Speaker 2: less than we spent this year, and so everything else.

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Speaker 6: Is open for negotiations, but.

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Speaker 1: That is at the end of the day.

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Speaker 7: It has to fit in that place.

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Speaker 2: If President Biden released a statement after the meeting, he

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Speaker 2: says he reiterated that default is off the table and

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Speaker 2: the only way to move forward is to reach a

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Speaker 2: bipartis in agreement. Speaker McCarthy says he plans to speak

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Speaker 2: with the President every day until they reach a deal.

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Speaker 1: Well, Nathan, the stalemate comes a bit another warning from

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Speaker 1: Janety Yellen. The Treasury Secretary, says it's now quote highly

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Speaker 1: likely that her department will run out as a few

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Speaker 1: cash in early June. In fact, she repeated her warning

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Speaker 1: that the moment could come as soon as June.

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Speaker 2: First, and as detlimit talks continue Karen Reaction pours in

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Speaker 2: on both sides of the aisle. Former Democratic Senator Barbara

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Speaker 2: Boxer says President Biden shouldn't have to negotiate.

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Speaker 7: I do trust the President. I don't like the fact

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Speaker 7: that there is a negotiation.

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Speaker 1: I personally liked it better when he said he wasn't

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Speaker 1: going too, but it is.

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Speaker 5: What it is.

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Speaker 2: The former senator. Boxer says she trusts the President not

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Speaker 2: to give in on his positions. Meanwhile, former acting White

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Speaker 2: House Chief of Staff mcmulvaney says, Speaker McCarthy has done

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Speaker 2: a good job.

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Speaker 8: I thank Kevin feels what he has held up his

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Speaker 8: end of the bargain. He got his extreme right wing

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Speaker 8: on board with a package that nobody thought he could pass.

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Speaker 8: No one thought he could pass any package to raise

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Speaker 8: the debt ceiling, but he did.

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Speaker 9: Now.

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Speaker 8: I think if you ask Kevin and el Kenda, what

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Speaker 8: he's worried about is he doesn't think that Biden has

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Speaker 8: control over his progressive way in the same way that

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Speaker 8: Kevin is working with his right wing.

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Speaker 2: Mcmulvaney and Barbara Boxer were both guests on Bloomberg's Sound

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Speaker 2: On Catch the program weekdays one pm Eastern on Bloomberg

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Speaker 2: Radio or listen on demand wherever you get your podcasts.

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Speaker 1: Well, as investors deal with the possibility of a debt default, Nathan,

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Speaker 1: the prospect of more rate hikes may also be in

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Speaker 1: the card. Saint Louis Fed President James Bullard says he's

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Speaker 1: backing more hikes this year to quell inflation.

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Speaker 10: I'm thinking, you know, two more moves this year. Now,

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Speaker 10: exactly where those would be this year, I don't know,

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Speaker 10: but I've often advocated sooner rather than later. You want

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Speaker 10: to get the downward pressure on inflation while you can.

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Speaker 10: And also, you know, you want to fight inflation while

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Speaker 10: the labor market's really strong.

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Speaker 1: And Buller's call for more tightening is echoed by fellow

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Speaker 1: policymaker Neil Kashkari. The Minneapolis Fed president, says that if

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Speaker 1: the Central Bank does pause, it should not be taken

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Speaker 1: as a sign that tightening is over well.

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Speaker 2: JP Morgan Chase CEO Jamie Diamond is also predicting more

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Speaker 2: rate hikes. Karen. He spoke at the bank's Investor Day

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Speaker 2: in New York.

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Speaker 9: I think everyone should be prepared for rates going higher

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Speaker 9: from here. You know, if that five percent none off

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Speaker 9: of that funds if I and I've been advising this

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Speaker 9: to clients and banks, you should be paired for six seven.

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Speaker 2: Jamie Diamond, who's sixty seven years old, says he is

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Speaker 2: still invigorated and has no plans to quit anytime soon.

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Speaker 11: Well.

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Speaker 1: Turning to the commodity markets now Nathan a warning from

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Speaker 1: Saudi Arabia's top energy official to oil short sellers a

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Speaker 1: week before opek Plus's next meeting.

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Speaker 7: I don't have to show my cards.

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Speaker 9: I'm not a poker player, and I don't know poker

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Speaker 9: how to play poker. But I got it from a

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Speaker 9: movie somewhere.

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Speaker 12: But but I.

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Speaker 7: Would just tell him watch out.

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Speaker 1: And that was Saudi Energy Minister Prince Abdulazi has been

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Speaker 1: salmon speaking earlier this morning at the Cutter Economic Forum

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Speaker 1: in a Doha and checking oil right now, I'm excrude

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Speaker 1: oil is down a third of up percent. It's seventy

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Speaker 1: one dollars eighty two cents a barrel.

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Speaker 2: In Corporate news this morning, Karen TikTok is soon going

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Speaker 2: to grant Oracle full access to its source code, its

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Speaker 2: algorithm and its content moderation material.

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Speaker 13: More from Bloomberg's Doug Prisner. The plan aims to alleviate

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Speaker 13: criticism from US policymakers who worry TikTok's ownership by China's

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Speaker 13: Bike Dance opens the door to influence her data collection

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Speaker 13: by the Chinese government. Now, TikTok's data for US users

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Speaker 13: will be cordoned off and it's technology reviewed by partners

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Speaker 13: like Oracle to assess security risk. Oracle will also begin

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Speaker 13: monitoring the controlled gateways where data comes in and out

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Speaker 13: of the secure environment. Oracle set up on servers to

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Speaker 13: host data from TikTok's US users in New York. I'm

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Speaker 13: Doug Prisoner, Bloomberg Daybreak.

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Speaker 1: All right, Doug, thanks, we'll share of Yelp a fourteen

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Speaker 1: percent at early training. The Wall Street Journal reporting an

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Speaker 1: activist investor as called for the company to look into

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Speaker 1: a sale and other strategic options. The paper says TCS

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Speaker 1: Capital Management plans to deliver a letter to Yelp's board

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Speaker 1: later today in which it makes the case for a sale.

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Speaker 2: You know the earnings Newscaren Zoom Videos raise its full

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Speaker 2: year sales forecast. Bloomberg's Charlie Pellett reports.

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Speaker 11: It is a positive sign for the software makes effort

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Speaker 11: to continue growing in a post pandemic world. The San

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Speaker 11: Jose based company said revenue for the fiscal year ending

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Speaker 11: in January twenty twenty five will be four point four

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Speaker 11: seven to four point four nine billion dollars. That is

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Speaker 11: up from an earlier outlook of about four point four

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Speaker 11: to four billion. Zoom, which burst into public consciousness during

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Speaker 11: the height of the pandemic, is fighting to reverse us

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Speaker 11: slow down in growth for its video communications service by

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Speaker 11: expanding its tools for business in New York. Charlie Pellett

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Speaker 11: Bloomberg Dabris.

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Speaker 2: Time now to take a look at some of the

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Speaker 2: other stories making news in New York and around the world.

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Speaker 2: For that, we are joined by Bloomberg's John Tucker.

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Speaker 3: Good morning, John, Yeah, Good morning, Dathan. Was Subway and

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Speaker 3: bus fares maybe going up? The Metropolitan Transportation Authority planning

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Speaker 3: to boost its fares and tolls in late August, as

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Speaker 3: the largest US transit provider looks to collect more revenue

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Speaker 3: to help close budget deficits. The MTA considering boosting the

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Speaker 3: cost of a single subway or bus ride to two

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Speaker 3: dollars ninety cents from two seventy five. It is the

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Speaker 3: extra cash as ridership hasient to match pre pandemic levels.

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Speaker 3: Weekday subway ridership is about seventy percent of what it

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Speaker 3: was in twenty nineteen. The New York author who won

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Speaker 3: a five billion dollar sexual abuse trial against Donald Trump

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Speaker 3: this month is seeking new damages that story from Bloomberg's

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Speaker 3: Jeff Bellinger.

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Speaker 7: Egene Carroll is asked a federal judge in Manhattan to

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Speaker 7: allow additional details in the suit in which she claims

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Speaker 7: Trump defamed her. She wants to add remarks he made

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Speaker 7: about her on a recent CNN town hall. She's now

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Speaker 7: demanding ten million dollars. During the televised town hall, which

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Speaker 7: aired one day after a sexual abuse verdict against the

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Speaker 7: former president, Trump lashed out at Carroll. He called her

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Speaker 7: allegations a fake story and dismissed her as a whack job.

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Speaker 7: In the question and answer session from New Hampshire Jeff

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Speaker 7: Bellinger Bloomberg Radio.

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Speaker 3: US Labor Board prosecutors a lunch and a cod Amazon

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Speaker 3: repeatedly violated federal labor law at its sole unionized warehouse

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Speaker 3: on Staten Island. In a filing the National Labor Relations

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Speaker 3: Board Regional director writes that Amazon unilaterally changed policies and

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Speaker 3: terminated union supporters. Republican South Carolina Senator Tim Scott joining

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Speaker 3: what is likely to become a packed race for the

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Speaker 3: GUOP nomination and will go toe to toe with contenders

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Speaker 3: like former President Donald Trump. During his remarks at the

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Speaker 3: announcement rally, Scott described the country under the Biden administration

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Speaker 3: as a nation in retreat that's under attack from the

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Speaker 3: far left.

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Speaker 11: Attacking our American values, our schools, our economy, and our security.

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Speaker 3: But not on my watch, not on my watch. Word

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Speaker 3: this morning that Ukrainian President Flodimir Zelensky has met with

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Speaker 3: troops at the front line of Ukraine's Donesque region. His

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Speaker 3: visit may be a much needed boost to morale. The

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Speaker 3: eastern Ukrainian town of Bakhmud was just capture by Russian

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Speaker 3: forces after more than two hundred and twenty days of

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Speaker 3: house to house fighting. Global News twenty four hours a

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Speaker 3: day were powered by more than twenty seven hundred journalist

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Speaker 3: at analysts in more than one hundred and twenty countries.

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Speaker 3: I'm John Tucker. This is Bloomberg, Nathan.

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Speaker 2: Thank you John. Time now for the Bloomberg Sports Update.

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Speaker 2: Good morning, John Stanshauer.

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Speaker 4: Good morning, Nathan. If the Heat beat the Celtics tonight

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Speaker 4: Game four in Miami, then the NBA will have something

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Speaker 4: that hasn't had since nineteen fifty seven, two series sweeps.

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Speaker 4: Going into the Finals Game four in the West and

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Speaker 4: NLA Lakers looked like they were gonna stay alive. They

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Speaker 4: led Denver by fifteen at the half and then got

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Speaker 4: out scored by twenty in the third corner. The Nuggets

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Speaker 4: won one thirteen, one eleven. It's their first ever series sweep,

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Speaker 4: their first ever trip to the NBA Finals. Nikola Jokicz

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Speaker 4: thirty points, fourteen rebounds, thirteen assists. Lebron James scored forty

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Speaker 4: thirty one in the first half, but he missed two

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Speaker 4: game time shots down the stretch, and Lebron then surprised

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Speaker 4: many by hinting at retirement. If they Heat win tonight,

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Speaker 4: they're into the finals as an eight seed. The hockey

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Speaker 4: team from South Florida also one win from an East

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Speaker 4: Final sweep on a trip to the Stanley Cup Final

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Speaker 4: as an eight seed. The Panthers top Carolina one nothing.

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Speaker 4: Florida has won ten of its last eleven playoff games

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Speaker 4: and nine of the ten wins have been by one goal.

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Speaker 4: Yankees back at the stadium tonight to play Baltimore. Here's

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Speaker 4: Aaron Bowen after the six to one road.

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Speaker 14: Trend, excited about how well this team is competing their

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Speaker 14: level of again, walk in with edge, prepare and compete,

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Speaker 14: and they're doing that at a high level right now.

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Speaker 4: Eric Colet and I facing the much improved Orioles who

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Speaker 4: have baseball second best record. Mets and Cubs at Wrigley,

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Speaker 4: Mets going for a six straight win. Tiger Woods made

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Speaker 4: official he won't play next month's US Open. Tom Brady

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Speaker 4: has officially become a minority owner in the Las Vegas Raiders.

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Speaker 4: NFL approved flexing some Thursday night games good for TV,

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Speaker 4: but the Jets and Giants both voted no, Billy need

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Speaker 4: was unfair to fans who attend the games. Johns Dash

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Speaker 4: Edward 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, DC, nationwide on Siriusxam of Bloomberg Business

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Speaker 6: Appen Bloomberg dot com. This is Bloomberg Daybreak.

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Speaker 2: Good morning. I'm Nathan Hager with the US now just

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Speaker 2: nine days from a potentially catastrophic default on its debt.

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Speaker 2: House Speaker Kevin McCarthy has emerged from his latest meeting

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Speaker 2: with President Biden without a deal, but with a promise

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Speaker 2: to keep talking.

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Speaker 7: We know the deadline.

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Speaker 10: I think the President and I are going to talk

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Speaker 10: every day to try to find until we get this done.

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Speaker 2: That was Speaker McCarthy following that White House meeting last night.

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Speaker 2: For more, we are joined from Washington by Bloomberg government

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Speaker 2: reporter Jack Fitzpatrick, who has been following these discussions for

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Speaker 2: weeks now. Jack, good morning. We keep hearing from both

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Speaker 2: sides that the talks are productive, but they haven't produced

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Speaker 2: a deal just yet. So where do things stand this morning.

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Speaker 12: Well, they can't really lock any partial agreement and until

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Speaker 12: everything is agreed to, so they're still talking about all

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Speaker 12: the issues we've heard about. They're talking about spending cuts

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Speaker 12: and then caps on out year spending. The energy permitting

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Speaker 12: expedited measures are still under discussion. Work requirements for nutrition

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Speaker 12: aid are still under discussion, and they're probably not going

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Speaker 12: to announce that they've agreed on some portion of it

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Speaker 12: until they've got the whole thing locked in. They seem

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Speaker 12: to all understand that this needs to happen by very

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Speaker 12: early June. They're working under the assumption that June first

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Speaker 12: is the deadline, and there really hasn't been any information

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Speaker 12: that conflicts with that. It does look like the deadline

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Speaker 12: absolutely could be in early June. They want to get

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Speaker 12: this a handshake deal done as soon as possible because

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Speaker 12: McCarthy is determined to get his members seventy two hours

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Speaker 12: to review it before he asks for a vote, and then,

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Speaker 12: of course you've still got to get it through the Senate.

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Speaker 12: So they're kind of up against the wall here in

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Speaker 12: terms of timing and sticking to their own schedule of

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Speaker 12: allowing members to read something. So there's an expectation that

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Speaker 12: they're going to really push to get something out. If

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Speaker 12: not today, then absolutely as soon as possible.

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Speaker 2: Yeah, you laid out a long list of bullet points

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Speaker 2: there where there remains disagreement, and laid out very nicely.

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Speaker 2: How little time there is. Does that leave enough time

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Speaker 2: to get an agreement on all those points? Or can

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Speaker 2: they just agree on a few things and move something

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Speaker 2: forward that can at least avert a default.

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Speaker 12: Well, some things can kind of fall off the map,

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Speaker 12: and even recently there have been other proposals that kind

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Speaker 12: of quickly got taken off the table. The White House

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Speaker 12: has brought up increased revenues, closing tax loopholes, and the

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Speaker 12: Republicans have been pushing back against that, you know, but

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Speaker 12: the core of it really is a conversation about limiting spending.

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Speaker 12: Find deciding how much they want to cut from discretionary

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Speaker 12: spending in the next year, and then how low they

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Speaker 12: want to cap it in the out years. A lot

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Speaker 12: of things could fall into place if they agree on that.

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Speaker 12: It's basically that they need to agree on a budgetary framework,

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Speaker 12: and that's difficult to do to get something that McCarthy

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Speaker 12: and Biden can sell to their members and get through

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Speaker 12: the House and get sixty votes in the Senate. But

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Speaker 12: it is absolutely possible that, you know, that's just a

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Speaker 12: matter of numbers. They could agree to something very quickly

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Speaker 12: if they are both determined to make some concessions and

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Speaker 12: get this done.

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Speaker 2: Yeah, that is the question. You can have a framework,

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Speaker 2: but there remains the question of whether it can garner

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Speaker 2: enough support to pass both chambers of Congress. Do you

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Speaker 2: get a sense that there would be enough bipartisan agreement

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Speaker 2: to move a framework deal forward.

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Speaker 12: If it gets those two principal negotiators on board. That

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Speaker 12: is a very good sign. There's a lot that goes

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Speaker 12: into that. McCarthy needs something that is weighted toward Republican support.

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Speaker 12: They can rely on Democratic votes. They don't need two

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Speaker 12: hundred and eighteen Republican votes in the House, but he

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Speaker 12: needs definitely the majority of his conference, maybe something more comfortable,

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Speaker 12: maybe two thirds to support this. The Senate could get complicated.

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Speaker 12: You could put Senator Schumer, the majority leader, in a

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Speaker 12: tough position if there are more Republicans supportive of the

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Speaker 12: measure than Democrats. But it is considered a pretty safe

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Speaker 12: bet that this can get sixty votes if it's got

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Speaker 12: the House majority behind it and a Democratic president. It

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Speaker 12: really then would be more of a concern about political

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Speaker 12: leader's popularity among their own members. But if they get

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Speaker 12: these two negotiators, the president and the Speaker of the House,

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Speaker 12: on board, then it's had a very very good chance

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Speaker 12: in both chambers.

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Speaker 2: Only about thirty seconds left here, Jack, Is there any

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Speaker 2: reason to think the next round of discussions could be

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Speaker 2: any different, could get us closer to a deal.

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Speaker 12: We're basically in continuous negotiations. Even when McCarthy and Biden

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Speaker 12: aren't meeting. They've got their point people talking, and McCarthy

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Speaker 12: said he may call the President on the phone if necessary.

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Speaker 12: So it's not even rounds of negotiations. It's that we're

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Speaker 12: all sort of waiting on news of a deal at

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Speaker 12: almost any moment, probably not the early morning, but yes,

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Speaker 12: they are that close. It seems that it could come

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Speaker 12: in the next round, or even before a major meeting.

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