1
00:00:01,200 --> 00:00:04,760
Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg Daybreak

2
00:00:04,800 --> 00:00:08,200
Speaker 1: for Tuesday, May ninth. Coming up today, All eyes.

3
00:00:08,000 --> 00:00:10,200
Speaker 2: On the White House ahead of a key meeting on

4
00:00:10,280 --> 00:00:11,080
Speaker 2: the debt ceiling.

5
00:00:11,280 --> 00:00:15,600
Speaker 1: Americans lose confidence in the Federal Reserve and share Jay Powell.

6
00:00:15,480 --> 00:00:19,000
Speaker 2: Ubs reshuffles its management team, the first move since the

7
00:00:19,040 --> 00:00:20,680
Speaker 2: takeover of Credit Suisse.

8
00:00:20,680 --> 00:00:24,079
Speaker 1: And shares of Palenteer surge on strong demand for artificial

9
00:00:24,120 --> 00:00:25,120
Speaker 1: intelligence tools.

10
00:00:25,320 --> 00:00:27,520
Speaker 3: Calls continue for charges in the death of a New

11
00:00:27,600 --> 00:00:30,639
Speaker 3: York subway writer. Plus Senate Democrats won the list of

12
00:00:30,680 --> 00:00:34,000
Speaker 3: gifts from a billionaire to Justice Clarence Thomas. I'm Michael

13
00:00:34,000 --> 00:00:35,240
Speaker 3: Barr Moore Ahead, I'm.

14
00:00:35,120 --> 00:00:36,240
Speaker 2: John Stasharon's words.

15
00:00:36,240 --> 00:00:38,720
Speaker 4: The Knicks lost again in Miami, trailed the series three

16
00:00:38,760 --> 00:00:41,440
Speaker 4: to one. The Lakers beat the Warriors, The Yankees beat

17
00:00:41,479 --> 00:00:42,000
Speaker 4: the ad.

18
00:00:43,720 --> 00:00:47,159
Speaker 5: That's all straight Ahead on Bloomberg day Break, The business

19
00:00:47,159 --> 00:00:49,640
Speaker 5: news you need to start your day in just one

20
00:00:49,760 --> 00:00:54,240
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

21
00:00:54,280 --> 00:00:56,920
Speaker 5: Business Appen everywhere you get your podcasts.

22
00:01:00,000 --> 00:01:01,680
Speaker 2: Good morning, I'm Nathan Hager.

23
00:01:01,640 --> 00:01:04,840
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.

24
00:01:05,520 --> 00:01:07,840
Speaker 2: The latest on the debt ceiling. The White House and

25
00:01:07,920 --> 00:01:10,640
Speaker 2: congressional leaders meet today to work on a path toward

26
00:01:10,760 --> 00:01:13,840
Speaker 2: an agreement. Amy Morris has a preview from our Bloomberg

27
00:01:13,920 --> 00:01:15,880
Speaker 2: ninety nine to one newsroom in Washington.

28
00:01:16,200 --> 00:01:18,520
Speaker 6: The possibility of a short term fix for the debt

29
00:01:18,600 --> 00:01:22,520
Speaker 6: standoff has gained traction since Treasury Secretary Janet Yellen warned

30
00:01:22,520 --> 00:01:25,639
Speaker 6: the US maybe unable to service debt come June first.

31
00:01:25,840 --> 00:01:29,800
Speaker 6: Republican Senator Bill Cassidy of Louisiana tells Bloomberg that could work,

32
00:01:30,000 --> 00:01:31,680
Speaker 6: but it depends on the White House.

33
00:01:31,760 --> 00:01:34,080
Speaker 7: I think a short term debt ceiling increase would do

34
00:01:34,200 --> 00:01:36,119
Speaker 7: a little bit of a cooling off period. But you're

35
00:01:36,120 --> 00:01:38,600
Speaker 7: going to ask if the president is not going to engage,

36
00:01:38,920 --> 00:01:40,360
Speaker 7: what does buying short term mean.

37
00:01:40,480 --> 00:01:44,120
Speaker 6: Former Democratic Senator from Indiana Tim Romer tells Bloomberg's sound

38
00:01:44,160 --> 00:01:47,280
Speaker 6: on that a short term extension is the more likely outcome,

39
00:01:47,480 --> 00:01:49,840
Speaker 6: but there are other options to watch for.

40
00:01:49,960 --> 00:01:52,840
Speaker 8: Or you try to circumvent the process, either with the

41
00:01:52,880 --> 00:01:56,360
Speaker 8: fourteenth Amendment, or you have a discharge petition on the

42
00:01:56,400 --> 00:02:01,720
Speaker 8: House War and Democrats try to couldjol and persuade five

43
00:02:01,760 --> 00:02:05,040
Speaker 8: Republicans to get something cleaner down on the House floor.

44
00:02:05,120 --> 00:02:08,280
Speaker 6: Today's meeting starts at four at the White House in Washington.

45
00:02:08,360 --> 00:02:10,079
Speaker 6: I'm Amy Moore, is Bloomberg Daybreak?

46
00:02:10,160 --> 00:02:12,560
Speaker 1: All right, Amy, thank you. Well, a dead ceiling deal

47
00:02:12,880 --> 00:02:15,840
Speaker 1: will get done. That's a view from Bill Gross, the

48
00:02:15,880 --> 00:02:18,760
Speaker 1: former chief investment officer at PIMCO. In the meantime, he

49
00:02:18,800 --> 00:02:21,320
Speaker 1: recommends buying short term treasury bills.

50
00:02:21,520 --> 00:02:25,280
Speaker 9: I think it's ridiculous. You know, it's always resolved, and

51
00:02:25,360 --> 00:02:28,480
Speaker 9: not that it's one hundred percent chance, but I think

52
00:02:28,520 --> 00:02:31,840
Speaker 9: it gets resolved. I would suggest for those that are

53
00:02:32,560 --> 00:02:36,680
Speaker 9: less concerned, similar to myself, that they, you know, they

54
00:02:36,760 --> 00:02:41,160
Speaker 9: buy a one month two month treasury bill at i'm

55
00:02:41,320 --> 00:02:43,239
Speaker 9: much higher rate than that they get with a longer

56
00:02:43,320 --> 00:02:44,680
Speaker 9: term treasury bill.

57
00:02:45,320 --> 00:02:47,919
Speaker 1: Bill Gross made the comments in an interview with Bloomberg,

58
00:02:48,000 --> 00:02:51,720
Speaker 1: saying short dated bills have seword since Treasury Secretary Janet

59
00:02:51,760 --> 00:02:53,959
Speaker 1: Yellen war and the government could run out of cash

60
00:02:54,040 --> 00:02:54,560
Speaker 1: in June.

61
00:02:54,680 --> 00:02:56,560
Speaker 2: Well, when it comes to the dead ceiling, Karen, the

62
00:02:56,600 --> 00:02:59,680
Speaker 2: Federal Reserve is staying on the sidelines. At the same time,

63
00:02:59,720 --> 00:03:03,480
Speaker 2: were learning confidence in chair j Palell is falling. Let's

64
00:03:03,480 --> 00:03:05,280
Speaker 2: get the details from Bloomberg's John Tucker.

65
00:03:05,320 --> 00:03:08,240
Speaker 10: John, and not many people trust j. Palell to do

66
00:03:08,480 --> 00:03:11,120
Speaker 10: the right thing, Nathan. The results of a GALLA poll

67
00:03:11,160 --> 00:03:14,320
Speaker 10: out this morning show the lowest level of confidence recorded

68
00:03:14,400 --> 00:03:17,560
Speaker 10: since they began tracking public perception of the Central Bank

69
00:03:17,639 --> 00:03:20,560
Speaker 10: chief in two thousand and one. Only thirty six percent

70
00:03:20,600 --> 00:03:22,800
Speaker 10: of you as adults say they have a great deal

71
00:03:22,919 --> 00:03:25,280
Speaker 10: or a fair amount of confidence that the chairman would

72
00:03:25,280 --> 00:03:28,160
Speaker 10: do the right thing for the economy is popularity fell

73
00:03:28,160 --> 00:03:31,920
Speaker 10: as inflation rows and interest rates marched higher, and the

74
00:03:32,000 --> 00:03:35,400
Speaker 10: chance of winning any popularity contest looking slimmer. A FED

75
00:03:35,440 --> 00:03:39,360
Speaker 10: survey of lending officers shows banks reported tighter standards and

76
00:03:39,480 --> 00:03:42,520
Speaker 10: weaker demand for loans in the first quarter, increasing the

77
00:03:42,600 --> 00:03:45,040
Speaker 10: chance of her session in New York on John Tucker

78
00:03:45,080 --> 00:03:46,360
Speaker 10: Bloomberg Day Break, All.

79
00:03:46,360 --> 00:03:47,240
Speaker 11: Right, thanks John Well.

80
00:03:47,280 --> 00:03:50,560
Speaker 1: Regional banks are in focus in the Golden State today.

81
00:03:50,640 --> 00:03:54,480
Speaker 1: California says it's boosting scrutiny of lenders with over fifty

82
00:03:54,560 --> 00:03:57,640
Speaker 1: billion dollars in assets at Baxter. Has a story from

83
00:03:57,640 --> 00:04:00,200
Speaker 1: our Bloomberg nine to sixty newsroom in San francisc le Go.

84
00:04:00,520 --> 00:04:02,480
Speaker 12: This, of course, is more in the fallout from the

85
00:04:02,520 --> 00:04:05,880
Speaker 12: collapse of Silicon Valley Bank. The Department of Financial Protection

86
00:04:06,080 --> 00:04:09,280
Speaker 12: and Innovation says it plans to overhaul its processes with

87
00:04:09,400 --> 00:04:15,280
Speaker 12: more personal scrutiny of staffing policies and technology deficiencies. In

88
00:04:15,280 --> 00:04:19,360
Speaker 12: interviews with employees, there were constant complaints and criticism regarding

89
00:04:19,720 --> 00:04:24,159
Speaker 12: understaffing and lack of safety precautions. Promises had been made

90
00:04:24,200 --> 00:04:27,640
Speaker 12: to increase staffing before the collapse of SVB, but the

91
00:04:27,680 --> 00:04:30,159
Speaker 12: time frame had been set for some time in twenty

92
00:04:30,279 --> 00:04:33,600
Speaker 12: twenty three. They say it will happen now in San Francisco.

93
00:04:33,680 --> 00:04:36,600
Speaker 12: I'm at Baxter Bloomberg Daybreak thanks ed back on Wall Street.

94
00:04:36,680 --> 00:04:41,240
Speaker 2: Goldman Sachs has agreed to settle accusations that systematically underpaid women.

95
00:04:41,320 --> 00:04:43,320
Speaker 2: We get more on that from Bloomberg's Doug Prisner.

96
00:04:43,520 --> 00:04:46,320
Speaker 13: We're told Goldman struck a deal with lawyers representing about

97
00:04:46,320 --> 00:04:49,240
Speaker 13: twenty eight hundred women in a class action. They had

98
00:04:49,240 --> 00:04:52,920
Speaker 13: claimed the firm discriminated against them in pay and promotions.

99
00:04:53,120 --> 00:04:55,320
Speaker 13: We are told Goldman will pay two hundred and fifteen

100
00:04:55,320 --> 00:04:57,840
Speaker 13: million dollars to end the lawsuit. About a third of

101
00:04:57,880 --> 00:05:00,880
Speaker 13: the settlement is expected to be set aside for attorney fees.

102
00:05:01,200 --> 00:05:04,120
Speaker 13: The upcoming trial was scheduled for next month in New York.

103
00:05:04,320 --> 00:05:07,080
Speaker 13: It would have provided a rare public forum for testimony

104
00:05:07,120 --> 00:05:11,360
Speaker 13: about inequality inside the financial industry, an industry where all

105
00:05:11,400 --> 00:05:14,640
Speaker 13: but one of the six biggest US banks have only

106
00:05:14,680 --> 00:05:17,599
Speaker 13: ever been run by men. In New York, I'm Doug Prisoner,

107
00:05:17,640 --> 00:05:18,479
Speaker 13: Bloomberg Daybreak.

108
00:05:18,560 --> 00:05:21,320
Speaker 1: All right, Doug, thanks well over in Europe today, CEO

109
00:05:21,520 --> 00:05:25,920
Speaker 1: Sergio or Mati is overhauling the management team at UBS.

110
00:05:25,920 --> 00:05:29,360
Speaker 1: Tom Tuckner will replace Sarah Youngwood as chief financial officer.

111
00:05:29,680 --> 00:05:32,880
Speaker 1: It's the first staffing move since the takeover of Credits Suites.

112
00:05:33,160 --> 00:05:35,040
Speaker 1: We get more from Bloomberg's menus Cranny.

113
00:05:35,160 --> 00:05:37,479
Speaker 14: Be a veteran and what you will find is this

114
00:05:37,640 --> 00:05:40,520
Speaker 14: is what's coming through from Amati's appointment. Business about people

115
00:05:40,600 --> 00:05:43,679
Speaker 14: that he knows, people who he trusts, people who's been around.

116
00:05:43,839 --> 00:05:45,840
Speaker 14: He knows how they make decisions, you know how they

117
00:05:45,880 --> 00:05:47,680
Speaker 14: act in an integration.

118
00:05:47,520 --> 00:05:51,279
Speaker 1: And Bloomberg's menus Cranny says. UBS also appointed former Credit

119
00:05:51,279 --> 00:05:54,960
Speaker 1: Suite CEO of Rick Kerner to its top management body.

120
00:05:55,160 --> 00:05:57,560
Speaker 2: Ran here and the US here ensures of palent Here

121
00:05:57,680 --> 00:06:00,080
Speaker 2: are surging. There are more than nineteen percent of the

122
00:06:00,120 --> 00:06:02,880
Speaker 2: pre market. The company gave a strong earnings forecast and

123
00:06:02,920 --> 00:06:06,480
Speaker 2: said demand for its new artificial intelligence tool is unprecedented

124
00:06:06,720 --> 00:06:10,320
Speaker 2: volunteer works with governments and corporations with sensitive networks. It

125
00:06:10,360 --> 00:06:14,440
Speaker 2: offers services to analyze information like criminal databases, DMV records,

126
00:06:14,480 --> 00:06:16,040
Speaker 2: or phone data and more.

127
00:06:16,160 --> 00:06:18,720
Speaker 1: Changes on the way of Twitter, Nathan. The company will

128
00:06:18,760 --> 00:06:22,680
Speaker 1: soon remove accounts that have been inactive for several years.

129
00:06:23,080 --> 00:06:25,600
Speaker 1: That's the word from Elon Musk, who warns that users

130
00:06:25,600 --> 00:06:29,000
Speaker 1: could see follower accounts drop after the purge.

131
00:06:32,240 --> 00:06:33,360
Speaker 2: Time and not to take a look at some of

132
00:06:33,400 --> 00:06:35,520
Speaker 2: the other stories making news in New York and around

133
00:06:35,520 --> 00:06:37,440
Speaker 2: the world. For that were joined by Bloomberg's Michael Barr

134
00:06:37,480 --> 00:06:38,520
Speaker 2: Good Morning, Michael.

135
00:06:38,320 --> 00:06:41,240
Speaker 3: Good Morning, Nathan. Protesters in New York City once again

136
00:06:41,400 --> 00:06:44,320
Speaker 3: called for charges after the death of a New York

137
00:06:44,560 --> 00:06:48,120
Speaker 3: Subway writer with a history of mental illness. Last evening,

138
00:06:48,200 --> 00:06:52,000
Speaker 3: demonstrators and police clashed near the Broadway Lafayette Street station,

139
00:06:52,520 --> 00:06:55,800
Speaker 3: where Jordan Neely died after he was put in a chokehold,

140
00:06:56,040 --> 00:06:59,880
Speaker 3: allegedly by a marine veteran. The NYPD says almost a

141
00:07:00,120 --> 00:07:04,719
Speaker 3: dozen arrests were made in MYPD Chief Jeffrey Madre said

142
00:07:04,720 --> 00:07:08,560
Speaker 3: demonstrators were warned and that's when he says officers noticed

143
00:07:08,600 --> 00:07:11,720
Speaker 3: it could become very dangerous and as we started to

144
00:07:11,760 --> 00:07:16,960
Speaker 3: move the crowd. We found a Molotov cocktail that was

145
00:07:17,800 --> 00:07:21,440
Speaker 3: in the crowd on the ground. A grand jury is

146
00:07:21,480 --> 00:07:25,480
Speaker 3: expected to decide soon whether Marine Daniel Penny will face

147
00:07:25,560 --> 00:07:29,240
Speaker 3: criminal charges for Neely's death. The fight continues between New

148
00:07:29,360 --> 00:07:33,000
Speaker 3: York City Mayor Eric Adams and Rockland County officials over

149
00:07:33,080 --> 00:07:37,400
Speaker 3: plans to house incoming asylum seekers. Adams is sending hundreds

150
00:07:37,400 --> 00:07:41,320
Speaker 3: of adult males to a Rockland County hotel. County Executive

151
00:07:41,520 --> 00:07:45,040
Speaker 3: Ed Day claims the influx will create an undue burden

152
00:07:45,120 --> 00:07:45,680
Speaker 3: on the area.

153
00:07:46,040 --> 00:07:47,840
Speaker 15: The City of New York right now is on the

154
00:07:47,960 --> 00:07:53,960
Speaker 15: edge of making things much much worse, destroying many more lives,

155
00:07:54,480 --> 00:07:58,400
Speaker 15: hurting many more people. That is what Mayor Adams and

156
00:07:58,480 --> 00:08:00,320
Speaker 15: his plan is going to do.

157
00:08:00,760 --> 00:08:05,119
Speaker 3: County Executive Day has declared a state of emergency. Jury

158
00:08:05,160 --> 00:08:08,920
Speaker 3: deliberations are expected to begin today at former President Trump's

159
00:08:08,920 --> 00:08:12,080
Speaker 3: civil trial in New York. It stems from the alleged

160
00:08:12,160 --> 00:08:15,040
Speaker 3: rape of writer e Jen Carroll in the nineteen nineties.

161
00:08:15,280 --> 00:08:19,000
Speaker 3: Trump denies that had happened. Democratic members of the Senate

162
00:08:19,080 --> 00:08:23,360
Speaker 3: Judiciary Committee have asked billionaire Republican donor Harland Crowe to

163
00:08:23,440 --> 00:08:26,160
Speaker 3: lay out in detail any gifts or payments made to

164
00:08:26,240 --> 00:08:29,560
Speaker 3: Supreme Court Justice Clarence Thomas and his family. As a

165
00:08:29,600 --> 00:08:36,480
Speaker 3: battle over the High Court's ethics intensifies. In Russia, President

166
00:08:36,559 --> 00:08:40,520
Speaker 3: Vladimir Putin addressed his country's Victory Day parade on Moscow's

167
00:08:40,559 --> 00:08:43,920
Speaker 3: Red Square today. Putin claims that a real war has

168
00:08:43,920 --> 00:08:48,080
Speaker 3: been unleashed against Russia, a reference to the war in Ukraine. Earlier,

169
00:08:48,160 --> 00:08:52,080
Speaker 3: Russia unleashed a barrage of cruise missiles on Ukraine. Ukraine's

170
00:08:52,120 --> 00:08:55,320
Speaker 3: Air force said it had successfully destroyed twenty three of

171
00:08:55,360 --> 00:08:58,360
Speaker 3: twenty five of them. Global News twenty four hours a day,

172
00:08:58,480 --> 00:09:00,959
Speaker 3: powered by more than twenty seven one hundred journalists and

173
00:09:00,960 --> 00:09:04,199
Speaker 3: analysts in over one hundred and twenty countries. Michael Barr,

174
00:09:04,280 --> 00:09:05,679
Speaker 3: This is Bloomberg NAT.

175
00:09:05,880 --> 00:09:13,079
Speaker 2: Thank you, Michael. Time now for our Bloomberg Sports Update.

176
00:09:13,120 --> 00:09:14,560
Speaker 2: Good morning, John stan Scheller, Good.

177
00:09:14,440 --> 00:09:16,880
Speaker 4: Morning eighth in. The Knicks just play two games in Miami.

178
00:09:16,960 --> 00:09:20,320
Speaker 4: Ninety six minutes and they trailed for ninety five minutes

179
00:09:20,400 --> 00:09:23,640
Speaker 4: and twenty seven seconds, never led. Game three held two

180
00:09:23,840 --> 00:09:26,640
Speaker 4: very brief one point leads in the first quarter last night.

181
00:09:26,640 --> 00:09:29,160
Speaker 4: At one point, they did cut the Heat's lead down

182
00:09:29,160 --> 00:09:29,520
Speaker 4: to three.

183
00:09:29,520 --> 00:09:30,520
Speaker 2: It never got closer in.

184
00:09:30,520 --> 00:09:32,800
Speaker 4: Miami won one oh nine, one oh one and the

185
00:09:32,840 --> 00:09:35,240
Speaker 4: Heat and now lead the series three to one. Nicks

186
00:09:35,280 --> 00:09:38,600
Speaker 4: beating at their own game. Normally they have the rebounding advantage.

187
00:09:38,679 --> 00:09:42,320
Speaker 4: Miami out rebounded them by nine. They grabbed thirteen on

188
00:09:42,360 --> 00:09:45,120
Speaker 4: the offensive end. Julius Randall was asked about it.

189
00:09:45,200 --> 00:09:51,240
Speaker 3: They wanted more Honda. You know, I spend who we

190
00:09:51,280 --> 00:09:54,319
Speaker 3: are all year and we got to find a way to,

191
00:09:54,840 --> 00:09:57,040
Speaker 3: you know, step up and make those plays who want

192
00:09:57,080 --> 00:09:58,080
Speaker 3: to keep the season.

193
00:09:58,120 --> 00:09:59,360
Speaker 11: The lost five at the Garden.

194
00:09:59,440 --> 00:10:03,160
Speaker 4: Tomorrow with the Knicks facing elimination, the Lakers trailed Golden

195
00:10:03,160 --> 00:10:05,160
Speaker 4: State of the fourth quarter rally to win by three

196
00:10:05,200 --> 00:10:07,120
Speaker 4: in La, up three to one on the Warriors. The

197
00:10:07,160 --> 00:10:09,360
Speaker 4: other two series are tied at two, with Game five

198
00:10:09,520 --> 00:10:14,120
Speaker 4: tonight Celtics and sixers in Boston Phoenix. In Denver, Nuggets

199
00:10:14,120 --> 00:10:17,959
Speaker 4: staring Nikola Jokins not suspended. He was fined twenty five

200
00:10:18,080 --> 00:10:20,920
Speaker 4: thousand dollars for that incident with what it first appeared

201
00:10:20,960 --> 00:10:22,920
Speaker 4: to be just a Sun's fan was actually the owner

202
00:10:23,040 --> 00:10:26,079
Speaker 4: of the team. Stanley Cup Playoffs, Vegas won five to

203
00:10:26,160 --> 00:10:28,800
Speaker 4: one in Edmonton to go up to one in the series.

204
00:10:28,800 --> 00:10:32,000
Speaker 4: The Devils host Carolina Tonight home teams have won the

205
00:10:32,000 --> 00:10:34,120
Speaker 4: first three games. The Kams are up to one. Yankees

206
00:10:34,160 --> 00:10:37,280
Speaker 4: hit four home runs, even Aaron Hicks hit one. They

207
00:10:37,320 --> 00:10:39,200
Speaker 4: beat Oakland seven to two at the stadium, and Aaron

208
00:10:39,280 --> 00:10:42,080
Speaker 4: judge he'll be back in the lineup tonight. Mets losers

209
00:10:42,080 --> 00:10:44,079
Speaker 4: of eleven to last fourteen look to get back to five.

210
00:10:44,120 --> 00:10:46,680
Speaker 4: Bunch of Night in Cincinnati. The Max Scherzer on the Mount.

211
00:10:46,720 --> 00:10:49,320
Speaker 4: He hasn't won a game in a month. John Stash

212
00:10:49,400 --> 00:10:50,520
Speaker 4: Edward Bloomberg.

213
00:10:50,120 --> 00:10:55,880
Speaker 5: Sports Live from coast to coast, from New York to

214
00:10:55,920 --> 00:10:59,960
Speaker 5: San Francisco, Boston to Washington, d C. Nationwide on Syria

215
00:11:00,200 --> 00:11:03,439
Speaker 5: is exam the Bloomberg Business Appen Bloomberg dot Com.

216
00:11:03,600 --> 00:11:08,240
Speaker 2: This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. The

217
00:11:08,280 --> 00:11:11,320
Speaker 2: political lines have been drawn ahead of today's high stakes

218
00:11:11,320 --> 00:11:14,600
Speaker 2: meeting on the debt ceiling between President Biden and congressional leaders.

219
00:11:14,679 --> 00:11:16,840
Speaker 2: White House Press Secretary Karine Jean Pierre.

220
00:11:17,320 --> 00:11:21,480
Speaker 13: We should not have House Republicans manufacturing a crisis on

221
00:11:21,640 --> 00:11:24,320
Speaker 13: something that has been done seventy eight times since.

222
00:11:24,160 --> 00:11:27,000
Speaker 2: Nineteen sixty Republican Senator Bill Cassidy.

223
00:11:27,520 --> 00:11:30,800
Speaker 7: The President needs to show leadership, not just say I

224
00:11:30,840 --> 00:11:32,839
Speaker 7: want it exactly the way I want it, and I

225
00:11:32,880 --> 00:11:34,080
Speaker 7: will talk to you otherwise.

226
00:11:34,480 --> 00:11:36,880
Speaker 2: Senator Cassidy spoke with Bloomberg ahead of this meeting that

227
00:11:36,960 --> 00:11:40,080
Speaker 2: is set to get underway after the closing bell. Ahead

228
00:11:40,120 --> 00:11:42,440
Speaker 2: of it. We are joined now by John Rain's director

229
00:11:42,440 --> 00:11:45,040
Speaker 2: with the Global Insights and Analysis team at S and

230
00:11:45,120 --> 00:11:47,560
Speaker 2: P Global. John, it's great to speak with you again.

231
00:11:47,600 --> 00:11:50,160
Speaker 2: I did find it interesting that they did schedule this

232
00:11:50,280 --> 00:11:53,120
Speaker 2: meeting after trading ends on Wall Street today. I wonder

233
00:11:53,120 --> 00:11:55,960
Speaker 2: if they're trying to minimize whatever market impact could come

234
00:11:56,040 --> 00:11:57,199
Speaker 2: out of what's discussed.

235
00:11:58,160 --> 00:12:00,000
Speaker 16: I think you raise a good point there, which is

236
00:12:00,160 --> 00:12:01,719
Speaker 16: that I think they do want to kind of push

237
00:12:01,800 --> 00:12:04,240
Speaker 16: this later in the day, potentially even after the media

238
00:12:04,280 --> 00:12:07,880
Speaker 16: cycle and the nightly news broadcast are out there. I mean,

239
00:12:07,920 --> 00:12:11,360
Speaker 16: obviously we're not expecting huge developments today. This is almost

240
00:12:11,400 --> 00:12:14,640
Speaker 16: a meet and greet atmospheric meeting, and really the big

241
00:12:14,640 --> 00:12:16,360
Speaker 16: news out of today is are they going to meet again?

242
00:12:16,480 --> 00:12:19,000
Speaker 2: And if they are, when can this really be a

243
00:12:19,040 --> 00:12:22,720
Speaker 2: meet and greet? Though, when we are hearing from Treasury

244
00:12:22,760 --> 00:12:25,599
Speaker 2: Secretary Janet Yellen that that's so called X state for

245
00:12:25,800 --> 00:12:29,200
Speaker 2: potential default could come in just about three weeks, just

246
00:12:29,240 --> 00:12:30,959
Speaker 2: a little bit more than three weeks time.

247
00:12:31,840 --> 00:12:34,920
Speaker 16: Right, So, I mean, like obviously, although this particular meeting

248
00:12:35,000 --> 00:12:37,679
Speaker 16: might not necessarily lead to some type of rapid advancement

249
00:12:37,720 --> 00:12:39,679
Speaker 16: in the negotiations, they're going to have to get there,

250
00:12:39,679 --> 00:12:41,840
Speaker 16: and they're going to have to get there quick. I mean,

251
00:12:41,840 --> 00:12:45,560
Speaker 16: there's only six more legislative days before the end of

252
00:12:45,559 --> 00:12:47,280
Speaker 16: the month where we're going to have both, you know,

253
00:12:47,400 --> 00:12:50,080
Speaker 16: a House and the Senate in session and Pride and

254
00:12:50,200 --> 00:12:51,000
Speaker 16: inside DC.

255
00:12:51,240 --> 00:12:54,160
Speaker 11: So they're going to have to start moving in the direction.

256
00:12:53,880 --> 00:12:56,600
Speaker 16: Of either some type of negotiated solution or what we're

257
00:12:56,720 --> 00:12:59,880
Speaker 16: beginning to hears you elaborated earlier is the possibility of

258
00:13:00,320 --> 00:13:02,760
Speaker 16: type of short extension, whether it's one to two weeks,

259
00:13:02,840 --> 00:13:06,440
Speaker 16: or whether we're looking at conjoining these negotiations with the

260
00:13:06,480 --> 00:13:08,719
Speaker 16: government funding, which of course will end out at the

261
00:13:08,800 --> 00:13:09,520
Speaker 16: end of September.

262
00:13:09,800 --> 00:13:13,760
Speaker 2: And that's what the President has insisted that he does

263
00:13:13,800 --> 00:13:16,559
Speaker 2: not want to do. He does not want to tie

264
00:13:16,600 --> 00:13:20,440
Speaker 2: this to government spending. Are you seeing any signs that

265
00:13:20,480 --> 00:13:22,280
Speaker 2: he's willing to bend on that point?

266
00:13:23,440 --> 00:13:26,280
Speaker 16: I think even announcing the dates that the idea that

267
00:13:26,320 --> 00:13:29,360
Speaker 16: he's willing to negotiate on government funding We've heard hints

268
00:13:29,360 --> 00:13:31,920
Speaker 16: from various members of the administration that they think a

269
00:13:31,920 --> 00:13:35,480
Speaker 16: short term extension would be possible, the White House would

270
00:13:35,480 --> 00:13:38,400
Speaker 16: be amenable to that are signs that they're willing to

271
00:13:38,480 --> 00:13:39,240
Speaker 16: kind of link this up.

272
00:13:39,280 --> 00:13:41,199
Speaker 11: We've seen this in the past and debt sealing.

273
00:13:40,920 --> 00:13:44,160
Speaker 16: Crisis as before, So therefore, I wouldn't be surprised that

274
00:13:44,200 --> 00:13:46,320
Speaker 16: this is something behind the scenes that there are already

275
00:13:46,520 --> 00:13:50,120
Speaker 16: somewhat pushing, with almost the House understanding that maybe a

276
00:13:50,160 --> 00:13:52,080
Speaker 16: debt you know, some type of resolution here, it's going

277
00:13:52,120 --> 00:13:53,400
Speaker 16: to take longer than three weeks.

278
00:13:53,640 --> 00:13:58,000
Speaker 2: We've also heard Republicans insisting that the President needs to speak,

279
00:13:58,240 --> 00:14:01,920
Speaker 2: particularly with the House Speaker Kevin McCarthy on this, and

280
00:14:01,960 --> 00:14:05,240
Speaker 2: even a Senator McConnell, who was involved in the negotiations

281
00:14:05,280 --> 00:14:07,600
Speaker 2: more than a decade ago, is saying that he doesn't

282
00:14:07,600 --> 00:14:10,600
Speaker 2: have some kind of secret deal to get something done.

283
00:14:10,640 --> 00:14:13,480
Speaker 2: He's insisting that he's going to stay on the sidelines.

284
00:14:13,559 --> 00:14:16,920
Speaker 2: Why is that important that it's going to be President

285
00:14:16,920 --> 00:14:21,200
Speaker 2: Biden and Speaker McCarthy and potentially no one else really

286
00:14:21,240 --> 00:14:24,280
Speaker 2: being involved in the highest level discussions here.

287
00:14:25,080 --> 00:14:25,680
Speaker 11: Well, we don't.

288
00:14:25,760 --> 00:14:28,720
Speaker 16: I mean obviously that those are the atmospherics that we're

289
00:14:28,760 --> 00:14:30,560
Speaker 16: going to be seen later on today and that's what

290
00:14:30,560 --> 00:14:32,440
Speaker 16: we're going to be seeing in this first week or so.

291
00:14:32,480 --> 00:14:35,240
Speaker 16: But behind the scenes, we're going to see moderates within

292
00:14:35,360 --> 00:14:37,520
Speaker 16: both parties kind of trying to hash out a deal.

293
00:14:37,640 --> 00:14:40,720
Speaker 16: So it's important, i think in some respects because McConnell

294
00:14:40,800 --> 00:14:43,240
Speaker 16: was so instrumental in getting deals in the past. So

295
00:14:43,280 --> 00:14:45,680
Speaker 16: if he sits on the back bench this year and

296
00:14:45,680 --> 00:14:49,120
Speaker 16: then it's really just McCarthy and Biden McCarthy.

297
00:14:48,640 --> 00:14:51,360
Speaker 11: And somewhat to somewhat dependent.

298
00:14:50,920 --> 00:14:53,520
Speaker 16: On those conservative Republicans and sot there any deal that

299
00:14:53,600 --> 00:14:55,920
Speaker 16: he ends up making is maybe going to cost him

300
00:14:55,960 --> 00:14:57,160
Speaker 16: boats within his caucus to.

301
00:14:57,200 --> 00:14:58,120
Speaker 11: Keep his speakership.

302
00:14:58,440 --> 00:15:00,960
Speaker 16: So therefore, despite the the fact that we're likely to

303
00:15:00,960 --> 00:15:03,480
Speaker 16: see these guys coming out of this press conference saying, hey, listen,

304
00:15:03,560 --> 00:15:05,040
Speaker 16: we have a new date, we're looking forward.

305
00:15:05,040 --> 00:15:06,960
Speaker 11: Things are moving, you know, in a positive direction.

306
00:15:07,320 --> 00:15:09,000
Speaker 16: At the end of the day, it's going to be

307
00:15:09,040 --> 00:15:10,960
Speaker 16: moderates within both parties that are actually going to be

308
00:15:10,960 --> 00:15:13,000
Speaker 16: able to push a deal across the finish line.

309
00:15:13,240 --> 00:15:17,240
Speaker 2: Is there enough support for a moderate deal in Congress

310
00:15:17,360 --> 00:15:22,040
Speaker 2: when you have a lot of very conservative Republicans that

311
00:15:22,440 --> 00:15:27,120
Speaker 2: Speaker McCarthy Hinges onto maintain his speakership. We got about

312
00:15:27,120 --> 00:15:27,880
Speaker 2: a minute left here.

313
00:15:28,560 --> 00:15:30,800
Speaker 16: Sure, yeah, I think in all honesty, it will be

314
00:15:30,880 --> 00:15:33,360
Speaker 16: difficult if the White House doesn't budget at all. In

315
00:15:33,400 --> 00:15:36,680
Speaker 16: House Republicans don't budget all, it doesn't really matter. I mean,

316
00:15:36,720 --> 00:15:39,480
Speaker 16: I think both parties necessarily will not necessarily vote that

317
00:15:39,560 --> 00:15:41,760
Speaker 16: thing again across the finish line.

318
00:15:41,800 --> 00:15:42,360
Speaker 11: But at some.

319
00:15:42,400 --> 00:15:44,600
Speaker 16: Point, you know, just as we get sooner and sooner

320
00:15:44,640 --> 00:15:47,560
Speaker 16: and we really understand the limits that the US is facing,

321
00:15:47,960 --> 00:15:50,080
Speaker 16: I think the moderates take the forefront end end of

322
00:15:50,160 --> 00:15:51,200
Speaker 16: actually creating a deal.

323
00:15:51,920 --> 00:15:53,760
Speaker 11: For no other reason, they're gonna have to.

324
00:15:55,320 --> 00:15:58,240
Speaker 2: This is Bloomberg day Break Today, your morning brief on

325
00:15:58,280 --> 00:16:01,920
Speaker 2: the stories making news from Walls Street to Washington and beyond.

326
00:16:02,120 --> 00:16:04,880
Speaker 1: Look for us on your podcast feed at six am

327
00:16:04,960 --> 00:16:08,600
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you

328
00:16:08,680 --> 00:16:09,800
Speaker 1: get your podcasts.

329
00:16:09,960 --> 00:16:12,680
Speaker 2: You can also listen live each morning starting at five

330
00:16:12,720 --> 00:16:15,280
Speaker 2: am Wall Street time on Bloomberg eleven three to zero

331
00:16:15,360 --> 00:16:18,240
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,

332
00:16:18,320 --> 00:16:21,200
Speaker 2: Bloomberg one oh six to one in Boston, and Bloomberg

333
00:16:21,240 --> 00:16:22,080
Speaker 2: ninety sixty in.

334
00:16:22,120 --> 00:16:26,119
Speaker 1: San Francisco, our flagship New York station, is also available

335
00:16:26,160 --> 00:16:30,479
Speaker 1: on your Amazon Alexa devices. Just say Alexa Play Bloomberg

336
00:16:30,520 --> 00:16:31,840
Speaker 1: eleven thirty plus.

337
00:16:32,000 --> 00:16:34,960
Speaker 2: Listen coast to coast on the Bloomberg Business app, serious

338
00:16:35,160 --> 00:16:39,080
Speaker 2: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

339
00:16:39,200 --> 00:16:41,080
Speaker 2: dot Com. I'm Nathan Hager and.

340
00:16:41,000 --> 00:16:44,320
Speaker 1: I'm Karen Moscow. Join us again tomorrow morning for all

341
00:16:44,360 --> 00:16:46,880
Speaker 1: the news you need to start your day right here

342
00:16:47,000 --> 00:17:03,280
Speaker 1: on Bloomberg Daybreak.

343
00:17:00,200 --> 00:17:00,240
Speaker 9: He