Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg Daybreak
Speaker 1: for Tuesday, May ninth. Coming up today, All eyes.
Speaker 2: On the White House ahead of a key meeting on
Speaker 2: the debt ceiling.
Speaker 1: Americans lose confidence in the Federal Reserve and share Jay Powell.
Speaker 2: Ubs reshuffles its management team, the first move since the
Speaker 2: takeover of Credit Suisse.
Speaker 1: And shares of Palenteer surge on strong demand for artificial
Speaker 1: intelligence tools.
Speaker 3: Calls continue for charges in the death of a New
Speaker 3: York subway writer. Plus Senate Democrats won the list of
Speaker 3: gifts from a billionaire to Justice Clarence Thomas. I'm Michael
Speaker 3: Barr Moore Ahead, I'm.
Speaker 2: John Stasharon's words.
Speaker 4: The Knicks lost again in Miami, trailed the series three
Speaker 4: to one. The Lakers beat the Warriors, The Yankees beat
Speaker 4: the ad.
Speaker 5: That's all straight Ahead on Bloomberg day Break, The business
Speaker 5: news you need to start your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 5: Business Appen everywhere you get your podcasts.
Speaker 2: Good morning, I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 2: The latest on the debt ceiling. The White House and
Speaker 2: congressional leaders meet today to work on a path toward
Speaker 2: an agreement. Amy Morris has a preview from our Bloomberg
Speaker 2: ninety nine to one newsroom in Washington.
Speaker 6: The possibility of a short term fix for the debt
Speaker 6: standoff has gained traction since Treasury Secretary Janet Yellen warned
Speaker 6: the US maybe unable to service debt come June first.
Speaker 6: Republican Senator Bill Cassidy of Louisiana tells Bloomberg that could work,
Speaker 6: but it depends on the White House.
Speaker 7: I think a short term debt ceiling increase would do
Speaker 7: a little bit of a cooling off period. But you're
Speaker 7: going to ask if the president is not going to engage,
Speaker 7: what does buying short term mean.
Speaker 6: Former Democratic Senator from Indiana Tim Romer tells Bloomberg's sound
Speaker 6: on that a short term extension is the more likely outcome,
Speaker 6: but there are other options to watch for.
Speaker 8: Or you try to circumvent the process, either with the
Speaker 8: fourteenth Amendment, or you have a discharge petition on the
Speaker 8: House War and Democrats try to couldjol and persuade five
Speaker 8: Republicans to get something cleaner down on the House floor.
Speaker 6: Today's meeting starts at four at the White House in Washington.
Speaker 6: I'm Amy Moore, is Bloomberg Daybreak?
Speaker 1: All right, Amy, thank you. Well, a dead ceiling deal
Speaker 1: will get done. That's a view from Bill Gross, the
Speaker 1: former chief investment officer at PIMCO. In the meantime, he
Speaker 1: recommends buying short term treasury bills.
Speaker 9: I think it's ridiculous. You know, it's always resolved, and
Speaker 9: not that it's one hundred percent chance, but I think
Speaker 9: it gets resolved. I would suggest for those that are
Speaker 9: less concerned, similar to myself, that they, you know, they
Speaker 9: buy a one month two month treasury bill at i'm
Speaker 9: much higher rate than that they get with a longer
Speaker 9: term treasury bill.
Speaker 1: Bill Gross made the comments in an interview with Bloomberg,
Speaker 1: saying short dated bills have seword since Treasury Secretary Janet
Speaker 1: Yellen war and the government could run out of cash
Speaker 1: in June.
Speaker 2: Well, when it comes to the dead ceiling, Karen, the
Speaker 2: Federal Reserve is staying on the sidelines. At the same time,
Speaker 2: were learning confidence in chair j Palell is falling. Let's
Speaker 2: get the details from Bloomberg's John Tucker.
Speaker 10: John, and not many people trust j. Palell to do
Speaker 10: the right thing, Nathan. The results of a GALLA poll
Speaker 10: out this morning show the lowest level of confidence recorded
Speaker 10: since they began tracking public perception of the Central Bank
Speaker 10: chief in two thousand and one. Only thirty six percent
Speaker 10: of you as adults say they have a great deal
Speaker 10: or a fair amount of confidence that the chairman would
Speaker 10: do the right thing for the economy is popularity fell
Speaker 10: as inflation rows and interest rates marched higher, and the
Speaker 10: chance of winning any popularity contest looking slimmer. A FED
Speaker 10: survey of lending officers shows banks reported tighter standards and
Speaker 10: weaker demand for loans in the first quarter, increasing the
Speaker 10: chance of her session in New York on John Tucker
Speaker 10: Bloomberg Day Break, All.
Speaker 11: Right, thanks John Well.
Speaker 1: Regional banks are in focus in the Golden State today.
Speaker 1: California says it's boosting scrutiny of lenders with over fifty
Speaker 1: billion dollars in assets at Baxter. Has a story from
Speaker 1: our Bloomberg nine to sixty newsroom in San francisc le Go.
Speaker 12: This, of course, is more in the fallout from the
Speaker 12: collapse of Silicon Valley Bank. The Department of Financial Protection
Speaker 12: and Innovation says it plans to overhaul its processes with
Speaker 12: more personal scrutiny of staffing policies and technology deficiencies. In
Speaker 12: interviews with employees, there were constant complaints and criticism regarding
Speaker 12: understaffing and lack of safety precautions. Promises had been made
Speaker 12: to increase staffing before the collapse of SVB, but the
Speaker 12: time frame had been set for some time in twenty
Speaker 12: twenty three. They say it will happen now in San Francisco.
Speaker 12: I'm at Baxter Bloomberg Daybreak thanks ed back on Wall Street.
Speaker 2: Goldman Sachs has agreed to settle accusations that systematically underpaid women.
Speaker 2: We get more on that from Bloomberg's Doug Prisner.
Speaker 13: We're told Goldman struck a deal with lawyers representing about
Speaker 13: twenty eight hundred women in a class action. They had
Speaker 13: claimed the firm discriminated against them in pay and promotions.
Speaker 13: We are told Goldman will pay two hundred and fifteen
Speaker 13: million dollars to end the lawsuit. About a third of
Speaker 13: the settlement is expected to be set aside for attorney fees.
Speaker 13: The upcoming trial was scheduled for next month in New York.
Speaker 13: It would have provided a rare public forum for testimony
Speaker 13: about inequality inside the financial industry, an industry where all
Speaker 13: but one of the six biggest US banks have only
Speaker 13: ever been run by men. In New York, I'm Doug Prisoner,
Speaker 13: Bloomberg Daybreak.
Speaker 1: All right, Doug, thanks well over in Europe today, CEO
Speaker 1: Sergio or Mati is overhauling the management team at UBS.
Speaker 1: Tom Tuckner will replace Sarah Youngwood as chief financial officer.
Speaker 1: It's the first staffing move since the takeover of Credits Suites.
Speaker 1: We get more from Bloomberg's menus Cranny.
Speaker 14: Be a veteran and what you will find is this
Speaker 14: is what's coming through from Amati's appointment. Business about people
Speaker 14: that he knows, people who he trusts, people who's been around.
Speaker 14: He knows how they make decisions, you know how they
Speaker 14: act in an integration.
Speaker 1: And Bloomberg's menus Cranny says. UBS also appointed former Credit
Speaker 1: Suite CEO of Rick Kerner to its top management body.
Speaker 2: Ran here and the US here ensures of palent Here
Speaker 2: are surging. There are more than nineteen percent of the
Speaker 2: pre market. The company gave a strong earnings forecast and
Speaker 2: said demand for its new artificial intelligence tool is unprecedented
Speaker 2: volunteer works with governments and corporations with sensitive networks. It
Speaker 2: offers services to analyze information like criminal databases, DMV records,
Speaker 2: or phone data and more.
Speaker 1: Changes on the way of Twitter, Nathan. The company will
Speaker 1: soon remove accounts that have been inactive for several years.
Speaker 1: That's the word from Elon Musk, who warns that users
Speaker 1: could see follower accounts drop after the purge.
Speaker 2: Time and not to take a look at some of
Speaker 2: the other stories making news in New York and around
Speaker 2: the world. For that were joined by Bloomberg's Michael Barr
Speaker 2: Good Morning, Michael.
Speaker 3: Good Morning, Nathan. Protesters in New York City once again
Speaker 3: called for charges after the death of a New York
Speaker 3: Subway writer with a history of mental illness. Last evening,
Speaker 3: demonstrators and police clashed near the Broadway Lafayette Street station,
Speaker 3: where Jordan Neely died after he was put in a chokehold,
Speaker 3: allegedly by a marine veteran. The NYPD says almost a
Speaker 3: dozen arrests were made in MYPD Chief Jeffrey Madre said
Speaker 3: demonstrators were warned and that's when he says officers noticed
Speaker 3: it could become very dangerous and as we started to
Speaker 3: move the crowd. We found a Molotov cocktail that was
Speaker 3: in the crowd on the ground. A grand jury is
Speaker 3: expected to decide soon whether Marine Daniel Penny will face
Speaker 3: criminal charges for Neely's death. The fight continues between New
Speaker 3: York City Mayor Eric Adams and Rockland County officials over
Speaker 3: plans to house incoming asylum seekers. Adams is sending hundreds
Speaker 3: of adult males to a Rockland County hotel. County Executive
Speaker 3: Ed Day claims the influx will create an undue burden
Speaker 3: on the area.
Speaker 15: The City of New York right now is on the
Speaker 15: edge of making things much much worse, destroying many more lives,
Speaker 15: hurting many more people. That is what Mayor Adams and
Speaker 15: his plan is going to do.
Speaker 3: County Executive Day has declared a state of emergency. Jury
Speaker 3: deliberations are expected to begin today at former President Trump's
Speaker 3: civil trial in New York. It stems from the alleged
Speaker 3: rape of writer e Jen Carroll in the nineteen nineties.
Speaker 3: Trump denies that had happened. Democratic members of the Senate
Speaker 3: Judiciary Committee have asked billionaire Republican donor Harland Crowe to
Speaker 3: lay out in detail any gifts or payments made to
Speaker 3: Supreme Court Justice Clarence Thomas and his family. As a
Speaker 3: battle over the High Court's ethics intensifies. In Russia, President
Speaker 3: Vladimir Putin addressed his country's Victory Day parade on Moscow's
Speaker 3: Red Square today. Putin claims that a real war has
Speaker 3: been unleashed against Russia, a reference to the war in Ukraine. Earlier,
Speaker 3: Russia unleashed a barrage of cruise missiles on Ukraine. Ukraine's
Speaker 3: Air force said it had successfully destroyed twenty three of
Speaker 3: twenty five of them. Global News twenty four hours a day,
Speaker 3: powered by more than twenty seven one hundred journalists and
Speaker 3: analysts in over one hundred and twenty countries. Michael Barr,
Speaker 3: This is Bloomberg NAT.
Speaker 2: Thank you, Michael. Time now for our Bloomberg Sports Update.
Speaker 2: Good morning, John stan Scheller, Good.
Speaker 4: Morning eighth in. The Knicks just play two games in Miami.
Speaker 4: Ninety six minutes and they trailed for ninety five minutes
Speaker 4: and twenty seven seconds, never led. Game three held two
Speaker 4: very brief one point leads in the first quarter last night.
Speaker 4: At one point, they did cut the Heat's lead down
Speaker 4: to three.
Speaker 2: It never got closer in.
Speaker 4: Miami won one oh nine, one oh one and the
Speaker 4: Heat and now lead the series three to one. Nicks
Speaker 4: beating at their own game. Normally they have the rebounding advantage.
Speaker 4: Miami out rebounded them by nine. They grabbed thirteen on
Speaker 4: the offensive end. Julius Randall was asked about it.
Speaker 3: They wanted more Honda. You know, I spend who we
Speaker 3: are all year and we got to find a way to,
Speaker 3: you know, step up and make those plays who want
Speaker 3: to keep the season.
Speaker 11: The lost five at the Garden.
Speaker 4: Tomorrow with the Knicks facing elimination, the Lakers trailed Golden
Speaker 4: State of the fourth quarter rally to win by three
Speaker 4: in La, up three to one on the Warriors. The
Speaker 4: other two series are tied at two, with Game five
Speaker 4: tonight Celtics and sixers in Boston Phoenix. In Denver, Nuggets
Speaker 4: staring Nikola Jokins not suspended. He was fined twenty five
Speaker 4: thousand dollars for that incident with what it first appeared
Speaker 4: to be just a Sun's fan was actually the owner
Speaker 4: of the team. Stanley Cup Playoffs, Vegas won five to
Speaker 4: one in Edmonton to go up to one in the series.
Speaker 4: The Devils host Carolina Tonight home teams have won the
Speaker 4: first three games. The Kams are up to one. Yankees
Speaker 4: hit four home runs, even Aaron Hicks hit one. They
Speaker 4: beat Oakland seven to two at the stadium, and Aaron
Speaker 4: judge he'll be back in the lineup tonight. Mets losers
Speaker 4: of eleven to last fourteen look to get back to five.
Speaker 4: Bunch of Night in Cincinnati. The Max Scherzer on the Mount.
Speaker 4: He hasn't won a game in a month. John Stash
Speaker 4: Edward Bloomberg.
Speaker 5: Sports Live from coast to coast, from New York to
Speaker 5: San Francisco, Boston to Washington, d C. Nationwide on Syria
Speaker 5: is exam the Bloomberg Business Appen Bloomberg dot Com.
Speaker 2: This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. The
Speaker 2: political lines have been drawn ahead of today's high stakes
Speaker 2: meeting on the debt ceiling between President Biden and congressional leaders.
Speaker 2: White House Press Secretary Karine Jean Pierre.
Speaker 13: We should not have House Republicans manufacturing a crisis on
Speaker 13: something that has been done seventy eight times since.
Speaker 2: Nineteen sixty Republican Senator Bill Cassidy.
Speaker 7: The President needs to show leadership, not just say I
Speaker 7: want it exactly the way I want it, and I
Speaker 7: will talk to you otherwise.
Speaker 2: Senator Cassidy spoke with Bloomberg ahead of this meeting that
Speaker 2: is set to get underway after the closing bell. Ahead
Speaker 2: of it. We are joined now by John Rain's director
Speaker 2: with the Global Insights and Analysis team at S and
Speaker 2: P Global. John, it's great to speak with you again.
Speaker 2: I did find it interesting that they did schedule this
Speaker 2: meeting after trading ends on Wall Street today. I wonder
Speaker 2: if they're trying to minimize whatever market impact could come
Speaker 2: out of what's discussed.
Speaker 16: I think you raise a good point there, which is
Speaker 16: that I think they do want to kind of push
Speaker 16: this later in the day, potentially even after the media
Speaker 16: cycle and the nightly news broadcast are out there. I mean,
Speaker 16: obviously we're not expecting huge developments today. This is almost
Speaker 16: a meet and greet atmospheric meeting, and really the big
Speaker 16: news out of today is are they going to meet again?
Speaker 2: And if they are, when can this really be a
Speaker 2: meet and greet? Though, when we are hearing from Treasury
Speaker 2: Secretary Janet Yellen that that's so called X state for
Speaker 2: potential default could come in just about three weeks, just
Speaker 2: a little bit more than three weeks time.
Speaker 16: Right, So, I mean, like obviously, although this particular meeting
Speaker 16: might not necessarily lead to some type of rapid advancement
Speaker 16: in the negotiations, they're going to have to get there,
Speaker 16: and they're going to have to get there quick. I mean,
Speaker 16: there's only six more legislative days before the end of
Speaker 16: the month where we're going to have both, you know,
Speaker 16: a House and the Senate in session and Pride and
Speaker 16: inside DC.
Speaker 11: So they're going to have to start moving in the direction.
Speaker 16: Of either some type of negotiated solution or what we're
Speaker 16: beginning to hears you elaborated earlier is the possibility of
Speaker 16: type of short extension, whether it's one to two weeks,
Speaker 16: or whether we're looking at conjoining these negotiations with the
Speaker 16: government funding, which of course will end out at the
Speaker 16: end of September.
Speaker 2: And that's what the President has insisted that he does
Speaker 2: not want to do. He does not want to tie
Speaker 2: this to government spending. Are you seeing any signs that
Speaker 2: he's willing to bend on that point?
Speaker 16: I think even announcing the dates that the idea that
Speaker 16: he's willing to negotiate on government funding We've heard hints
Speaker 16: from various members of the administration that they think a
Speaker 16: short term extension would be possible, the White House would
Speaker 16: be amenable to that are signs that they're willing to
Speaker 16: kind of link this up.
Speaker 11: We've seen this in the past and debt sealing.
Speaker 16: Crisis as before, So therefore, I wouldn't be surprised that
Speaker 16: this is something behind the scenes that there are already
Speaker 16: somewhat pushing, with almost the House understanding that maybe a
Speaker 16: debt you know, some type of resolution here, it's going
Speaker 16: to take longer than three weeks.
Speaker 2: We've also heard Republicans insisting that the President needs to speak,
Speaker 2: particularly with the House Speaker Kevin McCarthy on this, and
Speaker 2: even a Senator McConnell, who was involved in the negotiations
Speaker 2: more than a decade ago, is saying that he doesn't
Speaker 2: have some kind of secret deal to get something done.
Speaker 2: He's insisting that he's going to stay on the sidelines.
Speaker 2: Why is that important that it's going to be President
Speaker 2: Biden and Speaker McCarthy and potentially no one else really
Speaker 2: being involved in the highest level discussions here.
Speaker 11: Well, we don't.
Speaker 16: I mean obviously that those are the atmospherics that we're
Speaker 16: going to be seen later on today and that's what
Speaker 16: we're going to be seeing in this first week or so.
Speaker 16: But behind the scenes, we're going to see moderates within
Speaker 16: both parties kind of trying to hash out a deal.
Speaker 16: So it's important, i think in some respects because McConnell
Speaker 16: was so instrumental in getting deals in the past. So
Speaker 16: if he sits on the back bench this year and
Speaker 16: then it's really just McCarthy and Biden McCarthy.
Speaker 11: And somewhat to somewhat dependent.
Speaker 16: On those conservative Republicans and sot there any deal that
Speaker 16: he ends up making is maybe going to cost him
Speaker 16: boats within his caucus to.
Speaker 11: Keep his speakership.
Speaker 16: So therefore, despite the the fact that we're likely to
Speaker 16: see these guys coming out of this press conference saying, hey, listen,
Speaker 16: we have a new date, we're looking forward.
Speaker 11: Things are moving, you know, in a positive direction.
Speaker 16: At the end of the day, it's going to be
Speaker 16: moderates within both parties that are actually going to be
Speaker 16: able to push a deal across the finish line.
Speaker 2: Is there enough support for a moderate deal in Congress
Speaker 2: when you have a lot of very conservative Republicans that
Speaker 2: Speaker McCarthy Hinges onto maintain his speakership. We got about
Speaker 2: a minute left here.
Speaker 16: Sure, yeah, I think in all honesty, it will be
Speaker 16: difficult if the White House doesn't budget at all. In
Speaker 16: House Republicans don't budget all, it doesn't really matter. I mean,
Speaker 16: I think both parties necessarily will not necessarily vote that
Speaker 16: thing again across the finish line.
Speaker 11: But at some.
Speaker 16: Point, you know, just as we get sooner and sooner
Speaker 16: and we really understand the limits that the US is facing,
Speaker 16: I think the moderates take the forefront end end of
Speaker 16: actually creating a deal.
Speaker 11: For no other reason, they're gonna have to.
Speaker 2: This is Bloomberg day Break Today, your morning brief on
Speaker 2: the stories making news from Walls Street to Washington and beyond.
Speaker 1: Look for us on your podcast feed at six am
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 1: get your podcasts.
Speaker 2: You can also listen live each morning starting at five
Speaker 2: am Wall Street time on Bloomberg eleven three to zero
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,
Speaker 2: Bloomberg one oh six to one in Boston, and Bloomberg
Speaker 2: ninety sixty in.
Speaker 1: San Francisco, our flagship New York station, is also available
Speaker 1: on your Amazon Alexa devices. Just say Alexa Play Bloomberg
Speaker 1: eleven thirty plus.
Speaker 2: Listen coast to coast on the Bloomberg Business app, serious
Speaker 2: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg
Speaker 2: dot Com. I'm Nathan Hager and.
Speaker 1: I'm Karen Moscow. Join us again tomorrow morning for all
Speaker 1: the news you need to start your day right here
Speaker 1: on Bloomberg Daybreak.
Speaker 9: He