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

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Speaker 1: Break for Thursday, May twenty fifth, Coming up today.

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Speaker 2: Still waiting on a debt ceiling deal, just seven days

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Speaker 2: before a potential default.

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Speaker 1: Now the uncertainty has a rating agency putting the US

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Speaker 1: on a credit watch list.

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Speaker 2: The presidential campaign for Ron DeSantis gets off to a

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Speaker 2: glitchy start on Twitter.

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Speaker 1: And Nvidia surges, nearing the biggest one day jump in

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Speaker 1: US history.

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Speaker 2: I'm a Meymoras.

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Speaker 3: New York City explains it doesn't want to end the

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Speaker 3: shelter rule, just change it. And New York's top housing

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Speaker 3: official is stepping down from.

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Speaker 4: John stash Allen. Sports, the Yankees blow a Lee, lost

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Speaker 4: of the Orioles, the Mets lost of the Cubs. The

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Speaker 4: Florida Panthers are going to the Stanley Cup Finals.

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Speaker 5: That's all straight ahead on Bloomberg day Break. The Business

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Speaker 5: news You need to starn your day in just one

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

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Speaker 5: Business Appen everywhere you get your podcasts.

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Speaker 2: Good morning, I'm Nathan.

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

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Speaker 1: following today.

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Speaker 2: Karen the US government is now seven days for potentially

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Speaker 2: running out of cash to pay its bills. The White

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Speaker 2: House and Congressional Republicans still haven't reached a deal to

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Speaker 2: raise the debt ceiling, but after four hours of negotiations yesterday,

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Speaker 2: House Speaker Kevin McCarthy said he still thinks there's time

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Speaker 2: to reach in agreement.

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Speaker 6: There's a number of issues that are out there that

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Speaker 6: we've been working on. I think being able to find

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Speaker 6: some ways that we could probably get to fruition on

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Speaker 6: a couple of these. There's still a number of them

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Speaker 6: out there, so I want to work as hard as

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Speaker 6: we can and not stop.

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Speaker 2: And Speaker McCarthy isn't saying when negotiations might resume. House

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Speaker 2: lawmakers are expected to leave Washington today for a Memorial

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Speaker 2: Day weekend.

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Speaker 1: Well, let's talks drag on, Nathan. The US debt rating

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Speaker 1: is coming under pressure. Fitch Rating says it made downgrade

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Speaker 1: its credit ratings for the US and we get the

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Speaker 1: latest from Bloomberg's Doug Chrisner.

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Speaker 7: The move would reflect the worsening political standoff and talks

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Speaker 7: to solve the debt ceiling crisis. Fitch said the US

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Speaker 7: Triple A is on rating Watch negative to reflect increased

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Speaker 7: political partisanship. The firm says it's hindering a resolution to

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Speaker 7: raise or suspend the debt limit despite the fast approaching

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Speaker 7: date when the government runs out of cash. Bloomberg Economic

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Speaker 7: says the current standoff has the potential to wreak more

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Speaker 7: havoc on the economy than in any previous go around.

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Speaker 7: In twenty eleven, S and P Global Ratings drew fire

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Speaker 7: for downgrading the US from triple A after a similar

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Speaker 7: brush with default in New York. I'm Doug Prisoner, Bloomberg Daybreak.

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Speaker 2: Thanks Doug. Another major story we're following this morning involves

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Speaker 2: the race for the Lighthouse. Ron DeSantis has officially thrown

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Speaker 2: his hat into the ring for the Republican nomination, and

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Speaker 2: Bloomberg's Ed Baxter has the story.

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Speaker 8: He has filed papers with federal regulators and released a video.

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Speaker 8: Our border is a disaster crime in FESTI and ran

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Speaker 8: a Twitter space session with Elon Musk, which they say

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Speaker 8: had so many hits they had a hard time getting

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Speaker 8: it going.

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Speaker 5: Welcome, Govenor de sentus up for the Siztark.

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Speaker 7: We're described just trying to get it going.

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Speaker 8: Yeah, they had to shut it down. They finally did

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Speaker 8: get it back up and d Santas addressed the educational

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Speaker 8: book issues and.

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Speaker 9: So nothing's being banned.

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Speaker 10: They're basically ensuring that we make curation choices that are

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Speaker 10: consistent with state standard.

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Speaker 8: DeSantis becomes Donald Trump's strongest polling contender yet in San Francisco.

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Speaker 8: I'm at Baxter Bloomberg Daybreak.

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Speaker 1: All right, and thanks well. DeSantis is currently trailing Donald

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Speaker 1: Trump in the polls, but legal trouble is mounting to

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Speaker 1: the former president. Bloomberg News has learned that Special counsel

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Speaker 1: Jack Smith is wrapping up his investigation into Trump's refusal

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Speaker 1: to return classified documents after his election defeat. Sources a

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Speaker 1: Smith is poised to announce possible criminal charges in the

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Speaker 1: days or weeks after Memorial Day. Any indictments would need

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Speaker 1: to be approved by Attorney General Merrick Garland and a

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Speaker 1: federal grand jury.

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Speaker 2: It's turned to these markets now, Karen, we may be

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Speaker 2: seeing history in the making. In Nvidia is close to

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Speaker 2: registering the biggest one day valuation jump in US history.

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Speaker 2: Right now, its shares are surging twenty four percent. If

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Speaker 2: that holds, in Video's value ad rise by almost one

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Speaker 2: hundred ninety billion dollars, almost topping apples one hundred and

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Speaker 2: ninety one billion dollar one day gain. In November. Demand

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Speaker 2: for Nvidia's artificial intelligence processors brought sales forecasts for this

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Speaker 2: quarter to eleven billion dollars, shattering estimates. Dan Morgan is

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Speaker 2: senior portfolio manager at Sonovis Trust.

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Speaker 11: We know that Nvideo is one of the first chip

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Speaker 11: companies to really embrace AI before it became the big

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Speaker 11: thing that it is, right, and now we're starting to

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Speaker 11: come that kind of fruition in terms of actually seeing

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Speaker 11: this figures. I mean, when ACE numbers came out, I

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Speaker 11: just had to say wow.

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Speaker 2: Dan Morgan at Sinova's Trust notes the impact on other

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Speaker 2: chip makers advanced micro devices. Those shares are up nearly

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Speaker 2: nine percent in early trading.

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Speaker 1: Well, let's look at the flip side here, Nathan Shares

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Speaker 1: of Snowflake are down about fourteen percent in early trading.

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Speaker 1: The company gave a sales outlook for the current quarter

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Speaker 1: that fell short of estimates. That suggests that companies are

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Speaker 1: trimming their spending for a cloud software as economic conditions

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Speaker 1: become more uncertain.

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Speaker 2: Turning to the economy, Karen Minutes from the latest FED

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Speaker 2: meeting show officials leaning toward pausing rate hikes at their

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Speaker 2: June meeting. For insight on that, we spoke with former

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Speaker 2: Dallas FED president Robert Kaplan.

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Speaker 9: It feels to me that they're moving toward a pause.

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Speaker 9: It doesn't surprise me that they're having a debate, though,

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Speaker 9: because despite all these rate increases, the economy is holding

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Speaker 9: up pretty well, and I think that's a bit of

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Speaker 9: a surprise.

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Speaker 2: In former Dallas FED president Robert Kaplan said he thinks

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Speaker 2: the Central Bank should pause and wait for more data

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Speaker 2: before deciding on any more rate hikes and eure Rope.

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Speaker 1: Today, Nathan, we're learning Germany suffered its first recession since

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Speaker 1: the start of the pandemic. First quarter output strengths three

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Speaker 1: tenths of a percent from the previous three months. That

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Speaker 1: follows a half of a percent drop in the last

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Speaker 1: quarter of twenty twenty two.

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Speaker 2: And in banking news this morning, Karen Us prosecutors are

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Speaker 2: reviewing stock trading by some First Republic employees during the

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Speaker 2: lenders recent FAI failure. Sources say the Justice Department's looking

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Speaker 2: at whether anyone working at the firm used inside information

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Speaker 2: in transactions as the bank was on its way to collapse.

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Speaker 2: The probe is in its early stages, and it's also

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Speaker 2: scrutinizing the company's financial disclosures. Time now to take a

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Speaker 2: look at some of the other stories making news in

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Speaker 2: New York and around the world, and for that we're

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Speaker 2: joined by Bloomberg's Amy Morris. Good morning, Amy, Good morning, Nathan.

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Speaker 3: Officials say New York City does not want to end

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Speaker 3: right to shelter regulations for tens of thousands of asylum seekers.

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Speaker 3: Chief Counsel Brendan Maguire says the Adams administration only wants

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Speaker 3: the flexibility over that forty year old requirement.

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Speaker 12: This isn't an effort here to turn our backs on anyone.

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Speaker 12: The past year demonstrates that we're not going to do that.

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Speaker 12: We will not do that. The issue here is flexibility

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Speaker 12: in a crisis now.

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Speaker 3: Officials say the shelter system is buckling, with migrants being

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Speaker 3: housed at one hundred and fifty different locations across the city,

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Speaker 3: which has spent roughly seven hundred and sixty million dollars

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Speaker 3: on services, supplies, and housing for migrants, along with another

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Speaker 3: three hundred million dollars onto other resources. A day after

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Speaker 3: Merrick Mayor Eric Adams said he would oppose an effort

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Speaker 3: to reduce homelessness by increasing the number of housing vouchers.

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Speaker 3: His top housing official said she'd step down. Sources tell

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Speaker 3: The New York Times the Mayor's opposition to that legislation

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Speaker 3: is one reason Chief Housing Officer Jessica Katz will be

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Speaker 3: leaving that job this summer. Another is reportedly confusion over

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Speaker 3: who was actually in charge of dealing with the city's

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Speaker 3: housing problems. Katz says she is leaving the job to

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Speaker 3: spend more time with her children. Connecticut residents may see

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Speaker 3: reduced commuter rail service to Manhattan if state lawmakers cut funds.

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Speaker 3: The MTA may be forced to decrease service even during

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Speaker 3: peak travel times if lawmakers in Connecticut pass a budget

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Speaker 3: that directs a smaller subsidy to the transit agency. Kathy Rinaldi,

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Speaker 3: president of MTA's Metro North Railroad, told the New York

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Speaker 3: Transit Agency's monthly board meeting that it would be quote

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Speaker 3: very difficult, if not impossible, to hold peak hour trains unharmed.

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Speaker 3: The possible service cuts could come as ridership is increasing

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Speaker 3: after the pandemic shrank usage. New Jersey Attorney General's Office

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Speaker 3: has joined a lawsuit filed by forty four other states

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Speaker 3: against AVID Telecom and its owner for facilitating more than

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Speaker 3: seven and a half billion robocalls. The calls were made

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Speaker 3: to numbers on the National Do Not Call Registry. Avid

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Speaker 3: Telecom is a voice over Internet protocol service provider that

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Speaker 3: sells data, phone numbers and dialing software so its customers

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Speaker 3: can make robocalls. Global News twenty four hours a day,

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Speaker 3: powered by more than twenty seven hundred journalists and analysts

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

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Speaker 3: this is Bloomberg.

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Speaker 4: Nathan.

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Speaker 11: Okay a me thank you.

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Speaker 2: Time now for a Bloomberg Sports update. For that, we

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Speaker 2: bring in John Stashauer. Thanks Nathan.

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Speaker 4: The night after the Yankees came from four runs down

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Speaker 4: to beat Baltimore, Baltimore trailed by four, it was five

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Speaker 4: to one Yankees, and the seventh inning when the Orioles

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Speaker 4: they erupted, scoring eight times pof Nester Cortes and Jimmy Cordero.

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Speaker 4: Baltimore won nine to six at the stadium and in

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Speaker 4: the Yanks five game winning streak. In the lost two

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Speaker 4: home runs the Yankees Claybor Torres, the Mets went to

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Speaker 4: Chicago with a five game wins streak, but now two

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Speaker 4: losses for them to the Cubs, who won four to

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Speaker 4: at Rigley behind the pitching of x Men Marcus Strom

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Speaker 4: when he allowed only four hits in eight and eight's.

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Speaker 4: One of the hit hits was a Francisco Alvarez two

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Speaker 4: run homer. The Florida Panthers were the last team to

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Speaker 4: get it into the Stanley Cup playoffs.

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Speaker 2: Seen at eight.

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Speaker 4: They trailed the Bruins of the first round three games

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Speaker 4: to one, but since then they are eleven and one.

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Speaker 4: Hosted Carolina. The game was tied late in regulation.

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Speaker 11: Chuck out for right.

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Speaker 4: Point cover at fifteen seconds in regulation to chuck Ryan.

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Speaker 2: Hart and near circle. Grin Hart in the circle shot

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Speaker 2: and it's follow up by Anderson four cup right circle

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Speaker 2: down to.

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Speaker 1: The Egal like Ki.

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Speaker 11: Chuck in first hut.

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Speaker 10: This stars Bristis Bristons Man, Dude good.

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Speaker 4: Zuck wq hey Am in Miami won a playoff at

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Speaker 4: matthew to Chuck nine goals, three game winning goals. Florida

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Speaker 4: beat the Hurricanes four to three. It's the first sweep

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Speaker 4: in franchise history and just the second trip to the

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Speaker 4: Stanley Cup. Finally, the other came back in nineteen ninety six,

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Speaker 4: So this is gonna be a new Stanley Cup winner.

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Speaker 4: It looks like if Vegas can finish off Dallas and

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Speaker 4: the goal of the Knights are up three games and

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Speaker 4: I can complete the sweep. Tonight, Miami Heat up three

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Speaker 4: zip on the Celtics, who then stayed alive, winning Game

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Speaker 4: four tonight Game five in Boston, Jets are considering signing

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Speaker 4: a new punter in matter Raza. A year ago, he

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Speaker 4: had an impressive training camp, made the Buffalo Bills, but

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Speaker 4: then got cut after a sexual assault allegation of Rasa

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Speaker 4: has since been cleared of any wrongdo. Don Stashawar Bloomberg.

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Speaker 5: Sports from coast to coast, from New York to San Francisco,

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Speaker 5: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

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Speaker 5: business appened. Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 2: Good morning. I'm Nathan Hager. With seven days now until

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Speaker 2: the earliest default date set by Treasury Secretary Janet and

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Speaker 2: the markets are still waiting for a deal on the

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Speaker 2: debt ceiling to come out of Washington. But House Speaker

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Speaker 2: Kevin McCarthy says he still thinks there's time to get

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Speaker 2: to an agreement with the White House.

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Speaker 6: We can meet and talk at any time with the President.

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Speaker 6: Were working with their team consistently constantly, and so I

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Speaker 6: think an appropriate time we'll get back again.

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Speaker 2: But that optimism from Speaker McCarthy does not appear to

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Speaker 2: be shared by analystic. Fitch Ratings so placed the nation's

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Speaker 2: triple A credit rating on down grade.

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Speaker 8: Watch.

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Speaker 2: Let's bring in Bloomberg News Senior editor Bill Ferries for

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Speaker 2: more on this bill. Is this starting to seem more

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Speaker 2: like deja vous from twenty eleven when Moody's downgraded the US?

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Speaker 10: Yeah, it does bring back that. It does bring back

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Speaker 10: that deja vu or that memory from more than ten

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Speaker 10: years ago now, and it's you know, it's another warning

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Speaker 10: sign that the calendar is just getting a little bit

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Speaker 10: too tight here. Both sides continue to meet for hours

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Speaker 10: each day. But if you remember a week ago, or

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Speaker 10: just about a week ago, we were expecting the framework

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Speaker 10: of a deal to have been done over the weekend,

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Speaker 10: and so we're here now four or five days later

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Speaker 10: and we still haven't seen that framework. And the June

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Speaker 10: first X State, which is kind of the earliest date

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Speaker 10: that we think the Treasury will hit the debt ceiling

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Speaker 10: is now just you know, only a few more days away,

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Speaker 10: six days away.

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Speaker 2: At this point, are you hearing whether the US is

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Speaker 2: going to start prioritizing things. I know that Social Security

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Speaker 2: payments in particular are supposed to be coming due a

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Speaker 2: day after Treasury Secretary Yellen's X state of June first.

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Speaker 10: Right, and so we don't know if June first is

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Speaker 10: the actual final deadline date, although that's you know what,

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Speaker 10: what Secretary Yellen and many of the major financial institutions

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Speaker 10: have said is when you know we're when we're basically

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Speaker 10: running on fumes, and so they've already been prioritizing or shifting,

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Speaker 10: shifting funds around to make sure that payments are going through.

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Speaker 10: It gets a lot tougher as of that date, and

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Speaker 10: it may hit the ceiling. Then now Congress can still

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Speaker 10: step in and try to suspend it or make other changes.

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Speaker 10: That's most likely only going to happen if they reach

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Speaker 10: a deal at really the last minute.

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Speaker 2: While we wait for that deal, one thing we're not

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Speaker 2: waiting for now is for Ron DeSantis to announce his

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Speaker 2: presidential campaign. We'd been waiting for that for months, and

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Speaker 2: it seems like even the launch kept some people waiting

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Speaker 2: with that sort of glitchy start on Twitter, right.

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Speaker 10: I think he wanted to do something unusual by making

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Speaker 10: the announcement on Twitter. It's probably going to be remembered

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Speaker 10: for other reasons, although I don't know if it'll have

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Speaker 10: a long term impact, but it was. It was a

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Speaker 10: very glitchy launch, twenty five minutes of which were mostly

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Speaker 10: dead airtime as his tech staff, as Elon Musk tech staff,

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Speaker 10: tried to figure out what was going on. The sound

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Speaker 10: was down. They eventually had to switch this Twitter spaces

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Speaker 10: to another account and got it off the ground somewhat,

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Speaker 10: but it is officially launched, and Ron DeSantis is even

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Speaker 10: though he seems to trail Donald Trump in polls by

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Speaker 10: more than thirty points, he is the strongest challenger to

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Speaker 10: him at this point and has probably the biggest war

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Speaker 10: chest to go head to head against the former president.

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Speaker 2: Well, the Florida governor wants to make this challenge. Former

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Speaker 2: President Trump's legal challenges appear to be mounting here, with

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Speaker 2: sources telling us that Special Counsel Jack Smith is getting

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Speaker 2: close to wrapping up his classified documents investigation.

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Speaker 10: Right we think he's in the final stages and then

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Speaker 10: has to just make a determination whether he's or an

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Speaker 10: announcement about whether he's going to push for criminal charges

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Speaker 10: against the former president, and according to our reporting, we

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Speaker 10: think that could come within as soon as day after

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Speaker 10: the Memorial Day holiday. And some of those charges that

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Speaker 10: he would potentially be facing would include some major jail

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Speaker 10: time if he's convicted. We're talking about up to twenty

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Speaker 10: years in prison if convicted of obstructing justice. And that's probably,

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Speaker 10: you know, when it comes to Trump's Trump's decision to

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Speaker 10: keep those classified documents, that's probably the most serious charge

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Speaker 10: he's facing.

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Speaker 2: Our last thirty seconds here, even though these legal troubles

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Speaker 2: are mounting, I mean, the president, the former president, still

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Speaker 2: has this massive polling lead over not just a Santus,

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Speaker 2: but everybody else in the Republican field.

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Speaker 10: He does I think I said he's got a I

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Speaker 10: think it was a thirty six point lead over Ron

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Speaker 10: DeSantis in the latest polls. And then when you talk

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Speaker 10: about some of the other candidates and potential candidates, Nikki Haley,

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Speaker 10: Mike Pence, and a couple of the others, they are

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Speaker 10: much further down, usually in single digits. So President Trump

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Speaker 10: has showed he has stayed power with that base that

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Speaker 10: got him to the presidency in twenty sixteen. Many of

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Speaker 10: them are sticking with them. Of course, there's two different

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Speaker 10: races when you're running for president. There's the primary race

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Speaker 10: when you have to get the Republican votes, and then

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Speaker 10: there's a general election where you have to have broader appeal.

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Speaker 2: This is Bloomberg day Break Today, your morning brief on

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Speaker 1: I'm Nathan Hager and I'm Karen Moscow join us again

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Speaker 1: tomorrow morning for all the news you need to start

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Speaker 1: your day right here on Bloomberg Daybreak