From the Bloomberg Interactor Berger Studios. This is Bloomberg day Break for Monday May twenty second. Coming up today, round three of debt talks.
President Biden and Speaker McCarthy meet again, with potential default now just ten days away.
President Biden says relations which China will improve very shortly.
However, shares of Micron technology slide after China bans its chips.
I'm Amy Morris. New York City says the migrant wave will cost the city billions of dollars, and the man charged in the New York City subway chokehold depth says it wasn't race related.
From John Stash, Aaron Swartz, Brooks Koepka won the PGA, the Miami Heat won again, the Yankees won, and the Mets won twice.
That's all straight ahead on Bloomberg day Break, The Business news you need to starn your day in just one fifteen minute podcast each morning on Apples, Spotify, the Bloomberg Business app, and everywhere you get your podcasts. Good, good morning.
I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today, Karen.
The US is now just ten days away from a potential debt default, and talks are about to intensify in Washington. Negotiators for both sides met last night at House Speaker Kevin McCarthy's office. The speaker says he also had a productive phone call with President Biden on his way back from the G seven summit in Japan.
I walk through things that I'm looking at, and what I'm looking.
At are where our differences are.
And how could we solve those And I felt that part was a productive But look, there's no agreement.
We're still a part.
Speaker McCarthy says they're trying to find common ground on a deal that can pass both chambers of Congress. Before he left Japan, President Biden said he has proposed spending cuts. Now, he says it's up to Republicans to budge on their position.
We gave a counter proposal to the counter again, and I know this sounds ridiculous, but that's what we did, and I'm waiting to hear the response to what we are offered. We are willing to cut spending as well as Ray's revenue so people start paying they're fair shared.
President Biden made the comments to Bloomberg. San Marie Hordern at a news conference following the summit in Hiroshima.
Well Nathan, Janet Yellen is once again stressing the importance of reaching a debt ceiling agreement soon, and the Treasury Secretary says time is running out.
It's hard to be absolutely certain about this, but my assessment is that the odds of reaching June fifteenth while being able to pay all of our bills is quite low.
And Janet Yellen made the comments on NBC's Meet the Press, Catch the program every Sunday on Bloomberg Radio.
Well, Karen, The debt ceiling wasn't the only topic President Biden discussed at the G seven. Geopolitics are also front and center. The President recommitted the Group of Seven nations support for Ukraine.
The G seven reaffirmed are shared and unwavering. Let me say it again, our share and on wavery commitment to stand with the brave people of Ukraine as they defend themselves against Russia's brutal war of aggression and the war crimes being committed.
The President also addressed relations between the US and China, saying he expects them to improve shortly.
We're not looking to decouple from China. We're looking to de risk and diversify our relationship with China. That means taking steps to diversify our supply chains, and we're not so we're not dependent on any one country for necessary product.
It is you.
President Biden says, relations which China deteriorated sharply after the spy balloon incident.
Well, well, the President looks to improve relations with China. Karen. That country is banning computer chips from a top US company, and we get the details on that story from Bloomberg's John Tucker.
John Nathan, there's no cooling of tensions on this front. China is barring semiconductors made by Micron Technology. It's the latest defensive in China's hip war with the United States. Jing said it found relatively serious cybersecurity risks in Micron products sold in the country. Experts say its retaliation for
US export controls on semiconductors. The tech sector has become a key battlefield over national security between the two largest economies, Washington having already blacklisted Chinese tech firms, cutting off the flow of sophisticated processors, and banning US citizens from providing certain help to the Chinese chip industry. The US Commerce
Department said Beijing's conclusion had no basis. In fact, shares of Micron were down close to six percent in the pre market in New York Income John Tucker, Bloomberg.
Daybreak, All right, John, Thanks Well, Another big US tech company is also feeling the heat. This morning, Facebook owner Meta Platforms has been fined a record one point three billion dollars by European Union privacy regulators. Regulators see Meta failed to protect personal information from the eyes of americansecurity services.
Turning to the economy now care and there are more signs the Federal Reserve may hold off on raising interest rates now Jones is reporting Minneapolis Fed President Neil Kashkari could support holding rates at current levels at the next meeting in June. Kashkari reportedly says such a decision would be made to give Fed officials more time to assess the effects of passtrate hikes and the inflation outlook.
Well. Turning to politics in Europe, now Nathan Greek Prime Minister Carriakos Misutakis appears sent for a new term. His center right party received the most votes in this weekend's election, roughly forty one percent, though that falls short of enough to form his own government. Misutakis will likely offer another ballot. In a month, Greek stocks served on the news, rising more than six percent in Athens.
Finally, Karen Let's shift gears and talk Space Exploration. SpaceX is flying four private astronauts to the International Space Station. In Bloomberg's Ed Baxter as the story.
The Axiom funded company crew sitting atop a Falcon nine rocket.
One it just full power.
He lift the Falcon nine go Actim.
And the crew makes history for astronauts, including a man and for the first time a woman from Saudi Arabia.
Earth Orbit at Astra and Godspeed AX two.
Dock with the iss today as Actum wants to build its own. At some point, the Falcon nine rocket came back and successfully landed in San Francisco. I'm at Baxter Bloomberg Daybreak.
Local headlines in a check of sports. Next, this is Bloomberg time now to take a look at some of the other stories making news in New York and around the world. For that what you're joined by Bloomberg Zamy Morris, Good morning, Amy, Good.
Morning, Nathan. New York Mayor Eric Adams says the city is projected to spend more than four billion dollars on asylum seekers. He says more than seventy thousand migrants have come to New York City in recent months, and forty two thousand are still being cared for by the city. Speaking on CBS's Face the Nation, Mayor Adams blamed partisan politics.
Republicans for far too many years have failed to deal with real immigration reform.
This is a national issue.
Mayor Adams also criticized the federal government, saying they're only providing thirty million dollars for a four billion dollar problem. This as more migrants arrived amid a state of emergency in Duchess County after about eighty people were busted in from New York City yesterday afternoon. They were put up at a hotel in Poughkeepsie. New York City is paying for those room rentals, along with one meal a day
for at least four months. The man charged in the New York City subway choke hold death of Jordan Neely is addressing criticism that it was racially motivated. Daniel Penny is charged with manslaughter. The marine veteran told The New York Post it had nothing to do with Neely's race. Penny also said he believes footage showing what led up to the incident will prove that he was in the right. Paul Whalen is a former marine who still is imprisoned in Russia. He says he is confident that the US
is working to secure his release. Still, he tells CNN that it is depressing to see others who are imprisoned traded for their release while he can continues to wait.
I feel that my.
Life shouldn't be considered less valuable or important than others who have been previously traded. And I think there are people in DC that feel the same way, and they're moving towards a compromise and resolution to this.
Whalen was sentenced to a sixteen year term in twenty twenty on spying charges that he denies. He's been detained since twenty eighteen. Connecticut has changed its highway exit numbers, and this was mandated by the Federal Highway Administration with the aim of standardizing the exit numbering system across the country. The system is tied to the state Department of Transportation's mile marker system, with exit numbers reflecting the mile at
which an exit is located. DOT spokesman Josh Morgan tells the Hartford Current that the switch will cost into the tens of millions of dollars. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morris, and this is Bloomberg.
Nathan, Thank you, Amy. Time now for a Bloomberg Sports update. For that, we bring in John stan Shauer.
All right, Nathan Brooks Kaopka is back. He won four majors in a three year period, but hadn't won one in four years. At Okill in Rochester, kep could play the last three rounds to eleven under par. He won the PGA Championship by two over Victor Hovlin and Scotti Scheffley. But the story that captured everyone was Michael Block, the forty six year old public course pro from California who capped an amazing week on his sixty ninth holes. Takes off on an incredible line tracking ride out of It's
the right distance, Holy gow, oh my gosh. It flew right into the center of the hole for a hold one for Michael Block.
A dream week for Michael, Block continues, He's.
Just now finding out.
He hold it on the fly.
Joy McElroy had to tell him it went in. It was earlier on Bloomberg Radio. Blocks fifteenth place finished the best buy a club pro at the PGA in thirty seven years. Something happens that's never happened before. The NBA Finals will be Miami against Denver. Both have three nothing leads. No team has ever blown such a lead. Miami cruised to a Game three victory over the Celtics one twenty eight, one oh two. Denver and the Lakers have their Game
four tonight in La on the ice. Another overtime game all four on the conference final of going OT that's unprecedented. Vegas scored Layton regulation and then again a minute twelve into OT beat Dallas and leads the series to nothing. The Mets started their co aces and both ends of a city field doubleheader, and Max Sherzer and Justin Verlander were both dominant. Mets swept Cleveland five to four, then two to one. They've won five in a row, all
five by one run. Yankees finished the sweep with the other Ohio team winning four to one at Cincinnati. Luis Severino was sharp and his season debut. John Stashedward Bloomberg Sports.
Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius XAM, The Bloomberg Business Happened Bomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.
We're looking at a market on tenter hooks this morning, ahead of round three of debt ceiling talks between President Biden and House Speaker Kevin McCarthy. Potential government default, according to Treasury Secretary Janet Yellen, is now just ten days away. How could this market react as we get closer to that? X State. Let's bring in Dennis Gartman for some analysis.
Now.
Dennis's chairman of the University of Akron and Domin Investment Committee, former publisher of the Gartment Letter. Dennis, Good morning, Futures trading flat right now? Do you think that stays the case though as we get closer to June first?
I think it stays the case until we get closer to June first. I think that Miss Yellen made it abundantly clear that June first is really a very serious date for her. We'll see if that holds. There's no question that they'll reach an agreement. I mean, this is not going to go into default. We can't do that. It would just be patently absurd. If the United States government to default on its stead, it would send it would be chaotic, without question, and that really can't happen.
It really won't happen. They'll at the eleventh hour, fifty ninth a minute, tenth, fifty ninth second, they'll reach some sort of an agreement. Who knows what sort of what sort of agreement they will reach, but they'll reach one. But right now, the markets are taking a deep breath and, for lack of a better term, sort of relaxing for the next several days. We'll just see what happens with the talks between the Speaker of the House and the
President as the week progresses. But right now, everybody, I like your term, everybody's on tenter hooks waiting to see what happens. Right the only trades I have on I'm sure I'm a long with a very little amount of gold,
and I'm long a lot of two years. The thing that I find most interesting is the largest short position I've seen in the bond market by the speculators as opposed to the largest long position I've seen in since twenty eighteen on the part of hedges, and hedgers are almost always the winners and instance, so if you had to put money on the table, if you had to take a bet on the government bond market doing a good deal better over the course the next several weeks
or months. But other than that, I really have very little to talk about.
Are you long gold and two years because of the possibility that we do get that agreement at the very very last second, or are there other factors at play that have you looking at policy sensitive treasuries and inflation hedges.
You hit it right on the head. That's exactly the reason why I'm doing it that way. I think that if an agreement is reached, I'll have to come out of some of my bond positions and end up being along with the stock market again for the first time in a while, which seems to be breaking out to the upside. But I'm very leery about following it right now. So to me to say this place is to be long of the bond market, long of the gold market, which seemed to be two positions that are contrary one
to the other. But I think it's the ultimate hedge position, and I'm really comfortable being in there holding that trade at this point.
Interesting that you say that you're thinking about going along the stock market again. We've talked for literally more than a year now about you feel like this is a bear market? Do you think we could be heading into a new bowl market off the back of a deal in Washington?
What bothers me? I have been bearished no question about that for the past several years, actually, and as the chairman of the University of Acron's endowment, I got us to move out of our eight percent of our position on January fifth of twenty twenty, which was a timely exit for an endowment. But right now the market, contrary to what I would like to think, the market seems
to be breaking out to the upside. And I've learned over the course of forty five years of being in the markets that when the market wants to break out, standing in this way is usually an ill advised decision. So if I turn bullish, it'll be modestly, so the opperative word here being modestly. I won't be aggressive in that position. But it does seem like it doesn't want to go down, It does wants to go higher. It
does seem like it's breaking out to the upside. Seems to add anesthetical to what's going on in the government, what's going on in the economy, what's going on with the recession that I think we're already in. But nonetheless, the market seems to want to go higher and fading. It has been an ill advised in a very difficult position to have held for a while.
Do you think that a stock market rally can continue if the Fed keeps up with higher for longer interest rates? Do you think this market is right to price in rate cuts later on? This year, we got about a minute left in US.
I think the market is ill advised to think that the Set is going to be cutting interest rates anytime soon. I think they made it abundantly clear that the best the best you're going to get for the next year
is the FED funds rate going sideways. Maybe maybe we get another twenty five basis point increase at the one of the summer meetings, But the Fed Fund of Futures has seemed to have priced in a cut in the overnight Fed funds rate, and that's simply not going to happen until at least in the twenty twenty four, sometime quite late in twenty twenty four, as far as I'm concerned. So that's that's I've had that opinion for a while.
Markets can go up, stock markets can go up with rising rates, stock markets can go up with falling rates. Stock markets can go up on their own accord. And right now the market seems to be breaking out to the upside. Like I said, I've faded it for a while. It seems to have been an ill advised decision, not terribly ill advised, but ill advised, and following it on the upside, it seems to be the proper course of action.
So we we shall see if we if we start to take the s and p up about forty two hundred got to be, it'll be breaking out to the upside.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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