Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with a major move at the southern border with political implications. Later today, President Biden will sign an executive order that would effectively prevent new asylum claims until migrant crossings drop by about two thirds from where they are right now. As of last April, border agents encountered about forty three hundred undocumented migrants per day. White House spokeswoman Karin Jean Pierre says Congress had a chance to act on border policy last week.
You saw Republicans in the Senate vote against against an opportunity to have the toughest farris piece of legislation that he wanted to sign into law to deal with the brooken system.
White How spokesman Karin Jehan Pierre spoke aboard Air Force One. Now, the order does come with political risks for or the president. Progressive say ramping up deportations is an inhumane way to handle the border, but polls show immigration is a critical issue for voters. In a tight race between President Biden and former President Trump.
Well Nathan, turning to politics, over sees early election results in India indicate the race is much closer than any of the exit polls estimated. Narendra Modi and his VJP party are seeking a third term running the world's fastest growing major economy. Bloomberg's Mary Nicola says markets are watching the results closely.
The key thing here is just about what happens in terms of the formation of the government. If you get let's say, a supermajority. What happens if the government then focuses more on its political agenda rather than the economic agenda. And that's absolutely crucial and could actually put a little bit of a stop into the rally in Indian equities if we see that.
Bloomberg's Mary and Nicola are referring there to the supermajority of two thirds of the seats in India's lower House that Mody is seeking and it allow us pretty to amend the constitution. Stocks in India are down more than five percent.
During the markets in the US, Karen a glitch during a software update at the New York Stock Exchange. That is what's getting the blame for sparking trading halts and falsely displaying ninety nine percent drops in companies including Warren Buffett's Berkshire Hathaway. The disruption is one of multiple trading kiccups in recent days. It was resolved after forty five minutes when the exchange reverted to running a different software system.
Bloomberg Financier reporter Catherine Doherty says the frequency likely is not a coincidence.
We have seen three incidents in the last week or so since T plus one was implemented, and every time that there's been incidents like this, the answer has been, oh, it's not tied to T plus one. But again, if you have the third time, I think the questions are still going to be asked and hopefully we'll get more answers.
Bloomberg's Catherine Doherty says NYSE will cancel the bad trades and review the erroneous halts to determine whether to cancel any of those.
Well. Nathan, the retail stock trader who drove the game stop craze, is apparently worth as much as two hundred and ninety million dollars. Keith gil who goes by Roaring Kitty on Reddit, posted a screenshot of his portfolio showing a huge bet on Game Stop. Bloomberg's Bailey Lipshaltz says it's impossible to verify if it's real.
The last time he posted an update on that portfolio. Last time checking in on the portfolio was worth about thirty four million dollars, so a humongous jump in terms of the actual value underlying that position, in addition to the fact that there's some forty five million dollars potentially in cash. But nonetheless it drove a flory of trading activity.
In Bloomberg's Biley lip Schultz adds there are questions about how far the game Stop rally can go, given them many changes since the meme rally in twenty twenty one, game Stop shares, which jump twenty one percent yesterday, are down well, actually now they're up again, up about one percent in early trading.
Yeah, we'll have to be keeping an eye on that throughout the morning. Karen and can see to follow the chip wars as well, because the CEO of Intel is
now firing back at Nvidia. Pad Gelsinger took the stage at the computext show in Taiwan to talk about new products you expect to help turn back the tide if share losses to peers like the AI chip Darling in Vidia, he did take a direct shot at Nvidia CEO Jensen Wong and his claim that traditional processors like Intel's are running out of steam in the age of artificial intelligence.
Were looking out to have a billion transistors on a single chip and even looking to a trillion transistors in a single package by the end of the jet of the decade. And unlike what Jensen might have you believe Moore's law is alive and well.
Intel CEO Pat Gelsinger, he was brought back to the company three years ago to turn its fortunes around and has spent heavily to revitalize Intel's offerings, building out a factory network. He has said, well, reclaim leadership in chip design and manufacturing.
Well, let's stay in Asia. Than China is taking its domestic problems and exporting them to the rest of the world. That's what the US Ambassador to Japan, Rama Manuel is saying in an interview with Bloomberg Television.
China is not going to win the Good Neighbor Award. They have a problem with India, they have a problem with the Philippines, they have a problem. They're right now creating economic coersion against Japan on Phish even though they're still fishing that area.
RAMA Manual is accusing China of over manufacturing its subsidized prices. China denies that. President Xijianping says his country's exports are helping to ease global inflation and support the clean energy transition.
Let's get to some more company news now. Karen Airbus maybe closing in on a deal with China. Bloomberg News has learned the planemakers negotiating a major sale of more than one hundred aircraft to the Asian nation. Talks have gained momentum since President Shi Jinping visited his French counterparty Manuel mccrawl last month.
Well Nathan.
Bank of America is changing its parental leave protocol in Asia. According to an internal memo, permanent employees will now be allowed twenty six weeks, of which sixteen weeks will be paid. Lenders across the region have been boosting parental leave. While Bank of America's new leave program offers more options for parents, the paid leave benefit falls short of what's offered in other banks. And it's time now for a look at some of the other stories making news in New York and around the world.
For that, we're joined by Bloomberg's Michael Barr. Michael, good Morning, Good morning Karen. Today's primary day in New Jersey. It comes as Senator Bob Menendez has filed a petition to get on the US Senate ballot in New Jersey as an independent candidate in the November election. Menendez is standing
trial on federal corruption charges. In a statement posting on social media, Menendez, who won his Senate seat as a Democrat, says he's more confident than ever that New Jersey ins and the rest of the American public will see me exonerated of what I am being accused of, and I will be realized to the Senate once again. Doctor Anthony Fauci returned to Capitol Hill to face questions from members
of the House Select Subcommittee on the coronavirus pandemic. House Republicans grilled Fauci, who served as President Biden's chief medical advisor, on a number of pandemic era allegations. During the hearing, Fauci denied any cover ups, which he said have resulted in threats against him and his family.
It is very troublesome to me.
It is much more troublesome because they've involved my wife and my three daughters.
During the nearly four hour hearing, Fauci defended his record as the face of the nation's pandemic response, facing hostile questions over policies like social distancing and masks. A crackdown on social media push by New York Governor Caathy Hokel appears to be gaining support among state lawmakers. The bill would ban social media companies from using algorithms on what miners see. The governor shared her concerns about kids' mental health last month.
They're dealing with the negative effects on mental health that is driven by social media.
The measure would ban apps from sending alerts to children between midnight and six am, and it would prohibit selling their data. The proposal is likely to face legal challenges. Amid free speech concerns, New York Mayor Eric Adams is sounding the alarm about unlicensed street vendors accompanied by minors. Adams says migrants should be allowed to work, and he once again slammed the federal response to the migrant crisis. Let them brok, not illegal.
Bending is not broking it's illegal.
I'm Michael Barr Kron.
All right, Michael, thank you, Tae. Time now for the Bloomberg Sports Update with John Stanshawer.
John, Good morning, Good morning, Karen. Was only two years ago that the Mets finished the season forty six games ahead of the Nationals. This season, Washington as the better record. Two teams begin a series of d Mets hung on at the end one eight to seven, and that scored twice in the ninth at the sign run a third, just the Mets sixth win in the last twenty one games. The Orioles won in Toronto seven to two. As hon
as the Yankees have been. Baldom were only two and a half games behind in only one game in the lost column. Yanks back home from the seven to two road chip, they host Minnesota, who they swept in mid May. They took those three games by a combined fourteen to one. Quarterfinals against eighth the French Open Coco Golf takes on Hans Javor, Carlos Alcaraz meets Stefano sits Apasta and Neil Medmane have lost his fourth round match. No Bak Djokovic won his in his last two matches, Djokovic has played
ten sets, been on the court for nine hours. A lot of attention still being paid to what happened in the WNBA game There's passed Saturday. Caitlyn Clark the recipient of a cheap shot hip check from Chicago's Kennedy Carter, who seemed to target Clark. She refused to talk about it after the game, but did speak yesterday.
I'm a competitor, and I'm gonna compete no matter who you are and no matter who's in front of me.
That's just what it was.
Heated the moment play.
We're getting at it. We're going back and forth a basketball to saw hooks.
After we finished the game.
It's all loved.
Porter said she has no regrets. Clark and Indiana won the game by one point, but then lost Sunday to the Liberty by thirty six when Clark scored only three points in the Fevers record two and nine. NBA Hall of Famer Alonzo Morning, now fifty four, revealed he battled prostate cancer is now cancer free. NFL Hall of Famer Larry Allen died suddenly while on vacation in Mexico. He was fifty two. Allen an eleven time Pro Bowl alignment on the Dallas Cowboy teams that won three Super Bowls.
Two days after Real Madrid won the Champions League, the team announced the sonning of the French star Chillian and Buppy Johns Stas Shawer Bloomberg Sports canadon.
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Daybreak, Good Morning on Nathan Hager. Immigration and border security. They are the main issues for voters, at least some of them heading into the November election, and one of President Biden's biggest political liabilities as well. But now the President plans to tackle it later today with an executive order that would sharply curtail asylum claims at the US Mexico border. And for more on this, we're joined by
Bloomberg New Senior editor Bill Ferries. Bill, Good morning. How sharply would this order curtail asylum claims?
Well, what we're hearing right now, Nathan, is that you know, we've seen levels of about forty three hundred encounters per day at the border in April with undocumented migrants. This would kick This would kick in once this document that the President aside, we kick in when it hits twenty five hundred. You're talking about, you know, almost more than half of the asylum seekers at the April levels. But we've had levels of ten thousand per day at some
points in this crisis. So it would be a real sharp curtailment from what we've seen a kind of the peak periods of the immigration flow across the border.
Bill, Let's talk about the politics of this, because it seems like the pendulum has really swung when it comes to how Democrats and Republicans are encountering this issue. And you know, for I would order like this to come nearly five months to the day before the election. I mean, is there a question around the timing of this, whether the President is playing this for politics?
Oh, there's absolutely no doubt about the timing. I mean, you know, we're more than three years into President Biden's term in office. You know, when he took office, there was a lot of frustration in both parties. I think about President Trump's previous policies, but the real focus when Biden took office was you know, the COVID crisis in
getting vack scenes out. But to come around to immigration at you know, three and a half years later, I think, well, it does have a very strong appearance of being all about the politics. And I think that's the criticism you're going to hear from Republicans on this from the get go. It's going to be, hey, you know, where have you
been on this? In that time, We've had hundreds of thousands of people come across the border, straining a lot of social services and cities, not just in the South, but you know, Texas has busted and flown more than one hundred and five thousand immigrants to other areas, including the northeast California, places like that. So I think the President's opponents will say it's been a long time coming.
I guess the President and his supporters could say, well, we had a bipartisan deal in the Senate and Republicans spiked that.
Yeah, And I think if you remember at the time, though, the White House's argument was that they wanted some authorities that they didn't think the President had. Assigning this executive order is going to raise questions about that. Now, this order is probably going to face some legal challenges. So whether it stands up in court after people go take that route with it remains to be seen. But I think the president's opponents on the Republican side at least
will say he should have tried this earlier. And of course there's going to be a lot of politics on the Democratic side of this too, particularly on the President's left, from people who are not going to be supportive of this initiative.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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