From the Bloomberg Interactive Burgers Studios. This is Bloomberg day Break for Wednesday, May twenty fourth.
Coming up today, talks on the debt ceiling hit a wall with just eight days till a potential default.
Ronda Santis is set to launch his presidential bid in an unconventional way.
Britain's hot inflation fuels bets for higher.
Rates and get ready to pay more if you share your Netflix account.
The data cent for Donald Trump's New York criminal trial. Mayor Adams trying to suspend the city's right to shelter mandate. I'm John Tucker. Those stories straight ahead.
I'm down Stash Aaron Sports, a walk off win for the Yankees, a loss for the Mets, NBA playoffs, the Celtics beat the heat.
That's all straight ahead on Bloomberg day Break. The Business news You need to sturn your day in just one fifteen minute podcast each morning on Apples, Spotify, the Bloomberg Business app, and everywhere you get your podcasts.
Good morning, I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today.
Well, Karen, we're coming off a losing session for equities. Both the S and P five hundred and the NANSDAK fell more than one percent yesterday with debt ceiling talks at an impass in Washington. After the latest round of negotiations on Capitol Hill, House Speaker Kevin McCarthy said they're not there yet.
There are certain.
Things that divide as and we know that is you cannot spend more money next year than we spend this year. Clear today, Speaker McCarthy and his negotiators say it's not clear when the two sides will meet again. White House spokeswoman Karine Jean Pierre says President Biden's team is willing to keep talking.
Negotiations are hard, they're not easy. This is democracy in action as we have seen it, as we have looked at what's been going on these past couple of days and weeks, and what both sides need to understand is neither side is going to get exactly what they want.
This standoff means any vote on a deal might not happen until next week. The Treasury Department has said it could start running out of cash as soon as next Thursday.
Well Nathan at least one Republican says there's still time for a deal Congressman French Hill as the vice chairman of the House Financial Services Committee.
No one wants to default on the Treasury securities. No one's proposing to do that. But unfortunately Congress uses a deadline. And so, like John Bahner told us years and years ago, Congress moved very slowly until it doesn't. And so we're working on this deadline, and we want to get a deal that's responsible and sensible, raises the debt sailing, but curtails the avalanche of spending.
And ARKANSAA Republican french Hill may the comments on Bloomberg's Balance of Power catch the program weekday evenings at five pm Wall Street Time on Bloomberg Television.
Well, Karen, we've heard many, including Treasury Secretary Janet Yellen Warren, about the catastrophic impact of debt default would have on the economy. One prominent investor, Rabeni Macro Associates CEO Nurial Rabini says the stock market would also feel major repercussions.
We don't know yet. They may get to the last hour before there's an agreement, or it's possible that don't reach an agreement. If that doesn't happen, then the market is going to crash and that may force an agreement in the next few days.
Nouriel Ravin made those comments to Bloomberg's Francine Lacua at the Cutter Economic Forum.
Well, Nathan. Another major political story we're following, Ron DeSantis is apparently set to announce his run for president in a very non traditional manner, and Bloomberg's Ad Baxter has the.
Story Desantas announcing it'll be a Twitter live stream with Elin Musk. That means the live audio will be available to Musk's more than one hundred and forty million followers. It also raises a number of issues, first to Santa's feeling there is a large audience, but then from Musk a rather interesting move as he shuffles the app to more partisan approach to political discourse and monitoring. Also raises
issues for advertisers at a potential row with Disney. One of its largest advertisers in any case today is the Santa State amount is challenged to Donald Trump in San Francisco. I'm at Baxter Bloomberg Debreak.
Thanks Ed.
We got some major banking news this morning. Britain's anti trust agency says traders at five major banks colluded in chat rooms to swap sensitive information on UK bonds. The Competition and Markets Authority says City Group, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada each unlawfully shared competitively sensitive information in chatrooms between two thousand and nine and twenty thirteen.
Well, turning to the economy now, Nathan Britain's inflation rate remained much stronger than expected, with gauges and measuring services and core prices rising at the fastest pace in more than three decades. We get more from Bloomberg's Lizzie Burden in London.
Eight point seven percent is the actual figure for inflation. The expectation from economists was eight point two percent. The Bank of England had seen eight point four percent. So, first of all, it goes back to questions about economists' models, and it's a point that the chief economists of the Bank of England, who Pill himself raised in Parliament yesterday.
The Governor Andrew Bailey says, part of the reason for the problem with all the estimates is that they'd assumed inflation would fall as fast as it rose and it hasn't.
And Bloomberg's Lizzie Burden in London says the figures will add pressure on the Bank of England to keep raising interest rates through the summer.
We'll back here in the US Karen. The Fed issues the minutes from this month's policy meeting, when central bankers opted for another quarter point interest rate increase. Bloomberg's Annie del Judice reports.
It's like reading tea leaves.
It's the Fed dun raising interest rates Bloomberg Economics. As the minutes may reveal why Fedchair Jerown Pale appeared to downplay the impact of rising wages on inflation immediately following the policy meeting. Since then, he signaled he's inclined to pause tightening, citing credit conditions. The FED chair may face opposition, though other officials are suggesting a US central bank needs to do even more to stomp out inflation. Vinnie del Judice Bloomberg.
Daybreak, Vinnie, thank you. And Netflix is bringing its crackdown on account sharing to the US. We get the story from Bloomberg's Charlie Bellett.
Well Services outline procedure and costs for US customers who wish to continue sharing their accounts with people outside their household. According to a blog post by the company, the streaming TV leader will begin sending emails to customers who share their passwords. Netflix is giving them the option to share their account for an additional eight dollars a month, cheaper than a full price subscription. The crackdown began last year in Latin America, and it's a key part of Netflix's
strategy to generate more revenue from users. In New York, Charlie Pellett Bloomberg Daybreak.
Thank you, Charlie. Local headlines and a check of sports. Next, This is Bloomberg Time Now to look at some of the other stories making news in New York and around the world with Bloomberg's John Tucker.
Good Morning, John, Good Morning, Nathan Is more migrants flood in New York City is asking a judge to suspend the right to shelter rule. More of this report from Bloomberg's Jeff Bellinger.
Mayor Adams has asked judge to temporarily suspend the forty two year old court ruling requiring the city to shelter homeless adults. The request comes amid a surge in asylum seekers that is straining the municipal budget. The mandate has forced the city to turn to securing hotels to house migrants. It has opened one hundred and thirty emergency shelters and
eight temporary facilities to manage the surge. New York's Department of Homeless Services is currently sheltering more than eighty one thousand individuals, a seventy five percent increase from the previous year. Jeff Bellinger, Bloomberg Radio.
Donald Trump is scheduled to go on trial March twenty fifth in his criminal case in New York, where he's charged with falsifying business records in connection with hush money payments over alleged sexual encounters. Trump appeared by video before a New York State Supreme Court justice who set the trial date after going over an order that bar is the former president from publicly disclosing details about witnesses or
other evidence. Chief Justice John Roberts, delivering his first public comments outside the court since September, he defended the institution against suggestions it was losing its legitimacy.
I want to assure people that I am committed to making certain that we as a court adhere to the highest standards of conduct.
Robert speaking at an awards ceremony the court facing slumping public approval, have been a barrage of misconduct allegations. Jeffrey Garrell, a longtime stakeholder in Manhattan's Flat Iron Building, and his group of investors have won an auction for the iconic landmark. It comes after years of battling over its future. Garrell, chairman of GFP Real Estate, been one hundred and sixty
one million dollars for the wedge shaped tower. Winning the auction, he said the owners would consider converting either part or all of the building to apartments. And Martin Shirkelly, the former pharmaceutical chief executive officer, who has served almost seven years in prison for securities fraud, is now earning twenty five dollars a month twenty five hundred dollars amou of consulting for a law firm and living with the sister
in Queens. The US Probation Office says the forty year old shore Kelly has had a mostly positive adjustment since being released from prison last year. Global News twenty four hours a day, Power five more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm John Tuckery, DC, is Bloomberg, Nathan.
Thank you, John. Time now for the Bloomberg Sports Update. Good morning, John Stanshout, Good morning, Nathan.
Yankees back at the stadium with much improved Baltimore. Yanks d Garrett Cole on the mound with the Orioles jumped in front board nothing. After the Yanks rally to tie, Baltimore reclaimed the lead, but the Yankees still like their chances going to the bottom of the ninth considering who they had leaning off.
Oh dude, swinging a fly ball, It's t to left field. It is gonna go.
Hayes watches it is done.
Amo run.
Harry Judge ties the game.
We're a toll of o run just straight away.
Let fieldfa and the Yankee scored again tenth inning. They won six to five. They've won five in a row twelve, with their last fifteen improving to thirty and twenty. Also in the Al East, Toronto ended a five game losing streak by winning that Tampa Bay twenty to one. The Mets five game win streak ended at Riglia seven to two loss to the Cubs when Denver finished the sweep of the Lakers in the West Final. That meant an NBA playoff history, one hundred and fifty teams had a
three to nothing lead. They all had gone on to win the series. Will the Miami Heat be the one hundred and fifty first. They still had the Celtics three to one, but Boston State alive taking Game four in Miami won sixteen to ninety nine a dominant second half that included an eighteen to nothing run.
They saw the Celtics go from down nine to up nine.
So it won't be two sweeps in the conference finals in the NBA, but it could be in the NHL. Florida three nothing on Carolina Game four tonight in Vegas now have three zip on Dallas. The Golden Knights won game three to four nothing that the Jets offseason worked out. Aaron Rodgers had to take a seat for the injury. NFL owners had to be extending the contractor Commissioner Roger get Out through twenty twenty seven.
He's had the job since six.
John stash Hour Bloomberg Sport.
Live from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Sirius Exam, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar.
Debt default inks may be starting to take hold for markets at the Treasury Department's deadline now just eight days away. In negotiations now to standstill in Washington, House Speaker Kevin McCarthy summed it up after the latest round of talks yesterday. We're not there yet. So I mean it's difficult because you've got to be able to you take a couple of days to write the bill, or you've got seventy two hours here then you got the Senate to act. I mean, this is why all the way back in
February we want to have an agreement. In Speaker McCarthy says, a short term extension we'll leave things worse off than they are right now. So let's take look at where things stand. We're joined live by doctor Lindsay Newman, head of Geopolitical thought Leadership at S and P Global Market Intelligence. Lindsay, good morning. Where do you think things stand? Are the odds going up that we actually see default in the US?
Thanks Nathan for having me on. So where things stand is we know that Treasury Secretary Yellen sent a letter updating Congress on Monday, saying essentially that with additional information that they've had over the last week around spending, around where things stand on the extraordinary measurements measures, it's highly likely now that the Treasury will not be able to satisfy its obligations if Congress does not act by early June, and perhaps even as early as first of June. So
the X date appears to be rapidly approaching. And as Kevin McCarthy said in that clip, they need at least seventy two hours to review a bill in Congress before they could potentially act, and the number of legislative days are dwindling. We have seen both sides called the recent meetings productive. When you and I last spoke, we talked about how there was some horse train around certain dimensions
of spending. It now really seems like the conversation the zone of negotiation is centering more broadly around this commitment to spending limits to bring down the deficit. Republicans have put forward their position and the limit, Save and Grow Act,
and we're here. Reportedly, White House has come back and offered to freeze level spending at fiscal twenty twenty three levels, and in terms of our baseline scenario, we're still at the same place that we expect to see a deal reached by that X state, something similar to the twenty eleven scenario that we saw where Congress and the Executive do agree to increase the debt limit in exchange for future spending cuts. That approaching X state is going to clarify the mind.
Yeah, we have heard some doubts, though, raised by some Republicans, including the majority leader in the House, Steve Scalise, about whether that X state of June first is really as firm as the Treasury Secretary seem to indicate. Does that give a little bit of wiggle room? How do you view that X state that's been going around.
We we certainly need to take Treasury sec. Yellen at her word. They're they are updating the analysis that they are that they are evaluating over the course of the week, as she committed to last week when she sent that letter, and we've moved from likely to breach to highly likely to to breach should they should they not see a resolution by by that X state, And again she's saying June first. Kevin McCarthy himself said that to reach a deal.
They need to get to June first, and the impacts Yellen said Yellen highlighted in her letter, but we've we've also heard from both sides that could provide severe I think her phrasing was severe hardship for American families. It's going to affect US global position. It's going to potentially affect she said, so far as the US ability to defend their national security interest. So as we get closer to that X state, the radius of impact has the potential to expand.
As you mentioned, there isn't a lot of legislative days left on the calendar to get something done, and we're expecting that lawmakers are going to be leaving town for the Memorial Day holiday in the next couple of days. Here, how do you see the timeline. Can they get something of an agreement agreed to in time for lawmakers to act.
We're hearing that they have been prepared, they have had notification that they may need to be prepared to be called back from the weekend away and in fact have it be a working weekend. The conversations we know at the negotiating level between the White House and Republican leadership are ongoing, and as you say, time is short. The current requirements, the current procedural requirements allow that the House
has seventy two hours to review a bill. They could of course waive that in this instance, but that's seventy two hours before even approving legislation. And as you say, and as we all know, just looking at the calendar, where we stand, if the X date is in fact as close to June versus as we're hearing.
Just about thirty seconds left here. But I got to ask you about the presidential race. With Florida Governor Ron DeSantis expected to make get official tonight, does that shake things up in twenty four?
The impact of the debt ceiling on the election is something that we are of course watching. Polling suggests that voters are quite split on who they would blame should we reach it default. Again, that's not our baseline scenario, but they are quite split on who would be to blame. And we know that the domestic economy is always a
key issue for presidential elections. The CBO office has the non partisan CBO has said that in order to punt on the debt limit beyond the twenty twenty four elections would require really an unprecedented debt limit increase this time around, So we have to expect that even if we do resolve the debt limit as we expect this time around, we're going to continue to talk about the debt limit as twenty twenty four approaches.
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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