From the Bloomberg Interactor Burgers Studios. This is Bloomberg day Break for Thursday, May twenty fifth, Coming up today.
Still waiting on a debt ceiling deal, just seven days before a potential default.
Now the uncertainty has a rating agency putting the US on a credit watch list.
The presidential campaign for Ron DeSantis gets off to a glitchy start on Twitter.
And Nvidia surges, nearing the biggest one day jump in US history.
I'm a Meymoras.
New York City explains it doesn't want to end the shelter rule, just change it. And New York's top housing official is stepping down from.
John stash Allen. Sports, the Yankees blow a Lee, lost of the Orioles, the Mets lost of the Cubs. The Florida Panthers are going to the Stanley Cup Finals.
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 Appen everywhere you get your podcasts.
Good morning, I'm Nathan.
Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen the US government is now seven days for potentially running out of cash to pay its bills. The White House and Congressional Republicans still haven't reached a deal to raise the debt ceiling, but after four hours of negotiations yesterday, House Speaker Kevin McCarthy said he still thinks there's time to reach in agreement.
There's a number of issues that are out there that we've been working on. I think being able to find some ways that we could probably get to fruition on a couple of these. There's still a number of them out there, so I want to work as hard as we can and not stop.
And Speaker McCarthy isn't saying when negotiations might resume. House lawmakers are expected to leave Washington today for a Memorial Day weekend.
Well, let's talks drag on, Nathan. The US debt rating is coming under pressure. Fitch Rating says it made downgrade its credit ratings for the US and we get the latest from Bloomberg's Doug Chrisner.
The move would reflect the worsening political standoff and talks to solve the debt ceiling crisis. Fitch said the US Triple A is on rating Watch negative to reflect increased political partisanship. The firm says it's hindering a resolution to raise or suspend the debt limit despite the fast approaching date when the government runs out of cash. Bloomberg Economic says the current standoff has the potential to wreak more havoc on the economy than in any previous go around.
In twenty eleven, S and P Global Ratings drew fire for downgrading the US from triple A after a similar brush with default in New York. I'm Doug Prisoner, Bloomberg Daybreak.
Thanks Doug. Another major story we're following this morning involves the race for the Lighthouse. Ron DeSantis has officially thrown his hat into the ring for the Republican nomination, and Bloomberg's Ed Baxter has the story.
He has filed papers with federal regulators and released a video. Our border is a disaster crime in FESTI and ran a Twitter space session with Elon Musk, which they say had so many hits they had a hard time getting it going.
Welcome, Govenor de sentus up for the Siztark.
We're described just trying to get it going.
Yeah, they had to shut it down. They finally did get it back up and d Santas addressed the educational book issues and.
So nothing's being banned.
They're basically ensuring that we make curation choices that are consistent with state standard.
DeSantis becomes Donald Trump's strongest polling contender yet in San Francisco. I'm at Baxter Bloomberg Daybreak.
All right, and thanks well. DeSantis is currently trailing Donald Trump in the polls, but legal trouble is mounting to the former president. Bloomberg News has learned that Special counsel Jack Smith is wrapping up his investigation into Trump's refusal to return classified documents after his election defeat. Sources a Smith is poised to announce possible criminal charges in the
days or weeks after Memorial Day. Any indictments would need to be approved by Attorney General Merrick Garland and a federal grand jury.
It's turned to these markets now, Karen, we may be seeing history in the making. In Nvidia is close to registering the biggest one day valuation jump in US history. Right now, its shares are surging twenty four percent. If that holds, in Video's value ad rise by almost one hundred ninety billion dollars, almost topping apples one hundred and ninety one billion dollar one day gain. In November. Demand for Nvidia's artificial intelligence processors brought sales forecasts for this
quarter to eleven billion dollars, shattering estimates. Dan Morgan is senior portfolio manager at Sonovis Trust.
We know that Nvideo is one of the first chip companies to really embrace AI before it became the big thing that it is, right, and now we're starting to come that kind of fruition in terms of actually seeing this figures. I mean, when ACE numbers came out, I just had to say wow.
Dan Morgan at Sinova's Trust notes the impact on other chip makers advanced micro devices. Those shares are up nearly nine percent in early trading.
Well, let's look at the flip side here, Nathan Shares of Snowflake are down about fourteen percent in early trading. The company gave a sales outlook for the current quarter that fell short of estimates. That suggests that companies are trimming their spending for a cloud software as economic conditions become more uncertain.
Turning to the economy, Karen Minutes from the latest FED meeting show officials leaning toward pausing rate hikes at their June meeting. For insight on that, we spoke with former Dallas FED president Robert Kaplan.
It feels to me that they're moving toward a pause. It doesn't surprise me that they're having a debate, though, because despite all these rate increases, the economy is holding up pretty well, and I think that's a bit of a surprise.
In former Dallas FED president Robert Kaplan said he thinks the Central Bank should pause and wait for more data before deciding on any more rate hikes and eure Rope.
Today, Nathan, we're learning Germany suffered its first recession since the start of the pandemic. First quarter output strengths three tenths of a percent from the previous three months. That follows a half of a percent drop in the last quarter of twenty twenty two.
And in banking news this morning, Karen Us prosecutors are reviewing stock trading by some First Republic employees during the lenders recent FAI failure. Sources say the Justice Department's looking at whether anyone working at the firm used inside information in transactions as the bank was on its way to collapse. The probe is in its early stages, and it's also
scrutinizing the company's financial disclosures. Time now to take a look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's Amy Morris. Good morning, Amy, Good morning, Nathan.
Officials say New York City does not want to end right to shelter regulations for tens of thousands of asylum seekers. Chief Counsel Brendan Maguire says the Adams administration only wants the flexibility over that forty year old requirement.
This isn't an effort here to turn our backs on anyone. The past year demonstrates that we're not going to do that. We will not do that. The issue here is flexibility in a crisis now.
Officials say the shelter system is buckling, with migrants being housed at one hundred and fifty different locations across the city, which has spent roughly seven hundred and sixty million dollars on services, supplies, and housing for migrants, along with another three hundred million dollars onto other resources. A day after Merrick Mayor Eric Adams said he would oppose an effort to reduce homelessness by increasing the number of housing vouchers.
His top housing official said she'd step down. Sources tell The New York Times the Mayor's opposition to that legislation is one reason Chief Housing Officer Jessica Katz will be leaving that job this summer. Another is reportedly confusion over who was actually in charge of dealing with the city's housing problems. Katz says she is leaving the job to spend more time with her children. Connecticut residents may see reduced commuter rail service to Manhattan if state lawmakers cut funds.
The MTA may be forced to decrease service even during peak travel times if lawmakers in Connecticut pass a budget that directs a smaller subsidy to the transit agency. Kathy Rinaldi, president of MTA's Metro North Railroad, told the New York Transit Agency's monthly board meeting that it would be quote very difficult, if not impossible, to hold peak hour trains unharmed. The possible service cuts could come as ridership is increasing
after the pandemic shrank usage. New Jersey Attorney General's Office has joined a lawsuit filed by forty four other states against AVID Telecom and its owner for facilitating more than seven and a half billion robocalls. The calls were made to numbers on the National Do Not Call Registry. Avid Telecom is a voice over Internet protocol service provider that sells data, phone numbers and dialing software so its customers
can make robocalls. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in over one hundred twenty countries. I'm Amy Morris, and this is Bloomberg.
Nathan.
Okay a me thank you.
Time now for a Bloomberg Sports update. For that, we bring in John Stashauer. Thanks Nathan.
The night after the Yankees came from four runs down to beat Baltimore, Baltimore trailed by four, it was five to one Yankees, and the seventh inning when the Orioles they erupted, scoring eight times pof Nester Cortes and Jimmy Cordero. Baltimore won nine to six at the stadium and in
the Yanks five game winning streak. In the lost two home runs the Yankees Claybor Torres, the Mets went to Chicago with a five game wins streak, but now two losses for them to the Cubs, who won four to at Rigley behind the pitching of x Men Marcus Strom when he allowed only four hits in eight and eight's. One of the hit hits was a Francisco Alvarez two run homer. The Florida Panthers were the last team to get it into the Stanley Cup playoffs.
Seen at eight.
They trailed the Bruins of the first round three games to one, but since then they are eleven and one. Hosted Carolina. The game was tied late in regulation.
Chuck out for right.
Point cover at fifteen seconds in regulation to chuck Ryan.
Hart and near circle. Grin Hart in the circle shot and it's follow up by Anderson four cup right circle down to.
The Egal like Ki.
Chuck in first hut.
This stars Bristis Bristons Man, Dude good.
Zuck wq hey Am in Miami won a playoff at matthew to Chuck nine goals, three game winning goals. Florida beat the Hurricanes four to three. It's the first sweep in franchise history and just the second trip to the Stanley Cup. Finally, the other came back in nineteen ninety six, So this is gonna be a new Stanley Cup winner. It looks like if Vegas can finish off Dallas and the goal of the Knights are up three games and
I can complete the sweep. Tonight, Miami Heat up three zip on the Celtics, who then stayed alive, winning Game four tonight Game five in Boston, Jets are considering signing a new punter in matter Raza. A year ago, he had an impressive training camp, made the Buffalo Bills, but then got cut after a sexual assault allegation of Rasa has since been cleared of any wrongdo. Don Stashawar Bloomberg.
Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg business appened. Bloomberg dot Com. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager. With seven days now until the earliest default date set by Treasury Secretary Janet and the markets are still waiting for a deal on the debt ceiling to come out of Washington. But House Speaker Kevin McCarthy says he still thinks there's time to get to an agreement with the White House.
We can meet and talk at any time with the President. Were working with their team consistently constantly, and so I think an appropriate time we'll get back again.
But that optimism from Speaker McCarthy does not appear to be shared by analystic. Fitch Ratings so placed the nation's triple A credit rating on down grade.
Watch.
Let's bring in Bloomberg News Senior editor Bill Ferries for more on this bill. Is this starting to seem more like deja vous from twenty eleven when Moody's downgraded the US?
Yeah, it does bring back that. It does bring back that deja vu or that memory from more than ten years ago now, and it's you know, it's another warning sign that the calendar is just getting a little bit too tight here. Both sides continue to meet for hours each day. But if you remember a week ago, or just about a week ago, we were expecting the framework of a deal to have been done over the weekend, and so we're here now four or five days later
and we still haven't seen that framework. And the June first X State, which is kind of the earliest date that we think the Treasury will hit the debt ceiling is now just you know, only a few more days away, six days away.
At this point, are you hearing whether the US is going to start prioritizing things. I know that Social Security payments in particular are supposed to be coming due a day after Treasury Secretary Yellen's X state of June first.
Right, and so we don't know if June first is the actual final deadline date, although that's you know what, what Secretary Yellen and many of the major financial institutions have said is when you know we're when we're basically running on fumes, and so they've already been prioritizing or shifting, shifting funds around to make sure that payments are going through. It gets a lot tougher as of that date, and
it may hit the ceiling. Then now Congress can still step in and try to suspend it or make other changes. That's most likely only going to happen if they reach a deal at really the last minute.
While we wait for that deal, one thing we're not waiting for now is for Ron DeSantis to announce his presidential campaign. We'd been waiting for that for months, and it seems like even the launch kept some people waiting with that sort of glitchy start on Twitter, right.
I think he wanted to do something unusual by making the announcement on Twitter. It's probably going to be remembered for other reasons, although I don't know if it'll have a long term impact, but it was. It was a very glitchy launch, twenty five minutes of which were mostly dead airtime as his tech staff, as Elon Musk tech staff, tried to figure out what was going on. The sound
was down. They eventually had to switch this Twitter spaces to another account and got it off the ground somewhat, but it is officially launched, and Ron DeSantis is even though he seems to trail Donald Trump in polls by more than thirty points, he is the strongest challenger to him at this point and has probably the biggest war chest to go head to head against the former president.
Well, the Florida governor wants to make this challenge. Former President Trump's legal challenges appear to be mounting here, with sources telling us that Special Counsel Jack Smith is getting close to wrapping up his classified documents investigation.
Right we think he's in the final stages and then has to just make a determination whether he's or an announcement about whether he's going to push for criminal charges against the former president, and according to our reporting, we think that could come within as soon as day after the Memorial Day holiday. And some of those charges that he would potentially be facing would include some major jail time if he's convicted. We're talking about up to twenty
years in prison if convicted of obstructing justice. And that's probably, you know, when it comes to Trump's Trump's decision to keep those classified documents, that's probably the most serious charge he's facing.
Our last thirty seconds here, even though these legal troubles are mounting, I mean, the president, the former president, still has this massive polling lead over not just a Santus, but everybody else in the Republican field.
He does I think I said he's got a I think it was a thirty six point lead over Ron DeSantis in the latest polls. And then when you talk about some of the other candidates and potential candidates, Nikki Haley, Mike Pence, and a couple of the others, they are much further down, usually in single digits. So President Trump has showed he has stayed power with that base that got him to the presidency in twenty sixteen. Many of them are sticking with them. Of course, there's two different
races when you're running for president. There's the primary race when you have to get the Republican votes, and then there's a general election where you have to have broader appeal.
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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I'm Nathan Hager and I'm Karen Moscow join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak