From the Bloomberg Interactive Burgers Studios. This is Bloomberg day Break for Tuesday, May twenty third.
Coming up today, still no deal. President Biden and Speaker McCarthy meet again to try to avert a default.
Two FED officials and Jamie Diamond expect more rate increases.
Saudi Arabia sents a warning to oil short sellers from the Cutter Economic Forum, and.
You'lp share surge as an activist pushes a sale.
Looks like subway and bus fairs are going up. Donald Trump's accuser amend's her lawsuit. I'm John Tuffer. Those stories straight Ahead.
From John Stas Sharon Sports. The Nuggets finished a sweep for the Lakers, another win for the Florida Panthers. Yankees host the Orioles tonight them Let's visit the.
Code 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 good morning. I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today.
Karon, They're still talking, but there's still no deal. That's where things stand in debt ceialing negotiations between President Biden and House Speaker Kevin McCarthy, with the earliest possible default now just nine days away. Speaker McCarthy says last night's
discussions were productive, but the Republican position is clear. We're not going to raise taxes because we bring in more money than we ever have, and we're not going to pass the clean debt ceiling, and we've got to spend less than we spent this year, and so everything else.
Is open for negotiations, but.
That is at the end of the day.
It has to fit in that place.
If President Biden released a statement after the meeting, he says he reiterated that default is off the table and the only way to move forward is to reach a bipartis in agreement. Speaker McCarthy says he plans to speak with the President every day until they reach a deal.
Well, Nathan, the stalemate comes a bit another warning from Janety Yellen. The Treasury Secretary, says it's now quote highly likely that her department will run out as a few cash in early June. In fact, she repeated her warning that the moment could come as soon as June.
First, and as detlimit talks continue Karen Reaction pours in on both sides of the aisle. Former Democratic Senator Barbara Boxer says President Biden shouldn't have to negotiate.
I do trust the President. I don't like the fact that there is a negotiation.
I personally liked it better when he said he wasn't going too, but it is.
What it is.
The former senator. Boxer says she trusts the President not to give in on his positions. Meanwhile, former acting White House Chief of Staff mcmulvaney says, Speaker McCarthy has done a good job.
I thank Kevin feels what he has held up his end of the bargain. He got his extreme right wing on board with a package that nobody thought he could pass. No one thought he could pass any package to raise the debt ceiling, but he did.
Now.
I think if you ask Kevin and el Kenda, what he's worried about is he doesn't think that Biden has control over his progressive way in the same way that Kevin is working with his right wing.
Mcmulvaney and Barbara Boxer were both guests on Bloomberg's Sound On Catch the program weekdays one pm Eastern on Bloomberg Radio or listen on demand wherever you get your podcasts.
Well, as investors deal with the possibility of a debt default, Nathan, the prospect of more rate hikes may also be in the card. Saint Louis Fed President James Bullard says he's backing more hikes this year to quell inflation.
I'm thinking, you know, two more moves this year. Now, exactly where those would be this year, I don't know, but I've often advocated sooner rather than later. You want to get the downward pressure on inflation while you can. And also, you know, you want to fight inflation while the labor market's really strong.
And Buller's call for more tightening is echoed by fellow policymaker Neil Kashkari. The Minneapolis Fed president, says that if the Central Bank does pause, it should not be taken as a sign that tightening is over well.
JP Morgan Chase CEO Jamie Diamond is also predicting more rate hikes. Karen. He spoke at the bank's Investor Day in New York.
I think everyone should be prepared for rates going higher from here. You know, if that five percent none off of that funds if I and I've been advising this to clients and banks, you should be paired for six seven.
Jamie Diamond, who's sixty seven years old, says he is still invigorated and has no plans to quit anytime soon.
Well.
Turning to the commodity markets now Nathan a warning from Saudi Arabia's top energy official to oil short sellers a week before opek Plus's next meeting.
I don't have to show my cards.
I'm not a poker player, and I don't know poker how to play poker. But I got it from a movie somewhere.
But but I.
Would just tell him watch out.
And that was Saudi Energy Minister Prince Abdulazi has been salmon speaking earlier this morning at the Cutter Economic Forum in a Doha and checking oil right now, I'm excrude oil is down a third of up percent. It's seventy one dollars eighty two cents a barrel.
In Corporate news this morning, Karen TikTok is soon going to grant Oracle full access to its source code, its algorithm and its content moderation material.
More from Bloomberg's Doug Prisner. The plan aims to alleviate criticism from US policymakers who worry TikTok's ownership by China's Bike Dance opens the door to influence her data collection by the Chinese government. Now, TikTok's data for US users will be cordoned off and it's technology reviewed by partners like Oracle to assess security risk. Oracle will also begin monitoring the controlled gateways where data comes in and out of the secure environment. Oracle set up on servers to
host data from TikTok's US users in New York. I'm Doug Prisoner, Bloomberg Daybreak.
All right, Doug, thanks, we'll share of Yelp a fourteen percent at early training. The Wall Street Journal reporting an activist investor as called for the company to look into a sale and other strategic options. The paper says TCS Capital Management plans to deliver a letter to Yelp's board later today in which it makes the case for a sale.
You know the earnings Newscaren Zoom Videos raise its full year sales forecast. Bloomberg's Charlie Pellett reports.
It is a positive sign for the software makes effort to continue growing in a post pandemic world. The San Jose based company said revenue for the fiscal year ending in January twenty twenty five will be four point four seven to four point four nine billion dollars. That is up from an earlier outlook of about four point four
to four billion. Zoom, which burst into public consciousness during the height of the pandemic, is fighting to reverse us slow down in growth for its video communications service by expanding its tools for business in New York. Charlie Pellett Bloomberg Dabris.
Time now to take a look at some of the other stories making news in New York and around the world. For that, we are joined by Bloomberg's John Tucker.
Good morning, John, Yeah, Good morning, Dathan. Was Subway and bus fares maybe going up? The Metropolitan Transportation Authority planning to boost its fares and tolls in late August, as the largest US transit provider looks to collect more revenue to help close budget deficits. The MTA considering boosting the cost of a single subway or bus ride to two dollars ninety cents from two seventy five. It is the extra cash as ridership hasient to match pre pandemic levels.
Weekday subway ridership is about seventy percent of what it was in twenty nineteen. The New York author who won a five billion dollar sexual abuse trial against Donald Trump this month is seeking new damages that story from Bloomberg's Jeff Bellinger.
Egene Carroll is asked a federal judge in Manhattan to allow additional details in the suit in which she claims Trump defamed her. She wants to add remarks he made about her on a recent CNN town hall. She's now demanding ten million dollars. During the televised town hall, which aired one day after a sexual abuse verdict against the former president, Trump lashed out at Carroll. He called her allegations a fake story and dismissed her as a whack job.
In the question and answer session from New Hampshire Jeff Bellinger Bloomberg Radio.
US Labor Board prosecutors a lunch and a cod Amazon repeatedly violated federal labor law at its sole unionized warehouse on Staten Island. In a filing the National Labor Relations Board Regional director writes that Amazon unilaterally changed policies and terminated union supporters. Republican South Carolina Senator Tim Scott joining what is likely to become a packed race for the GUOP nomination and will go toe to toe with contenders
like former President Donald Trump. During his remarks at the announcement rally, Scott described the country under the Biden administration as a nation in retreat that's under attack from the far left.
Attacking our American values, our schools, our economy, and our security.
But not on my watch, not on my watch. Word this morning that Ukrainian President Flodimir Zelensky has met with troops at the front line of Ukraine's Donesque region. His visit may be a much needed boost to morale. The eastern Ukrainian town of Bakhmud was just capture by Russian forces after more than two hundred and twenty days of
house to house fighting. Global News twenty four hours a day were powered by more than twenty seven hundred journalist at analysts in more than one hundred and twenty countries. I'm John Tucker. This is Bloomberg, Nathan.
Thank you John. Time now for the Bloomberg Sports Update. Good morning, John Stanshauer.
Good morning, Nathan. If the Heat beat the Celtics tonight Game four in Miami, then the NBA will have something that hasn't had since nineteen fifty seven, two series sweeps. Going into the Finals Game four in the West and NLA Lakers looked like they were gonna stay alive. They led Denver by fifteen at the half and then got out scored by twenty in the third corner. The Nuggets won one thirteen, one eleven. It's their first ever series sweep, their first ever trip to the NBA Finals. Nikola Jokicz
thirty points, fourteen rebounds, thirteen assists. Lebron James scored forty thirty one in the first half, but he missed two game time shots down the stretch, and Lebron then surprised many by hinting at retirement. If they Heat win tonight, they're into the finals as an eight seed. The hockey team from South Florida also one win from an East Final sweep on a trip to the Stanley Cup Final as an eight seed. The Panthers top Carolina one nothing.
Florida has won ten of its last eleven playoff games and nine of the ten wins have been by one goal. Yankees back at the stadium tonight to play Baltimore. Here's Aaron Bowen after the six to one road.
Trend, excited about how well this team is competing their level of again, walk in with edge, prepare and compete, and they're doing that at a high level right now.
Eric Colet and I facing the much improved Orioles who have baseball second best record. Mets and Cubs at Wrigley, Mets going for a six straight win. Tiger Woods made official he won't play next month's US Open. Tom Brady has officially become a minority owner in the Las Vegas Raiders. NFL approved flexing some Thursday night games good for TV, but the Jets and Giants both voted no, Billy need was unfair to fans who attend the games. Johns Dash Edward Bloomberg Sports.
Live from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Siriusxam of Bloomberg Business Appen Bloomberg dot com. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager with the US now just nine days from a potentially catastrophic default on its debt. House Speaker Kevin McCarthy has emerged from his latest meeting with President Biden without a deal, but with a promise to keep talking.
We know the deadline.
I think the President and I are going to talk every day to try to find until we get this done.
That was Speaker McCarthy following that White House meeting last night. For more, we are joined from Washington by Bloomberg government reporter Jack Fitzpatrick, who has been following these discussions for weeks now. Jack, good morning. We keep hearing from both sides that the talks are productive, but they haven't produced a deal just yet. So where do things stand this morning.
Well, they can't really lock any partial agreement and until everything is agreed to, so they're still talking about all the issues we've heard about. They're talking about spending cuts and then caps on out year spending. The energy permitting expedited measures are still under discussion. Work requirements for nutrition aid are still under discussion, and they're probably not going to announce that they've agreed on some portion of it
until they've got the whole thing locked in. They seem to all understand that this needs to happen by very early June. They're working under the assumption that June first is the deadline, and there really hasn't been any information that conflicts with that. It does look like the deadline
absolutely could be in early June. They want to get this a handshake deal done as soon as possible because McCarthy is determined to get his members seventy two hours to review it before he asks for a vote, and then, of course you've still got to get it through the Senate. So they're kind of up against the wall here in terms of timing and sticking to their own schedule of allowing members to read something. So there's an expectation that
they're going to really push to get something out. If not today, then absolutely as soon as possible.
Yeah, you laid out a long list of bullet points there where there remains disagreement, and laid out very nicely. How little time there is. Does that leave enough time to get an agreement on all those points? Or can they just agree on a few things and move something forward that can at least avert a default.
Well, some things can kind of fall off the map, and even recently there have been other proposals that kind of quickly got taken off the table. The White House has brought up increased revenues, closing tax loopholes, and the Republicans have been pushing back against that, you know, but the core of it really is a conversation about limiting spending. Find deciding how much they want to cut from discretionary spending in the next year, and then how low they
want to cap it in the out years. A lot of things could fall into place if they agree on that. It's basically that they need to agree on a budgetary framework, and that's difficult to do to get something that McCarthy and Biden can sell to their members and get through the House and get sixty votes in the Senate. But it is absolutely possible that, you know, that's just a
matter of numbers. They could agree to something very quickly if they are both determined to make some concessions and get this done.
Yeah, that is the question. You can have a framework, but there remains the question of whether it can garner enough support to pass both chambers of Congress. Do you get a sense that there would be enough bipartisan agreement to move a framework deal forward.
If it gets those two principal negotiators on board. That is a very good sign. There's a lot that goes into that. McCarthy needs something that is weighted toward Republican support. They can rely on Democratic votes. They don't need two hundred and eighteen Republican votes in the House, but he needs definitely the majority of his conference, maybe something more comfortable, maybe two thirds to support this. The Senate could get complicated.
You could put Senator Schumer, the majority leader, in a tough position if there are more Republicans supportive of the measure than Democrats. But it is considered a pretty safe bet that this can get sixty votes if it's got the House majority behind it and a Democratic president. It really then would be more of a concern about political
leader's popularity among their own members. But if they get these two negotiators, the president and the Speaker of the House, on board, then it's had a very very good chance in both chambers.
Only about thirty seconds left here, Jack, Is there any reason to think the next round of discussions could be any different, could get us closer to a deal.
We're basically in continuous negotiations. Even when McCarthy and Biden aren't meeting. They've got their point people talking, and McCarthy said he may call the President on the phone if necessary. So it's not even rounds of negotiations. It's that we're all sort of waiting on news of a deal at almost any moment, probably not the early morning, but yes, they are that close. It seems that it could come in the next round, or even before a major meeting.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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