From the Bloomberg Interactive Burgers Studios. This is Bloomberg day Break for Thursday, May eighteenth.
Coming up today, Debt ceiling talks continue, with potential default now just two weeks away.
President Biden arrived at the g seventh Summit in Japan.
TikTok is banned in one US state.
And retail earnings continue with Walmart recording. This morning, there.
Are conflicting accounts about a Papaanzza car chase involving Prince Arey in Manhattan, plus the controversy about where the House migrants in New York continues by Michael Barrn.
More ahead, I'm John stan Stalwin Sports.
I'll walk off win for the Mets, the walk off lost for the Yankees. The Miami Heat won Game one from the Celtic.
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 is now two weeks away from a potential government default. President Biden is now out of the country, with debt ceiling negotiations continuing in Washington. He's expressing confidence that a deal will get done in time.
Every leader in the room understands the consequences.
Of we failed of Paya bills, and it would be catastrophic for the for the.
American economy and the American people if we didn't pay bills.
President Biden says he will be in constant contact with negotiators while he's away. House Speaker Kevin McCarthy says just having a negotiation is a win. They finally backed off the insane, unrational, unsensible idea that you just raise the debt ceiling. Speaker McCarthy says he too, is hopeful a deal can be reached before US default, which could come as early as June first.
Well as negotiations continue.
Nathan McCarthy is criticizing the president's trip to Japan for an international summit. The President arrived at the G seven meeting about two hours ago, so Bloomberg. Stephen Angel is there and says Russia is likely to be a major topic.
The National Security Advisor of the US J. Sullivan, says the US will likely have a package of sanctions associated with the G seven statement, further sanctions on Russia. They're trying to close loopholes as well, third party nations, perhaps funneling high tech elements to Moscow to help its war in Ukraine. We'll also likely to see talk of economic and humanitarian support to Ukraine. So it's the G seven.
There's a lot of unity and Bloomberg Stephen Angel and Hiroshima says G seven leaders are also grappling with the question of how to tackle China.
Meantime, Karen China's president shi Jinping, is holding a summit of his own. The two day China Central Asia Summit will assemble leaders from Kazakhstan, Kirryzstan, Taijikistan, Turkmenistan, and Uzbekistan. It is She's way of reminding the G seven of China's influence outside the US led world order.
Well back here in the US, Nathan presidential politics are in focus, and there are more signs at Florida Governor Ronda Santis is prime to announce a challenge to Donald Trump for the Republican nomination.
We get the details from Bloomberg's Ed Baxter.
DeSantis has summoned financial backers for a meeting in Miami next week. This, of course, is upping the speculation that he may officially announce very soon. It is set for the twenty fourth next week, and then for political briefing the next morning, and then with the tes following the briefing, the fun begins. They're encouraged to work with the team
through the night of the twenty fifth. DeSantis will have to announce he is officially running before contributions can be solicited, so the announcement could come during those two days in San Francisco. I'm at Baxter Bloomberg Daybreak. Okay, ed, thank you. TikTok is under more pressure from the US this morning. The state of Montana has now enacted the first ever been on the wildly popular app, and we get the details now from Bloomberg's John Tucker John Nathan.
It's short on technical details and nobody's really certain how it's going to be enforced. The measure bars app stores for making TikTok available for download within Montana's borders, something you can get around simply by using a virtual private network. The governor says it's to protect residents data from the Chinese Communist Party. TikTok is owned by Beijing based Byte Dance. App stores would be liable for fines of ten thousand dollars a day for violating the law. Individual TikTok users,
they wouldn't be punished. The real news will certainly be the challenges to it. They'll offer insight into whether courts will uphold efforts in Congress to ban TikTok. TikTok has roughly one hundred and fifty million users in the US in New York On John Tucker Bloomberg, dam.
Break all right, John, Thanks well, looking at Marcus this morning.
Let's update you on some of the stocks on the move.
Shares of Cisco are done about three and a half percent, The largest maker of computer network machines as orders to cline twenty three percent in the past quarter.
Now on the flip side, Careen shares of Take two Interactive are up nine point six percent. The company known for its Grand Theft auto video game top quarterly sales estimates. Take two is also hinting of a release date for an new version of its wildly popular title.
Well up next, Nathan retail earnings come into focus. We get results this morning from Walmart, and Bloomberg's Tom Busby has a preview.
The focus for investors is the strength of grocery sales at Walmart, which makes up about half its annual revenues, and they may be more important than ever after Target reported its shoppers have been buying just the basics food and household goods, not as much clothing or electronics. Also, Home Depot noted a pullback by consumers in their report
earlier this week. Look for adjusted earnings of one dollar thirty one cents a share, revenue of one hundred and forty eight point seven billion dollars, and same store sales forecast arise just over five percent. Tom Busby, Bloomberg Daybreak.
Okay, Tom, thank you.
Shares of Micron Technology are also on the move this morning, that stocks up more than two percent in early trading. Source to say Micron's pois to land about one and a half billion dollars in financial incentives from the Japanese government to help make it the next generation memory chips in the country.
And Deutsche Bank coming under fire this morning Nathan or It's work with Jeffrey Epstein. The bank will page seventy five million dollars to settle a US lawsuit involving the late disgraced financier. Victims of Epstein's sexual abuse accuse the German bank of facilitating his sex trafficking operation. JP Morgan is also facing a similar suit. And we have your latest local headlines, plus a check of sports.
And this is Bloomberg.
I'm going to take a look at some of the other stories making news in New York and around the world. And for that beer, joined by Bloomberg's Michael Bargo Morning, Michael.
Good Morning. Nathan Saifulu Sipov, the Isis inspired terrorist who carried out a deadly attack with a truck in New York City, a sentenced to life in prison for killing eight people when he sped down a bike path and a branded truck. JP Patrick, the Jerry Foreman, spoke outside the courthouse.
The gruesome nature of this crime was just hard to take as a As a.
Jure, Sipov had been spared the death penalty. The life sentence means he is headed to the nation's most secure federal prison in Colorado. Once there, he's in for twenty two hours a day alone in his cell. The House voted to refer in battled Republican Congressman George Santos's case to the Ethics Committee. Santos says, referring the resolution to Ethics is the best path forward.
I was elected by them to come represent them.
I will continue to do that.
I have not not done my job since I've gotten here.
I can chew and walk them at the same time. I can chew them and walk at the same time.
Some of his colleagues. He called Santos after his news conference, if.
I could understand you over my colleague screaming here, the reality is better.
I gotta go there, come on. Santos is facing thirteen federal charges, including money laundering. A spokesperson for Prince Harry and Duchess Meghan claimed that they were involved in a near catastrophic car chase while being pursued by paparazzi and Manhattan Tuesday night. Meanwhile, the NYPD says it wasn't at as traffic but merely challenging to get Megan and Harry home.
After heading to a police precinct for safety, Harry and Meghan, along with her mother and a security guard, held a taxi to elude photographers, but the cab drivers stopped short of calling it a chase. New York's Mayor Eric Adams also expressed skepticism about the chase lasting two hours, but a lot of people are using our streets of any type of high speed chase that involves something of that
nature is inappropriate. In nineteen ninety seven, Prince Harry's mother, Princess Diana, died in a crash while being chased by paparazzi in Paris. Meanwhile, Mayor Adams delivered some harsh words for people criticizing the city's decision to house thousands of migrants in the city's hotels. Adams says while he would rather keep those hotels open for tourists, the city needs to house the asylum seekers somewhere, and calls on others
for suggestions moving forward. Global News twenty four hours a day, powered by more than seven hundred journalist and analysts in over one hundred and twenty countries. I'm Michael Barr. This is Bloomberg, Nathan.
Thank you, Michael, come now for the Blueberg Sports Update, brought to you by tri State out Ay you.
Good morning, John stansh Hour, Good morning Nathan.
A wild and much needed win for the Mets, who've been floundering for nearly a month, looked like another loss. They trailed Tampa Bay two not in the city field later.
Five to two.
They tied the game with a dramatic three run homer with two outs on the bottom of the ninth any by Francisco Alvarez, but then they fell behind yet again in the tenth inning.
When it was time for.
More drama, Fairbanks holds a cent the old one, swinging a.
High fly deep left field.
Peter Alonzo has what the game? It's a three run walk off home run, Hey seven.
New York WCBS.
Just as the Mets were hitting those two three run homers one to tie, one to win, a three run shot into by the Blue Jays Danny Jansen of Wandy Peralto for the first and only runs in the game. Blue Jays shutout the Yankees three nothing in ten innings. The Yanks had only three hits Game one of the NBA East Finals to the heat their third straight series
opening win on the road. Fifteen to ever do that beat the Celtics in Boston one twenty three, one sixteen, led by Jimmy Butler thirty five points, five rebounds, seven assists, six steals, the Heat made over half their three pointers. They'll play Game two in the West tonight, Lakers Nuggets in Denver where the Nuggets are seven, and oh Stanley Cup playoffs are back to night.
Game one of the East Florida at Carolina.
Second Golf Major of the aar PGA Championship at Oak Hill in Rochester. Big names going off over this morning, like world number one in Masters Champ John Rom defending Champ Justin Thomas playing.
With Orya McElroy live cover today.
I'm Blueberg Radio, starting just after the end of trading at four Sons Stashewer.
Bloomberg's points.
Live from coast to coast, from New York to San Francisco, Boston to Washington, nationwide on SYRIASXAM.
The Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.
President Biden and other world leaders have begun arriving in Hiroshima, Japan for the annual Group of Seven Leaders Summit. The warren Ukraine, arising China, and for the President, a debt crisis back home will all be top of mind. Bloomberg's and Marie Horden is covering the G seven for US
from Hiroshima and joins US Live this morning. Good to have you with us and Marie as we watch headlines cross the Bloomberg Terminal from the President's early meeting just now, with Japanese Prime Minister Kashida saying that he wants to hold Russia accountable for its brutal aggression in Ukraine, working on nuclear non proliferation and working on partnerships between Japanese and US companies. Already getting something of a glimpse of the themes that are going to be dominating this G seven.
Certainly, and good morning to you. I think we should start there with the nuclear weapons proliferation because obviously the summit of Hiarashima is a potent reminder, of course what happened in Japan twice with nuclear weapons by the United States. It's also where Fumyo Koshida, Prime Minister is from. This
is incredibly important to him. But the main topics that are going to probably be the most tense and you're going to want to see the most action from world leaders they potentially have some agreements on is going to be Russia. There's a ton of sanctions already on the Russian economy, so potentially going to look at how they can close the gaps for how Russia is still getting some material from third world countries, third party countries, excuse me.
And then of course China, how do they tackle China. We know the United States wants to come out and talk about economic coersion with China, but the issue they have is how do they agree and get all of the seven countries to not just agree on language, but beyond language, what can actually be done Because all of these economies, whether it's trade, whether it's investment, whether it's supply chains, are critically linked with Beijing. So these going
to be very difficult conversations. And then to top it off all for the president, he is going to feel a tremendous amount of pressure for obviously negotiations that are taking place back home in Washington, DC, and it is a thirteen hour, brutal time difference, So it's going to be a big one for this team to work through.
Yeah, to your point on the China question, Anne, Marie, we've seen the leaders at this summit specifically taking some pretty broad approaches when it comes to confronting President She we had Emmanuel Macron, the president of France, take a more open stance while the US is trying to get past some of the tensions following the spy balloon incident back in February. How can this gathering potentially lead to some kind of consensus on just how to tackle the Chinese question.
Well, they're looking to send a signal to China and they're going to be announcing a joint effort according to our reporting, to counter this economic coersion. But you know, you mentioned Emmanue Macron, you mentioned what the president is doing. What you're going to hear? I think a lot of languages, there is a lot of talk of decoupling at one point.
Now everyone's talking about de risking. Amaanu. Macron will be definitely one that is going to be watched because he of course had this what Summer's definitely saying, and if it's say it's a controversial trip that he talked about strategic autonomy when it comes to China and how he
didn't want to decouple. But then you're going to look at other leaders like Italy's Georgia Maloney, who recently met with Speaker McCarthy and from our reporting, she told him that they do plan to get out of China's Belton Road initiative. So potentially some wins for the United States. But the issue is how can they all align on the actions, because for China it's very difficult in terms of the economics work that is being done in each
individual country's trade, the investment. There's one potential area where we could hear talk, and this is about outbound investment restrictions. To that, Secretary Yellen when I was in the Gatta spoke about this at the Finance Minister's meeting. She wants to talk to other countries about it. But even that at the moment looks very narrow in the scope. So potential, there's going to be a lot of talk on China, but really what happens in terms of tangible deliverables is the big question.
Got about a minute left here, Anne Marie.
The President has said he's going to stay engaged with the negotiations on the debt ceiling back in Washington. How much of an overhang could this be for the other leaders gathered at the G seven when it comes to the US standing.
In the world, well, already, the President had a cancel part of his trip. He was going to pop A New Guinea, which was supposed to be a big play on a tour in China, and he was also going to Australia meeting with the Quad. They are going to be here and have a sideline meeting alongside the G seven. But the President was making a bigger push in the Asia Pacific and he had to cut short to be
with what is going on domestically. So there will be probably a lot of criticism for that on the international stage that domestic politics is getting getting in the way of foreign policy. We also have criticism back home for the president, Super McCarthy telling the President stop hiding, stop traveling. This is going to be a big one for the president, but he exhibited a lot of confidence before he left that he thinks his team dealing with the Republicans can find an agreement.
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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