From the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break for Friday, May nineteenth.
Coming up today, Optimism grows on both sides of the aisle on a debt deal agreement.
Ukraine's President Vladimir Zelenski plans to a Tamage seven meeting in Japan.
The spat between Disney and Florida Governor Ron DeSantis heats up.
And on top of Wall Street, strategist says sell this recent market rally.
Funeral services are today for the New York subway writer who died after a choke hold. Plus the NYPD makes a grim discovery in the search for two missing boys. I'm Michael Barr Bore Ahead.
I'm John Stash, Aaron's bord Twins for the Mets and Yankees. The Nuggets again beat the Lakers the Florida Panthers one in four overtime.
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 Amy Morris and I'm Karen Moscow. Here are the stories we're following today.
First House Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer are making plans for votes in the coming days on a bipartisan deal to avert a US debt default. How Speaker McCarthy says he does see a path forward.
Where we were a week ago and where we are today is a much better place because of him.
We've got the right people in the room discussing it in a very professional manner, with all the knowledge and all the background from all the different leaders and what they want.
I know, and I can see where a deal can come together. Senator Schumer says he's hopeful.
I'm also pleased that the other side has recognized the best way forward is a bipartisan piece of legislation that can secure enough votes to get through both the House and the Senate.
Meanwhile, the Senate will go forward with its planned recess next week. Senator Schumer told lawmakers they need to be ready to return to Washington within twenty four hours once there's a deal.
Melami. There is also optimism among others in Congress to be caught up with Arizona's Senator Kirsten Cinema.
Well, the good news is that we've now got the right people in the room to have the conversation and come to an agreement. And I am beginning to feel more and more confident each day that such an agreement will occur. We've got some really good news here. One is that Kevin McCarthy has said over and over he doesn't want to have a default. His folks are in the room negotiating to prevent a default and solve this challenge.
And Arizona's Senator Kirsten Cinema made the comments in an interview with Bloomberg's Joe Matthew and Kaylee Lynes. Here more of that conversation.
A little later in the program, President Biden meanwhile urging negotiators to keep pursuing a dead limit deal. The President is at the G seven meeting in Japan, and we've learned that Ukraine's President Voladimir Zelinski will also travel there to join the leaders in person. We get more on that from Bloomberg Steven Engel in Hiroshima.
We are learning from sources that Zelensky of Ukraine will be coming here on Sunday after a stop in Saudi Arabia.
For the Arab League.
He could potentially there be in the same room as Syria as asad that would be interesting, to say the least this weekend, but again he will be here at the Atomic Bomb Dome and the Peace Memorial Park just down the river here to make his case to get the G sevens perhaps give more aid for Ukraine's fight against Russia.
Bloomberg, State and Angle and hiroshimasays officials have added an extra session to the summit's schedule on Sunday to accommodate Ze Lindsay's schedule.
Meanwhile, Amy, the US and Taiwan have agreed on a trade initiative and a bid for even closer ties on Bloomberg's Ed Baxter has the story.
This is the first tangible result under an initiative announced last year. It will do several things with a lot left to do. It will streamline customs, reduce way times for trucks and vessels, and improve regulation, but it isn't a formal free trade agreement. A dozen addressed issues like tariffs or semiconductors. This agreement was also announced just hours after the Chinese Embassy in Washington announced trade meetings between
China and the US. Yet to be seen how this agreement could affect that In San Francisco, I'm at Baxter Bloomberg Daybreak.
Thank you ed a bit of a political story. On a different front, Disney's high profile fight with Florida Governor Rond De Santis has taken another turn. Let's get the latest with Bloomberg's John Tucker, John.
And Amy taking on Mickey Mouse and the force has its price. Disney has dropped plans for a new corporate campus in Florida. It would have brought with it two thousand workers. It was worth as much as nine hundred million dollars, and they're shutting down a luxury hotel at disney World Star Wars Galactic Star Cruiser. It was one of the most expensive attractions of the park. The company has also raised outs about billions of dollars in new investment in the state, while Disney is in the middle
of cost cuts. Say it's hard not to see the moves as retaliation against Ron De Santis. Disney opposed a state law limiting the discussion of gender issues in public schools. In turn, DeSantis, to presume president contender took control of a board that oversees municipal services at Disney World. Now they're in court, you know, York. Come John Tucker Bloomberg daybreak, All.
Right, John, Thanks, We'll be turned to the economy now, and bets are growing on another FED rate hike. Traders now have a June increase at forty percent. Federal Reserve Governor Phillip Jefferson says he's willing to be patient and wants to see the impact of past rate hikes.
History shows that monetary policy works with long and variable legs, and that a year is not long enough period for demand to feel the full effects of higher interest rate.
Thank Governor Philip Jefferson made the comments at an event hosted by the National Association of Insurance Commissioners in Washington.
One prominent Wall Street strategist says FED high grates may not be over. That's one reason why he's recommending investors sell this recent rally, which saw stocks close at a nine month high yesterday. Bank of America as Michael Hartnett also says tech and artificial intelligence are forming a bubble. Hartnett, who correctly predicted last year that recession fears would fuel a stock exodus, recommended selling the s and p five hundred at forty two hundred, the indexes current level and Amy.
A management shuffle may be in the works at Lazard. Bloomberg News has learned CEO Ken Jacob's plans to step down from the top job as the investment bank RETRENCHESHM at a slump in deal making and a plunge in the company's stock price. Sources say sixty four year old Jacobs are a main with the firm and be succeeded as CEO by Peter Orzag. Straight ahead your latest local headlines and this is Bloomberg.
Thank you, Karen five seven on Wall Street, fifty five degrees in New York. Look for sunshine as we go up to seventy Today. 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 bar Good morning, Michael.
Good morning. Amy. Funeral services will take place today in Harlem for a homeless New York City subway writer who died earlier this month after he was put in a choke hold. Neely's death on a New York City subway train sparked protests. Marine veteran Daniel Penny attempted to subdue Neely on an f train after Neely was said to be shouting in passengers. The medical examiner ruled Neely's death a homicide. Last week, Penny was arrained on a manslaughter charge.
The NYPD made a grim discovery in the search for two missing boys. Authorities say the body of a boy missing from Harlem was pulled from the East River. The victim's family confirmed that the remains belonged to thirteen year old Garrett Warren. Warren and his friend, eleven year old Alpha Berry, when missing several days ago. Police in the Dayton suburb of Morein, Ohio say there was an active shooting incident at a diesel manufacturing plant. Police say two
people were shot and one died at the scene. Iraine Police Sergeant Andrew Perrish our.
Officers responded along with the fire department, quickly got here and were able to get into the scene and.
Within just a few minutes confirmed the active threat inside the building was over.
Sergeant Parrish says the suspect remains hospitalized for a self inflicted gunshot wound. A spokesperson for Democratic Senator Diane Feinstein, who was absent from the Capitol for months after being hospitalized with shingles, suffered serious complications. The complications included encephalitis and Ramsey Hunt syndrome, a neurological disorder that can arise from shingles virus. Weinstein, who is eighty nine, returned to
the Capitol last week in a wheelchair. Experts are warning about a rise in the decades old bank fraud scam called check washing. Anyone who sends paper checks and the mail is vulnerable. John Breo with the National Consumers League says it starts with scammers plucking those checks, usually out of blue USPS mailboxes on the street.
They take that check and they put it into a chemical solution. Usually it's something like acetone that you can find in most neo polish removers, and that allows them to get the ink that you have used to write the check off of the check.
The National Consumers League John Breo says an easy way to protect against the scheme is to switch to paperless payments. Global News twenty four hours a day, powered by more than twenty seven hundred journalists d analysts in over one hundred and twenty countries. I'm Michael Barr. This is Bloomberg Gaming.
All right, thank you, Michael. Time now for our Bloomberg Sports update. For that, we bring in John stash Hour. All right, Emmy.
The Denver Nuggets KPE winning at home now eight to no in Denver, and the Nuggets are two wins from a place they've never been before. The NBA Finals were up to nothing on the Lakers. They trailed much of Game two. We got a big fourth quarter from Jamal Murray. That's what he scored twenty three of his thirty seven points in Denver. One one oh eight, one oh three. Yet another triple double for Nicolai Jokich, his seventh of the playoffs. Game two in the East is tonight in Boston.
Miami up won up in the heat, trying to reach the finals as an eight seed. The hockey team in South Florida also seeded eighth. The Panthers played Game one at Carolina. This game was two to two for ninety six minutes.
Sampette keeps see it out fuck Ka Chuck is Shuck Piece stars pieceas Matthew Good Chuck the overtime winner. The Pitters take game p wqem to.
Chuck's goal came with thirteen seconds left in the fourth overtime, sixth longest game in NHL history. Yankees bounced back from the extra day loss in Toronto to win four to two. Aaron Judge got him going to run over first inning, his sixth in the last six games. He later nearly hit another it bounced off the top of the wall for a double. Nester Cortez had had a couple of recent shaky addings, but he was sharpened this one of the Yanks take three to four. They played tonight in
Cincinnati the Mets. Tonight home for Cleveland. They beat Tampa Bay three to two, so they have their first two game win streaks since April twenty first. It's also their first series victory since then DJA Championship in Rochester. They'll finish the first round today. Then played the second. Thirty four year old American Eric Cole, playing in a Major for only the second time, is five under and he
leads by one over bryceon De Shamba. Round two coverage today starting at four Here, I'm Bloomberg Great sham Stash. I went Bloomberg Sports.
Live from coast to coast, from New York to San Francisco, Boston to Washington. D c nationwide on SIRIUSXAM, the Bloomberg Business app, and Bloomberg dot Com.
This is Bloomberg Daybreak. Good Friday morning. I'm Ammy Morris. In recent days, President Biden and House Speaker McCarthy signalled progress on a debt default deal. There will be compromises to get to the finish line. Arizona Senator Kirsten Cinema says, well, compromise is needed to strike a deal that works for Americans.
In an exclusive conversation on Bloomberg's Sound on yesterday, our Joe Matthew and Kaylee Lines spoke with the independent Arizona senator about the debt ceiling, bank turmoil and the southern border. Let's go to that conversation.
I want to start with the matter at hand, that, of course, is the debt ceiling and an illoming apparent deal here. Kevin McCarthy says it's going to be on the floor next week. Then it becomes a question of passage, of course, Senator, and it appears he will need some Democratic votes. Can you tell our listeners and viewers where are your red lines on this?
Well, first, one thing to remember is I'm proud to be the independent Senate from Arizona, and so I'm happy.
To join you all today.
I actually don't tend to talk in terms of red lines, and in fact, I think that when folks come around and start talking about red lines, that's how you tend to not get to a deal. So what we've got to do is really focus on coming together to find areas of shared agreement. The default, the possibility of default is a threat to every single one of us in this nation, regardless of whether they're a Democrat, Republican, or an independent. So our goal here has to be about
solving the challenge and doing it together. Now, if you ask me about what should I think we do about the debt limit and default, the bottom line is that both political parties are guilty of playing fire when it comes to the debt limit. When either party is in the minority, they demand requirements from the other party in order to get to a deal. And unfortunately that's been
happening for years, and it's a mistake. It's wrong. We should never play with fire when it comes to the full faith in credit the United States of America.
Now here we are today, we know that you have had a long history of relationships with some of the key players in these negotiations, a long working relationship with how Speaker Kevin McCarthy, with Stever Shehetty, who is negotiating on the side of the White House, as well as the O and B director Shalanda Young. So what are you telling them directly? How have you been involved in these conversations.
Well, the good news is that we've now got the right people in the room to have the conversation and come to an agreement, and I am beginning to feel more and more confident each day that such an agreement will occur. We've got some really good news here. One is that Kevin McCarthy has said over and over he doesn't want to have a default. His folks are in the room negotiating to prevent a default and solve this challenge.
Shetty and I have negotiated many a deal together in the past several years, and he's a good voice for the president. And Shalanda Young, she's the smartest person in the building. She knows the budget and appropriations inside out. So with those folks at the table, I feel confident that they're going to come to an agreement and then we'll be able to stave off default and get back to the business of governing our country.
Your confidence is refreshing, Senator. Though there are a lot of questions right now about work requirements, this seems to be where a lot of the action is in the negotiating room here, and I wonder where your line is. President Biden says he's open to additional work requirements for programs like SNAP, but draws the line at medicaid.
Do you agree with him?
It's funny because you keep mentioning the word line. And as I mentioned at the beginning of our conversation, when folks put up red lines, it makes it harder to solve the problem, not easier. The reality is, in our country, we've long had modest work requirements for some entitlement programs,
and continuing those makes relevant sense. Conversation about whether or not we'll have fewer or more of those in the future is really a discussion that belongs in the negotiating room, not on television cameras.
If ultimately, if ultimately that is included in the package, Senator, would you still vote yes to that deal?
I like how you guys keep trying to come back to the redline question and I'll just tell you right here and now, I'm not going to answer it, but I am happy to talk about how I think we can move forward after this conversation to prevent a future situation like this one. In fact, I just introduced a bill with Senator Ernst that would ensure that Congress gets accurate, nonpartisan information every year about the true facts around the
fiscal state of our nation. That way, as members of Congress and Senators, we're all informed about what our financial situation is like. And then, rather than playing politics and playing fire with the full faith in part of the United States of America, perhaps we might choose to get serious about fiscal discipline and taking care of the fiscal health of our nation.
Senator, you had a long list of questions today for the Vice Chair of the Federal Reserve, Michael Barr, and a Senate Banking Committee hearing looking into the causes and the fallout from the bank collapses that we've witnessed over
the past couple of months. Here among your questions really got to authority, oversight, supervision here, and I wonder if at this point, following your conversation with Michael Barr today, you're satisfied with the FED exercising its full authority or does Congress need to mandate something here.
Well, it's been clear from the last two times that Vice Chair bar has testified in the Banking Committee that he's acknowledged two things. One that the agency did have sufficient authority to provide oversight and failed to do so appropriately. Today he talked about making internal changes around the culture of his organization, and as you heard in my questions, I've encouraged him to create a detailed plan and report it quarterly to Congress so that he's accountable to us
for actually implementing that plan. But one thing that we know is clear the agency, the FED, had the authority and chose not to exercise it over SVB and other banks that have faced failures, and that is a failure on their part. So as you saw today, I've encouraged them and tell them that we expect them to actually do their job and do it at the speed of business. One thing we've learned is that the FED was too
slow in responding to elements or signs of risk. They would ask questions of the bank, but didn't hold them accountable and didn't do so in real time. That's something they need to do is modernize so they can actually respond to these threats in real time, just like we as consumers respond to the threats or challenges we face in real time.
So, Senator, that's something you'd like to see the regulators do internally. But is there anything you'd like to see Congress do legislatively? Are there any measures bills that you would support to address the banking crisis.
There are a number of pieces of legislation that we've introduced in a bipartisan way, including legislation it would claw back the executive bonuses and other inappropriately taken income on the part of these executives. But in terms of regulation, let's be clear, the FED and FDIC have said they do have the regulatory powers to prevent further bank failures and to hold banks accountable. It's their job to do it. It's Congress's job to hold them accountable and ensure.
They do it.
Senator Kerry Lake has been in town this Week's been her second visit here this week this year. I should stay talking with the nrsc Reuben Diego has been talking about you a lot in the media, and I wonder if you can tell us what your timeline is for making a decision on a potential run for reelection.
I don't have anything to offer to you on that point. As you can tell, I am one hundred percent invested and focused on doing the work for Arizona in the United States Senate right now. As I say, politics can wait to another day. But right now, we have so many challenges on our plate. Arizonas can count on me to stay one hundred percent focused on meeting those challenges.
But as you do your work in the Senate and look towards your future, can you rule out caucusing with the Republican Party.
Well, I've asked, been asked, and answered that question numerous times, and as I said just about a week and a half ago, you don't leave one broken party to join another. Arizonans and Americans across this country are hungry for leaders who are not invested in one party or the other, and who don't march to the drum when they're told to do something, and who importantly are willing to get out of those partisan boxes and solve the challenges we
face in our country. I've demonstrated to Arizonans over the last twenty years of service that I can be that person and have been that person, and I know they can count on me to continue doing that work. So folks can count on me to be the same independent voice I've always been.
I have to ask you about an important issue for your state, and I know it's something that you take very personally, Senator, and that's what's happening at our southern border. You're up with a bipartisan bill to extend Title forty two was just rescinded. Are you getting support in that effort in the Senate?
Well, I'm so glad you've asked about this because it's the number one issue on Arizona's mind right now. When the administration ended Title forty two without an appropriate plan in place, once again the burden falls on the shoulders of Arizona's border communities, and of course this is a
growing humanitarian crisis for the migrants themselves. So Senator Tillis and I have introduced a bill to extend the elements of Title forty two so that the administration can do what it should have done over the last two years,
which is prepare for the end of this program. We are growing in support and have gathered six co sponsors of both political parties, Because people all across the country are seeing what's happening in states like Arizona and Texas, they see migrants coming to their own states in the interior, and they know that this system is broken. It's time for us to give more opportunity for the administration to
prepare for the end of Title forty two. In the meantime, Senator Tillis and I are continuing to work on our bipartisan framework in a bi cameraal way to actually address the deeper causes that are creating this problem, So securing our border, solving all that you mentioned its about them addressed by cameras, and continuing to work to solve this in a bipartisan and bicamera way.
On the subject of being bi cameraal, of course, ahead of the end of Title forty two, we did see an immigration measure passing in the House. They called it the Secured the Border Act. Are there parts of that you could get on board with? Where is the opportunity here for a compromise?
Well, it was an important step forward that House Republicans passed a border security package. There are parts of that package that are very useful, in some parts that aren't very practical or helpful.
But what's important is that there was movement.
We haven't seen movement in a bi cameraal way in over twenty years in Congress on immigration, so this was
an important first step. Now it'll be no surprise when I tell you that I've been working with my colleagues in the House for months as they were developing this legislation, and we're continuing to work together as the Senate will create a bipartisan package to overlay and make changes to their piece of legislation and to add in elements that are important like asylum reform, visa issues, and our dreamers. So we have work to do, but I'm heartened by the facts that they're moving forward in.
Our remaining moments here.
Senator President Biden has taken fire from both sides of the aisle on this issue of the border. What does he not understand about this?
Well?
I invite President Biden and Vice President Harris to come actually visit the Arizona Mexico border. If they were to do so, like many of my colleagues have joined me in recent months, they'll see the devastation not just to our border communities, but to the migrants and those families themselves. The reality is the system is broken, and we need both enforcement on the part of the administration and changes on the part of Congress to fix the law and solve this problem once and for all.
You're listening to Bloomberg Daybreak today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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