From the Bloomberg Interactive Burgers Studios. This is Bloomberg day Break for Monday, April twenty fourth.
Coming up today, Kevin McCarthy says the House will pass is one and a half trillion dollar debt ceiling increase.
This week, Credit Sweet sees massive outflows during a frantic first quarter.
Microsoft, Amazon, and Meta lead a busy week for tech earnings, and.
Bed Beth and Beyond is the latest retailer to file for bankruptcy.
The US evacuates American diplomats and family from the deadly fighting in Sudan. Plus a call de mandate safety standards for lithium ion batteries. I'm Michael barr more ahead, I'm.
John Stash, Aaron Sports. Then nixt One lead their series three to one, a loss for the Islanders, who trailed three to one losses for the Mets and yank.
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.
We begin with a debate that could come to a head for markets in the coming weeks. The risk of US default on its debt is front end center. House Speaker Kevin McCarthy says his plan to raise the debt ceiling by one and a half trillion dollars will pass this week. We're the only ones in Washington that are actually putting a responsible plan out that will raise the debt limit. Think about for more than eighty days. It's been since I sat.
Down with the President on February first to negotiate to work through this, and he's ignored it.
Speaker McCarthy discussed his plan in an interview with Fox News. He still may need to convince members of his own party, a person familiar with the county tells Bloomberg McCarthy still has not lined up enough votes to pass his bill.
Well, sticking with Paula takes Nathan. It looks like the latest presidential polling shows both parties suffering from candidate fatigue, and Bloomberg's Ed Baxter has that story.
This is a new NBC News poll that shows Americans souring on a Biden Trump rematch, and of course, at this point the most likely scenario. It is. At this stage, Trump has emerged as a strong front runner on the GOP side. Biden is looking to formally announce as early as this week, but the polling shows most of those surveys, seventy percent said Biden should not seek reelection this while
sixty percent said Trump should bow out. Biden's age was a top issue, while Trump's indictment didn't seem to mean much. In San Francisco, I'm at Baxter Bloomberg Daybreak, Thank you, Ed.
Let's turn to markets now, where it's a busy week for corporate earnings. More than a third of the companies in the S and P five hundred report results, and we get a preview from Bloomberg's Charlie Pellace.
Technology will be in focus when we hear from Microsoft, Meta platforms and alphabet. Lisa Shallett is chief investment Officer for wealth Management at Morgan Stanley.
So far, earnings have been mixed at best. You know, certainly we've had a sector mix issue here that you know, has prevented a material meltdown, but we've had some big names missing and missing on fundamental things like demand, like pricing, like margins.
This week, we hear from a wide range of companies including General Motors, Caterpillar, x On Mobile, ge, MasterCard, Visa, PepsiCo, Ubs and Ups in New York. Charlie Pellett, Bloomberg Daybreak.
All right, Charlie, thanks. We We also get earnings from a closely watched regional bank today, First Republic reports after the close of US trading. Herman Schen is senior US regional bank analyst for Bloomberg Intelligence.
First Republic is important because they are sort of viewed as the ones in the crosshairs the most. If that one does face an issue from the FDIC coming in, the domino effect could happen again and the spotlight could shift to other banks that maybe are performing a bit weaker versus the other. So it's incumbent for First Republic
to really stabilize themselves for the industry's stake. And we'd expect to see some commentary on some stabilization in their deposit outflows later in the quarter, which should be.
And Bloomberg Intelligence analyst Hermann Chan anticipates more than eighty billion dollars in deposit attrition at First Republic. That's before larger banks swooped in to backstop the lender with thirty billion dollars, and.
As we await those earnings, Karen one Big Bank CEO, says the world is not facing a banking crisis. Morgan Stanley's James Gorman tells Nike the banking system will remain stable and healthy. Gorman says some individual firms mismanaged their duration and interest rate risk, but most banks have not.
Well in Europe, Nathan, We're also watching banks this morning. Earnings around from Credit Suite, showing a frantic first quarter marked by heavy outflows, and we get the latest live with Bloomberg's You and Pots in London. You and good morning, Good morning.
Charon Nathan. As if UBS needed a reminder of the challenge on its hands after the emergency takeover of rival Credit Sweee, the failed lender saw sixty nine billion dollars of outflows in the first quarter and its final earning support. We also found out that key units at Credit Suite continue to lose money and shed clients, and it barred far more from a central bank liquidity backstop than previously known. Plenty more to deal with for new owner UBS in London. Immune Pot's new midday break.
All right you and thank you well. Back here in the US, one of America's most well known retailers has filed for bankruptcy. Now, let's get the details live with Bloomberg's John Tucker John.
Nathan bed Bath and Beyond shutting down. Act fast. If you want some towels or bedsheets. They're going to be liquidating three hundred and sixty bed Bath and Beyond stores at one hundred and twenty by by Baby shops immediately. This longtime customer expressed what many are feeling, sick debt scrulously, they stop accepting coupons and membership discounts. Wednesday, sales at any remaining brick and mortar stores will be completed. The
locations will be empty by June thirtieth. Analysts say port management and a high debtloads suffocated the company founded in nineteen seventy one. The New Jersey based company currently employs about fourteen thousand people. There is a tiny sliver of Holt bed Bath and Beyond. It may pivot away from store closings in the unlikely event it finds some last minute suitor. Live in New York. I'm John Tucker, Bloomberg day break.
All right, John, Thanks, and confusion surrounding Twitter is deepening. This morning, a number of high profile accounts saw their prized blue check marks reinstated, even though some of their owners have been dead for years. Celebrities and public figures took to the platform to deny having paid the eight dollars a month.
It's forty five degrees in New York, will have a mix of sun and clouds today and ahem, year sixty mostly cloudy tonight, getting back down to around forty five. Now, let's 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 Barr.
Good morning, Michael, Good morning, Nathan. President Biden personally ordered the evacuation of the US embassy in Sudan's capital, Kartomb as fighting continues between two rival military groups. The US government made the decision that it was no longer safe to have the embassy personnel there anymore. Senate Intelligence Committee Chair Mark Warner says the US is working on rescuing the many AID workers still in Sudan sheltering in place.
We are working with.
A lot of international partners in this case.
Partners from them at least even believe working with China and Europeans to say those aid workers, we need.
To find a safe way to get them out.
Senator Warner spoke on ABC's This Week, which can be heard Sundays on Bloomberg. Jerry's selection is set to begin today. In the federal death penalty trial of a truck driver accused of shooting to death eleven Jewish worshipers out of Pittsburgh synagogue, Robert Bauers faces sixty three accounts in the
twenty eighteen attack at the Tree of Life Synagogue. There is a new push to crack down on poorly made lithium ion batteries after a splank in fires, some of them were deadly, including an eight year old girl who died after a fire in their New York home. New York senators are now pushing for federal safety guidelines. Senator Chuck Schumer in New York City announced a new bill to safety standards for lithium ion batteries.
When you hear from the fire commissioner that our firefighters are having to learn in real time about these dangers because they can explode and combust, particularly in fires, you know that we need to act quickly.
The Senate Majority leader was joined by a fellow Senator, Kirsten Gillibrand, saying many of the batteries are produced in China and are unsafe. A South New Jersey Little League is taking aim at spectators who fight with volunteer umpires over calls they don't like.
Now.
Deptford Township Little League officials say, if you fight with the umps, you can find yourself calling three games before you are allowed back in the bleachers. Township Little League president Don Buzzufi.
They're not baseball players, they're children, so always keep that in the back of your mind and let them play.
League President Buzzefi says it's gotten so bad two volunteer umpires have quit in the past week. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts and over a hundred twenty countries. And Michael Bard, this is Bloomberg.
Nathan, Thank you, Michael.
Time now for our Bloomberg Sports Update. Good morning, John Stanshaller.
Good morning, Nathan Knicks. Fans haven't had enjoyed a weekend like this past one and a long time wins at the Garden Friday night, then again yesterday afternoon, a little closer than Game three was Nick blew up fifteen point leading, fell behind, but they beat Cleveland one o two to ninety three and half for the first time in a decade. They are just one win from advancing to the second
round of the playoffs. Jalen Bruns and twenty nine points, r J Barrett with twenty six the Nicks one without much from Julius Random only seven points, two rebounds, and he didn't play at all in the fourth quarter. Coach Tom Thimbodeau Saint Randall is still suffering from the late season ankle injury. The Cavs star Donovan Mitchell had only eleven points, shot five of eighteen, had six turnovers. Game five is Wednesday in Cleveland. Boston won in Atlanta to
go up three to one. Minnesota be Denver still trails three to one, and a one point win for Golden State over Sacramento. That series is tied to two. The Warriors continuing what happened all season with them great at home but struggles on the road at the Ubs Arena. Carolina up beat the Islanders five to two and the Hurricanes go up three games to one, all four road teams one in the NHL, Boston at Florida for a three to one league, Dallas at Minnesota, Edmondson LA. Both
those series in the Western now tied to two. That Oilers Kings series has had three games go to overtime. The Devils, off the ot win in Game three, will now look to tie up the series with the Rangers. Tonight, It's Game four at the Garden. No wins yet by the home team. Mets at a lead on the Giants, who then rallied scored eight ton One five to four. Mets now come home Toronto beat the Yankees five to one. They won the series, outscoring the Yanks thirteen to five.
It's the first series the Yanks have lost this season. John Stashedward Bloomberg.
Sports Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius XM, The Bloomberg Business Appen Bloomberg dot Com. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
We're watching futures slip this morning with traders getting ready for a flood of corporate earnings this week and some key economic data at the end of the week that could put the Fed's policy path into focus. Let's get you set for the trading week ahead. We're joined by Dennis Gartman, the chairman of the University of Akron and
Dowment Investment Committee and the former publisher of the Gartman Letter. Dennis, a lot for investors to focus on this week, even with the FED in its blackout period now, But I'm curious to get your thoughts on where things stand when it comes to the debt ceiling debate, because we did just hear from House Speaker McCarthy yesterday on one of the Sunday shows saying that he does think his bill
will pass. Some of the reporting we're hearing, though, is that he might not have the votes from his own party lined up. How big a risk would you say the threat of default should be for investors?
The risk of default should be relatively minimal. To be quite honest, I've been in this business for almost fifty years. I've seen this process when its way to finalization. I don't know, five, six, seven times in the course of the past fifty years, we'll get to eleven fifty nine, fifty nine on the clock and they'll come up with an agreement of some sort. Yes it's difficult, Yes it's disconcerting. Yes it's dismaying. Yes we look like a third world nation.
But when push comes to final show they'll reach some sort of an agreement. It's a little discouraging to find out that even the Republicans are unable to pass piece of legislation to get it through the House. Whatever they come up with to begin with will be denied by the Senate, but eventually there will be a resolution. It's always come that way. Let us hope that I'm not overly optimistic. Let us hope that I'm absolutely right, and
I think that I shall be. This is, as I said, I've lived through this too many times in the past to think that we are stupid beyond belief to allow a default of the United States government obligations that just won't happen, or let's put it this way, that just cannot happen. If it were to happen, it would be a war effort of consequence. And let us hope that I'm optimistic and correct.
Could we see volatility for investments on the way to that outcome?
Not a question. We'll see great volatility, and I think that the big risk is to the downside in the stock market at this point. I think that's where the risks lie, not so much in the government securities themselves, but in the fact that the public has been involved, the fact that we've had a huge rally in stocks since the start of the year predicated basically upon five
share five companies Meta, Microsoft, Alphabet, Amazon, and Navidia. I think between between the five of them, that's been almost two thirds of the gain of the S and P five hundred has been predicated upon the advantage of those stocks. That's where the risks lie.
And we are going to hear from those companies reporting earnings many of those companies this week. In fact, what's your expectation what we're going to see from the earnings from those mega megacap tech companies. Can they continue to keep the kind of momentum that they've shown in the start of this year.
Investors better hope that they can continue to keep that type of momentum. They've laid off a lot of people, or said that they shall be laying off a number of people. The earnings and estimates are beyond my can to be quite honest, I'm more fascile with the what's going on with government security, is more facile with what's going on in for in exchange, more fascile with what's
going on in commodities. I leave the estimates of earnings of corporations to other people wiser than I hate to say that, but it's just the I've learned after the course of five decades of this business, Trying to make an estimate of corporate earnings is beyond my can.
Well, you can make an estimate as far as what we're expecting from this Federal Reserve and the possibility of more rate hikes to come, and the potential that that could have an impact on credit conditions going forward. What are you seeing when it comes to the risk of further credit tightening after what we saw in the regional banks in the last couple of months.
I think that's a very fair and estimation that shall happen. I don't think there's any question but that regional banks and smaller banks are tightening up their loan applications, their loan requirements. There's no questions that that's happening. I think, as far as the FED is concerned, another twenty five basis points is typed into the market, no question. The question shall be what happens after the May meeting, where we'll get twenty five basis points that may be actually
will may be the terminal rate. But when will the Fed begin to ease monetary policy? When shall they begin to allow the overnight FED funds right to decline. That's not going to happen until twenty twenty four at the earliest. It'll be quite some period of time. The Fed shall sit tight do nothing after raising twenty five more basis points at the main meeting.
In our last thirty seconds here, Dennis, do you think that holds up? That thesis holds up. If we do see a further credit tightening, that could have an impact on what the Fed could do later on this year into NAC.
I think the actual facts of credit tightening by the regional and smaller banks is not going to become public knowledge until five a month to six weeks out. So the SAED has to deal with what they have on hand at this point, and that's the inflation still is a problematic circumstance. It'll be there will be a reason for the Fed too to hold right steady through the summer, into the autumn and into the winter, predicated upon a slowing of credit availability. But that's going to be down
the road someplace. We don't have to worry about that right now. That FED does not have that, we'll not have the facts of that circumstance for a question rate in time, in into the future.
This is Bloomberg Daybreak Today, your morning brief on the story's making news from Wall Street to Washington and beyond.
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