The Bloomberg Interrupted Broker Studios. This is Bloomberg Daybreak for Friday, April twenty. First coming up today, the US plans to limit more investment in China. We have the latest on this Bloomberg exclusive. President Biden may formally launch his reelection bid as early as next week.
The SpaceX launch ends in flames, but still claim some big wins for space exploration and more.
FED officials make the case for more rate heights.
Charges against actor Alec Baldwinner dropped in a fatal onset shooting pluses a big rent increase in the future for New York rent control departments. I'm Michael Barr Moore Ahead, I'm John Stash.
Aaron sports the Rangers with another five to one win at New Jersey, another Nets loss to the Sixers, wins for the Mets and Yankees.
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 Appen everywhere you get your podcasts.
Good morning, I'm Nathan Hager.
And I'm Amy Morris. Here are the stories we're following today.
Bloomberg News has learned President Biden plans to crack down on US investment in key parts of the Chinese economy. We get more from Bloomberg Chief Asia correspondent Steven Engle.
These new curbs would be done through executive order in the coming weeks that could limit American investment in key parts of the economy, particularly some of these advanced technologies that the fear is could end up in the hands
of the Chinese military. Again, we're talking semiconductors, artificial intelligence, quantum computing, and again it's going to focus on investments where US firms play active roles in management, So that includes of course venture capital, private equity, those industries already feeling the chill of the US China bifurcation.
Bloomberg Chief Asia correspondent Steven Engle says the Biden administration plans to take action around the time of the G seven summit in Japan next month.
Meanwhile, Nathan Press sident Biden is eyeing a re election announcement as soon as next week. Bloomberg's Ed Baxter has that story.
Biden's aide's have planned for the possibility of making a video announcement to coincide with the anniversary of his previous campaign launch. He has time to do it, of course, but Third Way co founder Matt Bennett says they may be feeling pressure to go now.
I think they've decided that there's enough people asking questions that they have to say something. But the problem is there's no real imperative if you're the president to file, because you've got the White House, you've got the logistical support of the White House.
This, of course, could set up a Biden Trump rematch in San Francisco. I'm at Baxter Bloomberg Daybreak.
Thank you, Ed.
Now let's get to the latest on the debt ceiling debate in Washington. Democratic Senator Joe Manchin of West Virginia is calling on the White House to quote negotiate now. He is praising Republican House Speaker Kevin McCarthy for putting out a debt limit proposal that cuts spending. We got reaction from Democratic Congressman Brendan Boyle of Pennsylvania.
Obviously, Democrats are ready willing and able to negotiate with Republicans on future spending. What we are not willing to do is to give up anything in order to get Republicans to do what is their responsibility, and that has put a bill on the floor to raise the debt ceiling.
Queen.
Meanwhile, Republican Congressman Brian Donalds of Florida says, the Democrats have created this impass.
When they passed they Omibus spending bill right before Christmas, they could have increased the debt ceiling at that time. They chose not to. They did not want to do it, so they could have done it. Then they didn't want to do it. They wanted to set up this, this sprinksmanship, this fight, if you will, around the debt ceiling.
Congressman Donald's and Boyle were guests on Bloomberg's Sound On with Joe Matthew and Kaylee Lines. Catch the show weekdays at one pm Eastern on Bloomberg Radio.
And we now turn our attention to the Space program. Engineers still trying to figure out what happened, but the explosion of Elon Musk's space X starship yesterday shows just how far he is from the Moon.
For the latest, we are joined by Bloomberg's John Tucker. Good morning John, Yeah.
Good morning Amy. The initial launch of the most powerful rocketing in the world appeared to be picture perfect, but then four minutes later, high above the hazy Texas skies, the uncrewed Starship exploded. And this is how the SpaceX commentator described it.
Starship just experienced what we call a rapid unscheduled disassembly.
Well before the explosion, a few of the thirty three Raptor engines appeared to flame out. The super heavy booster was supposed to separate. That never happened. SpaceX says the explode of the rocket on purpose when it started tumbling through the sky. NASA's said its goal is to use Starship to land people on the Moon in twenty twenty five, but first Starship will need to prove it can get into space in one piece. Live in New York. I'm John Tucker Bloomberg, daybreak.
All right, John, thank you. It was certainly an eventful day for Elon Musk. His wealth plunged almost thirteen billion dollars to one hundred and sixty four billion after Tesla's disappointing earnings. The stock dropped almost ten percent yesterday and now it's for couping some of that up one and a half percent in the pre market. The electrical vehicle maker says it's boosting prices on its Model S and X vehicles in the US.
Turning to the economy, FED officials making the case for another rate high.
Cleveland FED President Lorettamester, I.
Anticipate that monetary policy will need to move somewhat further into restrictive territory this year, but FED funds rate moving above five percent and the real FED funds rates staying in positive territory for some time.
Cleveland FED President Loretta Mester says, well, rates move higher. The FED is monitoring the economic fallout from stresses on the banking system.
Well, that recent termoil that hit regional banks amy did not rise to the level of crisis. That's according to Bank of America CEO Brian moynihan.
Well, I think at the end of the day, crisis is too strong a word, and words like that get used a lot. But at the end there was a fair amount of disruption for a few weeks there. Well, certain business models were sorted through, But on the other hand, you could see and we could see the stability in the other business models.
Bank of America's Brian moynihan spoken an interview with Bloomberg's David Weston, and a.
Developing story out of Europe. This morning, UK Prime Minister Rishis Sunex's deputy Dominique Robb has quit his post. The resignation comes after an independent investigation criticized Rob's behavior toward civil servants. This is Bloomberg.
Early fifty three degrees in New York. We'll have a mix of sun and clouds today. Highs in the upper sixties, getting down to the mid fifties tonight. Tim now to take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael Barr. Good morning, Michael, Good morning, Nathan.
Attorneys for actor Alec Baldwin say New Mexico prosecutors are dropping the involuntary manslaughter charge against the movie star. While rehearsing for the film Rust in twenty twenty one, the prop gun Baldwin was holding went off, killing cinematographer Elena Hutchins and injuring direct to Joel Susa. A few months after the shooting, Baldwin claimed to ABC's George Stephanopolis that he never actually fired the weapon.
It wasn't in the script for the trigger.
To be pulled. Well the trigger wasn't pulled.
I didn't pull the trigger, so you never pulled the trigger.
No, no, no, no no. I would never point to go to pull a trigger at them.
Never.
The film's armorer, Hannah Gutierra's Reid, was also charged with involuntary manslaughter and pleaded not guilty. Her pre trial hearing is scheduled next month. The New York City Rent Guidelines Board is considering a significant rent increase. It would affect close to one million rents stabilized apartments. Mayor Adam's appointed panel suggested an increase of almost sixteen percent for two year leases, which would be the largest increase in decades.
It would be an eight and a half percent hike for one year leases. The Supreme Court is facing a self imposed deadline tonight to decide whether women's access to a widely used abortion pill will stay unchanged. The justices are when arguments allowing restrictions of a lower court involving the FDA approved drug mifipristone. There are allegations that the investigation into Hunter Biden is being mishandled and that President
Biden's son has been getting preferential treatment. The Justice Department says that the Hunter Biden investigation is not being watered down because he's the President's son. A whistleblower from the IRS disagrees with that. Democratic Senator Richard Blumenthal was asked about the Hunter Biden case so.
Much today it is politicized. We need to look at the facts, follow both the facts and the law, and really takes seriously any allegations, but at the same time review what is missing from those allegations as.
Well as what's the Senator Blumenthal of Connecticut says, there is less here than meets the eye. Global News twenty four hours a day, powered by more than twenty seven hundred journalist and anailists and over one hundred and twenty countries. I'm Michael Barr. This is Bloomberg.
Nathan.
Thanks Michael. Time now for the Bloomberg Sports Update. Good morning, John Stanshall.
Good morning, Nathan. Little deja vu in New Jersey Rangers and Devil's Game two, and just like Game one, the Rangers won by a five to one score. In both games, Vladimir Terra Senko scored a goal and in both games Chris Krider scored two, with both coming on the power play. Rangers also got third period goals when Patrick Kine and kappokact I was surprising how easily the Rangers have taken the two nothing series lead. We'll see what happens when
the series moves across the Hudson. Game three tomorrow at the Garden, where tonight it's the Nixon Cavs their Game three that series tied at one. Cleveland coming off the lopsided win in Game two, the Nets will face elimination tomorrow afternoon at Barkley's where Philadelphia just went up three games to none. Nets were down twelve, had a twenty three to five run on the third courter and take the lead, but Philly pulled it out one oh two
ninety seven tires. Maxi has surprisingly been the Sixers best player in this series. He scored twenty five points. Mckel Bridges led Brooklyn with twenty six. Devin Booker scored forty five. Phoenix beat the Clippers for a two to one series lead. Steph Curry scored thirty six Golden State over Sacramento, king still on a two to one lead. Also in San Francisco last night, the Mets made it seven or last eight, scored five runs on the fourth inning It was then
five to four. In the fifth, Mets pulled away beat the Giants nine to four home runs for Jeff McNeil, Eduardo Escobar and Pete Alonzo with his already ninth of the season. He leads the majors with so many injured starting pitchers. Good thing the Mets signed CODEI Seinga. He's three and zero. Max Scherzer is appealing the ten games suspension he got for his ejection for sticky stuff. He's
cleaned his innocence at the stadium. Yankees meet the Angels nine to three of five run first inning, with Jose Travino getting the three run double.
Yanks have yet to lose a series.
They start wing tonight in the Bronx with Toronto Don Stashiellwer.
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 BOMG dot com.
This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager. Don't call it a crisis. That's the message from Bank of America Chief Executive Brian moynihan, who says recent regional bank turmoil did not rise to a crisis level. In a conversation with Bloomberg's David Weston during Bloomberg's sell side leaders for him in New York City, moynihan said the deposit insurance covered by lenders did a good job of protecting consumers. He says he has no doubts that the American banking system is in good shape.
Let's bring you part of that discussion.
Now that we are where we are looking back over it. What do we take away from it? Was this a banking crisis, Was it a mild disruption, was it a tremor?
What was it?
What is going to linger from it?
Well, I think at the end of day, crisis is too strong a word, and words like that get used a lot. But at the end there was a fair amount of disruption for a few weeks there. Well, certain business models were sorted through. On the other hand, you could see and we could see the stability and the other business models which would the way way banking is down very grand learn business and stuff. And so the good news is you're seeing the earnings by the broad
industry come out this week. You're seeing things have sort of played out that way, which is very specific business models because the unique circumstances of the last twenty four months of thirty six months of massive amounts of cash putting the system and then rates changing caught people and those had to be sorted out. The good news is the basic industry is to reported good earnings across the board. Deposits have come down, but that's intended by the FED
taking money out of the system. It's got to come out of somewhere. Banking system is what they want to do to you, frankly, make credit tighter and help slow
down the economy. So that's gone on, but you look at the capital, liquidity and earnings power of all these companies have been tremendous and that's that's reassuring to people, and that's good news because in the end of the day, the banking system reflects economy and American economies around the world, and you hope it's in good shape, and it is. There's no question it's good.
Shit.
How the regulators do We were talking to them through this period of time and they stepped in obviously took the deposit insurance, and do you think they should be making changes with future to make sure we don't go through this again.
I think there will be a time to look at the deposit insurance scheme in a rational way. It's never the time to look at any of the stuff the day after it happens, because people have opinions of what happened never turns out to be as true as they thought. And even in the financial crisis, there are a lot of opinions about it started with Leming, well, that was the last part of it. It started in two thousand
and six from what happened. Housing prices quick going up, and so it took a little more rational thought to think through all the different things that happened. So I think the debate will be for transactional accounts should there during the financial crisis two thousand and eight nine, I think, going on for three or four years, there was a guaranteed transaction accounts so the individual smaller companies didn't have to be cash managed every day and figure out where
that the money was. And that's a scheme you could do either sort of transaction money in the banking system. There's savings money in the banking system, and the savings money and banking system is there to get rate and return the transaction money is there to help the economy going, and the idea is you can ensure that more fully.
And that's what they did in the financial crisis to stop people figure out in the end of the day, a scheme like that would have changed nature of what went on here because people were running around trying to figure out is there two thousand, two fifty thousand dollars in one in a small business or an entrepreneurial thing or a big company. And so I think there'll be time to talk about that. We'll see a playout. It's
worked pretty well. This is nice because the banking industry pays for its own airs and then we have a high instinct to clean it up. And so I think playing with the thought process how to be carefully dealt with only because it's been in place since the thirties and it's worked pretty well.
Your bank and some others stepped in with First republic to help them also deposit. It's led it reported by Jamie Diamond. Is that something we should expect in the future. I mean, is it First Republican to need more or will other banks need more from the other banks.
I don't have any special ins about First Republic, talk about why we did as an industry. It was to stabilize one of our companies and provide liquidity because it was a liquidy question.
They asked.
It's good.
This is kind of the odd thing because if you if you're around, and if you're old enough to be around in the late ads and nineties, that is when the banking christ won. People think the GFC so called was a banking crisis. Actually the issue is those companies weren't banks. So whether it was all the different companies you heard about that you know, caused trouble and cleaning, they weren't banks, and they were brought in the banking
system put an umbrella around them so they could fix them. Wait, in late ays and early nineties, you had a highly inflationary, high interest rate environment of commercial real estate, and that was that was a banking crisis. And so that that's different and it happens at a slower pace, and so we were able to step in and help because that was an asset quality problem. Commercial real estate rolling real estate started in Texas and oil and all this stuff.
You just ran through all the regional economies and these companies had.
Great ask quality.
It's just they had a liquidity problem and that's why we put the deposit in and it worked.
That was Bank of America CEO Brian moynihan speaking with Bloomberg's David Weston at Bloomberg's Sell SI Leaders Forum in New York City. You can listen to the full interview on the Bloomberg terminal, Bloomberg dot com, and on the Bloomberg Business app.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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