From the Bloomberg Interactive Burgers Studios. This is Bloomberg day Break for Thursday, May eleventh.
Coming up today, Janet Yellen says a debt default could impact national security.
Donald Trump orges Republicans to get spending cuts or push the country into default.
The Biden administration warrants of difficulty at the border as Title forty two winds.
And Disney shares slump as subscriber growth falls.
New York Manior Adams calls for more mental health services after the chokehold death of a homeless man. Plus Democrat Dane Feinstein was back on the Senate floor. I'm Michael Barr. Or ahead, I'm.
John Stanstown Swards. The Knicks kept their season alive. They beat the Heat and game five wins for the Mets and Yankees.
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.
We begin with the debt ceiling stalemate. Treasury Secretary Janet Yellen says failure to avoid a default would have devastating consequences.
In my assessment, and that if economists across the board, a default on US obligations would produce an economic and financial catastrophe. A default would threaten the gains that we've worked so hard to make over the past few years in our pandemic recovery, and it would spark a global downturn that would set us back much further.
Speaking at the G seven in Japan, Yellen said a default would also undermine Washington's ability to defend national security. Meanwhile, President Biden says an agreement needs to be reached.
If we default on our debt, the whole world is in trouble. This is a manufactured crisis. There's no question about America's ability to pay its bills. Am strongest economy in the world. We should be cutting spending the lower in the depth, so without a needless crisis, in a responsible way.
President Biden is scheduled to resume debt talks with House Speaker Kevin McCarthy tomorrow. It's a subject we will address in an exclusive interview with Janet Yellen. Tune in for that conversation with the Treasury Secretary tomorrow morning. On Bloomberg Daybreak.
Meantime, Nathan Donald Trump is weighing in on debt ceiling talks. The Republican presidential front runner is urging his party not to give in.
I say to the Republicans out there, congressman, senators, if they don't give you massive cuts, you're going to have to do a default. And I don't believe they're going to do a default because I think the Democrats will absolutely cave.
Former President Trump made the comments at a town hall event with CNN last night.
Well, the default deadline, Karen, isn't the only one we're following. This morning. Hundreds of US troops are being deployed to the US southern border, along with marshalls, immigration officials, and the National Guard, as Title forty two restrictions come to an end. Amy Morris has details from our Bloomberg ninety nine one newsroom in Washington.
Title forty two allowed US officials to expel migrants who crossed the southern border because of COVID restrictions, but the COVID Health Emergency was allowed to expire, and so was Title forty two. New immigration policies will be in effect at the border, and the Biden administration is bracing for a new wave of migrants. Homeland Security Secretary Alejandra Mayorcis tells ABC difficult days lie ahead.
Make no mistake about it. It's going to be difficult for a while, and that is indeed what we are experiencing.
The US has agreements with several countries to deny entry and send migrants back to their country of origin. Regional centers are also being set up to determine asylum status before they even start their journey, and it will be harder to claim asylum status in Washington. I Amy Morris Bloomberg Daybreak.
All right, Amy, thanks well. Elsewhere in politics and New York, Congressman George Santo sash Fleeta not guilty to a broad range of fraud and money laundering charges the Long Island or Allan is to find mounting pressure that he resigned.
I'm gonna fight my battle, I'm gonna deliver, I'm gonna fight the witchard.
I'm going to take care of Clary my name, and I look forward to doing that.
And Congressman Santos spoke outside a federal courthouse on Long Island after posting a half million dollar bond. The thirteen count indictment accuses Santos of using campaign donations for his personal benefit, applying for jobless benefits while he was working during the pandemic, and lying to the House of Representatives.
Let's turn the markets now, Karen. We're watching shares of Disney this morning. They're down more than five percent. Profit was in line with estimates, but the company's streaming service, Disney Plus, lost subscribers for the second straight quarter. Geeta Ronganathan covers Disney for Bloomberg Intelligence.
The subscriber loss is a little bit concerning. We do know that they implemented a forty percent price hike on their Disney Plus service towards the end of last year, so it's going to be interesting to see whether it was the churn that kind of cossed that subscriber loss.
Keita Ronganathan with Bloomberg Intelligence says paid subscriptions to this d Plus fell below one hundred and fifty eight million, analysts that expected just over one hundred and sixty three million.
Melana Economic Front today, Nathan, we will get our second reading on inflation in as many days.
This time, it's day.
On April's producer prices, we get a preview from Bloomberg's Michael McKee.
A rebound is forecast after producer prices unexpectedly fell in March. The drop didn't lead to a fall in consumer prices, which rose during April. The two series don't directly translate, as processing, transportation, and other middleman costs affect what consumers pay.
That said, a small increase in wholesale prices in April would still leave headline and core PPI inflation lower for the year, a trend that would be a good sign at least that the Fed is on the right track and its efforts to bring down inflation, although today's report likely will have no impact on their next policy decision in June. Michael McKee Bloomberg Daybreak.
No Mike Thanks. In Europe, the Bank of England set to raise interest rates by a quarter point today. The move would take the UK's base ate to its highest level since two thousand and eight. The Bloomberg UK correspondent Lizzie Burden says, we are not expecting a unanimous decision from the Central Bank, and.
We are expecting a quarter point height to four point five percent, but there is going to be a vote split on the committee. Economists reckon it'll be the same as last time, seven to two, because you've got doves like Silvana ten Rairo saying to be a hawk right now is like being a fool in the shower.
Time out to take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael By.
Good Morning, Michael, Good morning, Nathan. New York Mayor Eric Adams is calling for more mental health services following the chokehold death of a homeless man on a city subway train. Authority s Jordan Neely had a history of mental illness before he was choked to death allegedly by a Marine veteran. Daniel Penny says Neely was acting aggressively in the subway car.
Mayor Adams Jordan Neely did not deserve to die, and all of us must work together to do more for brothers and sisters struggling with serious mental illness.
Mayor Adams says the circumstances surrounding Neely's death are still being investigated. California Democratic Senator Dianne Feinstein appeared on the Senate floor and voted on measures. The oldest serving US senator returned to the Capitol in a wheelchair as she continues to recover from shingles. Her absence has been a problem for Democrats who need her votes on the Judiciary
Committee to confirm judicial nominees. Peru's government will allow the extradition to the US of the prime suspect in the unsolved two thousand and five disappearance of American student Natalie Holloway to Aruba. Dutch citizen Jordan van der Slut wi a faced trial for alleged extortion and wire fraud charges stemming from the Holloway case. Van der Slute is currently serving a twenty eight year sentence in Peru for the murder of a young Peruvian woman. It is a growing
problem for hospitals namesationwide cyber attacks. Experts say the number of attacks has doubled since twenty sixteen and is driving up the cost of medical care. For twenty eight days, the University of Vermont Medical Center was on the business end of a ransomware attack in twenty twenty. Doctor Stephen Leffler, president of UVM Medical Center.
We've had three years of COVID. This was much harder by a factor of ten. There were people that were scheduled for staging cancer operations, and we had to make a decision should we do it? And we did them when it was appropriate. Some we're able to delay.
Doctor Leffler says. Thirteen hundred hospital servers and five thousand computers had to be wiped. A job so big, Vermont's governor called in the National Guard. She played Bobby Spencer on the longtime ABC soap General Hospital.
I have a younger.
I tossed a picture of Margaret Ritis all over you.
Jackie Zeman has died at age seventy. Global News twenty four hours a day, powered by more than twenty seven hundred journalist nailists in over one hundred and twenty countries. I'm Michael Barr. This is Bloomberg ninth.
Thanks Michael. Time now for the Bloomberg Sports update with John Stanshaller.
All right, Nathan long way to go to come back and win the series, but the Knicks and their fans did not want to see the season end on the garden floor. In Game five didn't look great early they heat went up by ten. Then a good Nick finish the first half.
Seconds Randal pushing, crowd rising feats fire's the three knocks it down with point six to go cash out. The file drives the lay play up with the bust or dish, and that's.
Gonna do it.
The first half of the.
Books ending with a randall three Knicks by three at fifty to forty seven, took Game five.
On ESPN New York.
Knicks then had an eighteen to two run third quarter, went up by nineteen. Sure enough, Miami rallied cut it down to two. Nicks held on one thirteen, one oh two Jalen Bruns and carried them, played all forty eight minutes, scored thirty eight points, and the Knicks lived to play another day Tomorrow night. Game six in Miami. Golden State did the same same thing one Game five at home, now needing two more Team six with the Lakers tomorrow in LA Sixers and Nuggets own three two leagus pair
of Game six is tonight. The NBA has iired retired legendary Duke coach Mike Skiesheski is a special advisor for operations. The Heat not the only eight seed from South Florida that was last night trying to advance to the conference final. The Panthers had lost in April twenty third. Going for a sweep, Toronto stayed alive, winning two to one. Edmonton beat Vegas. The Devils faced elimination tonight, GEAM five at Carolina.
Justin Verlanders first win as a met two to one at Cincinnati, the Yankees first series sweep, eleven three rout of lowly open Tonight at the Stadium, the start of a big four game series with Tampa Bay. The Giants learned their game at Philadelphia. We'll be on Christmas and the Jets will host Miami on Black Friday. John Stashow at Bloomberg.
Sports Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on SiriusXM, the Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. The fight over the debt ceiling in the US is now getting international attention. Pressure is building on the White House in Congress to come to an agreement. Treasury Secretary Janet Yellen is in Japan, warning a default on US obligations would be unthinkable.
America should never default. It would be tremendously economically and financially damaging.
Secretary Yellen spoke ahead of the G seven Finance minister summit in Japan. Let's bring in Julie Norman once again for more on the debt ceiling. FY Julie's co director of the Center on US Politics at University College London. Good morning, Julie. The Treasury Secretary is saying that if the US does flirt with default, it would undermine America's international standing effect national security. Does that add any further pressure on lawmakers back in Washington?
Good morning, Nathan. I wish I could say that yes it would, But honestly, you know, Yellen's statements, as important as they are, are things that are hopefully well known to everyone involved in this debate already, that the states of this are extremely high, not only for the United States, but indeed for the world's economy, for the US's sense of leadership within that, and for global market. So I don't think she's saying anything that's a surprise to anyone.
It is important that she is saying this at the G seven, But what's really going to matter is what is hashed out in Washington, and unfortunately we're still not seeing much more movement there.
Are you surprised that the Treasury Secretary is not in Washington right now when we are about three weeks from the x state that she set.
Well, I mean the Jisuban Finance meeting I think is important as well, and you know it's it's again a place where US leadership on economic issues is central, and so it's important for her to be there, I think as well. And look, Yellen, I think was sounding the alarmed bell was about this, you know, months and day advance. She has been a very vocal advocate for trying to
get this worked out from the very beginning. So whether she's making comments you know, from Asia or in the US right now, I don't think it's going to make or break the issue. But the important thing is that she's weighing in and she has been doing that consistently.
And now we're hearing former President Donald Trump way in as well the CNN town hall last night saying Republicans should go for default if they don't get deep spending cuts. What does that add to this.
Julie, Yeah, Well, unfortunately, I think it does give a bit more cover to representatives in the House who want to just double down on this. It makes it a bit harder, I think for McCarthy to, even if he was able to negotiate some kind of agreement with Biden, which is very very far down the road, the idea that he could get everyone in his caucus on board. With Trump saying things like this, it just makes it
that much harder. So I do think it muddies things even further when Trump is weighing in, and you know, it rallies base members who may not have been following this issue before. But when Trump starts saying things, people often pay attention and start pressuring that way.
Does it get the attention of the people that we're told are negotiating behind the scenes at the staff level to try to come to some kind of middle ground.
To a point, honestly, I think those who are at the staff level actually do want to get some kind of deal through. They are very aware of what the stakes are, and I do think the four congressional leaders and Biden who are meeting are all very well aware,
but they're all very well aware of the politics around them. Also, I think Biden has learned and perhaps overlearned the lessons from the twenty eleven negotiations and is a bit wary of negotiating with House seeker who just doesn't think has the leverage to push through any kind of negotiated settlement. They don't want to eat big spending cuts like the
Obama administration did. But at the same time, I think Biden has also taking political hit by looking like he's not negotiating good faith or being willing to have even a bipartisan conversation.
And this all sets u us up for the second round of talks coming up tomorrow. Do you think there's going to be any further progress to come out of the latest discussions? So you got about a minute left here.
Yeah, I wish I could say yes, My sense of this is still going to be a little bit more drawn out than that. I think the most we can hope for is some kind of mini agreements with that would allow for an extension for more extended negotiations to
go on. What I think we see Biden and Democrats doing now is trying to see if they can get some modern Republicans in the House would maybe vote along with a Democrat bill that would be more of a clean lift, and they seem to still want to see where they can get there before they make too many concessions. So again important is always that they're meeting the sense of a breakthrough. I don't see it happening tomorrow, but we'll see what they say.
This is Bloomberg day Break Today, your morning brief on the story's making news from Wall Street to Washington and beyond.
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I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg Daybreak