i'm lisa mateo.tanley, old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. >> this is 12 reports in a row that wall street has been surprised to the upside. maybe you should change your model a little bit. that is 12 in a row and has never happened according to the chart i saw today. this is a very tight labor market and will take a while to cool it off and i think we have to be patient on that dimension. jonathan: jim bullard of the st. louis fed your this is the conversation we were having with mike mckee last week. we have had upside surprise after upside surprise going all the way back to last april for the march payrolls report of 2022. on the day, the jobs report, a series of upside surprises. tom: that was the perfect sot to play. what if we get a market that reacts to a bullish fed?

i am lisa mateo.gress on debt limit talks, president biden and congressional leaders had back to the drawing board on friday for another meeting to try to everett a u.s. default. the president calls tuesday's conversation productive but house speaker kevin mccarthy said he did not see any movement. the u.s. announced a $1.2 billion package to bolster ukraine's air defenses and ammunition stocks. it includes satellite imagery services and equipment to integrate western systems. the word came after russia's president vladimir putin vowed to press on to victory in the war. wages are rising fast across england and are finally catching up to inflation. a rose 10% in the past year for those taking new jobs. that's according to data posted. figures point to a labor market that remains red-hot. they doubled down on prime minister rishi sunak's vowed to cut inflation and a half this year. xi jinping's latest cracked is focusing on experts hired by ford hedge funds and ceo's. it's an attempt to lure foreign cap

from new york, this is bloomberg. ♪ lisa: keeping you up-to-date, i am lisa mateo.ng next week on the debt limit. the treasury department warned a potential default could come sooner than expected. the president will meet with congressional leaders. the house speaker said he will not extend the debt limit unless there are trillions in cuts to the budget. underlying inflation in the euro area declined for the first time in 10 months. consumer prices rose 5.6% from a year ago in april. that backs the case for the ecb to slow its most aggressive interest rate hike campaign this week. the white house says russia has suffered or than 100,000 casualties since december -- more than 100,000 casualties since december, including 20,000 dead. the commander of the ukraine ground forces says they have pushed back forces. pfizer beat first quarter estimates thanks to the demand for its pandemic products. the covid vaccine and antiviral face pressure as infections are waning. that was half of the more than 100 per's -- $100 million of revenue last year. global news powered by more

i'm lisa mateo. president biden and kevin mccarthy postpone their meeting on the debt limit set for the day. it delayed signals that progress had been made between staffers aimed at averting a catastrophic default. mccarthy says the president will meet with him and other leaders next week. house republicans passed a border security package. it would ensure fewer thinkers -- people could claim asylum and a lot of migrants in detention facilities. there is no chance of passing in the democratic-controlled senate. the bill passage came on the same day that border restrictions ended, ensuring an increase in migrant rivals. twitter appears to be getting a new chief executive. there are multiple reports that they are hiring global partnerships. linda? reno joined the company in 2011 after two decades at 2 -- turner broadcasting. musk will become the chief technologist. the founder of the softbank group is now personally on the hook for about five point $2 billion on side deals he set off at the company. th

lisa m.: keeping you up-to-date with news from around the world, i'm lisa mateo.nt hangs in the balance as he looks ahead to a runoff election in two weeks. early results show ardo on a lead of 2 million vote -- show erdogan with a lead of 2 million votes, which is not enough to avoid a runoff. valletta mayor zelenskyy meets with prime minister rishi sunak --president valletta mayor zelenskyy meets with prime minister rishi sunak today. the european commission has significantly raised its outlook for european inflation. it forecasts price growth of 2.8% in 2024. economic growth forecasts were also increased. i'm lisa mateo and this is bloomberg. ♪ he snores like an angry rhino you've never heard an angry rhino baby, i hear one every night. every night. okay. i'll work on that. save 50% on the sleep number limited edition smart bed. plus, free home delivery when you add an adjustable base. only at sleep number. >> there are clearly some signs that the inflationary dynamic is beginning to change. from an overall level it is moderating downwards, but inside that infl

i am lisa mateo. this is bloomberg. ♪ mmmm, your morning coffee hot delicious comforting.r stomach might not feel so good. if that sounds like you replace your afternoon cup with 5-hour energy. it's perfect for when you're feeling coffeed-out. coffee in the morning... 5-hour energy after. your stomach will thank you. discover 5-hour energy. ♪♪ >> you have to look at the amount of money being spent on content by the companies. from disney's point of view you have a learning curve. lisa: that was mario gabelli yesterday. disney shares lower five point 5% after a disappointing read on subscribers. is that a shock that people are not setting up as quickly? tom: i am briefed on this by paul sweeney who was world-famous on this. can you come out in february to some island in the caribbean where we will brief you? that was his life. i get a huge advantage of saving this come. i just go back to the word profit. where is the beef? where is the profit? i do not observe it. lisa: that is something all of the streaming server -- august rebate has struggled with -- all of these to reba

i am lisa mateo.ed 100k with godaddy was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest transaction fees and keep more of what you make. start saving today at godaddy.com >> if you get a weaker number, i think the market is already under a recession alert. that starts to flash a lot more if the data is weaker. i would highlight anything above 85,000 or 90,000 is above trend. it tells you how difficult the situation is for the fed and a market hoping for fed relief, for a quick fed cut that is not happening. jonathan: priya misra joining us from td in the last hour. looking ahead to payrolls, looking for a number that may look like 180 5000. that is the median estimate in our survey for the month of april. there is the price action on the s&p 500. we have been positive all morning. we are positive by 0.7%. helped out by apple which is trading up by 2.4%. bond market yields are higher by two basis points. on the 10 year up to basis points. at

i am lisa mateo.ual profit forecast after posting better-than-expected earnings in the first quarter. comparable sales easily beat wall street estimates. walmart expects shoppers to remain under pressure this year. president biden is in japan for the group of seven summit. friday in hiroshima, leaders have a number of challenges, including how to enlist nations outside of the group as many countries resisted sanctions on russia due to pressures on their own economies. there's also the question of how to handle china, which is perceived economic coercion. china's president, xi jinping, is holding his own summit. the two day china summit will a some of the leaders of cause asked on, turkmenistan, and others. it is his way of reminding the g7 of china's influence outside of the u.s.-led world order. the state of montana has now banned tiktok. that sets up the first legal and logistical test for broader efforts in the u.s. to restrict the widely popular sharing app. the montana law prohibits app stores fr

i'm lisa mateo. this is bloomberg. ♪ good night! hey corporate types.r. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ >> if inflation stays sticky or it comes down because we enter a nontrivial recession, it is equities that i think are a scary place. they are not priced consistently for bonds. we will find out who is right in the next year. tom: cliff of a qr speaking with david rubenstein. you can watch the full conversation with mr. asness with david rubenstein tonight at 9:00 p.m.. i cannot say enough about this, folks. cliff is one of the early graduates of a huge double degree program at university of pennsylvania in computer science and one of the sharpest guys out there, whether you agree or disagree with him read serious conversation. that is what we like to do with damian sassower our always interest

lisa: keeping you up-to-date with the news around the world, i'm lisa mateo. a u.s.t a selective decoupling is taking place, from former cia director -- who spoke with john micklethwait indo hall. -- in doha. >> we have seen distinct limits. i really don't think president she does not see -- president xi jinping does not see russia as an equal. and he went to moscow and talked with putin, he did not get what he wanted. it is not a relationship between two equals. lisa: the government of the state of qatar is the underwriter of the economic forum powered by bloomberg. hong kong leader joining state leaders in blessing pacific airways over an incident where flight attendants were making remarks about mainland chinese passengers. the flagship airline said it would investigate the incident before announcing it had fired three flight attendants. local news powered by more than 2700 journalists and analysts in over 120 countries, i am lisa mateo, this is bloomberg. ♪ >> we will be interviewing ron desantis. he has an announcement to make. it is the first time this is happe

i am lisa mateo.berg. ♪ >> i think the fact the fed has raised rates by such a large degree so quickly, we really don't understand yet the full ramifications of those rate increases. now, if you take a potential or slow, ongoing banking crisis in place that on top of a slowing economy, i have to say i'm very concerned at the prospect of future rate increases. i don't understand why we would not just pause now. jonathon: everybody is piling in. that was brendan boyle from surveying you. they are about to hit pause after they hiked 25 basis points anyway. that is the overwhelming consensus view on wall street right now. looking at the price action going into that fed decision paired we look like this on the s&p. we are positive 0.2 percent. apple earnings after the close tomorrow. then, payrolls on friday. the ecb rate decision is somewhere in between. 1.10 on the euro-dollar. yields moved aggressively lower yesterday. again this morning, just a little bit. your 10-year 3.3994. tom: a lot of stories and

i'm lisa mateo and this is bloomberg.to you. equity turning about positive in the last 10 minutes. 6% let's see if we can add to the rally last week on the nasdaq too. tom: we have to see. the market is moving and i'm sorry i see a little lift here and to me it lifted off of the takeout news. including chevron. jonathan: did chevron get the deal done? tom: no question. i mean, that's just all there is to it. i'm flustered. i'm a father in america. jonathan: what are you researching? tom: the middle child goes over to europe opinion realize they are in school so on the weekend they can travel places and have the life i never had and you have the typical dad panic. it's a ton of money to fly how about the dublin $26, that's one way. you are all in $52, $60. jonathan: i used to pfeiffer 15 quid, 15 pounds. the man who made it happen is responsible for my vacations in europe as a child. michael o'leary joins us right now. it's not bad is it? michael, tell me this is that the future still? or do things change? >> it is the fut

i'm lisa mateo. this is bloomberg. alix: thanks. what is morgan without gorman? 1.5%. gerard cassidy joins now. $80 price target. what's morgan without gorman? gerard: certainly you will see the stock trade-off because gorman has done a good job turning morgan around. these diversified the business and has been rewarded with a better than average valuation. this news, which is not shocking, we all knew when they realigned executives 18 months ago, his retirement day was coming. guy: somebody is going to take over. 30 you think? -- who do you think it's going to be? gerard: when they reshuffled senior management, the two individuals were made copresident. they are the heir apparents. it is a horserace. we don't know who will take over. the diversity and shifting of the business over the last 20 years diversifying into the wealth management space has been a success story. it's hard to say which one will be chosen. alix: why do you think the stock is down? maybe unfair. why do you think the market is having a negative reaction? gerard: his leadership has been so str

i'm lisa mateo.berg. ♪ you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart! >> the nature of the presidency is addressing many critical matters all at once. i am confident we will continue to make progress toward avoiding default. >> the president agreed to appointing a couple people from his administration to sit down and negotiate the regulations with my team. i found that to be productive we have a lot of work to do in a short amount of time. it is not that difficult to get to an agreement. jonathan: constructive language used by president biden and house speaker kevin mccarthy area concerning the debt ceiling meeti

with the first word, i am lisa mateo. president biden is urging his negotiators to keep pursuing a debt limit deal. in a call from japan where he is attending g7 cement, the president said he is confident congress will act in time and avoid default. house speaker mccarthy indicated both sides it may reach an agreement as soon as this weekend. ukraine president zielinski will travel to japan to join g7 leaders in person. officials added an extra session to the summit schedule on sunday to accommodate his schedule. he visited european capitals asking for more weapons. u.s. and taiwan have agreed to increase their trade relationship. it is the first tangible result from initiative the face of strong opposition from china. taiwan initiative is for formal trade agreement and does not address issues such as tariffs. it because the outlook for a visit to the u.s. next week by chinese commerce official. republican senator tim scott reportedly airing tv adverts as iu and new hampshire -- in iowa and new hampshire and plans an anno

i'm lisa mateo. ♪ >> the staff is very engaged. i would characterize the engagement as serious and constructive. when i talk to ceos and business leaders around the country they tell me things are going well. >> we are a couple weeks away but when we think about the house and senate, we are nowhere near any answers. there is no move. jonathan: kammerer and contrast -- compare and contrast. they are saying very different things about travel and how it is going with the talks between the speaker and the president. that will be around 3:00 eastern time today. and we have a flavor of what is happening in retail from home depot earlier cutting their outlook. the stock is -3.2%. trading at 279. in the broad market, yields are coming in as well. on the 10 year we are down by two basis points. tom: we see color action -- correction but a lot of the correction is wrong. the lows outperformed home depot --lowes outperformed home depot. i would not have guessed that. we are in washington trying to take a differ

dani: lisa mateo ahead of today's u.s. pce data release.out some european corporate news. bloomberg has learned that ubs and the swiss government have an -- have not reached consensus on the exact terms of a state guarantee for the takeover. this may delay ubs' takeover credit suisse -- takeover of credit suisse. what are the details being debated here? >> well, the state has said that it will cover up to 9 billion francs, that's a little more than $10 billion, of losses which ubs might in curve from winding down parts of credit suisse's business. the law's protection agreement has not been signed so far. the negotiations about that are ongoing but looks like we have not seen a signature and the government has said that there needs to be clearly about the terms of this agreement before the deal can officially close and we see these talks drag. dani: what is the timeline for this? >> the government did not give a timeline at all. they said we are negotiating, we are not saying any deadlines, it is just ongoing. they are not giving any sort o

i'm lisa mateo.is bloomberg. ♪ >> the playbook is not that different across different central banks. in many places it looks like disinflation is progressing slowly in the central banks went to pause or step down the pace of tightening they have been delivering. jonathan: that was the head of global fx and interest rates and research at golden sex joining us last week -- goldman sachs joining us last week. equity futures totally unchanged on the s&p. yields higher by three basis points on a 10 year, we .47 -- let's call it 3.46. we have a deal from j.p. morgan and first public, making a payment of $10.6 billion to the fdic or first republic. there will be a call -- for first republic. there will be a call later. lisa: i imagine with the weekend was like for the people at jp morgan and the fdic we had to go through the paperwork. 800 employees revolved in first republic diligence and they all lost their weekends and were basically up all night as they try to figure out what they could be missing. with

this is bloomberg i am lisa mateo and this is bloomberg.y was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com >> you are going to see an increase in anxiety as balances run low end if there is an accidental default there will be a drop in stock prices and a decline in credit spreads. 12 months from now it won't be a major economic event but it could be jarring for the markets. lisa: we have the market is saying you will not default and washington is saying get more concern. robert tip from pgm mixed -- fixed income. this emissive backdrop of resilience when it comes to discretionary spending. no area defines out better than airlines. after the bell we get news on some of these shares. there's a big question underpinning air travel which is how long can prices keep searching well beyond inflation. year-over-year inflation came in at 27.4% for flights year-ov

i am lisa mateo, this is bloomberg. ♪ ya! save 50% on the sleep number limited edition smart bed.inancing and free home delivery when you add any base. only at sleep number. if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee, even if it received ppp, and all it takes is eight minutes to get started. then we'll work with you to fill out your forms and submit the application; that easy. and if your business doesn't get paid, we don't get paid. getrefunds.com has helped businesses like yours claim over $2 billion but it's only available for a limited time. go to getrefunds.com, powered by innovation refunds. [office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo. >> it is ok to be in cash for now but if you are thinking long-term, you need to be prepared for that time where you need to shift assets but that is no

i am lisa mateo and this is bloomberg. ♪ advancing flight for future generations. ♪ welcome to a newf flight. but by the third or fourth cup, your stomach might not feel so good. if that sounds like you replace your afternoon cup with 5-hour energy. it's perfect for when you're feeling coffeed-out. coffee in the morning... 5-hour energy after. your stomach will thank you. discover 5-hour energy. ♪♪ >> they want to spend $30 billion more than this year. i will not put a bill on the floor that spends more money next year than this year. >> house republicans are determined to either extract deep, painful cuts that will hurt the health, safety, and well-being of everyday americans or crash the economy. jonathan: so, things are going really well. speaking to foxbusiness as the war of words continues on the debt ceiling. i reality check overnight warning that the u.s. credit rating may be at risk. fitch still expects a resolution to the debt limit before the x -date but risks have risen that the debt limit will not be raised or suspended before the x -date and the government could miss pay

i'm lisa mateo.s is the lexus variety of electrification... inspired by, created for and powered by you. ♪ >> no one should assume that the fed could impact -- eject the economy from short and long-term effects of a failure to pay our bills on time. it is essential that the debt ceiling we raise, failure to do that would be unprecedented. we would be in uncharted territory and the consequences to the economy would be highly uncertain and could be quite averse. >> s the warning from the federal chair. yesterday in the news conference following hiking interest rates by 25 basis points, and signaling there was a discussion on the pause, but not a decision on a pause. wait for that. june 14. we have set a few times, who knows where we are onto her team and how many banks will fail between now and then. >> that's an overlay over the debt ceiling debate. that has a june date on it, and in the zeitgeist. it's a really good point. it's two overlay stories that are calendar items up to june. i don't think tha

lisa: we clouds and today more sunshine. there will be patchy fog along the san mateo coast. live doppler 7 showing you that we have a system offshore that we are not going to worry about until next week. 53akland 54 a word. as you step outside, a little cooler this morning in the north bay but milder elsewhere. there is a look at our roof camera. clouds start out. 50's low 60's by noontime. the coast stays in the 50's. near average but a few degrees below average along the bay and along the coastline and breezy winds. jobina: we do have a commuter alert in effect for the capital corridor that will impact the martinez station. it is closed due to the hazmat situation we talked about yesterday. trains at the martinez station will now stop near old station depot and used to ferry street road crossing until further notice. live look outside and emeryville with 80. headlights westbound, and blocking issues looking good. we wrap up with a live look at oakland showing you are hundred 80 the coliseum camera. kumasi: all eyes are going to be on game five of the lakers-warriors playof

lisa. we will wait for the nice, warm weather. abc7 news streaming 24/7. get the bay area streaming tv app and join us whenever you want wherever you are. we'll be right back. alex! mateo're growing in california? -yup, socal, norcal... -monterey? -all day. -a branch in ventura? that's for sure-ah. atms in fresno? fres-yes. encinitas? yes, indeed-us. anaheim? big time. more guacamole? i'm on a roll-ay. how about you? i'm just visiting. u.s. bank. ranked #1 in customer satisfaction with retail banking in california by j.d. power. >> giants legend turned 92 years old today. he may not have the eyesight and mobility he had in his prime. but he's still very active. he coordinates business deals, overseas his foundation, and willie mays flowers program that supports underprivileged youth. he was featured in an hbo documentary. he had his number 24 retired by the mets and had youth feels enrichment dedicated to him. people setting off to explore san francisco and all of its charming stairs with the first ever stair challenge. volunteers mapped out a route for the scenic journey. anyone could run in it about a one hour walk. we met with a little celebration at the end. procee

lisa: not yet. we will break out to mostly sunny skies, but partly cloudy here. 53 in oakland. 50 in san jose. there are the clouds on the peninsula. we will stay with the san mateoe. re is the plan. i 11:00, we are mostly sunny. low 60's inland. by 2:00, upper 60's. cool conditions, breezy wind at the coast. about 62 in oakland today, with fog tonight. we will talk about the warm up. jobina: good morning. we are going to start with a live picture from the san mateo bridge. for the most part, blocking issues have cleared, what you are looking at heavy traffic in a couple areas, the usual spots. the commuter alert we want to talk about his with capitol corridor. martina station is closed due to a hazmat situation that started yesterday. trains at the martinez station stopped near old station depot and use the ferry street road crossing until further notice. kumasi: governor gavin newsom is declining to publicly say whether he srtraon pments to blk californians. over the weekend, the reparations task force approved recommendations which could cost billions of dollars to address disparities in health care, housing, and policing. the task force has been looking at ho