manus?us: tom, with all the angst in the world, let's say you do break something with the debt ceiling, what would it do to global growth? have a look at the oil market. three weeks of losses, down 10%, and then back. they hit the button and we are all going to vienna. that only ever happens pretty much when there is a piece of theater that the royal prince wants to deliver. what goes through my mind is what kind of cut might they deliver? maybe they won't, but that's the mood, and it? tom: the surprise cuts did not work ultimately because all of the gains have been wiped out and more. has the selloff in oil been overdone? ed moss from citigroup saying there are now tighter inventories. the selloff was far greater than what market bounces are showing. that is from ed moss at citigroup. others pointing out the fact that china is pulling and a lack of crude in terms of shipments. the travel sector is getting back on its feet even as concerns around the housing market and manufacturing and expo

manus: manus: this is "bloomberg daybreak: europe". manus cranny in dubai with dani burger in london hq. dani: china's manufacturing slump deepens in may, denting the nation's recovery. global stocks and commodities sell off. the house plans devoted a on the debt ceiling deal as republican hardliners voice their objections for concessions granted by mccarthy. jamie dimon, the jp morgan ceo, says ukraine is the biggest global risk today and his bank is in china for the long haul despite heightened political tensions. >> it will take years for this thing to take place but it won't be a decoupling. and the world will go on. manus: there is a lot more from jamie dimon to come. two for one. we are better than waitrose. dani: i am into this moving my mouth and you speak for me. i would be happy to do a show like that. it would be better than me speaking. let's get into china because jamie dimon is bullish on it. this market action is painful on that china data. manus: it is pervasive across the global market you have got the currency under p

manus: thank you very much. celebration in nigeria as he takes to the seats but will he deliver. a good snapshot of risk. a soggy bottom dollar is the call from hsbc. the dollar is down. that haven dissipates as a debt ceiling is done. ♪ these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime.

christian: thank you, manus. manus: dani lives in west london.ani: i need you to come over and be my garden please. christian: yes, i will bring the lawn more. dani: perfect. manus: fx calls and a little bit of hedge trimming. christian, thank you very much, head of fixed income for affects union investment. we had the announcement from ubs. the leadership team is formed for the merger with credit suisse. it will be completed in the next few weeks. the details to come on bloomberg. ♪ dani: let's get your first word news. standing by his adrian wong in hong kong. >> senate republican leader mitch mcconnell says he won't come to president biden's rescue on the u.s. debt limit by breaking the partisan deadlock. he said he told the president privately it was up to him and house speaker kevin mccarthy to find a solution. both sides face pressure had a meeting later today between the president and congressional leaders. meanwhile, china's export growth slowed last month while imports plummeted adding to pressures on his economic recovery. according to

manus: what will save us?e are going into the stagflation world where growth some people assume will collapse , not collapse but mildly drop. we find it tougher to get from four to two then we did from nine to four. what gives you a spirit of hope? you want to be longer with high-yield on a yield differential. where is the most dirty equity short so to speak? wouter: we definitely think that on the em side of things the risks are the greatest. we do like the fact that china is recovering and reopening but we don't think it will surprise to the upside. from the equity market perspective, a real challenge from the way the government is asserting itself in corporate management. that part of the equity market specter we are cautious on. when we look beyond the equity market outlook, for us it's all about seeing an economic picture that even though there are headwinds in place isn't fundamentally broken. there is still a strong labor market out there which does not mean there is a fair amount of payroll out there a

manus: indeed. the conundrum, nicely put, pass the parcel, from policymakers to supermarkets and supermarkets to the consumer. but there's really we one person that loses in the end, the consumer. thank you very much. we will see you tomorrow. bloomberg markets: europe is next. good morning. ♪ when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block! hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price for 2 lines of unlimited. just $30 a line per month. i should get paid more for this. you get paid when you win. from xfinity. home of the 10g network. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime. hi, i'm katie, i've lost 110 pounds on golo in just over a year. golo is differe

manus: absolutely. look at that quote from elon musk, here's the thing, deutsche bank, one point 4 billion euros in cost to be saved. they will tank 40% of their square foot. that is the best line i've seen in a long time about work from home. what we will leave it there. there could be more crack in the credit facade to come. there are no crack in the luxury aside. i got one for you, it's not from burberry. we will talk about burberry and the numbers they expect. will they follow suit with louis vuitton and be triumphant in delivery of the glowing luxur bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime. these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need

manus: very good morning.look at it, i am internationally displaced, i lived there for 20 years. there was an open dialogue when i started. what is macron doing in france that needs to be done? what is he doing right that is not being done in london? nicholas: i do not want to draw to me perils between london and paris. one of the risks that i would establish and we have macron with a very singular vision about what he wants to do in france but is not really being embraced by the people of france. one thing you can say about the city of london, it has been around for a thousand years. the city has always been there. hopefully it always will. macron has turned the dial on the creation of wealth and recognizing the value. he was the first to go to china, he took a delegation -- delegation of 100 businesses. he puts business as a priority. need to do that in the u.k. much more. dani: you say you see progress on both months. are you confident they will do that, either party? nicholas: yes. we are consulting with a

manus: this is "bloomberg daybreak: europe". i'm manus cranny in dubai.ackenzie at london hq on the stories setting your agenda. tom: pacwest is in talks with potential partners and investors. the lender is the latest bank to find itself at the center of the u.s. regional banking turmoil. stocks and futures are mixed after the fed signals a pause. fresh turmoil in the u.s. regional banking sector does weigh on sentiment. >> is going to be an ongoing assessment. we will be data to accumulate on that. an assessment would mean we think we have reached that point. it is not possible to say that with confidence right now. tom: the ecb is up next, with market seeing a downshift to a 25 basis point hike, on signs inflation may be topping out. manus: we have a host of german names breaking across the tape. volkswagen goes red. tom, it is a big top line for them take it away. tom: we are waiting for infineon, the chipmaker, that ties into the auto sector. let me bring up vw, the lines crossing, one of the world's largest automakers, the china story will be consequ

manus, good morning to you. interested if we get a boost to european stocks as we get positive earnings coming through. dani: -- manus: we are too geared to the downside if the recession does not arrive. the luxury market is doing a buyback, 10 million shares. just opening up the press release here, 10 million shares will be bought back. i see more van cleave. i do not have any van cleave. 10 million shares, 1.7% of the share capital. it is pretty iconic. we are waiting for the rest of the numbers. do you like van cleave? dani: i don't know if i'm allowed to buzz market, but i do like van cleave. i need to be smart with my money . these numbers are interesting, operating profit beat too. the chinese story is not as robust on a macro scale. we have seen the shares outperform. manus: let's break some of it down. japan penciled in a ramp-up of 44%, and japan comes in at a rise of 56%. that shows you the kind of turnaround. there is the european stock market open but we are talking about the european and u.s. equiti

manus cranny is in dubai. manus: data doldrums. china consumer spending and industrial activity disappointed in april, calling into question the strength of economic activity. treasury secretary yellen says the u.s. is already paying for the debt limit stalemate. house speaker mccarthy says leaders are nowhere near a deal. oil gains a second day as the u.s. says it will buy 3 million barrels of crude to refill is depleted strategic reserve. very good morning. the death knell's are being banged into the risk-taking this morning, but my favorite quote of the day goes to jordan bruce at atq >> the macro environment is exceptionally high right now, and the best defense against that endurance is diversification. good morning, risk. dani: i am not free of risk, thank you very much. these have a special place in my heart. it is telling of this market. did you know, according to deutsche bank, discretionary allocation to this equity market is at a one-year low. there is so much uncertainty, only the euros and aqrs of the world are currentl

manus: s.rt, not a great number of the fed have been through the last cycle in banking and we are around to live through it and understand what the station of risk looks and feels like. thank you, carl. has lived through a cycle or two. let's get your business flash. >> disney is closing a luxury hotel in florida amid a high-profile right to the governor ron desantis. the company is also ditching plans to relocate 2000 staff from california to a new $800 million amp is. bloomberg has learned that britain is close to winning a major battery plant for electric vehicles. the indian parent of jaguar land rover is set to be leaning towards choosing it over spain. they would make batteries for the company's planned range of fully electric models. the time reports that the government offered 500 million pounds to relocate in the u.k.. a group of tiktok creators and users are suing montana after it became the first u.s. state to ban the app. the lawsuit says the ban violates first amended rights to fre

manus: i love a bit of quinoa.bring in abby again, save us. >> a straight black coffee, although i'm not entirely sure if it delivers to the office in berlin. as well as the uber eats were also seeing they have forced a concern on lyft as well when it comes to bringing people back to the platform. that is also a big deal because essentially lyft has now got a new ceo, it's done the thing we've seen a lot of tech companies do come have to lay off staff and call their other stuff back to the office. what i'm interested in seeing going forward is if lyft says that what they are going to do to bring back there consumers is drive prices down again, what does that mean for these banner numbers for uber going forward? they've done really well in this quarter but if they're trying to still drive down prices, we don't know what that really means for uber. manus: i can tell you one thing for free, if you come to divine, it will cost you a fortune to get an uber. this is where you live and breathe price gouging in the extreme

manus: this is "bloomberg daybreak: europe". i'm manus cranny in dubai.i burger alongside me in london. we have stubborn double-digit inflation. you are living it. outside the bank of england, will they go for the 12th interest rate hike today, even though the end of its lightning quick hiking cycle could be coming into view. she's there, it is lizzy burden, it is not raining at the bank of england. tell me, what is going to happen today? lizzy: we are expecting a quarter-point hike to 4.5%, the highest since 2008. you have markets and economists agreeing on that. i don't agree on where the future path for rates should be. when is the pause coming? that's what we're really looking out for today. we will look in the press conference, the forecast. in terms of the actual decision today, the vote split is expected to be 7-2, the same as last time because you have doves saying previous jumbo hikes have yet to take full hold. she says to be a hawk right now is like being a fool in the shower, turning on the hot tob, being too impatient for the water and gettin

manu raju is up on capitol hill. manu, i was hoping since you were there in front of the cameras for us today that that meant -- i think this is probably our strongest indicator, that you were on capitol hill for us. president and kevin mccarthy spoke. at this point if the speaker were to come out and touk alk t reporters, that would be a good sign. you tell us. >> reporter: that's right, jim. the speaker said today he would be the one to make the announcement that there is a deal. well, here we are at 8:00 p.m. eastern. he has not yet made an announcement that there is a deal. that is a sign that there is still work to be done. remember, the sticking points were significant. going into this conference call tonight was aimed for both the president and the speaker to try to resolve those final sticking points, which were major. one dealing with work requirements on the social safety net programs. democrats are furiously opposed for adding new work requirements on food stamps. they should it not should be part of the d

let's go to manu raju up on capitol hill.u, the house speaker is supposed to brief reporters in about seven minutes from now. what can you tell us from your end of things? manu, it sounds as though and i'm just basing this on my white house reporting days some of what priscilla laid out is a bit of the talking points on the democratic side maybe allay some of the fears and concerns of the house democratic caucus too much might have been given away in this negotiating process, and i suspect kevin mccarthy will have similar things to say from the republican viewpoint to sort of settle things down in his conference. what more can you tell us? >> reporter: yeah, certainly pulling the white house spin on this agreement. just to walk through a little bit of it in this fact sheet the white house put out here saying they have agreed to roll back domestic spending levels to the prior year. so currently the 2024 year. they're going to go back to 2023 according to this agreement. this will cause some concerns on the right. a lot of folk

manu raju is up on capitol hill for us.anu, just being told it's down to one issue is cold comfort. that could be the one thing that drags this thing out. what are you learning about the state of the negotiations at this hour? >> reporter: yeah, that's what i was told from a source familiar with the matter that there is one key sticking point remaining, that over imposing new work requirements on social safety net programs. this had been part of the republican bill to raise the debt ceiling that was approved back in april. democrats fierce leo pose it, arguing that it would puhurt th poor. republicans say it is important to get people who are dependent on food stamps and temporary assistance for needy families, to get them into the workforce. there's an ideological dispute that's been unable to be resolved the last several days and i am told that is still part of these negotiations. and one big reason why they have not been able to close the deal. but there is an expectation that they are making progress on a whole wide ran

manus cranny in doha. the global narrative is a confused one, trying to deal with powell, the sideshow of the debt debate in the background. i like what bank of america wrote on friday, it would be so on brent for stocks to melt up into recession and stuck them all right in for the hard landing. the bears are getting bored. clients they say are bored with the bearish narrative. you get stocks that continue to trend higher. maybe ai fuels everything. in asia, the china session, more improved tones with biden, saying relations may be thawing. that is giving a lift to the hang seng and tech stocks. s&p 500 futures unchanged. the biggest s&p short since 2000 seven, that might lend itself to some support. because asset is a move in the belly, buying bonds after cash cardio, and endorsing a pause. greenback rebounded on friday after the pboc vowed to curb speculation. the remedy -- renminbi is still moving higher. meanwhile the dollar itself higher. the u.s. looks at taking a different approach. let's get to som

manus cranny in doha. a schedule market check. mission accomplished for the central bank of new zealand, saying they are done with a hiking cycle. the kiwi dollar is down against every single currency, down significantly versus the dollar. i don't have it up for you, but believe me, it is bleeding today. the new zealand two-year yield down. its biggest drop since 2011. it is the surprise that they say they are done fighting inflation, mission accomplished, and they can start cutting rates come 2024. the rest of the global market moving in sympathy. new zealand is a small economy but they were the first to start this rate hiking cycle. hence the reaction. u.s. two-year yields dropped seven basis points. stocks had a bad day yesterday. more concerns about debt ceiling impasse are perking up today. but in general it is a good time given the debt ceiling from a to reevaluate -- debt ceiling drama to reevaluate complacent positioning. the euro stoxx had a $300 million wiped out in market cap yesterday. they continue to head lower, down

manus: everybody is digging around for news. coinbase in the united states of america? brian: this moment is an opportunity to get regulatory clarity in the united states. we are happy to do that. it is a great role to play in the industry. manus: you are going ahead -- head to head with the s.e.c. brian: we sought out regulation all over the world and trying to be proactive but there wasn't clarity. if there is no clear rulebook in the u.s. we created our own s practices. the 20% we believe are commodities that we list and there is no rulebook. i feel like we have a duty to push back and go see a caselaw that will help bring us clarity in the u.s. manus: s.e.c., what is the question you asked the ceo? brian: crypto is commodities and has some that are securities and we don't list them and we think there should be a robust, healthy market. there are stablecoins that are more like currencies and mft's. trip total will have regulators and will probably need new legislation passed and there is broad bipartisan support for that to h

manus cranny at the qatar economic forum.to the markets . if you want to look for where risk on is, it is all about nvidia. after earnings where we saw ai demand, ai processing chip demand out of this world. nvidia has had such a strong year over the ai hype, this is over $200 billion of market cap but nvidia it will add on should the price rises day about 25%. that has bled into the rest of the chip trade. that has been the trade of the year. bank of america last week called it a mini bubble, do the nvidia earnings make it a medium bubble? all of the chipmakers in asia are having a strong session, be it sk hynix or tsmc. but i want to contrast with u.s. equity futures. look at the dow. it was down about 0.2%. that just shows the contrast between the tech hype and the rest of risk markets. the rest of markets are dominated over fears of the debt ceiling. we got that fitch warning over american sovereign credit ratings. it is not an actual downgrade yet but it is a warning at this point. what is moving markets more is a fed that continues to

manu raja, you have just run into place because of a conversation with the speaker of the house, and mccarthy say to you? >> he was positive with the way that the talks are going, and the first upbeat tones from the speaker about the negotiations for first time. earlier in the week, he said not much progress, and critical with the white house for not agreeing to negotiate with them, and the white house wanted them to raise the debt without any conditions whatsoever, and ultimaly the white house has reversed course, and now engaging with talks with the white house and the speaker's top emissary here and congressman graves and the speaker, and he said that the talks are productive. the speaker wants a bill on the floor next week. he wants a deal in principle next week, and it is going to take several weeks to get through the house and the senate will take longer. he has had a conversation with chuck schumer about the process, and he said details are on the process of agreement, and there is still some angst, because some liberals do not believe that any deal that ft. would cut with kev

this is not further apart. >> manu raju, let's go to you. at the center of this entire news conference. negotiators going to the white house, the word he used was to finish the deal. i don't know whether that was deliberate or not, but it does paint an optimistic picture than we heard the last 24 hours. >> he's been signaling the talks athat they are still productive. one that can get through both chambers of commerce within a matter of days. given the fact that he's insisting on are things that democrats have not agreed to. the only indication is that there's been some change in the posture of the white house to agree on the spending cuts that he has been demanding as part of raising the national debt limit. i tried to press him about the concessions he's willing to offer. democrats want their priorities added to it as well. he said the democratic concessions that he was willing to make are one thas rejected, including work requirements and spending caps, rolling back spending levels. two areas of significant dispute with the white house un

manu, what do you think? do you think we'll get some kind of readout from the speaker on what was said in this conversation? what are you hearing at this point? >> it's very possible we could hear from the speaker tonight. he's been speaking with the reporters through most of the process. late last night he did slip out of the capitol without talking to reporters. we'll see if anything happens here. this is a significant moment. the negotiations have hit this critical time. negotiations have been going round-the-clock between the president's team and the speaker's team and they have not been able to close out a deal to fight off the first default in american history. in large part, because of the issues you've mentioned one of which is work programs for safety program. there are issues still being hammered out including how far to go in imposing spending cuts. the white house didn't want it at all as part of the national debt ceiling. republicans demanded conditions. now the white house is negotiating conditi

cnn's manu raju is with us on capitol hill right now. all right, manu.s that put things as the morning moves on? >> yeah. we are getting some backlash from the left and also some backlash from the right over this deal that was cut between the president and speaker mccarthy and really making nobody happy. democrats in particular were concerned about the white house's handling of these negotiations. the white house said it would simply raise debt limit without any conditions. ultimately were forced into a negotiation with the speaker. they agreed to include a slew of spending cuts and other provisions that democrats are simply not happy with, but they know this is the only viable option to avoid a debt default, the first-ever default in american history if the house and senate don't approve something by monday and tonight the vote is expected to take place and raise the debt ceiling until january of 2025. behind closed doors white house officials are briefering members of the democratic caucus explaining why this is the best possible deal they can get fend

we have manus cranny speaking to noel quinn. of the conversation around that surprise dividend, and the $2 billion buyback. it was a solid beat, that stock up 4%. flagging pressure an which will be in focus friday. bp is down 4% despite a beat versus estimates, but profits have slowed and they share buyback of 1.7 billion dollars is down from the previous quarter. infineon gaining 2.6%, that semiconductor maker, in terms of what is happening, ollie crook will give us an update on the ground. that stock up 2.9%. let's get the first word news. samuel: president biden called a meeting of top congressional leaders to discuss the debt limit standoff. the invitation came hours after janet yellen warned the u.s. risks running out of cash as soon as early june. since hitting the current limit of 31 point $4 trillion in january, the u.s. has been using special accounting measures to stave off a possible default. anger over president macron's pension reforms built into the streets of paris yesterday. the government says 700 80,000 people

manu, the other impending crisis, the national debt. house republicans did the same thing, passed something they knew had no chance of passing in the senate. now that president biden and speaker mccarthy have agreed to sit down with other congressional leaders, does that suggest in any way that they're closer in any way, in any measurable way to a deal? >> reporter: it does not seem like that at the moment. in fact, the two sides are still completely opposite when it comes to this issue. the democrat, the leaders on down to the rank-and-file are saying that the debt ceiling needs to be raised first before they would even consider any spending cults. republicans say there must be significant spending cuts tied to the debt ceiling increase, and that's what they'll have to discuss next week sitting down at the white house. significantly today, senate leader mitch mcconnell, someone in the past who's resolved these standoffs came up with novel ways, he says he has no plans of intervening and will let kevin mccarthy take the lead. are you ru

cnn's manu raju is here with the details. manu, walk us through what police say happened? >> yeah. a harrowing incident. in fact, i just got off the phone with the congressman himself, jerry connelly, a democrat from virginia who determined how this individual came into his office today and someone not known to the congressman and used a metal bat and attacked one of his senior aides in the head and connelly said hit one of his interns on first day on the head on the side. these injuries are serious, but not life-threatening at the moment, but this individual came to his office looking for the congressman himself. the congressman was at an event for a ribbon cutting for a food bank nearby, and was not in the office, but connolly told me that this individual had, quote, out-of-control rage, used this metal bat to damage his office, glass in his office breaking computers and including in a conference room that had lots of glass in that room, as well and just moments ago fairfax county police just wrapped up a press conference and not indicating what the motive was of this individual

. >> let's bring in manu raju.tol hill before the house ethics committee, but that's a rather toothless organization, generally speaking. this seems more significant. >> no question about it. it will be interesting to see how kevin mccarthy, the speaker, responds to this. for some time, he's not called on george santos to resign in large part because if santos were to resign, this would open up a special election in the district that joe biden carried in 2020. something that could flip to the democrats and narrow the already laze sort-thin majority, which is why i they said let's let the investigation play out. he pointed to one where you will decide on how to respond to george santos saying let's see what the ethics committee comes up with. we know the ethics committee is pressing ahead with its investigation. how long they will come to reach any sort of conclusion remains to be seen. now that he has been indicted, the question will be whether that chaungs the leadership calculation at all, whether kevin mccarthy

manu raju tracking the very latest.e it very much, manu. >>> joining us now is someone who will be weighing how to vote on what those negotiators come up with. congressman, grateful for your time tonight. so, in a normal negotiation, contract negotiation, business negotiation, it would be a good thing to get more time. what do you make of the breathing room janet yellen was just able to give the white house and the congressional negotiators? is three or four more days a good thing or in washington does it leave it on the line for everybody to criticize? >> there's a risk. but the speaker has agreed to 72 hours to review the bill in detail. and, of course, what he really has to do is sell it to the extremists in his caucus. remember, he counted on the votes of people like matt gaetz and marjorie taylor greene, some of the most extreme politicians america has ever seen, in order to get elected speaker. those are the types of people he's got to sell this deal to, and he may need extra days to do it. >> in your party, repub

manus is coming up to tell us what is in store today.is bloomberg. ♪ >> this is somewhat an issue of will and desire to not blink. the whole world is watching. i do not foresee a situation where there will be a default, but that speaks to the u.s. government paying principal and interest on a timely basis. rishaad: schwartzman talking about the u.s. debt talks. let's get to work wilbert and kurt ford "daybreak: middle east." what did you make of those comments? he seems very sanguine. manus: yes, a catastrophe that awaits us all. he is a voice of reason, is he not? he says it is a nailbiter. i think they are trading on health rather than fact, the gap is narrowing. if you listen to the rest of the interview, i would encourage everyone to do that, he talks about the gap. it is political theater. they are down to $100 billion differential on spending that can be done and a blink, then there is the supplementary payment. that can be dealt with quickly. i like the nuance in terms of what he talks about the principal and interest being paid,

. >> so right to manu raja on capitol hill. i understand that the staff level negotiators and members are back together at this moment. what does that mean? >> yeah, that is right. the negotiations are taking place right now, but there are huge obstacles ahead in order to avoid the nation's first ever debt default and to raise the $30 trillion debt limit, and if not, the government cannot pay its bills, and if so, economic calamity could ensue. the democrats and the republicans are not on the same page on a whole wide range of issues and namely on the federal cut of spending. the republicans want to pear back the spending, and the democrats are pushing back on that, and now they are trying to negotiate to find a middle ground, and there are a whole host of policy issues at play, too, and negotiators, garrett graves, who is in the meeting right now with the white house negotiators indicated to the repo reporters, that they have to find out how much the government is willing to spend, and then the rest of issues could fall into p

as manu mentioned, she had diagnosed shingles. shingles can sometimes lead to encep encephalitis, inflammation of the brain. you have several tests you'd start to do to figure that out. imaging tests, for example. eeg, electric o'encephalogramm wok a test. and even a puncture, you look at the fluid that bathes the spinal cord and brain, is the virus in there, are there indications there's swelling and inflammation around the brain. that's how you make the diagnosis. sometimes it's hard. people have fever. they may have headache. sometimes those symptoms resolve but people may be left with memory sort of difficulties. it can be challenging, jake. >> and what about ramsay hunt? what is that? >> so when someone has shingles, and a lot of people know what shingles is, typically it's a virus that you may have had chicken pox when you were a child even. the virus doesn't leave your body. it stays sort of hanging out around nerves. at some point in adult life it can get reactivated. that's shingles. if that reactivation occurs around the

manu raju, priscilla alvarez, thanks so much. appreciate it. >>> joining me now is tim birchett of tennessee. congressman, thanks for joining us. what is your sense of it right now? you're not up on capitol hill, you're in knoxville. a little bit of drive from the capitol. how confident are you that a bill will be passed before the potential deadline of june 5th? >> i'll tell you what, jim, thank you so much for having me on. in the bush administration you're always welcome at my white house. i think everybody right now is just grasping at straws with the rumors. i've been in contact with our leadership team and some of those folks. i feel like they're close to a deal but they're not quite there. i think a lot of the rumors going on are made to scare people. you have people in their 20s basically in the white house putting things out that aren't accurate and just things that they would like to see in it. i think speaker mccarthy is keeping to his word in what he said in the things that he put in there and that he'd like to keep i

. >> let's get straight to cnn's manu raju on capitol hill. manu, what's going on in this rules committee meeting right now? >> right now this is the first step in the legislative process. this committee most approve a rule to ensure the bill can be approved by a majority vote. nine republicans on the committee, four democrats. two of the most outspoken critics of the bill on the committee. it's part of the deal that kevin mccarthy made to become speaker in january, agreed to put conservative hardliners on this committee, two of them chip roy and ralph norman. the third, thomas massie hasn't said if he would come out in favor of the bill. if he votes no, that could complicate things substantially. that means six republicans in favor of it, if democrats vote no, it could stall the bill going forward. an added complication is that chip roy's contention that a private deal was made in january where kevin mccarthy said all nine republicans on the committee must agree in order to consider legislation on the floor. that's been disputed by mccarthy's

manu, let's start with you. some house democrats behind closed doors told democratic leader hakeem jeffries that they shouldn't go home for memorial day weekend, that they should stay and work. manu, why are any of them, democrats and republicans, going home? >> reporter: well, the reality here, jake, is that most members of congress are simply shut out of the negotiations that are happening on capitol hill between the house republican leaders, really kevin mccarthy, two of his top allies, congressman patrick mchenry, congressman garrett graves, and white house officials. the rest of congress is waiting to see whether or not they can get any deal. already we know that there are still significant disagreements over how to cut federal spending and whether to tie that to a debt ceiling increase, something republicans have demanded. republicans have also demanded new work requirements on social safety programs like food stamps, something democrats had resisted but the white house is now considering in order to get a

it has already been -- manu, does this new deadline one month from today change anything when it comes to negotiations? we haven't seen any real willingness to give on either side so far. >> not at the moment, jake, of course this letter just came out, but even kevin mccarthy, the speaker saying earlier today in israel that they will not do what the white house has been demanding for the past several months, that the house will not pass a clean debt ceiling increase meaning a debt ceiling increase without -- with no conditions whatsoever. the republicans say there should be some conditions. they passed a bill last week along party lines. they lost a handful of votes, but enough to get it over the finish line. that included a slew of cuts across the federal government. also to go after biden policies. what mccarthy has been calling for for some time is to have a negotiation with president biden, try to find some sort of agreement between what the president wants and what the republicans want and try to get it through both chambers of congress. the white house has resisted that for some

it's uncertain how congress will get out of it. >> manu and jeremy.o much. >>> let's get to more on the debt showdown. joining us, congrkhan of califo and deputy whip. thank you for joining us. president biden is cutting his international trip short. does it sound like a deal will be hammered out by the end of this week? >> i'm confident that the country won't default, but we need to stand firm on our principles, and that is that we cannot have this work requirement which is going to hurt the poorest americans, hurt vulnerable americans. instead what we should be doing is getting rid of tax cuts for the wealthy, we're almost a trillion dollar defense budget. that's not going to fly with a lot of progressive democrats to have this progressive work requirement. >> the president was adamant that he wouldn't negotiate with these congressional republicans, but clearly that's what's happening right now. was it a mistake to put off these talks for so long? >> no, look, the republicans have been holding the country hostage. we should just pay our debts. congr

let's pick up where manu just left off there. how much concern is there this morning at the white house about that house rules committee? >> well, look, i want to take a step back and talk about what's in the agreement. i think most members of congress understand how important it is to pass this. as you pointed out, on june 5th, the government will no longer be able to pay its bills and would default for the first time in history if this legislation doesn't pass. and economists have predicted that that could lead to 8 million jobs lost, retirement accounts would be hit, we could tip into a national and global recession. and so what's critical in this legislation is that we act -- that congress acts to prevent default. and that's what we heard from most members of congress, that we briefed, yesterday, on the democratic side of the aisle. the hundred members of the new democrats, the center-left coalition in congress put out a supportive statement. congressman clyburn put out a supportive statement. they're just getting the bill te

manu raju is "outfront" on capitol hill. now, manu, this was a chaotic scene.rie taylor greene was approached. tell us what you actually saw. >> reporter: this was right after the house voted to refer george santos to the house ethics committee. the democrats had pushed to expel george santos all together. the house republicans gave santos a bit of a life line for now to allow the ethics committee to investigate and then decide later about whether to expel him. santos came out to the house steps. he answered some questions from reporters including myself, and then after that is when the shouting match ensued. jamaal bowman initiated it, the democrat from new york, yelled at him to resign. also alexandria ocasio-cortez did as well. that led santos essentially walk away from the press gaggle, and then engage in a back and forth with marjorie taylor greene, ultimately leading to the point where greene said "you're not very smart" and bowman walking away. just before that i had a chance to ask santos how he can continue to credibly serve in congress despite the fac

manu raju, thank you so much. here to discuss is the chief economist for moody's. are you confident that republicans and the democrats are going to be able to avoid a default? >> confident, that's a strong word. no. history would suggest that there's going to be a lot of drama. we're seeing the drama 37 we're going to take it right down to the wire. but at the end of this, they have legislation that increases the debt limit and do it just in time. but that's history. as you just pointed out in your conversation, there's a the lot of differences today compared to the past. particularly with regard our makeup of the house and lot of ore issues. so it's hard to be confident in anything. >> he's talking about needing a deal this week. janet yellen, the treasury secretary, says the money could start to run out june 1st. mccarthy says we need a deal this week to write the legislation, so that the senate and the house can both pass it. what kind of impact is that going to have on the economy this rapidly approaching deadline as we get closer and closer? is the market goin

we know that you are working hard, manu. thank you. kate?er the team meeting amongst the republicans, john. and we know that secretary treasurer janet yellen doubling down, and now some republicans are saying they don't believe her. and now, ceos have put out an open letter to president biden and others to urge them to act or face a devastating scenario. one of those ceos is the chairman of silver cup studios. and thank you for coming in, alan. and we heard this update from capitol hill, and they said overnight, productive talk, and now coming out of the meeting of the republicans saying that they are nowhere near a deal, and a suggestion that if it is not done this week, they don't have time to get it done before this june 1st deadline that we have been hearing from secretary yellen. you have warned the congress what default would mean and warned washington from the outside looking n and how confident are you in seeing what is playing out? >> well, confidence in this case is, you know, it is very iffy. the whole issue here this notion of un

are you hearing, manu?> it is a huge hurdle to get a deal done by june 1st and signed into law, because so many differences remaining, between the house republicans and the white house, and not simply enough time to move through all of the parliamentary procedures to get a bill signed to law, and much less, a house and superma joy ti. the question is if they can get a deal, and the white house negotiators are saying that there is no deal, and garrett graves and patrick mchenry the top negotiators are in the room. they are saying there is not enough cuts to go below last year's levels, and they say they are agreeable to a freeze, but it is not good enough for republicans. and there is a policy change for work requirements for safety net program, but talking to the people on the left, and they are concerned about those kinds of seeking is. and some on the right is not to erase the house bill to erasing the slew of cuts that is showing beyond the ranks. >> there is a huge backlash from the entire democratic ca

manu raja on capitol hill. thank you. >>> more confusing drama there on capitol hill. a deadline that we have warned about months ago and how did we get here? we will have more on that next. >>> up next, home depot is lowing the yearly outlook as consumers are lowering the spending. that is an economic bellwether, and you are watching cnn "news central." that enable digital innovation and enterprise controlol, vmware helps you innovate and grow. [ applause ] the day you get your clearchoice dental implants changes your struggle with missing teeth forever. it changes how you eat, how you feel, and how you enjoy life. it changes your smile and how others smile at you. clearchoice network doctors have changed over 100,000 lives with dental implants, and they can change yours, too. because a clearchoice day changes every day. schedule a free consultation. ♪ prices keep going up. but experian is here to help you save on personal loans, credit cards, or car insurance. experian helped me save over $1,400 a year " >>> and just over two weeks, the u.s. could run out of cash to

i want to go to manu raju. manu coming into this announcement from yellen, you've been speaking to lawmakers. do they think this will get done? >> reporter: i spoke to senators from both party and they're painting a grim picture. republicans are saying they won't undermine kevin mccarthy. democrats are saying they won't agree to any spending cut deal tied to raising the debt ceiling. >> they're saying they're going to default on the debt. >> can you find the middle ground? >> what's the middle ground? >> a deal with some spending cuts. >> i think it's a big mistake. >> this deal has to be between biden and mccarthy or their respective teams. there's no other way that something gets 60 votes in the senate. the pressure is mounting and it should. >> reporter: that last comment coming from the number two republican there. there was some speculation that perhaps the senate gop could try to push something through in the senate. john thune saying he's the one that counts the votes in the senate. he said there wouldn'

for the progress on the sticking points, manu raju is there for us. the president said maybe before the clock strikes midnight tonight. possible? what are you learning? >> reporter: there is new optimism a deal can be reached on both sides of the aisle. this is a sharp shift in tone from earlier in the day. i just talked to patrick mchenry who told me he concurs president biden's assessment that they are very close to a deal. but there are sticking points they have been fighting over. one of them is whether or not to impose work requirements on beneficiaries of the food stamp program. republicans have been pushing for that. democrats say that is an attack on the poor. republicans i spoke to insisted that would be part of the final deal. >> if you're really going to fall on the sword for that versus actually negotiating something that changes the trajectory of the country for spending, it's crazy we're even having that debate. >> are you willing to drop that work requirement? >> hell no, hell no, not a chance. >> there are tough things that remain. >>

manu raju bringing us in realtime the vote casting on capitol hill.the house passes this rule and then the debt ceiling bill potentially, it will then, of course, head to the u.s. senate. it faces challenges there as well. one senator strongly against one of the amendments added to the legislation is going to join me next. stay with us. hi, i'm jill and i've lost 56 pounds on golo. hi, i'm barry and i've lost 42 pounds. jill and i are a team. if she tells me to do something, i usually jump on board. golo was doae, it's realistic, and it's something we can do the rest of our lis. as someone living with type 2 diabetes, i want to keep it real and talk about some risks. with type 2 diabetes you have up to 4 times greater risk of stroke, heart attack, or death. even at your a1c goal, you're still at risk ...which if ignored could bring you here... ...may put you in one of those... ...or even worse. too much? that's the point. get real about your risks and do something about it. talk to your health care provider about ways to lower your risk of stroke, hea

manu raju has the latest. manu? >> reporter: yeah, that's right.ed up, the final vote, 221 votes to refer the matter, the expulsion of george santos to the house ethics committee, all republicans voting for that. senate democrats voting present, which are members of the ethics committee themselves. this came down along party lines. democrats argue this is an effort to protect george santos. they said it's unclear the house will ever vote to expel santos. santos, to get kicked out, would require the support of 2/3 of the full house. the republicans say that santos should at least go through this ethics committee process, and then the ethics committee can recommend whether or not to kick him out of congress. but there is another wrinkle, a question whether the justice department may ask the ethics committee to stand down, as they have done with other indicted members, because the justice department has an ongoing case against george santos who was indicted on federal charges. earlier today, i asked the speaker whether or not this could happen, whethe

we turn out to manu raju with the very latest, manu. >> right now this bill clearing a key hurdle on its way to the house floor tomorrow. moments ago the house rules committee, the first ethylated parosmias, voted 7 to 6 barely clearing enough votes getting majority votes that essentially ensures that this bill can be considered and approved by a majority vote. this vote that came tonight did not come without some drama. two republican members on the committee have emerged at some of the most outspoken critics of this bill. ship roy being one of them, ralph norman being another one. chip roy also contending there was a secret deal cut between him in the speaker. the deal between him -- all nine republicans on the house rules committee must agree to any of the rules before that bill is considered on the floor. that didn't happen, just seven of nine. even as mccarthy and his allies essentially reject the notion of some sort of secret deal all underscoring the tension ahead of tomorrow's vote. there are a number of republicans on the far-right who are concerned about this bill and argum

cnn's manu raju joins me now with the latest.rs feeling as optimistic this afternoon as they were late last night and this morning? >> reporter: in short answer, no. there have been a lot of negative comments coming out of the speaker's office this afternoon from some of the key negotiators, who i caught up with. those two key negotiators, patrick mchenry, as well as garrett graves, two men who have been going back and forth with the white house for the past several days to figure out any sort of deal to raise the national debt limit and what conditions can be attached to it. there are a number of sticking points, but one of the biggest sticking points right now is on the issue of work requirements for social safety net programs. republicans are pushing for programs like food stamps and temporary assistance programs to include some new level of work requirements. democrats are concerned that could hurt poor families, and they have been going back and forth, and there is no resolution on that issue. and they -- the republicans are