u.s. default would be potentially catastrophic. we will hear more from yesterday's interview. francine: if you look at the futures, they are in the green for the moment. investors are looking at it and yields. investors are looking at the cooling u.s. job market. tom: slivers of optimism coming through on the geopolitics in the debt ceiling. on the geopolitics, wang yi and jake sullivan having a meeting. the ftse 100 currently gaining four points in the session. we continue to look at the pressure coming through for commodities and that fuels the energy sector and basic resources. on the inflation front, the spanish ibex currently up .4%. we continue to watch the details in data coming through from the euro zone as the ecb members debate how far to go in terms of the rate hike cycle after adding 25 basis points. the cat getting 6/10 of a percent in france. in the u.k., the ftse 100 up .2%. let's look it over and see how things are working out cross asset. on the data front, last night, see

u.s. lifted its covid-era immigration policy, the scene at the southern border remains relatively calm. a breakthrough in bakhmut. russia acknowledges the setbacks in the ukrainian city after months of brutal fighting for every inch of territory. erdogan's toughest test yet after two decades in power. the turkish leader is facing the very real possibility of defeat in this weekend's pivotal election. >>> live from cnn center. this is cnn newsroom. >> good to be back with you. so far at least, it appears to be the surge that wasn't. u.s. cities along the border with mexico report fewer migrant crossings than expected on the first day since title 42 expired. the covid-era policy allowed authorities to swiftly expel most migrants in el paso, texas, the mayor said the city saw a spike in migrants seeking asylum in the days leading up to the policy changing. but he says it's been a smooth transition out of title 42. federal officials say there was no substantial increase overnight or an influx

time, james bullard speaks on the u.s. a quantity -- u.s.after a lot of fed speak endorsing upon tomorrow, a host of flash pmi's from around the world. when say, minutes from the fomc march meeting. we will also get u.k. cpi data. thursday, the turkish central bank delivered to the latest policy decision three days before the country's presidential election runoff vote. on friday, more u.s. data. pce and durable goods. u.k. data in there, a lot to watch out for this week the u.k. prime minister just returning from the g7 summit in japan. he is facing a cabinet scandal and conservative party finger-pointing. joining us is our u.k. correspondent. what is rishi sunak facing? lizzy: remember, he wanted to refocus the conversation, talk about the better relationship with the eu, resetting relations with china, how britain is helping ukraine, but instead he's having to talk about the home secretary who the sunday times reports has a speeding fine, which is she asked her civil servants to deal with. that is possibly a breach of ministerial code. ri

in the u.s. pointing to a higher start. when you look at things they are watching out for, we have a packed week in terms of data, the u.s. consumer confidence later today. the u.s. 10-year yield 3.7520. spain one of our top stories after those early election calls, but preliminary may harmonize cpi rising to 2.9 percent. not as much as traders were expecting. euro-dollar 1.0692. we will see the ramifications of what this means for the prime minister that has called for early elections. that preliminary may harmonized pretty much as expected, actually not as high as expected, it has fallen 0.2%. the white house and republican leaders ramped up lobbying campaigns as they look to win support for a deal to raise the debt ceiling and avoid default. for more, we're joined by bruce einhorn. good morning, good afternoon, it seems like things are getting better but how much progress concretely are president biden and leader mccarthy making? bruce: it is too early to give specific numbers, but both presid

and a slightly more positive tone from the u.s. president on u.s.-china relations.er that can be sustained is a valid question. the dax down 0.2%, but brighter in the, thanks to health care gaining. natwest within the banking space, buyback of shares from the u.k. government. let's see how things are breaking down on a sector basis. oil under pressure once again, third straight day of losses, particularly pronounced on wti. consumers, leading the charge, 5%. health care near the top as well. basic resources under pressure. zero point 8%. let's get the geopolitics that we heard around china. china delivering his latest salvo in the semiconductor with the u.s., barring the buying of micron semiconductor after they failed a security review. the foreign minister reiterated the review is necessary for national security and accuses the u.s. of lacking sincerity in asking for talks. let's bring in marc champion, what else has beijing been saying about the rationale for banning these chips? >> essentially, as you said, that there is a security issue. in the broader context,

u.s. military attacks. amy: is henry kissinger turns 100 years old saturday, we will also speak to pulitzer prize-winning historian greg grandin, author of "kissinger's shadow." all that and more, coming up. welcome to democracy now!, democracynow.org, the war and peace report. i'm amy goodman. in south carolina, republican lawmakers have approved legislation banning abortions after just six weeks of pregnancy. the bill now heads to republican governor henry mcmaster, who says he will sign it into law as soon as possible. the measure includes a limited exception for fatal fetal anomalies, the patient's life and health, rape and incest to seek an abortion after up to 12 weeks of pregnancy, but doctors are required to report their procedure to law enforcement. the bill passed after a filibuster led by five women state senators, including three republicans, failed to block it. u.s. surgeon general vivek murthy issued an advisory warning of social media's profound risk of harm for young people

i think the u.s. has had a policy of accepting any outcome that is agreed-upon peacefully between the two sides of the strait, but we have yet to hear a biden administration official make that statement. in the absence of that statement, i believe the description did raise concern among many people that the u.s. sees taiwan as such an important strategic asset that it would under no circumstances allow it ever to be integrated into the people's republic of china. i think that the danger of that conclusion, if that judgment is made by beijing, is increasingly , this is potentially part of a chinese assessment that the u.s. has walked away from all of the components of its one china policy. we have heard many chinese officials expressed doubt that even president biden statements directly to xi jinping are not credible. i have heard that in various conversations, the president says the u.s. does not support taiwan independence, but the chinese claim our actions do not match our words. my view is we need

the u.s. debt ceiling clears its first hurdle in the house, but it still has a way to go to cross that finish line. >>> north korea admits it failed to launch a military spy satellite into orbit, but the attempt has increased tensions and rattled nerves in the south. >>> and unnecessarily aggressive. that's how the u.s. is describing a chinese fighter jet's encounter with an american spy plane over the south china sea. >> live from cnn center, this is "cnn newsroom" with paula newton. >> so a deal to avoid defaulting on tens of trillions of dollars of debt is now moving forward, but the u.s. government is by no means out of the woods. in the coming hours, u.s. house members will vote on a bill to raise the debt ceiling as well as other measures tacked on to limit spending. the house speaker will be busy trying to rangle last-minute support from republicans who just don't like this deal. some democrats are also angry about white house concessions. but house leaders, they seem confident they'll

if the u.s. will default, that is what everybody says. in a little more nuanced level robert kaplan telling us that the debt ceiling talks could lead to some changes in the fiscal spending, the fiscal programs that could offset some of the money that is already there. i think what is also interesting what chris waller said today the federal reserve board governor is asked how will this affect your decision, he said i am not letting it. he assumes they will get this done, there won't be a default and that obviously is what many stock investors are thinking because we have not seen a huge selloff in stocks. that does not mean we will not see one but every day goes by we get closer to that point where there won't be enough time left to do what you have to do to get this done. the closer we get the more we are going to see a fed officials, probably investors looking at this and will probably awaiting their reactions. >> kathleen hays with the latest let's take a look at one reason why we have seen fu

u.s. reserve relations between washington's former ambassador to the united nations, thomas shannon. he highlights the largest economy te states as well as brazil's foreign policy and role of china, who has been the nation's top trading partner for nearly 15 years. show to brookings it research. since the inauguration, and he returned to power in january, a rapid turn of events has taken place and is reshaping the future of relations between the united states and brazil. both countries are contending with internal political and economic challenges of their own, but they are also finding new opportunities for cooperation. a month after the attack on brazil's capital, the federal branches of government that mirror the emerges of january 6, 2021 at the u.s. capitol, president lulu visited president biden here in washington, d.c. to reaffirm the commitment to democracy, climate change, and bilateral cooperation on trade and administration. strengthening the relationship with brazil, including

u.s. citizens and non-u.s. citizens alike come at a time when digital authoritarianism is on the rise, the framework and safeguards established by the united states can serve as a model for how to conduct legitimate intelligence activities in a manner consistent with privacy, civil liberties and transparency imperatives. looking ahead i am confident working with congress we will find a way to preserve these vital authorities while addressing legitimate privacy and oversight concerns. as the director of national intelligence and the attorney general had said, the administration is committed to working with an engaging congress on potential improvements to the authority that fully preserve its efficacy. for inr and state department, and indispensable part of that efficacy is the advantage that 702 information provides for american diplomacy. from advancing human rights and climate security to counting authoritarianism, american diplomats are on the frontlines of every major threat and opportunity that we face in

we heard from sources that u.s.ernment officials are willing to replenish strategic reserves and would be buying 3 million barrels of crude to add to the strategic reserves. haidi: janet yellen says the u.s. is already paying the price for its failure to raise the debt limit as talks between the white house and lawmakers continue. let's get more from jodi schneider who joins us out of washington. even though janet yellen sticking with june 1 as the earliest date on the debt ceiling, what kind of a fresh warning to be here today? >> in that letter that janet yellen wrote to kevin mccarthy kevin she said is this still june 1. we could run out of cash, the ability to maneuver with extraordinary measures we have been using since january. but also, she said a few other things she set a default could come weeks or days after that june 1 deadline, which was a bit of a tweak. something we had not heard earlier. she also said we are already feeling the effects. this was a stern warning, saying if -- do not play around with t

border, u.s.fficials estimate 150,000 migrants are currently camping out in northern mexico just waiting for the policy to officially end in a few hours. now, this is not just an issue that will affect u.s. cities near the southern border. brownsville, texas, official says migrants are requesting transportation to get to chicago and dallas and houston and brooklyn and denver and miami. homeland security secretary alejandro mayorkas this afternoon insisted that the biden administration is prepared for every scenario. >> we are clear-eyed about the challenges we are likely to face in the days and beaks ahead and we are ready to meet them. we prepared for this moment for almost two years and our plan will deliver results. >> cnn has teams on both sides of the u.s./mexico border. david culver is in ciudad juarez after making a grueling journey to the mexico side of the border. starting with nick valencia in brownsville for us, texas. do officials in brownsville think they are prepared for whatever mig

the u.s.anking sector given the current turmoil. how concerned are you with the regional banks stateside and do you think more collapses are in the pipeline >> it seems this is far from over you know, we apply the savings and loan crisis from the '70s and '80s with small banks. this is serious. you would not like to see this spreading. for the time being, this looks to be a particular part of the banking system whereas the stress test and an regulation and regulations seem to be insulating all of the large names in the u.s. banking system from that point of view, this will be a tedious work process there will be further cheaters there might be some economic clollateral damage there kno not to the extent in 2008where the banking system was taken down it looks like smaller banks and regional u.s. crisis >> okay. great to get your view on what is happening in the u.s. banks can i step back and look more broadly at markets and ask what you think is the optimal portfolio construction here? how do y

typically when you see a u.s.ession hit, the fed tends to cut rates by 300 basis points in the year thereafter from when the recession started. only about 125 basis points of cuts are priced in today, which signals interest rates have more room to fall. from that perspective, i see more price appreciation for bonds, but nonetheless, markets have moved a lot so for a tactical investor, you might get a better entry point in the coming weeks. tom: not enough cuts being priced in for these markets next year, but perhaps an opportunity for those looking to add bonds to their portfolio. thank you for joining us in the studio this morning. madison faller, global investment strategist at jp morgan private bank. coming up, we will take a look at your stocks on the move including stellantis. a jump in sales not helping to lift the carmaker this morning. more on that next. this is bloomberg. ♪ tom: welcome back to the open. 23 minutes into european trading day. expectations that the fed will raise rates by 25 basis points la

aoiffinn: even though u.s. stocks added index level art strong, there has been remarkable dispersion. atrial concentration among life cap tech stocks, even when you take them out, you can see they have been flat even negative year to date to me, that suggest a safety trait going on. large caps tech are seen is that safety. there is that broad-based left in markets. fundamentals suggest there should be something more broad-based. we should see small caps starting to rally. because of consumer demand is strong. the fact that we are not seeing a broad-based rally suggests investors still have something to fear. tom: they make the money on the side as well. it also sounds like you are pushing back on the wilson of morgan stanley view that we face and earnings recession down the pipe and that we need to start pricing it in. do you agree or push back on that? aoiffinn: i pushed back in the loop. it is all about telegraphing and market expectations. even though we did see earnings weakening already in line with expert

the u.s. futures coming online. we have had a public holiday on monday. holidays are seeing trading but we see futures pointing higher at the outset. it really is down to that optimism around the debt deal of the u.s. we are seeing the bloomberg dollar gauge holding onto its losses that came in on friday. this had been the haven currency that investors had been retreating to. oil coming in online. again, thinner trading volumes across the last couple of sessions. in terms of what we are watching, when we do see trade coming underway. the big question is whether nasdaq futures can hold onto the momentum. you can see they are outpacing the gains for the s&p 500 futures, and that comes down that we heard from the nvidia ceo. he has been in taipei. outlining it in a two hour presentation on monday, his vision for the company that seeking to capitalize on ai and they have unveiled products. that ai frenzy played out in the session. we saw japanese stocks really rallying with the news chip in the ga

u.s. and taiwan agree to boost trade ties. the first steps in initiative that faces tense competition from beijing. it comes as president biden and other world leaders meet in japan. g-7 nations are ramping up pressure on russia with new sanctions. and alibaba's much anticipated breakup against as it tries to revive revenue growth. the tech giant will explore ipo's for two units will spinning off its cloud's nest. shery: take a look at how u.s. futures are extending gains in the new york session. s&p 500 finishing at the highest level in nine months. the nasdaq 100 at the highest level since april of last year. we did get some comments that were perceived as a little more hawkish from the dallas fed president. the two year yield finishing at around the highest level in about a month. yields rising across the curve with the 10 year yield above the 360 level but it was of the focus on the possibility of progress on debt negotiations that kept the risk rally going. the only one bucking the tr

u.s. data suggests a cooling economy. jamie dimon tells bloomberg he thinks that they are likely to overreact in their response to the bank turmoil. the g7 meetings, we will be speaking with the oec secretary gentlemen -- -- the central bank, the key rate 7.75%. this as the rate is the highest since 2002. a tight monetary conditions de seller terry -- lower inflation expectations support the hold. not a cut as of yet, that core inflation remains elevated but the central bank is contending with political uncertainty as well. inflation fell below 8% in april, central bank is holding rates steady at 7.75%. take a look at how u.s. futures are trading. a little bit of upside after a mixed finish on wall street. s&p 500 falling, and pac west seeing its worst performance among lenders. deposits falling. it was really all about eco-data. the jobless claims reaching the highest since 2021, producer prices rising less than expected. inflation trending lower, growth weakness perhaps, the fed can fina

u.s.ongress, white house events, the courts, campaigns and more from the world of politics. all at your finger tips. you can also stay current with the latest episodes of "washington journal" and find scheduling information for c-span's tv networks and c-span radio, plus a variety of compelling podcasts. c-span now is available at the apple store and google play. download it for free today. c-span now, your front row seat to washington, any time, anywhere. we are joined today by george croner, the national security program senior fellow at the foreign policy research institute. we will talk about the reauthorization debate surrounding section 702 of the foreign intelligence surveillance act. good morning. guest: good morning to you and thanks for having me. host: thank you so much for joining us. let's start off -- section 702 is supposed to sunset at the end of the year unless congress votes to extend it. what does it allow u.s. government to do and how is it different from other types of

the u.s.ern border. before that ended, we had seen a huge increase in the number of people arriving at the u.s. southern border. talking to u.s. officials and immigration attorneys and nonprofits, they are preparing for even bigger numbers are much a bigger surge title 42 ended. the numbers went down, and the big question was why. we found out why crossing into mexico, we spoke with people waiting on the mexican side of the border. there is a huge backup. people from venezuela, honduras, say they are going to wait because of the rule changes because of the changes implemented. they know the message officials had been trying to get across for months saying the border is not opened, that if you try entering without permission, you can be banned. you cannot enter without an appointment with the u.s. border official. they heard the message loud and clear and say they will wait. that is why numbers have gone down. >> what is the experience like for the migrants waiting? >> waiting for them is tenuo

the u.s.nches closer to a deal ahead of a june 1st deadline house speaker kevin mccarthy says the debt ceiling can no longer be ignored. >> how much is too much? $32 trillion debt. you will pay more in interest in the next ten years in the last 80 years we can no longer ignore the problem. >>> european stocks echoing gains. >>> and out of passion burberry warns after the rebound in the luxury group revenue. >>> warm welcome to "street signs. the end of the week and we are looking forward to the g7 leaders meeting in hiroshima this morning, leaders are arriving we are looking at canadian prime minister justin trudeau who is arriving a few moments ago, joe biden made his way over. rishi sunak in focus and drawing up an agreement with semiconductors with japan. we will discuss later in the program. we want you to see the look at the prime minister's airplane. we will bring you any further arrivals as they come through on "street signs. >>> as i mentioned, u.s. president joe biden arrived in hiros

u.s.tocks and bonds fall as traders weigh the possibility of a u.s. recession from either a debt default or higher in just rates. kevin mccarthy says there is time to reach a deal. >> i am not going to give up. we are not going to default, we are going to solve this problem. i will stay with it until we can get it done. let's be honest, we have to spend less than we spent last year. >> the latest fed minutes show their leaning toward a pause in june. robert kaplan joins us later this hour. >> nvidia gives a bullish forecast that shatters expectations. after hours the stock is up 26.4%. u.s. futures pushing higher. this after two days of losses for u.s. stocks. we had real estate and financials leading the declines. it was all about digesting the fed minutes. oil also gaining ground. u.s. crude inventories fell the most since november, but we were watching treasury yields higher across the curve. this chart shows it's all about the debt. we are not necessarily seeing any progress, we are he

meanwhile the u.s.st bit in the global market and people have been trying to avoid that. . they have been reallocating their money to safer places like japan and europe and away from the debt ceiling situation in the u.s. away from political instability, from the lack of visibility as to where the economy is going. this is now not just the most anticipated global recession but the most prolonged one -- the most postponed one. the earnings season for the u.s. shows will the economy is resilient, the earnings are defiant almost. >> i find it interesting you see that reversal once we see a u.s. debt ceiling resolution for japan. does that mean you don't believe so much in the fundamentals of governance and reform that so many people are seeing drive the long-term rally in this market? is this less of an offer opportunity and more of a be to hedge against what's going on in washington -- beta hedge against was going on in washington? >> beta hedge is more likely right now. the long-term things are always in

the u.s. house is set to vote on a critical bill. >> while many seem confident that they will get the votes, the house speaker will be busy trying to wrangle last minute support. >> kevin mccarthy says if you think i failed, i think you're wrong. when confronted with complaints about concessions. and some republicans have already put their support behind the bill. >> i think everybody has been waiting a long time to see from washington not how much more is washington going to spend, but for once in a long, long time washington is actually going to spend less money next year than it is this year. and that is a reform that all of us can support. we've been waiting for years to get a chance to finally turn the direction of this country around so that we can get away from this mentality that every year washington thinks that it can print and spend money it doesn't have, raising taxes, creating new programs and ultimately taking freedoms away from the american people. and that change starts with th

a u.s. to carrier near bakhmut. over the following three days, they would take back close to two miles of ukrainian territory from russian troops. their commander explains. dry ground, new u.s. attack vehicles helping reverse months of losses. >> translator: everything was planned and calculated. and we have an advantage case we used armored vehicles. this time the weather gave us a chance to use all our might and show what we are capable of. >> yevgeny prigozhin is saying that the reason you took -- territories because the russian forces ran away. >> translator: prigozhin is a liar. because the first to flee were wagner. it is his that fled. and our success is not due to the fact that they fled, but that we conducted a planned assault by circumventing and cutting them off. actually, the unity is bad-mouthing fought to the end. his wagner's where the first to flee. >> cleaned up and back from the battle, three young troop commanders recall the first moments. -- you are nervous, you feel the

we have just entered the u.s. market and now we have a u.s. branch. started to hire employees. >> can you tell us what these robots are going to do and build? i don't think most of us realize that the development of space by so many big companies has to do with a lot more than just going and landing someplace. >> sure. the space industry has been changing rapidly. we decided to bring a balance to robotic technology. that is why we decided to enter the u.s. market. >> your end goal for building testing facilities for robots includes a mockler environment and a vacuum chamber. your goal is to boost the technological readiness levels of any given technology. is this the core of your business? how important is this to institutions like nasa and others around the world? >> yes. we have conducted a lot here. we have increased our readiness. we are going to reach this within this year. we needed to prove our capability. this would affect nasa's missions by using this, we have raised -- we will raise us up to seven. >> so fascinating, you have a wonderful web

a u.s. debt deal remains elusive as talks in on, officials signal talks remain at an impasse, with no new meetings planned. u.s. stocks fall and bonds fluctuate as investors wait the risk of a default. republicans challenged the treasuries june 1 exudate. it could be signaling further tightening to come, the kiwi dollar volatility surging ahead of the decision. u.s. futures muted early in the asian session, after we saw u.s. stocks pressured. had the volatility about progress in debt talks. there was a lot more pessimism than yesterday. just coming off of those comments, from president biden, from house speaker carthy, that they would try to speak every single day. we have not seen meetings schedule, that is sending investors anxiety through the roof. we have solid economic data, new-home sales are the highest in more than a year. business activity growing by the most in over a year. treasury markets were mixed. despite the fact we had uncertainty over the debt ceiling, we did see oil prices

italy signaled to the u.s. pull out of china's controversial belt and road initiative before the end of the year. the country signed up to the infrastructure packed in 2019, the only g7 nation to do so. for more, let's get to maria tadeo. what is italy's thinking in this? maria: you talk about the changing geopolitics, while here is one. as you say, italy told allies, mainly the united states, that it will not renew the silk and developed road, therefore it could leave before 2024. the implications are many. before you go into the reasons why italy will leave, you have to look at why i joined in the first place. go back to 2019. the prime minister at the time said this would be a good deal economically for the country. that this would be good for exports for luxury and so on. but a lot of things have changed . talk about the tensions and geopolitics, the war in ukraine, but also this idea that in europe, trade and politics do not make a big combination. the fact that italy was the only g7 country added pressure

the u.s. ip study group has been looking out why. over the course of two years to study group has met with dozens of security political and humanitarian experts, and also with the defense industry, civil society leaders and academics. seeing internationally respected researchers have propelled -- have prepared for case studies. one on afghanistan, another on mexico, a third on ukraine, and a fourth on uganda. and a core interdisciplinary team of experts has compared the experience of these countries, pulling out patterns and commonalities that together, paint a very concerning picture. the report itself is organized around four conceptual blocks in the four case studies i mentioned. the first section examines the reason that elites try to capture and corrupt security sectors. the second section describes the mechanics of elite capture, how it actually happens on the ground. the third section analyzes the short, the medium in the long-term consequences of elite capture, and the fourth section i

so the u.s. has bought itself some time, and there is some optimism coming out of washington, but still what are some of the global implications that you are most concerned about? >> i think there are two different sets of global implications. one is on the national security side, and then one is financial. that is, of course, also linked to the national security side. so we've got national security and then finance with national security mixed in. the national security piece of it is that we've seen that president vladimir putin of russia, president xi jinping of china, they've really joined together in a campaign of disinformation to weaken u.s. diplomatic power and military alliances worldwide. they're trying to position us in the world as someone that people look at as an instrument of chaos and injustice and themselves as a savior to bring stability and justice against a hegemon in the world. when we start kind of messing around with things like the credibility of u.s. treasury bonds, which

we're getting out of it more from that u.s. session. we had u.s.overy as long as some early results -- pretty resilient labor market figures. the key is going to be that core inflation rating. the fed will be watching this week as well as well as a lot of data here in asia as well as china trade. as well as a lot of these other consumer indicators. we are seeing more upside. particularly when it comes to trading in career markets. >> we are watching earnings in the spotlight this week, shifting to japan as tech and auto companies prepared to release the results. felix joined us now for more on this. what is the big earnings theme in asia this week? >> as you mentioned, japan will be the focus this week because again gain some support after the fed meeting. it may be the last interest rate hike in this tightening cycle. the end is set to strengthen and the company may want to revise their earnings guidance. they previously lowered earnings -- there is forecast. toyota has been benefited from the weaker yen. that can support the revenue in the overse

u.s. equities climb on the hopes of a breakthrough in debt talks. president biden saying he is confident negotiators can make a deal. >> i am confident we will get the agreement on the budget and america will not default. haidi: joe biden heads to japan as a standoff and washington continues. shery: tencent earnings missed estimates. u.s. futures unchanged at the open here in the asian session after the s&p 500 gained ground today. we saw a little bit more optimism that perhaps we could see a breakthrough in the debt talk in past. we heard from president biden even kevin mccarthy coming out and saying potentially a deal this week was doable. we continue to watch what's going to happen on that front. in the meantime, we had banks rally because western alliance showed deposits were up. that shored up confidence in the banking sector. we had a little bit of pressure when it came to oil prices, they were slightly higher in the asian session, down again all to do with risk on sentiment being of

the u.s.and when you arrive here. >> we have been traveling since october last year. it is really, really hard. we don't know what we will do because going back to our country is not an option. >> we are doing our best in texas to make sure the border is secure but other states are not having as much success. ♪ lewis: hello and welcome to the program. in the u.s., just hours to go until donald trump's controversial immigration era legislation called title 42 expires. the u.s. homeland security says there borders are not open and want tougher consequencesor those who try to cross illegally. a look at what it will mean now with people waiting to cross the u.s.-mexico border. also, the u.k. is to supply ukraine with long-range missiles to help push back russian forces. it will look at exactly what the missiles are. interest rates in the u.k. are up again at the highest level in the u.k. for 15 years. what does this mean for the economy and rovision? the second semifinal is underway right now. we

u.s.. the stock story, equity story is all about japan. we will zero in on that poorly. the ftse 100 adding to the optimism with gains of .4%. we continue to work to the earnings picture as well. bt with job slashing going on, bad news for the workers but arguably good news for investors in that stock. the ftse 100 32 points. in france, the cap already up .6%. let's switch the board intention and what has happened in terms of japan. further gains at a 33 year high. the nikkei up 1.6% in the session. exports are stronger adding to optimism and seven straight weeks now a foreign inflows in two japanese equities. the futures flat and range-bound. the two-year at 4.16. a seven basis point move higher yesterday at the front and term of yields. gold is back below 2000 as the risks around the debt ceiling seems to come off at least a little bit scared 1976 on gold. just down .3%. francine: let's dig deeper into the sectors. i and lots of green. there's only one down which is utilities in the red

we have u.s.ob openings surging to more than 10 million giving rise to speculation that the fed may have more room to hike. until july. that is leading to concerns about economic pain so we had treasury yields down for another session. not to mention of course we were watching how traders were trying to digest the debt ceiling deal. at the same time, the dollar strengthened. the best month for may which led to pressure on crewed prices which are falling below $70 a barrel. the chinese pmi numbers did not help. annabelle: that's right and it's worth taking a look at how the bloomberg commodity spot index has performed since the start of the year because that is for a slump of more than 10% at this point. it's a reflection of macroeconomic concerns, the downshift in the chinese economy, the industrial pullback in europe, recession risks at a global level including the u.s., that is playing into sentiment. in australia we have local economic data points in focus. we got the latest pmi reading coming

if you look at u.s.sumer durable good prices, they hit an all-time record high back in february of 2022, higher than any time in the 1970's. by december we are in outright deflation, falling prices, and we are in outright deflation still. so what we are seeing a relative price moves in the economy but we are seeing some aspects of the economy already in quite a severe deflation episode, which is what you would expect with slowing demand. we are seeing obviously the supply slump of energy fading very rapidly and what we're left with the fact that some companies are still just about getting away with expanding profit margins and convincing or conning their customers into believing they are paying a fair price. but that is also starting to crack. so i think we will continue to see the inflation rate come down this year, partly as growth slows but partly frankly because the profit let inflation is now coming to an end. tom: with that deflation you are highlighting and zeroing in on in some parts of the u.s.

u.s. remains in the position to default on its debt as early as june 1 if congress does not act. c-span will be following the debt limit talks as day unfolds and bring you any updates or public statements from those directly involved. >> a healthy democracy doesn't just look like this. it looks like this. where americans can see democracy at work. where citizens are truly informed. our republic thrives get informed straight from the source on c-span. unfiltered, unbiased, word for word. from the nation's capital to wherever you are. the opinion that matters the most is your own. this is what democracy looks like. c-span, powered by cable. >> now and discussion on u.s. relations featuring washington's former ambassador to brazil. he highlighted the importance to latin america's largest economy to the u.s. as well as the role of china, the nation's top trading partner for nearly 15 years. nation's top trading partner for nearly 15 years. show to brookings it research. since the inauguration,

. ♪ >> it's 30 minutes and for u.s.rading day friday, may 26 in your the top market stories -- deal or no deal? debt ceiling negotiators are closer to compromise on spending but there is no agreement yet with the x-date looming. still chugging along, high inflation against -- consumer spending did it shows resilience and sends yields higher. what is it mean for the fed's june move and marvell is the latest to cash in on the chip boom. from washington, i am kailey leinz with guy in london. welcome to bloomberg markets. kayley: happy friday, a friday before a long weekend with the debt ceiling hanging over our heads. guy: kailey leinz is here and that means you generally want to buckle up and we will get some breaking news and it generally means things will go a little sideways but maybe in directions we didn't expect. she is at the epicenter of the action this weekend. that's where we find you. kayley: that hasn't been a fun couple of weeks to be honest as we have tracked the progress or lack thereof on the debt ceiling.

of the u.s. military drills. they need to have the satellite in order to monitor and to. track he has been widely condemn. the u.s., japan have all condemned it. because even though kenya considers this right to have the satellite in space. the technology to use it to get it there is banned by the security council resolution. and that is something that the u.s., south korea and japan of all consistently said before the launch. and today, now it has gone ahead. now the technology has been banned. >> clearly, north korea's belligerent on this point. -- paula hancock, angel -- joining me now from cambra, estrella. a senior analyst and defense strategy and capability of the australian shooting policy institute. good to see you on what was really some terrifying moments there in both south korea and japan. i want to take a look at the launch, though first, what could the game have been and since it failed, there's a learning opportunity for north korea though it failed. >> well look, essentially this

u.s. dollar flat but anticipation is the debt deal takes us higher for the time being, removing uncertainty. but it depends what asset class were talking about. yvonne: they avoided a crisis so you are seeing spreads. we will see how bills lay out when u.s. markets reopen. we will see what the reaction is going to be but you've seen the dollar take a step back and it is muted overall. there are procedural hurdles ahead. they got a deal done but biden mccarthy have to go back to their parties in the say this is not a deal. i know everyone is not happy about it, there were shortcomings, but we need to get this done by the june 5 deadline. rishaad: what will it mean for the t-bills, what about this as well? lots of political wrangling. stocks were having a mixed bag of it, so they were not factoring in a doom and gloom scenario but it did certainly have weight on risk and it was weighing on risks more and more as we approach the x date. janet yellen said it was a first. yvonne: they've all be

u.s. ambassadors patterson and bill taylor. the u.s. invests significantly in security cooperation and security sector assistance. although there are cases where it's worked well, there are many more where it hasn't. u.s. ip study group has been looking at why. over the course of two years the group has met with dozens of security political and humanitarian experts and also with the defense industry, civil society leaders and academics. senior internationally respected researchers have prepared for the case studies one on afghanistan, another on mexico, a third on ukraine and a fourth and uganda and the court interdisciplinary team of experts has compared the experiences of the countries pulling out patterns and commonalities that together paint a concerning picture. around four conceptual blocks and the four case studies i've mentioned. the first section examines the reasons to try to capture security sectors. the second describes the mechanics of the capture, how it actually happens on the ground. the third section analyzes the short,

so so the u.s. would eventually start the ho chi minh trail, but but be condemned for violating the sovereignty neutral states. the thing is they weren't neutral at all because both cambodia and laos allow north vietnam to use their territory for the sake of infiltrating troops and supplies into into the south. so you've got images, right? like trucks carrying supplies and then troops slowly. but walking down the ho chi minh trail typically takes two months to go from the north down to to the south. but depending on how intense the u.s. bombing is, it could take longer. so we had these guys from vietnam war year semester. i actually came and heard them one of the individuals had down the ho chi minh trail at at a very, very high point in the war. took him six months to go from hanoi, from the north to the south, six months because the bombing was so that to zigzag their way through laos and cambodia and, even at times go into vietnam because it was safer vietnam than it was a neutral. up. when you f

u.s.e are watching wall street gearing up for the fed's tent consecutive rate hike since march of last year. futures are under pressure and we had data showing u.s. factory activity contracted for six consecutive months but the gauge in the manufacturing sector climbed so the selloff was across the curve. yields are higher by 13 basis points and on top of that, we had corporate bond offerings. we had the u.s. treasury wrapping up estimates and on top of that, stabilization in sentiment, given jp morgan's decision to acquire first republic bank and weighing on fixed income. look at j.p. morgan, greening -- gaining ground for a third consecutive session but first republic was the second-biggest in u.s. history. let's get more on this deal with bloomberg intelligence senior analyst holman chan. j.p. morgan, already massive, becoming bigger, what does this mean for the concentration of banking in the u.s.? >> it was surprising that the regulators allowed jp morgan to participate in the auction

u.s. inflation shows signs of cluing, giving the fed room to's pause, but washington's -- to pause, but washington's debt ceiling impasse is still a problem for traders. >> emerging-market debt and financial stability. >> and disney with a smaller than expected loss on its streaming tv business while subscribers missed estimates. international theme parks, returning to profitability. the asian session had a lot of volatility in the regular session. the s&p finishing with modest gains. the nasdaq 100 managed to finish at the highest level since august. yields were down. tech stocks rallied. the 10 year yield at around the 344 level. the two-year yield falling before the 4% level -- below the 4% level. the inflation number, growing less than 5% year on year for the first time in two years. we are seeing oil gaining ground in the asian session after falling in the new york session. we had data showing a buildup in u.s. stockpiles. after hours, we are following disney. sales and profit coming

the u.s.reminded him of present day bakhmut. zelenskyy also met with president biden in japan sunday as biden announced another $375 million in military aid to ukraine. in a reversal, biden gave his -- said he is now supporting ukrainian pilots on u.s.-made f-16 jets. it's not clear who would provide the jets though moscow already warned of enormous risks if ukraine started using f-16's in combat. biden said he received assurances the fighter jets would not be used by ukraine over russian territory. earlier today, russian shelling again knocked out power to the zaporizhzhia nuclear plant, forcing it to rely on backup diesel generators to prevent a nuclear disaster. in greece, conservative prime minister kyriakos mitsotakis is celebrating after his new democracy party won over 40% of seats in sunday's parliamentary elections, that he called for a second round. the leftist syriza party, which came to power on an anti-austerity platform in 2015, won just 20% of seats, while a progressive party le

to the politics on the u.s., speaker kevin mccarthy left the u.s. capitol late tuesday afternoon saying the two parties had yet to reach a deal to avert a first ever u.s. default. for more, let's bring in bruce einhorn. the clock is ticking. where are we in reaching a resolution? bruce: the good news is that kevin mccarthy's deputies said that there was some progress made in closing the gaps in some areas. he said that they were very close in some areas. that said, they are still far part in some areas and at the moment they never -- they do not have any more talks set up. the areas of disagreement have to do with spending caps. republicans want a reduction in spending and want to have that apply to everything except the military. the democrats want to have a freeze in spending rather than a cut, and they are saying any restrictions in spending should include spending in the pentagon. another area of disagreement has to do with work requirements for things like medicaid and food stamps. those are things that republicans are calling for and democrats