May 18, 2025: Markets React to Moody's US Rating Cut, Biden Cancer Diagnosis, More

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Episode Transcript

Speaker 1 (00:00):
News when you want it With Bloomberg News Now, I'm
Doug Krisner. The mood in financial markets is risk off
after the downgrade of the US credit rating by Moody's
last Friday, after the New York close, moody strip the
US government of its top credit rating, cutting it to
double A one from triple A. Moody cited the failure
of successive administrations to deal with rising US debt and deficits.

(00:23):
Right now, the dollar is weaker and US equity index
futures are trading lower. Here is Bloomberg m Live strategist
Mary Nicola.

Speaker 2 (00:32):
We're within breach of the S and P five hundred,
reaching its all time high. That momentum is going to
be questioned. So this Cell America trade is going to
come back to haunt US stocks, US treasuries and of
course the dollar as well.

Speaker 1 (00:47):
That is Bloomberg's Mary Nicola. Meantime, US Treasury Secretary Scott
Bessant is downplaying concerns over the US government debt and
the inflationary impact of tariffs. On Sunday, Besson said the
Trump administration is determined to lower federal spending and grow
the economy. Here is Beson speaking to NBC's Meet the Press.

Speaker 3 (01:06):
We didn't get here in the past one hundred days.
It's the Biden administration and this spending that we have
seen over the past four years. We inherited six point
seven percent deficit to GDP, the highest when we weren't a recession,
not in the war, and we are determined to bring
the spending down and grow the economy.

Speaker 1 (01:28):
That is Treasury Secretary Scott Besson, speaking to NBC's Meet
the Press. He also discussed trade talks with China, saying
a mechanism is in place for continued talks, and Besson
also said that tariffs may be imposed unilaterally on other
countries that don't negotiate in good faith. Former President Joe
Biden has been diagnosed with an aggressive form of prostate cancer.

(01:51):
This diagnosis was made on Friday when doctors found a
small nodule on mister Biden's prostate that required further evaluation.

Speaker 4 (01:59):
A short while ago, on.

Speaker 1 (02:00):
Truth Social President Trump wrote that he and First Lady
Milania Trump wished the former president of fast and successful recovery.
New Jersey Transit and its locomotive engineers have reached an
agreement on a new contract. This pact ends a three
day transit strike that disrupted trained services for thousands of writers.
Here is New Jersey Governor Phil Murphy.

Speaker 5 (02:22):
Starting Tuesday, May twentieth, NJ Transit will once again provide
rail service to the more than one hundred thousand writers
who depend on it every single day.

Speaker 1 (02:34):
That is New Jersey Governor Phil Murphy. Now, this deal
ends the first railroad strike for the transit system in
more than forty years. Vice President JD. Vance held talks
with Ukrainian President Volodimir Zelenski in Rome on Sunday. The
two were joined by US Secretary of State Marco Rubio
and a top Zelenski aide at the US Ambassador's residence

(02:56):
in Rome. Now, this meeting comes ahead of President Trump's
call with Russia President Vladimir Putin today. White House Special
en Voice Steve Whitcoff spoke to ABC's this week.

Speaker 6 (03:06):
We have to get to a ceasefire. That's the President's position,
and we all agree with that position. And most importantly,
we have to get to a final peace deal. And
the President has a force of personality that is unmatched.

Speaker 1 (03:22):
White House Special Envoice Steve Whitcoff, speaking earlier to ABC's
This week certainly will be a busy week for earnings.
A number of high profile retailers are scheduled to report.
We have a preview from Bloomberg's Charlie Pellett.

Speaker 4 (03:35):
Target and Home Depot will be among the names set
to report shrinking same store sales as TARA fueled economic
anxiety fans a consumer pullback. Aaron Kennon is the CEO
of Clear Harbor Asset Management.

Speaker 7 (03:48):
We yes Q one earnings were somewhat robust, but there
is a lot of pull forward. We think maybe some
deceleration in the back half of the year, but still
positive earnings going forward.

Speaker 4 (03:59):
This week, well, so'll be hearing from retailers Low's and TJX,
along with analog devices Into It and Palo Alto Networks
in New York. Charlie Bloomberg Radio.

Speaker 1 (04:10):
We go to sports next, where Scottish Scheffler won the
PGA Championship.

Speaker 6 (04:14):
One last look at the hole for Scheffler.

Speaker 1 (04:16):
The potter is back and threw on its way.

Speaker 4 (04:20):
He's missed it, but that's okay. He'll go around the
hole collect himself.

Speaker 6 (04:28):
The King the Call conquers the Queen City at Quail Hollow,
Scotty Sheffler is a PGA champion.

Speaker 1 (04:36):
That call from Westwood one Sports heard live on Bloomberg Radio.
Scheffler wrapped up the tournament hitting eleven under par, and
the win marks Scheffler's first PGA championship and his third
major title. And that is news when you want it
with Bloomberg News Now, I'm Doug Chrisner and this is
Bloomberg