Bloomberg - Evening Briefing - Time is running out

The US is another day closer to defaulting on its debt. Despite clear warnings such an event could throw millions out of work, trigger a market selloff and raise borrowing costs, the stalemate triggered by Republicans looking to force concessions from the White House continues with no end in sight. In exchange for paying the nation’s debts, House Speaker Kevin McCarthy is demanding President Joe Biden agree to cuts in future domestic spending. The GOP wants to slash climate programs and education funding while clawing back $65 billion in Covid-19 funds. Biden says he will cut his G-7 meeting trip to Asia to try and rectify the impasse. “Time is running out,” warned Treasury Secretary Janet Yellen, who said that the US would hit its limit June 1. —Margaret Sutherlin

US consumers remained resilient in April, with retail sales rising in the face of still-high inflation and borrowing costs. The advance in sales suggests low unemployment and steady wage growth are supporting demand. Markets remained squarely focused on the debt ceiling talks in Washington and traded lower for another day. Here’s your markets wrap. 

Ukraine said its air defense systems shot down 18 Russian missiles—including six of the much-vaunted hypersonic variety—in an overnight attack that targeted Kyiv. Vladimir Putin has long touted the new missiles as an advantage, given their supposed difficulty to intercept.

IBM’s privacy chief and the creator of ChatGPT told US senators Tuesday that Congress needs to heavily regulate artificial intelligence. Since introducing its chatbot earlier this year, Silicon Valley startup OpenAI’s technology has raised questions around AI’s ability to spread misinformation, infringe on copyrights and upend jobs. 

Sam Altman, chief executive and co-founder of OpenAI, during a Senate Judiciary Subcommittee hearing Tuesday in Washington. Photographer: Eric Lee/Bloomberg

Despite biotech being a key pillar for Xi Jinping’s economic plans, China’s $220 billion biotech ambition is struggling to take off. Experts pointed to a string of industrial shortcomings, including a lack of basic research and a reluctance to take big risks. There are also lingering questions about the Chinese drug industry’s ability to produce novel therapies and move away from the “me too” copycats.

Shunsaku Sagami saw firsthand the growing succession problem among entrepreneurs in Japan, which is grappling with the world’s oldest population. His answer?AI for mergers. It’s made the 32-year-old almost a billionaire. 

A Russian man was charged by US authorities in connection with his alleged role with multiple ransomware gangs that attacked hospitals, schools and police departments, including the Metropolitan Police Department in the District of Columbia.  

The world’s biggest copper producer is a state-owned behemoth in Chile. But the company, Codelco, is running at its lowest output in 25 years just as the world needs copper for the batteries, cars and tools of the green transition. It’s now up to this man to fix it.

The Codelco Chuquicamata open pit copper mine near Calama, Chile  Photographer: Cristobal Olivares/Bloomberg

• Pharma deal regulators may threaten lucrative business model. 
• The gap between White and Black US mortality hit a 20-year high. 
• Americans really don’t want to relocate for work. 
• Connecticut has a plan to reduce the wealth gap: Give kids trust funds. 
• Bloomberg Opinion: Will AI topple the Oscars or the Michelin Guide?
• New York’s beloved bargain retailer, Century 21, is back from the dead. 
• In Trust Podcast: What Oklahoma! gets wrong about US history.

Pedro Tonito couldn’t bear watching his young daughter cry from hunger or his teenager skip meals. Venezuela had effectively collapsed, finding work was impossible and he felt increasingly helpless. It was time to go. Tonito’s family was one of millions that made the months-long journey to seek asylum in the US.

Pedro Tonito, his wife Adriana Padilla, and their children ride on top of a cargo train to reach the US-Mexico border.  Photographer: Nicolò Filippo Rosso/Bloomberg

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