The daily business briefing: May 9, 2023

1. Biden, McCarthy discuss raising debt ceiling as default looms

President Biden is meeting with House Speaker Kevin McCarthy (R-Calif.) on Tuesday for the first time in three months as a deadline approaches to raise the debt ceiling and avoid a catastrophic and unprecedented default. House Democratic leader Hakeem Jeffries (D-N.Y.), Senate Majority Leader Chuck Schumer (D-N.Y.), and Senate Republican leader Mitch McConnell (R-Ky.) will join them in the afternoon Oval Office talks. Biden and McCarthy have dug in for several months, with McCarthy holding firm on Republican demands for spending cuts in exchange for raising the debt limit, and Biden insisting on increasing the spending cap without conditions. Treasury Secretary Janet Yellen has warned the government would run short of money to cover all its obligations as soon as June.

Bloomberg

2. Disney escalates its feud with DeSantis

Walt Disney Co. amended a lawsuit it filed last month against Florida Gov. Ron DeSantis (R) and his Republican allies, accusing them of trying to retroactively void land-development agreements at Disney World to retaliate against the company for opposing the Parental Rights in Education bill that critics call the "don't say gay" law. Disney accused DeSantis and GOP state lawmakers of "weaponizing the power of government to punish private business." Lawmakers approved legislation giving DeSantis control over a board that previously allowed Disney to essentially control local government services at the Disney park. A DeSantis spokesperson did not immediately respond the The Wall Street Journal's request for comment.

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The Wall Street Journal

3. Banks raise lending standards after failures

Many banks have raised their lending standards in response to concerns about the health of regional financial institutions sparked by three large bank failures, according to a Federal Reserve report released Monday. The survey of senior loan officers found that 46 percent of banks said they had taken steps including demanding higher credit scores, requiring collateral, or charging higher interest rates. All the moves would make it more difficult for businesses and individuals to borrow. Banks had already started tightening lending policies in the previous quarter, when just under 45 percent said they had made it harder for people to get loans. A year ago, more banks were easing credit rules than were tightening them.

The Associated Press

4. Canada wildfires disrupt energy production

Wildfires burning out of control in Canada's main oil-producing province, Alberta, are disrupting about two percent of the country's oil production, the equivalent of 185,000 barrels per day, Reuters reported Monday. The province declared a state of emergency over the weekend. The fires also contributed to a drop in Canada's natural gas exports to their lowest level since April 2021, according to data from Refinitiv. Firefighters are battling more than 100 active wildfires across the region, 31 of them burning "out of control." More than 29,000 people have been forced to evacuate their homes due to what officials said was an "unprecedented situation."

Reuters Bloomberg

5. Stock futures fall ahead of inflation data

U.S. stock futures fell early Tuesday as regional bank shares lost ground after gaining in volatile trading Monday. Futures tied to the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were down about 0.4 percent at 6:30 a.m. ET. PacWest shares dropped 8 percent in pre-market trading after the regional bank closed up more than 3 percent on Monday. The three main U.S. indexes were little changed on Monday. Investors are bracing for key inflation reports later this week that could provide fresh hints on the impact of the Federal Reserve's aggressive interest rate hikes to fight inflation.

CNBC