Speaker 1: From the Bloomberg Interactive Workers Studios. This is Bloomberg day
Speaker 1: Break for Wednesday, May thirty. First coming up today.
Speaker 2: The debt ceiling deal clears its first major hurdle and
Speaker 2: heads for a House vote.
Speaker 1: Tonight, JP Morgan holds its Global China Summit in Shanghai.
Speaker 1: We have an exclusive interview with Jamie Diamond.
Speaker 2: Elon Musk meets with government officials on the second day
Speaker 2: of his China trip, and here.
Speaker 1: What Campy Woods says is the next to capitalize on
Speaker 1: the AI frenzy.
Speaker 3: There is an arrest in the shooting death of a
Speaker 3: New Jersey councilwoman. Plus North Korea's attempt to launch his
Speaker 3: first spy satellite ends and failure. I'm Michael barr More aheam.
Speaker 4: John stanstowerds War. It's another ten run game for the Yankees.
Speaker 5: That a win at Seattle Code I Sanga pits the
Speaker 5: Mets to a shutout of the Philly.
Speaker 6: That's all straight ahead on Bloomberg day Break, the Business
Speaker 6: news You need to starn your day in just one
Speaker 6: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 6: Business app and everywhere you get your podcasts.
Speaker 2: Good morning, I'm Nathan.
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 4: Let's get you the latest on the debt ceiling deal.
Speaker 2: The agreement between President Biden and House Speaker Kevin McCarthy
Speaker 2: has cleared its first hurdle on Capitol Hill after a
Speaker 2: narrow vote through the House Rules Committee. Now the bill
Speaker 2: heads to the full House for final passage as soon
Speaker 2: as tonight. House Majority Leader Steve Scalise thinks it will
Speaker 2: have enough support to cross the finish line.
Speaker 7: We have a seventy two hour minimum that we allow
Speaker 7: every member to read the bill, and the more that
Speaker 7: people read in this bill, the more they find in
Speaker 7: terms of real conservative victories.
Speaker 2: But conservatives like Texas Congressman Chip Roy are standing firm
Speaker 2: against the deal.
Speaker 8: We will continue to fight it today tomorrow, and no
Speaker 8: matter what happens, there's going to be a reckoning about
Speaker 8: what just occurred unless we stop this bill.
Speaker 2: One other conservative, Dan Bishop of North Carolina, is calling
Speaker 2: for a vote to oust Kevin McCarthy, a speaker over
Speaker 2: this deal. Asked whether he's worried about that, McCarthy answered simply.
Speaker 1: Nope, Nathan, So where will the votes to pass the
Speaker 1: bill come from will. House Minority Leader Hankeing Jeffries says
Speaker 1: Democrats will deliver enough conbind with the Republicans to guarantee
Speaker 1: House passage of the deal.
Speaker 9: We as Democrats are going to make sure that we
Speaker 9: do not default on our nation's debt. America should always
Speaker 9: pay our bills, but it's important for Republicans to keep
Speaker 9: the promises that they've made.
Speaker 1: And House Minority Leader Hankeing Jeffries spoke with Joe matthew
Speaker 1: And and Marie hor Dern on Bloomberg's Balance of Power. Catch
Speaker 1: the program weekdays at five pm Eastern on Bloomberg Television.
Speaker 2: Well, the debt ceilings getting most of the attention Karen,
Speaker 2: relations with China are also in the spotlight this morning.
Speaker 2: Despite their differences, Secretary of State Antonine Lincoln says he
Speaker 2: wants a working relationship with China.
Speaker 10: We are not looking for a new Cold War. We're
Speaker 10: not looking to contain China. I think there's a demand
Speaker 10: signal from countries around the world that both China and
Speaker 10: the United States manage the relationship responsibly, that we take
Speaker 10: every reasonable step to make sure that the competition that
Speaker 10: we're in does not veer into conflict.
Speaker 2: Secretary of State Anthony Blincoln made the remarks in Sweden
Speaker 2: at the EU US Trade and Technology Council earlier this week.
Speaker 2: China declined a US request for the country's heads of
Speaker 2: defense to meet in Singapore, Nathan.
Speaker 1: Two of the world's highest powered CEOs are in China
Speaker 1: this morning. Jamie Diamond is a JP morgan'st China summit
Speaker 1: in Shanghai. He says the bank will be in China
Speaker 1: for both good times and bad. Speaking exclusively to Bloomberg,
Speaker 1: Diamond also says he does not think the US will
Speaker 1: decouple from China.
Speaker 11: Have you asked me over time? Yeah, there'll be less trade.
Speaker 11: You know, it'll take years for these things to take place,
Speaker 11: but it won't be a decoupling and the world will
Speaker 11: go on. I think, like I said, I think far
Speaker 11: more important is what's happening in Ukraine right now.
Speaker 1: And stay with us for more of our exclusive interview
Speaker 1: at JP Morgan's CEO Jamie Dimond that's coming up shortly
Speaker 1: on Bloomberg Daybreak.
Speaker 2: Along with Diamond, Karen Elon Musk is in China as well.
Speaker 2: The Tesla on Twitter CEO is wrapping up the second
Speaker 2: day of his trip to the country where he's been
Speaker 2: meeting with government officials, and we get the details now
Speaker 2: from Bloomberg's John Tucker.
Speaker 8: John, and Musk is just the latest auto big wig
Speaker 8: to say decoupling from China isn't in the cards. In
Speaker 8: a meeting with the Chinese Foreign Minister, Tesla's founders of
Speaker 8: the interests of China and the US are intertwined. A
Speaker 8: government statement cited moss Is saying he's ready to keep
Speaker 8: expanding in that country. The comments run counter to efforts
Speaker 8: by leaders, including President Biden, to help d risk supply
Speaker 8: chains and wean the auto industry off its heavy reliance
Speaker 8: on China for electric vehicle components. Mosk and other auto
Speaker 8: execs apparently didn't get that memo. Just last week, the
Speaker 8: General Motor CEO Mary Barras said she was looking forward
Speaker 8: to working with local partners in China. You know, York,
Speaker 8: John Tucker, Bloomberg Daybreak.
Speaker 1: Right, John, thank you about disappointing economic news out of
Speaker 1: China this morning. Manufacturing activity contracted at a worse page
Speaker 1: than in April, while services expansion eased. Major average in
Speaker 1: Asia all dropped at least one percent.
Speaker 2: Well back here in the US, Karen were just two
Speaker 2: weeks away from the Federal Reserve's next interest rate decision.
Speaker 2: In an interview with The Financial Times, Cleveland FED President
Speaker 2: Loretta Mester said there's no compelling reason to pause interest
Speaker 2: rate increases. At the same time, Richmond FED chief Thomas
Speaker 2: Barkin says he needs signs that demand is cooling to
Speaker 2: be convinced that US inflation will ease. I believe you
Speaker 2: need to bring inflation down by bringing demand down.
Speaker 12: I'm looking to be convinced that demand is in fact
Speaker 12: coming down and that that will then start to bring
Speaker 12: inflation down.
Speaker 2: Richmond FED President Thomas Barkin did not comment on what
Speaker 2: move he's likely to favor at the upcoming policy meeting.
Speaker 1: Well, we turned to the markets now, Nathan, and we
Speaker 1: saw in Video's market valuation cross the one trillion dollar
Speaker 1: threshold that happened yesterday before the stock went on to
Speaker 1: pair gains. No company embodies Wall Street's current obsession with
Speaker 1: artificial intelligence more than in Vidia, but investor Kathy Woods says,
Speaker 1: watch for software providers to be the next winner in
Speaker 1: the AI friends.
Speaker 13: We're onto the next thing. Nvidia is a hardware stock.
Speaker 13: Ensure it has some software, but the history of hardware
Speaker 13: and software is the bigger beneficiary over time is going
Speaker 13: to be software.
Speaker 1: And Kathy Woods flagship Arc Innovation ETF cut it's holding
Speaker 1: it Nvidia on January and has missed out on the
Speaker 1: massive rally.
Speaker 2: Time now to take a look at some of the
Speaker 2: other stories making news in New York and around the world.
Speaker 2: For that, we turned to Bloomberg's Michael Barr.
Speaker 3: Good morning, Michael, Good morning, Nathan. There is an arrest
Speaker 3: in the February first deadly shooting of a New Jersey consulwoman.
Speaker 3: Police in Portsmouth, Virginia arrested twenty six year old Rashid
Speaker 3: Ali Binam with the death of Sayerville council member Eunice
Speaker 3: Juomfor prosecutors say jumfar and bid them we're connected through
Speaker 3: their church. Middlesex County Prosecutor Julanda Secone, the.
Speaker 1: Murder has shaken the community and no arrest.
Speaker 14: We'll bring back the late councilwoman.
Speaker 3: Prosecutor Sacone says surveillance, video, cell phone, DEBTA and electronic
Speaker 3: toll information helped them trace Bynum's route from his home
Speaker 3: in Virginia to New Jersey and back. So far, there
Speaker 3: is no word on a motive North Korea says its
Speaker 3: attempt to put the country's first spy satellite into space
Speaker 3: failed and the rocket crashed into the sea. It sent
Speaker 3: people in Japan and South Korea scrambling for shelter, fearing
Speaker 3: it was a missile. North Korea vowed to conduct a
Speaker 3: second launch. Republican Florida Governor Rond De Santis begins a
Speaker 3: full day of campaigning today with the four stop blitz
Speaker 3: through Iowa. Last night, the Santas kicked off his twenty
Speaker 3: twenty four presidential campaign at a mega church in Des Moines.
Speaker 3: He was asked about the latest debt sealing deal.
Speaker 4: I can tell you this.
Speaker 12: Our nation was careening towards bankruptcy before the debt deal,
Speaker 12: and it will still be careening towards bankruptcy after this
Speaker 12: debt deal.
Speaker 3: DeSantis also fired back at Donald Trump after the former
Speaker 3: president said that then New York Governor Andrew Cuomo handled
Speaker 3: the pandemic better than the Florida governor. The family of
Speaker 3: an eleven year old Mississippi boy who called police to
Speaker 3: help his family and then was shot by an officer
Speaker 3: is now suing the city of Indianola for five million dollars.
Speaker 3: According to the family Darrant Murray called the police in
Speaker 3: regards to a domestic dispute, but was shot by a
Speaker 3: responding officer in his home. Family lawyer Carlos Moore.
Speaker 15: My client, Darren Murray did everything right and nothing wrong,
Speaker 15: and yet he still was shot aunt blank sent Arrange
Speaker 15: in the chest.
Speaker 3: Family lawyer Carlos Moore called it the most egregious case
Speaker 3: of excessive force in his twenty one years of law practice.
Speaker 3: Global News twenty four hours a day, powered by more
Speaker 3: than twenty seven hundred journalist natal us in over one
Speaker 3: hundred and twenty countries. Michael Barr and this is Bloomberg, Nathan.
Speaker 2: Thank you, Michael. Time enough of the Bloomberg Sports Update
Speaker 2: with John Stashauer.
Speaker 5: Thanks Nathan hard delusion. It put up ten runs. Yankees
Speaker 5: won Sunday at the Stadium over San Diego ten to seven.
Speaker 5: They went to Seattle and won Monday ten to four,
Speaker 5: and last night it was ten to two over the
Speaker 5: Mariners three runs of the first inning and Anthony Volpe
Speaker 5: three run homer in the third, Greg Allen Homard and
Speaker 5: the fourth and Aaron Judge in the seventh eighteenth of
Speaker 5: the season. For Judge Isaiah Kiner Fileffa with a big
Speaker 5: night four hits for RBIs Nester Cortez got the winners.
Speaker 5: The Yanks move a season high eleven games over five hundred.
Speaker 3: Tampa Bay lost.
Speaker 5: The Yanks are five games behind Mets.
Speaker 14: Back home.
Speaker 5: They lost their last two in Colorado, giving up twenty
Speaker 5: one runs. At City Field, they gave up two hits,
Speaker 5: a two nothing went over the Phillies with superb pitching
Speaker 5: from Codei Senga and seven innings. Senga allowed one hit,
Speaker 5: no walks, struck out nine. While the Yankees were winning
Speaker 5: in Seattle, so where the Liberty. It was the return
Speaker 5: of Breonna Stewart. She left Seattle as a free agent
Speaker 5: that signed with New York. She scored twenty five points
Speaker 5: against her comer team. Upset at the French Joe for
Speaker 5: the two seed danil medvand had lost five sets to
Speaker 5: a qualifier ranked one hundred and seventy second top seed
Speaker 5: Carlos Alcarez playing his second round match today, as well
Speaker 5: as Novak Djokovic. While the Rangers continue to look for
Speaker 5: a new coach, two teams made hires, Washington naming Toronto
Speaker 5: assistant Spencer carverret Nashville going with Devil's assistant Andrew Burnette.
Speaker 4: Golden State Warriors in a new GM.
Speaker 5: Bob Myers put together teams that won four championships. He's
Speaker 5: resigned after eleven years on the job. The NBA Finals
Speaker 5: beginning tomorrow in Denver, and Miami's Tyler Hero, who's been
Speaker 5: out since mid April. The Broken Hands, says he expects
Speaker 5: to play in the series. Hero average twenty points a
Speaker 5: game in the regular season. John Stashellen Bloodberg sports.
Speaker 6: From coast to coast, from New York to San Francisco,
Speaker 6: Boston to Washington, d nationwide on Sirius Exam, the Bloomberg
Speaker 6: Business Appen Bloomberg dot com.
Speaker 2: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Jamie
Speaker 2: Diamond is in Shanghai today for JP Morgan's China Summit.
Speaker 2: It's the first time the bank's flagship event is being
Speaker 2: held in person since twenty nineteen. It comes as China
Speaker 2: reopens following strict COVID controls, and as tensions appear sky
Speaker 2: high between the US and China. Against that backdrop, we
Speaker 2: sat down for a wide ranging exclusive interview with JP
Speaker 2: Morgan CEO Jamie Dimond. He spoke exclusively with Bloomberg Stephen
Speaker 2: Engel early this morning. Let's listen in to that conversation.
Speaker 12: Now, obviously it's been a few years since you've held
Speaker 12: this in person summit. The last time you and I
Speaker 12: talked was at the last time you held one in
Speaker 12: person in Beijing in twenty nineteen.
Speaker 4: A lot has changed. Why are you willing to go high.
Speaker 12: Profile as a major CEO of a company from America
Speaker 12: when others they want to stay a low profile and
Speaker 12: keep their heads low. How do you assess the US
Speaker 12: Chinel relationship and the impact it's having on business?
Speaker 11: Okay, well, for all thrilled to be back again after
Speaker 11: all this time. And it's important for CEO to visit
Speaker 11: their people and their clients around the world, particularly in
Speaker 11: when you think times a little more complicated, et cetera.
Speaker 11: But I think it's important for the viewership to understand
Speaker 11: there are like three thousand investors here from around the world.
Speaker 11: There are hundreds of companies of Chinese and non Chinese
Speaker 11: companies learning about the world. We do research on five
Speaker 11: hundred companies. That research circulates the world and hopefully business
Speaker 11: could be a you know, could be for good to
Speaker 11: help countries lift up. I have enormous respect for the
Speaker 11: Chinese people. The Martization's countries has been extraordinary, and yes
Speaker 11: there are some very complex issues that have to be
Speaker 11: dealt with.
Speaker 12: At what point does Jamie Diamond have to become the diplomat? Look,
Speaker 12: Joe Biden has not spoken to siegen Ping since November,
Speaker 12: the Bali meeting. Military to military discussions are being rebuffed
Speaker 12: and not even happening. Business to business is tenuous at best.
Speaker 12: What role can you and should you play while you're there?
Speaker 14: Yeah? No, I think I look at a little bit differently.
Speaker 11: So there are conversations took place recently that you know
Speaker 11: have been in the press, which I think you're great.
Speaker 11: I mean it's hard to resolve issues when you have
Speaker 11: the echo chain in your own brain telling yourself what
Speaker 11: you already think. And I think business could be a
Speaker 11: force for good. But I don't represent the government. But
Speaker 11: you know, everyone knows I'm an American patriot, so I'm
Speaker 11: sitting here in China. But I'm a red blooded, full
Speaker 11: throated free enterprise capitalist. And so the governments have to talk.
Speaker 11: Every government has national security in mind, and how do
Speaker 11: they get better announced security? And I should point out
Speaker 11: is that this globe of ours has benefited from trade.
Speaker 11: You know, it's benefited from all these things taking place,
Speaker 11: and so it's lifted and even taking this country.
Speaker 14: You know, they have benefited.
Speaker 11: I know this criticism about the American global system, but
Speaker 11: that American global system has done an extraordinary It's not American.
Speaker 11: You know, if you go to America, a lot of
Speaker 11: Americans complain about NATO and WTO and WHO and the
Speaker 11: United Nations, but it's lifted up. Look what it's done
Speaker 11: for China. I think that the global system has been
Speaker 11: fabulous for China. And they may have complaints about it,
Speaker 11: just like the restros have complaints. But I'm thrilled to
Speaker 11: be here again. You know, you have to go see
Speaker 11: your people and thank your people what they've done, particularly
Speaker 11: through this terrible time of COVID, which I think has
Speaker 11: done a lot of damage to the world in a
Speaker 11: lot of different ways. So getting out is the right
Speaker 11: thing to do.
Speaker 4: Yeah, what is your calculus?
Speaker 12: Has it changed over these four years on how you
Speaker 12: want to expand in China? Obviously you're fully licensed up now.
Speaker 12: You are very productive. During the pandemic, you got full
Speaker 12: jvs and full ventures in securities and the mutual funds
Speaker 12: and futures. You're pretty much well established on the mainland,
Speaker 12: which was your goal, but.
Speaker 4: The things have changed.
Speaker 12: China is not necessarily the be all end all anymore.
Speaker 12: We've had simultaneous crackdowns domestically on the platform economy, on property,
Speaker 12: on the online game, on online education, not to mention
Speaker 12: COVID zero, you have a crackdown on consultancies.
Speaker 4: There's lots of pressure.
Speaker 12: I mean, are you recalculating your growth projection and the
Speaker 12: capability of that growth in China?
Speaker 11: You went through a long list there, which I may
Speaker 11: not wint agree with all of it, but I think
Speaker 11: when we do business the country, and we do business
Speaker 11: one hundred countries around the world, we are there for
Speaker 11: the systems of the country, and we're there hopefully through
Speaker 11: good times and bad times. We tend not to leave
Speaker 11: other than there's war, civil war, and so we're not
Speaker 11: predicting any of that here. You know, obviously it's become
Speaker 11: a far more complex situation. You know, for some for
Speaker 11: good reason, some not for good reason. And you know
Speaker 11: there's risk. There's always going to be risk, and I
Speaker 11: think you'll see companies react to different things for different reasons.
Speaker 14: Some of their own resiliency.
Speaker 11: Some is obviously national security, you know, will trump all
Speaker 11: other things. So you know, our government tells us do
Speaker 11: AB and C. We're gonna do a B and C
Speaker 11: and support it. And I think there's there's a risk
Speaker 11: in China itself that you know, I've met with several
Speaker 11: people here. If you have more uncertainty somewhere caused by
Speaker 11: the Chinese government, well of course it's gonna not just
Speaker 11: change foreign direct investment, which has gone up a little surprisingly,
Speaker 11: and I don't think they should assume that's continue, but
Speaker 11: it's going to change the people here, their own confidence,
Speaker 11: their own ability to invest and do things, and so,
Speaker 11: like I said, if people have deep conversations, respect each other,
Speaker 11: engage properly. I think the American government said all the
Speaker 11: right things recently, which isa. You heard it from Treasury
Speaker 11: Secretary Yellen, You've heard from President Biden, You've heard it
Speaker 11: from National Security Advisor Jake Sullivan.
Speaker 14: You heard it from Secretary as day Tony.
Speaker 11: Blincoln, that this is not decoupling, this is de risking.
Speaker 14: The world's changed a little bit.
Speaker 11: Obviously, they are concerned about the war in Ukraine.
Speaker 14: They should be.
Speaker 11: I think that is probably one of the most serious
Speaker 11: things affecting the future of the globe, and I mean
Speaker 11: the future of glow for the next fifty years. And
Speaker 11: I think they're doing the right things. I'm completely supportive
Speaker 11: of that. And so you know, China's obviously going to
Speaker 11: do what they think is good for itself. And business
Speaker 11: might be a positive attribute, but but national security will
Speaker 11: trump all our issues.
Speaker 14: Now.
Speaker 12: I was just at G seven where we heard a
Speaker 12: lot of that rhetoric where they're de risking, not decoupling.
Speaker 12: But again, you know, the Chinese say it's one and
Speaker 12: the same. It's it's America trying to limit China's rise,
Speaker 12: and you've seen that bifurcation.
Speaker 4: There's more jargon.
Speaker 12: Not to over emphasize all this jargon that's going out there,
Speaker 12: but again, do you see d risking being different from
Speaker 12: decoupling totally?
Speaker 11: I mean, look, you know, Stevie, I look at the
Speaker 11: fact trade actually went up and last year, and and
Speaker 11: I think D risky means national security.
Speaker 14: Everyone's gonna do. Every country's gonna turn out their own way.
Speaker 14: You know.
Speaker 11: Now we're talking about very advanced chips, but kind of reasonable,
Speaker 11: you know, not to help non allies have things that
Speaker 11: can help their military. You know, obviously there are you know,
Speaker 11: rare earths and things like that, so America's going to
Speaker 11: look at that. They were very clear, they tumbautic. They
Speaker 11: used the word, you know, a small garden with high
Speaker 11: walls as opposed to everything, and we should hope that
Speaker 11: let's not make it everything. I think the business Comunity
Speaker 11: is trying to help advise them, and that then there's
Speaker 11: going to be companies doing things just for their own resiliency.
Speaker 11: That's a perfectly reasonable thing to do too. And then
Speaker 11: there's the big one, which is also this constant negotiate
Speaker 11: about trade on fair trade, free access, fair access that's
Speaker 11: been going on with for my whole life about every country,
Speaker 11: and the countries should learn about when they're legitimate concerns
Speaker 11: and when they're not legitimate concerns, and like listen to
Speaker 11: each other deeply and adjust accordingly. So if you ask me,
Speaker 11: over time, yeah, there'll be less trade. You know, it'll
Speaker 11: take years for these things to take place, but it
Speaker 11: won't be a decoupling and the world will go on.
Speaker 11: I think, like I said, I think far more important
Speaker 11: is what's happening in Ukraine right now, and so hopefully
Speaker 11: this will sort out, and it will never sort out
Speaker 11: if people don't talk. So I urge people you have
Speaker 11: some real deep conversation. You get to know each other
Speaker 11: a little bit, a little bit each other's concerns about
Speaker 11: some of these issues, and things would be better we
Speaker 11: had that.
Speaker 12: Well, do you have these conversations as well, because a
Speaker 12: lot of people do try to extrapolate what's happening in
Speaker 12: Ukraine with the potentiality in East Asia with Taiwan. We
Speaker 12: know Warren Buffett has divested completely its investment Berkshire Hathaway's
Speaker 12: investment in Taiwan's semiconductor. There's nervousness and that creates hesitancy
Speaker 12: for investment and fun flows which are down. Obviously trade
Speaker 12: deals are down. Do you see the direct correlation of
Speaker 12: the risks that have risen in East Asia because of
Speaker 12: Taiwan because of what's happening in Ukraine exacerbating that.
Speaker 11: Yeah, I think I'm not an expert on Taiwan, and
Speaker 11: I would defer to Bob Gates and Henry Kissinger about
Speaker 11: how to de escalate that situation and obviously as to
Speaker 11: the tension things like that. But remember this is a
Speaker 11: world issue, but all the country around the world would
Speaker 11: be concerned about Taiwan.
Speaker 14: And the outcome of that.
Speaker 11: I think when Ukraine showed people is that the world
Speaker 11: wasn't safe that you know, oil and gas supply chains
Speaker 11: aren't safe, food, the supply lines aren't safe. You know,
Speaker 11: everyone's starting to relook at what is national security?
Speaker 14: Had Germany important?
Speaker 11: I think it was half of their natural gas from Russia,
Speaker 11: So I think that did cost people. Look at what
Speaker 11: are their alliances, what are their trade what are the things?
Speaker 11: And obviously it's causing a lot of confusion and a
Speaker 11: lot of issues. But hopefully we'll make a lot of
Speaker 11: progress on it. Like I said, that comes with engagement,
Speaker 11: and that comes with you know, the don't want the
Speaker 11: American government and other folks, you know, city down.
Speaker 4: Yeah.
Speaker 12: I don't want to keep on harping on the negative
Speaker 12: side of it, but is there any scenario, the worst
Speaker 12: case scenario that would make your investment, and look, it's
Speaker 12: a sizeable investment in China, make it untenable for you?
Speaker 11: You know, Steve, you're going here, You're going to repeat
Speaker 11: yourself over and over. We're here, We're going to support
Speaker 11: the Chinese people, of the Chinese governments. We do business
Speaker 11: with a thousand companies here. Half are multinationals coming in
Speaker 11: half are local companies. You know, we always have managed
Speaker 11: our risk that we can handle almost whatever happens around
Speaker 11: the world. And I am an American patriot. I will
Speaker 11: do what my government tells me. I'm going to salute
Speaker 11: like anybody else. But I can tell them what I think,
Speaker 11: and you could imagine that I've been very clear when
Speaker 11: I sit down with them what I think and what
Speaker 11: we think matters. And like I said, a lot of
Speaker 11: the business community think could be very helpful in that
Speaker 11: this is not a simple matter, and sometimes we oversimplify
Speaker 11: things in a way which actually damage, you know, the
Speaker 11: ultimate outcomes.
Speaker 12: Will you have an opportunity, Can you reveal whether you're
Speaker 12: going to meet with Lee Cheung, the premier, or any
Speaker 12: of the other senior Chinese leaders, and what would you
Speaker 12: like to get from them.
Speaker 11: I'm me with a very limited amount of Chinese leaders.
Speaker 11: I met with one, but I'll keep that conversation private.
Speaker 11: And like I said, you know, I'm here for our people.
Speaker 11: I'm here for these clients. I think it's great that
Speaker 11: this is taking place. I think humanity is better off
Speaker 11: this type of thing, and obviously national security will reign
Speaker 11: supreme and so. But but you don't stop doing one
Speaker 11: because of the other. And so, like I said, I'm
Speaker 11: thrilled to be here. And it's amazing, which what I've
Speaker 11: seen take place in China the last twenty five years
Speaker 11: partially because of the global system, and I think they
Speaker 11: should be clear about that. And you know, they have
Speaker 11: their own problems here. You know, twenty percent of employment
Speaker 11: on youth. I mean, that's a scary number. And so
Speaker 11: you know, growth, they need growth too, and confidence is
Speaker 11: very important for growth.
Speaker 12: When do you see cross border deal making picking up?
Speaker 12: It's been quite a nator on that front.
Speaker 11: Course, border between China and other people are just globally.
Speaker 12: Right, Well, let's let's talk about China, say China US
Speaker 12: or outbound from China and the like.
Speaker 11: Outbound you know, I don't know the answer to that.
Speaker 11: I think there are always a lot of more conversations,
Speaker 11: you think, and obviously it's been damped a little bit.
Speaker 11: I think America is still open for business. You know,
Speaker 11: Chinese comans is gonna be a little concerned. You know,
Speaker 11: we've we've had siphias for a long time now. But
Speaker 11: I would say we're still joint over for business. And
Speaker 11: if you're in a Chinese company you want to do something,
Speaker 11: you know, look at it, don't back off just because
Speaker 11: you're afraid of something, and you get some advice and
Speaker 11: help and how you go about that the right way.
Speaker 11: But America is still open for business, and I think
Speaker 11: you've heard that from Secretary Yellen, Secretary Blinking and all
Speaker 11: those we still believe in, you know, open and Philly
Speaker 11: free markets.
Speaker 12: Let's pivot to what's happening in the United States. Obviously,
Speaker 12: the debt ceiling impasse is coming to a head, perhaps
Speaker 12: with a House vote coming up.
Speaker 4: Can you kind of tell me.
Speaker 12: What your war room, your debt ceiling warroom is advising
Speaker 12: you on the unintended consequences a of a default or
Speaker 12: even b the ramifications even if a deal is done
Speaker 12: in Congress, on whether that could mean you know, higher rates,
Speaker 12: as well as we head towards a possible mild recession.
Speaker 11: So I, first of all, I think Kevin McCarthy, King, Jefferies,
Speaker 11: the President, Chuck Schumer, mission mcconna all did a great job.
Speaker 11: And I think it's great. This is this is democracy
Speaker 11: and bipartisanship, and I think they did the right thing,
Speaker 11: and I think it's going to happen. If I thought
Speaker 11: it wasn't going to happen, I probably wouldn't be here
Speaker 11: right now. Uh So, And obviously it's got to get
Speaker 11: through a couple of votes in Congress, and our people
Speaker 11: pretty comfortable will happen. You know, I've been We've been
Speaker 11: public for years. If if you actually an actual default,
Speaker 11: it's not good. You know, America, the financial system America
Speaker 11: and the economic economy of America. It's still the most
Speaker 11: prosperous and largest economy of the world I've ever seen,
Speaker 11: the most innovative, the most growing, and the rest of
Speaker 11: the world relies on it, you know, So I think
Speaker 11: we shouldn't create any instability there. So I wish one
Speaker 11: day we'd get rid of the whole debt ceiling thing.
Speaker 11: But I understand, when you know, it's a democracy, people
Speaker 11: have different opinions about what we should be doing, and
Speaker 11: it's just one tool for one party to you know,
Speaker 11: get the other.
Speaker 14: Part of the table.
Speaker 11: So I'm quite optimistic there, and I really do applaud
Speaker 11: the fact that they all sat down and spoke got
Speaker 11: something done.
Speaker 4: What's your read on inflation?
Speaker 12: On when whether the Fed will go beyond the pause
Speaker 12: and hike again.
Speaker 11: You know, my simple view is that their right to
Speaker 11: pause at this point has been a big increase, you know,
Speaker 11: five hundred basis points to so take a pause. But
Speaker 11: I do think it's possible they're going to raise a
Speaker 11: little bit more. Then the inflation is kind of stickier.
Speaker 11: I think people are coming around to that, which means
Speaker 11: race may have to go up a little bit more.
Speaker 11: People should be a little prepared for that. There's just
Speaker 11: as a matter of manage your own business, be a
Speaker 11: little prepared for that, whether you're a financial company or
Speaker 11: a real estate company, et cetera. I think the other
Speaker 11: thing I'd be a little prepared for is the volatility
Speaker 11: that might very well be created by quantitative tightening. We've
Speaker 11: never really had quantitative easying, which we've had now for
Speaker 11: the better part of fifteen years, and now you're going
Speaker 11: to see quantitative tightening, and I think the effects may
Speaker 11: be a little harsher than people expect, but hopefully we'll
Speaker 11: get through all of that and be okay.
Speaker 12: How would you assess the banking crisis whether we're still
Speaker 12: facing a banking crisis? Obviously you come from a very
Speaker 12: interesting purche having taken over a first Republic, do you
Speaker 12: see more pain coming down to what needs to be
Speaker 12: done on the regulatory front to prevent this from happening again.
Speaker 14: Yeah.
Speaker 11: So the first thing is it's nothing like oh wait,
Speaker 11: there's nothing like that.
Speaker 14: Leverage in the system.
Speaker 11: The private the private companies are in actually very good shape.
Speaker 11: The banking system is in pretty good shape. You've seen
Speaker 11: regional banks just report very good numbers. The deposits didn't
Speaker 11: run out like people are talking about. This is nothing
Speaker 11: like that. There are a couple of banks that are
Speaker 11: offside this. That off side is an industraight exposure and
Speaker 11: things like that, First Republic being one of them. We
Speaker 11: were asked by our government to step in and we
Speaker 11: did and we were able to handle it. I'm extremely proud.
Speaker 11: I hope Jen Peepzak and Marion Lake will look at
Speaker 11: me now like what you all have done. Get an
Speaker 11: airplane Sunday night to fly out talk to people. You know,
Speaker 11: obviously it's a lot of work and you know, hard
Speaker 11: for people, but we're trying to show real humanity, you know,
Speaker 11: using redeployment of anyone who lose their job is trying
Speaker 11: to find other jobs. At JP Morgan or elsewhere we
Speaker 11: had the cability to handle it. I think it's also
Speaker 11: a side by the way, because we totally support community banks,
Speaker 11: we totally support regional banks. I would be carefully taking
Speaker 11: what regulations have to be done as opposed to supervision,
Speaker 11: and we want them to do well. So I want
Speaker 11: to be very quite careful people go about that. So
Speaker 11: these this banking system, you know, we acknowledge their community
Speaker 11: banks do a lot of things we can't do. And
Speaker 11: so I think there are a critical part of the system.
Speaker 11: But so is a JP Morgan. You know, we bank
Speaker 11: small companies, large companies. We bank the IMF, the World Bank,
Speaker 11: We bank cities, stools, states, hospitals, We bank companies in
Speaker 11: thirty countries, you know, And so there's a reason that
Speaker 11: you have both large and small and all different types.
Speaker 11: And so I think we're over this part of it
Speaker 11: for the most part. There may be something else, but
Speaker 11: rising rates, if they get high enough, it careers uglyhead again.
Speaker 11: And so I think, like I said, it's not just banks.
Speaker 11: People should be prepared for slightly higher rates than they've
Speaker 11: been used to in the past fifteen years.
Speaker 12: Are there further redundancies necessary associated with First Republic. We
Speaker 12: knew we were going to get a plan from you
Speaker 12: guys by the end of the month. It's the end
Speaker 12: of the month. We know, maybe a thousand jobs cut,
Speaker 12: but there's seven thousand employees.
Speaker 4: There is there anything you.
Speaker 12: Can reveal on what further tightening is necessary as you
Speaker 12: integrate that bank.
Speaker 11: No, you know, they I think the thousand bud it
Speaker 11: was less than what they had planned to do on
Speaker 11: their own. And we need a lot of people, and
Speaker 11: we know we have a lot of you know, we
Speaker 11: hire a lot of people to hear, so I use
Speaker 11: the word redeployment. We're hoping that almost everyone who might
Speaker 11: lose their job, you know, and there might be some more,
Speaker 11: but almost everyone, we could say, hey we have this
Speaker 11: other job for you in the same city, you know,
Speaker 11: or something like that. So you know, we're pretty good
Speaker 11: at that and hopefully we can provide opportunity.
Speaker 14: You know, we welcome the.
Speaker 11: First First Republic people of a company. We're treating them
Speaker 11: with great humanity. I hope we're going to learn a
Speaker 11: lot from them. You know, very often when you have
Speaker 11: to do a do like this, you know, people are angry.
Speaker 14: We're not.
Speaker 11: I've never been part of a company. We didn't buy
Speaker 11: someone to merge someone where you don't learn somebody from
Speaker 11: both sides, and so you know they have this wonderful
Speaker 11: wealth uh business, you know, uh in banking and wealth management,
Speaker 11: and you know we're we have a few things to
Speaker 11: learn to do. I mean, I've never seen I've gotten
Speaker 11: so many emails from very happy customers and that's a
Speaker 11: great thing.
Speaker 14: So what can we learn and what can we do better?
Speaker 14: For JP? Morgan Jayson?
Speaker 12: Now, Jamie, I know last week you talked a lot
Speaker 12: about succession or about your position, that you're not talking
Speaker 12: about retirement right now. I do need to ask you though,
Speaker 12: And your name has been bandied about for years about
Speaker 12: public office. I mean, I don't think Wall Street's too
Speaker 12: pleased about the potential Trump versus Biden runoff next year.
Speaker 12: Is it any has that scenario ever crossed your mind
Speaker 12: that you would run for public office or even accept
Speaker 12: a cabinet position.
Speaker 11: You know, obviously it's crossed my mind because people mention
Speaker 11: things to you and stuff like that. I love my
Speaker 11: country and maybe one day I'll serve my country in
Speaker 11: one capacity or another.
Speaker 14: But I love what I do.
Speaker 11: I think Jadie Moore can do a great job for
Speaker 11: helping Americans, helping countries around the world.
Speaker 14: And this is my job.
Speaker 11: This is what I'm going to do, and I'm quite
Speaker 11: happy doing it. I still have the energy to do it.
Speaker 11: I mentioned you know that when you don't, I think
Speaker 11: people should give up the job if you've got a
Speaker 11: fabulous management team where I really enjoy working with.
Speaker 12: So now I'm here, David Diamond, thanks so much for
Speaker 12: your time.
Speaker 4: I'm Bloomberg.
Speaker 14: Thank you.
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