Speaker 1: Live from the Bloomberg Interact Day Brokers Studios. This is
Speaker 1: Bloomberg day Break for Tuesday, March seventh. Coming up today,
Speaker 1: thousands more job cuts are on the way at Metta,
Speaker 1: Jet Blues proposed takeover of Spirit Airlines, hits Illegal Roadblog,
Speaker 1: a push to ban TikTok could be introduced in the
Speaker 1: Senate today, and Wall Street awaits key testimony from Venchair J. Powell.
Speaker 1: I'm a Me Morris. New York City officials want you
Speaker 1: to take off your mask before you enter a business.
Speaker 1: And Governor Murphy's budget promises increases for schools, but includes
Speaker 1: major budget cuts of John Stans Shower and Swards. The
Speaker 1: giants today need to make a franchise tag decision the
Speaker 1: next tonight go for a tenth straight win. That's all
Speaker 1: straight ahead on Bloomberg day Break, The business news you
Speaker 1: need disturn your day in just one fifteen minute podcast
Speaker 1: each pointing on Apples, Spotify, the Bloomberg Business Appen everywhere
Speaker 1: you get your podcasts. Good morning, I'm Nathan Hager and
Speaker 1: I'm Karon Moscow. Here are the stories we're following today.
Speaker 1: We begin with a Bloomberg News exclusive this morning, thousands
Speaker 1: of job cuts on top of earlier layoffs are on
Speaker 1: the way to Meta platforms, and we get the latest
Speaker 1: live with Bloomberg's Steve Rappaport. Good morning, Steve, Good morning,
Speaker 1: Nathan and Karen. Meta employees who survived the last round
Speaker 1: of layoffs may not be in the clear after all,
Speaker 1: sources tell Bloomberg. Thousands of additional jobs are on the
Speaker 1: chopping block, with the axe coming down as soon as
Speaker 1: this week. The social networking giant in November let eleven
Speaker 1: thousand workers go in the company's first major layoff. Meta
Speaker 1: is reportedly asking directors and vps to make lists of
Speaker 1: workers that are expendable limit to slow down in ad revenue.
Speaker 1: Live in New York, I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,
Speaker 1: Thanks Well, there's also news on the M and a fronto.
Speaker 1: Bloomberg News has learned Jet blues proposed takeover of Spirit
Speaker 1: Airlines has hit some turbulence. We get the latest live
Speaker 1: with Bloomberg's John Tucker. John and Karen's sources say the
Speaker 1: Justice Department I expected to file an anti trust lawsuit.
Speaker 1: All lunching the eliminate Spirit would increase ticket prices and
Speaker 1: decrease options for the flying public. At the same time,
Speaker 1: the Department of Transportation is expanded to try and block
Speaker 1: the Transfers Spirits Airline Operating Certificate. This move to block
Speaker 1: the proposed three point eight billion dollar deal may happen
Speaker 1: as early as today. The Binding administration has been taking
Speaker 1: a more aggressive approach to mergers and acquisitions, with a
Speaker 1: record number of antitrust lawsuits. Line to New York I'm
Speaker 1: John Tucker, Bloomberg Daybreak, Thank you, John. Turning to geopolitics,
Speaker 1: tensions between the US and China remain front and center.
Speaker 1: China's new foreign minister warns the US approach to Beijing
Speaker 1: is a reckless gamble. Chen Gang, speaking through an interpreter,
Speaker 1: says Washington is trying to contain and suppress China fashm.
Speaker 1: The US claims that it seeks to outcompete China, but
Speaker 1: does not seek conflict yet in reality, it's so called
Speaker 1: competition aims to contain and suppress China in all respects
Speaker 1: and get the two countries locked in a zero sum game.
Speaker 1: The new Foreign minister also criticize the use of sanctions
Speaker 1: tied to Russia's war in Ukraine. Meantime, Nathan. The push
Speaker 1: to band Chinese own TikTok is gaining steam on Capitol Hill.
Speaker 1: Senate Intelligence Chairmark Warner is set to unveil a bill
Speaker 1: this afternoon that would let the US prohibit foreign technologies
Speaker 1: like TikTok. Democrat Jake Auchincloss it's on the House Select
Speaker 1: Committee on Strategic Competition with China. We want to create
Speaker 1: shared conviction around a discrete set of policy recommendations that
Speaker 1: seventy percent of Congress can get behind. And I use
Speaker 1: that number because if you get two thirds of Congress
Speaker 1: behind something, it's going to transcend any change in the administration.
Speaker 1: That's how you chart long term strategy. Democratic Congressman Jake
Speaker 1: Auchincloss book with our Washington correspondent Joe Matthew on Bloomberg
Speaker 1: Sound On. Catch the show at it's a new time
Speaker 1: one pm Eastern on Bloomberg Radio, or listen on demand
Speaker 1: wherever you get your podcasts. Well, that's not the only
Speaker 1: issue cropping up on US China relations this morning, Karen.
Speaker 1: The tensions are sparking a change of plans for how
Speaker 1: Speaker Kevin McCarthy's meeting with the President of Taiwan. Bloomberg
Speaker 1: Sad Baxter has the story. McCarthy had planned to travel
Speaker 1: with a US delegation to Taipei to meet with President
Speaker 1: Siing when but the Financial Time says she convinced McCarthy
Speaker 1: to meet in the US instead, rather than potentially inflaming
Speaker 1: and provoking another crisis with China. Size government reportedly shared
Speaker 1: intelligence with McCarthy about threats posed by Beijing, and the
Speaker 1: report says McCarthy said that the ask seemed reasonable. They'll
Speaker 1: meet in California. Si visits the state as well as
Speaker 1: New York. In San Francisco. I'm at Baxter Bloomberg Daybreak,
Speaker 1: all right, and thanks well. Turning to the markets and
Speaker 1: the economy now, while Streets Focus today turns to Washington
Speaker 1: for two days of congressional testimony by Jay Powell. First
Speaker 1: up for the FED Chair the Senate Banking Committee, and
Speaker 1: we get a preview from Bloomberg Economics correspondent Michael McKee.
Speaker 1: Timing is everything, and the FED chair doesn't seem to
Speaker 1: have it. Officials have been saying they are data dependent,
Speaker 1: yet three of the biggest data releases that will influence
Speaker 1: the decisions don't come until after he testifies Tuesday and Wednesday,
Speaker 1: Paul is likely to point out the labor market remains
Speaker 1: very tight, a judgment they hang on the Jolts report
Speaker 1: out Wednesday. FED officials have forecast job growth will slow
Speaker 1: and unemployment rise as rates go up, but the job's
Speaker 1: numbers aren't out until Friday. Of course, their focus is
Speaker 1: on inflation, but the latest data on consumer prices don't
Speaker 1: come out until next week. Given that, Paul is likely
Speaker 1: to stick to the Fed's working script, rates still need
Speaker 1: to go higher and stay up longer, but he won't
Speaker 1: be able to tell Congress how high or how long.
Speaker 1: Mike McKie Bloomberg Daybreak, All right, Mike, thanks, The boss
Speaker 1: of JP Morgan Chase says the FEDS still has work
Speaker 1: to do to control inflation. That's one of several takeaways
Speaker 1: from Jamie Diamond. We spoke exclusively with the JP Morgan
Speaker 1: CEO yesterday. Mild recessions possible, Harder recessions possible. I think
Speaker 1: is a good chance that inflation will come down, but
Speaker 1: not enough by the fourth quarter. May actually have to
Speaker 1: do more. JP Morgan Chase CEO Jamie Diamond says the
Speaker 1: war in Ukraine and relations with China are among the
Speaker 1: top concerns facing the global economy. Stay tuned for more
Speaker 1: of our exclusive interview coming up shortly on Bloomberg Day Break. Well, Nathan,
Speaker 1: We're also hearing from another banking boss this morning. Bank
Speaker 1: of America CEO Brian moynahan says Wall Street has quote
Speaker 1: some work to do before using popular technologies such as
Speaker 1: chat GPT. Monahan's comments to the a Fur Business Summit
Speaker 1: in Sydney, Australia, with the first he's made publicly on
Speaker 1: the use of artificial intelligence. He recently told employees they're
Speaker 1: prohibited from using such AI technology for business and straight
Speaker 1: to had your local headlines and this is Bloomberg. It's
Speaker 1: thirty three degrees in New York, cloudy this morning. Any
Speaker 1: light snow will end. It'll be sunny, breezy today with
Speaker 1: a high near forty five, partly cloudy and breezy tonight.
Speaker 1: On our way back to near thirty time now to
Speaker 1: take a look at some of the other stories making
Speaker 1: news in New York and around the world. For that,
Speaker 1: we're joined by Bloomberg's Amy Morris. Good morning, Amy, Good morning, Nathan,
Speaker 1: And you mentioned the snow. It's going to be a
Speaker 1: slushy commute into the city this morning after that light
Speaker 1: snow overnight. We get those details from Bloomberg meteorologists Rob
Speaker 1: Carolyn Amy. The light snow that fell across the Tristate
Speaker 1: area overnights in the process of ending. Most areas have
Speaker 1: picked up under an inch, but with temperatures at or
Speaker 1: below freezing, it's been able to put a coating on
Speaker 1: the roadway and want to take it slow. With sunshine
Speaker 1: forecast to develop, it means the ride home should be
Speaker 1: much better than the ride was in this morning. Amy,
Speaker 1: all right, thank you, Rob. And New York City officials
Speaker 1: doubling down now on calls for customers to remove their
Speaker 1: masks before entering a business. New York City Mayor Eric
Speaker 1: Adams called on shop owners to require customers to take
Speaker 1: off those face masks when they enter their stores to
Speaker 1: help cut down on retail crime that surged since the pandemic.
Speaker 1: NYPD Chief Jeffrey Madgery says New Yorkers have an obligation
Speaker 1: to ensure store clerks feel safe, adding that once someone
Speaker 1: does show their face, they can put their mask back
Speaker 1: on if they want to. Governor Phil Murphy says his
Speaker 1: new budget features a billion dollar increase in aid to schools,
Speaker 1: but some district officials across New Jersey face major cuts
Speaker 1: to their budgets. Tom's River Regional School Superintendent Michael Sida
Speaker 1: says his district faces up to a fourteen point four
Speaker 1: million dollar funding cut, far beyond the two point eight
Speaker 1: million dollar cut he'd expected. He calls the expected budget
Speaker 1: cut a fiscal apocalypse. Dozens of other districts expect to
Speaker 1: lose up to twenty five percent of their state aid
Speaker 1: in a new budget. US officials are searching for four
Speaker 1: Americans caught in a shootout and kidnapped in Mexico. State
Speaker 1: Department spokesperson Ned Price. We're standing ready to provide all
Speaker 1: appropriate consular assistance. We do also remind Americans about the
Speaker 1: existing travel guidance when it comes to this particular part
Speaker 1: of Mexico. The travel advisory for Tamalipa State remains at
Speaker 1: level four, Do not travel. State Department spokesman Ed Price
Speaker 1: says the FBI is working with other federal partners and
Speaker 1: Mexican law enforcement agencies to investigate. At least seven witnesses
Speaker 1: have met with prosecutors and what now appears to be
Speaker 1: a fast moving investigation into a twenty sixteen hush money
Speaker 1: payment to a porn star. New York Times reports former
Speaker 1: Trump eight Hope Hicks met with the Manhattan District Attorney's
Speaker 1: office yesterday. It is not clear if the prosecutor will
Speaker 1: seek to indict the former president. Global News twenty four
Speaker 1: hours a day, powered by more than twenty seven hundred
Speaker 1: journalists and analysts in over one hundred twenty countries. I'm
Speaker 1: Amy Morris, and this is Bloomberg Nathan. Thanks Amy. Time
Speaker 1: to the Bloomberg Sports Update, brought to you by Trice
Speaker 1: stayed out. Hey. Good morning, John Stenshower, Good morning night.
Speaker 1: Today's a big day in the Giants offseason. There's a
Speaker 1: deadline of four o'clock for teams to decide who are
Speaker 1: to use a franchise tag on I would keep a
Speaker 1: player from becoming a free agent. The two biggest names
Speaker 1: on the team, Daniel Jones Saquon Barkley, both potential free agents.
Speaker 1: If they tagged Jones, he'd make thirty two million dollars
Speaker 1: next season. Barkley may very well then move on if
Speaker 1: they can signed Jones to a long term deal word
Speaker 1: wars Jones's first offer was for forty five million years,
Speaker 1: then they may well tagged Barkley. The Jets still need
Speaker 1: a quarterback because Derek Carr, who met with the Jets,
Speaker 1: decided instead to sign with New Orleans four years, one
Speaker 1: hundred and fifty million. Another potential QB might have been
Speaker 1: Geno Smith, the former Jet who flourished last season in Seattle.
Speaker 1: He staying with the Seahawks, and Aaron Rodgers has still
Speaker 1: not made his decision on whether he wants to keep
Speaker 1: playing and if so, in Green Bay or perhaps elsewhere.
Speaker 1: Nickson the Horners tonight at the guard Nick's going for
Speaker 1: a tenth win in a row. It's their longest wind
Speaker 1: streak in a decade. The Celtics a night after that
Speaker 1: double overtime loss to the Knicks when they blew a
Speaker 1: fourteen point second half lead, blew another fourteen point second
Speaker 1: half lead, lost again in overtime in Cleveland. The Calves
Speaker 1: are a game and a half ahead of the Knicks,
Speaker 1: fourth place in the East College Hoops. Hofstra had a
Speaker 1: great season, winning twenty four games, but a likely season
Speaker 1: ending loss in overtime semifinals of the Colonial Tournament in Tampa.
Speaker 1: Three run home for Aaron Judge. NAKs beat the Pirates
Speaker 1: nine to two. New met pitcher Jose Quintana has a
Speaker 1: rib cage injury. He has pulled out of the upcoming
Speaker 1: World Baseball Classic. He wants to pitch for his native Columbia.
Speaker 1: It's not known if Kntana will be okay by opening day.
Speaker 1: John Stash at Bloomberg Sport live from coast to coast,
Speaker 1: from New York to San Francisco, Boston to Washington, d C.
Speaker 1: Nationwide on Sirius XAM, the Bloomberg Business app, and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar.
Speaker 1: Geopolitical concerns, they are front of mind for Jamie Diamond,
Speaker 1: the JP Morgan Chase CEO, spoke with Bloomberg's Ed Hammond
Speaker 1: in an exclusive interview at the JP Morgan Global High
Speaker 1: Yield and Leveraged Finance Conference in Miami. Diamond discussed the
Speaker 1: possibility of operating in Russia again, the role of business
Speaker 1: plays in politics, and how Jamie Diamond sees the consumer
Speaker 1: fairing in an uncertain year ahead. What are you worried about?
Speaker 1: They are I'm worry the most about. If you go
Speaker 1: it's Ukraine, soil gas, so the leadership of the world
Speaker 1: and you know our relation with China. I mean that
Speaker 1: is much more serious though the economic by rations we
Speaker 1: all have to deal with on a day to day basis.
Speaker 1: On the Ukraine question that we talked about it a lot,
Speaker 1: obviously a year ago, very shortly after the world had started.
Speaker 1: Do you think now a year in the West has
Speaker 1: become somewhat and neured to the idea of a conflict
Speaker 1: to this scale on it sports and it's so does
Speaker 1: that marry it? Yeah? No, it looks a little bit
Speaker 1: like people are nearer to it. But I think that's
Speaker 1: a little bit of mistake. I read a report the
Speaker 1: other day that there when the war goes to one year,
Speaker 1: it lasts normally last ten. But this is a major
Speaker 1: landmar in Europe and a freedom democratic nation. You know,
Speaker 1: the hundreds of thousands of casualties are ready on both sides,
Speaker 1: And so I think this we don't know how this
Speaker 1: is going to end, we know what direction is gonna taken,
Speaker 1: and it's affecting global relationships. So Ukraine, Russia, then this
Speaker 1: oil gas food of how it's hurting poorer countries, and
Speaker 1: it's royally trade relationships between America, China and the rest
Speaker 1: of the world. So this is a probably the most
Speaker 1: serious geopolitical thing we've had to deal with since World
Speaker 1: War Two. We'll see a future cha people could potentially
Speaker 1: re enter the Russia market as a business. I mean
Speaker 1: a very premature to say, you know, I think if
Speaker 1: there is a one day maybe, but it's very possible.
Speaker 1: That woman happened our lifetime. And you mentioned US China
Speaker 1: relations obviously not at their best right now, partake any
Speaker 1: posts the balloons. I wonder what role you see business
Speaker 1: playing in trying to sort of moderate those relations and
Speaker 1: try and keep them as good as possible. Well, you know,
Speaker 1: it's really the government. The government has to set the
Speaker 1: rules and fear what they want to do. But I
Speaker 1: think it's a fair complaint about government and business that
Speaker 1: we probably should have started resetting this ten years ago
Speaker 1: and we didn't. I don't like a choir with billed
Speaker 1: milk and all that. But going forward, the government and
Speaker 1: I think they're doing a good job thinking through what
Speaker 1: is national security? So I think it's semiconductors or penicillian,
Speaker 1: there are certain drugs, what is unfair trade? And then
Speaker 1: you know, at one point sit down and have a
Speaker 1: very serious conversation with the Chinese government. Remember Secretary Blincoln
Speaker 1: was on his way over there to do that and
Speaker 1: then the balloon. But at one point they'll do that,
Speaker 1: and business is a purple player in that. So I
Speaker 1: think I think physical help give advice on how to
Speaker 1: do things. If you're gonna have an outbound investment controls
Speaker 1: how you said that way that works, that's a huge deureaucracy,
Speaker 1: and so so far all the conversation would be quite
Speaker 1: irrational about it. I mean, Champion Morgan obviously has a
Speaker 1: significant business in China. I'm sure that the government that
Speaker 1: would listen to you. What are the conversations you have
Speaker 1: just about sort of trying to, as I say, trying
Speaker 1: to maintain as couldial relations as possible between the two nations.
Speaker 1: I mean for us where they are, and like I said,
Speaker 1: you know, we're basically taking a backseat to an American
Speaker 1: government in this one, and we're gonna we obviously have
Speaker 1: to do whatever the American government asked us to do,
Speaker 1: and we're trying to engage in their courage of their
Speaker 1: own government and with the Chinese government of what those
Speaker 1: things should be. You know, I'm hoping Coola has prevailed here.
Speaker 1: But this is why Ukraine is so important. This can
Speaker 1: cause it to go in a direction rather quickly. So, uh,
Speaker 1: you know, everyone's got to be some little cautions. You
Speaker 1: talk about a government, let's talk about the FED for
Speaker 1: a moment. Obviously, I just want to talk about the
Speaker 1: FED for a moment. I have comf a dozen physaic
Speaker 1: questions I can ask you about the FED. I think
Speaker 1: I know the answer to many of them. Start trying
Speaker 1: to fight. One fairly easy one is, you know, when
Speaker 1: do we get to say we're landing be that hard
Speaker 1: landing on a soft landing, So when does that again
Speaker 1: into a cup? You know, Forecasting the futures, as you know,
Speaker 1: very complicated in the consumer still has a lot more money.
Speaker 1: They're checking accounts than before COVID. They're spending ten percent
Speaker 1: more than last year, forty percent more than pre COVID,
Speaker 1: and it looks like they'll have excess point to spend
Speaker 1: roughly until the end of the year. And at that
Speaker 1: point or you can aid it a little bit of
Speaker 1: a cliff as a soft landing. And also QT has
Speaker 1: nar start to bite that also is gonna happen at
Speaker 1: one point, probably later this year, and you know that's
Speaker 1: when you're gonna know what these things do. But you
Speaker 1: we can still have a soft landing. The the other
Speaker 1: thing about all this economic forecast in his Russia Ukraine,
Speaker 1: I mean that can change it dramatically and very very quickly.
Speaker 1: Do you think absent Russia Ukraine we will have a
Speaker 1: soft blending. I think it's still possible, but I would
Speaker 1: I look at possibilities. It's still possible, possible, Mild recessions, possible,
Speaker 1: harder recessions possible. I think it's a good chance that
Speaker 1: inflation will come down, but not enough by the fourth
Speaker 1: quarter that FED may actually have to do more. And
Speaker 1: I think a lot of the things that have happened
Speaker 1: in the world, think of the bigger trends are inflationary,
Speaker 1: you know, infrastructures, bending the IRA act less, any trade
Speaker 1: with you know, certain parts of the world, bringing trade
Speaker 1: back into America. Those things are all the green and
Speaker 1: transition is going to take a lot of capital to
Speaker 1: all those things kind of have inflatier attributes that are
Speaker 1: very different than we've been through the last twenty years.
Speaker 1: I'm gonna come back to the consumer point in a second,
Speaker 1: but last year you talked about it, and you'll let
Speaker 1: this sort of confluence of three major effects. It's QT,
Speaker 1: America rebounding from a sort of CD of the economy
Speaker 1: fatally strongly, and then oversee the wall as well. You
Speaker 1: talked about them sort of leading us into an unprecedented period.
Speaker 1: How do we get out of that period? You know,
Speaker 1: it's it's diplomacy. I mean, that's why this is not
Speaker 1: you know, we always talk about uncertainty and the economy
Speaker 1: and the incertainty, but I call it normal uncertainty. The weathers,
Speaker 1: you know, we know what the weather's like. That's why
Speaker 1: these things are different. QT are coming out of COVID,
Speaker 1: the war in Ukraine. I think it's been pushed out
Speaker 1: a little bit further. I would have thought we'd be
Speaker 1: dealing with this a little bit sooner, but it does
Speaker 1: look like some of that stuff it's coming to fruition
Speaker 1: at the end of this year. Russia Ukraine, we sussificly
Speaker 1: don't know. I think it's wrong. It's didn't predict because
Speaker 1: if you look at the history of wars, they've been
Speaker 1: pretty much unpredictable and how they play out and which
Speaker 1: ones affect the global economy, and how they took a
Speaker 1: lot of wars they didn't affect the global economy, but
Speaker 1: they were literally in very small parts of the economy.
Speaker 1: This is not in a small part of the economy.
Speaker 1: And this is a European nation. It's Russia, and it's
Speaker 1: oil and you know, major oil and gas supply and
Speaker 1: food supplier around the world. So this is a whole
Speaker 1: different attribute to it. But then why does the consumer,
Speaker 1: particularly here in the US, remain as you say, fairly
Speaker 1: bullish there Over a period of time, your home price
Speaker 1: has been going up, Jobs are plentiful ways of going
Speaker 1: up to the lower end, which I think it's a
Speaker 1: good thing. They've got a lot of money to checking account.
Speaker 1: You know, uh, stocks have generally been had gone up
Speaker 1: for ten or fifteen years. The consumers, if you look
Speaker 1: at it today, in great shape. But I'm telling you
Speaker 1: that's going to end at one point. But even if
Speaker 1: we go to recession, then the consumer is entering a
Speaker 1: recession in better shape, far better shape than they didn't
Speaker 1: know way, you know, no way, when we went to
Speaker 1: that recession, not only did unemployment go through the roof,
Speaker 1: but their home prices are dropping dramatically, jobs are disappearing,
Speaker 1: the stock markets way down. So this one is a
Speaker 1: little bit better than that one. Of the So the
Speaker 1: narratives said it's fairly popular with the monment. The consumer
Speaker 1: doesn't like consptancy. I would even got us saying it's
Speaker 1: sort of one of these false axioms that you know,
Speaker 1: the people that thought, now that you know, when it's
Speaker 1: times are uncertain, it could seem the freaks out. They
Speaker 1: stopped spending, they stopped doing the things that the consumer
Speaker 1: needs to do to keep the economy going. That doesn't
Speaker 1: seem to be the case here. The consumer's done pretty
Speaker 1: well through uncertainty, through COVID, through the wall, through everything else.
Speaker 1: So I wonder what when we get to this point
Speaker 1: of you know, the wallet being hit and the consumers
Speaker 1: saying we're gonna stop spending. Is it just reality catching
Speaker 1: up with them? This is some kind of distraction point
Speaker 1: or is it just that they run out of money?
Speaker 1: Area is destroyed by COVID, including quote uncertainty. So you're
Speaker 1: outcomes a correct The confidence consumer covers is dropping it.
Speaker 1: But I think your pocketbook trump's confidence. But they have
Speaker 1: a lot of money, they tend to spend it, and
Speaker 1: they you see here like look at the travel in
Speaker 1: Miami and the building and the optimism around. But if
Speaker 1: you ask me how they're doing. It's very good. And
Speaker 1: then they they're not comed by the economy. So jobs
Speaker 1: are plentiful, wages are going up. I mean, what, that's
Speaker 1: what's really affecting them. You know, when they wake up
Speaker 1: the morning, they feel pretty good about that, and then
Speaker 1: they read the paper and of course you can get
Speaker 1: a little depressed. And at the end of this year
Speaker 1: or towards the end of this year, that sort of
Speaker 1: begins to tell it looks it looks like the excess
Speaker 1: casual re disappearing. And then but the jobs are still there,
Speaker 1: so you could that's why you saying you could have
Speaker 1: a softmanded zone now. Jeffrey Epstein obviously his specter continues
Speaker 1: to haunt the global elite, and most recently JP Morgan
Speaker 1: have been sort of caught up in it. How has
Speaker 1: that made you feel? You know, I can't talk about litigation,
Speaker 1: but you should. You should know that a JP more,
Speaker 1: we got top experts, including some of the best people
Speaker 1: that come out of the DOJ, etc. Who review and
Speaker 1: make judgment decisions like this and were they generally do
Speaker 1: a very good job. But how does it make you feel?
Speaker 1: It's the CEO of J K Morgan as a figurehead
Speaker 1: for the bank. It's unfortunate, but it's life. And look,
Speaker 1: we're here in Florida. We have to talk about politics
Speaker 1: because we always talk about politics. Obviously we're into sensus
Speaker 1: his backyard. What do you make of if you like
Speaker 1: hands on approach to business and is that something you
Speaker 1: would like see more of in even higher office? On
Speaker 1: approached the sense? Yeah, Look, you know, like I've learned
Speaker 1: and listen and read and stuff like that. You know,
Speaker 1: it has got a little complicated between business and government
Speaker 1: and stuff like that. But but you know, anyone here
Speaker 1: knows that I'm a full throated, red blooded American patriot
Speaker 1: supporter free enterprise. So you know, I hear the complains
Speaker 1: on both sides. I didn't, but you know, you listen
Speaker 1: and learn from that. I don't worry that much about it.
Speaker 1: And we've been We've loved Florida. We're growing in Florida
Speaker 1: left and right. You know, small businesses, large companies, we've
Speaker 1: got I've got had many total employees we have for you.
Speaker 1: I'm on my way to Tampa. We've got you know,
Speaker 1: major operations there Orlando, major operations were opening branches and
Speaker 1: so the mayor just joined us in a small business
Speaker 1: that we did here. We're very pro pro Florida. And
Speaker 1: this is long dated Florida. This isn't part of the
Speaker 1: sort of recent infects of capital in Florida. Financial wild
Speaker 1: and are in the past. I think they've been great.
Speaker 1: I mean, you know, if you were running the state,
Speaker 1: you know you should be thinking, how can I make
Speaker 1: this date off good? Well off my people. So Florida
Speaker 1: likes business. They want you to come here. You come
Speaker 1: to Florida, you see the optic Texas is the same way.
Speaker 1: You know if I was some other states. If you
Speaker 1: think about why do people like going to these states,
Speaker 1: it's their taxes, is their pro business. They want got
Speaker 1: a life for their people. It's not necessary some of
Speaker 1: the pods we've talked about. So you know, we now
Speaker 1: have more employees in Texas than the New York state. Yeah,
Speaker 1: it should have been that way, but Texas loves to
Speaker 1: be there. I mean you go through their optimistic they're
Speaker 1: optimistic here, pro American, optimistic, pro business. No. Unfortunately, No.
Speaker 1: Every year there's a sort of tech topic to Jo
Speaker 1: that we talked about last year as a Metaverus and
Speaker 1: I think we talked briefly about you appearing in a
Speaker 1: non physical form in the lobby of the mets verse
Speaker 1: these here it's UTAI. I asked chat TPT what I
Speaker 1: should ask Jamy Diamond. I was hoping you would come
Speaker 1: out with the really smart AMS. Huh. I wouldn't to
Speaker 1: write any of my questions. I can get it too
Speaker 1: the whole interview for me, So so it didn't. Unfortunately,
Speaker 1: it asked what would I ask Jamie Diamond about AI
Speaker 1: and what it meant for the future of the investment?
Speaker 1: King a go, So AI is real. This is not cryptotus,
Speaker 1: that's not crypton. This is a technology which is staggering.
Speaker 1: We already lose three hundred AI. We have thousands of
Speaker 1: people involved, thousand involved data, machine learning, natural language processing.
Speaker 1: We have two hundred people in AI research labs. But
Speaker 1: we're already used to do risk fraud, marketing, prospecting, and
Speaker 1: it's the tip of the iceberg. So you know, to me,
Speaker 1: this is this is extraordinary. And the other thing to
Speaker 1: keep in mind there's good use, but bad guys are
Speaker 1: gonna use it too. So it's a little bit of
Speaker 1: arms race and how you have to use it to
Speaker 1: protect your company, protect your clients, protect data, etc. And
Speaker 1: we're fully engaged. The other thing you have to keep
Speaker 1: about AI. You need to be in the cloud to
Speaker 1: use the compute power fundamentally that you need for AI.
Speaker 1: And so that's why the cloud digital AI they all
Speaker 1: kind of related that way. What was behind the decision
Speaker 1: to ban chap gpt on on the trading foot on
Speaker 1: company owned devices, that's why you were doing your own device.
Speaker 1: But we also lab people use it within our own firewalls,
Speaker 1: so we didn't take it away just you have to
Speaker 1: go within our firewall to use it, And it was
Speaker 1: just for control purposes and risper. There's no wasn't a
Speaker 1: staving of any time before we end up. I want
Speaker 1: to get onto leverage finance obviously, that's in large part
Speaker 1: why we hat it's talk about the conference. One of
Speaker 1: the things stamping Morgan stilling at the moment, it's very
Speaker 1: interesting is lending from its own balance sheet and direct
Speaker 1: lending if you like. At the moment, I think it's
Speaker 1: ten million dollars is what's been allocated. How big can
Speaker 1: that business gap? So you know, I mean it's amazing,
Speaker 1: And this is when you look at something like this
Speaker 1: for reviewers, American capitalism. There are two thousand investors here
Speaker 1: from around the world, hundreds of companies still inventing ideas
Speaker 1: and growing and expanding both the US and overseas. It is,
Speaker 1: it is extraordinary. So direct lending. You're obviously one of
Speaker 1: the biggest lenders out there, but a lot of people
Speaker 1: here are also huge lenders. So you know, I meet
Speaker 1: with them all, and you know, direct lending away from
Speaker 1: banks to become equally in size, and not to think
Speaker 1: of those healths as competitives there and there. You know
Speaker 1: that's a lot, but we deal with competitors and collaborators
Speaker 1: all the time. So we do direct lending and all.
Speaker 1: It is fundamental for your viewers, you know, unitron quicker,
Speaker 1: more flexibility, and certain type of coverties not necessarily cheaper
Speaker 1: for the bar or by the way, so you gotta
Speaker 1: look at it all things. So we've done I think
Speaker 1: ten million forty deals. We can do a lot more,
Speaker 1: and you know, we can work with partners or some
Speaker 1: of the deals, et cetera. But we'll do what we
Speaker 1: need to do to compete. It's feel somehow pass to
Speaker 1: ask you about succession. You get asked about it all
Speaker 1: the time. I'm not going to do that, But I
Speaker 1: am interesting. You talk a lot about the need for
Speaker 1: sort of unified responses to global conflict. You talk a
Speaker 1: lot about things that are needed domesticy, whether it's a
Speaker 1: better health, better education, raising wage and equality or reducing
Speaker 1: I should say wage and equality. It seems very olfviousity.
Speaker 1: You could go in to public office if you chose
Speaker 1: to when you leave, Jaki Molan, this has something we
Speaker 1: can expect. I'm not going to go to public service.
Speaker 1: I love what I do here. You mentioned succession, enjoy it.
Speaker 1: I think you should practice it a little bit before
Speaker 1: you go into it. And I I mean I feel
Speaker 1: I do. Here's a huge contribution to my country, my
Speaker 1: clients around the world, etc. And the other thing about
Speaker 1: succession got you. You guys already know who that we
Speaker 1: have a lot of potential successors, so you can add
Speaker 1: right about it frequent exactly, so you know I couldn't
Speaker 1: add to that you already know. This is Bloomberg day
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