Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 1: We begin in Washington, where Republican Congressman Matt Gates has
Speaker 1: officially moved to topple House Speaker Kevin McCarthy. He has
Speaker 1: filed what's known as a motion to vacate.
Speaker 3: The Gentleman will state the form of his resolution.
Speaker 4: Declaring the office of Speaker of the House of Representatives
Speaker 4: to be vacant. Resolved that the Office of Speaker of
Speaker 4: the House of Representatives is hereby declared to be vacant.
Speaker 1: Congressman Gates cited McCarthy's bipartisan deal to avertic government shut
Speaker 1: down for making this move. Just five ultra conservatives could
Speaker 1: oust McCarthy if every Democrat joins them. McCarthy has to
Speaker 1: call a vote on Gates's motion within two legislative days,
Speaker 1: though the Speaker or his allies could seek a vote
Speaker 1: as soon as today to try to block the maneuver.
Speaker 2: Well Nathan. At least one conservative Republican, Jim Jordan, tells
Speaker 2: us he does not support the move to get rid
Speaker 2: of the speaker.
Speaker 5: I do not support that. I think I think Kevin
Speaker 5: McCarthy's done a good job. I mean, we told the
Speaker 5: America people that we would pass legislation to get rid
Speaker 5: of the eighty seven thousand RS agents. We told the
Speaker 5: American people we'd pass the Printal Bill, rights we did that.
Speaker 5: We told the American people we would pass legislation to
Speaker 5: deal with the energy problem. We told the American people
Speaker 5: we would pass the toughest border security security immigration enforcement
Speaker 5: legislation in history, and we did that.
Speaker 2: Ohio Republic and Jim Jordan made the comments in an
Speaker 2: interview on Bloomberg's Balance of Power. Catch the show weekdays
Speaker 2: at five pm Eastern on Bloomberg Television and get the
Speaker 2: full conversation with Congressman Jordan on the Bloomberg Talks podcast feed.
Speaker 1: Staying in Washington, Karen, President Biden's re election campaign has
Speaker 1: launched a new ad.
Speaker 6: That peace of mind. He's determined to get it back
Speaker 6: because of where he's from and who he is.
Speaker 1: I'm Joe Biden, and I approved this message. The Biden
Speaker 1: campaign helps to reverse the president's poor marks on the
Speaker 1: economy the head of the twenty twenty four election. The
Speaker 1: minute long Spots highlights the president's efforts to lower consumer
Speaker 1: costs well.
Speaker 2: On the either side of the eye, Nathan Donald Trump's
Speaker 2: twenty twenty four campaign is colliding with his legal troubles now.
Speaker 2: The former president appeared in the New York City courtroom
Speaker 2: for opening statements in his civil fraud trial, and he
Speaker 2: wasted little time railing against it.
Speaker 6: There's no here, There's no victim.
Speaker 7: The banks aren't a victim.
Speaker 2: The insurance companies are a victim.
Speaker 5: Everybody gets paid.
Speaker 7: It's a terrible, terrible thing.
Speaker 2: This was for politics, and the former president said the
Speaker 2: judge in the case, Arthur and Goren, should be disbarred.
Speaker 2: Prosecutors say that Trump organization inflated his asset values to
Speaker 2: get better terms from banks and insurance companies and to
Speaker 2: get Trump higher on the Forbes Billionaire's List. New York
Speaker 2: Attorney General Letitia James says she wants to send a message, no.
Speaker 8: Matter how powerful you are, no matter how much money
Speaker 8: you think you may have, no one is above the law.
Speaker 2: The case from Letitia James is scheduled to last almost
Speaker 2: three months, and former President Trump is expected to testify
Speaker 2: late in the trial.
Speaker 1: On other high profile trial begins later today in New York.
Speaker 1: Karen former FTX CEO Sam Bankman Freed. He is accused
Speaker 1: of orchestrating a multi billion dollar fraud. We get more
Speaker 1: from Bloomberg's Kaylee Lines.
Speaker 8: Bankmin Freed is facing seven counts of fraud and money laundry.
Speaker 8: Prosecutors alleged that the collapse of his crypto exchange FTX
Speaker 8: was one of the biggest financial frauds in American history,
Speaker 8: and we'll argue the scheme allowed the thirty one year
Speaker 8: old to spend customer funds on real estate, high risk
Speaker 8: trading investments, and political donations. Bankman Freed has pleaded not
Speaker 8: guilty to all the charges and has said he never
Speaker 8: knowingly committed fraud. If convicted and given maximum sentences, he
Speaker 8: could spend the rest of his life in prison. The
Speaker 8: trial in federal court in Manhattan is expected to take
Speaker 8: up to six weeks. Kaylee Lines, Bloomberg Radio.
Speaker 2: All right, Kayley, thanks, We'll turning to the markets now.
Speaker 2: Stocks are under pressure once again. On hawkish FED Talk,
Speaker 2: several officials bolstered speculation that rates are going higher to
Speaker 2: counter inflation. And here's Cleveland A FED President Lorettamester.
Speaker 9: At this point, I suspect we may well need to
Speaker 9: raise the Fed Fund rate once more this year and
Speaker 9: then hold it there for some time, relate more information
Speaker 9: on economic developments, and assess the effects of the tightening
Speaker 9: at financial conditions that has already occurred.
Speaker 2: Cleveland Fed President Loretta Mester does not vote on monetary policy.
Speaker 2: This year, her colleague FMC hawk Michelle Bowman reiterated her
Speaker 2: call for multiple hikes.
Speaker 1: And it's not just Fed officials talking rate hikes Karen.
Speaker 1: Former Bank of England governor Mark Carney says he expects
Speaker 1: the FED to raise rates again before the end of
Speaker 1: this year.
Speaker 10: If I have to choose a camp, by being the
Speaker 10: camp of I expect that there will be a bit
Speaker 10: more tightening by the Fed, so probably an additional rate
Speaker 10: increase this year.
Speaker 1: Mark Carney made the comments on Bloomberg Television's David Rubinstein
Speaker 1: Show Peer to Peer Conversations. Carne now chairs Brookfield Asset Management.
Speaker 1: He's also been selected to service chair of Bloomberg LP's
Speaker 1: Board of directors.
Speaker 2: Let's turn to technology now, Nathan, because that's what Jamie
Speaker 2: Diamond's talking about. In an exclusive interview with Bloomberg, the
Speaker 2: JP Morgan Chase CEO said thousands of his employees are
Speaker 2: already using artificial intelligence. He says, AI will make your
Speaker 2: mad improvements and workers' quality of life. Even if it
Speaker 2: eliminates some.
Speaker 4: Jobs, technologies always replace jobs. Your children will live to
Speaker 4: one hundred and not have cancer because of technology, and
Speaker 4: literally they'll probably be working three and a half days
Speaker 4: a week. So technology has done unbelievable things from mankind.
Speaker 4: You know, planes crash, pharmacuies get misused. There are negatives.
Speaker 4: This one the biggest negative of my view, is AI
Speaker 4: being used by bad people to do bad things.
Speaker 2: And you can hear more of our conversation with JP
Speaker 2: Morgan Chase CEO Jamie Diamond on the Bloomberg Talks podcast feed.
Speaker 2: Download it wherever you get your podcasts. And it's time
Speaker 2: now for a look at some of the other stories
Speaker 2: making news around the world. For that, we're joined by
Speaker 2: Bloomberg's John Tucker. John, Good morning, and.
Speaker 3: Good morning, Karen. The bill to avoid the weekend government
Speaker 3: shutdown left out six billion dollars in funding for Ukraine,
Speaker 3: and as Bloomberg's At Baxter tells us, President Biden now
Speaker 3: has some work to do with US allies.
Speaker 11: The President says he wants wants to assure the allies
Speaker 11: that the US support will continue. You cannot, under any
Speaker 11: circumstances allow America's support for Ukraine to be interrupted. Too
Speaker 11: many lives of stake, too many children, too many people.
Speaker 11: A call with Allies could happen as early as today,
Speaker 11: and the White House says it will announce an additional
Speaker 11: aid package for Ukraine soon. I'm at Baxter Bloomberg Radio.
Speaker 3: A buying partisan group of US senators hopes to meet
Speaker 3: President Shijingping in China next week. Senate Majority Leader Jack
Speaker 3: Schumer and his Republican colleague, Senator Mike Crapo will raise
Speaker 3: the issue of Micron Technology's ability to do business in
Speaker 3: that country during their trip. The US company faces an
Speaker 3: ongoing probe by the Chinese government's Cybersecurity Administration. President Biden's
Speaker 3: son Hunter will be in a federal courtroom in Wilmington, Delaware,
Speaker 3: today to face charges that he violated federal gun laws
Speaker 3: in twenty eighteen. The President's son is expected to enter
Speaker 3: it not guilty plea to three felony accounts related to
Speaker 3: his twenty eighteen purchase of a handgun at a time
Speaker 3: he was admittedly addicted to drugs. The nine year old
Speaker 3: girl who disappeared during a family camping trip in upstate
Speaker 3: New York was found safe on Monday, New York Governor
Speaker 3: Kathy Hokel saying a fingerprint found on a ransom note
Speaker 3: that was left in a mailbox at the family home
Speaker 3: led authorities to the suspect.
Speaker 12: After some resistance, the suspect was taken into custody, and
Speaker 12: immediately the little girl was found in the cabinet cupboard well.
Speaker 3: The girl appeared physically unharmed when discovered. NBC Sunday Night
Speaker 3: Football drew an audience of twenty seven million viewers, up
Speaker 3: twenty two percent from a year ago. As the rumored
Speaker 3: relationship between Taylor Swift and Kansas City chiefs tightening, Travis
Speaker 3: Kelcey pulled in additional fans that included two million more women.
Speaker 3: Global News twenty four hours a day, powered by more
Speaker 3: than twenty seven hundred journalist and an analysts in more
Speaker 3: than one hundred twenty countries. I'm John Tucker, and this
Speaker 3: is Bloomberg.
Speaker 2: Karen all right, Johns. We bring you news throughout the
Speaker 2: day here on the Bloomberg Radio. But now you can
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Speaker 2: Subscribe to Bloomberg News Now to get the latest headlines
Speaker 2: at the click of a button. Get informed on your schedule.
Speaker 2: You can listen and subscribe to Bloomberg News Now on
Speaker 2: the Bloomberg Business app, Bloomberg dot com, plus apples, Spotify,
Speaker 2: and anywhere else you get your podcasts. Time now for
Speaker 2: the Bloomberg Sports Update with John stash Hour John kre In.
Speaker 7: The night after there was Sunday Night football at MetLife
Speaker 7: Stay in New Jersey, there was Monday Night football, same stadium,
Speaker 7: Giants and Seahawks. Seattle had fourteen to three at halftime.
Speaker 3: We've bent.
Speaker 7: The Giants have been outscored in their four first halfs
Speaker 7: this season, seventy seven to nine. They did have a
Speaker 7: drive going third quarter down fourteen to three. They had
Speaker 7: a fourth and one deep in Seattle territory.
Speaker 2: Seattle looks like they want to rush four.
Speaker 7: Yeah, they do.
Speaker 6: Jones is going to throw throws near.
Speaker 13: Sid full Click up twittero cuts her time count the sideline.
Speaker 13: Joe Chase are gonna be touchback inside pichaf Walckers so
Speaker 13: By Chase, twinerspood part time twenty to see ten Son
Speaker 13: Pea in Holy Jeffish Winners Food win a five one
Speaker 13: half with the interception for a touchdown.
Speaker 7: Seahawks Radio. They wanted twenty four to three to go
Speaker 7: to three and one on the year. The Giants are
Speaker 7: one and three. Baseball postseason begins today four games, starting
Speaker 7: with Texas at Tampa Bay. Those were the two top
Speaker 7: two offensive teams in the American League this season, and
Speaker 7: then it's another American League game with Toronto in Minnesota.
Speaker 7: The Twins have lost their last eighteen postseason games. National
Speaker 7: League begins with Arizona in Milwaukee. It's Miami at Philadelphia,
Speaker 7: the Phillies, where a wildcard team last year ended up
Speaker 7: playing in the World Series. All of these series are
Speaker 7: best of three, and the team that is at home
Speaker 7: gets to stay at home throughout the series. John Stashiewa
Speaker 7: Bloomberg Sports.
Speaker 6: From coast to coast, from New York to San Francisco,
Speaker 6: Boston to Washington, DC, nationwide on SIRISXAM, the Bloomberg Business app,
Speaker 6: and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning,
Speaker 6: I'm Nathan Hager. Will it be better work through technology? Well,
Speaker 6: Jamie diamond says artificial intelligence is already being used by
Speaker 6: thousands of his employees, and it's likely to make dramatic
Speaker 6: improvements in workers' quality of life, even if it does
Speaker 6: eliminate some jobs. The CEO and chairman of JP Morgan
Speaker 6: Chasing Company spoke exclusively with Bloomberg's Emily Chang on the
Speaker 6: sidelines of the Tech Stars Leadership Forum in London, and
Speaker 6: diamond says AI is critical to JP Morgan's future success.
Speaker 4: People have to take a deep breath. Okay, technologies always
Speaker 4: replaced jobs. Your children will live to one hundred and
Speaker 4: not have cancer because of technology, and literally they'll probably
Speaker 4: be working three and a half days a week. So
Speaker 4: technology has done unbelievable things from mankind. But you know,
Speaker 4: planes crash, pharmaceutals get misused. There are negatives. This is
Speaker 4: one of the biggest negative of my view, is AI
Speaker 4: being used by bad people to do bad things. Think
Speaker 4: of cyber you know, Hemmy Kissinger talks about warfare, but
Speaker 4: you know the fact and I do think you know,
Speaker 4: eventually have legal guardrails around. It's kind of hard to
Speaker 4: do because it's new, but it will add a huge value.
Speaker 4: And you know, for JP Morgan, if it replaces jobs,
Speaker 4: and we hope to redeploy people like at First Republic.
Speaker 4: You know, we've offered jobs to like ninety percent of
Speaker 4: the people they accepted. But we also you know, we've
Speaker 4: told them as we some of those jobs are transitory.
Speaker 4: But we hire thirty thousand people a year, so we
Speaker 4: expect to be able to get them a job somewhere
Speaker 4: local and a different branch or a different function if
Speaker 4: we can do that. So, and we'll be doing that
Speaker 4: with any dislocation that takes place as a result.
Speaker 8: AI, I want the Jamie Dimon forecast on the broader economy.
Speaker 1: First it was hurricanes and then it was storm clouds
Speaker 1: in your annual letter, what's the weather now?
Speaker 4: Recept you guys have consistently got this wrong. Okay, I'm
Speaker 4: not giving a forecast. I'm trying to I blame myself.
Speaker 5: Okay.
Speaker 4: The US has been very strong for a while, no surprise.
Speaker 4: Five trillion dollars was pumped in fiscally, you know, three
Speaker 4: trillion or four trillion of QE and now that's being reversed.
Speaker 4: The consumer is still in good shape. There's still spending money.
Speaker 4: They's still have more money than pre COVID. It's spending
Speaker 4: down Home prize is gone for fifteen years. ASCID prize
Speaker 4: are gone for fifteen years, they're in pretty good shape.
Speaker 4: And then the people are talking about deterioration. Credit is
Speaker 4: not to tearing and credit card all time highs, not
Speaker 4: inflation adjusted or GDP adjusted or income adjusted, And yeah,
Speaker 4: it's deterrans We think there's normalizing and corporate credit has
Speaker 4: been quite good. So you have a strong economy. That's
Speaker 4: the here and now, and all the data is a
Speaker 4: little distorted because of COVID and things like that. When
Speaker 4: you ask the question about a forecast, and I don't
Speaker 4: make forecasts, I look out there and say, what are
Speaker 4: the range of outcomes.
Speaker 12: From hurricane to storm clouds?
Speaker 4: No, this is I put it several storm clouds, I said.
Speaker 4: When I said hurricane, I was correcting, said the st
Speaker 4: storm clouds dissipate. I said, no, that one may be
Speaker 4: a hurricane. We don't know what it is. Here's what
Speaker 4: they are. There are two of them that are different
Speaker 4: than other things. So we always have you know, I
Speaker 4: don't worry about the weather, and I honestly, I spend
Speaker 4: a lot of time guessing about the economy, and that
Speaker 4: to me is the sunnier rainier. I don't worry about that.
Speaker 4: We run the company to serve clients, through thick and thin.
Speaker 4: That's what we do to serve governments, to satisfy our regulators.
Speaker 4: And that's all weather. But there are two things which
Speaker 4: are extraordinary today which may have different outcomes. And think
Speaker 4: of them as storm clouds. We don't know if they're
Speaker 4: gonna hit, when they're gonna hit, what they're gonna do, Okay,
Speaker 4: So I'm not predicting that. I'll tell you what I
Speaker 4: worry about. So one is the fiscal money being spent
Speaker 4: is so big, largest in peacetime ever America and kind
Speaker 4: of around the world, with already very high deficits and
Speaker 4: QT we've never had, so I know some people think
Speaker 4: QT will be uneventful. I'm not so sure. At a minimum,
Speaker 4: I expect volatile market it's and then you've got and
Speaker 4: then all the long term fiscal things are kind of inflationary.
Speaker 4: You know, oil prices, certain commodity prices, the green economy,
Speaker 4: you know, the restruction of trade, you name it. I
Speaker 4: see it's ed interflation, not subtracting inflation. So I don't
Speaker 4: think inflationary will be that, you know, keep on coming down.
Speaker 4: It may not, and therefore rates may go higher. But
Speaker 4: the biggest dorm claus. Geopolitical, it's Ukraine, the humanitarian crisis.
Speaker 4: You know, it's a war not far from here. It's
Speaker 4: along six hundred miles, five hundred thousand people killed. It's
Speaker 4: nuclear blackmail. It's going to affect old global relationships in
Speaker 4: America and China trade alliances. We don't know how it's
Speaker 4: going to start either. So I just put those two things.
Speaker 4: Is I keep a close eye on. And then how
Speaker 4: it affects the economy is different. And what I've been
Speaker 4: talking about that is I just tell you be prepared
Speaker 4: for higher rates and slower seven percent?
Speaker 1: Are we really going there?
Speaker 4: And I don't know when I said five percent, they
Speaker 4: said are we going there? Yes, it's possible, you know,
Speaker 4: so I when I talk to my board, I say,
Speaker 4: yeah it can it go to seven percent? The answers, yes,
Speaker 4: are there factors that would drive it, you know, higher
Speaker 4: than you know where it is today? You know four
Speaker 4: four six or four s omptob about ten year bond? Now, Yes,
Speaker 4: is supply and demand could push I yes, I'm just
Speaker 4: saying be prepared for it. And then the worst case
Speaker 4: is stacklation. You know, higher rates because you have a
Speaker 4: booming economy and there's a lot of competition for capital
Speaker 4: is not the same thing as dack clation.
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