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Speaker 1: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 1: are the stories we're following today.
Speaker 2: We begin in the Middle East, where Israel is now
Speaker 2: carrying out a raid on Gaza's main hospital, Alshifa. The
Speaker 2: Israeli military calls it a targeted and precise operation against Hamas,
Speaker 2: but it could add to growing concerns among allies about
Speaker 2: civilian casualties. Sources tell Bloomberg News the White House is
Speaker 2: getting more frustrated with Israel's handling of the war and
Speaker 2: ignoring what the Biden administration calls difficult conversations. But Israeli
Speaker 2: government spokesman Alon Levy says he is still confident of
Speaker 2: US support.
Speaker 3: Israel and the United States a completely in lockstep on
Speaker 3: the goals of this operation, which is that Hamas must
Speaker 3: be defeated. President Biden has been very clear from day one.
Speaker 3: We have been very grateful to him for his moral,
Speaker 3: material and diplomatic leadership in saying that Israel has every
Speaker 3: right and every duty to go after Hamas and destroy
Speaker 3: that terror group and eliminate that threat. That is the
Speaker 3: only way we can make sure another October seventh massacre
Speaker 3: doesn't happen.
Speaker 2: Alon Levy tells Bloomberg Radio Israeli troops are delivering medical
Speaker 2: aids of the hospital. He says this operation won't be
Speaker 2: the end of Israel's war with Hamas well.
Speaker 1: Nathan al Shifa Hospital has now been without power and
Speaker 1: water for days. Manir al Bersh is from the Hamas
Speaker 1: run health ministry, and he says newborns are being moved
Speaker 1: to improve their chances because of.
Speaker 4: Shortage of electricity. They have gathered them.
Speaker 5: All and put them on those bids together so that
Speaker 5: they can have some more tem bricher. You know, the
Speaker 5: winter is getting inside now Gazza. Without having a proper
Speaker 5: temperature for them.
Speaker 4: They immediately die.
Speaker 1: The UN says only one hospital in northern Gaza is
Speaker 1: still operational at a minimum level.
Speaker 2: Back here in the US, Karen, we're following another major
Speaker 2: story this morning. The threat of a government shutdown is easing.
Speaker 2: The House has passed a temporary funding bill, and we
Speaker 2: get the latest from Bloomberg's Amy Morris in Washington.
Speaker 6: It is a two part measure that would fund some
Speaker 6: parts of the government through January nineteenth and others through
Speaker 6: February second, which sets up the possibility of another shut
Speaker 6: down deadline on Groundhog Day. Democrats bailed out the Republican
Speaker 6: House Speaker Mike Johnson, whose plan drew opposition from hardliners
Speaker 6: in his own party because it doesn't cut government spending
Speaker 6: nor change border policies, and it also doesn't include aid
Speaker 6: for Ukraine nor Israel. But Senate Democrats are expected to
Speaker 6: back it anyway. They'll need the cooperation of all senators
Speaker 6: to meet the Friday night deadline when federal funding lapses.
Speaker 6: Shington I ma Any Moore is Bloomberg Radio right to me.
Speaker 1: Thank you well. We are just hours away from the
Speaker 1: highly anticipated meeting between President Biden and Chinese leader Shi
Speaker 1: zhen Ping. Their schedule to meet on the sidelines of
Speaker 1: the Asia Pacific Economic Cooperation Summit in San Francisco. Bloomberg said,
Speaker 1: Baxter has a preview.
Speaker 7: It will be the first meeting in a year. She
Speaker 7: was greeted here by Treasury Secretary Janet Yellen and Governor
Speaker 7: Gavin Newsom. Students line in the streets waving Chinese flags,
Speaker 7: and President Biden says communication here is key.
Speaker 8: We're not trying to decouple from China, but we're What
Speaker 8: we're trying to do is change the relationship for the better.
Speaker 7: Biden did say President she needs to ease the criteria
Speaker 7: for US companies to invest in China and not require
Speaker 7: those companies to turn over trade secrets. In San Francisco,
Speaker 7: I'm at Baxter, Bloomberg.
Speaker 4: Radio, thank you. Ed.
Speaker 2: Turning to the economy, a day after investors shared news
Speaker 2: that inflation broadly slowed in October, we get two more
Speaker 2: key readings today, Producer prices and detail sales. Let's get
Speaker 2: a preview of that from Bloomberg's Michael McKee.
Speaker 9: Sales are forecasts to have fallen in October, led by
Speaker 9: gasoline autos and the ongoing drop in inflation. Retail sales
Speaker 9: are calculated in terms of dollar value, so falling gasoline
Speaker 9: prices and lower goods inflation should have a major impact.
Speaker 9: Take those out, and sales are forecasts to be up
Speaker 9: to tenths, much less than the six tenths gain in September.
Speaker 9: Analysts will also be watching for an expected slowing in
Speaker 9: producer prices. They don't feed directly into consumer indexes, but
Speaker 9: offer a rough guide to the future path of inflation.
Speaker 9: Michael McKee, Bloomberg Radio.
Speaker 1: All right, Mike, thank you. About traders are betting the
Speaker 1: Fed's hiking cycle is over following yesterday's cool inflation print,
Speaker 1: But a couple of Wall Street titans are throwing caution.
Speaker 1: We spoke with Citadel founder Ken Griffin.
Speaker 10: The FED needs to stay on message that they're going
Speaker 10: to put the inflation genie back in the bottle, and
Speaker 10: so they if they cut too soon, I think they
Speaker 10: risk losing credibility around on their commitment to a two
Speaker 10: percent inflation target.
Speaker 1: Ken Griffin's caution was echoed by JP Morgan Chase CEO
Speaker 1: Jamie Diamond.
Speaker 11: I think they do. They're doing the right thing to
Speaker 11: pause for now. You know they've raised rates a lot,
Speaker 11: you know, to wait to see the effect on the
Speaker 11: economy in the US, particularly as the fiscal spending, the
Speaker 11: excess fiscal spending is winding down and quantit tight and
Speaker 11: tiny is kicking in. But I still think you should
Speaker 11: prepare they might have to do a little bit more,
Speaker 11: and I think people should be prepared for that just
Speaker 11: as a kind of a risk management tool. And I'm
Speaker 11: afraid inflation may not go away that quickly.
Speaker 1: JP Morgan. Chase CEO Jamie Diamond has said previously he's
Speaker 1: advising clients to be prepared for interest rates as high
Speaker 1: as seven percent.
Speaker 2: Inflation's also in focus in Europe, Karen. In fact, inflation
Speaker 2: in the UK stumbled to its lowest level in two years.
Speaker 2: Consumer prices rose four point six percent from a year
Speaker 2: earlier in October, down sharply from six point seven in September.
Speaker 2: Slow downs prompting investors to firm up bets at the
Speaker 2: Bank of England will be able to cut rates as
Speaker 2: early as this of next year.
Speaker 1: Well we turned to earnings now, Nathan and profit at
Speaker 1: ten cent beat estimates. Analysts say it's another sign that
Speaker 1: Chinese consumers remain willing to spend on games and entertainment
Speaker 1: during a nationwide downturn here in the US. Arnas continue
Speaker 1: at Target, TJX, and Cisco all set to report, and
Speaker 1: time now for a look at some of the other
Speaker 1: stories making news around the world. For that, we're joined
Speaker 1: by Bloomberg's Amy Morris, Amy, Good morning.
Speaker 6: Good morning, Karen. Tens of thousands of people from across
Speaker 6: the country gathered on the National Mall in Washington, d C.
Speaker 6: In support of Israel. Organizers encouraged everyone to speak out
Speaker 6: against anti Semitism.
Speaker 4: In America today. You can't remain silent.
Speaker 12: You know, that was a mistake who's made during the Holocaust,
Speaker 12: during the Second World War, they knew what was going on, but.
Speaker 4: They felt, you know, they were too timid to speak off.
Speaker 6: Speaking remotely from Jerusalem, Israeli President Isaac Herzog thanked the
Speaker 6: demonstrators for gathering and supported marching for quote good over evil.
Speaker 6: Israel's assertion that a Hamas command center is under a
Speaker 6: key Gaza medical complex is being confirmed by the US.
Speaker 6: Bloomberg's Nanzy Lions has the latest.
Speaker 13: A Biden administration says it does have intelligence that confirms
Speaker 13: Iran backed militant groups are using hospitals, including the Al
Speaker 13: Shifa facility in Gaza to conceal and support their military operations.
Speaker 13: This is National Security Council spokesman John Kirby.
Speaker 8: Members operate a command and control node from Al shifa
Speaker 8: He and Gaza City.
Speaker 14: They have stored weapons there and they're prepared to respond
Speaker 14: to an Israeli military operation against that facility.
Speaker 13: Kirby says the US does not support striking the hospital
Speaker 13: from the air or seeing a firefight among helpless sick people.
Speaker 13: In Washington, Nancy lyons Bloomberg.
Speaker 6: Radio Morning continues in Ohio following yesterday's fiery multi vehicle
Speaker 6: crash that killed six people outside of Columbus, including three
Speaker 6: high school teenagers. Tusky Valley School Superintendent doctor Derrek Vinarski
Speaker 6: spoke at a vigil last night at the school's outdoor stadium.
Speaker 8: There are no words for the sheer magnitude of loss
Speaker 8: and grief felt by all of.
Speaker 6: US officials say. A semi slammed into a charter bus
Speaker 6: that was carrying the high school marching band on I
Speaker 6: seventy A teacher and two parent chaperones were also killed
Speaker 6: in a vehicle that was following the bus. The massive
Speaker 6: fire that burned a section of the ten Freeway near
Speaker 6: downtown LA may have started in a homeless encampment. A
Speaker 6: Stella Lopez is CEO of the Downtown Industrial Business Improvement District.
Speaker 13: Homeless people when it gets chilly at night, they start fires.
Speaker 4: When they need to cook, they start fires.
Speaker 13: This was a disaster waiting to happen.
Speaker 6: Officials confirmed there were sixteen homeless people living under the
Speaker 6: now damaged section of the ten freeway. Global news twenty
Speaker 6: four hours a day and whenever you want it with
Speaker 6: Bloomberg News Now. I'm Amy Morris and this is Bloomberg Karen.
Speaker 1: All right, Amy, thank you. I mean do bring you
Speaker 1: news throughout the day right here on Bloomberg Radio. But now,
Speaker 1: as Amy said, you can get the latest news on
Speaker 1: demand whenever you want it. Subscribe to Bloomberg News Now
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Speaker 1: your podcasts. Find its time now for the Bloomberg Sports
Speaker 1: Update with John stash Hour John Karon.
Speaker 12: A big early season college basketball doubleheader in Chicago had
Speaker 12: started with Duke beating Michigan State seventy four to sixty five,
Speaker 12: and then top rank Kansas held off Kentucky eighty nine
Speaker 12: eighty four. The Jayhawks seven foot Hunter Dickinson scored twenty
Speaker 12: seven points. He at twenty one rebounds. Pensey night of
Speaker 12: the NBA, with all the games part of the in
Speaker 12: season tournament. The Warriors had to play without Steph Curry
Speaker 12: out with a soord knee, and then early in the game,
Speaker 12: less than two minutes in, there was a fight. Klay
Speaker 12: Thompson got a jacket and so was Draymond Green, who
Speaker 12: had Minnesota's Rudy Gobert and I headlocked. The Timberwolves again
Speaker 12: beat the Warriors one oh four to one oh one.
Speaker 12: Call Anthony Town scored thirty three wins. Golden State has
Speaker 12: lost four in a row, six straight win from Miami.
Speaker 12: Jimmy Butler scored thirty two in a win at Charlotte
Speaker 12: de Monte. Murray scored thirty two as Atlanta won in Detroit,
Speaker 12: Indiana can did Philadelphia just its second loss of the season.
Speaker 12: Pacers won one thirty two, one twenty six in Philly.
Speaker 12: Tyrese Haliburton thirty three points in the win Joel MB
Speaker 12: thirty nine in the loss. Rough night for the rookie
Speaker 12: victor Wembin Yamashatto's four to fifteen eight points. The Spurs
Speaker 12: lost by thirty six at Oklahoma City. Bruins made a
Speaker 12: twelve one and two on the season of five to
Speaker 12: two win at Buffalo, the Capitol shut out Vegas three nothing.
Speaker 12: Managers of the Year the Orioles, brand In Hyde in
Speaker 12: the AL after Skipper and the O's to one hundred
Speaker 12: and one victories Miami Skip Schumacher won NL honors got
Speaker 12: the Marlins into the postseason. They'll name the cy Young
Speaker 12: winners today. The Yankees Garrett Cole expected to win in
Speaker 12: the American League. John Staneshawer Bloomberg.
Speaker 14: Sports from coast to coast, from New York to San Francisco,
Speaker 14: Boston to Washington, d C. Vationwide on Syrias Exam the
Speaker 14: Bloomberg Business Appen Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 7: Good morning.
Speaker 2: I'm Nathan Hager. We want to get you the latest
Speaker 2: now on the war in the Middle East and the
Speaker 2: news that Israel's forces are now inside the Alshifa Hospital
Speaker 2: complex in Gaza City. Facility that it accuses hamasav using
Speaker 2: as a government center. Alon Levy, Israeli government spokesman, spoke
Speaker 2: with Bloomberg Radio about the situation on the ground in
Speaker 2: Gaza and ongoing negotiations to release hostages in the territory.
Speaker 3: Israeli society is, of course worried sick for the fate
Speaker 3: of the two hundred and forty hostages have been in
Speaker 3: Gaza for forty days now since the October seventh massacre.
Speaker 3: There are children in there, there are babies, babies. They haven't
Speaker 3: been given access to the Red Cross. I'm afraid I
Speaker 3: can't comment on negotiations for their release. You'll understand these
Speaker 3: are sensitive issues. Human lives are at stake, and when
Speaker 3: we have information, we will of course update.
Speaker 15: If the Alshafa Hospital complex is a main one of
Speaker 15: the main Hamas bases in northern Gaza, once that operation
Speaker 15: is over, does that mean that the military, the Israeli
Speaker 15: military has accomplished its main aim in Gaza.
Speaker 3: In your view, our main aim in Gaza is to
Speaker 3: destroy the totality of Hamas's terrorists and governing infrastructure.
Speaker 15: How significant would it be though, if the base that
Speaker 15: you claim is under the hospital at the hospital in
Speaker 15: the hospital. How significant would it be if that were
Speaker 15: something that was dealt with, How big, how significant would
Speaker 15: it be in terms of the operation.
Speaker 3: The Sufa Terra compound is of course a very important target.
Speaker 3: It would be a very serious blow to Hamas. But
Speaker 3: we should be under no illusions that if that is overrun,
Speaker 3: and of course we show all that evidence to the
Speaker 3: international media that the operation will be over because we
Speaker 3: cannot allow Hamas to regroup, rebuild and remetastasize across the
Speaker 3: Gaza strip in order to pose a threat to our people.
Speaker 3: The objective of this war, in response to the October
Speaker 3: set massacre when Hammas declared war on us, is to
Speaker 3: destroy Hamas completely so that it can never again pose
Speaker 3: a threat to our people. Chief of Terror compound is
Speaker 3: of course very important, but it's not the end, and
Speaker 3: we know that the days ahead are going to be
Speaker 3: long and they're going to be difficult. Are you concerned
Speaker 3: about support from the United States for the military operation fading.
Speaker 14: We've been reporting about disquiet within the Biden administration with
Speaker 14: how Israel is conducting this military operation.
Speaker 3: Not in the least, Israel and the United States are
Speaker 3: completely in lockstep on the goals of this operation, which
Speaker 3: is that Hamas must be defeated. President Biden has been
Speaker 3: very clear from day one. We have been very grateful
Speaker 3: to him for his moral, material and diplomatic leadership in
Speaker 3: saying that Israel has every right and every duty to
Speaker 3: go after Hamas and destroy that terror group and.
Speaker 4: Eliminate that threat.
Speaker 3: That is the only way we can make sure another
Speaker 3: October seventh massacre doesn't happen by eliminating the terror group
Speaker 3: that is threatening to do it again. The United States
Speaker 3: knows that, not only the United States, so do other
Speaker 3: Arab governments. The United States has been speaking with. We
Speaker 3: understand they have their own domestic pressures that mean they
Speaker 3: can't speak openly on the issue, but they understand that
Speaker 3: the Iranian proxy terrorist group in the Gaza Strip must
Speaker 3: not be allowed to maintain its territorial control.
Speaker 2: And that was Israeli government spokesman Alon Levy speaking with
Speaker 2: Bloomberg's Caroline Hepger and Stephen Carroll for more. We're joined
Speaker 2: now by Rosalind Mathieson, Bloomberg News Director for Europe, the
Speaker 2: Middle East and Africa. Roz, good morning. As we watch
Speaker 2: these developments unfold in the Al Shifa Hospital, we heard
Speaker 2: those reassurances from the Israeli government spokesman, but the fact
Speaker 2: does remain that we are hearing as well a lot
Speaker 2: more frustration, not just from the US but from the
Speaker 2: international community at large over what is happening in the
Speaker 2: Gaza strip.
Speaker 9: Well, that's right.
Speaker 16: We heard of course from the IDF spokesman a short
Speaker 16: time ago, and they are confirming this operation which is
Speaker 16: in the vicinity of the Shifa Hospital. They're saying they're
Speaker 16: now in the grounds. It's very difficult to know exactly
Speaker 16: what's going on there though, because there's a communications blackouts
Speaker 16: that we're getting very little information back out this way
Speaker 16: about that operation. We do know that Israel said that
Speaker 16: we're bringing in medical crews and Arabic speakers with them.
Speaker 16: It's very very delicate, of course, because this hospital has
Speaker 16: become the focal point on either side. We know that
Speaker 16: Israel says Hamas has got tunnels under this tunnel. They're
Speaker 16: using it, they say, as a staging point for attacks,
Speaker 16: but also it's a center of civilian of civilians who've
Speaker 16: clustered there in recent weeks into the compound. We know
Speaker 16: that they've run very low on things like fuel and
Speaker 16: medicine and so on. So you've got sort of these
Speaker 16: competing goals going on in a very very delicate environment,
Speaker 16: and we are getting those global expressions of concern as
Speaker 16: a result. Is like, when you've got so many civilians
Speaker 16: and close proximity to a major military operation, how can
Speaker 16: that be carried out in a way that minimizes the
Speaker 16: risk of civilians as a result.
Speaker 2: And it brings into even larger focus as well, this
Speaker 2: idea from Israel that hamas as strategy is to use
Speaker 2: civilians as human shields as it continues to carry out
Speaker 2: this war against Israel. But does this feel though like
Speaker 2: a sort of a turning point in this war now
Speaker 2: to have Israeli forces now inside a hospital facility in Gaza.
Speaker 16: Well, the interesting thing also is that Israel is saying
Speaker 16: that this doesn't necessarily mean that their operation in Gaza
Speaker 16: would be finished. They've said their goal is to eradicate
Speaker 16: Hamas entirely, to ensure that Hamas could never again carry
Speaker 16: out an attack to the extent that they did on
Speaker 16: October seven inside Israel. So that's a lot more than
Speaker 16: just going into this hospital. We are talking potentially weeks
Speaker 16: and months of fighting inside Gaza, door to door, street
Speaker 16: to street again, bringing military forces and militants into proximity
Speaker 16: with civilians who are still in the north of Gaza.
Speaker 16: It could be a turning point again perhaps in the
Speaker 16: narrative around Israel on this. You're mentioning the heightened sense
Speaker 16: of global concern, the comments we're seen not just from
Speaker 16: aid agencies in the UN, for example, but also from
Speaker 16: the US, from Europe, from countries in Africa and the region,
Speaker 16: saying we're really worried about how this could play out
Speaker 16: on the ground on this particular side. But it doesn't
Speaker 16: seem at all that this would be the end of
Speaker 16: the Israeli military operation. There's still a long way from
Speaker 16: what they're saying that they have to go.
Speaker 2: And to that point, we're still seeing, even with these
Speaker 2: public expressions of concern from President Biden, that the Pentagon
Speaker 2: is continuing to draw down weapons and send them to Israel.
Speaker 2: What is the balance that the US is trying to
Speaker 2: strike when it comes to continuing to give this type
Speaker 2: of support to Israel while expressing concern about the risk
Speaker 2: of civilian casualties.
Speaker 16: Well, that's right, so very tricky balancing for the US
Speaker 16: because they're a strong ally of Israel. They provided Israel
Speaker 16: for a long time with military assistance, including for the
Speaker 16: Iron Dome missile shield over Israel, and they've said that
Speaker 16: they want to continue to support that because that's protecting
Speaker 16: israelis from attacks coming from Hamas and others Hasbala aerial
Speaker 16: attacks and that's important and they've said they'll continue that.
Speaker 16: But beyond that, you have the question of if you're
Speaker 16: supporting Israel militarily with things like artillery and ammunition, how
Speaker 16: is that being used? A guess whom might that be
Speaker 16: used in such a delicate conflict on the ground inside Gaza,
Speaker 16: And so the US needs to tread very carefully there.
Speaker 16: And again you're seeing that balancing act just sort of
Speaker 16: like yes, public support still for Israel. Behind the scenes,
Speaker 16: we know that they are calling on Israel and urging
Speaker 16: Israel to proceed very carefully inside Gaza in that growing
Speaker 16: sense of frustration about how it seems to be proceeding.
Speaker 16: And then the third concern for the US is also
Speaker 16: does this conflict still somehow expand and during the US
Speaker 16: directly militarily in the region. And we know the US
Speaker 16: has sent a lot more of its military assets into
Speaker 16: the area. We're talking warships and so on, and actually
Speaker 16: troops being stationed in the region, so that's going to
Speaker 16: be a high concern for the US.
Speaker 2: Also absolutely thanks for this, Roskad to have you with us.
Speaker 2: Rosalind Mathis and Bloomberg News Director for Europe, the Middle
Speaker 2: East and Africa, Karen Well Nathan.
Speaker 1: We want to turn now to our interview with Jamie Diamond,
Speaker 1: the head of JP Morgan, spoke with our Bloomberg affiliate
Speaker 1: in Mexico discussing the latest inflation numbers, a potential rating
Speaker 1: downgrade for the US, and the headwinds that the US
Speaker 1: economy faces. Let's go to part of that discussion.
Speaker 4: I think the number is good today.
Speaker 11: Personally, I think people are overreacting to short term numbers
Speaker 11: and they should stop doing that because you look at
Speaker 11: all the adjustments going to them, they're not completely valid.
Speaker 11: I think inflation is probably a little stickier than that shows.
Speaker 11: I think they do. They're doing the right thing to
Speaker 11: pause for now. You know they've raised rates a lot,
Speaker 11: you know, to wait to see the effect on the
Speaker 11: economy in the US, particularly as the fiscal spending, the
Speaker 11: excess physical spending is winding down and quantit tight and
Speaker 11: tiny is kicking in but I still think you should prepare.
Speaker 11: They might have to do a little bit more, and
Speaker 11: I think people should be prepared for that, just as
Speaker 11: a kind of a risk management tool. And I'm afraid
Speaker 11: inflation may not go away that quickly.
Speaker 4: And well.
Speaker 17: Also, three months ago, Fatur Rating downgraded US credit rating,
Speaker 17: and this weekend we saw Moodies changing its outlook on
Speaker 17: the US created rating to Native, pointing to our sharp
Speaker 17: rise in depth, servicing costs and political polarization. What do
Speaker 17: you expect in this terms?
Speaker 11: Yeah, look, I find a little ironic that fiction Moody's
Speaker 11: been doing that today. So here's what I think they
Speaker 11: are right to point out those issues. I would take
Speaker 11: polarization off. That's always been true in democracy. But yes,
Speaker 11: we have far more debt and more debt financing. We've
Speaker 11: been a little profitate when it comes to that. But
Speaker 11: the market is pricing US as triple A, which I
Speaker 11: think is more right, and the market will be more
Speaker 11: right than the rating agencies. I also want to point
Speaker 11: out I find this almost funny. They have a lot
Speaker 11: of country's rate of triple A. They all live under
Speaker 11: the protection of the American military, and so I think
Speaker 11: it's a little peculiar that that makes them triple.
Speaker 4: A, but not America.
Speaker 11: So America will be fine, but we got to get
Speaker 11: our hands around these problems. They will not age well.
Speaker 11: The death it's a lot bigger this year than we thought.
Speaker 11: There may be consequences of that, and so I do
Speaker 11: I think the.
Speaker 17: Right to point it out and talking about your bank, Jamie,
Speaker 17: how would you sum up these year twenty twenty three,
Speaker 17: given that it was such a tough time for the
Speaker 17: brother industry.
Speaker 11: I don't look at any one year like it's a
Speaker 11: mystical thing, you know. I always tell people that profits
Speaker 11: are like the tip of an iceberg is bobbing in
Speaker 11: the ocean. You know, the real quality of your companies,
Speaker 11: your people, your systems, your technology, your products, your services.
Speaker 11: So we had a good year financially, you know. I
Speaker 11: know that some banks has some problems. We've been quite
Speaker 11: clear over earning. But to me, the important thing is
Speaker 11: that we're going to serve our clients through thicker thin
Speaker 11: We got plenty of capital, plan liquidity. We're not going
Speaker 11: to panic no matter what happens the environment out there.
Speaker 11: We're going to be in Mexico serving your clients, your country.
Speaker 4: Or the way we should be.
Speaker 11: And you know, I think if rates and I'm hoping
Speaker 11: that the first Republicans we bought was probably the last domino.
Speaker 11: But I've always said, provided race don't go up, but
Speaker 11: we don't have a recession, and I do think banks
Speaker 11: being prepared for that, that's just a reasonable thoughtful risk
Speaker 11: management tool. Be prepared for things you don't expect, so
Speaker 11: you can continue to build your company.
Speaker 17: How to prepare for the things that you don't expect.
Speaker 11: The way we do it is we model out how
Speaker 11: are we to do in two percent ing of rates
Speaker 11: and seven percent interest rates, how we do with credit
Speaker 11: losses going up? Stress testing markets around the world. So
Speaker 11: we do like literally one hundred stress tests a week,
Speaker 11: and so always looking at that so we can manage
Speaker 11: through that and then under all those circumstances, we're fine.
Speaker 4: Find means to me that you don't have to.
Speaker 11: Announce massive layoffs and you don't have to like pull
Speaker 11: out of a country, that you continue to meet the
Speaker 11: commitments you have to the people in the country and
Speaker 11: the countries themselves. You know, people don't like bangs who
Speaker 11: are fair weather friends, and so you know we're going
Speaker 11: to be there for people all the time, and you know,
Speaker 11: we've always been careful how we run the bank.
Speaker 17: There is really a future for fintech startups or will
Speaker 17: they be outlasted or innovated by banks.
Speaker 11: Yeah, I think it's the wrong way to look at
Speaker 11: the question like it's a binary answer. You know, there
Speaker 11: will be some who will not survive. There will be
Speaker 11: some who are very smart and they have a great
Speaker 11: niche idea. There will be some who are more than that,
Speaker 11: you know, So JP Morgan, we look at all the fintech,
Speaker 11: we also look at the big tech. You know, we
Speaker 11: have competition effectively from Apple, Google, Facebook, and so there
Speaker 11: will always be survivors.
Speaker 4: And our job is.
Speaker 11: To make sure we're lean, we're mean, we're thinking we're competitive,
Speaker 11: we're not. It's always better assuming that some of these
Speaker 11: people be successful than to assume that they won't be successful.
Speaker 11: And you know, I've pointed out their own meagement teams
Speaker 11: that there's some great companies out there that we could
Speaker 11: have built and we didn't like Square and Stripe, and
Speaker 11: so you know, you've got to be open minded and
Speaker 11: a little humble about what's going to take place. Saw
Speaker 11: alone is not going to make you succeed in the future.
Speaker 11: If you don't believe me, read about the history of
Speaker 11: all large corporations.
Speaker 17: Also, I would like you to ask about Mexican economy,
Speaker 17: which are your perspectives with high interest rates, high inflation,
Speaker 17: but with the opportunity of nearshuring.
Speaker 4: Again, I think it's a great opportunity.
Speaker 11: And you know, a lot of Latin America countries raise
Speaker 11: their industrates rapidly quickly, and they probably did the right
Speaker 11: thing for the long run of the economy. You're very
Speaker 11: low unemployment. You know, inflation is coming down, so hopefully
Speaker 11: you'll conquer that. I think countries should always look at
Speaker 11: and I really mean this, like I do with a company,
Speaker 11: what should they be growing? And you know, I think
Speaker 11: we've undergrown in America, you know, quite a bit over
Speaker 11: the last year, and I think Mexico should aspire to
Speaker 11: do much more. And just like so, that's how I
Speaker 11: look at it, and to do more all these countries,
Speaker 11: all of us. You know, it's about policy and you've
Speaker 11: already mentioned infrastructure, but it's about work skills, effective regulation, transparency,
Speaker 11: corporate governance, uh, you know, rapid permitting.
Speaker 4: It's all those things.
Speaker 11: You know, it's consistency of law that have a country
Speaker 11: grow and the important part of having a country grow
Speaker 11: it helps.
Speaker 4: All of the citizens.
Speaker 11: There's more taxes, you have more a wherewithal you know,
Speaker 11: it's not just for big companies. You want to grow
Speaker 11: an economy, you really want it for everybody. Every job created,
Speaker 11: you know, every job created is a job for someone,
Speaker 11: and so you know people we need We only be
Speaker 11: very thoughtful. I can grow economies help and we should
Speaker 11: do it to benefit all the citizen of our country.
Speaker 11: You know, not just the you know, the wealthier and
Speaker 11: the employee, but everybody.
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