Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning.
Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 1: stories we're following today, Karen.
Speaker 3: The rise in futures comes as the S and P
Speaker 3: five hundred is coming off its biggest losing streak since January.
Speaker 3: Stocks fell for a fourth straight day. They're now down
Speaker 3: more than four percent from their all time high. The
Speaker 3: declines come as more Federal Reserve officials urge patients on
Speaker 3: rate cuts. FED Governor Michelle Bowman says the battle against
Speaker 3: inflation continues.
Speaker 4: What we've seen over the past first few months of
Speaker 4: twenty twenty four, anyway, is that progress on inflation has slowed,
Speaker 4: and I expect maybe it's even stalled at this point.
Speaker 3: FED Governor Michelle Bowman's comments were echoed by Cleveland FED
Speaker 3: President Lorettamester at a separate event. She said the Central
Speaker 3: Bank should not be in a hurry to cut well.
Speaker 1: Nathan One FED critics as policymakers should begin the rate
Speaker 1: cutting process. UBS Global Wealth Management chief economist Paul Donovan
Speaker 1: says the FED should focus on the positive news regarding
Speaker 1: its preferred inflation gauge, the PCEE deflator.
Speaker 5: What we do not want in this environment is rising
Speaker 5: real interest rates. Because the economy is slowing. You've got
Speaker 5: the highest interest rates in twenty three years, You've got
Speaker 5: a fiscal drag on growth. The economy is slowing down.
Speaker 5: You don't want to exacipate that with rising retial rates.
Speaker 5: So I think the message needs to be follow the
Speaker 5: PC de plate to lower ubs.
Speaker 1: Global Wealth Management chief economist Paul Donovan, speaking yesterday on
Speaker 1: Bloomberg surveillance, traders now see just one to two rate
Speaker 1: cuts this year. That's a far cry from the roughly
Speaker 1: six they expected at the start of twenty twenty four.
Speaker 3: Back in New York, Karen jury selection resumes today in
Speaker 3: the hush money trial of Donald Trump. Seven jurors have
Speaker 3: been picked so far in the first ever criminal case
Speaker 3: against a former president.
Speaker 1: Meanwhile, Nathan Trump is facing more pressure from economists in
Speaker 1: his circle to embrace a flat tax rate. While the
Speaker 1: former president has not endorsed a flat tax, he has
Speaker 1: called for more middle class tax cuts. Weget details now
Speaker 1: from Bloomberg's Amy Morris in Washington.
Speaker 6: Steve Forbes, former White House economic advisor Larry Cudlow, and
Speaker 6: economists Steven Moore and author Laffer are not official advisors
Speaker 6: to the Trump campaign, but they are pushing for their
Speaker 6: preferred economic policies ahead of a potential second term. Forbes
Speaker 6: is pushing for a flat seventeen percent tax rate for
Speaker 6: all income brackets with exemptions. Cudlow supports renewal of Trump's
Speaker 6: twenty seventeen tax cuts, but Laffer says he would support
Speaker 6: lowering the corporate rate even more now. Donald Trump has
Speaker 6: told allies he wants to keep that twenty one percent
Speaker 6: corporate rate in place and instead extend individual cuts to
Speaker 6: avoid alienating working class voters. In Washington, Amy Moore as
Speaker 6: Bloomberg Radio.
Speaker 3: All right, Amy, thank you. We're learning Donald Trump's campaigns
Speaker 3: telling other Republicans to pay up if they use the
Speaker 3: former president's name, image, or likeness in their fundraising solicitations.
Speaker 3: In a campaign memo obtained by Bloomberg News, all candidates
Speaker 3: and committees who use Trump in their fundraising appeals must
Speaker 3: give a minimum five percent of the funds they raise
Speaker 3: to the Trump Political Operation.
Speaker 1: Well Nathan, Donald Trump's opponent Joe Biden, is on the
Speaker 1: campaign trail. Speaking of Pittsburgh, the president vowed to keep
Speaker 1: United States Steel American owned.
Speaker 7: US still has been an iconic American company for more
Speaker 7: than a century, and it should remain a totally American,
Speaker 7: American owned, American operated by American union steel workers, the
Speaker 7: best in the world. And that's going to happen, I
Speaker 7: promise you.
Speaker 1: In Japan's Nippon Steele plans to acquire US Steel for
Speaker 1: more than fourteen billion dollars.
Speaker 3: And President Biden's talking tougher about China. Karen is. He
Speaker 3: highlights the challenges to its economy.
Speaker 7: They've got a population that is more people in retirement
Speaker 7: than working. They're not they're not important to any They're
Speaker 7: not bringing there's xenophobic, nobody coming else coming in. They've
Speaker 7: got real problems. I'm not looking for a fight with China.
Speaker 7: I'm looking for competition, but fair competition.
Speaker 3: To the President's latest letter, it comes two weeks after
Speaker 3: his latest phone call with Chinese President Shi Jinping. The
Speaker 3: Chinese economy did grow faster than expected in the first quarter,
Speaker 3: but there are still questions about the strength of that recovery.
Speaker 1: Well, Nathan, more pressure could be coming for China from Congress.
Speaker 1: The House is on a fast track to approve the
Speaker 1: bill aimed at forcing a sale of TikTok. Speaker Mike
Speaker 1: Johnson plans to include it in the aid package for
Speaker 1: Ukraine in Israel that he's teed up for votes on Saturday.
Speaker 1: Two Republicans have threatened to try to oust Johnson over
Speaker 1: foreign aid, but the Speaker is undaunted.
Speaker 8: My philosophy is you do the right thing and you
Speaker 8: let the chips fall where they may. I don't if
Speaker 8: I operated out of fear over emotion to vacate, I
Speaker 8: would never be able to do my job.
Speaker 1: Speaker Johnson has already passed the TikTok bill in the House.
Speaker 1: Attaching it to the foreign aid bill could force the
Speaker 1: Senate to accept it as a condition for supporting Israel
Speaker 1: and Ukraine.
Speaker 3: Well Karen Senate Democrats have not accepted impeachment articles against
Speaker 3: Homeland Security Secretary Alejandro Majorcis. They have tossed the charges.
Speaker 3: Bloomberg's Dan Schwartzman has.
Speaker 9: That Democrats in the Senate voted to dismiss both articles
Speaker 9: of impeachment against Homeland Security Secretary Alejandro Majorkis. The vote
Speaker 9: was mostly along party lines, except for Alaska Republican Lisa
Speaker 9: Rokowski voting president on a measure to toss the first
Speaker 9: impeachment article. Republicans have accused Maiorkis of refusing to enforce
Speaker 9: immigration laws. The secretary is the first sitting cabinet member
Speaker 9: in US history to be impeached. Democrats say the measure
Speaker 9: was unconstitutional because it didn't meet the constitutional bar of
Speaker 9: a high crime or misdemeanor. Republicans accused Democrats of failing
Speaker 9: to take the charges against Majorcis seriously and that the
Speaker 9: American people deserve to hear the evidence. Dan Schwartzman, Bloomberg Radio.
Speaker 1: All right, Dan, thanks now back to the Marcus. Keeping
Speaker 1: an eye on chip stocks this morning. Taiwan Semiconductor Manufacturing
Speaker 1: expects revenue to rise as much is thirty percent this quarter.
Speaker 1: The better than projected outlook follows its first profit rise
Speaker 1: in a year after strong AI demand revived growth at
Speaker 1: the world's biggest contract chip maker. TSMC is the main
Speaker 1: chip maker for Nvidia and Apple, and.
Speaker 3: Shares of Micron Technology are on the rise as well, Karen.
Speaker 3: They're up two and a half percent in early trading.
Speaker 3: The largest US maker of computer memory chips, this poised
Speaker 3: to get six point one million dollars billion dollars I
Speaker 3: should say billion with a B in grants from the
Speaker 3: Commerce Department to help pay for domestic factory projects. This
Speaker 3: is all part of an effort to bring semiconductor production
Speaker 3: back to US soil.
Speaker 1: And it's time now for a look at some of
Speaker 1: the other stories making news in New York and around
Speaker 1: the world. And for that we're joined by Bloomberg's John Tucker. John,
Speaker 1: Good morning and.
Speaker 8: Good morning, Karen. Republicans have VOP held the Arizona abortion ban.
Speaker 8: Let's get more on that story this morning from Bloomberg
Speaker 8: Steve Podisc.
Speaker 10: Republicans in the Arizona State House Block two attempts Wednesday
Speaker 10: to repeal the state's one hundred and sixty year old
Speaker 10: near total ban on abortion, despite pressure on the GOP,
Speaker 10: including from former President Donald Trump, to change course on
Speaker 10: the hot button issue. But later in the day, two
Speaker 10: Senate Republicans joined with Democrats and up to create a
Speaker 10: majority to move forward with their version of a repeal.
Speaker 10: A final vote on the bill could be weeks away.
Speaker 10: If the Senate does ultimately vote to repeal the ban,
Speaker 10: the measure would go back to the House, where it
Speaker 10: would still face.
Speaker 8: A difficult path. Steve Podisk Bloomberg Radio two hearings on
Speaker 8: Capitol Hill focused on Boeing. In the first, a report
Speaker 8: exposed holes in the safety culture at the company. Three
Speaker 8: witnesses backed it up with testimony for senators. The second
Speaker 8: hearing featured a former Boeing engineer and saying the airplane
Speaker 8: manufacture is not up to par. Senator Richard bluminthalf Connecticut
Speaker 8: had this message for the flying public.
Speaker 11: The aircraft as a whole may be safe insofar as
Speaker 11: people getting on planes shouldn't panic, but they need to
Speaker 11: be made fully safe.
Speaker 8: Speaking to ABC, President Biden will be endorsed by more
Speaker 8: than a dozen members of the Kennedy family at an
Speaker 8: event today in Philadelphia as he looks to blunt the
Speaker 8: outsider presidential bid of Robert F. Kennedy Junior. Biden will
Speaker 8: be introduced by Kerry Kennedy, the sister of the third
Speaker 8: party candidate, and joined by fellow siblings. Poll suggests that
Speaker 8: Robert F. Kennedy Junior, whose promoted conspiracy theories, could place
Speaker 8: spoiler as mister Biden seeks to win reelection. And Google
Speaker 8: fired twenty eight employees after they were involved in protests
Speaker 8: against Project Nimbus, a one point two billion dollar joint
Speaker 8: contract with Amazon to provide the Israeli government with AI
Speaker 8: and cloud services. The protests took place across Google offices
Speaker 8: in New York City, Seattle, and Sunnyvale, California. Global News
Speaker 8: twenty four hours a day and whenever you wanted with
Speaker 8: Bloomberg News. Now, I'm John Tucker, and VC is Bloomberg
Speaker 8: Karen and Nathan.
Speaker 1: All right, John, thank you time now for the Bloomberg
Speaker 1: Sports Update with John stash Hour. John, Good morning, Good.
Speaker 12: Morning, Karen's looking like the Knicks are going to continue
Speaker 12: their long history of playoff series with Miami. The Heat
Speaker 12: had a fourteen points second half lete in Philadelphia. The
Speaker 12: fans were booing the Sixers. Philly came alive rally to
Speaker 12: win one oh five to one to oh four. Joe
Speaker 12: lmb twenty three points, fifteen rebounds, Nick patuone with twenty
Speaker 12: off the bench. Tyrese Maxi scored nineteen. Was then asked
Speaker 12: about now facing the Knicks.
Speaker 13: They're extremely grinding team. They play hard, they're physical, and
Speaker 13: they're tough, and that's their identity. So for us to
Speaker 13: go in there and try to get w's and try
Speaker 13: to win this series, we have to mess that and
Speaker 13: not just matchup. But we have to overcome that and
Speaker 13: be better than that in n be extremely physical as well.
Speaker 12: Game one Saturday at the Garden, the Heat, who came
Speaker 12: out of the play in the play in last year's
Speaker 12: NBA Finals, now go home to play Chicago tomorrow. The
Speaker 12: Bulls beat Atlanta one thirty one, one sixteen. Kobe White
Speaker 12: scored forty two points. The winner of that game tomorrow
Speaker 12: will then take on the Celtics and the NFL playoff
Speaker 12: matchups set in the East, not yet in the West.
Speaker 12: Although Dallas did win the winch the West one seed
Speaker 12: the playoff found Islanders finished the regular season with another win,
Speaker 12: five to four over Pittsburgh in Toronto. Looked like another
Speaker 12: quiet game for Yankee Bats. They trailed the Blue Jays
Speaker 12: four to one eighth inning, looked like they'd come home
Speaker 12: with a four game losing the Street, but Juan Soto
Speaker 12: homeward in the eighth. Jack Carlos Stands on the ninth
Speaker 12: Yanks scored again, and then with the game tied, Aaron
Speaker 12: Judge a two run single, Yanks won six to four.
Speaker 12: Judge with a hit, raising his average till one eighty three.
Speaker 12: A couple of x Yanks helped the Mets finish a
Speaker 12: home sweep of the Pirates. Find the pitching of Luis Savarino,
Speaker 12: A homer by Harrison Vader, The Mets one ninety one,
Speaker 12: John Stashedward, Bloomberg Sports, Karen Nathan.
Speaker 1: All Right, John Thanks SMP futures have a quarter percent
Speaker 1: or twelve points down, futures up, a tenth of a
Speaker 1: percent or forty points NASDAK futures at four tenths of
Speaker 1: percent or seventy points tenure Treasury yields four point five
Speaker 1: seven percent.
Speaker 11: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 11: and around the world on Bloomberg dot Com and the
Speaker 11: Bloomberg Business app.
Speaker 3: This is Bloomberg day Break Morning. I'm Nathan Hager, JP,
Speaker 3: Morgan Chase CEO. Jamie Diamond has made no secret that
Speaker 3: his firm is all in on artificial intelligence. In fact,
Speaker 3: this month, he devoted a pretty significant chunk of his
Speaker 3: annual shareholder letter to the importance of the technology for
Speaker 3: the Wall Street Giants business and for society at large.
Speaker 3: In the premiere episode of the second season of The Circuit,
Speaker 3: Jamie Diamond joined Bloomberg Original's host and executive producer Emily
Speaker 3: Chang to discuss the opportunity offered by AI. Before that, though,
Speaker 3: Emily asked Jamie Diamond, if JP Morgan, the world's largest
Speaker 3: publicly listed bank, is now too large, let's go to
Speaker 3: part of their conversation.
Speaker 14: Now.
Speaker 15: I think the question is what works for consumers and
Speaker 15: industries and stuff like that. So you know, if you
Speaker 15: want to build a Boeing aircraft, you have to be big.
Speaker 15: You can pretend that you don't if you want to
Speaker 15: do what JP Morgan does. We move ten trillion dollars
Speaker 15: of money around the world every day. We bank some
Speaker 15: of these companies in thirty countries. We bank trees, We
Speaker 15: bank the World Bank, the IMF, we bank the United
Speaker 15: States government. You have to be big. You can't do
Speaker 15: those things and be small. I applaud the small banks.
Speaker 15: We're the biggest bank, community banks and regional banks and
Speaker 15: stuff like that.
Speaker 14: And I understand, you know, some of the stress around it.
Speaker 14: We're trying to help. So it's not either or so.
Speaker 16: Going a little bigger picture. Now, you run the biggest
Speaker 16: bank in the world, you have our money, You've got
Speaker 16: world leaders on speed dial. That's a lot of power.
Speaker 16: How do you decide when and how to wield that power.
Speaker 14: Yeah, I'm not sure.
Speaker 15: I have a lot of people at speed, doll you
Speaker 15: say all that, Sometimes I think I'm just riding the
Speaker 15: Bronco and hanging out for deal life. You know, I
Speaker 15: love what I do. I try to talk that around.
Speaker 15: I try to keep my mind open. One of the
Speaker 15: benefits from traveling the world. I just in Mumbai, in
Speaker 15: Switzerland and seeing clients. You learn a lot and you
Speaker 15: try to make sure you're that you're doing the proper
Speaker 15: assessment of the world, that you're looking at the options.
Speaker 14: You're not like just saying we're going to do this.
Speaker 15: I look as part of our job to try to
Speaker 15: have countries to help country do the best they can
Speaker 15: for their citizens.
Speaker 14: So we bank countries.
Speaker 15: We also advise them on skills and trade and economics.
Speaker 15: You look at our research, it's a lot around how's
Speaker 15: an economy run. So when you go to like when
Speaker 15: I got back from Mumbai, we research one hundred and
Speaker 15: fifty companies now or something like that. So we're educating
Speaker 15: the world about those companies. We're educating the world but
Speaker 15: the Indian economy. As we do that, we indicate also
Speaker 15: educate the Indians about what works in their economy and
Speaker 15: what doesn't work, and those are important things to lift
Speaker 15: up society.
Speaker 16: You've got this reputation as a sort of white Night
Speaker 16: for the economy. Do you ever feel pressure to come
Speaker 16: in with the save?
Speaker 15: I feel a tremendous amount of pressure to do Obviously
Speaker 15: my family comes first, okay, but to do a great
Speaker 15: job for my company and our clients. But I also
Speaker 15: feel a huge burn to do a good job for
Speaker 15: my country. So you know, when my country wants me
Speaker 15: to do something, and we talk all the time to
Speaker 15: you know, their senators and regulators, what can we do
Speaker 15: to make the system better, to lift up the country,
Speaker 15: lift up.
Speaker 14: In the cities.
Speaker 15: We're trying to figure out how to make society better,
Speaker 15: and I do consider that.
Speaker 14: Part of our job.
Speaker 16: I know you mentioned chet GPT and your annual letter.
Speaker 16: Have you tried it?
Speaker 14: Yeah? If I had my phone, i'd show you.
Speaker 16: What do you use it for?
Speaker 14: I just ask you questions like what I don't remember?
Speaker 14: What'sda bee chain going to ask me?
Speaker 16: We've got a top notch group investigating AI. What are
Speaker 16: they up to? What's the next level of finance you
Speaker 16: think AI can unlock?
Speaker 14: Yeah?
Speaker 15: So I think the most important thing is that it's
Speaker 15: AI is real. We already have thousands of people doing it,
Speaker 15: top scientists around their own Manu level Velosa from who
Speaker 15: ran Carnegie Mellon machine learning. And it's a living breathing thing.
Speaker 15: So people want to answer, what's going to do. It's
Speaker 15: a living breathing thing.
Speaker 14: It's going to change.
Speaker 15: They're going to be all different types of models and
Speaker 15: different types of tools and technology.
Speaker 14: But the way to think about for us.
Speaker 15: Is every single process, so errors, trading, hedging, research, every
Speaker 15: app every database, you can be applying AI. So it
Speaker 15: might be as a copilot, it might be to replace humans.
Speaker 15: You know, AI is doing all the equity hedging for us.
Speaker 15: For the most part, it's idea generation, it's large language models.
Speaker 15: It's no taking while you're talking to someone and whiles
Speaker 15: taking notes and may actually say to you that, you know,
Speaker 15: here's the thing of interest to climb by Peterston.
Speaker 14: All error, all customer service. It's a little bit of everything.
Speaker 16: But it is going to replace some jobs, of course.
Speaker 15: Yeah, but I look, folks, people have to take a
Speaker 15: deep breath. Okay, technologies always replaced jobs. Your children will
Speaker 15: live to one hundred and not have cancer because of
Speaker 15: technology and literally they'll probably be working three.
Speaker 14: And a half days a week.
Speaker 15: So technology has done unbelievable things from mankind. You know,
Speaker 15: planes crash, pharmacials get misused. There are negatives. This is
Speaker 15: one of the biggest negative in my view, is AI
Speaker 15: being used by bad people to do bad things, think
Speaker 15: of cyber but you know the fact and I do
Speaker 15: think you know, eventually have legal guardrails around. It's kind
Speaker 15: of hard to do because it's new, but it will
Speaker 15: add a huge value. And you know, for JP Morgan
Speaker 15: if it replaces jobs and.
Speaker 14: We hope to redeploy people.
Speaker 16: So is there going to be a point where I
Speaker 16: can turn to chat JPM and say I have thirty
Speaker 16: years or I want to get rich quick? What should
Speaker 16: I do with my money?
Speaker 14: Well, the rich quick?
Speaker 15: I hope it tells you that you're crazy. Yeah, but
Speaker 15: we in some ways can do a little bit ray today.
Speaker 15: And you know, usually if you look at like wealth
Speaker 15: plans that we have, which I think are quite good,
Speaker 15: they have a lot of AI em better than that.
Speaker 14: And if soon I'll have more AI.
Speaker 2: This is Bloomberg Daybreak Today, your morning brief on the
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