WEBVTT - Bank Earnings Continue; Musk Challenges Microsoft and Google

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<v Speaker 1>From the Bloomberg INTERACTI Burgers Studios. This is Bloomberg day

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<v Speaker 1>Break for Tuesday, April eighteenth.

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<v Speaker 2>Coming up today, Big bank earnings continue with Goldman Sachs

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<v Speaker 2>and Bank of America reporting.

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<v Speaker 1>The Group of Seven Nations vow to support Ukraine for

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<v Speaker 1>as long as it takes.

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<v Speaker 2>Elon Musk says he wants to take on Microsoft and

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<v Speaker 2>Google in artificial intelligence.

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<v Speaker 1>And Tim Cook opens Apple's first store in India.

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<v Speaker 3>Trial begins on the Fox News Dominion voting machine case.

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<v Speaker 3>Plus a secret illegal police station in Chinatown has been

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<v Speaker 3>shut down. I'm Michael Varn. We'll explain straight ahead.

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<v Speaker 4>I'm John Stash, Aaron Sports Met's beat. The Dodgers playoff

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<v Speaker 4>losses for the Nets and Islanders. The Knicks play the

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<v Speaker 4>Calves tonight. The Rangers play the Devilment.

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<v Speaker 5>That's all straight ahead on Bloomberg day Break, The Business

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<v Speaker 5>news you need to starn your day in just one

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<v Speaker 5>fifteen minute podcast each morning on Apples, Spotify, The Bloomberg

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<v Speaker 5>Business Appen everywhere you get your podcasts.

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<v Speaker 2>Good morning, I'm Nathan.

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<v Speaker 1>Hager and I'm Karen Moscow. Here are the stories we're

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<v Speaker 1>following today.

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<v Speaker 2>Let's begin with earnings. This morning too. Of the biggest

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<v Speaker 2>banks on Wall Street report today, and we get a

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<v Speaker 2>preview from Bloomberg's Shanali Bassic.

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<v Speaker 6>We'll wait diar from Bank of America to c if

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<v Speaker 6>it'll increase its expectations for net interest income this year.

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<v Speaker 6>Remember a massive rival, JP Morgan already increased their expectation

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<v Speaker 6>for lending revenue by billions of dollars. We'll also hear

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<v Speaker 6>from Goldman Sachs. And at Goldman they have one of

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<v Speaker 6>the biggest fixed income houses on Wall Street. JP Morgan

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<v Speaker 6>and City Group already posted jumps in that business that

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<v Speaker 6>were bigger than Wall Street expected. We'll also here from

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<v Speaker 6>BNY Mellon and Western Alliance Bank. The big story this

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<v Speaker 6>week will be how regional banks and other big financial

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<v Speaker 6>services firms are being impacted by the rise in interest rates.

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<v Speaker 2>Bloomberg Shinali Basic says, look for Bank of America's earnings

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<v Speaker 2>at six forty five am Wall Street time. Goldman Sachs

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<v Speaker 2>reports at seven thirty.

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<v Speaker 1>Well, turning to the global economy now, Nathan, we got

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<v Speaker 1>a surprise in the UK. Overnight growth unexpectedly accelerated, with

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<v Speaker 1>average earnings rising six point six percent in the three

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<v Speaker 1>months through February. That was quicker than the six point

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<v Speaker 1>two percent pace that was expected. Bloombergy's a senior UK economist,

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<v Speaker 1>Dan Hansen says the data is now sending a clear

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<v Speaker 1>message to the Bank of England.

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<v Speaker 7>This tips the balance sorts them hiking in May. This

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<v Speaker 7>is such a big surprise relative to our forecast, and

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<v Speaker 7>we think relative to their forecasts. I think even if

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<v Speaker 7>you do get a slow down in inflation tomorrow from

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<v Speaker 7>ten point four percent, we're expecting nine point eight percent,

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<v Speaker 7>it's obviously still extremely high relative to a two percent target.

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<v Speaker 1>And Bloombergy's senior UK economist Dan Hanson notes the NEXTBOE

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<v Speaker 1>meeting comes on May eleventh.

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<v Speaker 2>The economic data are also in focus in Asia. Karen

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<v Speaker 2>China's economy grew four and a half percent in the

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<v Speaker 2>first quarter. That's the fastest pace in a year, but

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<v Speaker 2>the monthly data for March came in mixed and Bloomberg

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<v Speaker 2>Daybreak Asia anchor Brian Curtis has more from Hong Kong.

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<v Speaker 8>Some strong data here and some that's disappointing. GDP expanding

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<v Speaker 8>four point five percent from a year earlier was a surprise,

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<v Speaker 8>higher than the estimate of four percent retail sales jumping

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<v Speaker 8>ten point six percent in March from a year ago,

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<v Speaker 8>and that was stronger than the estimate of seven point

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<v Speaker 8>five percent. However, industrial output rising just three point nine percent,

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<v Speaker 8>weaker than forecast, and fixed asset investment also lower than expected.

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<v Speaker 8>Bloomberg Economics says consumption is set to remain strong this

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<v Speaker 8>year and that may just be the jewel of this

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<v Speaker 8>big set of data. In Hong Kong, Brian Curtis Bloomberg Daybreak.

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<v Speaker 1>Right, Brian thanks Well. Geopolitics is in focus in Japan today.

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<v Speaker 1>The Group of Seven Nations vound to support Ukraine for

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<v Speaker 1>as long as it takes in its fight against Russia,

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<v Speaker 1>while also calling for greater engagement which China. Bloomberg's Amy

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<v Speaker 1>Morris has details from our ninety nine to one newsroom

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<v Speaker 1>in Washington.

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<v Speaker 9>The Block condemned Russia's war against Ukraine, reiterated support for

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<v Speaker 9>Ukraine's peace plan, and slammed Russia's irresponsible nuclear rhetoric. The

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<v Speaker 9>G seven ministers also said they recognized the importance of

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<v Speaker 9>engaging candidly with China and the need to work together

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<v Speaker 9>on common interests, while calling for a peaceful resolution of

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<v Speaker 9>Taiwan related issues.

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<v Speaker 1>Now.

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<v Speaker 9>The language on China was softened as the group tries

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<v Speaker 9>to project unity after Emmanuel Macrone's recent trip to Beijing,

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<v Speaker 9>when the French leader said the European Union should avoid

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<v Speaker 9>being dragged into a dispute with China by the US.

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<v Speaker 9>In Washington, I Maymy Moore as Bloomberg Daybreak.

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<v Speaker 2>Amy, Thanks. We have an update this morning on the

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<v Speaker 2>latest mission from SpaceX. The company says it'll try again

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<v Speaker 2>to launch its massive starship on Thursday. Bloomberg's Ed Baxter reports.

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<v Speaker 10>The crew says it's using the malfunction valve that scuttled

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<v Speaker 10>yesterday's launch as a valuable learning experience.

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<v Speaker 11>We're learning things today about the integrated tasks that are

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<v Speaker 11>going to set us up for success in a future attempt.

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<v Speaker 10>As they tested mechanisms down to a hold of T

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<v Speaker 10>minus forty seconds. This is the rocket that Musk feels

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<v Speaker 10>will ultimately get people to Mars, but this is the

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<v Speaker 10>first attempt to even get it into outer space. So

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<v Speaker 10>Elon Musk said that four twenty is his favorite day

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<v Speaker 10>of the year, and there it is in San Francisco.

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<v Speaker 10>I'm at Baxter Bloomberg Gay Break Europe.

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<v Speaker 1>All right, and thank you well. Space isn't the only

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<v Speaker 1>thing on Elon Musk's mind today. He's also talking about

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<v Speaker 1>plans to get into artificial intelligence that Tesla on Twitter.

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<v Speaker 1>CEO says he wants to create a third option to

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<v Speaker 1>rival Microsoft's Open AI and Alphabet's Deep Mind.

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<v Speaker 12>I'm going to thought something which you call truth GBT

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<v Speaker 12>or a maximum truth seeking AI that tries to understand

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<v Speaker 12>the nature of the universe.

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<v Speaker 1>In an interview with Tucker Carlson on Fox News, Elon

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<v Speaker 1>Musk says bots like chat GPT are too politically correct.

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<v Speaker 1>He says a truth seeking AI, as he puts it,

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<v Speaker 1>would be less likely to annihilate humans.

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<v Speaker 2>Well, Karen another tech CEOs in the spotlight this morning.

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<v Speaker 2>Tim Cook has officially opened Apple's first company owned store

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<v Speaker 2>in India, and we get the details live from Bloomberg's

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<v Speaker 2>John Tucker, John and Nathan.

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<v Speaker 12>Tim Cook beamed took selfies and hug customers at the

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<v Speaker 12>new Apple store in Mumbai. He's got good reason to smile.

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<v Speaker 12>India is the world's second biggest mobile market with one

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<v Speaker 12>point four billion potential customers. Oh, it's been years in

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<v Speaker 12>the works because Apples had to jump through a lot

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<v Speaker 12>of hoops. They had to meet regulators demands, including sourcing

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<v Speaker 12>some of the products locally. Right now, only four percent

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<v Speaker 12>of India's smartphone users have iPhones, and even with that penetration,

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<v Speaker 12>iPhone sales in the last twelve months, we're almost six

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<v Speaker 12>billion dollars live in New York I, John Tucker, Bloomberg Daybreak.

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<v Speaker 1>All right, John, thank you. And Apple is also banking

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<v Speaker 1>on another way to make money. It's teaming up with

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<v Speaker 1>Goldman Sachs to offer a high yield savings account.

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<v Speaker 2>It's fifty degrees in New York. It's going to be

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<v Speaker 2>breezy and continued cool today with highs in the upper fifties.

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<v Speaker 2>We get down to around forty five tonight under a

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<v Speaker 2>probably to mostly cloudy skinnes And now it's time to

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<v Speaker 2>take a look at some of the other stories.

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<v Speaker 13>Making news in New York and around the world with

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<v Speaker 13>Bloomberg s. Michel bar Good morning, Michael, Good morning, Nathan.

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<v Speaker 13>Federal authorities say two men were arrested for operating an

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<v Speaker 13>illegal secret police station on behalf of the Chinese government

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<v Speaker 13>in Manhattan. Authorities rate at the so called station on

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<v Speaker 13>East Broadway in Chinatown. Official say more than three dozen

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<v Speaker 13>members of China's National police also faced charges accusing them

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<v Speaker 13>of creating and using fake social media accounts to locate

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<v Speaker 13>and harass dissidents. In the US, a twenty year old

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<v Speaker 13>woman was shot and killed in upstate New York over

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<v Speaker 13>the weekend after the car she was pulled in to

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<v Speaker 13>the wrong driveway. She says that police say that Caitlin

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<v Speaker 13>Gillis was with three people headed to a friend's house

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<v Speaker 13>when they ended up at the wrong house in Hebron,

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<v Speaker 13>Washington County. Sheriff Jeff Murphy.

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<v Speaker 14>While they were leaving the residents, once they determined that

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<v Speaker 14>they're at the wrong house, a subject came out on

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<v Speaker 14>his Porsch for whatever reason and fired two shots, one

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<v Speaker 14>of which struck the vehicle that Kaylin was in.

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<v Speaker 3>Sheriff Murphy says the homeowner, sixty five year old Kevin Monahan,

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<v Speaker 3>is in Today. President Joe Biden spoke with sixteen year

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<v Speaker 3>old Ralph Yarrel, the black teenager who was shouting wounded

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<v Speaker 3>last week after mistakenly ringing the wrong doorbell. Prosecutors in

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<v Speaker 3>Clay County, Missouri charged Andrew Lester, the eighty four year

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<v Speaker 3>old of White, Kansas City homeowner who allegedly shot Yarrow.

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<v Speaker 3>The NYPD says the last of three suspects wanted in

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<v Speaker 3>the drugging deaths of at least two people that's been arrested.

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<v Speaker 3>Thirty five year old Jaquan Hamilton faces charges. Police say

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<v Speaker 3>they had linked dozens of druggings, including seven fatal overdoses,

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<v Speaker 3>to robberies around nightclubs in Manhattan. Jury selection is expected

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<v Speaker 3>to begin this morning in the one point six billion

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<v Speaker 3>dollar defamation case between Fox News and Dominion Voting Systems.

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<v Speaker 3>The start of the trial was delayed yesterday after talk

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<v Speaker 3>of a possible last minute settlement, but now it is

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<v Speaker 3>set to begin. Secretary of State Anthony B. Lincoln's as

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<v Speaker 3>Americans were caught up in the violence in Sudan.

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<v Speaker 15>We had an American diplomatic convoy that was fired on.

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<v Speaker 15>All of our people are safe and unharmed. But this

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<v Speaker 15>action was reckless, it was irresponsible and of course unsafe.

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<v Speaker 3>Secretary Blinkin says, it's believe the attack came from rapid

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<v Speaker 3>support for us as who were battling the Sudanese military.

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<v Speaker 3>Global News twenty four hours a day, powered by more

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<v Speaker 3>than twenty seven hundred journalist manaalist and over one hundred

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<v Speaker 3>twenty countries. I'm Michael Barr.

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<v Speaker 13>This is Bloomberg, Nathan, Michael, thanks time now for the

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<v Speaker 13>Bloomberg Sports Update.

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<v Speaker 2>For that, we welcome John Stenshower.

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<v Speaker 16>All right, thanks Nathan.

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<v Speaker 4>It's the first time since nineteen ninety four all five

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<v Speaker 4>New York Area NBA NHL teams are in the playoffs.

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<v Speaker 16>That includes the Nets and Islanders.

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<v Speaker 4>They both lost on the road, and Net's had a

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<v Speaker 4>ten point lead at Philadelphia. Sixers switched to a zone defense,

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<v Speaker 4>Nets held only fourteen points to the third quarter. Philly

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<v Speaker 4>won ninety six eighty four tyres MAXI thirty three points.

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<v Speaker 4>Cam Johnson led Brooklyn with twenty eight and the Sixers

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<v Speaker 4>lead the series to nothing. Sacramento again beat Golden State.

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<v Speaker 4>Kings are up to nothing next, looking to go up

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<v Speaker 4>to ZIP. Tonight in Cleveland, Islanders lost Carolina two to one,

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<v Speaker 4>a game that was scoreless for the last thirty seven minutes.

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<v Speaker 4>Bruins beat Florida overtime wins for Minnesota and LA. Rangers

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<v Speaker 4>and Devils begin their series tonight in Newark's seventh time

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<v Speaker 4>they've met in the postseason, the most memorable being the

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<v Speaker 4>epic series in nineteen ninety four.

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<v Speaker 16>Rangers coach drug Glant.

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<v Speaker 17>I know we're playing the team that I see is

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<v Speaker 17>pretty competitive, and this year we can go either way.

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<v Speaker 17>They're a real good hockey team. I think we're real

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<v Speaker 17>good hockey team. We match up real well from what

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<v Speaker 17>I see, So I don't worry about all the experience

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<v Speaker 17>and expectations and my job to get our team to

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<v Speaker 17>play the best weekend and hopefully will be.

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<v Speaker 4>Last time the Devils won a series was twenty twelve

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<v Speaker 4>when they beat the Rangers.

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<v Speaker 16>Fifth straight win for the Mets. They won a back

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<v Speaker 16>and forth game in LA.

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<v Speaker 4>Eight to six over the Dodgers branded MLPEE Alonzo Jeff

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<v Speaker 4>McNeil all with three hits. Daniel Vogo back at two

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<v Speaker 4>on ome A, a familiar script for ex Mets ace Jacob

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<v Speaker 4>de Grom, now with Texas four hitless innings and then

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<v Speaker 4>he left with a wrist injury. Jalen Hurts cash get

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<v Speaker 4>on his breakout season, the Eagles quarterback, now the highest

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<v Speaker 4>paid player of.

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<v Speaker 16>The NFL, making fifth one million a year. John S

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<v Speaker 16>Dafiell are Bloomberg.

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<v Speaker 5>Sports Live from coast to coast, from New York to

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<v Speaker 5>San Francisco, Boston to Washington, DC, nationwide on siriusxam the

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<v Speaker 5>Bloomberg Business Appen Bloomberg dot com. This is Bloomberg Daybreak.

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<v Speaker 5>Good morning, I'm Nathan Hager. It is a morning with

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<v Speaker 5>bank earnings back in focus. We're going to be looking

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<v Speaker 5>for more clues about the impact of the regional bank

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<v Speaker 5>turmoil in a little less than two hours, actually, when

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<v Speaker 5>Bank of America and Goldman Sachs come out next with

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<v Speaker 5>their first quarter results.

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<v Speaker 2>Let's get a preview now. We're joined by Charlie Wells,

0:11:36.320 --> 0:11:39.439
<v Speaker 2>finance reporter for Bloomberg News. Charlie, it's good to speak

0:11:39.440 --> 0:11:41.760
<v Speaker 2>with you this morning. Of course, we already saw that

0:11:41.880 --> 0:11:45.280
<v Speaker 2>nice jump in net interest income from the three banks

0:11:45.320 --> 0:11:48.320
<v Speaker 2>that reported last Friday. Any reason to think things are

0:11:48.320 --> 0:11:50.080
<v Speaker 2>going to be any different for the next two coming up?

0:11:50.440 --> 0:11:51.000
<v Speaker 16>Good question.

0:11:51.040 --> 0:11:53.440
<v Speaker 11>I mean the stakes certainly are high, just a few

0:11:53.480 --> 0:11:55.960
<v Speaker 11>weeks after some of the most dramatic news in the

0:11:56.000 --> 0:11:59.240
<v Speaker 11>banking industries since the financial crisis, and we really are

0:11:59.280 --> 0:12:02.280
<v Speaker 11>getting sort of two different banks reporting today that sort

0:12:02.280 --> 0:12:06.160
<v Speaker 11>of represent different themes in the industry. So with Goldman,

0:12:06.200 --> 0:12:10.079
<v Speaker 11>you know, really heavily focused on investment banking, the theme

0:12:10.200 --> 0:12:12.680
<v Speaker 11>over the past year really has been a slow down

0:12:12.800 --> 0:12:16.800
<v Speaker 11>in IPO activity and mergers and acquisitions. The expectation is

0:12:16.840 --> 0:12:19.880
<v Speaker 11>that will continue. There also will be a focus on

0:12:19.920 --> 0:12:23.720
<v Speaker 11>Goldman's need to cut expenses. So before all of the

0:12:23.800 --> 0:12:26.840
<v Speaker 11>regional bank crises happened last month, really there was this

0:12:26.880 --> 0:12:30.439
<v Speaker 11>focus on that one billion dollar cost cutting plan at Goldman,

0:12:30.760 --> 0:12:33.280
<v Speaker 11>So any movement that they could make could bode well

0:12:33.360 --> 0:12:36.520
<v Speaker 11>for the bank. Finally, thinking about trading, so the end

0:12:36.559 --> 0:12:39.680
<v Speaker 11>of the last quarter had some volatility, which could help

0:12:39.800 --> 0:12:42.600
<v Speaker 11>trading groups at Goldman. Now if you pivot to Bank

0:12:42.640 --> 0:12:45.360
<v Speaker 11>of America, you get a very different bank, right, Nathan.

0:12:45.559 --> 0:12:47.320
<v Speaker 11>It goes back to some of those banks that reported

0:12:47.400 --> 0:12:50.600
<v Speaker 11>last week, more similar to JP Morgan, where we did

0:12:50.640 --> 0:12:53.040
<v Speaker 11>see that good news about net interest income. We actually

0:12:53.080 --> 0:12:56.600
<v Speaker 11>did see some good news about deposit inflows, even an

0:12:56.720 --> 0:12:59.760
<v Speaker 11>uptick at JP Morgan. So Bank of America has a

0:12:59.760 --> 0:13:02.880
<v Speaker 11>pre high bar to follow their Yeah, I would have

0:13:02.960 --> 0:13:03.560
<v Speaker 11>to say so.

0:13:03.760 --> 0:13:05.880
<v Speaker 2>I mean, you will have to think that Bank of

0:13:05.920 --> 0:13:10.679
<v Speaker 2>America could benefit pretty substantially from some of those depositor

0:13:10.760 --> 0:13:14.800
<v Speaker 2>inflows given its pretty strong focus on the consumer side

0:13:14.840 --> 0:13:15.800
<v Speaker 2>of the banking business.

0:13:16.080 --> 0:13:17.920
<v Speaker 11>That's a really good point and one of the points

0:13:17.920 --> 0:13:20.160
<v Speaker 11>that analysts have been making over the past few weeks

0:13:20.200 --> 0:13:23.400
<v Speaker 11>has just been about the fact that size for these

0:13:23.440 --> 0:13:26.960
<v Speaker 11>big banks really seems to have mattered over the tumultuous

0:13:27.040 --> 0:13:30.760
<v Speaker 11>few weeks when depositors really were concerned about the health

0:13:30.760 --> 0:13:33.040
<v Speaker 11>and safety of banks. You know, whether or not those

0:13:33.080 --> 0:13:37.480
<v Speaker 11>concerns were founded, we certainly have seen movements to some

0:13:37.600 --> 0:13:40.040
<v Speaker 11>of the larger banks. So JP morgan I mentioned they

0:13:40.120 --> 0:13:43.920
<v Speaker 11>actually saw an optic of one point six percent in deposits,

0:13:44.120 --> 0:13:46.800
<v Speaker 11>and that, funnily enough, bucks a trend that we've been

0:13:46.840 --> 0:13:49.240
<v Speaker 11>seeing over the past year, which was the movement of

0:13:49.320 --> 0:13:53.439
<v Speaker 11>deposits to higher yielding accounts, to higher yielding vehicles, to

0:13:53.600 --> 0:13:57.560
<v Speaker 11>money market funds, to treasuries, even to Series one savings bonds,

0:13:57.559 --> 0:13:59.480
<v Speaker 11>which we have written about so many times. It had

0:13:59.559 --> 0:14:02.680
<v Speaker 11>happened so popular with consumers. So you know, there could

0:14:02.760 --> 0:14:05.120
<v Speaker 11>be a surprise with Bank of America. Actually it may

0:14:05.240 --> 0:14:08.840
<v Speaker 11>not be as good on the deposit front as some expect,

0:14:09.400 --> 0:14:11.559
<v Speaker 11>and that is certainly a concern, and of course they have,

0:14:12.360 --> 0:14:14.679
<v Speaker 11>you know, some stiff competition. Now.

0:14:14.760 --> 0:14:16.960
<v Speaker 2>Yeah, there is a lot of attention now on these

0:14:17.320 --> 0:14:19.960
<v Speaker 2>high yielding accounts. I mean, we just saw that story

0:14:20.040 --> 0:14:23.720
<v Speaker 2>yesterday with Goldman Sex getting ready to report here and

0:14:23.960 --> 0:14:27.000
<v Speaker 2>coming in with this partnership with Apple, of all places

0:14:27.520 --> 0:14:31.200
<v Speaker 2>offering a high yield savings account, are we in a

0:14:31.360 --> 0:14:34.720
<v Speaker 2>place where we're looking at kind of an arms race

0:14:34.800 --> 0:14:38.720
<v Speaker 2>when it comes to trying to attract customers with higher

0:14:38.760 --> 0:14:41.920
<v Speaker 2>interest rates, not just with the banks but with FinTechs.

0:14:42.280 --> 0:14:45.800
<v Speaker 11>You know that Apple disclosure may be an opening salvo

0:14:46.000 --> 0:14:48.960
<v Speaker 11>in an arms race. Four point one five percent for

0:14:49.040 --> 0:14:52.040
<v Speaker 11>a savings account there that is certainly going to put

0:14:52.080 --> 0:14:55.160
<v Speaker 11>pressure on other banks. That figure four point one five

0:14:55.160 --> 0:14:58.720
<v Speaker 11>percent is ten times the national average. And this was

0:14:58.760 --> 0:15:00.760
<v Speaker 11>a concern that a lot of re regional banks had

0:15:00.760 --> 0:15:03.600
<v Speaker 11>that some of these megabanks would start pushing up the

0:15:03.640 --> 0:15:06.640
<v Speaker 11>amount that they could give to depositors, which would push

0:15:06.680 --> 0:15:10.360
<v Speaker 11>the deposits at those regional banks to come under pressure,

0:15:10.400 --> 0:15:12.760
<v Speaker 11>potentially lose deposits or actually or lose some of that

0:15:12.840 --> 0:15:16.000
<v Speaker 11>net interest income. Now, what we saw last week with

0:15:16.080 --> 0:15:20.000
<v Speaker 11>some of the megabanks was less of an upward pressure

0:15:20.040 --> 0:15:22.600
<v Speaker 11>than some may have feared. We'll see what happens with

0:15:22.640 --> 0:15:25.520
<v Speaker 11>Thank America, because, as you say, they do have so

0:15:25.640 --> 0:15:28.560
<v Speaker 11>many consumer deposits, they may be feeling pressure there. But

0:15:28.760 --> 0:15:31.360
<v Speaker 11>I do I would have to agree with you. I

0:15:31.360 --> 0:15:33.640
<v Speaker 11>think this is the beginning of a new era that

0:15:33.720 --> 0:15:36.280
<v Speaker 11>we don't necessarily know how it will end, because it's

0:15:36.320 --> 0:15:37.800
<v Speaker 11>been a while since we've been in such a high

0:15:37.880 --> 0:15:40.440
<v Speaker 11>rate environment. Also, the last time we were in a

0:15:40.520 --> 0:15:43.320
<v Speaker 11>similar environment, there was not social media, there was not

0:15:43.360 --> 0:15:46.600
<v Speaker 11>the ability to transfer money quite as quickly as it

0:15:46.640 --> 0:15:48.880
<v Speaker 11>can be transferred now. So this could bring some surprises.

0:15:49.040 --> 0:15:51.360
<v Speaker 2>Only about thirty seconds left here, Charlie. But if we

0:15:51.440 --> 0:15:54.240
<v Speaker 2>start to see this race continue, what could it mean

0:15:54.320 --> 0:15:57.680
<v Speaker 2>for margins for some of these banks, If they're competing

0:15:57.760 --> 0:16:02.040
<v Speaker 2>to raise deposit ray, what could that mean for their profits?

0:16:02.120 --> 0:16:04.600
<v Speaker 11>It could certainly put them under pressure. And deposits are

0:16:04.680 --> 0:16:06.520
<v Speaker 11>so important for banks, and they've in a lot of

0:16:06.560 --> 0:16:09.440
<v Speaker 11>ways been taken for granted. You know, they're effectively some

0:16:09.480 --> 0:16:12.440
<v Speaker 11>of the cheapest funding that they can gap for other activities.

0:16:12.640 --> 0:16:14.720
<v Speaker 11>And if those start to go, you know that deposit

0:16:14.800 --> 0:16:18.320
<v Speaker 11>beta will shift and they'll potentially have to pay more

0:16:18.360 --> 0:16:21.840
<v Speaker 11>to depositors or risk flight. And as we've seen, it's

0:16:21.880 --> 0:16:25.080
<v Speaker 11>easier and easier to take flight of that capital these days.

0:16:27.560 --> 0:16:30.640
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