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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: Good morning.

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Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 1: stories we're following today, Karen.

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Speaker 3: The rise in futures comes as the S and P

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Speaker 3: five hundred is coming off its biggest losing streak since January.

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Speaker 3: Stocks fell for a fourth straight day. They're now down

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Speaker 3: more than four percent from their all time high. The

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Speaker 3: declines come as more Federal Reserve officials urge patients on

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Speaker 3: rate cuts. FED Governor Michelle Bowman says the battle against

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Speaker 3: inflation continues.

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Speaker 4: What we've seen over the past first few months of

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Speaker 4: twenty twenty four, anyway, is that progress on inflation has slowed,

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Speaker 4: and I expect maybe it's even stalled at this point.

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Speaker 3: FED Governor Michelle Bowman's comments were echoed by Cleveland FED

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Speaker 3: President Lorettamester at a separate event. She said the Central

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Speaker 3: Bank should not be in a hurry to cut well.

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Speaker 1: Nathan One FED critics as policymakers should begin the rate

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Speaker 1: cutting process. UBS Global Wealth Management chief economist Paul Donovan

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Speaker 1: says the FED should focus on the positive news regarding

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Speaker 1: its preferred inflation gauge, the PCEE deflator.

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Speaker 5: What we do not want in this environment is rising

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Speaker 5: real interest rates. Because the economy is slowing. You've got

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Speaker 5: the highest interest rates in twenty three years, You've got

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Speaker 5: a fiscal drag on growth. The economy is slowing down.

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Speaker 5: You don't want to exacipate that with rising retial rates.

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Speaker 5: So I think the message needs to be follow the

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Speaker 5: PC de plate to lower ubs.

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Speaker 1: Global Wealth Management chief economist Paul Donovan, speaking yesterday on

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Speaker 1: Bloomberg surveillance, traders now see just one to two rate

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Speaker 1: cuts this year. That's a far cry from the roughly

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Speaker 1: six they expected at the start of twenty twenty four.

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Speaker 3: Back in New York, Karen jury selection resumes today in

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Speaker 3: the hush money trial of Donald Trump. Seven jurors have

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Speaker 3: been picked so far in the first ever criminal case

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Speaker 3: against a former president.

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Speaker 1: Meanwhile, Nathan Trump is facing more pressure from economists in

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Speaker 1: his circle to embrace a flat tax rate. While the

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Speaker 1: former president has not endorsed a flat tax, he has

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Speaker 1: called for more middle class tax cuts. Weget details now

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Speaker 1: from Bloomberg's Amy Morris in Washington.

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Speaker 6: Steve Forbes, former White House economic advisor Larry Cudlow, and

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Speaker 6: economists Steven Moore and author Laffer are not official advisors

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Speaker 6: to the Trump campaign, but they are pushing for their

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Speaker 6: preferred economic policies ahead of a potential second term. Forbes

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Speaker 6: is pushing for a flat seventeen percent tax rate for

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Speaker 6: all income brackets with exemptions. Cudlow supports renewal of Trump's

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Speaker 6: twenty seventeen tax cuts, but Laffer says he would support

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Speaker 6: lowering the corporate rate even more now. Donald Trump has

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Speaker 6: told allies he wants to keep that twenty one percent

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Speaker 6: corporate rate in place and instead extend individual cuts to

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Speaker 6: avoid alienating working class voters. In Washington, Amy Moore as

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Speaker 6: Bloomberg Radio.

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Speaker 3: All right, Amy, thank you. We're learning Donald Trump's campaigns

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Speaker 3: telling other Republicans to pay up if they use the

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Speaker 3: former president's name, image, or likeness in their fundraising solicitations.

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Speaker 3: In a campaign memo obtained by Bloomberg News, all candidates

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Speaker 3: and committees who use Trump in their fundraising appeals must

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Speaker 3: give a minimum five percent of the funds they raise

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Speaker 3: to the Trump Political Operation.

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Speaker 1: Well Nathan, Donald Trump's opponent Joe Biden, is on the

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Speaker 1: campaign trail. Speaking of Pittsburgh, the president vowed to keep

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Speaker 1: United States Steel American owned.

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Speaker 7: US still has been an iconic American company for more

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Speaker 7: than a century, and it should remain a totally American,

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Speaker 7: American owned, American operated by American union steel workers, the

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Speaker 7: best in the world. And that's going to happen, I

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Speaker 7: promise you.

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Speaker 1: In Japan's Nippon Steele plans to acquire US Steel for

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Speaker 1: more than fourteen billion dollars.

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Speaker 3: And President Biden's talking tougher about China. Karen is. He

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Speaker 3: highlights the challenges to its economy.

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Speaker 7: They've got a population that is more people in retirement

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Speaker 7: than working. They're not they're not important to any They're

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Speaker 7: not bringing there's xenophobic, nobody coming else coming in. They've

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Speaker 7: got real problems. I'm not looking for a fight with China.

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Speaker 7: I'm looking for competition, but fair competition.

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Speaker 3: To the President's latest letter, it comes two weeks after

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Speaker 3: his latest phone call with Chinese President Shi Jinping. The

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Speaker 3: Chinese economy did grow faster than expected in the first quarter,

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Speaker 3: but there are still questions about the strength of that recovery.

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Speaker 1: Well, Nathan, more pressure could be coming for China from Congress.

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Speaker 1: The House is on a fast track to approve the

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Speaker 1: bill aimed at forcing a sale of TikTok. Speaker Mike

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Speaker 1: Johnson plans to include it in the aid package for

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Speaker 1: Ukraine in Israel that he's teed up for votes on Saturday.

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Speaker 1: Two Republicans have threatened to try to oust Johnson over

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Speaker 1: foreign aid, but the Speaker is undaunted.

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Speaker 8: My philosophy is you do the right thing and you

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Speaker 8: let the chips fall where they may. I don't if

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Speaker 8: I operated out of fear over emotion to vacate, I

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Speaker 8: would never be able to do my job.

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Speaker 1: Speaker Johnson has already passed the TikTok bill in the House.

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Speaker 1: Attaching it to the foreign aid bill could force the

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Speaker 1: Senate to accept it as a condition for supporting Israel

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Speaker 1: and Ukraine.

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Speaker 3: Well Karen Senate Democrats have not accepted impeachment articles against

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Speaker 3: Homeland Security Secretary Alejandro Majorcis. They have tossed the charges.

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Speaker 3: Bloomberg's Dan Schwartzman has.

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Speaker 9: That Democrats in the Senate voted to dismiss both articles

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Speaker 9: of impeachment against Homeland Security Secretary Alejandro Majorkis. The vote

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Speaker 9: was mostly along party lines, except for Alaska Republican Lisa

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Speaker 9: Rokowski voting president on a measure to toss the first

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Speaker 9: impeachment article. Republicans have accused Maiorkis of refusing to enforce

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Speaker 9: immigration laws. The secretary is the first sitting cabinet member

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Speaker 9: in US history to be impeached. Democrats say the measure

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Speaker 9: was unconstitutional because it didn't meet the constitutional bar of

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Speaker 9: a high crime or misdemeanor. Republicans accused Democrats of failing

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Speaker 9: to take the charges against Majorcis seriously and that the

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Speaker 9: American people deserve to hear the evidence. Dan Schwartzman, Bloomberg Radio.

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Speaker 1: All right, Dan, thanks now back to the Marcus. Keeping

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Speaker 1: an eye on chip stocks this morning. Taiwan Semiconductor Manufacturing

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Speaker 1: expects revenue to rise as much is thirty percent this quarter.

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Speaker 1: The better than projected outlook follows its first profit rise

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Speaker 1: in a year after strong AI demand revived growth at

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Speaker 1: the world's biggest contract chip maker. TSMC is the main

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Speaker 1: chip maker for Nvidia and Apple, and.

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Speaker 3: Shares of Micron Technology are on the rise as well, Karen.

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Speaker 3: They're up two and a half percent in early trading.

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Speaker 3: The largest US maker of computer memory chips, this poised

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Speaker 3: to get six point one million dollars billion dollars I

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Speaker 3: should say billion with a B in grants from the

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Speaker 3: Commerce Department to help pay for domestic factory projects. This

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Speaker 3: is all part of an effort to bring semiconductor production

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Speaker 3: back to US soil.

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Speaker 1: And it's time now for a look at some of

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Speaker 1: the other stories making news in New York and around

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Speaker 1: the world. And for that we're joined by Bloomberg's John Tucker. John,

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Speaker 1: Good morning and.

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Speaker 8: Good morning, Karen. Republicans have VOP held the Arizona abortion ban.

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Speaker 8: Let's get more on that story this morning from Bloomberg

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Speaker 8: Steve Podisc.

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Speaker 10: Republicans in the Arizona State House Block two attempts Wednesday

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Speaker 10: to repeal the state's one hundred and sixty year old

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Speaker 10: near total ban on abortion, despite pressure on the GOP,

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Speaker 10: including from former President Donald Trump, to change course on

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Speaker 10: the hot button issue. But later in the day, two

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Speaker 10: Senate Republicans joined with Democrats and up to create a

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Speaker 10: majority to move forward with their version of a repeal.

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Speaker 10: A final vote on the bill could be weeks away.

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Speaker 10: If the Senate does ultimately vote to repeal the ban,

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Speaker 10: the measure would go back to the House, where it

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Speaker 10: would still face.

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Speaker 8: A difficult path. Steve Podisk Bloomberg Radio two hearings on

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Speaker 8: Capitol Hill focused on Boeing. In the first, a report

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Speaker 8: exposed holes in the safety culture at the company. Three

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Speaker 8: witnesses backed it up with testimony for senators. The second

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Speaker 8: hearing featured a former Boeing engineer and saying the airplane

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Speaker 8: manufacture is not up to par. Senator Richard bluminthalf Connecticut

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Speaker 8: had this message for the flying public.

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Speaker 11: The aircraft as a whole may be safe insofar as

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Speaker 11: people getting on planes shouldn't panic, but they need to

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Speaker 11: be made fully safe.

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Speaker 8: Speaking to ABC, President Biden will be endorsed by more

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Speaker 8: than a dozen members of the Kennedy family at an

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Speaker 8: event today in Philadelphia as he looks to blunt the

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Speaker 8: outsider presidential bid of Robert F. Kennedy Junior. Biden will

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Speaker 8: be introduced by Kerry Kennedy, the sister of the third

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Speaker 8: party candidate, and joined by fellow siblings. Poll suggests that

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Speaker 8: Robert F. Kennedy Junior, whose promoted conspiracy theories, could place

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Speaker 8: spoiler as mister Biden seeks to win reelection. And Google

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Speaker 8: fired twenty eight employees after they were involved in protests

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Speaker 8: against Project Nimbus, a one point two billion dollar joint

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Speaker 8: contract with Amazon to provide the Israeli government with AI

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Speaker 8: and cloud services. The protests took place across Google offices

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Speaker 8: in New York City, Seattle, and Sunnyvale, California. Global News

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Speaker 8: twenty four hours a day and whenever you wanted with

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Speaker 8: Bloomberg News. Now, I'm John Tucker, and VC is Bloomberg

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Speaker 8: Karen and Nathan.

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Speaker 1: All right, John, thank you time now for the Bloomberg

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Speaker 1: Sports Update with John stash Hour. John, Good morning, Good.

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Speaker 12: Morning, Karen's looking like the Knicks are going to continue

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Speaker 12: their long history of playoff series with Miami. The Heat

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Speaker 12: had a fourteen points second half lete in Philadelphia. The

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Speaker 12: fans were booing the Sixers. Philly came alive rally to

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Speaker 12: win one oh five to one to oh four. Joe

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Speaker 12: lmb twenty three points, fifteen rebounds, Nick patuone with twenty

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Speaker 12: off the bench. Tyrese Maxi scored nineteen. Was then asked

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Speaker 12: about now facing the Knicks.

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Speaker 13: They're extremely grinding team. They play hard, they're physical, and

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Speaker 13: they're tough, and that's their identity. So for us to

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Speaker 13: go in there and try to get w's and try

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Speaker 13: to win this series, we have to mess that and

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Speaker 13: not just matchup. But we have to overcome that and

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Speaker 13: be better than that in n be extremely physical as well.

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Speaker 12: Game one Saturday at the Garden, the Heat, who came

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Speaker 12: out of the play in the play in last year's

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Speaker 12: NBA Finals, now go home to play Chicago tomorrow. The

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Speaker 12: Bulls beat Atlanta one thirty one, one sixteen. Kobe White

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Speaker 12: scored forty two points. The winner of that game tomorrow

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Speaker 12: will then take on the Celtics and the NFL playoff

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Speaker 12: matchups set in the East, not yet in the West.

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Speaker 12: Although Dallas did win the winch the West one seed

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Speaker 12: the playoff found Islanders finished the regular season with another win,

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Speaker 12: five to four over Pittsburgh in Toronto. Looked like another

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Speaker 12: quiet game for Yankee Bats. They trailed the Blue Jays

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Speaker 12: four to one eighth inning, looked like they'd come home

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Speaker 12: with a four game losing the Street, but Juan Soto

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Speaker 12: homeward in the eighth. Jack Carlos Stands on the ninth

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Speaker 12: Yanks scored again, and then with the game tied, Aaron

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Speaker 12: Judge a two run single, Yanks won six to four.

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Speaker 12: Judge with a hit, raising his average till one eighty three.

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Speaker 12: A couple of x Yanks helped the Mets finish a

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Speaker 12: home sweep of the Pirates. Find the pitching of Luis Savarino,

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Speaker 12: A homer by Harrison Vader, The Mets one ninety one,

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Speaker 12: John Stashedward, Bloomberg Sports, Karen Nathan.

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Speaker 1: All Right, John Thanks SMP futures have a quarter percent

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Speaker 1: or twelve points down, futures up, a tenth of a

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Speaker 1: percent or forty points NASDAK futures at four tenths of

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Speaker 1: percent or seventy points tenure Treasury yields four point five

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Speaker 1: seven percent.

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Speaker 11: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 11: and around the world on Bloomberg dot Com and the

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Speaker 11: Bloomberg Business app.

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Speaker 3: This is Bloomberg day Break Morning. I'm Nathan Hager, JP,

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Speaker 3: Morgan Chase CEO. Jamie Diamond has made no secret that

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Speaker 3: his firm is all in on artificial intelligence. In fact,

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Speaker 3: this month, he devoted a pretty significant chunk of his

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Speaker 3: annual shareholder letter to the importance of the technology for

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Speaker 3: the Wall Street Giants business and for society at large.

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Speaker 3: In the premiere episode of the second season of The Circuit,

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Speaker 3: Jamie Diamond joined Bloomberg Original's host and executive producer Emily

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Speaker 3: Chang to discuss the opportunity offered by AI. Before that, though,

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Speaker 3: Emily asked Jamie Diamond, if JP Morgan, the world's largest

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Speaker 3: publicly listed bank, is now too large, let's go to

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Speaker 3: part of their conversation.

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Speaker 14: Now.

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Speaker 15: I think the question is what works for consumers and

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Speaker 15: industries and stuff like that. So you know, if you

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Speaker 15: want to build a Boeing aircraft, you have to be big.

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Speaker 15: You can pretend that you don't if you want to

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Speaker 15: do what JP Morgan does. We move ten trillion dollars

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Speaker 15: of money around the world every day. We bank some

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Speaker 15: of these companies in thirty countries. We bank trees, We

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Speaker 15: bank the World Bank, the IMF, we bank the United

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Speaker 15: States government. You have to be big. You can't do

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Speaker 15: those things and be small. I applaud the small banks.

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Speaker 15: We're the biggest bank, community banks and regional banks and

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Speaker 15: stuff like that.

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Speaker 14: And I understand, you know, some of the stress around it.

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Speaker 14: We're trying to help. So it's not either or so.

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Speaker 16: Going a little bigger picture. Now, you run the biggest

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Speaker 16: bank in the world, you have our money, You've got

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Speaker 16: world leaders on speed dial. That's a lot of power.

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Speaker 16: How do you decide when and how to wield that power.

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Speaker 14: Yeah, I'm not sure.

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Speaker 15: I have a lot of people at speed, doll you

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Speaker 15: say all that, Sometimes I think I'm just riding the

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Speaker 15: Bronco and hanging out for deal life. You know, I

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Speaker 15: love what I do. I try to talk that around.

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Speaker 15: I try to keep my mind open. One of the

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Speaker 15: benefits from traveling the world. I just in Mumbai, in

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Speaker 15: Switzerland and seeing clients. You learn a lot and you

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Speaker 15: try to make sure you're that you're doing the proper

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Speaker 15: assessment of the world, that you're looking at the options.

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Speaker 14: You're not like just saying we're going to do this.

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Speaker 15: I look as part of our job to try to

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Speaker 15: have countries to help country do the best they can

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Speaker 15: for their citizens.

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Speaker 14: So we bank countries.

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Speaker 15: We also advise them on skills and trade and economics.

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Speaker 15: You look at our research, it's a lot around how's

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Speaker 15: an economy run. So when you go to like when

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Speaker 15: I got back from Mumbai, we research one hundred and

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Speaker 15: fifty companies now or something like that. So we're educating

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Speaker 15: the world about those companies. We're educating the world but

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Speaker 15: the Indian economy. As we do that, we indicate also

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Speaker 15: educate the Indians about what works in their economy and

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Speaker 15: what doesn't work, and those are important things to lift

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Speaker 15: up society.

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Speaker 16: You've got this reputation as a sort of white Night

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Speaker 16: for the economy. Do you ever feel pressure to come

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Speaker 16: in with the save?

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Speaker 15: I feel a tremendous amount of pressure to do Obviously

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Speaker 15: my family comes first, okay, but to do a great

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Speaker 15: job for my company and our clients. But I also

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Speaker 15: feel a huge burn to do a good job for

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Speaker 15: my country. So you know, when my country wants me

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Speaker 15: to do something, and we talk all the time to

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Speaker 15: you know, their senators and regulators, what can we do

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Speaker 15: to make the system better, to lift up the country,

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Speaker 15: lift up.

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Speaker 14: In the cities.

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Speaker 15: We're trying to figure out how to make society better,

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Speaker 15: and I do consider that.

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Speaker 14: Part of our job.

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Speaker 16: I know you mentioned chet GPT and your annual letter.

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Speaker 16: Have you tried it?

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Speaker 14: Yeah? If I had my phone, i'd show you.

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Speaker 16: What do you use it for?

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Speaker 14: I just ask you questions like what I don't remember?

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Speaker 14: What'sda bee chain going to ask me?

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Speaker 16: We've got a top notch group investigating AI. What are

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Speaker 16: they up to? What's the next level of finance you

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Speaker 16: think AI can unlock?

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Speaker 14: Yeah?

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Speaker 15: So I think the most important thing is that it's

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Speaker 15: AI is real. We already have thousands of people doing it,

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Speaker 15: top scientists around their own Manu level Velosa from who

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Speaker 15: ran Carnegie Mellon machine learning. And it's a living breathing thing.

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Speaker 15: So people want to answer, what's going to do. It's

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Speaker 15: a living breathing thing.

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Speaker 14: It's going to change.

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Speaker 15: They're going to be all different types of models and

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Speaker 15: different types of tools and technology.

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Speaker 14: But the way to think about for us.

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Speaker 15: Is every single process, so errors, trading, hedging, research, every

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Speaker 15: app every database, you can be applying AI. So it

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Speaker 15: might be as a copilot, it might be to replace humans.

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Speaker 15: You know, AI is doing all the equity hedging for us.

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Speaker 15: For the most part, it's idea generation, it's large language models.

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Speaker 15: It's no taking while you're talking to someone and whiles

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Speaker 15: taking notes and may actually say to you that, you know,

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Speaker 15: here's the thing of interest to climb by Peterston.

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Speaker 14: All error, all customer service. It's a little bit of everything.

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Speaker 16: But it is going to replace some jobs, of course.

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Speaker 15: Yeah, but I look, folks, people have to take a

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Speaker 15: deep breath. Okay, technologies always replaced jobs. Your children will

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Speaker 15: live to one hundred and not have cancer because of

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Speaker 15: technology and literally they'll probably be working three.

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Speaker 14: And a half days a week.

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Speaker 15: So technology has done unbelievable things from mankind. You know,

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Speaker 15: planes crash, pharmacials get misused. There are negatives. This is

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Speaker 15: one of the biggest negative in my view, is AI

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Speaker 15: being used by bad people to do bad things, think

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Speaker 15: of cyber but you know the fact and I do

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Speaker 15: think you know, eventually have legal guardrails around. It's kind

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Speaker 15: of hard to do because it's new, but it will

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Speaker 15: add a huge value. And you know, for JP Morgan

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Speaker 15: if it replaces jobs and.

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Speaker 14: We hope to redeploy people.

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Speaker 16: So is there going to be a point where I

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Speaker 16: can turn to chat JPM and say I have thirty

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Speaker 16: years or I want to get rich quick? What should

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Speaker 16: I do with my money?

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Speaker 14: Well, the rich quick?

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Speaker 15: I hope it tells you that you're crazy. Yeah, but

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Speaker 15: we in some ways can do a little bit ray today.

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Speaker 15: And you know, usually if you look at like wealth

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Speaker 15: plans that we have, which I think are quite good,

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Speaker 15: they have a lot of AI em better than that.

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Speaker 14: And if soon I'll have more AI.

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