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Speaker 1: From the Bloomberg Interactive Burger's Studios. This is Bloomberg day

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Speaker 1: Break for Friday, June twenty third. Coming up today, the.

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Speaker 2: Search for the missing Titanic sub comes to a tragic end.

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Speaker 1: Global stocks are on track for their biggest weekly decline

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Speaker 1: in three months.

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Speaker 2: Janet Yellen says the risk of a US recession is receding.

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Speaker 1: And City Group has a warning for employees on office attendance.

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Speaker 3: A section of I ninety five that collapsed in Philadelphia

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Speaker 3: reopens today. Plus Congress mon Santos slams a judge for

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Speaker 3: revealing the names behind posting his bond. I'm Michael Barr.

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Speaker 3: More ahead.

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Speaker 4: John stas Shower sports a lopsided loss to the Yankees.

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Speaker 4: The Mets to night visit Philadelphia. They held the NBA

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Speaker 4: Draft in Brooklyn.

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Speaker 5: That's all straight ahead on Bloomberg day Break, The Business

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Speaker 5: news you need to starn your day in just one

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Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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Speaker 5: Business app, and everywhere you get your podcasts.

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Speaker 2: Good morning, I'm Nathan.

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

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Speaker 1: following today.

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Speaker 2: First, we begin with a tragic end to the search

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Speaker 2: for that submersible it was exploring the Titanic. Rescuers have

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Speaker 2: found the nose cone and other debris from the vessel,

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Speaker 2: known as the Titan. Coastguard Rear Admiral John Monger says

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Speaker 2: the five people on board are dead.

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Speaker 6: In consultation with experts from within the Unified Command, the

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Speaker 6: debris is consistent with the catastrophic loss of the pressure chamber.

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Speaker 2: We're Admiral John Mager says, they're going to keep collecting

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Speaker 2: information to determine the cause of that implosion. Bloomberg News

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Speaker 2: has learned the US Navy detected the implosion on Sunday

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Speaker 2: at the site where the Titan loss communications. A senior

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Speaker 2: Navy official says a decision was made to continue the

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Speaker 2: search and rescue to make every effort to save lives.

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Speaker 1: Well, Nathan, we turn now to the nation's capital, where

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Speaker 1: geopolitics and foreign relations are in focus. It was a

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Speaker 1: red carpet welcome for India's Prime Minister as Narndra of

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Speaker 1: Mody met with President Biden at the White House yesterday.

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Speaker 1: I joined press conference was followed by Modi addressing Congress.

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Speaker 1: Amy Morris has Moore from our Bloomberg ninety nine one

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Speaker 1: newsroom in Washington.

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Speaker 7: President Biden in Prime Minister Mody announced a series of

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Speaker 7: defense and commercial deals designed to improve military and economic

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Speaker 7: ties between the two nations during yesterday's state visit at

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Speaker 7: the White House. Later, Mody made a rare address to

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Speaker 7: a joint meeting of Congress, where he stressed the importance

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Speaker 7: of democracy.

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Speaker 5: The beauty of democracy in the constant connect with the people,

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Speaker 5: to listen to them.

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Speaker 7: At least seventy lawmakers called on President Biden to address

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Speaker 7: human rights violations in India. Still, Mody was met with

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Speaker 7: applause on Capitol Hill. The evening ended with a state

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Speaker 7: dinner at the White House in Washington. I'm Amy Morris

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Speaker 7: Bloomberg Daybreak.

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Speaker 8: Thank you Amy.

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Speaker 2: At that joint news conference with Prime Minister Modi, President

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Speaker 2: Biden also addressed relations with answering questions about this week's

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Speaker 2: comment where he referred to Chinese President Shi Jinping as

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Speaker 2: a dictator.

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Speaker 9: We had an incident that caused some confusion, you might say,

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Speaker 9: but President, but the Secretary of b Lincoln had a

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Speaker 9: great trip to China. I expect to be meeting with

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Speaker 9: President she sometime in the future, in the near term,

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Speaker 9: and I don't think it's had any real consequence.

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Speaker 2: All those sentiments from President Biden do not appear to

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Speaker 2: be shared by China. A spokesman for the Chinese embassy

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Speaker 2: says the president's remarks were quote erroneous, absurd, and irresponsible.

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Speaker 1: Well, we turned to the markets now, Nathan, and are

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Speaker 1: seeing global stocks had for their biggest weekly decline in

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Speaker 1: more than three months. Concerns of our higher interest rates

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Speaker 1: appear to be the catalyst. At the same time, we're

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Speaker 1: getting a positive outlook from the Treasury Secretary Jennet Yellen

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Speaker 1: says the risk of a US recession is declining. We

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Speaker 1: get more from Bloomberg's dun Krisner.

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Speaker 10: In an interview with Bloomberg News, Yellen said the odds

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Speaker 10: of recession, if anything, have gone down. That's because of

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Speaker 10: a tight labor market and inflation coming down. When it

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Speaker 10: comes to consumption, Yellen said we probably need to see

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Speaker 10: some slow down in spending in order to get inflation

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Speaker 10: under control. She said the core measure of price increases

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Speaker 10: is quite high. Yellen also said we could have a

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Speaker 10: lovely debate about what the inflation target would be, but

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Speaker 10: this is not the time for that debate. Fedhair J.

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Speaker 10: Powell has rejected the idea of entertaining a change in

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Speaker 10: the two percent target sentiment. He reiterated before Congress this

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Speaker 10: week in New York. I'm Doug Krisner Bloomberg Daybreak.

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Speaker 2: Thank you, Doug. Speaking of Jay Powell. The Fed chairs

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Speaker 2: wrapped up his semi annual testimony to Congress, and yesterday

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Speaker 2: saw Powell weighing in on the banking crisis. He says

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Speaker 2: Wall Street's biggest lenders may have to increase capital requirements

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Speaker 2: by twenty percent.

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Speaker 11: The capital requirements will be very, very skewed to the

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Speaker 11: eight largest banks. The jesips there may be some capital

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Speaker 11: increases for the other banks, and they won't. I'm not

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Speaker 11: I think none of this should affect banks under a

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Speaker 11: hundred billion.

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Speaker 2: Pal made those comments before the Senate Banking Committee as

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Speaker 2: he wrapped up two days of Congressional testimony.

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Speaker 1: Sticking with the banking sector, plenty of other news to

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Speaker 1: catch you up on this morning. Nathan Blackrock says it's

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Speaker 1: cutting staff. The firm says it's shifting its budget to

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Speaker 1: support critical priorities. Blackrock says the move will affect less

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Speaker 1: than one percent of employees.

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Speaker 2: And City Group's ramping up it's pushed to get its

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Speaker 2: workers back.

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Speaker 12: In the office.

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Speaker 5: Karen.

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Speaker 2: The firm's telling managers to let staff know they will

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Speaker 2: face consequences if they don't comply with office attendance policies.

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Speaker 2: We get the details from Bloomberg's Charlie Pellett.

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Speaker 12: Sources tell Bloomberg. While the vast majority of staffers are

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Speaker 12: following the firm's rules for hybrid work, the moves are

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Speaker 12: focused on those employees with persistent, unexplained absences, the sources,

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Speaker 12: managers will consider compliance with the rules when rating performance

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Speaker 12: and crafting pay packages. Citygroup is widely seen as to

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Speaker 12: be among the most amenable financial firms when it comes

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Speaker 12: to flexible work arrangements. Following the COVID nineteen pandemic in

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Speaker 12: New York, Charlie Pellett Bloomberg Daybreak.

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Speaker 1: All right, Charlie, thanks well. Another big bank has made

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Speaker 1: a settlement involving litigation over Jeffrey Epstein. JP Morgan has

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Speaker 1: agreed to pay two hundred ninety million dollars to settle

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Speaker 1: a lawsuit alleging it knowingly benefited from Epstein's sex trafficking.

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Speaker 1: The deal has been okayed by the lead plaintiff, but

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Speaker 1: must still be approved by a judge. Last month, Deutsche

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Speaker 1: Bank agreed to pay seventy five million dollars to settle

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Speaker 1: it's Epstein related lawsuit.

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Speaker 2: And a settlement's been reached in the first US Zantac

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Speaker 2: cancer lawsuit. British drugmaker GSK has reached a deal with

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Speaker 2: a man who claimed the drug maker's heartburn medication caused

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Speaker 2: his cancer. This is Bloomberg, and now it's time to

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Speaker 2: take a look at some of the other stories making

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Speaker 2: news in New York and around the world.

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Speaker 12: Good morning, Michael barn Good morning.

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Speaker 3: Nathan ben Dott says the temporary lanes of I ninety

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Speaker 3: five will reopen today in Philadelphia. Cruz have been working

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Speaker 3: twenty four to seven since the portion of the interstate collapsed.

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Speaker 3: On June eleventh. Petation Secretary Mike Carroll reached out to

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Speaker 3: Ricky Durst at the Pocono Raceway to see if the

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Speaker 3: state could use its dryer to keep moisture off the road.

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Speaker 13: It is a jet engine. It's gonna blow out about

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Speaker 13: fourteen hundred at fourteen hundred Greece fahrenheit. It's about three

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Speaker 13: thousand pounds of forty as the secretary says, it's buckled

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Speaker 13: into chabby Silverado, So it's a little bit of Franks

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Speaker 13: time thing.

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Speaker 3: Pen Dot says. During the asphalt paving, there were concerns

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Speaker 3: that rain would hold up repair crews. A judge just

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Speaker 3: blocked Wyoming's first in the nation ban on abortion pills

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Speaker 3: before it was set to be implemented July first. Several

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Speaker 3: states have banned abortion outright or restricted access to abortion pills.

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Speaker 3: The ruling comes just ahead of the one year anniversary

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Speaker 3: of the Supreme Court, essentially overturning Roe v. Wade In

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Speaker 3: battled Congressman George Santos is slamming a judge for revealing

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Speaker 3: his father and aunt were the ones who co signed

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Speaker 3: a bail bond to keep him out of jail.

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Speaker 2: My whole thing around keeping the sureties secret. What's for

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Speaker 2: their safety?

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Speaker 1: Because of the death threats I.

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Speaker 2: Get, I can handle that I ran for public office,

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Speaker 2: stated not, you're private citizens. One's a United States Postal worker,

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Speaker 2: the other ones a painter.

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Speaker 3: A request granted to when seal Court records revealed the

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Speaker 3: Long Island Republicans father and on co signed the five

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Speaker 3: hundred thousand dollars bond that enabled Santos's release, as he

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Speaker 3: awaits trial on federal charges of fraud, money laundering, and

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Speaker 3: theft of public funds. Prosecutors in New Mexico filed a

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Speaker 3: new charge against the armorer on the set of the

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Speaker 3: movie rust Hannegutierras Reed is now accused of evidence dampering

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Speaker 3: related to narcotics in connection with the fatal shooting of

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Speaker 3: cinematographer Helena Hutchins. The FDA is doubling down on banning

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Speaker 3: e cigarettes. It's warning store owners stop selling fruit and

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Speaker 3: candy flavored vapes, saying they pose a danger to young people.

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Speaker 3: Global News twenty four hours a day, powered by more

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Speaker 3: than twenty seven hundred journalists and analysts in over one

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Speaker 3: hundred twenty countries. I'm Michael Barran. This is Bloomberg. Nathan.

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Speaker 2: All right, Michael, thank you time now for the Bloomberg

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Speaker 2: Sports Update with John Stasheller. All right, Nathan, and the

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Speaker 2: Yankee game pretty much over.

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Speaker 4: Before the Yanks came to the plate, they were already

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Speaker 4: trailing Seattle four nothing. Mariners then scored twice in each

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Speaker 4: of the next three innings. It was ten to nothing

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Speaker 4: until in Isaiah Connor Fi left a two run homer

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Speaker 4: bottom of the ninth IKF had pitched a perfect top

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Speaker 4: of the ninth. Mariners won ten to two to avoid

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Speaker 4: getting swept Yankees os Texas tonight. Mets are in Philadelphia.

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Speaker 4: They had good success with the Phillis last season, and

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Speaker 4: they swept them a few weeks ago. But since that sweep,

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Speaker 4: the Phillies have gone thirteen and four and the Mets

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Speaker 4: have gone four and thirteen. The Jets back in March

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Speaker 4: acquired veteran safety Chuff Clark from Baltimore. He tore his

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Speaker 4: ACL an off season practice.

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Speaker 3: He'll miss the season.

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Speaker 4: Convictor wembn Yama live up to a tremendous amount of five,

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Speaker 4: nineteen years old from France, seven foot four, best NBA

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Speaker 4: prospect since Lebron James, drafted first overall by San Antonio

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Speaker 4: and focusing on team goals.

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Speaker 14: Some Pyers have tried to win the championship, win a

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Speaker 14: ring for years and haven't made it. And I want to.

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Speaker 8: I want to.

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Speaker 14: I don't want to be one of those, you know,

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Speaker 14: So yeah, this is the this is gonna be my

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Speaker 14: My goal is going to be to get closer and

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Speaker 14: closer every time to the ring.

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Speaker 4: Charlotte, with the second pook took Alabama's Brandon Millard Portland

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Speaker 4: followed with Stute Henderson who played in the G League,

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Speaker 4: and then Houston and Detroit and consecutive picks took twin

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Speaker 4: brothers a man in Ostair Thompson. The Nets back to

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Speaker 4: back first round picks took Noah Clowney from Alabama, then

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Speaker 4: Duke's Derek Whitehead. Another big NBA trade, Chris Paul now

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Speaker 4: goes from Washington to Golden State for Jordan Coole Travelers

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Speaker 4: Golf near hard for Jenny McCarthy leeds by two. Rory

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Speaker 4: McElroy trails by eight, but McElroy had the first hole

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Speaker 4: in one of his pro career John Stash that went

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Speaker 4: to Bluebird Sports.

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Speaker 5: From coast to coast, from New York to San Francisco,

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Speaker 5: Boston to Washington, DC, nationwide on siriusxam the Bloomberg Business

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Speaker 5: Appen Bloomberg dot com. This is Bloomberg Daybreak.

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Speaker 2: Good morning, I'm Nathan Hager. With the explosion of chat

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Speaker 2: GPT over the past year, companies are looking to implement

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Speaker 2: artificial intelligence across their businesses. But what will the future

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Speaker 2: look like with AI in it? Open AI CEO and

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Speaker 2: co founder Sam Altman joined our Emily Chang. At the

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Speaker 2: Bloomberg Technology Summit, they discussed existential questions about AI and

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Speaker 2: what should be done to regulate this powerful technology. Let's

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Speaker 2: listen in to part of that discussion.

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Speaker 15: Now, there's many ways it could go wrong, but we

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Speaker 15: work with powerful technology that can be used in dangerous

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Speaker 15: ways very frequently in the world, and I think we've

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Speaker 15: developed over the decades good safety system practices in many categories.

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Speaker 8: It's not perfect, and this won't be perfect either.

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Speaker 15: Things will go wrong, but I think we'll be able

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Speaker 15: to mitigate some of the worst scenarios you could imagine.

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Speaker 15: You know, bioterror is like a common example, cybersecurities another,

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Speaker 15: like many more we could talk about. But the main

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Speaker 15: thing that I feel is important about this technology is

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Speaker 15: that we are on an exponential curve and a relatively

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Speaker 15: steep one, and human intuition for exponential curves is like

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Speaker 15: really bad in general. It clearly was not that important

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Speaker 15: in our evolutionary history, and so I think we have

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Speaker 15: to given that we all have that weakness. I think

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Speaker 15: we have to like really push ourselves to say, Okay,

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Speaker 15: GPT four, you know, not a risk like you're talking

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Speaker 15: about there, but how sure we the GPT nine won't

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Speaker 15: be and if it might be, even if there's a

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Speaker 15: small percentage chance of it being really bad, like that

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Speaker 15: deserves great care.

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Speaker 16: And if there is that small percentage chance, why keep

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Speaker 16: doing this at all?

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Speaker 15: Like why not stop a I think that the upsides

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Speaker 15: here are tremendous, you know, opportunity for everyone on earth

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Speaker 15: to have a better quality education than basically any one

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Speaker 15: can get today. That seems like really important, and that'd

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Speaker 15: be a bad thing to stop medical care And what's

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Speaker 15: I think going to happen there and making that available

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Speaker 15: like truly globally, that's going to be transformative. The scientific

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Speaker 15: progress we're going to see. I'm a big believer that like,

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Speaker 15: real sustainable improvements in quality of life come from scientific

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Speaker 15: and technological progress, and I think we're gonna have a

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Speaker 15: lot more of that. So there are all the obvious benefits,

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Speaker 15: and you know, like I think would be good to

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Speaker 15: end poverty, Like maybe you think we should stop a

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Speaker 15: technology that can do that, I personally don't, but we

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Speaker 15: got to manage through the risk to get there. I

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Speaker 15: also think at this point, given how much people see

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Speaker 15: the economic benefits and potential, no company could stop it.

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Speaker 15: But global regulation which I only think should be on

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Speaker 15: these like powerful existential risk level systems. Global regulation is hard,

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Speaker 15: and you know you don't want to overdo it for sure,

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Speaker 15: But I think global regulation can help make it safe,

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Speaker 15: which is a better answer than stopping it.

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Speaker 8: So don't think stopping it would work.

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Speaker 16: Let's talk about the global regulation. You've been around the

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Speaker 16: world meeting with regulators. You met with President Biden and

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Speaker 16: the CEOs of Microsoft and Google, and you're calling for regulation,

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Speaker 16: but with some caveats. The critics say it sounds like

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Speaker 16: you're saying regulate us but not really, or that you

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Speaker 16: are calling for regulation in public but lobbying for something

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Speaker 16: else in private.

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Speaker 8: How would you respond to that, we're pushing for it

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Speaker 8: in private too.

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Speaker 15: I mean, obviously we have some opinions about the ways

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Speaker 15: to do it that'll be effective and that will be ineffective. We,

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Speaker 15: for example, don't think small startups and open source models

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Speaker 15: below a certain very high capability threshold should be subject

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Speaker 15: to a lot of regulation. But also we think it

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Speaker 15: is super important that as we think about a system

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Speaker 15: that could be at a risk level like you were

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Speaker 15: talking about, that we have a global and as a

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Speaker 15: coordinated response as possible so we've been talking about that

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Speaker 15: publicly privately, I think it's really important.

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Speaker 3: You know.

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Speaker 15: You could like point out that it's we're like trying

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Speaker 15: to do regulatory capture here or whatever, but I just don't.

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Speaker 15: I think that's like so transparently intellectually dishonest.

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Speaker 8: I don't even know how to respond.

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Speaker 16: You have an incredible amount of power at this moment

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Speaker 16: in time.

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Speaker 8: Why should we trust you?

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Speaker 15: You shouldn't, you know, mean for a long time public talking,

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Speaker 15: I'd rather be in the office working, But I think

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Speaker 15: at this moment in time, like people deserve basically as

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Speaker 15: much time asking questions as they want, and I'm trying

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Speaker 15: to show up and do it. But more to that,

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Speaker 15: like no one person should be trusted here. I don't

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Speaker 15: have super voting shares. I don't want them. The board

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Speaker 15: can fire me. I think that's important. I think the

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Speaker 15: board over time needs to get like democratized to all

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Speaker 15: of humanity. There's many ways that could be implemented. But

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Speaker 15: the reason for our structure, and the reason it's so weird,

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Speaker 15: is we think this technology, the benefits, the access to it,

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Speaker 15: the governance of it, belongs to humanity.

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Speaker 8: As a whole.

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Speaker 15: If this really works, it's like quite a powerful technology,

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Speaker 15: and you should not trust one company.

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Speaker 8: It's certainly not one person.

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