1
00:00:00,560 --> 00:00:03,920
Speaker 1: From the Bloomberg Interactive Workers Studios. This is Bloomberg day

2
00:00:03,920 --> 00:00:07,280
Speaker 1: Break for Wednesday, May thirty. First coming up today.

3
00:00:07,040 --> 00:00:09,799
Speaker 2: The debt ceiling deal clears its first major hurdle and

4
00:00:09,920 --> 00:00:11,120
Speaker 2: heads for a House vote.

5
00:00:11,119 --> 00:00:14,960
Speaker 1: Tonight, JP Morgan holds its Global China Summit in Shanghai.

6
00:00:15,040 --> 00:00:17,520
Speaker 1: We have an exclusive interview with Jamie Diamond.

7
00:00:17,560 --> 00:00:20,480
Speaker 2: Elon Musk meets with government officials on the second day

8
00:00:20,480 --> 00:00:22,239
Speaker 2: of his China trip, and here.

9
00:00:22,040 --> 00:00:25,040
Speaker 1: What Campy Woods says is the next to capitalize on

10
00:00:25,079 --> 00:00:26,000
Speaker 1: the AI frenzy.

11
00:00:26,120 --> 00:00:27,960
Speaker 3: There is an arrest in the shooting death of a

12
00:00:28,000 --> 00:00:31,240
Speaker 3: New Jersey councilwoman. Plus North Korea's attempt to launch his

13
00:00:31,400 --> 00:00:35,800
Speaker 3: first spy satellite ends and failure. I'm Michael barr More aheam.

14
00:00:35,479 --> 00:00:38,440
Speaker 4: John stanstowerds War. It's another ten run game for the Yankees.

15
00:00:38,440 --> 00:00:40,800
Speaker 5: That a win at Seattle Code I Sanga pits the

16
00:00:40,840 --> 00:00:43,320
Speaker 5: Mets to a shutout of the Philly.

17
00:00:43,680 --> 00:00:47,120
Speaker 6: That's all straight ahead on Bloomberg day Break, the Business

18
00:00:47,159 --> 00:00:49,640
Speaker 6: news You need to starn your day in just one

19
00:00:49,720 --> 00:00:54,200
Speaker 6: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

20
00:00:54,240 --> 00:00:56,920
Speaker 6: Business app and everywhere you get your podcasts.

21
00:01:00,000 --> 00:01:01,280
Speaker 2: Good morning, I'm Nathan.

22
00:01:01,040 --> 00:01:04,000
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're

23
00:01:04,040 --> 00:01:04,840
Speaker 1: following today.

24
00:01:05,440 --> 00:01:07,640
Speaker 4: Let's get you the latest on the debt ceiling deal.

25
00:01:07,720 --> 00:01:10,800
Speaker 2: The agreement between President Biden and House Speaker Kevin McCarthy

26
00:01:10,800 --> 00:01:13,600
Speaker 2: has cleared its first hurdle on Capitol Hill after a

27
00:01:13,680 --> 00:01:16,320
Speaker 2: narrow vote through the House Rules Committee. Now the bill

28
00:01:16,360 --> 00:01:18,759
Speaker 2: heads to the full House for final passage as soon

29
00:01:18,800 --> 00:01:21,960
Speaker 2: as tonight. House Majority Leader Steve Scalise thinks it will

30
00:01:22,000 --> 00:01:23,839
Speaker 2: have enough support to cross the finish line.

31
00:01:23,880 --> 00:01:27,200
Speaker 7: We have a seventy two hour minimum that we allow

32
00:01:27,240 --> 00:01:29,080
Speaker 7: every member to read the bill, and the more that

33
00:01:29,200 --> 00:01:32,080
Speaker 7: people read in this bill, the more they find in

34
00:01:32,160 --> 00:01:34,160
Speaker 7: terms of real conservative victories.

35
00:01:34,480 --> 00:01:38,440
Speaker 2: But conservatives like Texas Congressman Chip Roy are standing firm

36
00:01:38,560 --> 00:01:39,520
Speaker 2: against the deal.

37
00:01:39,840 --> 00:01:43,440
Speaker 8: We will continue to fight it today tomorrow, and no

38
00:01:43,520 --> 00:01:46,760
Speaker 8: matter what happens, there's going to be a reckoning about

39
00:01:46,760 --> 00:01:49,320
Speaker 8: what just occurred unless we stop this bill.

40
00:01:49,920 --> 00:01:52,800
Speaker 2: One other conservative, Dan Bishop of North Carolina, is calling

41
00:01:52,880 --> 00:01:55,840
Speaker 2: for a vote to oust Kevin McCarthy, a speaker over

42
00:01:55,920 --> 00:02:00,000
Speaker 2: this deal. Asked whether he's worried about that, McCarthy answered simply.

43
00:02:00,160 --> 00:02:03,080
Speaker 1: Nope, Nathan, So where will the votes to pass the

44
00:02:03,080 --> 00:02:06,480
Speaker 1: bill come from will. House Minority Leader Hankeing Jeffries says

45
00:02:06,480 --> 00:02:10,160
Speaker 1: Democrats will deliver enough conbind with the Republicans to guarantee

46
00:02:10,160 --> 00:02:11,400
Speaker 1: House passage of the deal.

47
00:02:11,760 --> 00:02:14,480
Speaker 9: We as Democrats are going to make sure that we

48
00:02:14,560 --> 00:02:18,079
Speaker 9: do not default on our nation's debt. America should always

49
00:02:18,080 --> 00:02:21,359
Speaker 9: pay our bills, but it's important for Republicans to keep

50
00:02:21,400 --> 00:02:23,800
Speaker 9: the promises that they've made.

51
00:02:23,960 --> 00:02:26,920
Speaker 1: And House Minority Leader Hankeing Jeffries spoke with Joe matthew

52
00:02:26,960 --> 00:02:29,840
Speaker 1: And and Marie hor Dern on Bloomberg's Balance of Power. Catch

53
00:02:29,840 --> 00:02:33,080
Speaker 1: the program weekdays at five pm Eastern on Bloomberg Television.

54
00:02:33,360 --> 00:02:35,799
Speaker 2: Well, the debt ceilings getting most of the attention Karen,

55
00:02:35,840 --> 00:02:39,000
Speaker 2: relations with China are also in the spotlight this morning.

56
00:02:39,240 --> 00:02:42,400
Speaker 2: Despite their differences, Secretary of State Antonine Lincoln says he

57
00:02:42,480 --> 00:02:44,639
Speaker 2: wants a working relationship with China.

58
00:02:44,760 --> 00:02:47,239
Speaker 10: We are not looking for a new Cold War. We're

59
00:02:47,240 --> 00:02:50,800
Speaker 10: not looking to contain China. I think there's a demand

60
00:02:50,840 --> 00:02:54,000
Speaker 10: signal from countries around the world that both China and

61
00:02:54,000 --> 00:02:58,280
Speaker 10: the United States manage the relationship responsibly, that we take

62
00:02:59,200 --> 00:03:02,480
Speaker 10: every reasonable step to make sure that the competition that

63
00:03:02,520 --> 00:03:05,800
Speaker 10: we're in does not veer into conflict.

64
00:03:06,120 --> 00:03:08,960
Speaker 2: Secretary of State Anthony Blincoln made the remarks in Sweden

65
00:03:09,000 --> 00:03:12,799
Speaker 2: at the EU US Trade and Technology Council earlier this week.

66
00:03:12,880 --> 00:03:15,440
Speaker 2: China declined a US request for the country's heads of

67
00:03:15,440 --> 00:03:17,720
Speaker 2: defense to meet in Singapore, Nathan.

68
00:03:17,800 --> 00:03:21,200
Speaker 1: Two of the world's highest powered CEOs are in China

69
00:03:21,320 --> 00:03:24,840
Speaker 1: this morning. Jamie Diamond is a JP morgan'st China summit

70
00:03:24,919 --> 00:03:27,520
Speaker 1: in Shanghai. He says the bank will be in China

71
00:03:27,560 --> 00:03:31,320
Speaker 1: for both good times and bad. Speaking exclusively to Bloomberg,

72
00:03:31,360 --> 00:03:34,000
Speaker 1: Diamond also says he does not think the US will

73
00:03:34,040 --> 00:03:35,200
Speaker 1: decouple from China.

74
00:03:35,640 --> 00:03:39,080
Speaker 11: Have you asked me over time? Yeah, there'll be less trade.

75
00:03:39,440 --> 00:03:41,720
Speaker 11: You know, it'll take years for these things to take place,

76
00:03:41,880 --> 00:03:45,240
Speaker 11: but it won't be a decoupling and the world will

77
00:03:45,280 --> 00:03:47,240
Speaker 11: go on. I think, like I said, I think far

78
00:03:47,280 --> 00:03:50,240
Speaker 11: more important is what's happening in Ukraine right now.

79
00:03:50,440 --> 00:03:52,840
Speaker 1: And stay with us for more of our exclusive interview

80
00:03:52,880 --> 00:03:55,960
Speaker 1: at JP Morgan's CEO Jamie Dimond that's coming up shortly

81
00:03:56,000 --> 00:03:57,160
Speaker 1: on Bloomberg Daybreak.

82
00:03:57,320 --> 00:04:00,800
Speaker 2: Along with Diamond, Karen Elon Musk is in China as well.

83
00:04:00,840 --> 00:04:03,200
Speaker 2: The Tesla on Twitter CEO is wrapping up the second

84
00:04:03,240 --> 00:04:04,880
Speaker 2: day of his trip to the country where he's been

85
00:04:04,880 --> 00:04:07,360
Speaker 2: meeting with government officials, and we get the details now

86
00:04:07,400 --> 00:04:08,640
Speaker 2: from Bloomberg's John Tucker.

87
00:04:08,720 --> 00:04:11,480
Speaker 8: John, and Musk is just the latest auto big wig

88
00:04:11,560 --> 00:04:14,520
Speaker 8: to say decoupling from China isn't in the cards. In

89
00:04:14,560 --> 00:04:17,160
Speaker 8: a meeting with the Chinese Foreign Minister, Tesla's founders of

90
00:04:17,240 --> 00:04:20,200
Speaker 8: the interests of China and the US are intertwined. A

91
00:04:20,279 --> 00:04:22,880
Speaker 8: government statement cited moss Is saying he's ready to keep

92
00:04:22,880 --> 00:04:26,440
Speaker 8: expanding in that country. The comments run counter to efforts

93
00:04:26,440 --> 00:04:29,760
Speaker 8: by leaders, including President Biden, to help d risk supply

94
00:04:29,920 --> 00:04:33,360
Speaker 8: chains and wean the auto industry off its heavy reliance

95
00:04:33,400 --> 00:04:37,400
Speaker 8: on China for electric vehicle components. Mosk and other auto

96
00:04:37,480 --> 00:04:40,120
Speaker 8: execs apparently didn't get that memo. Just last week, the

97
00:04:40,200 --> 00:04:43,640
Speaker 8: General Motor CEO Mary Barras said she was looking forward

98
00:04:43,680 --> 00:04:46,680
Speaker 8: to working with local partners in China. You know, York,

99
00:04:46,960 --> 00:04:48,840
Speaker 8: John Tucker, Bloomberg Daybreak.

100
00:04:48,720 --> 00:04:51,480
Speaker 1: Right, John, thank you about disappointing economic news out of

101
00:04:51,560 --> 00:04:55,960
Speaker 1: China this morning. Manufacturing activity contracted at a worse page

102
00:04:56,000 --> 00:05:00,240
Speaker 1: than in April, while services expansion eased. Major average in

103
00:05:00,320 --> 00:05:02,560
Speaker 1: Asia all dropped at least one percent.

104
00:05:02,720 --> 00:05:04,599
Speaker 2: Well back here in the US, Karen were just two

105
00:05:04,600 --> 00:05:07,440
Speaker 2: weeks away from the Federal Reserve's next interest rate decision.

106
00:05:07,720 --> 00:05:10,520
Speaker 2: In an interview with The Financial Times, Cleveland FED President

107
00:05:10,600 --> 00:05:14,000
Speaker 2: Loretta Mester said there's no compelling reason to pause interest

108
00:05:14,080 --> 00:05:17,440
Speaker 2: rate increases. At the same time, Richmond FED chief Thomas

109
00:05:17,440 --> 00:05:20,159
Speaker 2: Barkin says he needs signs that demand is cooling to

110
00:05:20,200 --> 00:05:23,640
Speaker 2: be convinced that US inflation will ease. I believe you

111
00:05:23,680 --> 00:05:26,760
Speaker 2: need to bring inflation down by bringing demand down.

112
00:05:26,800 --> 00:05:29,440
Speaker 12: I'm looking to be convinced that demand is in fact

113
00:05:29,440 --> 00:05:31,599
Speaker 12: coming down and that that will then start to bring

114
00:05:32,320 --> 00:05:33,000
Speaker 12: inflation down.

115
00:05:33,279 --> 00:05:36,039
Speaker 2: Richmond FED President Thomas Barkin did not comment on what

116
00:05:36,200 --> 00:05:38,799
Speaker 2: move he's likely to favor at the upcoming policy meeting.

117
00:05:39,040 --> 00:05:40,839
Speaker 1: Well, we turned to the markets now, Nathan, and we

118
00:05:40,880 --> 00:05:45,320
Speaker 1: saw in Video's market valuation cross the one trillion dollar

119
00:05:45,440 --> 00:05:48,359
Speaker 1: threshold that happened yesterday before the stock went on to

120
00:05:48,440 --> 00:05:52,039
Speaker 1: pair gains. No company embodies Wall Street's current obsession with

121
00:05:52,120 --> 00:05:56,159
Speaker 1: artificial intelligence more than in Vidia, but investor Kathy Woods says,

122
00:05:56,240 --> 00:05:59,160
Speaker 1: watch for software providers to be the next winner in

123
00:05:59,240 --> 00:06:00,200
Speaker 1: the AI friends.

124
00:06:00,480 --> 00:06:04,800
Speaker 13: We're onto the next thing. Nvidia is a hardware stock.

125
00:06:04,920 --> 00:06:09,760
Speaker 13: Ensure it has some software, but the history of hardware

126
00:06:09,800 --> 00:06:15,479
Speaker 13: and software is the bigger beneficiary over time is going

127
00:06:15,520 --> 00:06:16,840
Speaker 13: to be software.

128
00:06:16,720 --> 00:06:20,279
Speaker 1: And Kathy Woods flagship Arc Innovation ETF cut it's holding

129
00:06:20,320 --> 00:06:23,359
Speaker 1: it Nvidia on January and has missed out on the

130
00:06:23,400 --> 00:06:24,200
Speaker 1: massive rally.

131
00:06:27,440 --> 00:06:28,800
Speaker 2: Time now to take a look at some of the

132
00:06:28,800 --> 00:06:31,279
Speaker 2: other stories making news in New York and around the world.

133
00:06:31,279 --> 00:06:33,320
Speaker 2: For that, we turned to Bloomberg's Michael Barr.

134
00:06:33,360 --> 00:06:36,400
Speaker 3: Good morning, Michael, Good morning, Nathan. There is an arrest

135
00:06:36,480 --> 00:06:40,680
Speaker 3: in the February first deadly shooting of a New Jersey consulwoman.

136
00:06:41,080 --> 00:06:45,120
Speaker 3: Police in Portsmouth, Virginia arrested twenty six year old Rashid

137
00:06:45,240 --> 00:06:49,080
Speaker 3: Ali Binam with the death of Sayerville council member Eunice

138
00:06:49,160 --> 00:06:52,880
Speaker 3: Juomfor prosecutors say jumfar and bid them we're connected through

139
00:06:52,920 --> 00:06:56,920
Speaker 3: their church. Middlesex County Prosecutor Julanda Secone, the.

140
00:06:56,960 --> 00:06:59,880
Speaker 1: Murder has shaken the community and no arrest.

141
00:07:00,120 --> 00:07:02,160
Speaker 14: We'll bring back the late councilwoman.

142
00:07:02,800 --> 00:07:07,520
Speaker 3: Prosecutor Sacone says surveillance, video, cell phone, DEBTA and electronic

143
00:07:07,640 --> 00:07:11,440
Speaker 3: toll information helped them trace Bynum's route from his home

144
00:07:11,440 --> 00:07:14,960
Speaker 3: in Virginia to New Jersey and back. So far, there

145
00:07:15,000 --> 00:07:18,280
Speaker 3: is no word on a motive North Korea says its

146
00:07:18,320 --> 00:07:21,960
Speaker 3: attempt to put the country's first spy satellite into space

147
00:07:22,080 --> 00:07:25,680
Speaker 3: failed and the rocket crashed into the sea. It sent

148
00:07:25,760 --> 00:07:29,840
Speaker 3: people in Japan and South Korea scrambling for shelter, fearing

149
00:07:29,920 --> 00:07:32,760
Speaker 3: it was a missile. North Korea vowed to conduct a

150
00:07:32,840 --> 00:07:36,800
Speaker 3: second launch. Republican Florida Governor Rond De Santis begins a

151
00:07:36,800 --> 00:07:40,240
Speaker 3: full day of campaigning today with the four stop blitz

152
00:07:40,320 --> 00:07:43,920
Speaker 3: through Iowa. Last night, the Santas kicked off his twenty

153
00:07:44,000 --> 00:07:47,800
Speaker 3: twenty four presidential campaign at a mega church in Des Moines.

154
00:07:48,080 --> 00:07:50,480
Speaker 3: He was asked about the latest debt sealing deal.

155
00:07:50,840 --> 00:07:51,680
Speaker 4: I can tell you this.

156
00:07:51,880 --> 00:07:55,960
Speaker 12: Our nation was careening towards bankruptcy before the debt deal,

157
00:07:56,440 --> 00:07:59,920
Speaker 12: and it will still be careening towards bankruptcy after this

158
00:08:00,280 --> 00:08:00,880
Speaker 12: debt deal.

159
00:08:01,120 --> 00:08:05,040
Speaker 3: DeSantis also fired back at Donald Trump after the former

160
00:08:05,080 --> 00:08:09,080
Speaker 3: president said that then New York Governor Andrew Cuomo handled

161
00:08:09,080 --> 00:08:12,560
Speaker 3: the pandemic better than the Florida governor. The family of

162
00:08:12,600 --> 00:08:15,280
Speaker 3: an eleven year old Mississippi boy who called police to

163
00:08:15,320 --> 00:08:18,400
Speaker 3: help his family and then was shot by an officer

164
00:08:18,520 --> 00:08:22,880
Speaker 3: is now suing the city of Indianola for five million dollars.

165
00:08:23,320 --> 00:08:27,640
Speaker 3: According to the family Darrant Murray called the police in

166
00:08:27,680 --> 00:08:31,120
Speaker 3: regards to a domestic dispute, but was shot by a

167
00:08:31,200 --> 00:08:35,120
Speaker 3: responding officer in his home. Family lawyer Carlos Moore.

168
00:08:35,320 --> 00:08:40,439
Speaker 15: My client, Darren Murray did everything right and nothing wrong,

169
00:08:40,960 --> 00:08:46,160
Speaker 15: and yet he still was shot aunt blank sent Arrange

170
00:08:46,559 --> 00:08:47,240
Speaker 15: in the chest.

171
00:08:47,640 --> 00:08:50,920
Speaker 3: Family lawyer Carlos Moore called it the most egregious case

172
00:08:51,000 --> 00:08:54,560
Speaker 3: of excessive force in his twenty one years of law practice.

173
00:08:54,800 --> 00:08:57,600
Speaker 3: Global News twenty four hours a day, powered by more

174
00:08:57,960 --> 00:09:00,600
Speaker 3: than twenty seven hundred journalist natal us in over one

175
00:09:00,679 --> 00:09:04,959
Speaker 3: hundred and twenty countries. Michael Barr and this is Bloomberg, Nathan.

176
00:09:04,760 --> 00:09:11,600
Speaker 2: Thank you, Michael. Time enough of the Bloomberg Sports Update

177
00:09:11,640 --> 00:09:12,599
Speaker 2: with John Stashauer.

178
00:09:12,679 --> 00:09:15,880
Speaker 5: Thanks Nathan hard delusion. It put up ten runs. Yankees

179
00:09:15,880 --> 00:09:19,720
Speaker 5: won Sunday at the Stadium over San Diego ten to seven.

180
00:09:19,800 --> 00:09:22,400
Speaker 5: They went to Seattle and won Monday ten to four,

181
00:09:22,480 --> 00:09:25,120
Speaker 5: and last night it was ten to two over the

182
00:09:25,160 --> 00:09:28,040
Speaker 5: Mariners three runs of the first inning and Anthony Volpe

183
00:09:28,080 --> 00:09:30,199
Speaker 5: three run homer in the third, Greg Allen Homard and

184
00:09:30,240 --> 00:09:33,439
Speaker 5: the fourth and Aaron Judge in the seventh eighteenth of

185
00:09:33,440 --> 00:09:36,160
Speaker 5: the season. For Judge Isaiah Kiner Fileffa with a big

186
00:09:36,280 --> 00:09:39,240
Speaker 5: night four hits for RBIs Nester Cortez got the winners.

187
00:09:39,240 --> 00:09:42,760
Speaker 5: The Yanks move a season high eleven games over five hundred.

188
00:09:42,800 --> 00:09:43,840
Speaker 3: Tampa Bay lost.

189
00:09:43,880 --> 00:09:46,360
Speaker 5: The Yanks are five games behind Mets.

190
00:09:46,400 --> 00:09:46,880
Speaker 14: Back home.

191
00:09:46,960 --> 00:09:49,520
Speaker 5: They lost their last two in Colorado, giving up twenty

192
00:09:49,559 --> 00:09:52,760
Speaker 5: one runs. At City Field, they gave up two hits,

193
00:09:52,800 --> 00:09:56,000
Speaker 5: a two nothing went over the Phillies with superb pitching

194
00:09:56,040 --> 00:09:59,640
Speaker 5: from Codei Senga and seven innings. Senga allowed one hit,

195
00:10:00,080 --> 00:10:03,000
Speaker 5: no walks, struck out nine. While the Yankees were winning

196
00:10:03,040 --> 00:10:05,560
Speaker 5: in Seattle, so where the Liberty. It was the return

197
00:10:05,600 --> 00:10:07,960
Speaker 5: of Breonna Stewart. She left Seattle as a free agent

198
00:10:08,000 --> 00:10:10,440
Speaker 5: that signed with New York. She scored twenty five points

199
00:10:10,480 --> 00:10:12,480
Speaker 5: against her comer team. Upset at the French Joe for

200
00:10:12,559 --> 00:10:15,520
Speaker 5: the two seed danil medvand had lost five sets to

201
00:10:15,559 --> 00:10:18,840
Speaker 5: a qualifier ranked one hundred and seventy second top seed

202
00:10:18,880 --> 00:10:22,000
Speaker 5: Carlos Alcarez playing his second round match today, as well

203
00:10:22,040 --> 00:10:24,680
Speaker 5: as Novak Djokovic. While the Rangers continue to look for

204
00:10:24,720 --> 00:10:28,400
Speaker 5: a new coach, two teams made hires, Washington naming Toronto

205
00:10:28,440 --> 00:10:33,040
Speaker 5: assistant Spencer carverret Nashville going with Devil's assistant Andrew Burnette.

206
00:10:32,679 --> 00:10:34,400
Speaker 4: Golden State Warriors in a new GM.

207
00:10:34,520 --> 00:10:37,640
Speaker 5: Bob Myers put together teams that won four championships. He's

208
00:10:37,679 --> 00:10:40,840
Speaker 5: resigned after eleven years on the job. The NBA Finals

209
00:10:40,880 --> 00:10:44,400
Speaker 5: beginning tomorrow in Denver, and Miami's Tyler Hero, who's been

210
00:10:44,400 --> 00:10:46,959
Speaker 5: out since mid April. The Broken Hands, says he expects

211
00:10:47,000 --> 00:10:49,840
Speaker 5: to play in the series. Hero average twenty points a

212
00:10:49,840 --> 00:10:53,440
Speaker 5: game in the regular season. John Stashellen Bloodberg sports.

213
00:10:55,120 --> 00:10:58,160
Speaker 6: From coast to coast, from New York to San Francisco,

214
00:10:58,480 --> 00:11:03,120
Speaker 6: Boston to Washington, d nationwide on Sirius Exam, the Bloomberg

215
00:11:03,160 --> 00:11:05,200
Speaker 6: Business Appen Bloomberg dot com.

216
00:11:05,360 --> 00:11:10,640
Speaker 2: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Jamie

217
00:11:10,679 --> 00:11:14,240
Speaker 2: Diamond is in Shanghai today for JP Morgan's China Summit.

218
00:11:14,520 --> 00:11:17,240
Speaker 2: It's the first time the bank's flagship event is being

219
00:11:17,280 --> 00:11:20,880
Speaker 2: held in person since twenty nineteen. It comes as China

220
00:11:20,960 --> 00:11:25,480
Speaker 2: reopens following strict COVID controls, and as tensions appear sky

221
00:11:25,679 --> 00:11:29,440
Speaker 2: high between the US and China. Against that backdrop, we

222
00:11:29,559 --> 00:11:32,880
Speaker 2: sat down for a wide ranging exclusive interview with JP

223
00:11:33,000 --> 00:11:37,080
Speaker 2: Morgan CEO Jamie Dimond. He spoke exclusively with Bloomberg Stephen

224
00:11:37,120 --> 00:11:40,040
Speaker 2: Engel early this morning. Let's listen in to that conversation.

225
00:11:40,200 --> 00:11:43,640
Speaker 12: Now, obviously it's been a few years since you've held

226
00:11:43,640 --> 00:11:46,480
Speaker 12: this in person summit. The last time you and I

227
00:11:46,559 --> 00:11:48,400
Speaker 12: talked was at the last time you held one in

228
00:11:48,440 --> 00:11:50,880
Speaker 12: person in Beijing in twenty nineteen.

229
00:11:50,920 --> 00:11:54,600
Speaker 4: A lot has changed. Why are you willing to go high.

230
00:11:54,480 --> 00:11:58,080
Speaker 12: Profile as a major CEO of a company from America

231
00:11:58,120 --> 00:12:01,000
Speaker 12: when others they want to stay a low profile and

232
00:12:01,080 --> 00:12:03,640
Speaker 12: keep their heads low. How do you assess the US

233
00:12:03,720 --> 00:12:06,280
Speaker 12: Chinel relationship and the impact it's having on business?

234
00:12:06,679 --> 00:12:09,120
Speaker 11: Okay, well, for all thrilled to be back again after

235
00:12:09,160 --> 00:12:12,760
Speaker 11: all this time. And it's important for CEO to visit

236
00:12:12,840 --> 00:12:15,960
Speaker 11: their people and their clients around the world, particularly in

237
00:12:16,040 --> 00:12:18,520
Speaker 11: when you think times a little more complicated, et cetera.

238
00:12:18,880 --> 00:12:21,520
Speaker 11: But I think it's important for the viewership to understand

239
00:12:21,800 --> 00:12:24,400
Speaker 11: there are like three thousand investors here from around the world.

240
00:12:24,600 --> 00:12:28,240
Speaker 11: There are hundreds of companies of Chinese and non Chinese

241
00:12:28,320 --> 00:12:31,760
Speaker 11: companies learning about the world. We do research on five

242
00:12:31,800 --> 00:12:35,199
Speaker 11: hundred companies. That research circulates the world and hopefully business

243
00:12:35,280 --> 00:12:37,320
Speaker 11: could be a you know, could be for good to

244
00:12:37,400 --> 00:12:40,240
Speaker 11: help countries lift up. I have enormous respect for the

245
00:12:40,320 --> 00:12:44,320
Speaker 11: Chinese people. The Martization's countries has been extraordinary, and yes

246
00:12:44,320 --> 00:12:46,240
Speaker 11: there are some very complex issues that have to be

247
00:12:46,320 --> 00:12:46,719
Speaker 11: dealt with.

248
00:12:47,120 --> 00:12:50,320
Speaker 12: At what point does Jamie Diamond have to become the diplomat? Look,

249
00:12:50,480 --> 00:12:53,480
Speaker 12: Joe Biden has not spoken to siegen Ping since November,

250
00:12:53,640 --> 00:12:57,840
Speaker 12: the Bali meeting. Military to military discussions are being rebuffed

251
00:12:57,840 --> 00:13:02,120
Speaker 12: and not even happening. Business to business is tenuous at best.

252
00:13:02,160 --> 00:13:04,920
Speaker 12: What role can you and should you play while you're there?

253
00:13:05,480 --> 00:13:07,280
Speaker 14: Yeah? No, I think I look at a little bit differently.

254
00:13:07,400 --> 00:13:10,280
Speaker 11: So there are conversations took place recently that you know

255
00:13:10,360 --> 00:13:11,880
Speaker 11: have been in the press, which I think you're great.

256
00:13:11,920 --> 00:13:14,120
Speaker 11: I mean it's hard to resolve issues when you have

257
00:13:14,160 --> 00:13:16,480
Speaker 11: the echo chain in your own brain telling yourself what

258
00:13:16,480 --> 00:13:18,640
Speaker 11: you already think. And I think business could be a

259
00:13:18,640 --> 00:13:21,480
Speaker 11: force for good. But I don't represent the government. But

260
00:13:21,559 --> 00:13:23,880
Speaker 11: you know, everyone knows I'm an American patriot, so I'm

261
00:13:23,920 --> 00:13:26,600
Speaker 11: sitting here in China. But I'm a red blooded, full

262
00:13:26,640 --> 00:13:31,560
Speaker 11: throated free enterprise capitalist. And so the governments have to talk.

263
00:13:31,800 --> 00:13:35,560
Speaker 11: Every government has national security in mind, and how do

264
00:13:35,600 --> 00:13:39,000
Speaker 11: they get better announced security? And I should point out

265
00:13:39,080 --> 00:13:42,640
Speaker 11: is that this globe of ours has benefited from trade.

266
00:13:42,679 --> 00:13:44,880
Speaker 11: You know, it's benefited from all these things taking place,

267
00:13:44,920 --> 00:13:48,880
Speaker 11: and so it's lifted and even taking this country.

268
00:13:48,640 --> 00:13:49,959
Speaker 14: You know, they have benefited.

269
00:13:50,040 --> 00:13:53,120
Speaker 11: I know this criticism about the American global system, but

270
00:13:53,160 --> 00:13:56,840
Speaker 11: that American global system has done an extraordinary It's not American.

271
00:13:57,120 --> 00:13:58,720
Speaker 11: You know, if you go to America, a lot of

272
00:13:58,720 --> 00:14:01,920
Speaker 11: Americans complain about NATO and WTO and WHO and the

273
00:14:02,000 --> 00:14:04,760
Speaker 11: United Nations, but it's lifted up. Look what it's done

274
00:14:04,800 --> 00:14:07,400
Speaker 11: for China. I think that the global system has been

275
00:14:07,679 --> 00:14:10,600
Speaker 11: fabulous for China. And they may have complaints about it,

276
00:14:10,640 --> 00:14:13,960
Speaker 11: just like the restros have complaints. But I'm thrilled to

277
00:14:13,960 --> 00:14:16,520
Speaker 11: be here again. You know, you have to go see

278
00:14:16,559 --> 00:14:18,760
Speaker 11: your people and thank your people what they've done, particularly

279
00:14:18,760 --> 00:14:21,280
Speaker 11: through this terrible time of COVID, which I think has

280
00:14:21,280 --> 00:14:22,680
Speaker 11: done a lot of damage to the world in a

281
00:14:22,720 --> 00:14:25,320
Speaker 11: lot of different ways. So getting out is the right

282
00:14:25,360 --> 00:14:25,720
Speaker 11: thing to do.

283
00:14:26,520 --> 00:14:28,000
Speaker 4: Yeah, what is your calculus?

284
00:14:28,040 --> 00:14:30,680
Speaker 12: Has it changed over these four years on how you

285
00:14:30,720 --> 00:14:34,640
Speaker 12: want to expand in China? Obviously you're fully licensed up now.

286
00:14:34,960 --> 00:14:38,040
Speaker 12: You are very productive. During the pandemic, you got full

287
00:14:38,400 --> 00:14:42,960
Speaker 12: jvs and full ventures in securities and the mutual funds

288
00:14:43,000 --> 00:14:47,920
Speaker 12: and futures. You're pretty much well established on the mainland,

289
00:14:47,920 --> 00:14:49,400
Speaker 12: which was your goal, but.

290
00:14:49,440 --> 00:14:50,400
Speaker 4: The things have changed.

291
00:14:50,480 --> 00:14:53,680
Speaker 12: China is not necessarily the be all end all anymore.

292
00:14:53,760 --> 00:14:58,920
Speaker 12: We've had simultaneous crackdowns domestically on the platform economy, on property,

293
00:14:59,160 --> 00:15:02,280
Speaker 12: on the online game, on online education, not to mention

294
00:15:02,560 --> 00:15:05,720
Speaker 12: COVID zero, you have a crackdown on consultancies.

295
00:15:06,040 --> 00:15:07,320
Speaker 4: There's lots of pressure.

296
00:15:07,360 --> 00:15:11,080
Speaker 12: I mean, are you recalculating your growth projection and the

297
00:15:11,120 --> 00:15:12,960
Speaker 12: capability of that growth in China?

298
00:15:14,000 --> 00:15:16,200
Speaker 11: You went through a long list there, which I may

299
00:15:16,240 --> 00:15:18,240
Speaker 11: not wint agree with all of it, but I think

300
00:15:18,920 --> 00:15:21,360
Speaker 11: when we do business the country, and we do business

301
00:15:21,360 --> 00:15:23,320
Speaker 11: one hundred countries around the world, we are there for

302
00:15:23,400 --> 00:15:26,280
Speaker 11: the systems of the country, and we're there hopefully through

303
00:15:26,280 --> 00:15:28,280
Speaker 11: good times and bad times. We tend not to leave

304
00:15:28,320 --> 00:15:31,240
Speaker 11: other than there's war, civil war, and so we're not

305
00:15:31,320 --> 00:15:33,720
Speaker 11: predicting any of that here. You know, obviously it's become

306
00:15:33,800 --> 00:15:37,040
Speaker 11: a far more complex situation. You know, for some for

307
00:15:37,080 --> 00:15:39,960
Speaker 11: good reason, some not for good reason. And you know

308
00:15:40,040 --> 00:15:42,200
Speaker 11: there's risk. There's always going to be risk, and I

309
00:15:42,200 --> 00:15:45,680
Speaker 11: think you'll see companies react to different things for different reasons.

310
00:15:45,720 --> 00:15:46,920
Speaker 14: Some of their own resiliency.

311
00:15:47,320 --> 00:15:50,880
Speaker 11: Some is obviously national security, you know, will trump all

312
00:15:50,960 --> 00:15:53,280
Speaker 11: other things. So you know, our government tells us do

313
00:15:53,320 --> 00:15:54,760
Speaker 11: AB and C. We're gonna do a B and C

314
00:15:55,600 --> 00:15:58,800
Speaker 11: and support it. And I think there's there's a risk

315
00:15:58,880 --> 00:16:02,320
Speaker 11: in China itself that you know, I've met with several

316
00:16:02,360 --> 00:16:05,760
Speaker 11: people here. If you have more uncertainty somewhere caused by

317
00:16:05,760 --> 00:16:08,680
Speaker 11: the Chinese government, well of course it's gonna not just

318
00:16:08,800 --> 00:16:12,440
Speaker 11: change foreign direct investment, which has gone up a little surprisingly,

319
00:16:12,720 --> 00:16:14,800
Speaker 11: and I don't think they should assume that's continue, but

320
00:16:14,800 --> 00:16:17,040
Speaker 11: it's going to change the people here, their own confidence,

321
00:16:17,080 --> 00:16:19,560
Speaker 11: their own ability to invest and do things, and so,

322
00:16:21,040 --> 00:16:24,720
Speaker 11: like I said, if people have deep conversations, respect each other,

323
00:16:25,320 --> 00:16:28,360
Speaker 11: engage properly. I think the American government said all the

324
00:16:28,440 --> 00:16:31,000
Speaker 11: right things recently, which isa. You heard it from Treasury

325
00:16:31,040 --> 00:16:33,680
Speaker 11: Secretary Yellen, You've heard from President Biden, You've heard it

326
00:16:33,680 --> 00:16:36,320
Speaker 11: from National Security Advisor Jake Sullivan.

327
00:16:36,000 --> 00:16:37,840
Speaker 14: You heard it from Secretary as day Tony.

328
00:16:37,640 --> 00:16:41,400
Speaker 11: Blincoln, that this is not decoupling, this is de risking.

329
00:16:41,440 --> 00:16:42,680
Speaker 14: The world's changed a little bit.

330
00:16:43,080 --> 00:16:45,640
Speaker 11: Obviously, they are concerned about the war in Ukraine.

331
00:16:45,920 --> 00:16:46,600
Speaker 14: They should be.

332
00:16:46,840 --> 00:16:48,280
Speaker 11: I think that is probably one of the most serious

333
00:16:48,280 --> 00:16:50,640
Speaker 11: things affecting the future of the globe, and I mean

334
00:16:50,680 --> 00:16:52,720
Speaker 11: the future of glow for the next fifty years. And

335
00:16:52,760 --> 00:16:55,080
Speaker 11: I think they're doing the right things. I'm completely supportive

336
00:16:55,120 --> 00:16:57,360
Speaker 11: of that. And so you know, China's obviously going to

337
00:16:57,400 --> 00:16:59,720
Speaker 11: do what they think is good for itself. And business

338
00:16:59,760 --> 00:17:03,720
Speaker 11: might be a positive attribute, but but national security will

339
00:17:03,760 --> 00:17:04,840
Speaker 11: trump all our issues.

340
00:17:05,760 --> 00:17:05,920
Speaker 14: Now.

341
00:17:05,960 --> 00:17:08,000
Speaker 12: I was just at G seven where we heard a

342
00:17:08,000 --> 00:17:11,640
Speaker 12: lot of that rhetoric where they're de risking, not decoupling.

343
00:17:12,280 --> 00:17:15,320
Speaker 12: But again, you know, the Chinese say it's one and

344
00:17:15,359 --> 00:17:18,359
Speaker 12: the same. It's it's America trying to limit China's rise,

345
00:17:19,000 --> 00:17:21,040
Speaker 12: and you've seen that bifurcation.

346
00:17:21,160 --> 00:17:22,159
Speaker 4: There's more jargon.

347
00:17:22,440 --> 00:17:25,520
Speaker 12: Not to over emphasize all this jargon that's going out there,

348
00:17:25,520 --> 00:17:29,480
Speaker 12: but again, do you see d risking being different from

349
00:17:29,680 --> 00:17:31,880
Speaker 12: decoupling totally?

350
00:17:32,280 --> 00:17:33,919
Speaker 11: I mean, look, you know, Stevie, I look at the

351
00:17:33,920 --> 00:17:37,960
Speaker 11: fact trade actually went up and last year, and and

352
00:17:38,040 --> 00:17:40,320
Speaker 11: I think D risky means national security.

353
00:17:40,800 --> 00:17:43,240
Speaker 14: Everyone's gonna do. Every country's gonna turn out their own way.

354
00:17:43,520 --> 00:17:43,679
Speaker 14: You know.

355
00:17:43,720 --> 00:17:46,520
Speaker 11: Now we're talking about very advanced chips, but kind of reasonable,

356
00:17:46,560 --> 00:17:49,000
Speaker 11: you know, not to help non allies have things that

357
00:17:49,080 --> 00:17:51,800
Speaker 11: can help their military. You know, obviously there are you know,

358
00:17:51,920 --> 00:17:54,399
Speaker 11: rare earths and things like that, so America's going to

359
00:17:54,440 --> 00:17:57,320
Speaker 11: look at that. They were very clear, they tumbautic. They

360
00:17:57,400 --> 00:18:00,240
Speaker 11: used the word, you know, a small garden with high

361
00:18:00,320 --> 00:18:03,359
Speaker 11: walls as opposed to everything, and we should hope that

362
00:18:03,440 --> 00:18:05,160
Speaker 11: let's not make it everything. I think the business Comunity

363
00:18:05,160 --> 00:18:07,320
Speaker 11: is trying to help advise them, and that then there's

364
00:18:07,320 --> 00:18:10,120
Speaker 11: going to be companies doing things just for their own resiliency.

365
00:18:10,480 --> 00:18:12,959
Speaker 11: That's a perfectly reasonable thing to do too. And then

366
00:18:13,000 --> 00:18:15,920
Speaker 11: there's the big one, which is also this constant negotiate

367
00:18:15,920 --> 00:18:19,440
Speaker 11: about trade on fair trade, free access, fair access that's

368
00:18:19,440 --> 00:18:22,360
Speaker 11: been going on with for my whole life about every country,

369
00:18:22,600 --> 00:18:25,520
Speaker 11: and the countries should learn about when they're legitimate concerns

370
00:18:25,880 --> 00:18:28,199
Speaker 11: and when they're not legitimate concerns, and like listen to

371
00:18:28,280 --> 00:18:32,280
Speaker 11: each other deeply and adjust accordingly. So if you ask me,

372
00:18:32,520 --> 00:18:35,880
Speaker 11: over time, yeah, there'll be less trade. You know, it'll

373
00:18:35,920 --> 00:18:38,000
Speaker 11: take years for these things to take place, but it

374
00:18:38,040 --> 00:18:41,520
Speaker 11: won't be a decoupling and the world will go on.

375
00:18:41,920 --> 00:18:43,880
Speaker 11: I think, like I said, I think far more important

376
00:18:43,920 --> 00:18:48,040
Speaker 11: is what's happening in Ukraine right now, and so hopefully

377
00:18:48,040 --> 00:18:50,199
Speaker 11: this will sort out, and it will never sort out

378
00:18:50,200 --> 00:18:52,560
Speaker 11: if people don't talk. So I urge people you have

379
00:18:52,640 --> 00:18:55,040
Speaker 11: some real deep conversation. You get to know each other

380
00:18:55,040 --> 00:18:57,400
Speaker 11: a little bit, a little bit each other's concerns about

381
00:18:57,400 --> 00:19:00,199
Speaker 11: some of these issues, and things would be better we

382
00:19:00,240 --> 00:19:00,520
Speaker 11: had that.

383
00:19:02,080 --> 00:19:04,520
Speaker 12: Well, do you have these conversations as well, because a

384
00:19:04,560 --> 00:19:08,159
Speaker 12: lot of people do try to extrapolate what's happening in

385
00:19:08,240 --> 00:19:12,480
Speaker 12: Ukraine with the potentiality in East Asia with Taiwan. We

386
00:19:12,560 --> 00:19:17,520
Speaker 12: know Warren Buffett has divested completely its investment Berkshire Hathaway's

387
00:19:17,520 --> 00:19:22,320
Speaker 12: investment in Taiwan's semiconductor. There's nervousness and that creates hesitancy

388
00:19:22,640 --> 00:19:26,639
Speaker 12: for investment and fun flows which are down. Obviously trade

389
00:19:26,640 --> 00:19:29,560
Speaker 12: deals are down. Do you see the direct correlation of

390
00:19:29,600 --> 00:19:33,600
Speaker 12: the risks that have risen in East Asia because of

391
00:19:33,640 --> 00:19:37,760
Speaker 12: Taiwan because of what's happening in Ukraine exacerbating that.

392
00:19:38,960 --> 00:19:42,159
Speaker 11: Yeah, I think I'm not an expert on Taiwan, and

393
00:19:42,240 --> 00:19:45,160
Speaker 11: I would defer to Bob Gates and Henry Kissinger about

394
00:19:45,160 --> 00:19:48,040
Speaker 11: how to de escalate that situation and obviously as to

395
00:19:48,119 --> 00:19:51,480
Speaker 11: the tension things like that. But remember this is a

396
00:19:51,520 --> 00:19:54,400
Speaker 11: world issue, but all the country around the world would

397
00:19:54,400 --> 00:19:56,520
Speaker 11: be concerned about Taiwan.

398
00:19:56,119 --> 00:19:56,920
Speaker 14: And the outcome of that.

399
00:19:57,119 --> 00:20:00,000
Speaker 11: I think when Ukraine showed people is that the world

400
00:20:00,160 --> 00:20:02,920
Speaker 11: wasn't safe that you know, oil and gas supply chains

401
00:20:02,920 --> 00:20:05,520
Speaker 11: aren't safe, food, the supply lines aren't safe. You know,

402
00:20:05,560 --> 00:20:08,360
Speaker 11: everyone's starting to relook at what is national security?

403
00:20:08,440 --> 00:20:09,680
Speaker 14: Had Germany important?

404
00:20:09,720 --> 00:20:11,879
Speaker 11: I think it was half of their natural gas from Russia,

405
00:20:11,960 --> 00:20:14,520
Speaker 11: So I think that did cost people. Look at what

406
00:20:14,560 --> 00:20:17,240
Speaker 11: are their alliances, what are their trade what are the things?

407
00:20:17,440 --> 00:20:19,679
Speaker 11: And obviously it's causing a lot of confusion and a

408
00:20:19,680 --> 00:20:23,119
Speaker 11: lot of issues. But hopefully we'll make a lot of

409
00:20:23,160 --> 00:20:25,800
Speaker 11: progress on it. Like I said, that comes with engagement,

410
00:20:26,200 --> 00:20:27,879
Speaker 11: and that comes with you know, the don't want the

411
00:20:27,880 --> 00:20:30,840
Speaker 11: American government and other folks, you know, city down.

412
00:20:31,600 --> 00:20:31,760
Speaker 4: Yeah.

413
00:20:31,760 --> 00:20:33,720
Speaker 12: I don't want to keep on harping on the negative

414
00:20:33,720 --> 00:20:35,960
Speaker 12: side of it, but is there any scenario, the worst

415
00:20:36,000 --> 00:20:40,240
Speaker 12: case scenario that would make your investment, and look, it's

416
00:20:40,240 --> 00:20:45,000
Speaker 12: a sizeable investment in China, make it untenable for you?

417
00:20:43,600 --> 00:20:47,000
Speaker 11: You know, Steve, you're going here, You're going to repeat

418
00:20:47,040 --> 00:20:50,360
Speaker 11: yourself over and over. We're here, We're going to support

419
00:20:50,400 --> 00:20:53,520
Speaker 11: the Chinese people, of the Chinese governments. We do business

420
00:20:53,520 --> 00:20:57,000
Speaker 11: with a thousand companies here. Half are multinationals coming in

421
00:20:57,359 --> 00:21:01,480
Speaker 11: half are local companies. You know, we always have managed

422
00:21:01,480 --> 00:21:04,320
Speaker 11: our risk that we can handle almost whatever happens around

423
00:21:04,400 --> 00:21:07,400
Speaker 11: the world. And I am an American patriot. I will

424
00:21:07,440 --> 00:21:09,159
Speaker 11: do what my government tells me. I'm going to salute

425
00:21:09,160 --> 00:21:11,680
Speaker 11: like anybody else. But I can tell them what I think,

426
00:21:11,880 --> 00:21:14,280
Speaker 11: and you could imagine that I've been very clear when

427
00:21:14,280 --> 00:21:16,160
Speaker 11: I sit down with them what I think and what

428
00:21:16,200 --> 00:21:17,760
Speaker 11: we think matters. And like I said, a lot of

429
00:21:17,760 --> 00:21:19,720
Speaker 11: the business community think could be very helpful in that

430
00:21:20,000 --> 00:21:23,200
Speaker 11: this is not a simple matter, and sometimes we oversimplify

431
00:21:23,280 --> 00:21:25,840
Speaker 11: things in a way which actually damage, you know, the

432
00:21:25,960 --> 00:21:26,840
Speaker 11: ultimate outcomes.

433
00:21:27,640 --> 00:21:30,280
Speaker 12: Will you have an opportunity, Can you reveal whether you're

434
00:21:30,280 --> 00:21:32,920
Speaker 12: going to meet with Lee Cheung, the premier, or any

435
00:21:32,960 --> 00:21:35,760
Speaker 12: of the other senior Chinese leaders, and what would you

436
00:21:35,840 --> 00:21:38,600
Speaker 12: like to get from them.

437
00:21:38,240 --> 00:21:41,560
Speaker 11: I'm me with a very limited amount of Chinese leaders.

438
00:21:41,560 --> 00:21:44,159
Speaker 11: I met with one, but I'll keep that conversation private.

439
00:21:44,200 --> 00:21:47,520
Speaker 11: And like I said, you know, I'm here for our people.

440
00:21:47,600 --> 00:21:50,040
Speaker 11: I'm here for these clients. I think it's great that

441
00:21:50,119 --> 00:21:52,440
Speaker 11: this is taking place. I think humanity is better off

442
00:21:52,520 --> 00:21:55,600
Speaker 11: this type of thing, and obviously national security will reign

443
00:21:55,760 --> 00:21:59,120
Speaker 11: supreme and so. But but you don't stop doing one

444
00:21:59,160 --> 00:22:01,800
Speaker 11: because of the other. And so, like I said, I'm

445
00:22:01,800 --> 00:22:04,560
Speaker 11: thrilled to be here. And it's amazing, which what I've

446
00:22:04,560 --> 00:22:07,399
Speaker 11: seen take place in China the last twenty five years

447
00:22:07,640 --> 00:22:10,639
Speaker 11: partially because of the global system, and I think they

448
00:22:10,880 --> 00:22:13,240
Speaker 11: should be clear about that. And you know, they have

449
00:22:13,600 --> 00:22:16,440
Speaker 11: their own problems here. You know, twenty percent of employment

450
00:22:16,480 --> 00:22:18,199
Speaker 11: on youth. I mean, that's a scary number. And so

451
00:22:18,520 --> 00:22:21,159
Speaker 11: you know, growth, they need growth too, and confidence is

452
00:22:21,280 --> 00:22:22,359
Speaker 11: very important for growth.

453
00:22:23,119 --> 00:22:25,439
Speaker 12: When do you see cross border deal making picking up?

454
00:22:25,480 --> 00:22:28,119
Speaker 12: It's been quite a nator on that front.

455
00:22:31,400 --> 00:22:34,840
Speaker 11: Course, border between China and other people are just globally.

456
00:22:34,680 --> 00:22:38,880
Speaker 12: Right, Well, let's let's talk about China, say China US

457
00:22:39,000 --> 00:22:41,199
Speaker 12: or outbound from China and the like.

458
00:22:45,320 --> 00:22:47,600
Speaker 11: Outbound you know, I don't know the answer to that.

459
00:22:47,680 --> 00:22:50,440
Speaker 11: I think there are always a lot of more conversations,

460
00:22:50,480 --> 00:22:52,800
Speaker 11: you think, and obviously it's been damped a little bit.

461
00:22:53,000 --> 00:22:55,320
Speaker 11: I think America is still open for business. You know,

462
00:22:55,440 --> 00:22:57,119
Speaker 11: Chinese comans is gonna be a little concerned. You know,

463
00:22:57,160 --> 00:22:59,439
Speaker 11: we've we've had siphias for a long time now. But

464
00:22:59,480 --> 00:23:02,199
Speaker 11: I would say we're still joint over for business. And

465
00:23:02,240 --> 00:23:04,200
Speaker 11: if you're in a Chinese company you want to do something,

466
00:23:04,200 --> 00:23:07,200
Speaker 11: you know, look at it, don't back off just because

467
00:23:07,200 --> 00:23:09,439
Speaker 11: you're afraid of something, and you get some advice and

468
00:23:09,480 --> 00:23:11,160
Speaker 11: help and how you go about that the right way.

469
00:23:11,160 --> 00:23:13,960
Speaker 11: But America is still open for business, and I think

470
00:23:13,960 --> 00:23:18,960
Speaker 11: you've heard that from Secretary Yellen, Secretary Blinking and all

471
00:23:19,000 --> 00:23:21,760
Speaker 11: those we still believe in, you know, open and Philly

472
00:23:21,760 --> 00:23:22,680
Speaker 11: free markets.

473
00:23:23,119 --> 00:23:25,840
Speaker 12: Let's pivot to what's happening in the United States. Obviously,

474
00:23:25,880 --> 00:23:29,360
Speaker 12: the debt ceiling impasse is coming to a head, perhaps

475
00:23:29,440 --> 00:23:30,840
Speaker 12: with a House vote coming up.

476
00:23:31,160 --> 00:23:32,560
Speaker 4: Can you kind of tell me.

477
00:23:32,480 --> 00:23:35,000
Speaker 12: What your war room, your debt ceiling warroom is advising

478
00:23:35,040 --> 00:23:39,159
Speaker 12: you on the unintended consequences a of a default or

479
00:23:39,320 --> 00:23:44,440
Speaker 12: even b the ramifications even if a deal is done

480
00:23:44,600 --> 00:23:48,080
Speaker 12: in Congress, on whether that could mean you know, higher rates,

481
00:23:48,119 --> 00:23:50,960
Speaker 12: as well as we head towards a possible mild recession.

482
00:23:51,800 --> 00:23:58,400
Speaker 11: So I, first of all, I think Kevin McCarthy, King, Jefferies,

483
00:23:58,880 --> 00:24:03,920
Speaker 11: the President, Chuck Schumer, mission mcconna all did a great job.

484
00:24:04,040 --> 00:24:07,280
Speaker 11: And I think it's great. This is this is democracy

485
00:24:07,359 --> 00:24:09,480
Speaker 11: and bipartisanship, and I think they did the right thing,

486
00:24:09,560 --> 00:24:11,240
Speaker 11: and I think it's going to happen. If I thought

487
00:24:11,240 --> 00:24:12,959
Speaker 11: it wasn't going to happen, I probably wouldn't be here

488
00:24:13,040 --> 00:24:15,639
Speaker 11: right now. Uh So, And obviously it's got to get

489
00:24:15,680 --> 00:24:18,160
Speaker 11: through a couple of votes in Congress, and our people

490
00:24:18,280 --> 00:24:21,439
Speaker 11: pretty comfortable will happen. You know, I've been We've been

491
00:24:21,480 --> 00:24:24,359
Speaker 11: public for years. If if you actually an actual default,

492
00:24:24,440 --> 00:24:27,960
Speaker 11: it's not good. You know, America, the financial system America

493
00:24:28,040 --> 00:24:30,640
Speaker 11: and the economic economy of America. It's still the most

494
00:24:30,640 --> 00:24:32,680
Speaker 11: prosperous and largest economy of the world I've ever seen,

495
00:24:32,720 --> 00:24:35,600
Speaker 11: the most innovative, the most growing, and the rest of

496
00:24:35,640 --> 00:24:37,600
Speaker 11: the world relies on it, you know, So I think

497
00:24:37,600 --> 00:24:41,320
Speaker 11: we shouldn't create any instability there. So I wish one

498
00:24:41,359 --> 00:24:43,080
Speaker 11: day we'd get rid of the whole debt ceiling thing.

499
00:24:43,119 --> 00:24:45,840
Speaker 11: But I understand, when you know, it's a democracy, people

500
00:24:45,840 --> 00:24:47,960
Speaker 11: have different opinions about what we should be doing, and

501
00:24:48,119 --> 00:24:50,760
Speaker 11: it's just one tool for one party to you know,

502
00:24:50,800 --> 00:24:51,399
Speaker 11: get the other.

503
00:24:51,280 --> 00:24:52,040
Speaker 14: Part of the table.

504
00:24:52,119 --> 00:24:55,680
Speaker 11: So I'm quite optimistic there, and I really do applaud

505
00:24:55,720 --> 00:24:57,480
Speaker 11: the fact that they all sat down and spoke got

506
00:24:57,480 --> 00:24:58,280
Speaker 11: something done.

507
00:24:58,480 --> 00:24:59,640
Speaker 4: What's your read on inflation?

508
00:24:59,720 --> 00:25:02,240
Speaker 12: On when whether the Fed will go beyond the pause

509
00:25:02,359 --> 00:25:03,200
Speaker 12: and hike again.

510
00:25:04,560 --> 00:25:08,199
Speaker 11: You know, my simple view is that their right to

511
00:25:08,240 --> 00:25:10,399
Speaker 11: pause at this point has been a big increase, you know,

512
00:25:10,480 --> 00:25:14,040
Speaker 11: five hundred basis points to so take a pause. But

513
00:25:14,119 --> 00:25:16,520
Speaker 11: I do think it's possible they're going to raise a

514
00:25:16,520 --> 00:25:18,920
Speaker 11: little bit more. Then the inflation is kind of stickier.

515
00:25:18,960 --> 00:25:21,120
Speaker 11: I think people are coming around to that, which means

516
00:25:21,200 --> 00:25:22,520
Speaker 11: race may have to go up a little bit more.

517
00:25:22,720 --> 00:25:25,080
Speaker 11: People should be a little prepared for that. There's just

518
00:25:25,480 --> 00:25:27,760
Speaker 11: as a matter of manage your own business, be a

519
00:25:27,800 --> 00:25:30,480
Speaker 11: little prepared for that, whether you're a financial company or

520
00:25:30,520 --> 00:25:33,200
Speaker 11: a real estate company, et cetera. I think the other

521
00:25:33,200 --> 00:25:35,040
Speaker 11: thing I'd be a little prepared for is the volatility

522
00:25:35,040 --> 00:25:37,840
Speaker 11: that might very well be created by quantitative tightening. We've

523
00:25:37,880 --> 00:25:40,600
Speaker 11: never really had quantitative easying, which we've had now for

524
00:25:41,040 --> 00:25:43,320
Speaker 11: the better part of fifteen years, and now you're going

525
00:25:43,320 --> 00:25:45,560
Speaker 11: to see quantitative tightening, and I think the effects may

526
00:25:45,600 --> 00:25:48,760
Speaker 11: be a little harsher than people expect, but hopefully we'll

527
00:25:48,800 --> 00:25:51,080
Speaker 11: get through all of that and be okay.

528
00:25:51,920 --> 00:25:54,639
Speaker 12: How would you assess the banking crisis whether we're still

529
00:25:54,720 --> 00:25:58,520
Speaker 12: facing a banking crisis? Obviously you come from a very

530
00:25:58,560 --> 00:26:01,760
Speaker 12: interesting purche having taken over a first Republic, do you

531
00:26:01,800 --> 00:26:04,000
Speaker 12: see more pain coming down to what needs to be

532
00:26:04,040 --> 00:26:07,159
Speaker 12: done on the regulatory front to prevent this from happening again.

533
00:26:07,840 --> 00:26:08,119
Speaker 14: Yeah.

534
00:26:08,160 --> 00:26:10,920
Speaker 11: So the first thing is it's nothing like oh wait,

535
00:26:11,320 --> 00:26:12,239
Speaker 11: there's nothing like that.

536
00:26:12,359 --> 00:26:13,320
Speaker 14: Leverage in the system.

537
00:26:13,400 --> 00:26:16,800
Speaker 11: The private the private companies are in actually very good shape.

538
00:26:17,000 --> 00:26:19,520
Speaker 11: The banking system is in pretty good shape. You've seen

539
00:26:19,600 --> 00:26:23,160
Speaker 11: regional banks just report very good numbers. The deposits didn't

540
00:26:23,200 --> 00:26:25,800
Speaker 11: run out like people are talking about. This is nothing

541
00:26:25,920 --> 00:26:27,719
Speaker 11: like that. There are a couple of banks that are

542
00:26:27,720 --> 00:26:30,240
Speaker 11: offside this. That off side is an industraight exposure and

543
00:26:31,160 --> 00:26:33,720
Speaker 11: things like that, First Republic being one of them. We

544
00:26:33,720 --> 00:26:35,479
Speaker 11: were asked by our government to step in and we

545
00:26:35,520 --> 00:26:38,200
Speaker 11: did and we were able to handle it. I'm extremely proud.

546
00:26:38,520 --> 00:26:40,720
Speaker 11: I hope Jen Peepzak and Marion Lake will look at

547
00:26:40,720 --> 00:26:42,600
Speaker 11: me now like what you all have done. Get an

548
00:26:42,600 --> 00:26:45,720
Speaker 11: airplane Sunday night to fly out talk to people. You know,

549
00:26:45,760 --> 00:26:48,440
Speaker 11: obviously it's a lot of work and you know, hard

550
00:26:48,480 --> 00:26:51,320
Speaker 11: for people, but we're trying to show real humanity, you know,

551
00:26:51,480 --> 00:26:54,480
Speaker 11: using redeployment of anyone who lose their job is trying

552
00:26:54,480 --> 00:26:57,560
Speaker 11: to find other jobs. At JP Morgan or elsewhere we

553
00:26:57,640 --> 00:26:59,600
Speaker 11: had the cability to handle it. I think it's also

554
00:26:59,600 --> 00:27:02,919
Speaker 11: a side by the way, because we totally support community banks,

555
00:27:03,119 --> 00:27:06,520
Speaker 11: we totally support regional banks. I would be carefully taking

556
00:27:06,560 --> 00:27:09,280
Speaker 11: what regulations have to be done as opposed to supervision,

557
00:27:10,080 --> 00:27:12,400
Speaker 11: and we want them to do well. So I want

558
00:27:12,400 --> 00:27:14,720
Speaker 11: to be very quite careful people go about that. So

559
00:27:14,880 --> 00:27:17,439
Speaker 11: these this banking system, you know, we acknowledge their community

560
00:27:17,440 --> 00:27:19,600
Speaker 11: banks do a lot of things we can't do. And

561
00:27:19,680 --> 00:27:22,000
Speaker 11: so I think there are a critical part of the system.

562
00:27:22,480 --> 00:27:24,640
Speaker 11: But so is a JP Morgan. You know, we bank

563
00:27:24,760 --> 00:27:27,720
Speaker 11: small companies, large companies. We bank the IMF, the World Bank,

564
00:27:27,960 --> 00:27:31,080
Speaker 11: We bank cities, stools, states, hospitals, We bank companies in

565
00:27:31,200 --> 00:27:33,840
Speaker 11: thirty countries, you know, And so there's a reason that

566
00:27:33,880 --> 00:27:37,399
Speaker 11: you have both large and small and all different types.

567
00:27:37,440 --> 00:27:40,160
Speaker 11: And so I think we're over this part of it

568
00:27:40,320 --> 00:27:42,879
Speaker 11: for the most part. There may be something else, but

569
00:27:43,160 --> 00:27:46,879
Speaker 11: rising rates, if they get high enough, it careers uglyhead again.

570
00:27:47,200 --> 00:27:48,760
Speaker 11: And so I think, like I said, it's not just banks.

571
00:27:48,760 --> 00:27:51,480
Speaker 11: People should be prepared for slightly higher rates than they've

572
00:27:51,480 --> 00:27:53,639
Speaker 11: been used to in the past fifteen years.

573
00:27:54,320 --> 00:27:57,960
Speaker 12: Are there further redundancies necessary associated with First Republic. We

574
00:27:58,040 --> 00:27:59,560
Speaker 12: knew we were going to get a plan from you

575
00:27:59,560 --> 00:28:01,280
Speaker 12: guys by the end of the month. It's the end

576
00:28:01,280 --> 00:28:03,880
Speaker 12: of the month. We know, maybe a thousand jobs cut,

577
00:28:04,000 --> 00:28:05,560
Speaker 12: but there's seven thousand employees.

578
00:28:05,600 --> 00:28:07,120
Speaker 4: There is there anything you.

579
00:28:07,080 --> 00:28:10,520
Speaker 12: Can reveal on what further tightening is necessary as you

580
00:28:10,560 --> 00:28:11,880
Speaker 12: integrate that bank.

581
00:28:12,280 --> 00:28:14,040
Speaker 11: No, you know, they I think the thousand bud it

582
00:28:14,080 --> 00:28:15,359
Speaker 11: was less than what they had planned to do on

583
00:28:15,400 --> 00:28:17,919
Speaker 11: their own. And we need a lot of people, and

584
00:28:18,000 --> 00:28:19,399
Speaker 11: we know we have a lot of you know, we

585
00:28:19,480 --> 00:28:20,840
Speaker 11: hire a lot of people to hear, so I use

586
00:28:20,880 --> 00:28:24,480
Speaker 11: the word redeployment. We're hoping that almost everyone who might

587
00:28:24,520 --> 00:28:26,760
Speaker 11: lose their job, you know, and there might be some more,

588
00:28:26,800 --> 00:28:29,000
Speaker 11: but almost everyone, we could say, hey we have this

589
00:28:29,080 --> 00:28:31,320
Speaker 11: other job for you in the same city, you know,

590
00:28:31,520 --> 00:28:33,880
Speaker 11: or something like that. So you know, we're pretty good

591
00:28:33,880 --> 00:28:36,280
Speaker 11: at that and hopefully we can provide opportunity.

592
00:28:36,680 --> 00:28:37,720
Speaker 14: You know, we welcome the.

593
00:28:37,680 --> 00:28:40,680
Speaker 11: First First Republic people of a company. We're treating them

594
00:28:40,720 --> 00:28:42,760
Speaker 11: with great humanity. I hope we're going to learn a

595
00:28:42,800 --> 00:28:44,280
Speaker 11: lot from them. You know, very often when you have

596
00:28:44,280 --> 00:28:45,920
Speaker 11: to do a do like this, you know, people are angry.

597
00:28:46,160 --> 00:28:46,440
Speaker 14: We're not.

598
00:28:47,000 --> 00:28:49,040
Speaker 11: I've never been part of a company. We didn't buy

599
00:28:49,080 --> 00:28:51,120
Speaker 11: someone to merge someone where you don't learn somebody from

600
00:28:51,120 --> 00:28:53,760
Speaker 11: both sides, and so you know they have this wonderful

601
00:28:53,800 --> 00:28:57,400
Speaker 11: wealth uh business, you know, uh in banking and wealth management,

602
00:28:57,440 --> 00:28:59,360
Speaker 11: and you know we're we have a few things to

603
00:28:59,440 --> 00:29:01,760
Speaker 11: learn to do. I mean, I've never seen I've gotten

604
00:29:01,760 --> 00:29:04,920
Speaker 11: so many emails from very happy customers and that's a

605
00:29:04,960 --> 00:29:05,480
Speaker 11: great thing.

606
00:29:05,560 --> 00:29:07,120
Speaker 14: So what can we learn and what can we do better?

607
00:29:07,160 --> 00:29:08,320
Speaker 14: For JP? Morgan Jayson?

608
00:29:08,800 --> 00:29:11,080
Speaker 12: Now, Jamie, I know last week you talked a lot

609
00:29:11,120 --> 00:29:14,560
Speaker 12: about succession or about your position, that you're not talking

610
00:29:14,560 --> 00:29:17,320
Speaker 12: about retirement right now. I do need to ask you though,

611
00:29:17,360 --> 00:29:20,400
Speaker 12: And your name has been bandied about for years about

612
00:29:20,440 --> 00:29:23,520
Speaker 12: public office. I mean, I don't think Wall Street's too

613
00:29:23,560 --> 00:29:27,320
Speaker 12: pleased about the potential Trump versus Biden runoff next year.

614
00:29:28,240 --> 00:29:32,280
Speaker 12: Is it any has that scenario ever crossed your mind

615
00:29:32,400 --> 00:29:35,000
Speaker 12: that you would run for public office or even accept

616
00:29:35,000 --> 00:29:35,840
Speaker 12: a cabinet position.

617
00:29:37,640 --> 00:29:40,560
Speaker 11: You know, obviously it's crossed my mind because people mention

618
00:29:40,760 --> 00:29:43,040
Speaker 11: things to you and stuff like that. I love my

619
00:29:43,120 --> 00:29:45,400
Speaker 11: country and maybe one day I'll serve my country in

620
00:29:45,400 --> 00:29:46,280
Speaker 11: one capacity or another.

621
00:29:46,320 --> 00:29:47,160
Speaker 14: But I love what I do.

622
00:29:47,720 --> 00:29:49,720
Speaker 11: I think Jadie Moore can do a great job for

623
00:29:49,800 --> 00:29:52,200
Speaker 11: helping Americans, helping countries around the world.

624
00:29:52,400 --> 00:29:53,680
Speaker 14: And this is my job.

625
00:29:53,720 --> 00:29:55,360
Speaker 11: This is what I'm going to do, and I'm quite

626
00:29:55,360 --> 00:29:57,160
Speaker 11: happy doing it. I still have the energy to do it.

627
00:29:57,200 --> 00:29:59,480
Speaker 11: I mentioned you know that when you don't, I think

628
00:29:59,680 --> 00:30:01,720
Speaker 11: people should give up the job if you've got a

629
00:30:01,760 --> 00:30:04,720
Speaker 11: fabulous management team where I really enjoy working with.

630
00:30:06,080 --> 00:30:09,440
Speaker 12: So now I'm here, David Diamond, thanks so much for

631
00:30:09,520 --> 00:30:09,880
Speaker 12: your time.

632
00:30:10,120 --> 00:30:10,720
Speaker 4: I'm Bloomberg.

633
00:30:11,040 --> 00:30:12,720
Speaker 14: Thank you.

634
00:30:13,640 --> 00:30:16,560
Speaker 2: This is Bloomberg day Break Today, your morning brief on

635
00:30:16,640 --> 00:30:20,200
Speaker 2: the stories making news from Wall Street to Washington and beyond.

636
00:30:20,440 --> 00:30:23,240
Speaker 1: Look for us on your podcast feed at six am

637
00:30:23,320 --> 00:30:26,960
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you

638
00:30:27,040 --> 00:30:28,200
Speaker 1: get your podcasts.

639
00:30:28,320 --> 00:30:31,040
Speaker 2: You can also listen live each morning starting at five

640
00:30:31,080 --> 00:30:33,640
Speaker 2: am Wall Street time on Bloomberg eleven three to zero

641
00:30:33,720 --> 00:30:36,600
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,

642
00:30:36,680 --> 00:30:39,520
Speaker 2: Bloomberg one oh six to one in Boston, and Bloomberg

643
00:30:39,600 --> 00:30:41,280
Speaker 2: ninety sixty in San Francisco.

644
00:30:41,680 --> 00:30:44,840
Speaker 1: Our flagship New York station is also available on your

645
00:30:44,880 --> 00:30:49,960
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

646
00:30:50,000 --> 00:30:52,880
Speaker 2: Plus listen coast to coast on the Bloomberg Business App,

647
00:30:52,960 --> 00:30:56,800
Speaker 2: serious XM Channel one nineteen, the iHeartRadio app, and on

648
00:30:56,920 --> 00:30:59,760
Speaker 2: Bloomberg dot Com. I'm Nathan Hager and I'm Karen.

649
00:31:00,560 --> 00:31:03,360
Speaker 1: Join us again tomorrow morning for all the news you

650
00:31:03,440 --> 00:31:07,280
Speaker 1: need to start your day right here on Bloomberg Daybreak