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Speaker 1: Live from the Bloomberg Interact Day Brokers Studios. This is

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Speaker 1: Bloomberg day Break for Tuesday, March seventh. Coming up today,

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Speaker 1: thousands more job cuts are on the way at Metta,

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Speaker 1: Jet Blues proposed takeover of Spirit Airlines, hits Illegal Roadblog,

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Speaker 1: a push to ban TikTok could be introduced in the

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Speaker 1: Senate today, and Wall Street awaits key testimony from Venchair J. Powell.

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Speaker 1: I'm a Me Morris. New York City officials want you

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Speaker 1: to take off your mask before you enter a business.

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Speaker 1: And Governor Murphy's budget promises increases for schools, but includes

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Speaker 1: major budget cuts of John Stans Shower and Swards. The

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Speaker 1: giants today need to make a franchise tag decision the

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Speaker 1: next tonight go for a tenth straight win. That's all

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Speaker 1: straight ahead on Bloomberg day Break, The business news you

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Speaker 1: need disturn your day in just one fifteen minute podcast

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Speaker 1: each pointing on Apples, Spotify, the Bloomberg Business Appen everywhere

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Speaker 1: you get your podcasts. Good morning, I'm Nathan Hager and

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Speaker 1: I'm Karon Moscow. Here are the stories we're following today.

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Speaker 1: We begin with a Bloomberg News exclusive this morning, thousands

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Speaker 1: of job cuts on top of earlier layoffs are on

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Speaker 1: the way to Meta platforms, and we get the latest

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Speaker 1: live with Bloomberg's Steve Rappaport. Good morning, Steve, Good morning,

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Speaker 1: Nathan and Karen. Meta employees who survived the last round

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Speaker 1: of layoffs may not be in the clear after all,

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Speaker 1: sources tell Bloomberg. Thousands of additional jobs are on the

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Speaker 1: chopping block, with the axe coming down as soon as

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Speaker 1: this week. The social networking giant in November let eleven

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Speaker 1: thousand workers go in the company's first major layoff. Meta

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Speaker 1: is reportedly asking directors and vps to make lists of

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Speaker 1: workers that are expendable limit to slow down in ad revenue.

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Speaker 1: Live in New York, I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,

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Speaker 1: Thanks Well, there's also news on the M and a fronto.

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Speaker 1: Bloomberg News has learned Jet blues proposed takeover of Spirit

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Speaker 1: Airlines has hit some turbulence. We get the latest live

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Speaker 1: with Bloomberg's John Tucker. John and Karen's sources say the

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Speaker 1: Justice Department I expected to file an anti trust lawsuit.

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Speaker 1: All lunching the eliminate Spirit would increase ticket prices and

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Speaker 1: decrease options for the flying public. At the same time,

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Speaker 1: the Department of Transportation is expanded to try and block

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Speaker 1: the Transfers Spirits Airline Operating Certificate. This move to block

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Speaker 1: the proposed three point eight billion dollar deal may happen

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Speaker 1: as early as today. The Binding administration has been taking

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Speaker 1: a more aggressive approach to mergers and acquisitions, with a

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Speaker 1: record number of antitrust lawsuits. Line to New York I'm

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Speaker 1: John Tucker, Bloomberg Daybreak, Thank you, John. Turning to geopolitics,

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Speaker 1: tensions between the US and China remain front and center.

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Speaker 1: China's new foreign minister warns the US approach to Beijing

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Speaker 1: is a reckless gamble. Chen Gang, speaking through an interpreter,

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Speaker 1: says Washington is trying to contain and suppress China fashm.

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Speaker 1: The US claims that it seeks to outcompete China, but

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Speaker 1: does not seek conflict yet in reality, it's so called

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Speaker 1: competition aims to contain and suppress China in all respects

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Speaker 1: and get the two countries locked in a zero sum game.

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Speaker 1: The new Foreign minister also criticize the use of sanctions

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Speaker 1: tied to Russia's war in Ukraine. Meantime, Nathan. The push

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Speaker 1: to band Chinese own TikTok is gaining steam on Capitol Hill.

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Speaker 1: Senate Intelligence Chairmark Warner is set to unveil a bill

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Speaker 1: this afternoon that would let the US prohibit foreign technologies

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Speaker 1: like TikTok. Democrat Jake Auchincloss it's on the House Select

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Speaker 1: Committee on Strategic Competition with China. We want to create

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Speaker 1: shared conviction around a discrete set of policy recommendations that

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Speaker 1: seventy percent of Congress can get behind. And I use

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Speaker 1: that number because if you get two thirds of Congress

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Speaker 1: behind something, it's going to transcend any change in the administration.

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Speaker 1: That's how you chart long term strategy. Democratic Congressman Jake

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Speaker 1: Auchincloss book with our Washington correspondent Joe Matthew on Bloomberg

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Speaker 1: Sound On. Catch the show at it's a new time

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Speaker 1: one pm Eastern on Bloomberg Radio, or listen on demand

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Speaker 1: wherever you get your podcasts. Well, that's not the only

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Speaker 1: issue cropping up on US China relations this morning, Karen.

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Speaker 1: The tensions are sparking a change of plans for how

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Speaker 1: Speaker Kevin McCarthy's meeting with the President of Taiwan. Bloomberg

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Speaker 1: Sad Baxter has the story. McCarthy had planned to travel

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Speaker 1: with a US delegation to Taipei to meet with President

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Speaker 1: Siing when but the Financial Time says she convinced McCarthy

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Speaker 1: to meet in the US instead, rather than potentially inflaming

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Speaker 1: and provoking another crisis with China. Size government reportedly shared

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Speaker 1: intelligence with McCarthy about threats posed by Beijing, and the

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Speaker 1: report says McCarthy said that the ask seemed reasonable. They'll

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Speaker 1: meet in California. Si visits the state as well as

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Speaker 1: New York. In San Francisco. I'm at Baxter Bloomberg Daybreak,

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Speaker 1: all right, and thanks well. Turning to the markets and

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Speaker 1: the economy now, while Streets Focus today turns to Washington

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Speaker 1: for two days of congressional testimony by Jay Powell. First

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Speaker 1: up for the FED Chair the Senate Banking Committee, and

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Speaker 1: we get a preview from Bloomberg Economics correspondent Michael McKee.

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Speaker 1: Timing is everything, and the FED chair doesn't seem to

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Speaker 1: have it. Officials have been saying they are data dependent,

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Speaker 1: yet three of the biggest data releases that will influence

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Speaker 1: the decisions don't come until after he testifies Tuesday and Wednesday,

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Speaker 1: Paul is likely to point out the labor market remains

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Speaker 1: very tight, a judgment they hang on the Jolts report

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Speaker 1: out Wednesday. FED officials have forecast job growth will slow

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Speaker 1: and unemployment rise as rates go up, but the job's

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Speaker 1: numbers aren't out until Friday. Of course, their focus is

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Speaker 1: on inflation, but the latest data on consumer prices don't

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Speaker 1: come out until next week. Given that, Paul is likely

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Speaker 1: to stick to the Fed's working script, rates still need

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Speaker 1: to go higher and stay up longer, but he won't

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Speaker 1: be able to tell Congress how high or how long.

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Speaker 1: Mike McKie Bloomberg Daybreak, All right, Mike, thanks, The boss

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Speaker 1: of JP Morgan Chase says the FEDS still has work

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Speaker 1: to do to control inflation. That's one of several takeaways

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Speaker 1: from Jamie Diamond. We spoke exclusively with the JP Morgan

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Speaker 1: CEO yesterday. Mild recessions possible, Harder recessions possible. I think

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Speaker 1: is a good chance that inflation will come down, but

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Speaker 1: not enough by the fourth quarter. May actually have to

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Speaker 1: do more. JP Morgan Chase CEO Jamie Diamond says the

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Speaker 1: war in Ukraine and relations with China are among the

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Speaker 1: top concerns facing the global economy. Stay tuned for more

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Speaker 1: of our exclusive interview coming up shortly on Bloomberg Day Break. Well, Nathan,

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Speaker 1: We're also hearing from another banking boss this morning. Bank

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Speaker 1: of America CEO Brian moynahan says Wall Street has quote

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Speaker 1: some work to do before using popular technologies such as

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Speaker 1: chat GPT. Monahan's comments to the a Fur Business Summit

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Speaker 1: in Sydney, Australia, with the first he's made publicly on

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Speaker 1: the use of artificial intelligence. He recently told employees they're

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Speaker 1: prohibited from using such AI technology for business and straight

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Speaker 1: to had your local headlines and this is Bloomberg. It's

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Speaker 1: thirty three degrees in New York, cloudy this morning. Any

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Speaker 1: light snow will end. It'll be sunny, breezy today with

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Speaker 1: a high near forty five, partly cloudy and breezy tonight.

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Speaker 1: On our way back to near thirty time now to

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Speaker 1: take a look at some of the other stories making

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Speaker 1: news in New York and around the world. For that,

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Speaker 1: we're joined by Bloomberg's Amy Morris. Good morning, Amy, Good morning, Nathan,

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Speaker 1: And you mentioned the snow. It's going to be a

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Speaker 1: slushy commute into the city this morning after that light

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Speaker 1: snow overnight. We get those details from Bloomberg meteorologists Rob

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Speaker 1: Carolyn Amy. The light snow that fell across the Tristate

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Speaker 1: area overnights in the process of ending. Most areas have

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Speaker 1: picked up under an inch, but with temperatures at or

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Speaker 1: below freezing, it's been able to put a coating on

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Speaker 1: the roadway and want to take it slow. With sunshine

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Speaker 1: forecast to develop, it means the ride home should be

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Speaker 1: much better than the ride was in this morning. Amy,

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Speaker 1: all right, thank you, Rob. And New York City officials

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Speaker 1: doubling down now on calls for customers to remove their

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Speaker 1: masks before entering a business. New York City Mayor Eric

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Speaker 1: Adams called on shop owners to require customers to take

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Speaker 1: off those face masks when they enter their stores to

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Speaker 1: help cut down on retail crime that surged since the pandemic.

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Speaker 1: NYPD Chief Jeffrey Madgery says New Yorkers have an obligation

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Speaker 1: to ensure store clerks feel safe, adding that once someone

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Speaker 1: does show their face, they can put their mask back

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Speaker 1: on if they want to. Governor Phil Murphy says his

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Speaker 1: new budget features a billion dollar increase in aid to schools,

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Speaker 1: but some district officials across New Jersey face major cuts

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Speaker 1: to their budgets. Tom's River Regional School Superintendent Michael Sida

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Speaker 1: says his district faces up to a fourteen point four

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Speaker 1: million dollar funding cut, far beyond the two point eight

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Speaker 1: million dollar cut he'd expected. He calls the expected budget

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Speaker 1: cut a fiscal apocalypse. Dozens of other districts expect to

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Speaker 1: lose up to twenty five percent of their state aid

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Speaker 1: in a new budget. US officials are searching for four

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Speaker 1: Americans caught in a shootout and kidnapped in Mexico. State

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Speaker 1: Department spokesperson Ned Price. We're standing ready to provide all

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Speaker 1: appropriate consular assistance. We do also remind Americans about the

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Speaker 1: existing travel guidance when it comes to this particular part

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Speaker 1: of Mexico. The travel advisory for Tamalipa State remains at

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Speaker 1: level four, Do not travel. State Department spokesman Ed Price

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Speaker 1: says the FBI is working with other federal partners and

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Speaker 1: Mexican law enforcement agencies to investigate. At least seven witnesses

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Speaker 1: have met with prosecutors and what now appears to be

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Speaker 1: a fast moving investigation into a twenty sixteen hush money

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Speaker 1: payment to a porn star. New York Times reports former

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Speaker 1: Trump eight Hope Hicks met with the Manhattan District Attorney's

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Speaker 1: office yesterday. It is not clear if the prosecutor will

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Speaker 1: seek to indict the former president. Global News twenty four

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Speaker 1: hours a day, powered by more than twenty seven hundred

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Speaker 1: journalists and analysts in over one hundred twenty countries. I'm

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Speaker 1: Amy Morris, and this is Bloomberg Nathan. Thanks Amy. Time

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Speaker 1: to the Bloomberg Sports Update, brought to you by Trice

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Speaker 1: stayed out. Hey. Good morning, John Stenshower, Good morning night.

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Speaker 1: Today's a big day in the Giants offseason. There's a

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Speaker 1: deadline of four o'clock for teams to decide who are

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Speaker 1: to use a franchise tag on I would keep a

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Speaker 1: player from becoming a free agent. The two biggest names

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Speaker 1: on the team, Daniel Jones Saquon Barkley, both potential free agents.

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Speaker 1: If they tagged Jones, he'd make thirty two million dollars

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Speaker 1: next season. Barkley may very well then move on if

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Speaker 1: they can signed Jones to a long term deal word

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Speaker 1: wars Jones's first offer was for forty five million years,

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Speaker 1: then they may well tagged Barkley. The Jets still need

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Speaker 1: a quarterback because Derek Carr, who met with the Jets,

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Speaker 1: decided instead to sign with New Orleans four years, one

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Speaker 1: hundred and fifty million. Another potential QB might have been

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Speaker 1: Geno Smith, the former Jet who flourished last season in Seattle.

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Speaker 1: He staying with the Seahawks, and Aaron Rodgers has still

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Speaker 1: not made his decision on whether he wants to keep

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Speaker 1: playing and if so, in Green Bay or perhaps elsewhere.

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Speaker 1: Nickson the Horners tonight at the guard Nick's going for

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Speaker 1: a tenth win in a row. It's their longest wind

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Speaker 1: streak in a decade. The Celtics a night after that

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Speaker 1: double overtime loss to the Knicks when they blew a

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Speaker 1: fourteen point second half lead, blew another fourteen point second

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Speaker 1: half lead, lost again in overtime in Cleveland. The Calves

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Speaker 1: are a game and a half ahead of the Knicks,

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Speaker 1: fourth place in the East College Hoops. Hofstra had a

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Speaker 1: great season, winning twenty four games, but a likely season

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Speaker 1: ending loss in overtime semifinals of the Colonial Tournament in Tampa.

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Speaker 1: Three run home for Aaron Judge. NAKs beat the Pirates

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Speaker 1: nine to two. New met pitcher Jose Quintana has a

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Speaker 1: rib cage injury. He has pulled out of the upcoming

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Speaker 1: World Baseball Classic. He wants to pitch for his native Columbia.

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Speaker 1: It's not known if Kntana will be okay by opening day.

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Speaker 1: John Stash at Bloomberg Sport live from coast to coast,

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Speaker 1: from New York to San Francisco, Boston to Washington, d C.

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Speaker 1: Nationwide on Sirius XAM, the Bloomberg Business app, and Bloomberg

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Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar.

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Speaker 1: Geopolitical concerns, they are front of mind for Jamie Diamond,

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Speaker 1: the JP Morgan Chase CEO, spoke with Bloomberg's Ed Hammond

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Speaker 1: in an exclusive interview at the JP Morgan Global High

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Speaker 1: Yield and Leveraged Finance Conference in Miami. Diamond discussed the

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Speaker 1: possibility of operating in Russia again, the role of business

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Speaker 1: plays in politics, and how Jamie Diamond sees the consumer

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Speaker 1: fairing in an uncertain year ahead. What are you worried about?

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Speaker 1: They are I'm worry the most about. If you go

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Speaker 1: it's Ukraine, soil gas, so the leadership of the world

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Speaker 1: and you know our relation with China. I mean that

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Speaker 1: is much more serious though the economic by rations we

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Speaker 1: all have to deal with on a day to day basis.

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Speaker 1: On the Ukraine question that we talked about it a lot,

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Speaker 1: obviously a year ago, very shortly after the world had started.

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Speaker 1: Do you think now a year in the West has

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Speaker 1: become somewhat and neured to the idea of a conflict

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Speaker 1: to this scale on it sports and it's so does

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Speaker 1: that marry it? Yeah? No, it looks a little bit

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Speaker 1: like people are nearer to it. But I think that's

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Speaker 1: a little bit of mistake. I read a report the

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Speaker 1: other day that there when the war goes to one year,

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Speaker 1: it lasts normally last ten. But this is a major

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Speaker 1: landmar in Europe and a freedom democratic nation. You know,

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Speaker 1: the hundreds of thousands of casualties are ready on both sides,

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Speaker 1: And so I think this we don't know how this

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Speaker 1: is going to end, we know what direction is gonna taken,

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Speaker 1: and it's affecting global relationships. So Ukraine, Russia, then this

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Speaker 1: oil gas food of how it's hurting poorer countries, and

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Speaker 1: it's royally trade relationships between America, China and the rest

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Speaker 1: of the world. So this is a probably the most

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Speaker 1: serious geopolitical thing we've had to deal with since World

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Speaker 1: War Two. We'll see a future cha people could potentially

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Speaker 1: re enter the Russia market as a business. I mean

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Speaker 1: a very premature to say, you know, I think if

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Speaker 1: there is a one day maybe, but it's very possible.

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Speaker 1: That woman happened our lifetime. And you mentioned US China

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Speaker 1: relations obviously not at their best right now, partake any

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Speaker 1: posts the balloons. I wonder what role you see business

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Speaker 1: playing in trying to sort of moderate those relations and

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Speaker 1: try and keep them as good as possible. Well, you know,

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Speaker 1: it's really the government. The government has to set the

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Speaker 1: rules and fear what they want to do. But I

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Speaker 1: think it's a fair complaint about government and business that

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Speaker 1: we probably should have started resetting this ten years ago

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Speaker 1: and we didn't. I don't like a choir with billed

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Speaker 1: milk and all that. But going forward, the government and

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Speaker 1: I think they're doing a good job thinking through what

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Speaker 1: is national security? So I think it's semiconductors or penicillian,

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Speaker 1: there are certain drugs, what is unfair trade? And then

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Speaker 1: you know, at one point sit down and have a

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Speaker 1: very serious conversation with the Chinese government. Remember Secretary Blincoln

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Speaker 1: was on his way over there to do that and

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Speaker 1: then the balloon. But at one point they'll do that,

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Speaker 1: and business is a purple player in that. So I

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Speaker 1: think I think physical help give advice on how to

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Speaker 1: do things. If you're gonna have an outbound investment controls

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Speaker 1: how you said that way that works, that's a huge deureaucracy,

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Speaker 1: and so so far all the conversation would be quite

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Speaker 1: irrational about it. I mean, Champion Morgan obviously has a

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Speaker 1: significant business in China. I'm sure that the government that

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Speaker 1: would listen to you. What are the conversations you have

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Speaker 1: just about sort of trying to, as I say, trying

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Speaker 1: to maintain as couldial relations as possible between the two nations.

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Speaker 1: I mean for us where they are, and like I said,

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Speaker 1: you know, we're basically taking a backseat to an American

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Speaker 1: government in this one, and we're gonna we obviously have

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Speaker 1: to do whatever the American government asked us to do,

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Speaker 1: and we're trying to engage in their courage of their

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Speaker 1: own government and with the Chinese government of what those

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Speaker 1: things should be. You know, I'm hoping Coola has prevailed here.

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Speaker 1: But this is why Ukraine is so important. This can

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Speaker 1: cause it to go in a direction rather quickly. So, uh,

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Speaker 1: you know, everyone's got to be some little cautions. You

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Speaker 1: talk about a government, let's talk about the FED for

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Speaker 1: a moment. Obviously, I just want to talk about the

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Speaker 1: FED for a moment. I have comf a dozen physaic

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Speaker 1: questions I can ask you about the FED. I think

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Speaker 1: I know the answer to many of them. Start trying

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Speaker 1: to fight. One fairly easy one is, you know, when

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Speaker 1: do we get to say we're landing be that hard

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Speaker 1: landing on a soft landing, So when does that again

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Speaker 1: into a cup? You know, Forecasting the futures, as you know,

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Speaker 1: very complicated in the consumer still has a lot more money.

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Speaker 1: They're checking accounts than before COVID. They're spending ten percent

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Speaker 1: more than last year, forty percent more than pre COVID,

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Speaker 1: and it looks like they'll have excess point to spend

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Speaker 1: roughly until the end of the year. And at that

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Speaker 1: point or you can aid it a little bit of

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Speaker 1: a cliff as a soft landing. And also QT has

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Speaker 1: nar start to bite that also is gonna happen at

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Speaker 1: one point, probably later this year, and you know that's

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Speaker 1: when you're gonna know what these things do. But you

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Speaker 1: we can still have a soft landing. The the other

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Speaker 1: thing about all this economic forecast in his Russia Ukraine,

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Speaker 1: I mean that can change it dramatically and very very quickly.

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Speaker 1: Do you think absent Russia Ukraine we will have a

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Speaker 1: soft blending. I think it's still possible, but I would

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Speaker 1: I look at possibilities. It's still possible, possible, Mild recessions, possible,

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Speaker 1: harder recessions possible. I think it's a good chance that

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Speaker 1: inflation will come down, but not enough by the fourth

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Speaker 1: quarter that FED may actually have to do more. And

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Speaker 1: I think a lot of the things that have happened

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Speaker 1: in the world, think of the bigger trends are inflationary,

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Speaker 1: you know, infrastructures, bending the IRA act less, any trade

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Speaker 1: with you know, certain parts of the world, bringing trade

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Speaker 1: back into America. Those things are all the green and

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Speaker 1: transition is going to take a lot of capital to

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Speaker 1: all those things kind of have inflatier attributes that are

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Speaker 1: very different than we've been through the last twenty years.

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Speaker 1: I'm gonna come back to the consumer point in a second,

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Speaker 1: but last year you talked about it, and you'll let

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Speaker 1: this sort of confluence of three major effects. It's QT,

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Speaker 1: America rebounding from a sort of CD of the economy

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Speaker 1: fatally strongly, and then oversee the wall as well. You

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Speaker 1: talked about them sort of leading us into an unprecedented period.

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Speaker 1: How do we get out of that period? You know,

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Speaker 1: it's it's diplomacy. I mean, that's why this is not

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Speaker 1: you know, we always talk about uncertainty and the economy

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Speaker 1: and the incertainty, but I call it normal uncertainty. The weathers,

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Speaker 1: you know, we know what the weather's like. That's why

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Speaker 1: these things are different. QT are coming out of COVID,

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Speaker 1: the war in Ukraine. I think it's been pushed out

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Speaker 1: a little bit further. I would have thought we'd be

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Speaker 1: dealing with this a little bit sooner, but it does

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Speaker 1: look like some of that stuff it's coming to fruition

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Speaker 1: at the end of this year. Russia Ukraine, we sussificly

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Speaker 1: don't know. I think it's wrong. It's didn't predict because

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Speaker 1: if you look at the history of wars, they've been

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Speaker 1: pretty much unpredictable and how they play out and which

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Speaker 1: ones affect the global economy, and how they took a

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Speaker 1: lot of wars they didn't affect the global economy, but

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Speaker 1: they were literally in very small parts of the economy.

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Speaker 1: This is not in a small part of the economy.

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Speaker 1: And this is a European nation. It's Russia, and it's

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Speaker 1: oil and you know, major oil and gas supply and

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Speaker 1: food supplier around the world. So this is a whole

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Speaker 1: different attribute to it. But then why does the consumer,

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Speaker 1: particularly here in the US, remain as you say, fairly

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Speaker 1: bullish there Over a period of time, your home price

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Speaker 1: has been going up, Jobs are plentiful ways of going

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Speaker 1: up to the lower end, which I think it's a

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Speaker 1: good thing. They've got a lot of money to checking account.

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Speaker 1: You know, uh, stocks have generally been had gone up

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Speaker 1: for ten or fifteen years. The consumers, if you look

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Speaker 1: at it today, in great shape. But I'm telling you

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Speaker 1: that's going to end at one point. But even if

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Speaker 1: we go to recession, then the consumer is entering a

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Speaker 1: recession in better shape, far better shape than they didn't

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Speaker 1: know way, you know, no way, when we went to

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Speaker 1: that recession, not only did unemployment go through the roof,

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Speaker 1: but their home prices are dropping dramatically, jobs are disappearing,

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Speaker 1: the stock markets way down. So this one is a

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Speaker 1: little bit better than that one. Of the So the

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Speaker 1: narratives said it's fairly popular with the monment. The consumer

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Speaker 1: doesn't like consptancy. I would even got us saying it's

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Speaker 1: sort of one of these false axioms that you know,

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Speaker 1: the people that thought, now that you know, when it's

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Speaker 1: times are uncertain, it could seem the freaks out. They

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Speaker 1: stopped spending, they stopped doing the things that the consumer

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Speaker 1: needs to do to keep the economy going. That doesn't

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Speaker 1: seem to be the case here. The consumer's done pretty

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Speaker 1: well through uncertainty, through COVID, through the wall, through everything else.

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Speaker 1: So I wonder what when we get to this point

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Speaker 1: of you know, the wallet being hit and the consumers

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Speaker 1: saying we're gonna stop spending. Is it just reality catching

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Speaker 1: up with them? This is some kind of distraction point

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Speaker 1: or is it just that they run out of money?

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Speaker 1: Area is destroyed by COVID, including quote uncertainty. So you're

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Speaker 1: outcomes a correct The confidence consumer covers is dropping it.

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Speaker 1: But I think your pocketbook trump's confidence. But they have

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Speaker 1: a lot of money, they tend to spend it, and

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Speaker 1: they you see here like look at the travel in

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Speaker 1: Miami and the building and the optimism around. But if

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Speaker 1: you ask me how they're doing. It's very good. And

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Speaker 1: then they they're not comed by the economy. So jobs

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Speaker 1: are plentiful, wages are going up. I mean, what, that's

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Speaker 1: what's really affecting them. You know, when they wake up

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Speaker 1: the morning, they feel pretty good about that, and then

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Speaker 1: they read the paper and of course you can get

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Speaker 1: a little depressed. And at the end of this year

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Speaker 1: or towards the end of this year, that sort of

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Speaker 1: begins to tell it looks it looks like the excess

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Speaker 1: casual re disappearing. And then but the jobs are still there,

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Speaker 1: so you could that's why you saying you could have

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Speaker 1: a softmanded zone now. Jeffrey Epstein obviously his specter continues

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Speaker 1: to haunt the global elite, and most recently JP Morgan

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Speaker 1: have been sort of caught up in it. How has

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Speaker 1: that made you feel? You know, I can't talk about litigation,

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Speaker 1: but you should. You should know that a JP more,

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Speaker 1: we got top experts, including some of the best people

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Speaker 1: that come out of the DOJ, etc. Who review and

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Speaker 1: make judgment decisions like this and were they generally do

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Speaker 1: a very good job. But how does it make you feel?

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Speaker 1: It's the CEO of J K Morgan as a figurehead

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Speaker 1: for the bank. It's unfortunate, but it's life. And look,

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Speaker 1: we're here in Florida. We have to talk about politics

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Speaker 1: because we always talk about politics. Obviously we're into sensus

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Speaker 1: his backyard. What do you make of if you like

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Speaker 1: hands on approach to business and is that something you

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Speaker 1: would like see more of in even higher office? On

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Speaker 1: approached the sense? Yeah, Look, you know, like I've learned

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Speaker 1: and listen and read and stuff like that. You know,

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Speaker 1: it has got a little complicated between business and government

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Speaker 1: and stuff like that. But but you know, anyone here

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Speaker 1: knows that I'm a full throated, red blooded American patriot

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Speaker 1: supporter free enterprise. So you know, I hear the complains

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Speaker 1: on both sides. I didn't, but you know, you listen

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Speaker 1: and learn from that. I don't worry that much about it.

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Speaker 1: And we've been We've loved Florida. We're growing in Florida

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Speaker 1: left and right. You know, small businesses, large companies, we've

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Speaker 1: got I've got had many total employees we have for you.

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Speaker 1: I'm on my way to Tampa. We've got you know,

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Speaker 1: major operations there Orlando, major operations were opening branches and

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Speaker 1: so the mayor just joined us in a small business

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Speaker 1: that we did here. We're very pro pro Florida. And

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Speaker 1: this is long dated Florida. This isn't part of the

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Speaker 1: sort of recent infects of capital in Florida. Financial wild

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Speaker 1: and are in the past. I think they've been great.

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00:22:01,680 --> 00:22:03,520
Speaker 1: I mean, you know, if you were running the state,

429
00:22:03,920 --> 00:22:05,439
Speaker 1: you know you should be thinking, how can I make

430
00:22:05,480 --> 00:22:08,720
Speaker 1: this date off good? Well off my people. So Florida

431
00:22:08,800 --> 00:22:11,840
Speaker 1: likes business. They want you to come here. You come

432
00:22:11,880 --> 00:22:14,800
Speaker 1: to Florida, you see the optic Texas is the same way.

433
00:22:15,040 --> 00:22:17,520
Speaker 1: You know if I was some other states. If you

434
00:22:17,600 --> 00:22:19,440
Speaker 1: think about why do people like going to these states,

435
00:22:19,600 --> 00:22:22,640
Speaker 1: it's their taxes, is their pro business. They want got

436
00:22:22,640 --> 00:22:25,000
Speaker 1: a life for their people. It's not necessary some of

437
00:22:25,040 --> 00:22:27,479
Speaker 1: the pods we've talked about. So you know, we now

438
00:22:27,520 --> 00:22:30,600
Speaker 1: have more employees in Texas than the New York state. Yeah,

439
00:22:30,640 --> 00:22:32,960
Speaker 1: it should have been that way, but Texas loves to

440
00:22:33,000 --> 00:22:35,440
Speaker 1: be there. I mean you go through their optimistic they're

441
00:22:35,440 --> 00:22:40,960
Speaker 1: optimistic here, pro American, optimistic, pro business. No. Unfortunately, No.

442
00:22:42,320 --> 00:22:44,840
Speaker 1: Every year there's a sort of tech topic to Jo

443
00:22:45,040 --> 00:22:46,879
Speaker 1: that we talked about last year as a Metaverus and

444
00:22:46,920 --> 00:22:49,720
Speaker 1: I think we talked briefly about you appearing in a

445
00:22:49,840 --> 00:22:51,720
Speaker 1: non physical form in the lobby of the mets verse

446
00:22:51,920 --> 00:22:56,440
Speaker 1: these here it's UTAI. I asked chat TPT what I

447
00:22:56,440 --> 00:22:58,199
Speaker 1: should ask Jamy Diamond. I was hoping you would come

448
00:22:58,200 --> 00:23:00,119
Speaker 1: out with the really smart AMS. Huh. I wouldn't to

449
00:23:00,160 --> 00:23:01,600
Speaker 1: write any of my questions. I can get it too

450
00:23:01,720 --> 00:23:05,240
Speaker 1: the whole interview for me, So so it didn't. Unfortunately,

451
00:23:05,240 --> 00:23:09,160
Speaker 1: it asked what would I ask Jamie Diamond about AI

452
00:23:09,280 --> 00:23:10,760
Speaker 1: and what it meant for the future of the investment?

453
00:23:10,960 --> 00:23:15,880
Speaker 1: King a go, So AI is real. This is not cryptotus,

454
00:23:16,200 --> 00:23:20,280
Speaker 1: that's not crypton. This is a technology which is staggering.

455
00:23:20,320 --> 00:23:23,320
Speaker 1: We already lose three hundred AI. We have thousands of

456
00:23:23,320 --> 00:23:27,560
Speaker 1: people involved, thousand involved data, machine learning, natural language processing.

457
00:23:27,840 --> 00:23:30,679
Speaker 1: We have two hundred people in AI research labs. But

458
00:23:30,960 --> 00:23:35,520
Speaker 1: we're already used to do risk fraud, marketing, prospecting, and

459
00:23:35,560 --> 00:23:37,840
Speaker 1: it's the tip of the iceberg. So you know, to me,

460
00:23:37,960 --> 00:23:40,600
Speaker 1: this is this is extraordinary. And the other thing to

461
00:23:40,680 --> 00:23:43,639
Speaker 1: keep in mind there's good use, but bad guys are

462
00:23:43,640 --> 00:23:45,520
Speaker 1: gonna use it too. So it's a little bit of

463
00:23:46,200 --> 00:23:48,040
Speaker 1: arms race and how you have to use it to

464
00:23:48,040 --> 00:23:51,120
Speaker 1: protect your company, protect your clients, protect data, etc. And

465
00:23:51,119 --> 00:23:53,520
Speaker 1: we're fully engaged. The other thing you have to keep

466
00:23:53,560 --> 00:23:56,119
Speaker 1: about AI. You need to be in the cloud to

467
00:23:56,240 --> 00:23:58,880
Speaker 1: use the compute power fundamentally that you need for AI.

468
00:23:59,400 --> 00:24:01,679
Speaker 1: And so that's why the cloud digital AI they all

469
00:24:01,760 --> 00:24:04,360
Speaker 1: kind of related that way. What was behind the decision

470
00:24:04,400 --> 00:24:10,040
Speaker 1: to ban chap gpt on on the trading foot on

471
00:24:10,200 --> 00:24:13,399
Speaker 1: company owned devices, that's why you were doing your own device.

472
00:24:13,640 --> 00:24:17,400
Speaker 1: But we also lab people use it within our own firewalls,

473
00:24:17,640 --> 00:24:19,800
Speaker 1: so we didn't take it away just you have to

474
00:24:19,800 --> 00:24:22,119
Speaker 1: go within our firewall to use it, And it was

475
00:24:22,119 --> 00:24:25,040
Speaker 1: just for control purposes and risper. There's no wasn't a

476
00:24:25,119 --> 00:24:27,800
Speaker 1: staving of any time before we end up. I want

477
00:24:27,800 --> 00:24:30,160
Speaker 1: to get onto leverage finance obviously, that's in large part

478
00:24:30,160 --> 00:24:31,800
Speaker 1: why we hat it's talk about the conference. One of

479
00:24:31,800 --> 00:24:33,680
Speaker 1: the things stamping Morgan stilling at the moment, it's very

480
00:24:33,680 --> 00:24:36,320
Speaker 1: interesting is lending from its own balance sheet and direct

481
00:24:36,359 --> 00:24:38,760
Speaker 1: lending if you like. At the moment, I think it's

482
00:24:38,760 --> 00:24:42,160
Speaker 1: ten million dollars is what's been allocated. How big can

483
00:24:42,160 --> 00:24:45,080
Speaker 1: that business gap? So you know, I mean it's amazing,

484
00:24:45,240 --> 00:24:47,159
Speaker 1: And this is when you look at something like this

485
00:24:47,520 --> 00:24:51,719
Speaker 1: for reviewers, American capitalism. There are two thousand investors here

486
00:24:51,760 --> 00:24:55,760
Speaker 1: from around the world, hundreds of companies still inventing ideas

487
00:24:55,800 --> 00:24:59,760
Speaker 1: and growing and expanding both the US and overseas. It is,

488
00:25:00,000 --> 00:25:02,240
Speaker 1: it is extraordinary. So direct lending. You're obviously one of

489
00:25:02,240 --> 00:25:04,280
Speaker 1: the biggest lenders out there, but a lot of people

490
00:25:04,320 --> 00:25:06,720
Speaker 1: here are also huge lenders. So you know, I meet

491
00:25:06,720 --> 00:25:09,360
Speaker 1: with them all, and you know, direct lending away from

492
00:25:09,359 --> 00:25:11,679
Speaker 1: banks to become equally in size, and not to think

493
00:25:11,720 --> 00:25:13,760
Speaker 1: of those healths as competitives there and there. You know

494
00:25:13,760 --> 00:25:16,560
Speaker 1: that's a lot, but we deal with competitors and collaborators

495
00:25:16,560 --> 00:25:19,360
Speaker 1: all the time. So we do direct lending and all.

496
00:25:19,400 --> 00:25:23,080
Speaker 1: It is fundamental for your viewers, you know, unitron quicker,

497
00:25:24,200 --> 00:25:27,240
Speaker 1: more flexibility, and certain type of coverties not necessarily cheaper

498
00:25:27,240 --> 00:25:28,880
Speaker 1: for the bar or by the way, so you gotta

499
00:25:28,920 --> 00:25:30,920
Speaker 1: look at it all things. So we've done I think

500
00:25:30,920 --> 00:25:33,120
Speaker 1: ten million forty deals. We can do a lot more,

501
00:25:33,600 --> 00:25:35,040
Speaker 1: and you know, we can work with partners or some

502
00:25:35,040 --> 00:25:36,800
Speaker 1: of the deals, et cetera. But we'll do what we

503
00:25:36,840 --> 00:25:39,720
Speaker 1: need to do to compete. It's feel somehow pass to

504
00:25:39,760 --> 00:25:41,439
Speaker 1: ask you about succession. You get asked about it all

505
00:25:41,440 --> 00:25:43,520
Speaker 1: the time. I'm not going to do that, But I

506
00:25:43,560 --> 00:25:46,080
Speaker 1: am interesting. You talk a lot about the need for

507
00:25:46,160 --> 00:25:49,359
Speaker 1: sort of unified responses to global conflict. You talk a

508
00:25:49,359 --> 00:25:51,320
Speaker 1: lot about things that are needed domesticy, whether it's a

509
00:25:51,359 --> 00:25:56,320
Speaker 1: better health, better education, raising wage and equality or reducing

510
00:25:56,320 --> 00:25:59,359
Speaker 1: I should say wage and equality. It seems very olfviousity.

511
00:25:59,400 --> 00:26:01,600
Speaker 1: You could go in to public office if you chose

512
00:26:01,640 --> 00:26:04,000
Speaker 1: to when you leave, Jaki Molan, this has something we

513
00:26:04,040 --> 00:26:06,359
Speaker 1: can expect. I'm not going to go to public service.

514
00:26:06,680 --> 00:26:10,720
Speaker 1: I love what I do here. You mentioned succession, enjoy it.

515
00:26:11,640 --> 00:26:14,600
Speaker 1: I think you should practice it a little bit before

516
00:26:14,600 --> 00:26:16,760
Speaker 1: you go into it. And I I mean I feel

517
00:26:16,840 --> 00:26:19,760
Speaker 1: I do. Here's a huge contribution to my country, my

518
00:26:19,880 --> 00:26:22,880
Speaker 1: clients around the world, etc. And the other thing about

519
00:26:22,880 --> 00:26:25,679
Speaker 1: succession got you. You guys already know who that we

520
00:26:25,720 --> 00:26:28,200
Speaker 1: have a lot of potential successors, so you can add

521
00:26:28,320 --> 00:26:31,280
Speaker 1: right about it frequent exactly, so you know I couldn't

522
00:26:31,320 --> 00:26:34,639
Speaker 1: add to that you already know. This is Bloomberg day

523
00:26:34,680 --> 00:26:37,680
Speaker 1: Break Today, your morning brief on the stories making news

524
00:26:37,760 --> 00:26:40,920
Speaker 1: from Wall Street to Washington and beyond. Look for us

525
00:26:40,920 --> 00:26:44,359
Speaker 1: on your podcast feed at six am Eastern each morning,

526
00:26:44,480 --> 00:26:48,000
Speaker 1: on Apple, Spotify, and anywhere else you get your podcasts.

527
00:26:48,200 --> 00:26:50,880
Speaker 1: You can also listen live each morning starting at five

528
00:26:50,960 --> 00:26:53,679
Speaker 1: am Wall Street Time, on Bloomberg eleven three zero in

529
00:26:53,720 --> 00:26:57,240
Speaker 1: New York, Bloomberg ninety nine one in Washington, Bloomberg one

530
00:26:57,240 --> 00:27:00,280
Speaker 1: oh six one in Boston, and Bloomberg nine six in

531
00:27:00,359 --> 00:27:04,359
Speaker 1: San Francisco. Our flagship New York station is also available

532
00:27:04,400 --> 00:27:08,680
Speaker 1: on your Amazon Alexa devices. Just say Alexa play Bloomberg

533
00:27:08,760 --> 00:27:12,080
Speaker 1: eleven thirty plus listen coast to coast on the Bloomberg

534
00:27:12,160 --> 00:27:16,280
Speaker 1: Business app, Serius XM Channel one nineteen, the iHeartRadio app,

535
00:27:16,320 --> 00:27:19,360
Speaker 1: and on Bloomberg dot com. I'm Nathan Hager and I'm

536
00:27:19,440 --> 00:27:22,679
Speaker 1: Karen Moscow. Join us again tomorrow morning for all the

537
00:27:22,680 --> 00:27:25,359
Speaker 1: news you need to start your day right here on

538
00:27:25,400 --> 00:27:26,520
Speaker 1: Bloomberg Daybreak