1
00:00:01,520 --> 00:00:04,840
Speaker 1: From the Bloomberg Interactive Brokers Studios. This is Bloomberg day

2
00:00:04,880 --> 00:00:06,720
Speaker 1: Break for Thursday, June eighth.

3
00:00:06,760 --> 00:00:10,399
Speaker 2: Coming up today, Smoke blankets the Northeast and it could

4
00:00:10,520 --> 00:00:11,840
Speaker 2: last a few more days.

5
00:00:12,240 --> 00:00:15,720
Speaker 1: Former President Donald Trump learns he's under criminal investigation.

6
00:00:15,960 --> 00:00:19,079
Speaker 2: President Biden vetos a bill aimed at killing his student

7
00:00:19,160 --> 00:00:20,200
Speaker 2: debt relief, and.

8
00:00:20,200 --> 00:00:23,040
Speaker 1: We hear from Ray Delio and Brian Monahan at this

9
00:00:23,160 --> 00:00:25,480
Speaker 1: year's a Bloomberg invest conference in New York.

10
00:00:25,640 --> 00:00:28,240
Speaker 3: Germany blames Russia for the destruction of a dam in

11
00:00:28,280 --> 00:00:31,640
Speaker 3: southern Ukraine, blast New York City Sue's thirty counties for

12
00:00:31,760 --> 00:00:35,519
Speaker 3: blocking deals to How's migrants. I'm Michael Barnard Moore Ahead.

13
00:00:35,320 --> 00:00:38,040
Speaker 4: I'm John stash Eward Sports. The Mets in Atlanta lost

14
00:00:38,080 --> 00:00:40,160
Speaker 4: their fifth in the row. The Nuggets beat they hate

15
00:00:40,159 --> 00:00:42,680
Speaker 4: and lead the NBA Finals two games to one.

16
00:00:43,720 --> 00:00:47,120
Speaker 5: That's all straight Ahead on Bloomberg day Break, the Business

17
00:00:47,159 --> 00:00:49,640
Speaker 5: news you need to sturn your day in just one

18
00:00:49,720 --> 00:00:54,200
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

19
00:00:54,240 --> 00:00:56,920
Speaker 5: Business app, and everywhere you get your podcasts.

20
00:01:00,000 --> 00:01:01,280
Speaker 6: Good morning, I'm Nathan.

21
00:01:01,040 --> 00:01:04,000
Speaker 1: Hager and I'm Garen Moscow. Here are the stories We're

22
00:01:04,040 --> 00:01:05,240
Speaker 1: following today, we.

23
00:01:05,200 --> 00:01:08,080
Speaker 2: Want to get an update first on the smoky blanket

24
00:01:08,280 --> 00:01:11,680
Speaker 2: billowing across the East coast. It could stay with us

25
00:01:12,040 --> 00:01:14,920
Speaker 2: a few more days. Let's get the details from Bloomberg's

26
00:01:14,959 --> 00:01:16,640
Speaker 2: John Tucker, John and Nathan.

27
00:01:16,680 --> 00:01:19,600
Speaker 7: The hazen smoke from those fires in Quebec and Ontario

28
00:01:19,720 --> 00:01:23,800
Speaker 7: will return today and tomorrow. Our meteorologist Rob Carolyn tells

29
00:01:23,840 --> 00:01:26,680
Speaker 7: us a low pressure system over Atlantic Canna is going

30
00:01:26,720 --> 00:01:29,160
Speaker 7: to start to pull away over the next few days.

31
00:01:29,600 --> 00:01:32,160
Speaker 8: Shouldn't be as bad across the Tri state area. Visibilit

32
00:01:32,160 --> 00:01:33,880
Speaker 8: would be a bit better, but there will be some smoke.

33
00:01:34,080 --> 00:01:36,200
Speaker 8: And yesterday the Boston area escaped the smoke, and they

34
00:01:36,240 --> 00:01:38,760
Speaker 8: should do so again today. And it definitely looks hazy

35
00:01:38,800 --> 00:01:39,840
Speaker 8: in Washington today.

36
00:01:39,959 --> 00:01:42,520
Speaker 7: Now the wildfire smoke is hazardous in partant because it

37
00:01:42,560 --> 00:01:47,520
Speaker 7: contains tiny inhalible particles. The health experts recommend everybody limited

38
00:01:47,560 --> 00:01:50,360
Speaker 7: their time outdoors now. The air quality index in New

39
00:01:50,440 --> 00:01:54,160
Speaker 7: York City reached three hundred and ninety two yesterday. That's

40
00:01:54,200 --> 00:01:57,640
Speaker 7: a level considered to be hazardous for all groups, including

41
00:01:57,720 --> 00:02:01,120
Speaker 7: healthy people. For comparison's sake, two one hundred is the

42
00:02:01,120 --> 00:02:05,440
Speaker 7: equivalent of smoking an entire pack of cigarettes. Breathing polluted

43
00:02:05,440 --> 00:02:09,080
Speaker 7: air also linked to an increased risk for dementia, and

44
00:02:09,200 --> 00:02:11,919
Speaker 7: Nathan and Karen being at work could be the safest place.

45
00:02:12,000 --> 00:02:15,760
Speaker 7: Modern buildings, air handling and ventilation systems are operated to

46
00:02:15,880 --> 00:02:19,480
Speaker 7: optimize the indoor air quality and use high efficiency filters.

47
00:02:19,639 --> 00:02:22,200
Speaker 7: In New York, I'm John Tucker, Bloomberg Daybreak.

48
00:02:22,280 --> 00:02:24,680
Speaker 1: All right, John, thank you. Well. Another major story we're

49
00:02:24,760 --> 00:02:28,640
Speaker 1: following this morning takes us to politics. Former President Donald

50
00:02:28,639 --> 00:02:30,880
Speaker 1: Trump has been notified that he is a target in

51
00:02:30,880 --> 00:02:34,720
Speaker 1: a classified documents case. Bloomberg's Ed Baxter has the story.

52
00:02:35,000 --> 00:02:38,280
Speaker 9: The notification in a letter from the Justice Department, saying

53
00:02:38,360 --> 00:02:41,720
Speaker 9: that this is the result of the federal probe. Prosecutors

54
00:02:41,760 --> 00:02:44,640
Speaker 9: have been building a case, including testimony from former aids,

55
00:02:44,639 --> 00:02:49,040
Speaker 9: including former Chief of Staff Mark Meadows. Meadows has testified

56
00:02:49,080 --> 00:02:52,320
Speaker 9: before federal grand juries in Washington and Miami for Special

57
00:02:52,360 --> 00:02:56,520
Speaker 9: counsel Jack Smith. The Justice Department is required to notify

58
00:02:56,560 --> 00:03:01,480
Speaker 9: individuals if they are a target based on somebstantial evidence

59
00:03:01,760 --> 00:03:04,919
Speaker 9: linking that person to the commission of a crime. In

60
00:03:04,960 --> 00:03:07,359
Speaker 9: San Francisco, I'm at Baxter, Bloomberg Daybreak.

61
00:03:07,440 --> 00:03:10,440
Speaker 2: Okay, Ed, thank you. On Capitol Hill today, House Republicans

62
00:03:10,440 --> 00:03:13,440
Speaker 2: had planned to vote on holding FBI Director Christopher Ray

63
00:03:13,600 --> 00:03:17,440
Speaker 2: in contempt. Now that's been called off. House Oversight Chairman

64
00:03:17,560 --> 00:03:20,480
Speaker 2: James Comber says the FBI has quote caved and is

65
00:03:20,560 --> 00:03:23,600
Speaker 2: letting all members of his committee see a disputed document.

66
00:03:23,840 --> 00:03:27,320
Speaker 2: Republicans claim the document links President Biden to wrongdoing by

67
00:03:27,320 --> 00:03:28,760
Speaker 2: an unnamed foreign national.

68
00:03:29,160 --> 00:03:32,799
Speaker 1: Meantime, Nathan President Biden has vetoted bill aimed at killing

69
00:03:32,840 --> 00:03:36,240
Speaker 1: his high profile student dead relief program, and a White

70
00:03:36,240 --> 00:03:39,240
Speaker 1: House video, the President said he'll keep fighting to make

71
00:03:39,280 --> 00:03:40,680
Speaker 1: sure college is cheaper.

72
00:03:41,160 --> 00:03:43,560
Speaker 10: Some of the same members of Congress who supported this

73
00:03:43,760 --> 00:03:47,080
Speaker 10: bill voted through huge tax custs for corporations and the

74
00:03:47,120 --> 00:03:49,680
Speaker 10: wealthy as well, But when it comes to hard working

75
00:03:49,720 --> 00:03:53,600
Speaker 10: Americans trying to get ahead dealing with the student debt relief,

76
00:03:53,680 --> 00:03:55,040
Speaker 10: that's where they drew the line.

77
00:03:55,120 --> 00:03:58,440
Speaker 1: President Biden did not address some of the Congressional Democrats

78
00:03:58,480 --> 00:04:01,120
Speaker 1: who broke with him on the bill. Senators Joe Manchin

79
00:04:01,160 --> 00:04:04,920
Speaker 1: and Joe Tester and Democrat turned independent Kirsten Cinema join

80
00:04:05,000 --> 00:04:08,400
Speaker 1: with Republicans to vote against the student debt relief measure.

81
00:04:08,560 --> 00:04:11,760
Speaker 2: Well Karen uk. Prime Minister Rishi Sunek is in Washington

82
00:04:11,840 --> 00:04:14,000
Speaker 2: later today, he takes part in a joint news conference

83
00:04:14,000 --> 00:04:16,440
Speaker 2: with President Biden. That's on the heels of a meeting

84
00:04:16,480 --> 00:04:18,560
Speaker 2: with House Speaker Kevin McCarthy yesterday.

85
00:04:18,680 --> 00:04:21,160
Speaker 5: When our bond is stronger, the world is safer, and

86
00:04:21,320 --> 00:04:23,120
Speaker 5: democracy grows further when we've.

87
00:04:23,000 --> 00:04:25,480
Speaker 11: Stood together, I agree with you, the world hos benefited.

88
00:04:25,680 --> 00:04:27,920
Speaker 11: And what we need to do now is figure out

89
00:04:28,120 --> 00:04:30,359
Speaker 11: how do we make sure that relationship is strong to

90
00:04:30,400 --> 00:04:32,400
Speaker 11: deal with the challenges of the future. I know that's

91
00:04:32,400 --> 00:04:35,040
Speaker 11: what we're going to be talking about, but particularly strengthening

92
00:04:35,040 --> 00:04:36,919
Speaker 11: our economies because that's what it's all about.

93
00:04:37,080 --> 00:04:39,520
Speaker 2: And Prime Minister soon next joint news conference with President

94
00:04:39,560 --> 00:04:42,320
Speaker 2: Biden is set for one thirty pm Eastern And.

95
00:04:42,320 --> 00:04:44,520
Speaker 1: Return to Wall Street now, Nathan, and we've been speaking

96
00:04:44,520 --> 00:04:47,480
Speaker 1: with some high profile names at the Bloomberg invest conference

97
00:04:47,560 --> 00:04:50,720
Speaker 1: in New York. Bank of America CEO Brian moynihan tells

98
00:04:50,800 --> 00:04:54,880
Speaker 1: us higher capital requirements will hit lending. That's after reports

99
00:04:54,920 --> 00:04:57,599
Speaker 1: that large US banks may have to boost their capital

100
00:04:57,640 --> 00:05:00,320
Speaker 1: by an average of twenty percent today.

101
00:05:00,960 --> 00:05:03,520
Speaker 12: It's a fairly straightforward. If our capital ratios go up

102
00:05:03,520 --> 00:05:07,880
Speaker 12: by hundred basis points, we basically you simply put you

103
00:05:07,880 --> 00:05:09,839
Speaker 12: can't make about one hundred and fifty million dollars loans

104
00:05:10,320 --> 00:05:13,240
Speaker 12: and because people say, well you have more capite, you

105
00:05:13,320 --> 00:05:15,039
Speaker 12: make more loans. But if we took risk on that capital,

106
00:05:15,080 --> 00:05:16,920
Speaker 12: we wouldn't have that capital ratio. So it has to

107
00:05:16,960 --> 00:05:19,560
Speaker 12: be a riskless build. A capital can't be out there

108
00:05:19,600 --> 00:05:20,159
Speaker 12: taking risk.

109
00:05:20,440 --> 00:05:23,360
Speaker 1: Thank of America CEO Brian Lenahan spoke with a Bloomberg's

110
00:05:23,400 --> 00:05:25,560
Speaker 1: David west End. Stay tuned for more of that interview

111
00:05:25,600 --> 00:05:27,480
Speaker 1: coming up shortly on Bloomberg Daybreak.

112
00:05:27,680 --> 00:05:30,000
Speaker 2: We also heard from Wherry Daly, O Bloomberg invest Karen,

113
00:05:30,040 --> 00:05:32,960
Speaker 2: the billionaire founder Bridgewater Associates, thinks we're getting close to

114
00:05:33,000 --> 00:05:34,840
Speaker 2: the end of FED interest rate hikes.

115
00:05:35,320 --> 00:05:37,800
Speaker 13: The interest rates are now at a level that they're

116
00:05:37,839 --> 00:05:39,800
Speaker 13: probably going to stay at, but they're probably not going

117
00:05:39,839 --> 00:05:42,400
Speaker 13: to rise much from a year, and there's tightness and

118
00:05:42,440 --> 00:05:45,839
Speaker 13: the consequences of that are going to be a weaker

119
00:05:46,000 --> 00:05:47,720
Speaker 13: economy going forward.

120
00:05:48,040 --> 00:05:50,640
Speaker 2: Ry Dalio predicts the US economy will get weaker from here.

121
00:05:50,720 --> 00:05:53,520
Speaker 2: Catch the full conversation and all our best interviews each

122
00:05:53,600 --> 00:05:55,920
Speaker 2: day on the daily Bloomberg Talks podcast.

123
00:05:56,360 --> 00:05:58,760
Speaker 1: Nathan. We also caught up with Kim Kardashian. She was

124
00:05:58,800 --> 00:06:01,440
Speaker 1: at the Super Return Conference in Berlin, the reality TV

125
00:06:01,560 --> 00:06:04,680
Speaker 1: starter an entrepreneur, presented her debut private equity fund to

126
00:06:04,720 --> 00:06:07,960
Speaker 1: a crowd of curious investors, and she spoke with David Rubinstein.

127
00:06:08,600 --> 00:06:14,960
Speaker 14: I'm honestly most looking forward to my relationships with the founders.

128
00:06:15,279 --> 00:06:18,080
Speaker 14: I love hearing people's stories and hearing what their magic

129
00:06:18,360 --> 00:06:22,320
Speaker 14: sauces behind their company and why they wanted to start

130
00:06:22,360 --> 00:06:25,000
Speaker 14: the company that they did, and what their vision is

131
00:06:25,040 --> 00:06:26,599
Speaker 14: and just hope that I can help that.

132
00:06:26,920 --> 00:06:30,240
Speaker 1: And Kim Kardashian's private equity fund, Sky Partners, is targeting

133
00:06:30,320 --> 00:06:33,440
Speaker 1: up to twelve investments, each requiring anywhere from one hundred

134
00:06:33,440 --> 00:06:35,480
Speaker 1: to five hundred million dollars of equity.

135
00:06:38,760 --> 00:06:39,920
Speaker 2: And you take a look at some of the other

136
00:06:39,960 --> 00:06:42,000
Speaker 2: stories making news in New York and around the world.

137
00:06:42,040 --> 00:06:45,400
Speaker 2: We're joined by Bloomberg's Michael Barr. Good morning, Michael, Good morning, Nathan.

138
00:06:45,480 --> 00:06:49,719
Speaker 3: Germany blame Russian President Vladimir Putin for the destruction of

139
00:06:49,800 --> 00:06:53,360
Speaker 3: the Kakova Dam in southern Ukraine. Germany was joined by

140
00:06:53,400 --> 00:06:56,880
Speaker 3: other European NATO members and denouncing it as a war crime.

141
00:06:57,200 --> 00:06:59,320
Speaker 3: The US has yet to make an assessment on what

142
00:06:59,480 --> 00:07:03,800
Speaker 3: caused them to collapse. State Department spokesman Vedant Patel says,

143
00:07:04,080 --> 00:07:06,839
Speaker 3: while it is still trying to figure out what happened,

144
00:07:07,160 --> 00:07:10,360
Speaker 3: the US government is mobilizing humanitarian resources.

145
00:07:10,640 --> 00:07:14,480
Speaker 15: I'm certainly not going to get into internal assessments, but

146
00:07:14,680 --> 00:07:16,640
Speaker 15: I will note that we continue to be in close

147
00:07:16,720 --> 00:07:22,240
Speaker 15: touch with Ukrainian authorities on providing assistance to the civilians displaced,

148
00:07:22,240 --> 00:07:26,360
Speaker 15: as well as continuing to assess what transpired.

149
00:07:26,720 --> 00:07:30,400
Speaker 3: Ukrainian authorities are Russian supplies of drinking water to areas

150
00:07:30,440 --> 00:07:34,440
Speaker 3: affected by flooding from the collapse dam. Supreme Court justices

151
00:07:34,520 --> 00:07:39,560
Speaker 3: and other federal justices release their annual reports disclosing paid travel,

152
00:07:39,880 --> 00:07:45,440
Speaker 3: outside income, investments, significant gifts, and the source of spousal income.

153
00:07:45,840 --> 00:07:49,360
Speaker 3: Clarence Thomas and Samuel Alito have asked for an extension,

154
00:07:49,480 --> 00:07:52,880
Speaker 3: which means their filings won't arrive until after the end

155
00:07:52,920 --> 00:07:56,080
Speaker 3: of the term. President Joe Biden has invited thousands of

156
00:07:56,280 --> 00:08:00,720
Speaker 3: LGBTQ individuals to the White House today to celebrate Pride Month.

157
00:08:01,080 --> 00:08:04,920
Speaker 3: Biden plans to announce new initiatives to protect communities from attacks.

158
00:08:05,320 --> 00:08:07,360
Speaker 3: White House spokesperson Karine Jean Pierre.

159
00:08:07,520 --> 00:08:11,120
Speaker 16: We believe that not only does this community need to

160
00:08:11,160 --> 00:08:14,080
Speaker 16: be celebrated and continue to be celebrated, as he's done

161
00:08:14,160 --> 00:08:17,560
Speaker 16: many times before in this past two years. But we

162
00:08:17,600 --> 00:08:20,400
Speaker 16: also need to make sure that we let the community

163
00:08:20,600 --> 00:08:23,160
Speaker 16: know that the President has their back and we're going

164
00:08:23,200 --> 00:08:24,400
Speaker 16: to continue to fight for them.

165
00:08:24,680 --> 00:08:28,520
Speaker 3: White House spokesperson Karine Jean Pierre is the first openly

166
00:08:28,600 --> 00:08:31,880
Speaker 3: gay press secretary. It's the next chapter in the battle

167
00:08:31,880 --> 00:08:34,040
Speaker 3: over the flood of migrants to New York City and

168
00:08:34,200 --> 00:08:37,840
Speaker 3: Upstate counties. The Big Apple sued thirty upstate in Long

169
00:08:37,840 --> 00:08:42,400
Speaker 3: Island Counties for issuing executive orders blocking local hotels and

170
00:08:42,520 --> 00:08:47,120
Speaker 3: motels from contracting to house migrants sent from the city.

171
00:08:47,480 --> 00:08:49,840
Speaker 3: New York Mayor Eric Adams says the suit is aimed

172
00:08:49,840 --> 00:08:55,040
Speaker 3: at ending xenophobic bignitry. Meanwhile, Mayor Adams plans to direct

173
00:08:55,040 --> 00:08:59,800
Speaker 3: a cumulative sixty billion dollars of contractual work to minority

174
00:08:59,840 --> 00:09:03,160
Speaker 3: and women owned businesses by twenty thirty. The goal is

175
00:09:03,240 --> 00:09:06,199
Speaker 3: requiring the city to more than double as annual rate

176
00:09:06,240 --> 00:09:10,760
Speaker 3: of contracts to underrepresented communities. Global News twenty four hours

177
00:09:10,800 --> 00:09:13,600
Speaker 3: a day, powered by more than twenty seven hundred journalists,

178
00:09:13,640 --> 00:09:16,160
Speaker 3: nantilists and over one hundred and twenty countries. Him Michael Barr,

179
00:09:16,240 --> 00:09:17,000
Speaker 3: this is Bloomberg.

180
00:09:17,080 --> 00:09:24,400
Speaker 2: Nathan, thanks Michael time for the Bloomberg Sports update. For that,

181
00:09:24,400 --> 00:09:26,600
Speaker 2: we bring in John Staneshauer. All right, anything Game.

182
00:09:26,480 --> 00:09:28,920
Speaker 4: Three of the NBA Finals eating Miami, and some triple

183
00:09:29,040 --> 00:09:32,800
Speaker 4: double history. Denver's Nicola Jokis and Jamal Murray first teammates

184
00:09:32,840 --> 00:09:34,800
Speaker 4: to both have them in the Finals game. But more

185
00:09:34,840 --> 00:09:37,800
Speaker 4: than that, they're the first teammates in any NBA game,

186
00:09:37,880 --> 00:09:41,640
Speaker 4: regular or postseason to both have triple doubles and both

187
00:09:41,679 --> 00:09:44,360
Speaker 4: score at least thirty points. Jokid score thirty two at

188
00:09:44,400 --> 00:09:47,280
Speaker 4: twenty one rebounds. Murray went for thirty four, got his

189
00:09:47,400 --> 00:09:49,959
Speaker 4: tenth board with nine seconds left. They both had tennis.

190
00:09:50,000 --> 00:09:53,080
Speaker 4: Says Denver, Meat the heat one oh nine ninety four

191
00:09:53,120 --> 00:09:54,719
Speaker 4: and leading the series now two to one. Now that

192
00:09:54,800 --> 00:09:57,400
Speaker 4: shot fifty one percent, the heat only thirty seven. Denver

193
00:09:57,520 --> 00:10:01,360
Speaker 4: was plus twenty five in rebound. Game four tomorrow, another

194
00:10:01,440 --> 00:10:03,600
Speaker 4: loss for the Mets, second night in a row in Atlanta,

195
00:10:03,600 --> 00:10:05,760
Speaker 4: where they had a four to one lead sixth inning,

196
00:10:06,120 --> 00:10:08,480
Speaker 4: Braves again came back, won seven to five on a

197
00:10:08,600 --> 00:10:11,439
Speaker 4: Michael Harris to run homer in the eight off Adam Ottavino.

198
00:10:11,520 --> 00:10:14,080
Speaker 4: The Mets have lost five in a row. Yankees in

199
00:10:14,120 --> 00:10:17,480
Speaker 4: White Sox Air Quality Now doubleheader today starting at four.

200
00:10:17,559 --> 00:10:19,760
Speaker 4: Rory McElroy t he's off today at the Canadian Opened.

201
00:10:20,160 --> 00:10:24,240
Speaker 4: His first public reaction to the PGA Live merger. McElroy

202
00:10:24,280 --> 00:10:27,160
Speaker 4: had been the most outspoken against lib which he says

203
00:10:27,160 --> 00:10:29,600
Speaker 4: he still hates and he admits to a feeling of

204
00:10:29,600 --> 00:10:32,800
Speaker 4: being a sacrificial lamb, but he said the merger was

205
00:10:32,880 --> 00:10:34,120
Speaker 4: somewhat inevitable.

206
00:10:34,440 --> 00:10:37,880
Speaker 17: PIF and the Saudeas want to spend money in the

207
00:10:37,880 --> 00:10:40,840
Speaker 17: game of golf. It is they they want to do

208
00:10:40,880 --> 00:10:46,360
Speaker 17: this and they weren't going to stop. So Hi, can

209
00:10:46,400 --> 00:10:47,920
Speaker 17: we you know the thing for me and this is

210
00:10:48,160 --> 00:10:50,400
Speaker 17: one thing that I've always thought about, how can we

211
00:10:50,480 --> 00:10:52,640
Speaker 17: get that money into the game but use it the

212
00:10:52,679 --> 00:10:53,000
Speaker 17: right way.

213
00:10:53,080 --> 00:10:56,400
Speaker 4: Mcklroy supported in BATTLEPGA Commissioner Jay Monahan. They'll play the

214
00:10:56,400 --> 00:10:59,600
Speaker 4: women's semifinals today at the French Open. Lionel Messi will

215
00:10:59,600 --> 00:11:01,920
Speaker 4: play Angel League Soccer in Miami.

216
00:11:02,160 --> 00:11:03,160
Speaker 5: John stash Ellen.

217
00:11:03,000 --> 00:11:04,800
Speaker 4: Bloomberg Sports.

218
00:11:06,640 --> 00:11:09,640
Speaker 5: From coast to coast, from New York to San Francisco,

219
00:11:09,960 --> 00:11:14,040
Speaker 5: Boston to Washington, d C. Nationwide on Syrias Exam, the

220
00:11:14,080 --> 00:11:16,760
Speaker 5: Bloomberg Business Appen Bloomberg dot Com.

221
00:11:16,840 --> 00:11:22,160
Speaker 2: This is Bloomberg Daybreak, Good morning, I'm Nathan Hagar. Millions

222
00:11:22,200 --> 00:11:25,880
Speaker 2: of Americans are waking up this morning following visions of

223
00:11:25,920 --> 00:11:32,160
Speaker 2: apocalyptic orange skies. Wildfires from Canada have sent smoke billowing

224
00:11:32,320 --> 00:11:35,679
Speaker 2: across the Northeast, and air quality warnings have been up

225
00:11:35,720 --> 00:11:39,920
Speaker 2: from Massachusetts through New York City, all the way into Washington,

226
00:11:40,040 --> 00:11:43,440
Speaker 2: DC and beyond. So how much longer can this last?

227
00:11:43,480 --> 00:11:47,080
Speaker 2: When will it end? Bloomberg Meteorologist Rob Carolyn is here

228
00:11:47,080 --> 00:11:50,360
Speaker 2: with us Live to help answer some of those questions. Rob,

229
00:11:50,440 --> 00:11:53,960
Speaker 2: you know it's bad when the sky's orange during the day.

230
00:11:54,240 --> 00:11:56,559
Speaker 2: Is it gonna be as bad in the East.

231
00:11:56,280 --> 00:11:59,600
Speaker 8: Coast as it was yesterday? Well, Nathan, the worst of

232
00:11:59,640 --> 00:12:01,680
Speaker 8: it yes was in the Tri State area. That's where

233
00:12:01,720 --> 00:12:04,439
Speaker 8: we saw those visibilities under two miles in very heavy smoke,

234
00:12:04,480 --> 00:12:07,320
Speaker 8: and the visibility is pour this morning around southern New York.

235
00:12:07,400 --> 00:12:10,120
Speaker 8: I'm looking at visibilities right now under two miles from

236
00:12:10,120 --> 00:12:12,720
Speaker 8: the Hudson River Valley across Long Island and into the city.

237
00:12:12,800 --> 00:12:15,439
Speaker 8: So it gets a little bit better as the day

238
00:12:15,480 --> 00:12:17,200
Speaker 8: goes on in New York. Some of the smoke's going

239
00:12:17,280 --> 00:12:19,440
Speaker 8: to disperse, but it's certainly going to be hazy much

240
00:12:19,440 --> 00:12:21,600
Speaker 8: of the Boston area yesterday missed out on it. We

241
00:12:21,600 --> 00:12:24,360
Speaker 8: had visibilities in ten miles. There was some smoke, but

242
00:12:24,400 --> 00:12:26,400
Speaker 8: certainly nothing like what we saw in New York City.

243
00:12:26,600 --> 00:12:28,000
Speaker 8: We did have quite a bit of haze in the

244
00:12:28,040 --> 00:12:31,480
Speaker 8: district in Baltimore that continues today. The big problem is

245
00:12:31,520 --> 00:12:34,040
Speaker 8: we are stuck in a stagnant weather pattern. Low pressure

246
00:12:34,120 --> 00:12:37,400
Speaker 8: is stalled over eastern New England and eastern Canada. That's

247
00:12:37,440 --> 00:12:40,360
Speaker 8: what's pulling all of this smoke out of Quebec and Ontario,

248
00:12:40,480 --> 00:12:43,760
Speaker 8: and it will continue to do so today, tomorrow and

249
00:12:43,840 --> 00:12:46,320
Speaker 8: into Saturday. It looks like a system coming out of

250
00:12:46,320 --> 00:12:48,320
Speaker 8: the western United States is going to help kick this

251
00:12:48,400 --> 00:12:50,680
Speaker 8: low out and weaken it. So we'll start to see

252
00:12:50,720 --> 00:12:53,880
Speaker 8: gradual improvement by Sunday in the air quality across the

253
00:12:53,920 --> 00:12:57,080
Speaker 8: northeast Ohio River Valley in mid Atlantic region. It definitely

254
00:12:57,080 --> 00:12:59,360
Speaker 8: gets better into next week as the weather pattern starts

255
00:12:59,400 --> 00:12:59,959
Speaker 8: to change.

256
00:13:00,160 --> 00:13:03,679
Speaker 2: Is a stalled weather pattern like this unusual, rob I mean,

257
00:13:03,720 --> 00:13:07,000
Speaker 2: when you see scenes like this, the words climate change

258
00:13:07,240 --> 00:13:10,000
Speaker 2: immediately come to mind. Is that something that's on your radar?

259
00:13:10,559 --> 00:13:12,719
Speaker 8: Well, we've been in a very blocky pattern so far

260
00:13:12,760 --> 00:13:15,360
Speaker 8: the spring. Nathan just a week ago we were sitting

261
00:13:15,440 --> 00:13:18,000
Speaker 8: underneath high pressure and we had sunshine for eight days

262
00:13:18,000 --> 00:13:21,360
Speaker 8: over the northeastern United States. It's not unusual to see

263
00:13:21,360 --> 00:13:23,679
Speaker 8: the blocks develop in the spring and continue into the

264
00:13:23,720 --> 00:13:26,760
Speaker 8: early summer. What seems to be driving this block is

265
00:13:26,800 --> 00:13:29,480
Speaker 8: the fact that we've got the Greenland ice sheet melting

266
00:13:29,559 --> 00:13:32,360
Speaker 8: more than normal that has been forming a cold pool

267
00:13:32,360 --> 00:13:35,800
Speaker 8: of water south of Greenland. Right now, that cold pool

268
00:13:35,800 --> 00:13:37,800
Speaker 8: of water is closer to the East coast than it's

269
00:13:37,840 --> 00:13:40,080
Speaker 8: been the last couple of springs and summers, and that's

270
00:13:40,120 --> 00:13:43,240
Speaker 8: what's been leading to this persistent pattern of upper level

271
00:13:43,280 --> 00:13:46,960
Speaker 8: low pressure system developing over the Northeastern United States at

272
00:13:46,960 --> 00:13:49,160
Speaker 8: times through the spring and early summer. So that could

273
00:13:49,240 --> 00:13:51,880
Speaker 8: be attributed to the changes that we're seeing with the

274
00:13:51,920 --> 00:13:53,319
Speaker 8: climate in the northern hemisphere.

275
00:13:53,360 --> 00:13:56,120
Speaker 2: Just thirty seconds left, Rob, your advice for people how

276
00:13:56,120 --> 00:13:57,720
Speaker 2: to deal with this smoke for this week?

277
00:13:58,040 --> 00:14:00,040
Speaker 8: Well, the smoke yesterday in New York was on the

278
00:14:00,120 --> 00:14:02,760
Speaker 8: president since the like the seventeen eighties, you'd have to

279
00:14:02,800 --> 00:14:05,560
Speaker 8: go back that far into the climate pass to come

280
00:14:05,640 --> 00:14:08,480
Speaker 8: up with something like this. I would say people with

281
00:14:08,559 --> 00:14:11,040
Speaker 8: respiratory's distress stay inside. Those folks who have to go

282
00:14:11,080 --> 00:14:13,160
Speaker 8: out and ninety five. Mass are probably a good idea

283
00:14:13,160 --> 00:14:15,800
Speaker 8: in the Tristate area. You should be okay in Boston

284
00:14:15,840 --> 00:14:18,640
Speaker 8: and VC today. Just don't do anything strenuous, especially if

285
00:14:18,679 --> 00:14:20,400
Speaker 8: you suffer from respiratory distress.

286
00:14:20,680 --> 00:14:23,960
Speaker 2: Really appreciate this, Rob. Thank you, Bloomberg Meteorologist Rob Carolyn.

287
00:14:24,000 --> 00:14:26,160
Speaker 2: We're going to be checking back with you throughout the

288
00:14:26,160 --> 00:14:29,120
Speaker 2: morning here on Bloomberg Daybreak. But we want to turn

289
00:14:29,200 --> 00:14:32,320
Speaker 2: now from apocalyptic weather to the outlook from one of

290
00:14:32,360 --> 00:14:35,760
Speaker 2: Wall Street's biggest banks. The United States has to be

291
00:14:35,800 --> 00:14:38,520
Speaker 2: a beacon of stability and strength in the world. That's

292
00:14:38,560 --> 00:14:42,119
Speaker 2: the word from Bank of America CEO and Chairman Brian moynihan.

293
00:14:42,240 --> 00:14:44,880
Speaker 2: He's talking about the US economy in the wake of

294
00:14:44,920 --> 00:14:47,480
Speaker 2: a drawn out debt ceiling battle and where he sees

295
00:14:47,600 --> 00:14:50,760
Speaker 2: things going from here. One Hand sat down for a

296
00:14:50,800 --> 00:14:53,800
Speaker 2: wide ranging interview with David weston Man at the Bloomberg

297
00:14:53,840 --> 00:14:56,400
Speaker 2: invest Conference in New York. Let's listen to part of

298
00:14:56,440 --> 00:14:57,160
Speaker 2: that conversation.

299
00:14:57,320 --> 00:14:59,720
Speaker 12: Now, YEO, when I ask people, is this disruptive? And

300
00:14:59,800 --> 00:15:02,720
Speaker 12: not all the experts tell me yes and no and yes.

301
00:15:02,800 --> 00:15:04,440
Speaker 12: In the hand there's a lot of issuance, But no,

302
00:15:04,640 --> 00:15:06,840
Speaker 12: everybody knew it was coming and so it may move

303
00:15:07,200 --> 00:15:10,240
Speaker 12: sort of trading markets around, but fundamentally, the idea of

304
00:15:10,320 --> 00:15:13,560
Speaker 12: the government was gonna run out of money was not

305
00:15:13,600 --> 00:15:15,720
Speaker 12: something people were planning on. So we'll see.

306
00:15:15,880 --> 00:15:17,800
Speaker 18: Does it put any kind of a crip in your

307
00:15:17,840 --> 00:15:20,360
Speaker 18: ability to lend? I mean money has to come from somewhere.

308
00:15:20,800 --> 00:15:22,400
Speaker 12: Well, there's a lot of money sitting at the FED,

309
00:15:22,440 --> 00:15:24,400
Speaker 12: and you have a night repo facility and money funds

310
00:15:24,400 --> 00:15:26,560
Speaker 12: has just been put back, and so the dynamics of

311
00:15:26,560 --> 00:15:28,560
Speaker 12: how this all moves around is interesting. I don't think

312
00:15:29,680 --> 00:15:31,360
Speaker 12: in the worry b it took deposits out of the

313
00:15:31,400 --> 00:15:35,480
Speaker 12: banking system, but you know, there's I'm not sure people

314
00:15:35,480 --> 00:15:36,840
Speaker 12: see that as a big issue. And by the way,

315
00:15:37,400 --> 00:15:39,560
Speaker 12: the Treasury secretary, I think they said today they will

316
00:15:39,560 --> 00:15:42,760
Speaker 12: do this on a non disruptive basis, because they don't.

317
00:15:42,920 --> 00:15:44,640
Speaker 12: They just ran down to thirty nine billion. We're still

318
00:15:44,640 --> 00:15:46,200
Speaker 12: able to pay the bills, so they don't need to

319
00:15:46,200 --> 00:15:47,880
Speaker 12: get there tomorrow, and they'll build it up over time,

320
00:15:47,920 --> 00:15:49,400
Speaker 12: but their goal is to get back in a more

321
00:15:49,440 --> 00:15:53,040
Speaker 12: regular way. The best news about this whole dialogue is

322
00:15:53,240 --> 00:15:55,800
Speaker 12: they've got an agreement that extends a period of time,

323
00:15:55,880 --> 00:15:58,080
Speaker 12: so we shouldn't have to deal with this for a while,

324
00:15:58,120 --> 00:16:00,280
Speaker 12: which is really critical because the United States has to

325
00:16:00,320 --> 00:16:02,720
Speaker 12: be the beacon of stability strength in the world. And

326
00:16:02,800 --> 00:16:05,360
Speaker 12: at times when this discussion is going on and you

327
00:16:05,400 --> 00:16:08,920
Speaker 12: travel the world, everybody gets fixated on it because United

328
00:16:08,960 --> 00:16:11,760
Speaker 12: States is the benchmark of benchmarks, and if it goes

329
00:16:11,840 --> 00:16:14,600
Speaker 12: completely somehow accidentally, it's a real problem. And so they

330
00:16:14,760 --> 00:16:17,600
Speaker 12: get all fixated all this sort of activity in the

331
00:16:17,680 --> 00:16:19,920
Speaker 12: planning for it. What would happen in all our company?

332
00:16:20,200 --> 00:16:22,320
Speaker 12: It just it would just be better if it didn't

333
00:16:22,320 --> 00:16:24,000
Speaker 12: go on. But it's a political process, and.

334
00:16:24,440 --> 00:16:26,600
Speaker 18: There are reports and I don't think it's unexpected anybody

335
00:16:26,600 --> 00:16:29,520
Speaker 18: that there's going to be increase in capital requirements. If

336
00:16:29,560 --> 00:16:32,040
Speaker 18: that goes forward, will it have any effect on your

337
00:16:32,080 --> 00:16:33,040
Speaker 18: ability to make loans?

338
00:16:33,360 --> 00:16:37,320
Speaker 12: There are multiple discussions which could get sort of pushed together.

339
00:16:37,400 --> 00:16:42,360
Speaker 12: There's the standards for the final finalization of BASEL, which

340
00:16:42,400 --> 00:16:45,000
Speaker 12: is this broad set of things that's going on. This

341
00:16:45,040 --> 00:16:47,440
Speaker 12: stress test is going on that we forget about if

342
00:16:47,480 --> 00:16:50,280
Speaker 12: that's going on also, and that result in some surprises

343
00:16:50,320 --> 00:16:53,280
Speaker 12: the industry in terms of capital demands last year. And

344
00:16:53,320 --> 00:16:58,200
Speaker 12: then and then there's the question of applying standards that

345
00:16:58,200 --> 00:17:00,880
Speaker 12: applied to the g said banks the biggest bank broader

346
00:17:00,920 --> 00:17:03,080
Speaker 12: in the platform because the size of some of the banks,

347
00:17:03,120 --> 00:17:05,120
Speaker 12: and so all three of those things get mixed together

348
00:17:05,119 --> 00:17:06,760
Speaker 12: a little bit. But you know, at the end of

349
00:17:06,800 --> 00:17:09,919
Speaker 12: the day, it's a fairly straightforward. If our capital ratios

350
00:17:09,960 --> 00:17:13,280
Speaker 12: go up by one hundred basis points, we basically, you know,

351
00:17:13,720 --> 00:17:17,440
Speaker 12: simply put, you can't make about one hundred fifty million

352
00:17:17,480 --> 00:17:21,359
Speaker 12: dollars a loans. And because people say, well, you have

353
00:17:21,359 --> 00:17:23,080
Speaker 12: more capital, make more loans. But if we took risk

354
00:17:23,160 --> 00:17:25,040
Speaker 12: on that capital, we wouldn't have that capital ratio. So

355
00:17:25,160 --> 00:17:27,720
Speaker 12: it has to be a riskless build. A capital can't

356
00:17:27,720 --> 00:17:29,520
Speaker 12: be out there taking risk. It's the only thing you

357
00:17:29,600 --> 00:17:31,919
Speaker 12: really do is leave in the cash or buy treasury securities.

358
00:17:32,560 --> 00:17:36,040
Speaker 12: And that's not a very productive use of money. So

359
00:17:37,200 --> 00:17:39,960
Speaker 12: and if you had it, and that's the problem. And

360
00:17:40,000 --> 00:17:41,960
Speaker 12: so every time capital goes up, there's a there's a

361
00:17:42,000 --> 00:17:42,960
Speaker 12: countervailing effective.

362
00:17:43,000 --> 00:17:43,919
Speaker 8: It impacts lending.

363
00:17:44,359 --> 00:17:46,600
Speaker 18: So I see, actually a survey was done in this

364
00:17:46,720 --> 00:17:49,440
Speaker 18: room of the likeli overcession in Q one of twenty

365
00:17:49,440 --> 00:17:51,000
Speaker 18: th eighty four, and it looks like, what is that

366
00:17:51,040 --> 00:17:53,359
Speaker 18: sixty five percent of the people agree with your research.

367
00:17:53,400 --> 00:17:56,200
Speaker 18: Isn't that good to know you've got kind of ratification there.

368
00:17:56,480 --> 00:17:59,280
Speaker 12: One thing we always careful if somebody educated me once

369
00:17:59,320 --> 00:18:02,159
Speaker 12: that the four action recession by economists is always like

370
00:18:02,200 --> 00:18:04,879
Speaker 12: fifteen or twenty percent, so and above that means that

371
00:18:04,920 --> 00:18:05,520
Speaker 12: they're convinced.

372
00:18:05,560 --> 00:18:08,679
Speaker 18: So when we talk about costs, what about headcount? I

373
00:18:08,680 --> 00:18:10,240
Speaker 18: know you said that it's not so much you're laying

374
00:18:10,280 --> 00:18:12,440
Speaker 18: officer's not hiring as many as you were a year ago.

375
00:18:12,760 --> 00:18:15,080
Speaker 12: This goes back to economic who and I even talk

376
00:18:15,160 --> 00:18:18,520
Speaker 12: to customers. So last May we hired thirty three thousand people.

377
00:18:18,520 --> 00:18:21,040
Speaker 12: Excuse me, this May we hired you know, six seven hundred.

378
00:18:21,119 --> 00:18:23,640
Speaker 12: And that's all because the turnover rate fell because last

379
00:18:23,680 --> 00:18:25,560
Speaker 12: year were in the middle of great recognation and now

380
00:18:25,560 --> 00:18:29,159
Speaker 12: it's completely different. So we went from twelve percent turnover

381
00:18:29,200 --> 00:18:30,880
Speaker 12: in the company, which is sort of the long term

382
00:18:30,920 --> 00:18:33,360
Speaker 12: level we're at pre pandemic, down to six, up to fifteen,

383
00:18:33,400 --> 00:18:35,919
Speaker 12: and now back down getting close to six. So we

384
00:18:35,960 --> 00:18:37,480
Speaker 12: don't have to hire as many people, yet we keep

385
00:18:37,480 --> 00:18:38,520
Speaker 12: managed to head count down.

386
00:18:38,680 --> 00:18:40,439
Speaker 18: More broadly, do you think the job marker is a

387
00:18:40,440 --> 00:18:42,080
Speaker 18: bit softer than what the FED realizes.

388
00:18:42,400 --> 00:18:45,199
Speaker 12: I think if you talk to employers today in a

389
00:18:45,240 --> 00:18:49,800
Speaker 12: technology spaces there's always specialized things like welders in certain

390
00:18:49,840 --> 00:18:54,159
Speaker 12: businesses and high and manufacturing help explosion that was just

391
00:18:54,200 --> 00:18:58,879
Speaker 12: having been out there. But in general it's much less

392
00:18:59,080 --> 00:19:01,479
Speaker 12: tight than it was in the spot market and that's

393
00:19:01,520 --> 00:19:03,719
Speaker 12: why the curt rates going down. All that stuff. You

394
00:19:03,800 --> 00:19:05,720
Speaker 12: see it in the amount of hires and you know,

395
00:19:05,760 --> 00:19:09,360
Speaker 12: so job postings are still high. I'm not sure CEOs

396
00:19:09,359 --> 00:19:11,360
Speaker 12: that I talked to are pushing people to fill those

397
00:19:11,359 --> 00:19:13,440
Speaker 12: as much as film when you have to, and that

398
00:19:14,359 --> 00:19:17,120
Speaker 12: has a dampening effect on the labor market that won't

399
00:19:17,119 --> 00:19:20,440
Speaker 12: show up any agorams. Employment still at you know, three

400
00:19:20,480 --> 00:19:22,959
Speaker 12: point seven percent of employment is still very strong. And

401
00:19:23,000 --> 00:19:26,160
Speaker 12: so the big debate when if you want to drive

402
00:19:26,160 --> 00:19:27,639
Speaker 12: your econ is crazy, say how can you have an

403
00:19:27,680 --> 00:19:30,920
Speaker 12: unemployment list recession? And you know, they can't quite get there,

404
00:19:30,920 --> 00:19:32,920
Speaker 12: and that's kind of the interesting question. And so even

405
00:19:32,960 --> 00:19:37,399
Speaker 12: the highest predictors of unemployment don't even get the five percent,

406
00:19:37,560 --> 00:19:39,320
Speaker 12: which is hard to square.

407
00:19:40,680 --> 00:19:43,600
Speaker 6: This is Bloomberg day Break Today, your morning brief on

408
00:19:43,680 --> 00:19:47,359
Speaker 6: the stories making news from Wall Street to Washington and beyond.

409
00:19:47,480 --> 00:19:50,240
Speaker 1: Look for us on your podcast feed at six am

410
00:19:50,320 --> 00:19:54,000
Speaker 1: Eastern each morning, on Apple, Spotify and anywhere else you

411
00:19:54,040 --> 00:19:55,200
Speaker 1: get your podcasts.

412
00:19:55,359 --> 00:19:58,040
Speaker 6: You can also listen live each morning starting at five

413
00:19:58,080 --> 00:20:00,680
Speaker 6: am Wall Street Time, on Bloomberg eleven three to zero

414
00:20:00,720 --> 00:20:04,200
Speaker 6: in New York, Bloomberg ninety nine one in Washington, Bloomberg

415
00:20:04,200 --> 00:20:07,240
Speaker 6: one oh sixty one in Boston, and Bloomberg ninety sixty

416
00:20:07,359 --> 00:20:08,320
Speaker 6: in San Francisco.

417
00:20:08,680 --> 00:20:11,840
Speaker 1: Our flagship New York station is also available on your

418
00:20:11,880 --> 00:20:16,960
Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

419
00:20:17,000 --> 00:20:19,920
Speaker 6: Plus listen coast to coast on the Bloomberg Business app,

420
00:20:20,000 --> 00:20:23,840
Speaker 6: serious XM Channel one nineteen, the iHeartRadio app, and on

421
00:20:23,920 --> 00:20:26,400
Speaker 6: Bloomberg dot Com. I'm Nathan Hager.

422
00:20:26,200 --> 00:20:27,400
Speaker 14: And I'm Karen Moscow.

423
00:20:27,600 --> 00:20:30,359
Speaker 1: Join us again tomorrow morning for all the news you

424
00:20:30,480 --> 00:20:33,680
Speaker 1: need to start your day right here on Bloomberg Daybreak