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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 1: We begin in Washington, where Republican Congressman Matt Gates has

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Speaker 1: officially moved to topple House Speaker Kevin McCarthy. He has

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Speaker 1: filed what's known as a motion to vacate.

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Speaker 3: The Gentleman will state the form of his resolution.

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Speaker 4: Declaring the office of Speaker of the House of Representatives

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Speaker 4: to be vacant. Resolved that the Office of Speaker of

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Speaker 4: the House of Representatives is hereby declared to be vacant.

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Speaker 1: Congressman Gates cited McCarthy's bipartisan deal to avertic government shut

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Speaker 1: down for making this move. Just five ultra conservatives could

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Speaker 1: oust McCarthy if every Democrat joins them. McCarthy has to

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Speaker 1: call a vote on Gates's motion within two legislative days,

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Speaker 1: though the Speaker or his allies could seek a vote

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Speaker 1: as soon as today to try to block the maneuver.

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Speaker 2: Well Nathan. At least one conservative Republican, Jim Jordan, tells

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Speaker 2: us he does not support the move to get rid

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Speaker 2: of the speaker.

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Speaker 5: I do not support that. I think I think Kevin

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Speaker 5: McCarthy's done a good job. I mean, we told the

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Speaker 5: America people that we would pass legislation to get rid

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Speaker 5: of the eighty seven thousand RS agents. We told the

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Speaker 5: American people we'd pass the Printal Bill, rights we did that.

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Speaker 5: We told the American people we would pass legislation to

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Speaker 5: deal with the energy problem. We told the American people

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Speaker 5: we would pass the toughest border security security immigration enforcement

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Speaker 5: legislation in history, and we did that.

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Speaker 2: Ohio Republic and Jim Jordan made the comments in an

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Speaker 2: interview on Bloomberg's Balance of Power. Catch the show weekdays

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Speaker 2: at five pm Eastern on Bloomberg Television and get the

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Speaker 2: full conversation with Congressman Jordan on the Bloomberg Talks podcast feed.

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Speaker 1: Staying in Washington, Karen, President Biden's re election campaign has

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Speaker 1: launched a new ad.

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Speaker 6: That peace of mind. He's determined to get it back

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Speaker 6: because of where he's from and who he is.

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Speaker 1: I'm Joe Biden, and I approved this message. The Biden

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Speaker 1: campaign helps to reverse the president's poor marks on the

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Speaker 1: economy the head of the twenty twenty four election. The

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Speaker 1: minute long Spots highlights the president's efforts to lower consumer

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Speaker 1: costs well.

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Speaker 2: On the either side of the eye, Nathan Donald Trump's

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Speaker 2: twenty twenty four campaign is colliding with his legal troubles now.

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Speaker 2: The former president appeared in the New York City courtroom

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Speaker 2: for opening statements in his civil fraud trial, and he

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Speaker 2: wasted little time railing against it.

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Speaker 6: There's no here, There's no victim.

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Speaker 7: The banks aren't a victim.

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Speaker 2: The insurance companies are a victim.

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Speaker 5: Everybody gets paid.

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Speaker 7: It's a terrible, terrible thing.

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Speaker 2: This was for politics, and the former president said the

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Speaker 2: judge in the case, Arthur and Goren, should be disbarred.

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Speaker 2: Prosecutors say that Trump organization inflated his asset values to

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Speaker 2: get better terms from banks and insurance companies and to

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Speaker 2: get Trump higher on the Forbes Billionaire's List. New York

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Speaker 2: Attorney General Letitia James says she wants to send a message, no.

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Speaker 8: Matter how powerful you are, no matter how much money

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Speaker 8: you think you may have, no one is above the law.

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Speaker 2: The case from Letitia James is scheduled to last almost

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Speaker 2: three months, and former President Trump is expected to testify

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Speaker 2: late in the trial.

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Speaker 1: On other high profile trial begins later today in New York.

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Speaker 1: Karen former FTX CEO Sam Bankman Freed. He is accused

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Speaker 1: of orchestrating a multi billion dollar fraud. We get more

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Speaker 1: from Bloomberg's Kaylee Lines.

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Speaker 8: Bankmin Freed is facing seven counts of fraud and money laundry.

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Speaker 8: Prosecutors alleged that the collapse of his crypto exchange FTX

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Speaker 8: was one of the biggest financial frauds in American history,

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Speaker 8: and we'll argue the scheme allowed the thirty one year

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Speaker 8: old to spend customer funds on real estate, high risk

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Speaker 8: trading investments, and political donations. Bankman Freed has pleaded not

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Speaker 8: guilty to all the charges and has said he never

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Speaker 8: knowingly committed fraud. If convicted and given maximum sentences, he

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Speaker 8: could spend the rest of his life in prison. The

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Speaker 8: trial in federal court in Manhattan is expected to take

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Speaker 8: up to six weeks. Kaylee Lines, Bloomberg Radio.

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Speaker 2: All right, Kayley, thanks, We'll turning to the markets now.

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Speaker 2: Stocks are under pressure once again. On hawkish FED Talk,

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Speaker 2: several officials bolstered speculation that rates are going higher to

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Speaker 2: counter inflation. And here's Cleveland A FED President Lorettamester.

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Speaker 9: At this point, I suspect we may well need to

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Speaker 9: raise the Fed Fund rate once more this year and

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Speaker 9: then hold it there for some time, relate more information

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Speaker 9: on economic developments, and assess the effects of the tightening

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Speaker 9: at financial conditions that has already occurred.

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Speaker 2: Cleveland Fed President Loretta Mester does not vote on monetary policy.

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Speaker 2: This year, her colleague FMC hawk Michelle Bowman reiterated her

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Speaker 2: call for multiple hikes.

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Speaker 1: And it's not just Fed officials talking rate hikes Karen.

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Speaker 1: Former Bank of England governor Mark Carney says he expects

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Speaker 1: the FED to raise rates again before the end of

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Speaker 1: this year.

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Speaker 10: If I have to choose a camp, by being the

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Speaker 10: camp of I expect that there will be a bit

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Speaker 10: more tightening by the Fed, so probably an additional rate

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Speaker 10: increase this year.

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Speaker 1: Mark Carney made the comments on Bloomberg Television's David Rubinstein

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Speaker 1: Show Peer to Peer Conversations. Carne now chairs Brookfield Asset Management.

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Speaker 1: He's also been selected to service chair of Bloomberg LP's

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Speaker 1: Board of directors.

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Speaker 2: Let's turn to technology now, Nathan, because that's what Jamie

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Speaker 2: Diamond's talking about. In an exclusive interview with Bloomberg, the

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Speaker 2: JP Morgan Chase CEO said thousands of his employees are

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Speaker 2: already using artificial intelligence. He says, AI will make your

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Speaker 2: mad improvements and workers' quality of life. Even if it

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Speaker 2: eliminates some.

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Speaker 4: Jobs, technologies always replace jobs. Your children will live to

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Speaker 4: one hundred and not have cancer because of technology, and

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Speaker 4: literally they'll probably be working three and a half days

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Speaker 4: a week. So technology has done unbelievable things from mankind.

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Speaker 4: You know, planes crash, pharmacuies get misused. There are negatives.

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Speaker 4: This one the biggest negative of my view, is AI

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Speaker 4: being used by bad people to do bad things.

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Speaker 2: And you can hear more of our conversation with JP

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Speaker 2: Morgan Chase CEO Jamie Diamond on the Bloomberg Talks podcast feed.

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Speaker 2: Download it wherever you get your podcasts. And it's time

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Speaker 2: now for a look at some of the other stories

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Speaker 2: making news around the world. For that, we're joined by

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Speaker 2: Bloomberg's John Tucker. John, Good morning, and.

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Speaker 3: Good morning, Karen. The bill to avoid the weekend government

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Speaker 3: shutdown left out six billion dollars in funding for Ukraine,

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Speaker 3: and as Bloomberg's At Baxter tells us, President Biden now

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Speaker 3: has some work to do with US allies.

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Speaker 11: The President says he wants wants to assure the allies

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Speaker 11: that the US support will continue. You cannot, under any

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Speaker 11: circumstances allow America's support for Ukraine to be interrupted. Too

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Speaker 11: many lives of stake, too many children, too many people.

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Speaker 11: A call with Allies could happen as early as today,

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Speaker 11: and the White House says it will announce an additional

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Speaker 11: aid package for Ukraine soon. I'm at Baxter Bloomberg Radio.

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Speaker 3: A buying partisan group of US senators hopes to meet

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Speaker 3: President Shijingping in China next week. Senate Majority Leader Jack

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Speaker 3: Schumer and his Republican colleague, Senator Mike Crapo will raise

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Speaker 3: the issue of Micron Technology's ability to do business in

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Speaker 3: that country during their trip. The US company faces an

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Speaker 3: ongoing probe by the Chinese government's Cybersecurity Administration. President Biden's

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Speaker 3: son Hunter will be in a federal courtroom in Wilmington, Delaware,

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Speaker 3: today to face charges that he violated federal gun laws

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Speaker 3: in twenty eighteen. The President's son is expected to enter

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Speaker 3: it not guilty plea to three felony accounts related to

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Speaker 3: his twenty eighteen purchase of a handgun at a time

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Speaker 3: he was admittedly addicted to drugs. The nine year old

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Speaker 3: girl who disappeared during a family camping trip in upstate

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Speaker 3: New York was found safe on Monday, New York Governor

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Speaker 3: Kathy Hokel saying a fingerprint found on a ransom note

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Speaker 3: that was left in a mailbox at the family home

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Speaker 3: led authorities to the suspect.

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Speaker 12: After some resistance, the suspect was taken into custody, and

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Speaker 12: immediately the little girl was found in the cabinet cupboard well.

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Speaker 3: The girl appeared physically unharmed when discovered. NBC Sunday Night

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Speaker 3: Football drew an audience of twenty seven million viewers, up

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Speaker 3: twenty two percent from a year ago. As the rumored

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Speaker 3: relationship between Taylor Swift and Kansas City chiefs tightening, Travis

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Speaker 3: Kelcey pulled in additional fans that included two million more women.

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

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Speaker 3: than twenty seven hundred journalist and an analysts in more

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Speaker 3: than one hundred twenty countries. I'm John Tucker, and this

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Speaker 3: is Bloomberg.

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Speaker 2: Karen all right, Johns. We bring you news throughout the

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Speaker 2: day here on the Bloomberg Radio. But now you can

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Speaker 2: get the latest news on demand whenever you want it.

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Speaker 2: Subscribe to Bloomberg News Now to get the latest headlines

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Speaker 2: at the click of a button. Get informed on your schedule.

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Speaker 2: You can listen and subscribe to Bloomberg News Now on

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Speaker 2: the Bloomberg Business app, Bloomberg dot com, plus apples, Spotify,

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Speaker 2: and anywhere else you get your podcasts. Time now for

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Speaker 2: the Bloomberg Sports Update with John stash Hour John kre In.

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Speaker 7: The night after there was Sunday Night football at MetLife

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Speaker 7: Stay in New Jersey, there was Monday Night football, same stadium,

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Speaker 7: Giants and Seahawks. Seattle had fourteen to three at halftime.

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Speaker 3: We've bent.

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Speaker 7: The Giants have been outscored in their four first halfs

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Speaker 7: this season, seventy seven to nine. They did have a

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Speaker 7: drive going third quarter down fourteen to three. They had

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Speaker 7: a fourth and one deep in Seattle territory.

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Speaker 2: Seattle looks like they want to rush four.

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Speaker 7: Yeah, they do.

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Speaker 6: Jones is going to throw throws near.

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Speaker 13: Sid full Click up twittero cuts her time count the sideline.

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Speaker 13: Joe Chase are gonna be touchback inside pichaf Walckers so

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Speaker 13: By Chase, twinerspood part time twenty to see ten Son

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Speaker 13: Pea in Holy Jeffish Winners Food win a five one

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Speaker 13: half with the interception for a touchdown.

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Speaker 7: Seahawks Radio. They wanted twenty four to three to go

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Speaker 7: to three and one on the year. The Giants are

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Speaker 7: one and three. Baseball postseason begins today four games, starting

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Speaker 7: with Texas at Tampa Bay. Those were the two top

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Speaker 7: two offensive teams in the American League this season, and

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Speaker 7: then it's another American League game with Toronto in Minnesota.

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Speaker 7: The Twins have lost their last eighteen postseason games. National

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Speaker 7: League begins with Arizona in Milwaukee. It's Miami at Philadelphia,

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Speaker 7: the Phillies, where a wildcard team last year ended up

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Speaker 7: playing in the World Series. All of these series are

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Speaker 7: best of three, and the team that is at home

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Speaker 7: gets to stay at home throughout the series. John Stashiewa

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Speaker 7: Bloomberg Sports.

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Speaker 6: From coast to coast, from New York to San Francisco,

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Speaker 6: Boston to Washington, DC, nationwide on SIRISXAM, the Bloomberg Business app,

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Speaker 6: and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning,

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Speaker 6: I'm Nathan Hager. Will it be better work through technology? Well,

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Speaker 6: Jamie diamond says artificial intelligence is already being used by

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Speaker 6: thousands of his employees, and it's likely to make dramatic

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Speaker 6: improvements in workers' quality of life, even if it does

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Speaker 6: eliminate some jobs. The CEO and chairman of JP Morgan

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Speaker 6: Chasing Company spoke exclusively with Bloomberg's Emily Chang on the

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Speaker 6: sidelines of the Tech Stars Leadership Forum in London, and

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Speaker 6: diamond says AI is critical to JP Morgan's future success.

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Speaker 4: People have to take a deep breath. Okay, technologies always

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Speaker 4: replaced jobs. Your children will live to one hundred and

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Speaker 4: not have cancer because of technology, and literally they'll probably

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Speaker 4: be working three and a half days a week. So

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Speaker 4: technology has done unbelievable things from mankind. But you know,

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Speaker 4: planes crash, pharmaceutals get misused. There are negatives. This is

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Speaker 4: one of the biggest negative of my view, is AI

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Speaker 4: being used by bad people to do bad things. Think

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Speaker 4: of cyber you know, Hemmy Kissinger talks about warfare, but

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Speaker 4: you know the fact and I do think you know,

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Speaker 4: eventually have legal guardrails around. It's kind of hard to

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Speaker 4: do because it's new, but it will add a huge value.

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Speaker 4: And you know, for JP Morgan, if it replaces jobs,

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Speaker 4: and we hope to redeploy people like at First Republic.

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Speaker 4: You know, we've offered jobs to like ninety percent of

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Speaker 4: the people they accepted. But we also you know, we've

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Speaker 4: told them as we some of those jobs are transitory.

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Speaker 4: But we hire thirty thousand people a year, so we

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Speaker 4: expect to be able to get them a job somewhere

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Speaker 4: local and a different branch or a different function if

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Speaker 4: we can do that. So, and we'll be doing that

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Speaker 4: with any dislocation that takes place as a result.

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Speaker 8: AI, I want the Jamie Dimon forecast on the broader economy.

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Speaker 1: First it was hurricanes and then it was storm clouds

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Speaker 1: in your annual letter, what's the weather now?

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Speaker 4: Recept you guys have consistently got this wrong. Okay, I'm

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Speaker 4: not giving a forecast. I'm trying to I blame myself.

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Speaker 5: Okay.

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Speaker 4: The US has been very strong for a while, no surprise.

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Speaker 4: Five trillion dollars was pumped in fiscally, you know, three

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Speaker 4: trillion or four trillion of QE and now that's being reversed.

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Speaker 4: The consumer is still in good shape. There's still spending money.

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Speaker 4: They's still have more money than pre COVID. It's spending

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Speaker 4: down Home prize is gone for fifteen years. ASCID prize

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Speaker 4: are gone for fifteen years, they're in pretty good shape.

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Speaker 4: And then the people are talking about deterioration. Credit is

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Speaker 4: not to tearing and credit card all time highs, not

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Speaker 4: inflation adjusted or GDP adjusted or income adjusted, And yeah,

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Speaker 4: it's deterrans We think there's normalizing and corporate credit has

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Speaker 4: been quite good. So you have a strong economy. That's

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Speaker 4: the here and now, and all the data is a

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Speaker 4: little distorted because of COVID and things like that. When

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Speaker 4: you ask the question about a forecast, and I don't

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Speaker 4: make forecasts, I look out there and say, what are

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Speaker 4: the range of outcomes.

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Speaker 12: From hurricane to storm clouds?

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Speaker 4: No, this is I put it several storm clouds, I said.

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Speaker 4: When I said hurricane, I was correcting, said the st

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Speaker 4: storm clouds dissipate. I said, no, that one may be

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Speaker 4: a hurricane. We don't know what it is. Here's what

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Speaker 4: they are. There are two of them that are different

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Speaker 4: than other things. So we always have you know, I

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Speaker 4: don't worry about the weather, and I honestly, I spend

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Speaker 4: a lot of time guessing about the economy, and that

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Speaker 4: to me is the sunnier rainier. I don't worry about that.

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Speaker 4: We run the company to serve clients, through thick and thin.

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Speaker 4: That's what we do to serve governments, to satisfy our regulators.

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Speaker 4: And that's all weather. But there are two things which

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Speaker 4: are extraordinary today which may have different outcomes. And think

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Speaker 4: of them as storm clouds. We don't know if they're

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Speaker 4: gonna hit, when they're gonna hit, what they're gonna do, Okay,

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Speaker 4: So I'm not predicting that. I'll tell you what I

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Speaker 4: worry about. So one is the fiscal money being spent

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Speaker 4: is so big, largest in peacetime ever America and kind

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Speaker 4: of around the world, with already very high deficits and

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Speaker 4: QT we've never had, so I know some people think

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Speaker 4: QT will be uneventful. I'm not so sure. At a minimum,

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Speaker 4: I expect volatile market it's and then you've got and

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Speaker 4: then all the long term fiscal things are kind of inflationary.

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Speaker 4: You know, oil prices, certain commodity prices, the green economy,

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Speaker 4: you know, the restruction of trade, you name it. I

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Speaker 4: see it's ed interflation, not subtracting inflation. So I don't

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Speaker 4: think inflationary will be that, you know, keep on coming down.

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Speaker 4: It may not, and therefore rates may go higher. But

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Speaker 4: the biggest dorm claus. Geopolitical, it's Ukraine, the humanitarian crisis.

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Speaker 4: You know, it's a war not far from here. It's

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Speaker 4: along six hundred miles, five hundred thousand people killed. It's

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Speaker 4: nuclear blackmail. It's going to affect old global relationships in

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Speaker 4: America and China trade alliances. We don't know how it's

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Speaker 4: going to start either. So I just put those two things.

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Speaker 4: Is I keep a close eye on. And then how

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Speaker 4: it affects the economy is different. And what I've been

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Speaker 4: talking about that is I just tell you be prepared

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Speaker 4: for higher rates and slower seven percent?

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Speaker 1: Are we really going there?

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Speaker 4: And I don't know when I said five percent, they

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Speaker 4: said are we going there? Yes, it's possible, you know,

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Speaker 4: so I when I talk to my board, I say,

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Speaker 4: yeah it can it go to seven percent? The answers, yes,

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Speaker 4: are there factors that would drive it, you know, higher

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Speaker 4: than you know where it is today? You know four

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Speaker 4: four six or four s omptob about ten year bond? Now, Yes,

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Speaker 4: is supply and demand could push I yes, I'm just

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Speaker 4: saying be prepared for it. And then the worst case

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Speaker 4: is stacklation. You know, higher rates because you have a

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Speaker 4: booming economy and there's a lot of competition for capital

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Speaker 4: is not the same thing as dack clation.

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