April 18, 2024 • 17 mins
On today's podcast:
1) Biden Calls China ‘Xenophobic,’ Ramping Up Campaign Rhetoric
2) TikTok Faces Washington Reckoning as Divest-or-Ban Vote Nears
3) Mester Says Fed Can Hold Rates Steady, Not In a Hurry to Cut
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:11):
Good morning.
Speaker 1 (00:11):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today, Karen.
Speaker 3 (00:16):
The rise in futures comes as the S and P
five hundred is coming off its biggest losing streak since January.
Stocks fell for a fourth straight day. They're now down
more than four percent from their all time high. The
declines come as more Federal Reserve officials urge patients on
rate cuts. FED Governor Michelle Bowman says the battle against
inflation continues.
Speaker 4 (00:37):
What we've seen over the past first few months of
twenty twenty four, anyway, is that progress on inflation has slowed,
and I expect maybe it's even stalled at this point.
Speaker 3 (00:50):
FED Governor Michelle Bowman's comments were echoed by Cleveland FED
President Lorettamester at a separate event. She said the Central
Bank should not be in a hurry to cut well.
Speaker 1 (00:59):
Nathan One FED critics as policymakers should begin the rate
cutting process. UBS Global Wealth Management chief economist Paul Donovan
says the FED should focus on the positive news regarding
its preferred inflation gauge, the PCEE deflator.
Speaker 5 (01:13):
What we do not want in this environment is rising
real interest rates. Because the economy is slowing. You've got
the highest interest rates in twenty three years, You've got
a fiscal drag on growth. The economy is slowing down.
You don't want to exacipate that with rising retial rates.
So I think the message needs to be follow the
PC de plate to lower ubs.
Speaker 1 (01:35):
Global Wealth Management chief economist Paul Donovan, speaking yesterday on
Bloomberg surveillance, traders now see just one to two rate
cuts this year. That's a far cry from the roughly
six they expected at the start of twenty twenty four.
Speaker 3 (01:48):
Back in New York, Karen jury selection resumes today in
the hush money trial of Donald Trump. Seven jurors have
been picked so far in the first ever criminal case
against a former president.
Speaker 1 (01:58):
Meanwhile, Nathan Trump is facing more pressure from economists in
his circle to embrace a flat tax rate. While the
former president has not endorsed a flat tax, he has
called for more middle class tax cuts. Weget details now
from Bloomberg's Amy Morris in Washington.
Speaker 6 (02:14):
Steve Forbes, former White House economic advisor Larry Cudlow, and
economists Steven Moore and author Laffer are not official advisors
to the Trump campaign, but they are pushing for their
preferred economic policies ahead of a potential second term. Forbes
is pushing for a flat seventeen percent tax rate for
all income brackets with exemptions. Cudlow supports renewal of Trump's
(02:36):
twenty seventeen tax cuts, but Laffer says he would support
lowering the corporate rate even more now. Donald Trump has
told allies he wants to keep that twenty one percent
corporate rate in place and instead extend individual cuts to
avoid alienating working class voters. In Washington, Amy Moore as
Bloomberg Radio.
Speaker 3 (02:54):
All right, Amy, thank you. We're learning Donald Trump's campaigns
telling other Republicans to pay up if they use the
former president's name, image, or likeness in their fundraising solicitations.
In a campaign memo obtained by Bloomberg News, all candidates
and committees who use Trump in their fundraising appeals must
give a minimum five percent of the funds they raise
(03:14):
to the Trump Political Operation.
Speaker 1 (03:17):
Well Nathan, Donald Trump's opponent Joe Biden, is on the
campaign trail. Speaking of Pittsburgh, the president vowed to keep
United States Steel American owned.
Speaker 7 (03:25):
US still has been an iconic American company for more
than a century, and it should remain a totally American,
American owned, American operated by American union steel workers, the
best in the world. And that's going to happen, I
promise you.
Speaker 1 (03:43):
In Japan's Nippon Steele plans to acquire US Steel for
more than fourteen billion dollars.
Speaker 3 (03:48):
And President Biden's talking tougher about China. Karen is. He
highlights the challenges to its economy.
Speaker 7 (03:54):
They've got a population that is more people in retirement
than working. They're not they're not important to any They're
not bringing there's xenophobic, nobody coming else coming in. They've
got real problems. I'm not looking for a fight with China.
I'm looking for competition, but fair competition.
Speaker 3 (04:10):
To the President's latest letter, it comes two weeks after
his latest phone call with Chinese President Shi Jinping. The
Chinese economy did grow faster than expected in the first quarter,
but there are still questions about the strength of that recovery.
Speaker 1 (04:22):
Well, Nathan, more pressure could be coming for China from Congress.
The House is on a fast track to approve the
bill aimed at forcing a sale of TikTok. Speaker Mike
Johnson plans to include it in the aid package for
Ukraine in Israel that he's teed up for votes on Saturday.
Two Republicans have threatened to try to oust Johnson over
foreign aid, but the Speaker is undaunted.
Speaker 8 (04:42):
My philosophy is you do the right thing and you
let the chips fall where they may. I don't if
I operated out of fear over emotion to vacate, I
would never be able to do my job.
Speaker 1 (04:52):
Speaker Johnson has already passed the TikTok bill in the House.
Attaching it to the foreign aid bill could force the
Senate to accept it as a condition for supporting Israel
and Ukraine.
Speaker 3 (05:02):
Well Karen Senate Democrats have not accepted impeachment articles against
Homeland Security Secretary Alejandro Majorcis. They have tossed the charges.
Bloomberg's Dan Schwartzman has.
Speaker 9 (05:12):
That Democrats in the Senate voted to dismiss both articles
of impeachment against Homeland Security Secretary Alejandro Majorkis. The vote
was mostly along party lines, except for Alaska Republican Lisa
Rokowski voting president on a measure to toss the first
impeachment article. Republicans have accused Maiorkis of refusing to enforce
immigration laws. The secretary is the first sitting cabinet member
(05:34):
in US history to be impeached. Democrats say the measure
was unconstitutional because it didn't meet the constitutional bar of
a high crime or misdemeanor. Republicans accused Democrats of failing
to take the charges against Majorcis seriously and that the
American people deserve to hear the evidence. Dan Schwartzman, Bloomberg Radio.
Speaker 1 (05:52):
All right, Dan, thanks now back to the Marcus. Keeping
an eye on chip stocks this morning. Taiwan Semiconductor Manufacturing
expects revenue to rise as much is thirty percent this quarter.
The better than projected outlook follows its first profit rise
in a year after strong AI demand revived growth at
the world's biggest contract chip maker. TSMC is the main
chip maker for Nvidia and Apple, and.
Speaker 3 (06:14):
Shares of Micron Technology are on the rise as well, Karen.
They're up two and a half percent in early trading.
The largest US maker of computer memory chips, this poised
to get six point one million dollars billion dollars I
should say billion with a B in grants from the
Commerce Department to help pay for domestic factory projects. This
is all part of an effort to bring semiconductor production
back to US soil.
Speaker 1 (06:38):
And it's time now for a look at some of
the other stories making news in New York and around
the world. And for that we're joined by Bloomberg's John Tucker. John,
Good morning and.
Speaker 8 (06:45):
Good morning, Karen. Republicans have VOP held the Arizona abortion ban.
Let's get more on that story this morning from Bloomberg
Steve Podisc.
Speaker 10 (06:53):
Republicans in the Arizona State House Block two attempts Wednesday
to repeal the state's one hundred and sixty year old
near total ban on abortion, despite pressure on the GOP,
including from former President Donald Trump, to change course on
the hot button issue. But later in the day, two
Senate Republicans joined with Democrats and up to create a
majority to move forward with their version of a repeal.
(07:15):
A final vote on the bill could be weeks away.
If the Senate does ultimately vote to repeal the ban,
the measure would go back to the House, where it
would still face.
Speaker 8 (07:24):
A difficult path. Steve Podisk Bloomberg Radio two hearings on
Capitol Hill focused on Boeing. In the first, a report
exposed holes in the safety culture at the company. Three
witnesses backed it up with testimony for senators. The second
hearing featured a former Boeing engineer and saying the airplane
manufacture is not up to par. Senator Richard bluminthalf Connecticut
(07:45):
had this message for the flying public.
Speaker 11 (07:47):
The aircraft as a whole may be safe insofar as
people getting on planes shouldn't panic, but they need to
be made fully safe.
Speaker 8 (08:00):
Speaking to ABC, President Biden will be endorsed by more
than a dozen members of the Kennedy family at an
event today in Philadelphia as he looks to blunt the
outsider presidential bid of Robert F. Kennedy Junior. Biden will
be introduced by Kerry Kennedy, the sister of the third
party candidate, and joined by fellow siblings. Poll suggests that
Robert F. Kennedy Junior, whose promoted conspiracy theories, could place
(08:24):
spoiler as mister Biden seeks to win reelection. And Google
fired twenty eight employees after they were involved in protests
against Project Nimbus, a one point two billion dollar joint
contract with Amazon to provide the Israeli government with AI
and cloud services. The protests took place across Google offices
in New York City, Seattle, and Sunnyvale, California. Global News
(08:46):
twenty four hours a day and whenever you wanted with
Bloomberg News. Now, I'm John Tucker, and VC is Bloomberg
Karen and Nathan.
Speaker 1 (08:52):
All right, John, thank you time now for the Bloomberg
Sports Update with John stash Hour. John, Good morning, Good.
Speaker 12 (09:02):
Morning, Karen's looking like the Knicks are going to continue
their long history of playoff series with Miami. The Heat
had a fourteen points second half lete in Philadelphia. The
fans were booing the Sixers. Philly came alive rally to
win one oh five to one to oh four. Joe
lmb twenty three points, fifteen rebounds, Nick patuone with twenty
off the bench. Tyrese Maxi scored nineteen. Was then asked
(09:22):
about now facing the Knicks.
Speaker 13 (09:24):
They're extremely grinding team. They play hard, they're physical, and
they're tough, and that's their identity. So for us to
go in there and try to get w's and try
to win this series, we have to mess that and
not just matchup. But we have to overcome that and
be better than that in n be extremely physical as well.
Speaker 12 (09:39):
Game one Saturday at the Garden, the Heat, who came
out of the play in the play in last year's
NBA Finals, now go home to play Chicago tomorrow. The
Bulls beat Atlanta one thirty one, one sixteen. Kobe White
scored forty two points. The winner of that game tomorrow
will then take on the Celtics and the NFL playoff
matchups set in the East, not yet in the West.
Although Dallas did win the winch the West one seed
(10:01):
the playoff found Islanders finished the regular season with another win,
five to four over Pittsburgh in Toronto. Looked like another
quiet game for Yankee Bats. They trailed the Blue Jays
four to one eighth inning, looked like they'd come home
with a four game losing the Street, but Juan Soto
homeward in the eighth. Jack Carlos Stands on the ninth
Yanks scored again, and then with the game tied, Aaron
Judge a two run single, Yanks won six to four.
(10:22):
Judge with a hit, raising his average till one eighty three.
A couple of x Yanks helped the Mets finish a
home sweep of the Pirates. Find the pitching of Luis Savarino,
A homer by Harrison Vader, The Mets one ninety one,
John Stashedward, Bloomberg Sports, Karen Nathan.
Speaker 1 (10:34):
All Right, John Thanks SMP futures have a quarter percent
or twelve points down, futures up, a tenth of a
percent or forty points NASDAK futures at four tenths of
percent or seventy points tenure Treasury yields four point five
seven percent.
Speaker 11 (10:48):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
Speaker 3 (10:57):
This is Bloomberg day Break Morning. I'm Nathan Hager, JP,
Morgan Chase CEO. Jamie Diamond has made no secret that
his firm is all in on artificial intelligence. In fact,
this month, he devoted a pretty significant chunk of his
annual shareholder letter to the importance of the technology for
the Wall Street Giants business and for society at large.
(11:17):
In the premiere episode of the second season of The Circuit,
Jamie Diamond joined Bloomberg Original's host and executive producer Emily
Chang to discuss the opportunity offered by AI. Before that, though,
Emily asked Jamie Diamond, if JP Morgan, the world's largest
publicly listed bank, is now too large, let's go to
part of their conversation.
Speaker 14 (11:38):
Now.
Speaker 15 (11:38):
I think the question is what works for consumers and
industries and stuff like that. So you know, if you
want to build a Boeing aircraft, you have to be big.
You can pretend that you don't if you want to
do what JP Morgan does. We move ten trillion dollars
of money around the world every day. We bank some
of these companies in thirty countries. We bank trees, We
(12:00):
bank the World Bank, the IMF, we bank the United
States government. You have to be big. You can't do
those things and be small. I applaud the small banks.
We're the biggest bank, community banks and regional banks and
stuff like that.
Speaker 14 (12:13):
And I understand, you know, some of the stress around it.
We're trying to help. So it's not either or so.
Speaker 16 (12:18):
Going a little bigger picture. Now, you run the biggest
bank in the world, you have our money, You've got
world leaders on speed dial. That's a lot of power.
How do you decide when and how to wield that power.
Speaker 14 (12:30):
Yeah, I'm not sure.
Speaker 15 (12:31):
I have a lot of people at speed, doll you
say all that, Sometimes I think I'm just riding the
Bronco and hanging out for deal life. You know, I
love what I do. I try to talk that around.
I try to keep my mind open. One of the
benefits from traveling the world. I just in Mumbai, in
Switzerland and seeing clients. You learn a lot and you
try to make sure you're that you're doing the proper
(12:52):
assessment of the world, that you're looking at the options.
Speaker 14 (12:56):
You're not like just saying we're going to do this.
Speaker 15 (12:57):
I look as part of our job to try to
have countries to help country do the best they can
for their citizens.
Speaker 14 (13:03):
So we bank countries.
Speaker 15 (13:04):
We also advise them on skills and trade and economics.
You look at our research, it's a lot around how's
an economy run. So when you go to like when
I got back from Mumbai, we research one hundred and
fifty companies now or something like that. So we're educating
the world about those companies. We're educating the world but
the Indian economy. As we do that, we indicate also
educate the Indians about what works in their economy and
what doesn't work, and those are important things to lift
(13:27):
up society.
Speaker 16 (13:28):
You've got this reputation as a sort of white Night
for the economy. Do you ever feel pressure to come
in with the save?
Speaker 15 (13:34):
I feel a tremendous amount of pressure to do Obviously
my family comes first, okay, but to do a great
job for my company and our clients. But I also
feel a huge burn to do a good job for
my country. So you know, when my country wants me
to do something, and we talk all the time to
you know, their senators and regulators, what can we do
to make the system better, to lift up the country,
lift up.
Speaker 14 (13:54):
In the cities.
Speaker 15 (13:55):
We're trying to figure out how to make society better,
and I do consider that.
Speaker 14 (13:58):
Part of our job.
Speaker 16 (13:59):
I know you mentioned chet GPT and your annual letter.
Have you tried it?
Speaker 14 (14:02):
Yeah? If I had my phone, i'd show you.
Speaker 16 (14:04):
What do you use it for?
Speaker 14 (14:05):
I just ask you questions like what I don't remember?
What'sda bee chain going to ask me?
Speaker 16 (14:12):
We've got a top notch group investigating AI. What are
they up to? What's the next level of finance you
think AI can unlock?
Speaker 14 (14:20):
Yeah?
Speaker 15 (14:20):
So I think the most important thing is that it's
AI is real. We already have thousands of people doing it,
top scientists around their own Manu level Velosa from who
ran Carnegie Mellon machine learning. And it's a living breathing thing.
So people want to answer, what's going to do. It's
a living breathing thing.
Speaker 14 (14:35):
It's going to change.
Speaker 15 (14:36):
They're going to be all different types of models and
different types of tools and technology.
Speaker 14 (14:40):
But the way to think about for us.
Speaker 15 (14:42):
Is every single process, so errors, trading, hedging, research, every
app every database, you can be applying AI. So it
might be as a copilot, it might be to replace humans.
You know, AI is doing all the equity hedging for us.
For the most part, it's idea generation, it's large language models.
It's no taking while you're talking to someone and whiles
(15:02):
taking notes and may actually say to you that, you know,
here's the thing of interest to climb by Peterston.
Speaker 14 (15:06):
All error, all customer service. It's a little bit of everything.
Speaker 16 (15:08):
But it is going to replace some jobs, of course.
Speaker 15 (15:10):
Yeah, but I look, folks, people have to take a
deep breath. Okay, technologies always replaced jobs. Your children will
live to one hundred and not have cancer because of
technology and literally they'll probably be working three.
Speaker 14 (15:21):
And a half days a week.
Speaker 15 (15:23):
So technology has done unbelievable things from mankind. You know,
planes crash, pharmacials get misused. There are negatives. This is
one of the biggest negative in my view, is AI
being used by bad people to do bad things, think
of cyber but you know the fact and I do
think you know, eventually have legal guardrails around. It's kind
of hard to do because it's new, but it will
add a huge value. And you know, for JP Morgan
(15:45):
if it replaces jobs and.
Speaker 14 (15:47):
We hope to redeploy people.
Speaker 16 (15:48):
So is there going to be a point where I
can turn to chat JPM and say I have thirty
years or I want to get rich quick? What should
I do with my money?
Speaker 14 (15:57):
Well, the rich quick?
Speaker 15 (15:57):
I hope it tells you that you're crazy. Yeah, but
we in some ways can do a little bit ray today.
And you know, usually if you look at like wealth
plans that we have, which I think are quite good,
they have a lot of AI em better than that.
Speaker 14 (16:10):
And if soon I'll have more AI.
Speaker 2 (16:11):
This is Bloomberg Daybreak Today, your morning brief on the
stories making news from Wall Street to Washington and beyond.
Speaker 1 (16:18):
Look for us on your podcast feed at six am
Eastern each morning, on Apple, Spotify, and anywhere else you
get your podcasts.
Speaker 2 (16:26):
You can also listen live each morning starting at five
am Wall Street Time, on Bloomberg eleven three to zero
in New York, Bloomberg ninety nine to one in Washington,
Bloomberg one oh six to one in Boston, and Bloomberg
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Speaker 1 (16:39):
Our flagship New York station is also available on your
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Speaker 2 (16:48):
Listen coast to coast on the Bloomberg Business app, seriusxmb
iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
Speaker 3 (16:56):
And I'm Karen Moscow.
Speaker 1 (16:57):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:11):
Good morning.
Speaker 1 (00:11):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today, Karen.
Speaker 3 (00:16):
The rise in futures comes as the S and P
five hundred is coming off its biggest losing streak since January.
Stocks fell for a fourth straight day. They're now down
more than four percent from their all time high. The
declines come as more Federal Reserve officials urge patients on
rate cuts. FED Governor Michelle Bowman says the battle against
inflation continues.
Speaker 4 (00:37):
What we've seen over the past first few months of
twenty twenty four, anyway, is that progress on inflation has slowed,
and I expect maybe it's even stalled at this point.
Speaker 3 (00:50):
FED Governor Michelle Bowman's comments were echoed by Cleveland FED
President Lorettamester at a separate event. She said the Central
Bank should not be in a hurry to cut well.
Speaker 1 (00:59):
Nathan One FED critics as policymakers should begin the rate
cutting process. UBS Global Wealth Management chief economist Paul Donovan
says the FED should focus on the positive news regarding
its preferred inflation gauge, the PCEE deflator.
Speaker 5 (01:13):
What we do not want in this environment is rising
real interest rates. Because the economy is slowing. You've got
the highest interest rates in twenty three years, You've got
a fiscal drag on growth. The economy is slowing down.
You don't want to exacipate that with rising retial rates.
So I think the message needs to be follow the
PC de plate to lower ubs.
Speaker 1 (01:35):
Global Wealth Management chief economist Paul Donovan, speaking yesterday on
Bloomberg surveillance, traders now see just one to two rate
cuts this year. That's a far cry from the roughly
six they expected at the start of twenty twenty four.
Speaker 3 (01:48):
Back in New York, Karen jury selection resumes today in
the hush money trial of Donald Trump. Seven jurors have
been picked so far in the first ever criminal case
against a former president.
Speaker 1 (01:58):
Meanwhile, Nathan Trump is facing more pressure from economists in
his circle to embrace a flat tax rate. While the
former president has not endorsed a flat tax, he has
called for more middle class tax cuts. Weget details now
from Bloomberg's Amy Morris in Washington.
Speaker 6 (02:14):
Steve Forbes, former White House economic advisor Larry Cudlow, and
economists Steven Moore and author Laffer are not official advisors
to the Trump campaign, but they are pushing for their
preferred economic policies ahead of a potential second term. Forbes
is pushing for a flat seventeen percent tax rate for
all income brackets with exemptions. Cudlow supports renewal of Trump's
(02:36):
twenty seventeen tax cuts, but Laffer says he would support
lowering the corporate rate even more now. Donald Trump has
told allies he wants to keep that twenty one percent
corporate rate in place and instead extend individual cuts to
avoid alienating working class voters. In Washington, Amy Moore as
Bloomberg Radio.
Speaker 3 (02:54):
All right, Amy, thank you. We're learning Donald Trump's campaigns
telling other Republicans to pay up if they use the
former president's name, image, or likeness in their fundraising solicitations.
In a campaign memo obtained by Bloomberg News, all candidates
and committees who use Trump in their fundraising appeals must
give a minimum five percent of the funds they raise
(03:14):
to the Trump Political Operation.
Speaker 1 (03:17):
Well Nathan, Donald Trump's opponent Joe Biden, is on the
campaign trail. Speaking of Pittsburgh, the president vowed to keep
United States Steel American owned.
Speaker 7 (03:25):
US still has been an iconic American company for more
than a century, and it should remain a totally American,
American owned, American operated by American union steel workers, the
best in the world. And that's going to happen, I
promise you.
Speaker 1 (03:43):
In Japan's Nippon Steele plans to acquire US Steel for
more than fourteen billion dollars.
Speaker 3 (03:48):
And President Biden's talking tougher about China. Karen is. He
highlights the challenges to its economy.
Speaker 7 (03:54):
They've got a population that is more people in retirement
than working. They're not they're not important to any They're
not bringing there's xenophobic, nobody coming else coming in. They've
got real problems. I'm not looking for a fight with China.
I'm looking for competition, but fair competition.
Speaker 3 (04:10):
To the President's latest letter, it comes two weeks after
his latest phone call with Chinese President Shi Jinping. The
Chinese economy did grow faster than expected in the first quarter,
but there are still questions about the strength of that recovery.
Speaker 1 (04:22):
Well, Nathan, more pressure could be coming for China from Congress.
The House is on a fast track to approve the
bill aimed at forcing a sale of TikTok. Speaker Mike
Johnson plans to include it in the aid package for
Ukraine in Israel that he's teed up for votes on Saturday.
Two Republicans have threatened to try to oust Johnson over
foreign aid, but the Speaker is undaunted.
Speaker 8 (04:42):
My philosophy is you do the right thing and you
let the chips fall where they may. I don't if
I operated out of fear over emotion to vacate, I
would never be able to do my job.
Speaker 1 (04:52):
Speaker Johnson has already passed the TikTok bill in the House.
Attaching it to the foreign aid bill could force the
Senate to accept it as a condition for supporting Israel
and Ukraine.
Speaker 3 (05:02):
Well Karen Senate Democrats have not accepted impeachment articles against
Homeland Security Secretary Alejandro Majorcis. They have tossed the charges.
Bloomberg's Dan Schwartzman has.
Speaker 9 (05:12):
That Democrats in the Senate voted to dismiss both articles
of impeachment against Homeland Security Secretary Alejandro Majorkis. The vote
was mostly along party lines, except for Alaska Republican Lisa
Rokowski voting president on a measure to toss the first
impeachment article. Republicans have accused Maiorkis of refusing to enforce
immigration laws. The secretary is the first sitting cabinet member
(05:34):
in US history to be impeached. Democrats say the measure
was unconstitutional because it didn't meet the constitutional bar of
a high crime or misdemeanor. Republicans accused Democrats of failing
to take the charges against Majorcis seriously and that the
American people deserve to hear the evidence. Dan Schwartzman, Bloomberg Radio.
Speaker 1 (05:52):
All right, Dan, thanks now back to the Marcus. Keeping
an eye on chip stocks this morning. Taiwan Semiconductor Manufacturing
expects revenue to rise as much is thirty percent this quarter.
The better than projected outlook follows its first profit rise
in a year after strong AI demand revived growth at
the world's biggest contract chip maker. TSMC is the main
chip maker for Nvidia and Apple, and.
Speaker 3 (06:14):
Shares of Micron Technology are on the rise as well, Karen.
They're up two and a half percent in early trading.
The largest US maker of computer memory chips, this poised
to get six point one million dollars billion dollars I
should say billion with a B in grants from the
Commerce Department to help pay for domestic factory projects. This
is all part of an effort to bring semiconductor production
back to US soil.
Speaker 1 (06:38):
And it's time now for a look at some of
the other stories making news in New York and around
the world. And for that we're joined by Bloomberg's John Tucker. John,
Good morning and.
Speaker 8 (06:45):
Good morning, Karen. Republicans have VOP held the Arizona abortion ban.
Let's get more on that story this morning from Bloomberg
Steve Podisc.
Speaker 10 (06:53):
Republicans in the Arizona State House Block two attempts Wednesday
to repeal the state's one hundred and sixty year old
near total ban on abortion, despite pressure on the GOP,
including from former President Donald Trump, to change course on
the hot button issue. But later in the day, two
Senate Republicans joined with Democrats and up to create a
majority to move forward with their version of a repeal.
(07:15):
A final vote on the bill could be weeks away.
If the Senate does ultimately vote to repeal the ban,
the measure would go back to the House, where it
would still face.
Speaker 8 (07:24):
A difficult path. Steve Podisk Bloomberg Radio two hearings on
Capitol Hill focused on Boeing. In the first, a report
exposed holes in the safety culture at the company. Three
witnesses backed it up with testimony for senators. The second
hearing featured a former Boeing engineer and saying the airplane
manufacture is not up to par. Senator Richard bluminthalf Connecticut
(07:45):
had this message for the flying public.
Speaker 11 (07:47):
The aircraft as a whole may be safe insofar as
people getting on planes shouldn't panic, but they need to
be made fully safe.
Speaker 8 (08:00):
Speaking to ABC, President Biden will be endorsed by more
than a dozen members of the Kennedy family at an
event today in Philadelphia as he looks to blunt the
outsider presidential bid of Robert F. Kennedy Junior. Biden will
be introduced by Kerry Kennedy, the sister of the third
party candidate, and joined by fellow siblings. Poll suggests that
Robert F. Kennedy Junior, whose promoted conspiracy theories, could place
(08:24):
spoiler as mister Biden seeks to win reelection. And Google
fired twenty eight employees after they were involved in protests
against Project Nimbus, a one point two billion dollar joint
contract with Amazon to provide the Israeli government with AI
and cloud services. The protests took place across Google offices
in New York City, Seattle, and Sunnyvale, California. Global News
(08:46):
twenty four hours a day and whenever you wanted with
Bloomberg News. Now, I'm John Tucker, and VC is Bloomberg
Karen and Nathan.
Speaker 1 (08:52):
All right, John, thank you time now for the Bloomberg
Sports Update with John stash Hour. John, Good morning, Good.
Speaker 12 (09:02):
Morning, Karen's looking like the Knicks are going to continue
their long history of playoff series with Miami. The Heat
had a fourteen points second half lete in Philadelphia. The
fans were booing the Sixers. Philly came alive rally to
win one oh five to one to oh four. Joe
lmb twenty three points, fifteen rebounds, Nick patuone with twenty
off the bench. Tyrese Maxi scored nineteen. Was then asked
(09:22):
about now facing the Knicks.
Speaker 13 (09:24):
They're extremely grinding team. They play hard, they're physical, and
they're tough, and that's their identity. So for us to
go in there and try to get w's and try
to win this series, we have to mess that and
not just matchup. But we have to overcome that and
be better than that in n be extremely physical as well.
Speaker 12 (09:39):
Game one Saturday at the Garden, the Heat, who came
out of the play in the play in last year's
NBA Finals, now go home to play Chicago tomorrow. The
Bulls beat Atlanta one thirty one, one sixteen. Kobe White
scored forty two points. The winner of that game tomorrow
will then take on the Celtics and the NFL playoff
matchups set in the East, not yet in the West.
Although Dallas did win the winch the West one seed
(10:01):
the playoff found Islanders finished the regular season with another win,
five to four over Pittsburgh in Toronto. Looked like another
quiet game for Yankee Bats. They trailed the Blue Jays
four to one eighth inning, looked like they'd come home
with a four game losing the Street, but Juan Soto
homeward in the eighth. Jack Carlos Stands on the ninth
Yanks scored again, and then with the game tied, Aaron
Judge a two run single, Yanks won six to four.
(10:22):
Judge with a hit, raising his average till one eighty three.
A couple of x Yanks helped the Mets finish a
home sweep of the Pirates. Find the pitching of Luis Savarino,
A homer by Harrison Vader, The Mets one ninety one,
John Stashedward, Bloomberg Sports, Karen Nathan.
Speaker 1 (10:34):
All Right, John Thanks SMP futures have a quarter percent
or twelve points down, futures up, a tenth of a
percent or forty points NASDAK futures at four tenths of
percent or seventy points tenure Treasury yields four point five
seven percent.
Speaker 11 (10:48):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
Speaker 3 (10:57):
This is Bloomberg day Break Morning. I'm Nathan Hager, JP,
Morgan Chase CEO. Jamie Diamond has made no secret that
his firm is all in on artificial intelligence. In fact,
this month, he devoted a pretty significant chunk of his
annual shareholder letter to the importance of the technology for
the Wall Street Giants business and for society at large.
(11:17):
In the premiere episode of the second season of The Circuit,
Jamie Diamond joined Bloomberg Original's host and executive producer Emily
Chang to discuss the opportunity offered by AI. Before that, though,
Emily asked Jamie Diamond, if JP Morgan, the world's largest
publicly listed bank, is now too large, let's go to
part of their conversation.
Speaker 14 (11:38):
Now.
Speaker 15 (11:38):
I think the question is what works for consumers and
industries and stuff like that. So you know, if you
want to build a Boeing aircraft, you have to be big.
You can pretend that you don't if you want to
do what JP Morgan does. We move ten trillion dollars
of money around the world every day. We bank some
of these companies in thirty countries. We bank trees, We
(12:00):
bank the World Bank, the IMF, we bank the United
States government. You have to be big. You can't do
those things and be small. I applaud the small banks.
We're the biggest bank, community banks and regional banks and
stuff like that.
Speaker 14 (12:13):
And I understand, you know, some of the stress around it.
We're trying to help. So it's not either or so.
Speaker 16 (12:18):
Going a little bigger picture. Now, you run the biggest
bank in the world, you have our money, You've got
world leaders on speed dial. That's a lot of power.
How do you decide when and how to wield that power.
Speaker 14 (12:30):
Yeah, I'm not sure.
Speaker 15 (12:31):
I have a lot of people at speed, doll you
say all that, Sometimes I think I'm just riding the
Bronco and hanging out for deal life. You know, I
love what I do. I try to talk that around.
I try to keep my mind open. One of the
benefits from traveling the world. I just in Mumbai, in
Switzerland and seeing clients. You learn a lot and you
try to make sure you're that you're doing the proper
(12:52):
assessment of the world, that you're looking at the options.
Speaker 14 (12:56):
You're not like just saying we're going to do this.
Speaker 15 (12:57):
I look as part of our job to try to
have countries to help country do the best they can
for their citizens.
Speaker 14 (13:03):
So we bank countries.
Speaker 15 (13:04):
We also advise them on skills and trade and economics.
You look at our research, it's a lot around how's
an economy run. So when you go to like when
I got back from Mumbai, we research one hundred and
fifty companies now or something like that. So we're educating
the world about those companies. We're educating the world but
the Indian economy. As we do that, we indicate also
educate the Indians about what works in their economy and
what doesn't work, and those are important things to lift
(13:27):
up society.
Speaker 16 (13:28):
You've got this reputation as a sort of white Night
for the economy. Do you ever feel pressure to come
in with the save?
Speaker 15 (13:34):
I feel a tremendous amount of pressure to do Obviously
my family comes first, okay, but to do a great
job for my company and our clients. But I also
feel a huge burn to do a good job for
my country. So you know, when my country wants me
to do something, and we talk all the time to
you know, their senators and regulators, what can we do
to make the system better, to lift up the country,
lift up.
Speaker 14 (13:54):
In the cities.
Speaker 15 (13:55):
We're trying to figure out how to make society better,
and I do consider that.
Speaker 14 (13:58):
Part of our job.
Speaker 16 (13:59):
I know you mentioned chet GPT and your annual letter.
Have you tried it?
Speaker 14 (14:02):
Yeah? If I had my phone, i'd show you.
Speaker 16 (14:04):
What do you use it for?
Speaker 14 (14:05):
I just ask you questions like what I don't remember?
What'sda bee chain going to ask me?
Speaker 16 (14:12):
We've got a top notch group investigating AI. What are
they up to? What's the next level of finance you
think AI can unlock?
Speaker 14 (14:20):
Yeah?
Speaker 15 (14:20):
So I think the most important thing is that it's
AI is real. We already have thousands of people doing it,
top scientists around their own Manu level Velosa from who
ran Carnegie Mellon machine learning. And it's a living breathing thing.
So people want to answer, what's going to do. It's
a living breathing thing.
Speaker 14 (14:35):
It's going to change.
Speaker 15 (14:36):
They're going to be all different types of models and
different types of tools and technology.
Speaker 14 (14:40):
But the way to think about for us.
Speaker 15 (14:42):
Is every single process, so errors, trading, hedging, research, every
app every database, you can be applying AI. So it
might be as a copilot, it might be to replace humans.
You know, AI is doing all the equity hedging for us.
For the most part, it's idea generation, it's large language models.
It's no taking while you're talking to someone and whiles
(15:02):
taking notes and may actually say to you that, you know,
here's the thing of interest to climb by Peterston.
Speaker 14 (15:06):
All error, all customer service. It's a little bit of everything.
Speaker 16 (15:08):
But it is going to replace some jobs, of course.
Speaker 15 (15:10):
Yeah, but I look, folks, people have to take a
deep breath. Okay, technologies always replaced jobs. Your children will
live to one hundred and not have cancer because of
technology and literally they'll probably be working three.
Speaker 14 (15:21):
And a half days a week.
Speaker 15 (15:23):
So technology has done unbelievable things from mankind. You know,
planes crash, pharmacials get misused. There are negatives. This is
one of the biggest negative in my view, is AI
being used by bad people to do bad things, think
of cyber but you know the fact and I do
think you know, eventually have legal guardrails around. It's kind
of hard to do because it's new, but it will
add a huge value. And you know, for JP Morgan
(15:45):
if it replaces jobs and.
Speaker 14 (15:47):
We hope to redeploy people.
Speaker 16 (15:48):
So is there going to be a point where I
can turn to chat JPM and say I have thirty
years or I want to get rich quick? What should
I do with my money?
Speaker 14 (15:57):
Well, the rich quick?
Speaker 15 (15:57):
I hope it tells you that you're crazy. Yeah, but
we in some ways can do a little bit ray today.
And you know, usually if you look at like wealth
plans that we have, which I think are quite good,
they have a lot of AI em better than that.
Speaker 14 (16:10):
And if soon I'll have more AI.
Speaker 2 (16:11):
This is Bloomberg Daybreak Today, your morning brief on the
stories making news from Wall Street to Washington and beyond.
Speaker 1 (16:18):
Look for us on your podcast feed at six am
Eastern each morning, on Apple, Spotify, and anywhere else you
get your podcasts.
Speaker 2 (16:26):
You can also listen live each morning starting at five
am Wall Street Time, on Bloomberg eleven three to zero
in New York, Bloomberg ninety nine to one in Washington,
Bloomberg one oh six to one in Boston, and Bloomberg
ninety sixty in San Francisco.
Speaker 1 (16:39):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Speaker 2 (16:48):
Listen coast to coast on the Bloomberg Business app, seriusxmb
iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
Speaker 3 (16:56):
And I'm Karen Moscow.
Speaker 1 (16:57):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
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