From the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break for Thursday, June eighth.
Coming up today, Smoke blankets the Northeast and it could last a few more days.
Former President Donald Trump learns he's under criminal investigation.
President Biden vetos a bill aimed at killing his student debt relief, and.
We hear from Ray Delio and Brian Monahan at this year's a Bloomberg invest conference in New York.
Germany blames Russia for the destruction of a dam in southern Ukraine, blast New York City Sue's thirty counties for blocking deals to How's migrants. I'm Michael Barnard Moore Ahead.
I'm John stash Eward Sports. The Mets in Atlanta lost their fifth in the row. The Nuggets beat they hate and lead the NBA Finals two games to one.
That's all straight Ahead on Bloomberg day Break, the Business news you need to sturn your day in just one fifteen minute podcast each morning on Apples, Spotify, the Bloomberg Business app, and everywhere you get your podcasts.
Good morning, I'm Nathan.
Hager and I'm Garen Moscow. Here are the stories We're following today, we.
Want to get an update first on the smoky blanket billowing across the East coast. It could stay with us a few more days. Let's get the details from Bloomberg's John Tucker, John and Nathan.
The hazen smoke from those fires in Quebec and Ontario will return today and tomorrow. Our meteorologist Rob Carolyn tells us a low pressure system over Atlantic Canna is going to start to pull away over the next few days.
Shouldn't be as bad across the Tri state area. Visibilit would be a bit better, but there will be some smoke. And yesterday the Boston area escaped the smoke, and they should do so again today. And it definitely looks hazy in Washington today.
Now the wildfire smoke is hazardous in partant because it contains tiny inhalible particles. The health experts recommend everybody limited their time outdoors now. The air quality index in New York City reached three hundred and ninety two yesterday. That's a level considered to be hazardous for all groups, including healthy people. For comparison's sake, two one hundred is the
equivalent of smoking an entire pack of cigarettes. Breathing polluted air also linked to an increased risk for dementia, and Nathan and Karen being at work could be the safest place. Modern buildings, air handling and ventilation systems are operated to optimize the indoor air quality and use high efficiency filters. In New York, I'm John Tucker, Bloomberg Daybreak.
All right, John, thank you. Well. Another major story we're following this morning takes us to politics. Former President Donald Trump has been notified that he is a target in a classified documents case. Bloomberg's Ed Baxter has the story.
The notification in a letter from the Justice Department, saying that this is the result of the federal probe. Prosecutors have been building a case, including testimony from former aids, including former Chief of Staff Mark Meadows. Meadows has testified before federal grand juries in Washington and Miami for Special counsel Jack Smith. The Justice Department is required to notify individuals if they are a target based on somebstantial evidence
linking that person to the commission of a crime. In San Francisco, I'm at Baxter, Bloomberg Daybreak.
Okay, Ed, thank you. On Capitol Hill today, House Republicans had planned to vote on holding FBI Director Christopher Ray in contempt. Now that's been called off. House Oversight Chairman James Comber says the FBI has quote caved and is letting all members of his committee see a disputed document. Republicans claim the document links President Biden to wrongdoing by an unnamed foreign national.
Meantime, Nathan President Biden has vetoted bill aimed at killing his high profile student dead relief program, and a White House video, the President said he'll keep fighting to make sure college is cheaper.
Some of the same members of Congress who supported this bill voted through huge tax custs for corporations and the wealthy as well, But when it comes to hard working Americans trying to get ahead dealing with the student debt relief, that's where they drew the line.
President Biden did not address some of the Congressional Democrats who broke with him on the bill. Senators Joe Manchin and Joe Tester and Democrat turned independent Kirsten Cinema join with Republicans to vote against the student debt relief measure.
Well Karen uk. Prime Minister Rishi Sunek is in Washington later today, he takes part in a joint news conference with President Biden. That's on the heels of a meeting with House Speaker Kevin McCarthy yesterday.
When our bond is stronger, the world is safer, and democracy grows further when we've.
Stood together, I agree with you, the world hos benefited. And what we need to do now is figure out how do we make sure that relationship is strong to deal with the challenges of the future. I know that's what we're going to be talking about, but particularly strengthening our economies because that's what it's all about.
And Prime Minister soon next joint news conference with President Biden is set for one thirty pm Eastern And.
Return to Wall Street now, Nathan, and we've been speaking with some high profile names at the Bloomberg invest conference in New York. Bank of America CEO Brian moynihan tells us higher capital requirements will hit lending. That's after reports that large US banks may have to boost their capital by an average of twenty percent today.
It's a fairly straightforward. If our capital ratios go up by hundred basis points, we basically you simply put you can't make about one hundred and fifty million dollars loans and because people say, well you have more capite, you make more loans. But if we took risk on that capital, we wouldn't have that capital ratio. So it has to be a riskless build. A capital can't be out there taking risk.
Thank of America CEO Brian Lenahan spoke with a Bloomberg's David west End. Stay tuned for more of that interview coming up shortly on Bloomberg Daybreak.
We also heard from Wherry Daly, O Bloomberg invest Karen, the billionaire founder Bridgewater Associates, thinks we're getting close to the end of FED interest rate hikes.
The interest rates are now at a level that they're probably going to stay at, but they're probably not going to rise much from a year, and there's tightness and the consequences of that are going to be a weaker economy going forward.
Ry Dalio predicts the US economy will get weaker from here. Catch the full conversation and all our best interviews each day on the daily Bloomberg Talks podcast.
Nathan. We also caught up with Kim Kardashian. She was at the Super Return Conference in Berlin, the reality TV starter an entrepreneur, presented her debut private equity fund to a crowd of curious investors, and she spoke with David Rubinstein.
I'm honestly most looking forward to my relationships with the founders. I love hearing people's stories and hearing what their magic sauces behind their company and why they wanted to start the company that they did, and what their vision is and just hope that I can help that.
And Kim Kardashian's private equity fund, Sky Partners, is targeting up to twelve investments, each requiring anywhere from one hundred to five hundred million dollars of equity.
And you take a look at some of the other stories making news in New York and around the world. We're joined by Bloomberg's Michael Barr. Good morning, Michael, Good morning, Nathan.
Germany blame Russian President Vladimir Putin for the destruction of the Kakova Dam in southern Ukraine. Germany was joined by other European NATO members and denouncing it as a war crime. The US has yet to make an assessment on what caused them to collapse. State Department spokesman Vedant Patel says, while it is still trying to figure out what happened, the US government is mobilizing humanitarian resources.
I'm certainly not going to get into internal assessments, but I will note that we continue to be in close touch with Ukrainian authorities on providing assistance to the civilians displaced, as well as continuing to assess what transpired.
Ukrainian authorities are Russian supplies of drinking water to areas affected by flooding from the collapse dam. Supreme Court justices and other federal justices release their annual reports disclosing paid travel, outside income, investments, significant gifts, and the source of spousal income. Clarence Thomas and Samuel Alito have asked for an extension, which means their filings won't arrive until after the end
of the term. President Joe Biden has invited thousands of LGBTQ individuals to the White House today to celebrate Pride Month. Biden plans to announce new initiatives to protect communities from attacks. White House spokesperson Karine Jean Pierre.
We believe that not only does this community need to be celebrated and continue to be celebrated, as he's done many times before in this past two years. But we also need to make sure that we let the community know that the President has their back and we're going to continue to fight for them.
White House spokesperson Karine Jean Pierre is the first openly gay press secretary. It's the next chapter in the battle over the flood of migrants to New York City and Upstate counties. The Big Apple sued thirty upstate in Long Island Counties for issuing executive orders blocking local hotels and motels from contracting to house migrants sent from the city. New York Mayor Eric Adams says the suit is aimed
at ending xenophobic bignitry. Meanwhile, Mayor Adams plans to direct a cumulative sixty billion dollars of contractual work to minority and women owned businesses by twenty thirty. The goal is requiring the city to more than double as annual rate of contracts to underrepresented communities. Global News twenty four hours a day, powered by more than twenty seven hundred journalists, nantilists and over one hundred and twenty countries. Him Michael Barr, this is Bloomberg.
Nathan, thanks Michael time for the Bloomberg Sports update. For that, we bring in John Staneshauer. All right, anything Game.
Three of the NBA Finals eating Miami, and some triple double history. Denver's Nicola Jokis and Jamal Murray first teammates to both have them in the Finals game. But more than that, they're the first teammates in any NBA game, regular or postseason to both have triple doubles and both score at least thirty points. Jokid score thirty two at twenty one rebounds. Murray went for thirty four, got his tenth board with nine seconds left. They both had tennis.
Says Denver, Meat the heat one oh nine ninety four and leading the series now two to one. Now that shot fifty one percent, the heat only thirty seven. Denver was plus twenty five in rebound. Game four tomorrow, another loss for the Mets, second night in a row in Atlanta, where they had a four to one lead sixth inning, Braves again came back, won seven to five on a Michael Harris to run homer in the eight off Adam Ottavino.
The Mets have lost five in a row. Yankees in White Sox Air Quality Now doubleheader today starting at four. Rory McElroy t he's off today at the Canadian Opened. His first public reaction to the PGA Live merger. McElroy had been the most outspoken against lib which he says he still hates and he admits to a feeling of being a sacrificial lamb, but he said the merger was somewhat inevitable.
PIF and the Saudeas want to spend money in the game of golf. It is they they want to do this and they weren't going to stop. So Hi, can we you know the thing for me and this is one thing that I've always thought about, how can we get that money into the game but use it the right way.
Mcklroy supported in BATTLEPGA Commissioner Jay Monahan. They'll play the women's semifinals today at the French Open. Lionel Messi will play Angel League Soccer in Miami.
John stash Ellen.
Bloomberg Sports.
From coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Syrias Exam, the Bloomberg Business Appen Bloomberg dot Com.
This is Bloomberg Daybreak, Good morning, I'm Nathan Hagar. Millions of Americans are waking up this morning following visions of apocalyptic orange skies. Wildfires from Canada have sent smoke billowing across the Northeast, and air quality warnings have been up from Massachusetts through New York City, all the way into Washington, DC and beyond. So how much longer can this last? When will it end? Bloomberg Meteorologist Rob Carolyn is here
with us Live to help answer some of those questions. Rob, you know it's bad when the sky's orange during the day. Is it gonna be as bad in the East.
Coast as it was yesterday? Well, Nathan, the worst of it yes was in the Tri State area. That's where we saw those visibilities under two miles in very heavy smoke, and the visibility is pour this morning around southern New York. I'm looking at visibilities right now under two miles from the Hudson River Valley across Long Island and into the city. So it gets a little bit better as the day goes on in New York. Some of the smoke's going to disperse, but it's certainly going to be hazy much
of the Boston area yesterday missed out on it. We had visibilities in ten miles. There was some smoke, but certainly nothing like what we saw in New York City. We did have quite a bit of haze in the district in Baltimore that continues today. The big problem is we are stuck in a stagnant weather pattern. Low pressure is stalled over eastern New England and eastern Canada. That's what's pulling all of this smoke out of Quebec and Ontario, and it will continue to do so today, tomorrow and
into Saturday. It looks like a system coming out of the western United States is going to help kick this low out and weaken it. So we'll start to see gradual improvement by Sunday in the air quality across the northeast Ohio River Valley in mid Atlantic region. It definitely gets better into next week as the weather pattern starts to change.
Is a stalled weather pattern like this unusual, rob I mean, when you see scenes like this, the words climate change immediately come to mind. Is that something that's on your radar?
Well, we've been in a very blocky pattern so far the spring. Nathan just a week ago we were sitting underneath high pressure and we had sunshine for eight days over the northeastern United States. It's not unusual to see the blocks develop in the spring and continue into the early summer. What seems to be driving this block is the fact that we've got the Greenland ice sheet melting more than normal that has been forming a cold pool
of water south of Greenland. Right now, that cold pool of water is closer to the East coast than it's been the last couple of springs and summers, and that's what's been leading to this persistent pattern of upper level low pressure system developing over the Northeastern United States at times through the spring and early summer. So that could be attributed to the changes that we're seeing with the climate in the northern hemisphere.
Just thirty seconds left, Rob, your advice for people how to deal with this smoke for this week?
Well, the smoke yesterday in New York was on the president since the like the seventeen eighties, you'd have to go back that far into the climate pass to come up with something like this. I would say people with respiratory's distress stay inside. Those folks who have to go out and ninety five. Mass are probably a good idea in the Tristate area. You should be okay in Boston and VC today. Just don't do anything strenuous, especially if you suffer from respiratory distress.
Really appreciate this, Rob. Thank you, Bloomberg Meteorologist Rob Carolyn. We're going to be checking back with you throughout the morning here on Bloomberg Daybreak. But we want to turn now from apocalyptic weather to the outlook from one of Wall Street's biggest banks. The United States has to be a beacon of stability and strength in the world. That's the word from Bank of America CEO and Chairman Brian moynihan.
He's talking about the US economy in the wake of a drawn out debt ceiling battle and where he sees things going from here. One Hand sat down for a wide ranging interview with David weston Man at the Bloomberg invest Conference in New York. Let's listen to part of that conversation.
Now, YEO, when I ask people, is this disruptive? And not all the experts tell me yes and no and yes. In the hand there's a lot of issuance, But no, everybody knew it was coming and so it may move sort of trading markets around, but fundamentally, the idea of the government was gonna run out of money was not something people were planning on. So we'll see.
Does it put any kind of a crip in your ability to lend? I mean money has to come from somewhere.
Well, there's a lot of money sitting at the FED, and you have a night repo facility and money funds has just been put back, and so the dynamics of how this all moves around is interesting. I don't think in the worry b it took deposits out of the banking system, but you know, there's I'm not sure people see that as a big issue. And by the way, the Treasury secretary, I think they said today they will do this on a non disruptive basis, because they don't.
They just ran down to thirty nine billion. We're still able to pay the bills, so they don't need to get there tomorrow, and they'll build it up over time, but their goal is to get back in a more regular way. The best news about this whole dialogue is they've got an agreement that extends a period of time, so we shouldn't have to deal with this for a while, which is really critical because the United States has to
be the beacon of stability strength in the world. And at times when this discussion is going on and you travel the world, everybody gets fixated on it because United States is the benchmark of benchmarks, and if it goes completely somehow accidentally, it's a real problem. And so they get all fixated all this sort of activity in the planning for it. What would happen in all our company? It just it would just be better if it didn't go on. But it's a political process, and.
There are reports and I don't think it's unexpected anybody that there's going to be increase in capital requirements. If that goes forward, will it have any effect on your ability to make loans?
There are multiple discussions which could get sort of pushed together. There's the standards for the final finalization of BASEL, which is this broad set of things that's going on. This stress test is going on that we forget about if that's going on also, and that result in some surprises
the industry in terms of capital demands last year. And then and then there's the question of applying standards that applied to the g said banks the biggest bank broader in the platform because the size of some of the banks, and so all three of those things get mixed together a little bit. But you know, at the end of the day, it's a fairly straightforward. If our capital ratios go up by one hundred basis points, we basically, you know, simply put, you can't make about one hundred fifty million
dollars a loans. And because people say, well, you have more capital, make more loans. But if we took risk on that capital, we wouldn't have that capital ratio. So it has to be a riskless build. A capital can't be out there taking risk. It's the only thing you really do is leave in the cash or buy treasury securities. And that's not a very productive use of money. So and if you had it, and that's the problem. And so every time capital goes up, there's a there's a countervailing effective.
It impacts lending.
So I see, actually a survey was done in this room of the likeli overcession in Q one of twenty th eighty four, and it looks like, what is that sixty five percent of the people agree with your research. Isn't that good to know you've got kind of ratification there.
One thing we always careful if somebody educated me once that the four action recession by economists is always like fifteen or twenty percent, so and above that means that they're convinced.
So when we talk about costs, what about headcount? I know you said that it's not so much you're laying officer's not hiring as many as you were a year ago.
This goes back to economic who and I even talk to customers. So last May we hired thirty three thousand people. Excuse me, this May we hired you know, six seven hundred. And that's all because the turnover rate fell because last year were in the middle of great recognation and now it's completely different. So we went from twelve percent turnover in the company, which is sort of the long term level we're at pre pandemic, down to six, up to fifteen,
and now back down getting close to six. So we don't have to hire as many people, yet we keep managed to head count down.
More broadly, do you think the job marker is a bit softer than what the FED realizes.
I think if you talk to employers today in a technology spaces there's always specialized things like welders in certain businesses and high and manufacturing help explosion that was just having been out there. But in general it's much less tight than it was in the spot market and that's why the curt rates going down. All that stuff. You see it in the amount of hires and you know,
so job postings are still high. I'm not sure CEOs that I talked to are pushing people to fill those as much as film when you have to, and that has a dampening effect on the labor market that won't show up any agorams. Employment still at you know, three point seven percent of employment is still very strong. And so the big debate when if you want to drive your econ is crazy, say how can you have an unemployment list recession? And you know, they can't quite get there,
and that's kind of the interesting question. And so even the highest predictors of unemployment don't even get the five percent, which is hard to square.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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