From the Bloomberg Interactive Burger's Studios. This is Bloomberg day Break for Friday, June twenty third. Coming up today, the.
Search for the missing Titanic sub comes to a tragic end.
Global stocks are on track for their biggest weekly decline in three months.
Janet Yellen says the risk of a US recession is receding.
And City Group has a warning for employees on office attendance.
A section of I ninety five that collapsed in Philadelphia reopens today. Plus Congress mon Santos slams a judge for revealing the names behind posting his bond. I'm Michael Barr. More ahead.
John stas Shower sports a lopsided loss to the Yankees. The Mets to night visit Philadelphia. They held the NBA Draft in Brooklyn.
That's all straight ahead on Bloomberg day Break, The Business news you need to starn 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 Karen Moscow. Here are the stories we're following today.
First, we begin with a tragic end to the search for that submersible it was exploring the Titanic. Rescuers have found the nose cone and other debris from the vessel, known as the Titan. Coastguard Rear Admiral John Monger says the five people on board are dead.
In consultation with experts from within the Unified Command, the debris is consistent with the catastrophic loss of the pressure chamber.
We're Admiral John Mager says, they're going to keep collecting information to determine the cause of that implosion. Bloomberg News has learned the US Navy detected the implosion on Sunday at the site where the Titan loss communications. A senior Navy official says a decision was made to continue the search and rescue to make every effort to save lives.
Well, Nathan, we turn now to the nation's capital, where geopolitics and foreign relations are in focus. It was a red carpet welcome for India's Prime Minister as Narndra of Mody met with President Biden at the White House yesterday. I joined press conference was followed by Modi addressing Congress. Amy Morris has Moore from our Bloomberg ninety nine one newsroom in Washington.
President Biden in Prime Minister Mody announced a series of defense and commercial deals designed to improve military and economic ties between the two nations during yesterday's state visit at the White House. Later, Mody made a rare address to a joint meeting of Congress, where he stressed the importance of democracy.
The beauty of democracy in the constant connect with the people, to listen to them.
At least seventy lawmakers called on President Biden to address human rights violations in India. Still, Mody was met with applause on Capitol Hill. The evening ended with a state dinner at the White House in Washington. I'm Amy Morris Bloomberg Daybreak.
Thank you Amy.
At that joint news conference with Prime Minister Modi, President Biden also addressed relations with answering questions about this week's comment where he referred to Chinese President Shi Jinping as a dictator.
We had an incident that caused some confusion, you might say, but President, but the Secretary of b Lincoln had a great trip to China. I expect to be meeting with President she sometime in the future, in the near term, and I don't think it's had any real consequence.
All those sentiments from President Biden do not appear to be shared by China. A spokesman for the Chinese embassy says the president's remarks were quote erroneous, absurd, and irresponsible.
Well, we turned to the markets now, Nathan, and are seeing global stocks had for their biggest weekly decline in more than three months. Concerns of our higher interest rates appear to be the catalyst. At the same time, we're getting a positive outlook from the Treasury Secretary Jennet Yellen says the risk of a US recession is declining. We get more from Bloomberg's dun Krisner.
In an interview with Bloomberg News, Yellen said the odds of recession, if anything, have gone down. That's because of a tight labor market and inflation coming down. When it comes to consumption, Yellen said we probably need to see some slow down in spending in order to get inflation under control. She said the core measure of price increases is quite high. Yellen also said we could have a lovely debate about what the inflation target would be, but
this is not the time for that debate. Fedhair J. Powell has rejected the idea of entertaining a change in the two percent target sentiment. He reiterated before Congress this week in New York. I'm Doug Krisner Bloomberg Daybreak.
Thank you, Doug. Speaking of Jay Powell. The Fed chairs wrapped up his semi annual testimony to Congress, and yesterday saw Powell weighing in on the banking crisis. He says Wall Street's biggest lenders may have to increase capital requirements by twenty percent.
The capital requirements will be very, very skewed to the eight largest banks. The jesips there may be some capital increases for the other banks, and they won't. I'm not I think none of this should affect banks under a hundred billion.
Pal made those comments before the Senate Banking Committee as he wrapped up two days of Congressional testimony.
Sticking with the banking sector, plenty of other news to catch you up on this morning. Nathan Blackrock says it's cutting staff. The firm says it's shifting its budget to support critical priorities. Blackrock says the move will affect less than one percent of employees.
And City Group's ramping up it's pushed to get its workers back.
In the office.
Karen.
The firm's telling managers to let staff know they will face consequences if they don't comply with office attendance policies. We get the details from Bloomberg's Charlie Pellett.
Sources tell Bloomberg. While the vast majority of staffers are following the firm's rules for hybrid work, the moves are focused on those employees with persistent, unexplained absences, the sources, managers will consider compliance with the rules when rating performance and crafting pay packages. Citygroup is widely seen as to be among the most amenable financial firms when it comes
to flexible work arrangements. Following the COVID nineteen pandemic in New York, Charlie Pellett Bloomberg Daybreak.
All right, Charlie, thanks well. Another big bank has made a settlement involving litigation over Jeffrey Epstein. JP Morgan has agreed to pay two hundred ninety million dollars to settle a lawsuit alleging it knowingly benefited from Epstein's sex trafficking. The deal has been okayed by the lead plaintiff, but must still be approved by a judge. Last month, Deutsche Bank agreed to pay seventy five million dollars to settle it's Epstein related lawsuit.
And a settlement's been reached in the first US Zantac cancer lawsuit. British drugmaker GSK has reached a deal with a man who claimed the drug maker's heartburn medication caused his cancer. This is Bloomberg, and now it's time to take a look at some of the other stories making news in New York and around the world.
Good morning, Michael barn Good morning.
Nathan ben Dott says the temporary lanes of I ninety five will reopen today in Philadelphia. Cruz have been working twenty four to seven since the portion of the interstate collapsed. On June eleventh. Petation Secretary Mike Carroll reached out to Ricky Durst at the Pocono Raceway to see if the state could use its dryer to keep moisture off the road.
It is a jet engine. It's gonna blow out about fourteen hundred at fourteen hundred Greece fahrenheit. It's about three thousand pounds of forty as the secretary says, it's buckled into chabby Silverado, So it's a little bit of Franks time thing.
Pen Dot says. During the asphalt paving, there were concerns that rain would hold up repair crews. A judge just blocked Wyoming's first in the nation ban on abortion pills before it was set to be implemented July first. Several states have banned abortion outright or restricted access to abortion pills.
The ruling comes just ahead of the one year anniversary of the Supreme Court, essentially overturning Roe v. Wade In battled Congressman George Santos is slamming a judge for revealing his father and aunt were the ones who co signed a bail bond to keep him out of jail.
My whole thing around keeping the sureties secret. What's for their safety?
Because of the death threats I.
Get, I can handle that I ran for public office, stated not, you're private citizens. One's a United States Postal worker, the other ones a painter.
A request granted to when seal Court records revealed the Long Island Republicans father and on co signed the five hundred thousand dollars bond that enabled Santos's release, as he awaits trial on federal charges of fraud, money laundering, and theft of public funds. Prosecutors in New Mexico filed a new charge against the armorer on the set of the movie rust Hannegutierras Reed is now accused of evidence dampering related to narcotics in connection with the fatal shooting of
cinematographer Helena Hutchins. The FDA is doubling down on banning e cigarettes. It's warning store owners stop selling fruit and candy flavored vapes, saying they pose a danger to young people. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in over one hundred twenty countries. I'm Michael Barran. This is Bloomberg. Nathan.
All right, Michael, thank you time now for the Bloomberg Sports Update with John Stasheller. All right, Nathan, and the Yankee game pretty much over.
Before the Yanks came to the plate, they were already trailing Seattle four nothing. Mariners then scored twice in each of the next three innings. It was ten to nothing until in Isaiah Connor Fi left a two run homer bottom of the ninth IKF had pitched a perfect top of the ninth. Mariners won ten to two to avoid getting swept Yankees os Texas tonight. Mets are in Philadelphia. They had good success with the Phillis last season, and
they swept them a few weeks ago. But since that sweep, the Phillies have gone thirteen and four and the Mets have gone four and thirteen. The Jets back in March acquired veteran safety Chuff Clark from Baltimore. He tore his ACL an off season practice.
He'll miss the season.
Convictor wembn Yama live up to a tremendous amount of five, nineteen years old from France, seven foot four, best NBA prospect since Lebron James, drafted first overall by San Antonio and focusing on team goals.
Some Pyers have tried to win the championship, win a ring for years and haven't made it. And I want to.
I want to.
I don't want to be one of those, you know, So yeah, this is the this is gonna be my My goal is going to be to get closer and closer every time to the ring.
Charlotte, with the second pook took Alabama's Brandon Millard Portland followed with Stute Henderson who played in the G League, and then Houston and Detroit and consecutive picks took twin brothers a man in Ostair Thompson. The Nets back to back first round picks took Noah Clowney from Alabama, then Duke's Derek Whitehead. Another big NBA trade, Chris Paul now goes from Washington to Golden State for Jordan Coole Travelers
Golf near hard for Jenny McCarthy leeds by two. Rory McElroy trails by eight, but McElroy had the first hole in one of his pro career John Stash that went to Bluebird Sports.
From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on siriusxam the Bloomberg Business Appen Bloomberg dot com. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. With the explosion of chat GPT over the past year, companies are looking to implement artificial intelligence across their businesses. But what will the future look like with AI in it? Open AI CEO and co founder Sam Altman joined our Emily Chang. At the Bloomberg Technology Summit, they discussed existential questions about AI and what should be done to regulate this powerful technology. Let's listen in to part of that discussion.
Now, there's many ways it could go wrong, but we work with powerful technology that can be used in dangerous ways very frequently in the world, and I think we've developed over the decades good safety system practices in many categories.
It's not perfect, and this won't be perfect either.
Things will go wrong, but I think we'll be able to mitigate some of the worst scenarios you could imagine. You know, bioterror is like a common example, cybersecurities another, like many more we could talk about. But the main thing that I feel is important about this technology is that we are on an exponential curve and a relatively steep one, and human intuition for exponential curves is like
really bad in general. It clearly was not that important in our evolutionary history, and so I think we have to given that we all have that weakness. I think we have to like really push ourselves to say, Okay, GPT four, you know, not a risk like you're talking about there, but how sure we the GPT nine won't be and if it might be, even if there's a small percentage chance of it being really bad, like that deserves great care.
And if there is that small percentage chance, why keep doing this at all?
Like why not stop a I think that the upsides here are tremendous, you know, opportunity for everyone on earth to have a better quality education than basically any one can get today. That seems like really important, and that'd be a bad thing to stop medical care And what's I think going to happen there and making that available like truly globally, that's going to be transformative. The scientific
progress we're going to see. I'm a big believer that like, real sustainable improvements in quality of life come from scientific and technological progress, and I think we're gonna have a lot more of that. So there are all the obvious benefits, and you know, like I think would be good to end poverty, Like maybe you think we should stop a technology that can do that, I personally don't, but we
got to manage through the risk to get there. I also think at this point, given how much people see the economic benefits and potential, no company could stop it. But global regulation which I only think should be on these like powerful existential risk level systems. Global regulation is hard, and you know you don't want to overdo it for sure, But I think global regulation can help make it safe, which is a better answer than stopping it.
So don't think stopping it would work.
Let's talk about the global regulation. You've been around the world meeting with regulators. You met with President Biden and the CEOs of Microsoft and Google, and you're calling for regulation, but with some caveats. The critics say it sounds like you're saying regulate us but not really, or that you are calling for regulation in public but lobbying for something else in private.
How would you respond to that, we're pushing for it in private too.
I mean, obviously we have some opinions about the ways to do it that'll be effective and that will be ineffective. We, for example, don't think small startups and open source models below a certain very high capability threshold should be subject
to a lot of regulation. But also we think it is super important that as we think about a system that could be at a risk level like you were talking about, that we have a global and as a coordinated response as possible so we've been talking about that publicly privately, I think it's really important.
You know.
You could like point out that it's we're like trying to do regulatory capture here or whatever, but I just don't. I think that's like so transparently intellectually dishonest.
I don't even know how to respond.
You have an incredible amount of power at this moment in time.
Why should we trust you?
You shouldn't, you know, mean for a long time public talking, I'd rather be in the office working, But I think at this moment in time, like people deserve basically as much time asking questions as they want, and I'm trying to show up and do it. But more to that, like no one person should be trusted here. I don't have super voting shares. I don't want them. The board can fire me. I think that's important. I think the board over time needs to get like democratized to all
of humanity. There's many ways that could be implemented. But the reason for our structure, and the reason it's so weird, is we think this technology, the benefits, the access to it, the governance of it, belongs to humanity.
As a whole.
If this really works, it's like quite a powerful technology, and you should not trust one company.
It's certainly not one person.
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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