Biden Slaps Tariffs on China; Blinken Visits Ukraine

Bloomberg Audio Studios, Podcasts, radio news. Good morning, I'm Nathan 0:00:12.160 --> 0:00:15.120 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.160 --> 0:00:16.000 following today. 0:00:16.239 --> 0:00:19.960 We begin with tensions rising potentially between the US and China. 0:00:20.000 --> 0:00:22.960 With a red headline just crossing the Bloomberg terminal. President 0:00:23.000 --> 0:00:26.680 Biden is imposing sweeping tariffs on China. Let's get the 0:00:26.720 --> 0:00:29.440 details now from Bloomberg Steve Potisk in Washington. 0:00:29.880 --> 0:00:33.120 In an election year move, the President is hiking tariffs 0:00:33.120 --> 0:00:37.320 on a wide range of Chinese imports, including semiconductor chips, batteries, 0:00:37.479 --> 0:00:40.680 solar sales, and critical minerals. The White House says the 0:00:40.760 --> 0:00:44.280 changes are projected to effect around eighteen billion dollars in 0:00:44.360 --> 0:00:49.040 current annual imports. The moves represent Biden's most comprehensive update 0:00:49.120 --> 0:00:52.599 to the China tariffs first imposed by Donald Trump. It's 0:00:52.640 --> 0:00:55.920 a recognition that a hawkish approach to trade with Beijing 0:00:56.000 --> 0:00:59.920 remains popular with voters. None of Trump's tariffs will be reduced. 0:01:00.280 --> 0:01:03.360 Biden will ratchet uprates on goods the US struggle to 0:01:03.400 --> 0:01:07.039 import during the coronavirus pandemic, and for key industries like 0:01:07.120 --> 0:01:10.080 chips and green energy that he sought to bolster since 0:01:10.080 --> 0:01:13.760 he took office. Still, Biden must strike a careful balance. 0:01:13.880 --> 0:01:18.600 Additional tariffs risk increasing prices for consumers already hurting from inflation. 0:01:18.800 --> 0:01:21.840 It also could inspire the ire of China, which could 0:01:21.920 --> 0:01:26.760 choose to retaliate in kind. In Washington, Steve Potis Bloomberg. 0:01:26.319 --> 0:01:29.200 Radio, all Right, Steve, thank you well. Treasury Secretary Janet 0:01:29.280 --> 0:01:32.840 Yellen says she hopes China will not retaliate any coming 0:01:32.920 --> 0:01:37.399 trade restrictions. Speaking exclusively to Bloomberg, Yellen said, China is 0:01:37.560 --> 0:01:39.440 really not playing by the rules. 0:01:39.959 --> 0:01:42.800 We do think that the playing field should be fair, 0:01:43.400 --> 0:01:49.800 and China engages in unfair practices like massive subsidies of 0:01:49.880 --> 0:01:56.280 industries they've decided are critical, and those are cases where 0:01:56.600 --> 0:01:58.520 we will like to protect ourselves. 0:01:58.880 --> 0:02:02.640 Treasury Secretary j Yellen added that the US cannot allow 0:02:02.680 --> 0:02:06.200 these emerging sectors to be wiped out by Chinese competition. 0:02:06.480 --> 0:02:10.120 Get the full conversation on the Bloomberg Talks podcast feed. 0:02:10.120 --> 0:02:13.480 And sticking with geopolitics, Karen. The Biden administrations giving an 0:02:13.480 --> 0:02:16.600 in person show of support to Ukraine. Secretary of State 0:02:16.639 --> 0:02:20.080 Anthony Blincoln is in Kiev. He's highlighting the battlefield gains 0:02:20.160 --> 0:02:23.000 Ukraine could make with sixty one billion dollars in just 0:02:23.080 --> 0:02:28.160 past US assistants. Polish President Andre's Judah says Russia cannot 0:02:28.160 --> 0:02:29.880 be allowed to win in Ukraine. 0:02:30.200 --> 0:02:33.959 If they managed to wan in Ukraine, if they managed 0:02:34.000 --> 0:02:37.520 to accomplish their goals, they will keep on attacking. They 0:02:37.520 --> 0:02:41.960 will attack other countries. Perhaps these could be the Baltic States. 0:02:42.200 --> 0:02:45.119 Perhaps this could be Finland, Perhaps this could be Poland 0:02:45.600 --> 0:02:48.799 on or perhaps these could be other countries which used 0:02:48.800 --> 0:02:50.919 to be part of the Russian sphere of influence. 0:02:51.240 --> 0:02:54.079 Polish President Dudah spoke through an interpreter with Bloomberg News 0:02:54.200 --> 0:02:56.799 editor in chief John Mickelthwaite at the Katar Economic Forum 0:02:56.840 --> 0:02:59.680 in Doha. Secretary of State bl Lincoln's visit to Ukraine 0:02:59.720 --> 0:03:02.440 comes as Russia has mounted one of its biggest attacks 0:03:02.520 --> 0:03:04.680 since the invasion more than two years ago, in the 0:03:04.720 --> 0:03:09.480 northeastern region of Harkiev. Ukrainian President Vladimir Zelenski told Blincoln 0:03:09.680 --> 0:03:13.359 Ukraine needs two air defense batteries to protect Kharkiv from 0:03:13.440 --> 0:03:14.320 Russia's attacks. 0:03:14.720 --> 0:03:17.680 Well, Nathan back here in the US, this star prosecution 0:03:17.840 --> 0:03:21.280 witness and the hush money trial against Donald Trump returns 0:03:21.280 --> 0:03:23.280 to the stand this morning and We get the details 0:03:23.280 --> 0:03:25.720 from Bloomberg Law host Jun Grosso in New York. 0:03:26.080 --> 0:03:28.960 The Michael Cohen that jurors saw on the stand was 0:03:29.000 --> 0:03:34.160 subdued and unemotional, just answering the prosecutors' questions without any 0:03:34.240 --> 0:03:37.680 hint of his ill feelings toward Trump. His testimony is 0:03:37.720 --> 0:03:41.560 the most damaging against the former presidents so far, giving 0:03:41.560 --> 0:03:45.000 a first hand account of Trump allegedly directing him to 0:03:45.120 --> 0:03:48.960 falsify financial records to cover his hush money payment to 0:03:49.040 --> 0:03:52.560 adult film star Stormy Daniels. The test will be whether 0:03:52.680 --> 0:03:56.200 Cohen can be shaken on cross examination in New York 0:03:56.280 --> 0:03:58.800 June Grosso of Bloomberg Radio June Thanks. 0:03:58.840 --> 0:04:01.040 Turning to the economy, now Wall Street gets the first 0:04:01.040 --> 0:04:03.840 of two key inflation reports this morning with the release 0:04:03.880 --> 0:04:06.360 of the Producer Price indexs for April, and we get 0:04:06.360 --> 0:04:08.400 a preview from Bloomberg's Michael McKee. 0:04:08.480 --> 0:04:12.000 Inflation week kicks off with the Producer Price Index headline. 0:04:12.040 --> 0:04:14.480 Wholesale prices are expected to rise a tenth of a 0:04:14.520 --> 0:04:18.880 percentage point on the back of higher energy costs. Core PPI, however, 0:04:19.040 --> 0:04:22.600 is forecast to fall back, resuming the downtrend in inflation 0:04:22.680 --> 0:04:25.599 that was interrupted at the start of the year. Producer 0:04:25.640 --> 0:04:29.480 prices don't translate directly into consumer price changes, but do 0:04:29.680 --> 0:04:33.320 offer an overview of the inflation picture. The CPI is 0:04:33.360 --> 0:04:36.919 released tomorrow. They also provide a picture of profit margins 0:04:36.960 --> 0:04:41.120 in some industries, including retailers. Michael McKee Bloomberg. 0:04:40.800 --> 0:04:43.880 Radio Mike, thank you well in company news sources say 0:04:44.040 --> 0:04:47.680 Walmart is acting hundreds of corporate jobs and asking most 0:04:47.680 --> 0:04:50.880 remote workers to return to offices. Companies around the world 0:04:50.920 --> 0:04:53.800 are encouraging employees who's commute to worry shape by the 0:04:53.800 --> 0:04:57.240 pandemic to return to offices. Walmart, the world's biggest retailer, 0:04:57.279 --> 0:04:59.760 is also the largest private employer in the US and 0:04:59.800 --> 0:05:03.360 all rates some four thousand, six hundred stores domestically. 0:05:03.200 --> 0:05:06.839 In markets Karen Memestocks are once again in focus following 0:05:07.040 --> 0:05:10.600 monster gains for Game Stop. Let's get the details from 0:05:10.600 --> 0:05:12.800 Bloomberg's John Tucker, John and Nathan. 0:05:12.880 --> 0:05:16.479 GameStop surged one hundred nineteen percent at one point. This 0:05:16.560 --> 0:05:19.479 all started when the investor known as Roaring Kitty suggested 0:05:19.520 --> 0:05:22.120 he was back after a three year absence with a 0:05:22.160 --> 0:05:24.920 cryptic post on x. By the end of the day, 0:05:24.960 --> 0:05:29.400 game Stops market cap increased by four billion, dollars. Trading 0:05:29.480 --> 0:05:32.719 was halted for volatility nine times within the opening ninety 0:05:32.720 --> 0:05:35.719 minutes of trading. That rallies spilled over into other meme 0:05:35.760 --> 0:05:39.039 stocks AMC Entertainment that surged seventy eight percent. 0:05:39.440 --> 0:05:39.560 Well. 0:05:39.600 --> 0:05:42.400 This latest rally, though, is short of the two thousand 0:05:42.400 --> 0:05:46.200 and one frenzy when game Stops surged two thousand percent. 0:05:46.640 --> 0:05:48.800 This time, only twenty four percent of the stock is 0:05:48.800 --> 0:05:51.960 sold short. Checking shares at GameStop at AMC this morning, 0:05:52.040 --> 0:05:56.360 they're both up more than thirty seven percent. John Tucker, Bloomberg. 0:05:55.920 --> 0:05:57.560 Radio, All right, John, thank you. 0:05:57.600 --> 0:05:57.760 Well. 0:05:57.800 --> 0:06:00.200 Banking is also very much in focus this more aring, 0:06:00.200 --> 0:06:02.640 and we caught up with several CEOs at that Choose 0:06:02.720 --> 0:06:06.119 France summit in Versailles. Bank of America as CEO Brian 0:06:06.200 --> 0:06:09.719 Monahan says, US consumers, helped by wage growth, remained in 0:06:09.760 --> 0:06:12.400 good shape even amid elevated interest rates. 0:06:12.680 --> 0:06:14.760 The shows of the resilience and American consumer grat. 0:06:14.640 --> 0:06:16.320 Structure may be higher, and we can talk about that, 0:06:16.320 --> 0:06:18.160 but the reality is it's in decent shape. There's a 0:06:18.240 --> 0:06:20.240 thousand things that can go wrong tomorrow, for right now, 0:06:20.240 --> 0:06:21.560 everything's in pretty good shape. 0:06:21.880 --> 0:06:24.720 In an interview with the Bloomberg John Faraoh Monahan says 0:06:24.760 --> 0:06:27.680 consumer spending climb three to four percent in May from 0:06:27.720 --> 0:06:28.280 a year ago. 0:06:28.520 --> 0:06:31.560 And we also spoke with Goldman Sachs CEO David Solomon 0:06:31.720 --> 0:06:35.080 in France, Karen. Last year, Solomon found himself under pressure 0:06:35.080 --> 0:06:38.680 amid slumping profits at Goldman Fast Forward. The bank stock 0:06:38.760 --> 0:06:41.320 recently hit record highs, thanks in part to a first 0:06:41.400 --> 0:06:42.920 quarter jump in net income. 0:06:43.360 --> 0:06:46.400 When times are good, you know, things feel good. When 0:06:46.440 --> 0:06:48.880 times are tougher, things don't feel as good. But we 0:06:48.960 --> 0:06:51.960 kind of take a long view execute against that strategy, 0:06:52.000 --> 0:06:55.320 and we just know that if we have really really 0:06:55.440 --> 0:07:00.240 smart people working together, working collaboratively, really driving for excells 0:07:00.279 --> 0:07:02.279 to serve our clients, we're going to do just fine. 0:07:02.440 --> 0:07:06.000 Goldman's David Solomon says, after a long quiet spell, the 0:07:06.000 --> 0:07:08.600 market for initial public offerings has opened up. 0:07:09.080 --> 0:07:11.600 Nathan, it wasn't just banking leaders that we caught up 0:07:11.600 --> 0:07:14.160 with at the Choos France summit. We also heard from 0:07:14.200 --> 0:07:18.320 a world leader. Francis President Emmanuel mccron said he'd be 0:07:18.440 --> 0:07:21.040 open to the takeover of a major French bank by 0:07:21.080 --> 0:07:24.680 a rival in the European Union to deepen financial integration 0:07:24.760 --> 0:07:27.600 in the region. The Crown told the Bloomberg News editor 0:07:27.600 --> 0:07:30.640 in chief John michels Way that the European Union needs 0:07:30.640 --> 0:07:32.720 a fresh approach to business. 0:07:32.720 --> 0:07:36.600 Dealing as Europeans means that you need consolidation as Europeans 0:07:36.640 --> 0:07:37.440 your notes. 0:07:37.320 --> 0:07:40.360 So it could be cross the board, emergency forest directions. 0:07:40.520 --> 0:07:44.000 This is a totally new world and we do need 0:07:44.320 --> 0:07:48.120 this new business model for the Europeans. More innovation, more investment, 0:07:48.280 --> 0:07:53.200 single market and capital marketuion and a relevant trade policy. 0:07:53.640 --> 0:07:57.000 And that's French President Emmanuel mccron. Here the full conversation 0:07:57.160 --> 0:07:59.920 in all of our Newsmaker conversations from the Choos for 0:08:00.080 --> 0:08:02.800 and Summit on the Bloomberg Talks podcast feed on the 0:08:02.840 --> 0:08:09.640 Bloomberg terminal and at Bloomberg dot com. And as time 0:08:09.680 --> 0:08:11.440 now we're look at some of the other stories making 0:08:11.440 --> 0:08:13.400 news in New York and around the world, and for 0:08:13.440 --> 0:08:15.560 that we're joined by Bloomberg's Michael Barr. 0:08:15.600 --> 0:08:16.960 Michael, Good morning, Good. 0:08:16.720 --> 0:08:21.240 Morning, Karen. Ceasefire talks have apparently stalled between Israel and 0:08:21.400 --> 0:08:26.080 hamas it comes. United Nations confirms an AID worker was 0:08:26.200 --> 0:08:29.280 killed and another injured after their vehicle was struck in 0:08:29.440 --> 0:08:33.960 Gaza yesterday. Another AID worker was wounded a spokesman says 0:08:34.240 --> 0:08:37.520 israel defense forces were not made aware of the vehicle 0:08:37.800 --> 0:08:42.600 or its realm. Meanwhile, National Security Advisor Jake Sullivan pushed 0:08:42.720 --> 0:08:47.720 back against criticism of Israel's actions inside Gaza. Sullivan says, 0:08:47.800 --> 0:08:51.680 while they have some concerns on some of the IDF's conduct, 0:08:52.040 --> 0:08:54.640 they don't believe it rises to the level of a 0:08:54.720 --> 0:08:56.440 genocide like some claim. 0:08:56.800 --> 0:08:59.679 We believe Israel canon must do more to ensure the 0:08:59.679 --> 0:09:02.240 protect and well being of innocent civilians. 0:09:02.600 --> 0:09:05.120 We do not believe what is happening in Gaza is 0:09:05.120 --> 0:09:06.040 a genocide. 0:09:06.440 --> 0:09:08.559 We have been firmly on record rejecting that. 0:09:09.720 --> 0:09:12.440 Sullivan says the US still believes it would be a 0:09:12.480 --> 0:09:17.280 mistake to launch a major military operation in RUFFA Jerry 0:09:17.360 --> 0:09:20.680 selection continues today in the bribery trial of New Jersey 0:09:20.760 --> 0:09:24.840 Senator Bob Menendez. The Democratic senator is charged with taking 0:09:24.880 --> 0:09:29.839 bribes including gold bars, cash Anna Mercedes to help send 0:09:30.000 --> 0:09:34.360 aid and weapons to for Egypt and Cutter and to 0:09:34.400 --> 0:09:38.760 stop a federal case against a friend and businessman Menendez. 0:09:38.800 --> 0:09:41.520 His wife, Nadine, is also charged, but will be tried 0:09:41.600 --> 0:09:45.360 separately and later this summer. It has been almost two 0:09:45.440 --> 0:09:48.080 years since a mass shooting took the lives of ten 0:09:48.120 --> 0:09:50.920 people and injured three others at a New York State 0:09:51.120 --> 0:09:55.280 tops market. New York Governor Kathy Okel went to Buffalo 0:09:55.320 --> 0:09:59.680 to unveil the design for the five fourteen memorial honoring 0:09:59.679 --> 0:10:02.960 the vic MS. Hokel talked about the powerful outreach of 0:10:03.000 --> 0:10:05.800 the community immediately following the tragedy. 0:10:06.200 --> 0:10:06.960 It didn't break us. 0:10:07.000 --> 0:10:09.400 Instead, it revealed a strength that runs deep in the 0:10:09.480 --> 0:10:11.840 veins of the city, the strength of a community that 0:10:11.840 --> 0:10:15.559 finds together and refuses to be defined by acts of hate. 0:10:15.679 --> 0:10:18.360 The victims, who were black, were killed by a white 0:10:18.440 --> 0:10:23.120 supremacist in the attack. Maryland, Nebraska, and West Virginia hold 0:10:23.160 --> 0:10:26.600 presidential primaries. Today, Global News twenty four hours a day 0:10:26.640 --> 0:10:29.559 and whenever you wanted with Bloomberg News. Now, I'm Michael Barr, 0:10:29.600 --> 0:10:30.880 and this is Bloomberg here. 0:10:31.240 --> 0:10:37.959 All right, Michael Barr, thank you, nice time now for 0:10:38.000 --> 0:10:41.559 the Bloomberg Sports update. But John stash Hour, John, good morning. 0:10:41.320 --> 0:10:41.960 Good morning care. 0:10:42.080 --> 0:10:44.439 The Rangers were us second chains to finish off with 0:10:44.480 --> 0:10:46.720 Carolina Hurricanes at the guard. They our short handed goal 0:10:46.800 --> 0:10:49.839 second period from Jacob Truba took that one, upping late 0:10:49.880 --> 0:10:52.079 to the third one. They Cane scored twice in a 0:10:52.120 --> 0:10:53.960 span of just over three minutes. 0:10:53.840 --> 0:10:57.160 And they weren't done there. Miss Truber means you have 0:10:57.200 --> 0:10:59.319 the way to meet us out in front market store. 0:11:02.520 --> 0:11:04.600 Natchis to Martin Hook and it's. 0:11:04.480 --> 0:11:05.960 An offensive explosion. 0:11:06.000 --> 0:11:06.920 In the third period. 0:11:07.000 --> 0:11:09.360 Carolina has a three to one lead. 0:11:09.679 --> 0:11:10.480 Ninety nine nine. 0:11:10.559 --> 0:11:13.160 The fan Hurricanes at an empty ninner one four to one, 0:11:13.200 --> 0:11:16.120 and suddenly this series has gotten very interesting. Game six 0:11:16.200 --> 0:11:19.040 done until Thursday in Raleigh, where the Canes are tough 0:11:19.080 --> 0:11:21.240 to be. If there's a Game seven, it would be 0:11:21.280 --> 0:11:24.319 on Saturday at MSG where tonight it's the Nixon Pacers. 0:11:24.360 --> 0:11:27.160 Game five series tie to two Oklahoma City and Dallas 0:11:27.480 --> 0:11:30.400 tied to two. Oka See beat the MAVs one hundred 0:11:30.440 --> 0:11:32.560 to ninety six. Celtics now four to zero on the road. 0:11:32.559 --> 0:11:34.400 They won in Cleveland one on nine, one oho two. 0:11:34.440 --> 0:11:36.680 The Cavs had to play without the injury Donovan Mitchell. 0:11:37.000 --> 0:11:39.679 Boston got to combine sixty points from Jason Tatum and 0:11:39.760 --> 0:11:40.200 Jalen Brown. 0:11:40.240 --> 0:11:41.680 They leave the series three to one. 0:11:41.880 --> 0:11:44.280 It's opening night in the WNBA, and how much of 0:11:44.320 --> 0:11:47.520 a difference does Caitlin Clark make The Connecticut Sun Tonight 0:11:47.600 --> 0:11:51.199 hosting Clark and Indiana have sold out there near nine 0:11:51.200 --> 0:11:53.800 thousand seed Arena. It's something they haven't done since their 0:11:53.840 --> 0:11:57.480 first game ever in two thousand and three. Matt's spending 0:11:57.480 --> 0:11:59.720 the week with the Phillies, who have baseball's best record. 0:11:59.720 --> 0:12:02.160 Two James at City Field M two and Philly Mets 0:12:02.200 --> 0:12:03.600 took a four to two lead to the ninth inning. 0:12:03.880 --> 0:12:06.480 Phil's tied it off Edwin Diaz, and then one five 0:12:06.520 --> 0:12:09.280 to four in ten. The full schedule comes out tomorrow, 0:12:09.360 --> 0:12:12.680 but the NFL leaked out that opening night. September fifth 0:12:12.720 --> 0:12:15.559 will be Baltimore at Kansas City, battle of the two 0:12:15.600 --> 0:12:19.560 time winning MVP quarterbacks Lamar Jackson and Patrick Mahomes. Detroit's 0:12:19.600 --> 0:12:22.960 QB Jared Goff just agreed to a four year contract extension. 0:12:23.000 --> 0:12:25.880 He'll make fifty three million a year. Only the Bengals 0:12:25.960 --> 0:12:29.000 Joe Burrow makes more. John Stansheward Bloomberg. 0:12:28.679 --> 0:12:33.640 Sports Goldman Sachs CEO David Solomon spoke with Bloomberg's Jonathan 0:12:33.679 --> 0:12:37.840 Farrow about the federal deficit, the economy, and opportunities around 0:12:37.920 --> 0:12:40.400 the globe. Let's go to part of that conversation. 0:12:41.120 --> 0:12:43.000 The level of debt in the United States, the level 0:12:43.040 --> 0:12:46.679 of spending is something that we need a sharper focus 0:12:46.720 --> 0:12:50.520 on and more dialogue around than what we've seen. We 0:12:50.600 --> 0:12:53.040 obviously had a pandemic. We made a bunch of decisions, 0:12:53.120 --> 0:12:54.920 you know, in that pandemic, but we're long out of 0:12:54.920 --> 0:12:57.920 that pandemic, and the spending levels, you know, are continuing 0:12:57.920 --> 0:13:01.000 at a pace that I think is our debt level 0:13:01.040 --> 0:13:03.679 and creating issues for us down the road. We're obviously 0:13:03.679 --> 0:13:05.720 in an election year, so I'm not you know, I 0:13:05.720 --> 0:13:07.319 don't have my head in the sand. I don't think 0:13:07.320 --> 0:13:09.080 you're going to see that get on a lot of 0:13:09.080 --> 0:13:11.360 attention prior to the election. But I do think it's 0:13:11.400 --> 0:13:15.360 something that requires focus. We need to deal with the 0:13:15.400 --> 0:13:18.480 debt and the deficits, and you know, hopefully there'll be 0:13:18.520 --> 0:13:20.400 a lot more discussion as we come through the election 0:13:20.480 --> 0:13:21.800 and move into the next administration. 0:13:21.800 --> 0:13:23.000 Well let's give it a bit of time now, if 0:13:23.040 --> 0:13:25.320 we can. I think I often say that the United 0:13:25.360 --> 0:13:28.199 States has the privilege of behaving recklessly. Sometimes that might 0:13:28.200 --> 0:13:30.800 be the likes of the Europeans. Do not if you 0:13:30.920 --> 0:13:33.839 sense there's been any kind of pushback from the treasury market, 0:13:33.880 --> 0:13:36.920 from investors against the backdrope and this risk that we're 0:13:36.920 --> 0:13:37.840 talking about currently. 0:13:38.040 --> 0:13:41.560 The reserve currency is a great privilege, and you know, 0:13:41.640 --> 0:13:44.320 I'm not going to sit here and say that I 0:13:44.400 --> 0:13:46.240 see in the near term, you know, a threat to 0:13:46.280 --> 0:13:48.720 that in any way, shape or form, but it's not 0:13:48.840 --> 0:13:51.400 something that you can take for granted. And the United 0:13:51.400 --> 0:13:56.280 States ability to spend without constraint is not unlimited. Ultimately, 0:13:56.360 --> 0:13:59.200 the market will challenge that hasn't challenged it yet. Not 0:13:59.280 --> 0:14:01.560 saying that's something that's coming soon, but it's certainly something 0:14:01.600 --> 0:14:03.040 that we should be very cognitive of and. 0:14:03.040 --> 0:14:03.720 Very protective of. 0:14:03.880 --> 0:14:05.920 And do you think the experience of the UK company 0:14:06.000 --> 0:14:07.599 years bank was maybe a case study for what we 0:14:07.640 --> 0:14:08.640 could face in America. 0:14:09.080 --> 0:14:12.160 You know that that was a disruption to the guilt 0:14:12.160 --> 0:14:14.360 market and it's one of the things I think you 0:14:14.440 --> 0:14:17.840 need to be concerned about to risk issue I've highlighted before. 0:14:18.400 --> 0:14:20.640 You know, at the time the Bank of England had 0:14:20.680 --> 0:14:23.680 to reserve, had to reverse its course and become very 0:14:23.720 --> 0:14:26.560 accommodative to deal with that blip in the markets. We've 0:14:26.560 --> 0:14:29.480 had disruptions of the treasury market before. We certainly had 0:14:29.480 --> 0:14:32.400 a disruption in March twenty twenty to the degree that 0:14:32.440 --> 0:14:35.120 we had a significant disruption in the treasury market sometime 0:14:35.160 --> 0:14:37.800 in the future. We don't have a lot of capacity 0:14:37.960 --> 0:14:41.200 through the banking system to intermediate that. It would require 0:14:41.360 --> 0:14:44.240 very accommodative policy. If that came at a time where 0:14:44.280 --> 0:14:47.160 that was not right for the Central Bank to be accommodative, 0:14:47.200 --> 0:14:48.560 that would be a risk issue that would have to 0:14:48.640 --> 0:14:49.160 be monitored. 0:14:49.200 --> 0:14:51.400 We've had some big moves in the last three full months. 0:14:51.440 --> 0:14:53.320 I can just think about a start of twenty twenty four. 0:14:53.320 --> 0:14:55.920 We were looking ahead, so maybe seven rate cuts priced 0:14:55.920 --> 0:14:58.160 into markets from the Federalserve went all the way down 0:14:58.200 --> 0:15:00.440 to none I think Ian Hassius and team and down 0:15:00.480 --> 0:15:04.280 to two July and November. Big swings and equity markets too, David, 0:15:04.280 --> 0:15:05.920 can we talk a little bit about that. I think 0:15:05.960 --> 0:15:09.760 we're seeing ten percent swings in trition dollar names post earnings. 0:15:09.800 --> 0:15:11.880 Is that good for business? That kind of market environment, 0:15:11.920 --> 0:15:13.520 It's not what you want to see. 0:15:13.720 --> 0:15:16.520 You know, the market's the market, and you know, I 0:15:16.520 --> 0:15:19.000 think there are a handful of things that are driving 0:15:19.880 --> 0:15:24.520 these platforms to grow earnings very significantly and gain a 0:15:24.680 --> 0:15:28.720 larger importance in the overall market capitalization. These hyper scalers, 0:15:28.760 --> 0:15:31.600 as they're called, I think have enormous competitive advantages in 0:15:31.600 --> 0:15:34.280 the world that we're operating in, and it's you know, 0:15:34.320 --> 0:15:36.520 it's not been surprising, given some of the changes in 0:15:36.560 --> 0:15:39.200 technology in the last twelve months, that their market caps 0:15:39.200 --> 0:15:41.920 have accelerated, don't. I don't worry about that from a 0:15:41.960 --> 0:15:44.760 market perspective. I think markets are relatively efficient. I do 0:15:44.800 --> 0:15:48.440 worry that the structure of the equity markets, particularly in 0:15:48.480 --> 0:15:50.480 the United States, but this is true all over the world, 0:15:50.920 --> 0:15:55.480 are bringing fewer and fewer public companies, and that is concerning. 0:15:56.000 --> 0:15:56.840 That is concerning. 0:15:57.160 --> 0:16:00.480 There's obviously an abundance of capital available in private markets, 0:16:01.000 --> 0:16:04.680 but I do think it's important that we have open, accommodative, 0:16:04.800 --> 0:16:09.320 strong public markets. There's tremendous disclosure transparency in public markets. 0:16:09.320 --> 0:16:12.240 I think that's good, yeah, for our capital deployment. And 0:16:12.720 --> 0:16:15.360 you know, I am concerned that the breadth of the 0:16:15.360 --> 0:16:17.240 public markets is getting a little bit more nar and 0:16:17.280 --> 0:16:18.720 I think that's something for us all to watch and 0:16:18.720 --> 0:16:19.160 think about. 0:16:19.400 --> 0:16:22.520 That was Goldman Sachs CEO David Solomon speaking with Bloomberg's 0:16:22.560 --> 0:16:24.960 Jonathan Farrow, and you can catch that entire interview on 0:16:24.960 --> 0:16:28.560 the Bloomberg Talks podcast. 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