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daybreak: europe. i'm dani burger in london. manus cranny is in dubai. >> tonight, we all made history. this is the biggest cut in savings this congress has ever voted for. manus: president biden and speaker mccarthy's debt limit bill heads to the senate after winning house passage in a bipartisan vote. klaus signaled. fed officials say the fomc may keep the policy rate steady this month, but hikes could follow. u.s. futures are muted. asia equities are boosted, as chinese manufacturing activity for may shows unexpected strength. dani burger, good morning. i have only one question, why such restraint on risk this morning? the debt ceiling is moved

through and xaishin is upbeat. dani: it has been said before, if the debt ceiling is done we need to concentrate on the fundamentals. if they are the only reason to be chary, i'm not sure they are. manus: they are not, but remember a skip is not a pause, and a pause is not a pivot. dani: what mr., for her part, says we don't see any reason. there is different reasons for that. maybe that is why the trade is confused. this morning, we're seeing asian stocks move higher. that might just be a byproduct of the fact that we had everything tumble 20% from an all-time high. you mentioned that china data coming in better. maybe we have fallen so much now is a good time to buy. hong kong tech is up to percent. it had a bad day yesterday. u.s. futures, the s&p little

changed. tech underperforming, not surprising after the bell we got salesforce earnings ,weak protection from them. the cloud not doing as well as ai. they tumbled 6% after hours, so nasdaq futures are reflecting that trade. manus: at the short end it backed up 40 basis points over the past month. the probability of a full rate hike in june cascades lower. the market pricing just 10 basis points. the oil market up zero point 5%. we have had a tragic may, down four of the past five months, the worst since 2021, down 11.5%. as we go to vienna, opec has excluded bloomberg, reuters and the wall street journal from attending and getting into the opec press conference. therefore, that may change but if you lose control of the market on the outside of the building, you may also lose the narrative and the construct if

we're not in the building to join you in the conversation. wait wait for my invitation to arrive. two-year paper, are we waiting for the skip? leroy coming -- lira coming off of a record low. standard chartered saying they want to buy bonds on a slowdown recession and rate cut narrative going into the back end. dani: let's get to our top stories this morning. they are all out of d.c. we will talk debt ceiling with bill faries and we will discuss the fed with valerie tytel. manus: the u.s. house of representatives have passed the debt deal 314-1 17, it now goes to the senate as the deadline draws nearer. bail, the timeline for a vote in the senate, could there be any last-minute pledges? -- glitches?

two thirds of house republicans voted, democrats came on side, what is the glitch? >> pressure is easing in terms of the debt ceiling crisis. but i would still expect one or two senators to try and throw a wrench into the works in the coming days as this heads to the senate, where even one lawmaker has kind of outsized influence. that said, it would be surprising if the final legislation isn't on the president's desk by this weekend, ahead of that monday deadline for the u.s. to have the debt ceiling. dani: we also saw the fact that more democrats voted for this than republicans. what does it mean for speaker mccarthy, and his position, given the democratic support to get this passed? >> speaker mccarthy got about

two thirds of republicans in the house to vote, but that is a sizable chunk that was opposed. some of those people are lifelong opponents of the debt ceiling and have never voted to increase it in their entire career. others are taking political advantage of the fact that they knew it would pass so they could afford to vote no on something. knowing it would pass. mccarthy will face questions from the heartbreak core about whether he is the right man for the job. that said, those members don't have an alternative candidate who could win support. so before you vote to oust your leader, you have to have a good idea of who will replace him, and i don't think that right-wing core knows who that would be yet. dani: fair enough. that's bloomberg's bill faries, the saga finally over. fed governor and vice chair nominee philip jefferson signaled the central bank is leaning towards keeping rates steady in june. we also had data yesterday

showing u.s. cap openings at their highest in three months. let's get to valerie. first, take me to the rate reaction. >> the market reaction yesterday sent two-year yields slightly higher, but sox didn't like it, they ended lower. you take this net-net, you have this fed never saying a because in june is likely, alongside continually hot data out of the u.s. economy. the market is shifting to price in this fed pause in june, but more likely that the terminal rate is substantially higher and we get another hike in july, possibly more later in the year. that's similar to what we heard from jefferson. he signaled a posit the next meeting, but said it wouldn't mean rate hikes are over. manus: what about the jolts, job openings showing a hot, tight market. that is ahead of the jobs report. do these two pieces of data, are

they perhaps less important than the guidance and the rhetoric from the various fed members? >> i pick it just puts the fed in more of a pickle. we have seen nothing but strong data last week out of the u.s. but jobs opening data especially, but don't forget pce friday and a beat in durable goods were substantial. we get u.s. ism manufacturing ahead of the jobs report on friday. perhaps a hot payroll report alongside wage inflation creeping up, could be the one last thing that could change the fed's mind in june. but we have heard so much from fed members lately about this pause, is probably unlikely they have changed their tactic just from one data print given that the jobs print on friday. we did also hear from the fed's president patrick harker yesterday. he did caveat, he said he can take a skip for the meeting, barring what we see the next few

days and i think he was talking about a possible beat on nfp friday. manus: valerie tytel on the data ahead of the june fed meeting. let's look at your agenda for the day. u.k. mortgage approvals for april come in at 9:30 a.m., what do rates mean on that market? at 10:00 a.m. provisional euro area cpi data for may. dani: at 1:30 p.m. we get u.s. jobless claims, will they reflect strength we saw in jolts? the u.s. ism manufacturing figures for may come out at 3:00 p.m. if you are here in london, that will give us insight into the state of the economy. hike or pause, or pause, or keep hiking or just stop? a lot of options. we look at the fed's rate path following that hot job vacancies report. that will be next. ♪

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>> a decision to hold our policy rate constant at a coming meeting should not be interpreted to mean that we have reached the peak rate for this cycle. indeed, skipping a rate hike at a coming meeting would allow the

committee to see more data before making decisions about the extent of additional policy firming. manus: fed governor and vice chair nominee for -- philip jefferson on the reasons for a june pause in rate hikes. joining us now is viraj patel, global macro strategist at vanda research. yours will be the first voice every fx trader here's this morning, can you please differentiate for me, a skip is not a pause, a pauses not pivot -- if we skip in june, will they skip, and if they skip should there be multiple steps -- skips, good morning? viraj: to me they all mean pretty much the same thing which is this is probably a fed that is thinking about things in a more nuanced way relative to what we saw last year. if you think about where we are in the hiking cycle, every hike

now needs to matter. that is for every central bank. there is enough information out there that allows the fed to probably pause. if you look at the soft data, we get the ism, we have a lot of regional manufacturing and services data over the last couple of weeks, which is running in recessionary territory and i don't think the fed hitting ignore that despite the strength of the labor market. there is enough to pause given the mixed signals, and you have rates north of 5%, but after that it will be the data and the stickiness of inflation, but given the last inflationary report for me at least that is enough leeway for the fed to pause in june. dani: professor outlook for the fed, translate that to this bond market,. viraj: it is yields down for me. here's three -- history suggest whenever the fed pauses or

pivots, that is the last of the moves of that kind. maybe we get one or two more, but generally speaking the bond market cares about the trajectory for rates, the pace of rate hikes coming through and that is likely to be low and minimum at best. for me, i think positioning is still supportive of the idea that you have more buyers than sellers in the next six to 12 months. the next big breakout for bond yields will be lower not higher. that's largely what we see, every selloff is met with buyers, cooperating -- corroborating the idea that most people expect bond yields move lower first. then after that, we will see what happens. manus: i'm just pulled up the data from yesterday. the bund market lit up on the back of that first print from north rhine west phalia. we sometimes are always late to

the party, we are trying to write the story to justify the market move. do you think bond markets are already ahead, and pricing disinflation, one-year breakevens are back to 2% in the united states, are the disinflation trades being put on and how should i put them on now? i'm always late the parties by the way. viraj: anyone who looks at some of the leading indicators for inflation, you don't have to read that far. if you look at ppi metrics for example they have already come down pretty sharply in europe, also in the u.k. as well which is a bit of a stretch. i'm trying to search for markets where you have this idea of expectations around the pace of rate hikes looking off relative to the place of inflation will be working through the next couple of months.

it is the market getting ahead of itself and pricing elevated terminal rates especially for the ecb. we saw that reprice yesterday. there is more to come from owning european bonds relative to u.s. bonds which have priced that in. dani: is the ecb willing to do that, are they willing to stop or back off? olli rehn was speaking in a speech saying the monetary policy journey is not over yet, cory patient must be -- core inflation must be slowed before the ecb will mull easing. that doesn't sound like the ecb is ready to give up the fight. viraj: every central bank at this stage in the cycle will want to do more. but the data is telling them something different. at least what we saw yesterday. it is not one data point that will set the tone for ecb policy but generally speaking there is enough forward-looking metrics that suggest inflation is behind

us in europe. if you strip out fruit, it is even worse. the idea around the ecb having to aggressively hike rates, i see the ecb has basically three months behind the fed. we have this debate around the fed pausing, pivoting or skipping, it is time for that debate to happen at the ecb and for the bank of england despite with the latest data has been saying. manus: you are too generous. do you want to tell him who is on next, whether that frames a question for you? dani: i have trichet on in an hour. what would you ask mr. trichet, he probably would not have paused during the great financial crisis. viraj: i think the number one question is, how much emphasis do you put on current inflation versus expected inflation? that is the thinking because it feels like central banks are

taking a police -- delete -- leaf out of history which hasn't really worked. everything we have learned is that today's policy should be setting two years ahead inflation. that is the difficult bit because one has to judge how this evolves in the next 12-18 months. some central banks are doing that. we have seen that from the rv and the from of the bank of canada and others who have started to say we expect it to slow down, we don't need to do anything more. the federal put on that happened the european central bank need to follow soon as well. manus: she shortened that question down. maybe you can help me, i am a bit down. the dollar has run up on the back of the debt ceiling, i got that bit. if you reckon rates will puff out, skip, pivot, whatever by the end of the year. and does that tie up with the risk off narrative, is that why do you belong dollar? he said don't fall into the

short dollar trap. but it got trashed over the last 6-7 months. we had a reprieve in may because we didn't know we would have a debt ceiling debacle. i need to understand why shouldn't fall into the short dollar trap. if rates are cut and the fed is out of puff, why would i belong the dollar? viraj: in the sense of where we are in the cycle, that matters a lot here. when it comes to the dollar, there is one scenario that largely wants you to be long dollar -- short dollar from a for medic perspective. the rest of the world is doing well and you have an idiosyncratic issue in the u.s. and you have the divergence in differential playing out which i don't see happening at this stage. if the u.s. goes into is largely a global recession and you want to be long dollars, especially against some of the risky currencies. if i'm wrong and the u.s. has a second wind and the fed starts

hiking again, then you want to be long dollar. so there is more scenarios in paths ahead that i see the dollar winning out. i don't think it is a straight line up, it will be bouncing up and down but you don't want to be outright short dollars because you have that left tail that seems to be wagging on the global economy. dani: is the dollar then the recession trade? what is the recession hedge, should we get that global recession? viraj: in order of ranking, i like the yen over the dollar, the swissie, it changes depending on fundamentals. that is your basket that you want to be owning at various points whenever they are not that crowded. we have seen a massive bid in yen and swissie, the reason those currencies have kicked on in the last month or two on the back of recession hedges, we just didn't see that same hedge in the dollar that is why the

last couple of months have been playing out it is coming to the end of the move. now pivoting to other havens. one of my favorite crosses now is short euro-yen because not only do you extract some of that hedge against the recession risk but you get that differential where you have increasing odds of something happening in the bank of japan, cyclicality in japanese markets and that cyclical level in europe. you are looking for on pairs where both sides of the equation in the fx space works, and short height euro-yen is one of my top ideas right now. dani: any fx trader has no excuse not to be prepared for recession. viraj patel, global macro strategist at vanda research. coming up with manus and me, bill ackman says jp morgan's ceo jamie dimon should run for president in this coming election. we discuss the tweets next. this is bloomberg. ♪

dani: let's go over to hong kong for your first word news. adrian: iran has reinstalled monitoring equipment and boosted cooperation with international inspectors, even as its engineers added to stockpiles of uranium. the findings by the iaea increases the likelihood that iran will face censure. around 50 credit suisse bankers are suing swiss financial regular for rendering their bonuses worthless. a swiss federal court spokesman says they are suing over the write-down of contingent capital awards. the bonuses were based on at1 bonds which were wiped out in the emergency rescue of credit suisse. australia house prices climbed from a third straight month in

may. prices in sydney jumped 1.8%, the biggest increase in more than a year and a half, after australian cpi came in hotter than expected with consumer prices rising 6.8% in the year to april. global news powered by more than 2700 journalists and analysts in more than 120 countries. i'm adrian wong, this is bloomberg. manus: jp morgan's ceo jamie dimon just 24 hours ago hinted that one day, maybe soon he will have a political career. here is what he told us. >> maybe one day i will serve my country in one capacity or another but i love what i do. jp morgan has a great -- done a great up public americans. this is my job. manus: one of the best lines, he was a red-blooded capitalist as well. this is from bill ackman,

encouraging jamie dimon to run for president in the upcoming 2024 election. it is a lengthy tweet but this is the guts of, take it away. dani: and i just say i am flattered that anyone would accidentally call me jamie dimon. [laughter] ackman saying we need an exemplary leader, jamie dimon is that leader, there is nothing else for him to achieve. he has already been crowned the world's best banker. ok, ackman thinks that but i wonder how much name recognition dimon has in the u.s. manus: that is the point. transferability from new york and washington around the country. of course, he was a banker during the 2008 crisis. the bank was forced to take liquidity -- all the banks took liquidity -- he was around during that prices, how would

that come across? odds checker. lebron james for president, what do you reckon? dani: probably high, i would say. manus: 150:1. dwayne johnson, the rock. dani: let's go 150:1 also. manus: 100:1. jamie dimon for president. dani: got to be higher. 300:1. manus: 200:1. the investigative journalism we do on daybreak middle east is way out there. dani: i want to know what manus cranny's odds are. manus: when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block. hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price

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manus: this is "bloomberg daybreak: europe". i'm manus cranny in dubai with dani burger in london on the stories that set your agenda. dani: president biden and speaker mccarthy's debt limit bill has to the senate, after winning passage in the house. pause signal. fed officials say the fomc may keep the policy rate steady this month but more hikes could follow. u.s. futures little changed. asia equities boosted as china manufacturing activity for may shows unexpected strength. how are the alcohol brands doing? somehow earnings -- some earnings coming through. manus: remy full-year operating profit rose 16%, on a constant currency -- are not going to get it out there -- 429 million which was a beat on the estimate of 426. i mangled that.

it was a record year, we got there in the end of. would you like a brandy? dani: no, i feel like my pallet is so unsophisticated. hand me a beer or some rose, i'm pretty basic. manus: and you get the dividend on remy cointreau. you are supposed to exit all the virtues of brandy in the beautiful american bar at the savoy with a beautiful orange twist on the top. you are not going to get any dollars from the advertising career. -- crew. they are paying the dividend of two euros a share. an exceptional dividend of one euro a share. they have had that strong sales decline in the united states of america, dani. this is not good. dani: i see that. but they do see a fiscal year 2024 recovery in the second half, driven by a sharp rebound

in the u.s. that they think will start in the third quarter. i think the goal is by that time , you need to tell me what bars to go to and how to properly drink this stuff. manus: i will be in america at that stage. chinese market may keep recovering, after the country reopened following the end of zero covid policies. consumption, particularly cognac searched during the pandemic, we were locked up and had a brandy. well done to whoever put that together. quick snapshot of risk. it was a brutal month for oil, down 11.5%. you have got it trading up 0.4%, that is a relief rally as we go to the opec meeting in vienna which i should say for good order, bloomberg along with reuters and wall street journal have been excluded from the opec+ meeting. so far. we're still waiting for invitations.

what could happen is blaming the short-sellers, blaming the supply in the market. perhaps if you lose control of the narrative of what's going on in the market, then you lose journalists outside the building and it makes it tougher. oil is down 11.5%. goldman saying you need i have popped in the lira again, we have crashed through a record low in turkey. two-year yields pop higher. we are nervous. the jolts number was type yesterday despite all the rhetoric from the vice chair nominee jefferson about a skip. dani: let me take you to these equity markets. in the asia session, more positive. it was an ugly day yesterday. a tumble of 20% from highs. caixin coming in strong, that data might be helping us. s&p futures heading slightly higher.

nasdaq underperforming off the back of salesforce earnings that's all those shares dropped 6% post market, some issues when it comes to the outlook for sales it was pretty dim. we did see some risk on tones, not already priced in, the u.s. house of representatives have passed a fitbit deal 31 -- debt limit deal using concerns of u.s. debt limit default. >> tonight, we all made history because this is the biggest cut in savings this congress has never voted for. dani: joining manus and me on all things u.s. is charles myers , chairman of signum global advisors. he has a rich history in politics, over 22 years. he has worked with electoral candidates including hillary clinton in 2016 and joe biden. really great to get your view. it wasn't as rough or contentious as it could have been, who comes out victorious?

charles: but good use is -- for good news is both sides can legitimately claim victory. in politics when you have something this contentious, that is a very good outcome. i would argue that not only can both sides claim victory, there are wins for both democrats and republicans in this compromise bill. but also, the other huge positive is it moves the debt ceiling until january 1, 20 25 taking it beyond the election and remove it as an -- issue for the next year and a half. i would argue both sides win. the drama leading up to this was overdone relative to the final bill. as you mentioned, it the house and goes to the senate most likely a senate vote on saturday. a little bit of last-minute brinksmanship within the senate but it will pass well in time for june 5. dani: i feel like this happens a

lot of times, except maybe 2011, you have all this political wrangling and a few blank -- if you blink you missed the passage of the bill. there has been criticism that you have more democrats voting than republicans, does it say anything about the fragility of speaker mccarthy's s peakership? charles: he was already in a tough position, his caucus passed a bill a month ago that was incredibly punitive in terms of spending cuts they had agreed to. he had a tough job. he had to negotiate with the white house and democrats to get to a compromise bill, but he then had to get his own caucus many of whom were dead against any changes to their previous bill. the fact that 149 republicans voted for this debt ceiling bill versus one earned 65 democrats, meaning more democrats, is not a

surprise. we knew democrats would have to step in and had a responsibility to step in and ensure that this past. i would argue that it actually makes mccarthy stronger. he had to make a choice, does he fight and take us to the brink or worse, over the ex-date, or stand up to the most extreme part of his caucus and get a compromise bill done. i think he comes out looking very strong from this. manus: this is all about the road to 2024. good morning, it's manus in dubai. let's get to jamie dimon running for president. should he run? what he translate. -- wo uld he translate, would anyone in the far depths of american know or identify with jamie dimon? charles: he would make an excellent president.

we have a deep bench qualified people and the united -- in the united states that should and could possibly run for president. the history of high-profile ceos running and launching and ultimately doing well in presidential campaigns -- it's not a great track record. howard schultz of starbucks is a great example. he wanted to run in 2016 and again in 2020, barely got any traction. in our world, a bank ceo would be an incredible candidate, but i think in middle america as incredibly talented as jamie dimon is, he would struggle to get traction. dani: you have advised a lot of folks, be it for president, gubernatorial or mayoral races, let's say jamie dimon wants to throw his hat in the ring. how would you advise him? charles: i would advise him not to do it. to put this diplomatically, i

think it would be a vanity project. i think you would be terrific, i don't think you would get traction to when i go the democratic primary. you have to win over the progressive base and he would not be seen by them as an ideal candidate. manus: we are going towards 2024. will trump run, will he wins the republican nomination or run as an independent? he splits the vote, desantis get the lead and that forces the fed to cut rates to keep fighting in power. interesting scenario from a market perspective. from your perspective, will trump win the nomination, or run as an independent? charles: that is the perspective of someone who is clearly in the markets. the fed is independent for the most part, and i'm not sure they would cut rates just to help fight stay in the white house.

trump is running. he is doing much better in the republican primary than expected, that is probably because the santas had not yet announced. -- desantis had not announced. we will soon have mike pence and chris christie and will have a full primary. we will see how trump does. i think all of trump's legal problems will catch up to him increasingly. not to disqualify him but to convince more moderate republicans and donors that he cannot win the white house. i think you see desantis or someone else surge ahead. i would keep an eye on governor youngkin of virginia. the republican primary will be interesting. if i would bet today, i don't think trump will be the nominee. it will be desantis or one of these other candidates. he is capable of doing anything if it serves the zone interests. if he does, he is guaranteeing a white house for joe biden. an independent run would only take votes away from republicans

and ensure that biden-harris when the white house. dani: not to make everything about jamie dimon, but jamie dimon doing a tour of china, at the same time there is elon musk. can be really say given the fact that two ever so present business leaders in the u.s. are in china, is american business really decoupling from china? charles: now we call it de-risking because it is a little more benign than decoupling. but the truth is, we are absolutely decoupling, and de-risking, and we're seeing it on multiple levels. the u.s. will expand the tech export restriction list beyond advanced semi's, we have convinced the dutch and south koreans to join us. we will continue to deter around taiwan which is only escalatory. china is the world's second-biggest economy, it makes sense for u.s. companies that have large presences like tesla, apple, starbucks, jp morgan to

go there and engage. and to invest more, given that it is such a large economy, but given everything the ccp is doing to crackdown on their own companies, these raids on u.s. consulting companies is pretty outrageous. china has big problems, and on the corporate side with some of the exceptions i mentioned, most companies are trying to diversify their supply chains further out of china which is a euphemism for de-risk without upsetting the ccp. the overall trend is still negative but large companies that are there, it makes sense to engage and possibly invest more. manus: charles, thank you very much. you have been a good sport with the diplomacy. there you go, dani, if we want a lesson in diplomacy charles has just given it u.s.. charles myers you will be regular with us as we run to these elections. chairman of signum global

advisory let's get your business flash. adrian: u.s. job vacancies on effectively surged in april to the highest level in three months. official data showed a number of available positions climbed to 10.1 million, from 9.7 5 million in march. the reading to all estimates in a survey of economists, giving the fed more reason to consider hiking rates again. the world's largest producer of natural soda plans to list in london. the conglomerate will sell shares in the ipo with 10% of share capital available for trading. the valuation of $7.5 billion is a booth for london's ipo market. lucid is raising $3 billion in a common stock offering. the majority is coming from saudi arabia's public investment

fund. the u.s. carmaker has stumbled recently, as it grapples with heavy costs, production challenges and competition. that's your business flash. dani: adrian, thank you very much. coming up, we look ahead to eurozone cpi data out later today. whether the end of the ecb tightening cycle is in sight. this is bloomberg. ♪

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hours ago. what can we ask fact -- expect from the overall euro area today? maria: this is the number to watch out for. i say this every month, but the timing is important because you have this crucial data. the european central bank has said repeatedly it is mega-data focused and in two weeks will have that decision in june. i personally cannot believe we all are aware ready -- we are already in june. when you look at the data we had yesterday of both from germany, france, italy and spain they all have different caveats and economies, but the overall trend was a cooling down in may. put all this together, you assume, these are the biggest economies of the euro that will be represented in the number we will get today for the entire bloc. if you go on the terminal, you will see that we are expecting another decline in headline inflation and a miner decline

for core inflation. what you see is that two-speed velocity in the draw. headline inflation is dropping faster than core inflation. that is the expectation on the uber terminal. the number comes out in a few hours time. dani: what are the implications for the ecb? maria: the implications are many because the meeting is around the corner. the ecb has already downshifted from 50 to 25 basis points. we know they are not been yet. that is clear, the question is how much more? and then how much do you stay in that peak of rates? yesterday we spoke with the vice president of the european central bank who said the data so far, so good but we're not done yet. he pointed to two things that will be crucial when it comes to that decision which is the trajectory of core inflation. that has been a central theme for the central bank. but also said, we will put out new predictions and that could

dictate how we see the medium-term outlook for inflation. dani: veria, thank you very much. that is bloomberg's europe correspondent maria tadeo in brussels. and i'm going to be speaking to former ecb president jean-claude trichet in just under half an hour. a lot of questions around the 25th anniversary of the ecb, figure out, and its path -- for euro -- the euro and his path forward. manus: the nato secretary, and the u.s. secretary of state giving a joint statement. this is on the sidelines of nato. eltel he what he has been saying. all nato allies agree ukraine should join the alliance. join nato. he will travel to accra very soon on the sweden entry bid.

these are the top lines coming from jens stoltenberg. we will return to that in just a moment. okay, we will come back to stoltenberg if there is any other new lines from that news conference. jp morgan leads wall street's ai race. what else is in the running, and what are the risks? this is bloomberg. ♪

manus: the ai revolution is unfolding on wall street with j.p. morgan taking the lead. the lender advertised over 3600 ai-related roles. that is forcing its rivals to play the caps off game in the race -- the catch-up game in the race. with more is --which wall street

banks are making the most effort to adopt ai? that is a lot of jobs to offer in the past few months by jpm. >> jp morgan is ahead of its rivals at this stage. it advertised more than 3600 jobs in february through april, double what its nearest rivals were doing at citigroup and deutsche bank. the most enthusiastic banks towards ai we're told by a consultancy called evident, about 40% of jobs they are advertising at the moment touch on ai to some degree or another. that includes positions like quants, software engineers and roles in ai governance and ethics. dani: that means mathy people but it doesn't tell me what

exactly they are doing. what does it mean for banks to be using ai in these processes? >> some banks are using ai to create tailored hedging solutions, will very will -- where they will go through vast amounts of data and come up with swaps recommendations for clients. ai can consume more data than humans. deutsche bank is using ai to match our customers with particular bonds or securities. morgan stanley has just produced software which will help it analyze speeches and statements from the federal reserve and get an indication of what interest rates will do next. manus: what about the critics? what do they say of relying on robots rather than humans? >> there were some very high

profile critics. warren buffett in particular is concerned about what he calls anything that can't then be uni nvented. bank of america have raised concern about lack of knowledge about how decisions are made by ai. one of the main concerns is particularly if you are using a large language model like chatgpt, it will spit out information at the top that you don't have visibility into the information it is consuming to come to those assessments. these large language models need so much data to trade, that they are reading things like read it, -- reddit and any information on the internet regardless of its quality, analyzing it and spitting it out on this confident, assured voice. there are really obvious risks around quality from ai. dani: less than a minute. i have the biggest question that is possibly impossible to answer

in a minute. what will be different in a decade? >> analysts at goldman sachs are saying this isn't just banking, this is industries more widely but they are talking about 300 million roles that could be susceptible to automation. the big caveat to that is, all of these quality-control control concerns about ai. it may be that the more ai consumes its own output, the less reliable it becomes over time. dani: that is our finance reporter. maybe there is hope for you and i to survive the ai takeover, or maybe in 10 years time we will both be replaced. manus: they are basing the future holograms off of me for tv presenters. ♪

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