The business and life of the man known as the rainmaker of rio . from bloomberg world headquarters in new york, this is "in the loop" with betty liu.
It is thursday, august 29. we are live from bloomberg world headquarters.
You are "in the loop." i am betty liu.
Serious, jpmorgan, the top stories are covered for you.
Julianna goldman has the latest on syria from washington.
Elliott gotkine is in tel aviv where israel is about to be caught in the crosshairs of a possible strike on syria.
Alix steel looks at what happens to the markets after those strikes.
Dawn kopecki has some breaking news on jpmorgan -- the probe into hiring practices in china has uncovered red flags throughout asia -- another headache for jamie dimon.
We start in washington with the top story, the conflict in syria.
President barack obama says the u.s. has concluded the regime in syria used chemical weapons against his own people but he has not made a decision on what course of action to take.
A u.k. and france favor waiting for the result of the u.n. investigation.
Julianna goldman joins us.
What is the president thinking right now?
The comments you are talking about came in an interview yesterday.
He said he was not interested in an open-ended conflict in syria, and he still has not decided what course of action to take.
All signs are pointing and he implied to some sort of military strike.
We do not believe the opposition possessed chemical weapons of that sort.
We do not believe that given the delivery sources, using rockets, the opposition could have carried out these attacks.
We have concluded this union government carried this out, and if that is so, there needs to be international consequences.
Officials will be briefing congressional leadership and cheers of the national security committee.
It is not clear if the briefings will include the classified version of the u.s. intelligence report we have been waiting for all week.
Officials say that will show why they are so sure bashar al- assad's forces carried out the attack.
It ministration will show a classified version to members of congress and the public will see a declassified version possibly as soon as today.
U.k. prime minister david cameron says he wants to wait for the yuan investigation.
-- u.n. investigation.
You have her the u.s. say the u.n. report would not be credible because it would not show who carried out the attack.
This brings back memories of the iraq war, not just for the u.s., but for britain as well.
Justification based on fraud -- flawed evidence.
This is why david cameron is running into opposition.
We understand the problem and will wait until next week for its vote on whether or not to authorize military strikes on syria.
They say they want to wait to see the u.n. investigators report.
We will not have any attack until the u.n. investigators leave.
They will probably be there until saturday.
The u.s. could act without written, but those are not -- britain, but those are not the signals the u.s. is sending with chuck hagel saying it will require international cooperation.
Who is consulting with the president?
He has a team of close advisers that go back to the 2008 cap pain.
Susan rice, denis mcdonough, tony blinken, ben rhodes, the head of the cia, john kerry, and defense secretary chuck hagel.
In israel, preparations are underway for a strike, and they say they are not preparing for fighting in syria, but if they are struck, they will respond.
Elliott gotkine, president obama's allies seem to be having second thoughts, including in israel.
Israel has never publicly advocated military action.
Israel and syria are still technically at war.
There are concerns it would be a flow back into israel if there is a u.s.-led strife.
Here in israel, people are trying to make sure they are prepared.
We know the government has approved a limited call up of reservists and there are reports that the iron dome missile defense battery and other shields have been heading north in the event of some kind of attack on israel.
Speaking to analysts, they reckon that if there is some sort of short, surgical strike, it results in a bloody nose for bashar al-assad's regime rather than some kind of regime change, israel will not be attacking.
We have heard syria will be defended against what was described as israeli and western-backed terror.
Thank you, elliott gotkine.
Alix steel has more on what an attack on syria would mean for global investors.
We could learn lessons from the past.
Right now, the strikes seem to be taking a backseat, but the question is what happens once the u.s. launches some kind of strike.
Citigroup tract what happens 20 days before and 20 days after the first strike of a conflict, and they found it is a cell the rumor, by the news situation.
You see a rally once the conflict begins in citigroup says this time should be no different.
What about commodities?
Gold usually falls off after the start of the action, but fundamentally, gold is still dealing with taper talk issues out of the fed.
In terms of crude, it starts falling right at or just before the start of the action.
I have read water research reports that have said the same thing.
You said this after -- you saw this after gadhafi was captured.
In terms of wti, it is dealing with rising inventories, so that our demand concerns separate from middle eastern concerns.
With the dollar, it refers back to the dominant trend.
The dollar should return to strength once the military intervention begins.
One caveat, syria is arguably much more complex than previous conflicts, and that means market reaction might be more muted and short-lived this time around.
Alix steel, thank you.
Alix steel, our markets reporter.
Moving and shaking this hour, twitter ceo costello, who managed to dodge the hack attack that took down "the new york times." he was able to avoid the attack with a registry lock.
The main site is skipped, but hackers able to take down twitter's british site for a time.
Bloomberg has learned a probe of jpmorgan's hiring practices in china has uncovered red flags across asia, and they have begun an internal investigation.
Dawn kopecki broke the story.
How big of a deal is this for jpmorgan and what is going on here?
It is a pretty big deal.
At first blush, it seems like regular hiring.
You hire people that are well- connected, but in some parts of the world, under the foreign practices act, it is illegal.
When the damning things is a spreadsheet it found that linked interns and new hires to specific deals they were pursuing.
They were following this internal metric to track how successful their hires were with the deals they were getting.
The spreadsheet was a smoking gun.
But that is a smoking gun.
There are all sorts of -- that is a smoking gun.
There are all sorts of lists.
One thing that is supposed to be a red flag, a politician asking you to hire someone.
That immediately sends up a red flag that they need to do extra due diligence and extra checks to make sure that person is qualified.
We know that is a requirement, or that should set internal red flags.
What has jpmorgan said about this?
They said they are cooperating fully with regulators.
The sec has an investigation.
The u.k. regulators have not yet opened an inquiry, but we know there are questions as to whether or not they violated the u.k. bribery act.
It has a much lower arm for violations.
If you hire anyone with the intent of having them make business decisions and properly to gain influence, that is illegal in the u.k.. it is a much lower bar in london and the u.k.. we know the sec, the department of justice are looking at it.
What other bodies, we are not quite sure yet.
It is still unfolding.
It is another black eye for jpmorgan.
Thank you, dawn kopecki.
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