00:00It will funnel one and a half trillion dollars into U.S. or U.S. adjacent security products and processes and resilience, whatever that means.
00:17That includes rare earths, robotics. It includes probably AI as well.
00:22Joining us to talk about this is Bloomberg finance reporter Catherine Doherty.
00:25So, J.P. Morgan making some, I guess, pledge isn't really the right word because there have to be real specifics in a pledge, right?
00:32This is really a commitment and it's a sign of where they want to at least signal the investments that they're making.
00:40And this could be direct investments, whether it's loans or facilitating financing on behalf of companies.
00:47Remember, you have many different arms of J.P. Morgan that can do this in various ways.
00:52So, if you are the investment bank and you are helping with a equity fundraise or a debt sale, that is one way that the bank can commit to companies that are in the U.S. or U.S. adjacent, as you mentioned.
01:06But they can also help within their wealth arm and their asset management arm, helping their own clients get involved and invest their capital, putting their money where they say they want to commit.
01:17Which is, as you mentioned, in the United States, Jamie Dimon has been very vocal about how he is worried that there has been a shift away from the U.S.
01:28and has always advocated for a commitment to domestic companies.
01:34And this also can come in the form of defense.
01:38That's another area that you did not mention outside of A.I., technology and other U.S. commitments that would enhance security.
01:48Right. Defense, aerospace, but also energy production, also the energy grid.
01:53I mean, pretty much anything you could think of that you could link to U.S. security.
01:58And Jamie Dimon says this comes, well, it delivers an extra $500 billion of what they already would have funneled towards U.S. defense.
02:08That's right.
02:08This is an enhancement to what they already had committed, the $1 trillion.
02:13This is adding on the $500 billion to that.
02:16So it is not a new or evolving, didn't happen overnight.
02:21This has been something that has been long a commitment from the bank and, again, from its leader, Jamie Dimon.
02:28But we're just seeing really another kind of penny on top, sugarcoating, as you will.
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