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Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"I'm The And 1130, Bloomberg Ricky Business the Bloomberg anytime, App Business and Act. anywhere Bloomberg around .com the or world. listen Only broadcasting our on radio demand 24 app. hours Tune a in, day From Sirius at Bloomberg XM. the Bloomberg Interactive Workers Studios, this is Bloomberg Day Break for Thursday, September First, coming up today. Futures point to more losses as the Fed signals rates will be higher for longer. Jamie Dimon says the Fed should be more aggressive raising rates. Progress this morning in the wider strike against Hollywood Studios. And Speaker McCarthy wins over some conservatives to try to avoid a government shutdown. Donald Trump's New York hush money criminal trial gonna overlap with the state's presidential primary and new allegations against former mayor Rudy Giuliani from a former White House aide. I'm John Tucker, those stories straight ahead. Stash hour sports in weekly. The NFL begins tonight with the Giants at the 49ers. The Mets won the Yankees lost. That's all straight ahead on Bloomberg Daybreak on Bloomberg 1130 New York Bloomberg 99 1 Washington DC Bloomberg 106 1 Boston Bloomberg 960 San Francisco Sirius XM 119 and around the world on Bloomberg radio .com and the via Bloomberg Business. Good I'm morning, Nathan Hager and I'm Karen Moscow. US stock index futures lower this morning. S &P futures down are four tenths of a percent on 18 points down futures down a quarter percent or 85 points. NASDAQ futures down six tenths of a percent or 89 points Nathan. Karen central banks once again our major focus around the world following yesterday's Fed decision Jay Powell and company kept rates unchanged but signaled they're going to stay higher for longer. We're prepared to raise rates further if appropriate and we intend to hold policy at a restrictive level until we're confident that inflation is moving down sustainably toward our objective. that held their Jay target Powell range and the Fed while updated quarterly projections showed most officials favored another rate hike this year. policy makers also see less easing next year. Well after that decision Nathan former New York Fed president level. Bill Well Dudley said there's work to do to get inflation down to two percent. There have been a little bit of upward movement People's estimates of the long -term federal funds rate in this summary of economic projections and first again in this June month. So what basically the Fed is concluding is many moderate policies not quite as tight as we think it is. And Bill Dudley is now a Bloomberg opinion columnist he added that he thinks a rate hike in November would be surprising. Well Karen one Wall Street Titan says the Fed needs to be more aggressive JP Morgan Chase CEO Jamie Dimon says the Fed may have to keep increasing its benchmark interest rates to combat consistent inflation. Speaking in Detroit yesterday Dimon said the central bank was quote a day late and a dollar short and rapid increases over the last 18 months have just been catching up. Well we get another major policy decision later today Nathan the Bank of England will decide whether to call a halt to the string of 14 consecutive interest rate increases and Bloomberg's Lizzie Burden has the preview from London. The chance that the Bank of England slams the brakes on its fastest run of rate hikes in decades today rose after yesterday's happy inflation surprise. Still a quarter point height does remain on the table with wage growth hot and inflation expectations raging. All eyes will be on the guidance surrounding today's decision to gauge whether if the Bank England of does hike this will be its last. The question being are we at the peak of table mountain as the governor and chief economist have hinted Lizzie Burden Bloomberg radio okay Lizzie thanks back here in the US a possible government shutdown is less than 10 days away but House Speaker Kevin McCarthy is reporting some progress in negotiations we get the details from Bloomberg's Amy Morris in Washington. Speaker McCarthy won the support of a few hardliners last night as he worked to pass a short -term spending bill to head off a government shutdown after the closed -door meeting that lasted more than two hours McCarthy was still short the votes he that needs to pass a GLP spending measure a measure that has no chance of passing the Senate but he says they are closer and if he does succeed the measure would at least set parameters for a possible negotiation with Senate the on federal spending. In Washington I'm Amy Morris Bloomberg Radio. Alright Amy thanks point well in a major the Capitol Hill spending fight will come into focus when Vladimir Zelensky comes to Washington the Ukrainian president will be on Capitol Hill this morning pushing for a new weapons package but Speaker Kevin McCarthy says his fellow Republicans have questions. These are hard -working taxpayer dollars I want to make sure there's accountability where the resources are going I want to see a plan of what we're looking for for victory and I think members will sit and have their questions as well. Speaker Kevin McCarthy is under pressure from far -right conservatives who want to end US assistance the White House says it's confident the vast majority of lawmakers still support Ukraine aid and seeing Zelensky in person could dampen any opposition. That's what's happening in the war now Karen Russia just launched its most intensive missile barrage this month the mayor of Kiev says at least seven people were hurt when at least 20 missiles were shot down seven others were hurt in a strike on a hotel in central Ukraine Russia meanwhile reported 19 Ukrainian drone attacks on Crimea well Nathan we have new developments now involving two major labor disputes across the country the Writers Guild of America and the group major Hollywood studios will meet for a second day sources say the studios have agreed to one of the unions major demands additional payments for the success of TV shows on streaming services the guild will give its response later today well there's not as much optimism involving the auto workers strike Karen a union negotiator says Lanta says new contract offered to the United Auto Workers lacks job security guarantees UAW will now have a Facebook live event tomorrow morning it's likely to discuss whether additional plants will face strikes well let's turn to Wall Street now Nathan shares a FedEx of five percent in early trading the company posting profit that beat analysts estimates and company the raising its earnings forecast we get more from Bloomberg's Doug cutting earlier this year the company announced a multi -year restructuring to reduce cost and improve efficiency by six billion dollars but that's not the whole story FedEx added customers who switched from UPS its its main rival on concern over a potential strike and on top of that the freight unit of FedEx picked up some volume from trucker yellow corporation you might recall yellow declared bankruptcy in early in New York I'm Doug Krizner Bloomberg radio alright Doug thanks for also watching shares of Broadcom they're down more than five percent the information is reporting the Google executives are discussing dropping Broadcom as an AI chip plier as early as 2027 and finally Nathan and that didn't last very long Instacart delivery giant the grocery that soared as much as 43 percent in its trading debut two days ago has now lost roughly all of those gains the stock fell nearly 11 percent yesterday and closed just 10 cents above the $30 level its initial public offering time now to take a look at some of the other stories making news in New York and around the world and for that we're joined by Bloomberg's John Tucker good morning John and Nathan Donald Trump's New York hush money
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Meaning the US has been very honest that they would want to see that extension really of the Abraham Accords that were done to the Trump administration where you saw a number of Gulf countries, notably the UAE, have these normalized ties with Israel. Travel started, embassies opened, lots of commercial ties came to fruition after that, but they're just not there yet. There's a number of that have to happen. But it's still on the table and it's something that could happen. I just think potentially we're a little over our skis if we think that might happen at this UN General Assembly before or the year is up. I think that a lot of work needs to still be deciphered through and then they really need to they're selling it to their constituents. So when we're talking about selling things, and this goes back to the Ukraine issue, which you said is going to be high on the agenda for Biden, I just wonder how much harder that job is in a body like this one full of those who come from different countries and are looking in on the US and the conversation happening here in Washington, on Capitol Hill around continued funding for Ukraine. And what that does to the president's position as he's make trying to the case that other countries should be still engaging, still funding, still trying to support the war when it's clear that not everyone here in Washington is with him on that. It's going to be challenging for the president because he's going to want to come to the podium and he's going to want to be so forthright about America's stance in supporting Ukraine. At the same he will be in New York City at the UN giving this speech. There's going to be debates behind Congress, closed doors, whether or not they're going to sign off on his request and the supplemental funding for aid for Ukraine. It does look like the Senate wants to go forward with that, but in the House it's really anyone's guess on how it gets done. Does McCarthy have to remove it from the supplemental, put it with maybe border concerns to make sure the hard right flank of his party joins in and votes for it? Because they see something enticing and border money and potentially some controversial, what the Democrats would call, controversial asylum provisions. So, Ukraine is this issue where not just in Congress but on the debate stage, Republican candidates, you see people taking different points of views and President Zelensky is going to be really honest when he's also in New York next week and he wants to make this case for a peace formula plan. and then Reuters is also reporting that he's going to come to Washington to have another meeting with the President and the timing of course is interesting. Zelensky obviously sees and is privy to the debate that's ongoing America in on how long and how much Americans are willing to fund and support Ukraine. Looking forward to all of your coverage of UNGA, Bloomberg's Anne -Marie Horden, our very own chief Washington correspondent for Bloomberg Television, and Tom, we'll send it back to you. Thank you, Kayleigh. That was Bloomberg Sound On co -host Kayleigh Lines reporting from our Bloomberg 99 .1 newsroom in Washington and you can hear sound on weekdays 1 to 3 p .m. on Bloomberg Radio. Coming up on Bloomberg Daybreak Weekend, interest rates also in focus overseas. We take you to London to preview the Bank England's of policy decision this week. Global market news changes in an instant, so don't miss a minute. Listen to Bloomberg Radio anytime, anywhere around the world on the iHeartRadio app. Tune in. The Bloomberg Business app and Bloomberg .com. This is a Bloomberg Money Minute. Luxury brands are hoping to be a cut above the rest on the market. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Spot zero one percent this morning. There's the markets our top stories the Labour Party is making an increasingly aggressive bid to claim the Conservatives mantle as the party of business. Speaking to Bloomberg's UK politics podcast the shadow business and trade secretary Jonathan Reynolds was clear on what he believes are the risks for companies the policies Labour is offering across the board when it comes to the economy and to business it is simply a far more compelling offer than anything the government have put forward. The risk premium most for businesses is a continuation of the Conservative government rather than a change to the Labour Party and we've worked very hard at that but obviously we need to continue to not be complacent to continue that work to work on the detail which is so important in these making policies work and we'll absolutely be continuing to do that. Jonathan Reynolds also discussed Labour's plans for a long term industrial strategy he says Labour's industrial strategy council would have the same place in policy -making as like bodies the Committee on Climate Change or the Office for Budget Responsibility. You can hear that full interview with the Shadow Business and Trade Secretary on the latest episode of the UK Politics podcast on Apple, Spotify or wherever you listen. The Bank England's of top policymakers say that UK interest rates are near the peak. Deputy Governor John Cunliffe told MPs we may be at the pivot point. The evidence is mixed and we are getting mixed signals about the economy now which is what you expect when you come into periods where you might be close to turning The pound fell to a three month low against the US dollar on the comments from the monetary policy committee. Members to MPs, the head of the central bank added that the ONS's major upward revisions to UK GDP growth are perhaps a help explain in inflation surprises in the past year. The US economy and labour market slowed in July August. and The Federal Reserve's beige book survey of businesses suggests monetary policy is affecting demand. increased. Former St Louis Fed President James Bullard says policy makers should plan for one place this year. It's probably wise from a risk management perspective and probably necessary based on the data that we've gotten that they keep that extra rate hike in there. James Bullard added he still sees a risk that inflation could move slightly higher. Futures markets are pricing in almost no chance of a rate hike at the Fed's next meeting in two weeks. Apple has suffered its worst stock decline in a month following news Chinese that government agencies have barred staff from using iPhones at work. China is the tech market's largest international market, and the firm also relies heavily on the country as a manufacturing partner. Back in 2022, Beijing ordered some agencies and firms to replace foreign branded devices with domestic alternatives within two years That news from China, one of the major market moving stories. Today we'll into be digging that next with our market supporter Valerie Titel. She'll also be bringing us more on the reactions that hotter than expected ASM services print in the US and what it means for the Fed. Stay with us for that. This is Bloomberg. Theuserman not completing high school is more of a social thing than it was an academic thing. Even though all these years have passed, I still had that longing to have my diploma. At age 30, Karissa finished her high diploma. school If you're even considering getting your high school diploma, you can do it. No one gets a diploma alone. If you're thinking of finishing your high school diploma, you have help. Find free adult education classes near you at finishyourdiploma .org. That's finishyourdiploma .org, brought to you by the Dollar General Literacy Foundation and the Ad Council. Today, Michael McKee speaks exclusively with New York Fed President John Williams. We're going to have to do what's necessary to bring inflation down to two percent. Does the Fed still need to
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"The inflation debate continues. This Broadcasting is Bloomberg Radio, Bloomberg 24 Daybreak the hours Bloomberg here for a this Business day Friday at App Apple's the Bloomberg and 5th .com of August core takes in and London a the hit. Bloomberg coming up Business today. iPhone sales slump as revenue declines yet again. Higher for longer, the Bank of England Governor Andrew Bailey says it's far too soon to bet on a rate cut. Making his case, Donald Trump pleads not guilty to obstructing the 2020 election and the bird has flown the nest. We speak to one of the designers of the iconic Twitter logo after it was replaced by X. That's all straight ahead on Bloomberg Daybreak Europe on DAB Digital Radio London Bloomberg 1130 New York Bloomberg Bloomberg 99 .1 Washington DC Bloomberg 1061 Boston Bloomberg 960 San Francisco Sirius XM channel 119 and around the world on BloombergRadio .com and via the Bloomberg Business App. Good morning from London, I'm Caroline Hepker, you're listening to Bloomberg Daybreak Europe live from London this morning. Let's start with the markets check as we do throughout the day here on Bloomberg Radio. Chinese stocks are up with the PBOC pledging to support the economy. The Hang Index this morning gaining nine tenths of one percent right now. We've seen a surge in long -term yields. Study of yields trading this morning at 427 down a basis point easing off a little but we do have the levels numbers ahead. Treasury yields on the 10 -year easing to 417. Nasdaq stock futures are climbing half of one percent higher despite the disappointment over Apple. Sterling fell initially after of the Bank England's 25 basis point hike but then recovered. The dollar this morning is flat taking a breather after a four -day rally and oil is headed for a sixth straight weekly gain. So those are the numbers in the markets that we should think about. But also just breaking on the Bloomberg terminal this morning results from Khedi Cole. Second quarter net income comes in a beat at 2 .04 billion euros. The
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Yeah absolutely and I think it goes very much to sort of government policies and the idea that you know the commitment to net zero by 2050 may be softening maybe you know the evidence of how difficult it might be to achieve that is becoming clear. I think to have that sort of report also the kind of stark issue of how the climate changing is affecting the UK I think it's very interesting for the Met Office. Yeah certainly is well let's get more detail now on our story that advisors to the Chancellor Jeremy Hunter concerned the Bank with of England going too far in raising interest rates and pushing the UK into an unnecessary recession. Our UK government reporter Joe Mayes joins us with the details now. Good morning to you Joe. These are members of the Chancellor's Economic Advisory Council. They include the likes of former Bank of England Chief Economist Andy Haldane. What have they been against according to your reporting? Yes it's important to stress these aren't members of the government but our reporting shows that there is a consensus view in this council which is that the Bank of England might go too quickly in terms of rising interest rates in the coming period and that could overdo the inflation bite and risk triggering a recession. So that's a view that's developed in that Advisory Council and senior officials in the Treasury are taking that seriously but that's what our reporting shows. Yeah I think it's an absolutely fascinating bit of reporting and the advisors include Haldane but also Anna Valero for the London School of Economics, you've got the chair of GSK is one of them, Egym's Wadhwani Sushil is also another Karen Ward from JP Morgan Asset Management. I mean these are very interesting and influential figures. What's their reasoning in your view Joe Mays? So I think their reasoning is that it looks like inflation is on the way down and if you look across the Atlantic you can see the numbers in the US coming down. I think there's a view that the UK is on a similar and path their worry is that given that if interest rates do keep going up and there's that lag effect the way in which interest rates actually affect the economy then we could end up in a scenario where inflation has come down by a significant amount come to the end of the year following the US and then the interest rate effect kicks in and it goes too far and we would have gone beyond what's necessary given that the inflation that's very easy. Rishi Sunak and Jeremy Hunt have repeatedly backed the Bank of England's efforts to bring down inflation. Does this open the door to a potentially more critical approach from the government? I think it's important to stress that the Treasury keeps saying and in response story to our they said that they are fully behind the Bank of England's approach and that that message has been consistent throughout so there's no kind of public device here with Governor Andrew Bailey. But in terms of where there might be more critical approach, in this very difficult world of how does the government communicate with the central bank about they whether want to change tack, they're very aware of the independence of the bank so if there is going to be a change of approach it will be very subtle. Jeremy Hunt has these private meetings with the government about Andrew Bailey, maybe in that kind of forum with the nod and the wink this kind of thing who he talks about. It's very sensitive how governments communicate with the central bank. Yeah absolutely. Politically though a recession early next year would be very badly timed the for government given when we need to have a general election buy in the UK. Could that mean they put pressure on the Bank of England over interest rates? I mean that's exactly issue. the You can see from Jeremy Hunt's perspective if he agreed with that analysis of the Economic Advisory Council then he would be very concerned that that interest rate effect could hurt the economy in a way that really damages the electoral prospects of the Tory party. So what do you do about that if you're the government? You know I think that is are what in we that world of using some kind of discrete method to perhaps convey a slight concern to of the Bank England that maybe they might want to go a little bit slower. Yes you can see this because there's a part of the English government perhaps doing that but without being too overt about it. Okay Jo Mays, RUK government reporter thank you very much for that. absolutely Yeah a fascinating look into the UK advisory group worrying about of Bank England risking overdoing its inflation fight. Let's turn our attention now though to Reserve the Federal which has raised interest rates by another 25 basis points to the highest level in 22 years and chair Jerome Powell left open the possibility of further hikes. Our economy editor Jill Deesis joins us now for more. Jill good morning we got that hike the one that we expected the one that markets it's expected how clear now is the path ahead for the US. Right I'm not sure the path ahead is incredibly clear at all so what we heard from Jerome Powell today you know as you said he left open the possibility of future hikes he absolutely refused to be pinned down on whether that hike might come in September which is the next meeting for the Fed. Remember just a few weeks ago you know we saw the Fed's dot plot for the rest of the year which certainly implied that there is at least one more hike before the end of the year but ultimately what we're looking at now is a lot of data that's coming in between this meeting in July versus next the meeting in September there's a longer interval of time between these two meetings during which a lot can happen so for all we heard today which was you know just preserving that ability that Powell wanting to preserve that ability to raise rates again you we'll know have to see what happens Jill the market reaction overall was was quite muted but was there was some attention paid to Jerome Powell's comments that inflation wouldn't come back to target until 2025 yeah so I mean I think that um what Marcus were looking at there was ultimate sorry just a second um yes I mean I think that ultimately like what was you know what we I'm sorry I'm getting a little bit of interference on the lines okay let's let's come back to you in just a moment sorry Jill's obviously having a bit of a tech issue um yeah so in terms of uh Jerome Powell and the 25 basis point rate height I suppose the issues around the outlook for the US economy and what comes next and we've also got a great deal of data today to come actually from the US yeah that's right and that's going to be something that you know just hearing there from Jill is that that is really the key thing to be watching out for now this data dependency comes back again too but this idea of the 2 % inflation target being possible without big job losses but very soft very likely Jerome Powell saying that the softening of the labor market is ahead as well it's interesting to reflect on the fact that that that was kind of one of the within our one of the things that they they flagged that this idea that the the 2 % target now is a 2025 as opposed to a 2024 one as well or more likely to be achieved at that stage too interesting too to note the comments about the future path for the US economy as well this idea of recession expectations being dropped from what is kind of within the Fed's view yeah absolutely no and you've also got the impact on the dollar you've got to think about that third day in a row where you see the dollar falling so actually the losses for the year more than three percent even though you've got interest rates arising in the US and actually a lot of kind of dollar bears out there taking from this your alliance and seeing M &G investments also who see a slowing US economy essentially and so therefore that would hit future rate hikes from the Federal Reserve okay let's get a Stephen young errands good morning and you thank in Ukraine armed forces have begun a major push in the south of the country as they attempt to win back territory from Russia the
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"So yeah, I mean, it's not values about size of government or programs, particular although there's still conservatives who have preferences about those things. It's about these ideas of never compromising, going hard after Democrats, going hard after liberals, supporting Donald Trump, supporting other controversial Republicans. And it's not about policy. And therefore, when they lose over policy, which they're going to do as a result you do see the GOP changing and the Republican Party turning away from what we would consider the traditional sort of Reagan esque Republican Reagan esque conservatism. Is there any way the pendulum is going to swing back? That's the million dollar question about US politics in a lot of ways. Political scientists tend to think that parties will care about elections enough that if they lose a bunch of elections they moderate. We'll see. Republicans certainly have not moderated after the 2020 election. the Part of problem for the Republican Party is that because Republican -aligned and Fox because News isn't damaged when Republicans lose elections, they in fact probably Republican books sell better with a Democrat in the White House. So there's a real breakdown where it's not entirely clear that the electoral incentive, which is the big thing thing that causes that parties to try to reach to the center, to reach to as many people as they can, whether that's still working for Republicans. And that's scary stuff. Bloomberg opinion columnist Jonathan Bernstein also covers politics and policy. Now coming up, we're going to take a look at what one company is doing to discourage meetings. Bloomberg radio on demand and in podcast your team on the Bloomberg surveillance podcast, a conversation with Muhammad O University of Cambridge. So all three are going to hike by 25 basis points, but where the commonality will end. I think the Fed will come across as dovish. The Bank England of will still be quite hawkish and the ECB will be in the middle in terms of the forward policy guidance. The framing matters if I go to your framing, which is to adopt the excessive data dependency, which is where the Fed is today. And if I stick to a 2 % inflation target,
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"I am on Broadcasting Apple, the founder of Spotify, 24 Ridgewater. and hours anywhere Kristalina a you day Gorgueva, get your at podcasts. Bloomberg IMF .com managing and director. the This Bloomberg Bloomberg Business is Talk, Bloomberg Act. Daybreak subscribe here for this today Wednesday on the 19th of July in London. Coming up today... Cooling UK inflation drives down bets on Bank of England hikes. Charged up, Tata picks Britain for its new battery plant. We have exclusive reporting. Light at the end of the tunnel Wall Street sees a number of hope for an investment banking revival. Plus Hong Kong pay rise. The hunt for talent means a 30 % salary hike for new bank hires. That's all straight ahead on Bloomberg Daybreak Europe on DAB Digital Radio London. Bloomberg 1130 New York. Bloomberg 99 .1 Washington DC. Bloomberg 1061 Boston. Bloomberg 960 San Francisco. Cirrus XM Channel 19 and around the world on BloombergRadio .com and via the Bloomberg Business App. Good morning from London, I'm Caroline Hepker. And I'm Lizzie Burden. You're listening to Daybreak Europe live on London DAB Radio. So let's start by looking at the daybreak. DPI print pulls sterling down half of one percent. One twenty nine sixty six bonds gained two year guilt yields are down by seven and a half basis points. We trade at five spot zero one US yields at four seventy one also down by six basis points. In terms of European markets, we actually see a jump now of three almost four tenths of one percent for European stocks. Thirty one hundred also taking off up by eight tenths of one percent fifty two fifty up by one point eight percent as bets for the rate hike in August from the Bank of England come down to thirty seven basis points now. Just the other markets that we're watching for you. Bloomberg dollar spot index stronger two tenths of one percent and US stock futures are also in the green. Those are the markets Lizzie. Now to our top stories. Britain's inflation rate slowed more than expected in June. on year Year CPI rose by seven point nine percent last month as a sharp drop from the eight point seven percent reading in May. Core inflation also fell to six point nine percent from seven point one percent suggesting the quickest series of interest rate increases in three decades may be starting to rein in soaring prices. The downside surprise could tip the balance in favor of a twenty five basis point hike when the Bank England's of policymakers meet to set rates next week. Tata has announced a four billion pound investment to build a gigafactory in Somerset. The news reported by Bloomberg yesterday would create one of Europe's largest battery makers. Bloomberg's James Walcock says it's being hailed as a major win for Rishi In a global fight for subsidies, you are seeing the U .S. and Europe devoting large amounts of money, time and attention to winning these kinds of companies over. And the U .K. government will very likely be pointing out the fact that the company that Tata chose the U .K. over Spain in a victory for both over another European to the European country as a sign that they have been able to convince a business to locate in the U .K. despite Brexit, despite negativity, despite fears around inflation, nevertheless they persevered. James Walcock added that the plant is expected to receive hundreds of millions of pounds in government subsidies. comes It as the U .K. has struggled to attract significant auto industry investment Number of profit warnings issued by U .K. listed companies has risen for the seventh consecutive quarter. Companies listed on U .K. exchanges issued 66 profit warnings in the second quarter as surging inflation and rising interest rates squeezed margins, according to the report by Ernst & Young's strategy Parthenon. firm EY Eighteen percent of U .K. listed companies issued a profit warnings in the last year alone. Excluding the pandemic, that's the highest level since 2008. Now Wall Street giants are finally seeing signs of a life in their capital markets businesses. Bank of America and Morgan Stanley joined JP Morgan and Citigroup in beating analysts' expectations for equity underwriting revenue in the second quarter. Speaking to Bloomberg, Morgan Stanley, chairman and CEO James Gorman, said so that things are also looking up for investment banking. Mm CEO I'm talking to has tilted to a more forward -looking posture, so I think deals will start getting done. Whether they happen in the back half of this year, I'm not so sure. It might be next year that it comes, but it will definitely be. It will be during next year when we see it, if not this year. Second quarter quarter profits at the bank run by James Gorman fell 13 % to $2 .18 billion. That contrasts with rival Bank of America, which saw its second quarter profits saw revenue from fixed income currencies and commodities trading rose 18 % to $2 .8 billion for Bank of America. Microsoft shares hit an intraday record on Tuesday after the software giant gave pricing details for corporate its artificial intelligence products. Microsoft 365 co -pilot will cost $30 dollars a month per worker on top of what most business customers already pay. Bloomberg Intelligence's Anna Raghuramna says the price is high but he expects firms to pay it. At the end of the day this is a company coming that's up with products way before then anybody else is trying to figure out their strategy. So I think this just shows that Microsoft is well ahead of this game compared to the other software vendors. And it's not just the Office suite. I mean this really has direct impact on their cloud business. Anna Raghuramna says Bloomberg Intelligence does expect the subscription cost to come down as AI technology development ramps up. And finally a US soldier has been detained in North Korea after crossing over the heavily armed border. It's reported that the 23 -year -old intentionally traveled from South Korea in an apparent effort to escape being sent after being charged with assault. The US Defense Secretary Lloyd Austin says that he's concerned for the by the soldiers next to Ken and engaging to address this incident. So US Defense Secretary Lloyd Austin speaking there. Now Americans detained in North Korea are often sentenced to years of hard labor but typically are released several months later. Those are a few of our top stories this morning how about a pay rise? Oh any time Caroline. no Yeah one says no to that. 30 % though if you're in Hong Kong they've seen such an exodus of talent that starting salaries is beginning to shoot up and it's especially for financial services for tech jobs so yeah it's it's seen a big jump in in the big in the last few months anyway. 30 % for a new recruit that is enormous and you can see as well that the border reopening with given the industry a big boost this is not exactly what you want in an inflationary world however. No indeed but I suppose if you're trying to compete with Singapore then you have to do your best. I mean look salaries are still typically higher in Hong Kong than Singapore but you know we've had loads of stories about the number of bankers being hired in Singapore and you also see that in Hong Kong that kind of rush for talent the need for workers means that the jobless rate is at a four -year low 2 9 percent had a tough time during the pandemic the borders open between Hong Kong and China now though so that has also changed matters. Caroline well that is a very interesting story there's only one story on my mind in my other hat as UK correspondent I have to say this inflation number for the UK really is a big deal the first downside surprise we've had after four upside surprises this I hear can the cheers coming from the Bank of England across the road from where we are and from number 10 Downing Street of course Prime Minister's top priority to have inflation by the end of the year and so CPI yes dropping to 7 .9 % from 8 .7 % last month I was just speaking to John Glenn the chief secretary to the UK Treasury along with Anna Edwards on Bloomberg TV he says
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
".4 % as well. We've had that news in the past few minutes about traders fully pricing in a six and a half percent peak rate for the Bank of of England by March that has been the high that would be the highest since 1998 in comparison to wages of just course we saw the last five percent of a peak just a couple of months ago so after that news we've seen UK gilt yields moving higher this morning the two -year year yield up by six point nine basis points now to five point four three percent the ten -year yield is four basis points higher this morning four point five at three percent the pound is a tenth of one percent stronger on cable 127 .15 the euro is 210 stronger against the dollar 108 .71 as the Bloomberg dollar spot index is a tenth of one percent lower that is your Bloomberg radio business flash well let's turn to another story here in the UK the financial contract authority meeting with the bosses of the biggest UK banks over concerns their firms are being too slow to pass interest rate increases on to savers our UK correspondent Lizzie is Burton with us this morning for more on this morning to you Lizzie this has become a growing political issue because of savings because of mortgage rates going up but savings rates not keeping pace exactly and you know that of the Bank England has hiked rates at the fastest pace in three decades and it's become political because of course it's the government's top priority to have inflation by the end of the year so the government's under pressure to complement of the Bank England's military policy if not with fiscal policy by putting pressure on banks and supermarkets energy providers the telecoms industry and so
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"A free military veterans guide to navigate your caregiving journey and and better care for your loved one and yourself brought to you by AARP and the ad council markets headlines and breaking news 24 hours a day at bloomberg .com on bloomberg television and the bloomberg business app this is a bloomberg business flash. you it's just coming up 622 two in london good morning i'm steven carroll this is your bloomberg radio business fast let's start with the latest news out of the french carmaker reno now upgrading its full year earnings guidance thanks to strong sales momentum from new models like its austral crossover growth operating margin expected to be between seven and eight percent up from a previous goal of six percent or higher that's the news news coming out of reno this morning looking more broadly at the where Asian equity markets are moving we've got the MSCI specific index down by three tenths of one percent the Hang Seng is underperforming they are down by one point three percent the csi 300 index of chinese shares is three -tenths of one percent lower the Nikkei in Tokyo though is seeing some gains up by four tenths of one percent the Yuan is in focus after the PBOC stat it's stronger than expected fix for the currency on the offshore rate it's down by a quarter of one percent it's a week or rather a quarter of one percent this morning so that is one of the currency moves that we are watching we're also keeping an eye on the Japanese yen which a is touch weaker 144 .58 after we heard from Kazuya Ueda among the panel of central banks in Sintra yesterday dollar the Bloomberg spot index is two tenths of one percent stronger this morning European stock futures are a touch weaker down by by a tenth of one percent for your stocks 50 futures Wall Street futures though seeing a little bit of positivity up ever so slightly after finishing down at the end yesterday for this S &P 500 anyway looking at the Treasury yields the two -year Treasury of three basis points higher this morning four point seven four percent oil prices though looking a little bit weaker Brent crude stand by three quarter two thirds of one percent at seventy three dollars and fifty five cents that is your Bloomberg radio business flash now the governor of the Bank of England has hinted that interest rates could remain at peak levels for longer than traders currently spect under Bailey was one of the many central bankers speaking at the ECB forum in syndrome Portugal our UK correspondent joins us now for more on this Lizzie good morning to you what did Andrew Bailey have to say so he noted that the markets are currently pricing in more hikes so peaking below six point two five percent by February although they do see a one in five chance of six point five percent earlier and his response to that he said is we'll see but he said that inflation's persistence is down to the type labour market which is more down to the response to covid than it is to brexit it was also interesting to hear from hugh pill the chief economist of the Bank of England he struck a quite self -critical tone he said that the central bank's assumptions have become unworkable in a crisis because they underplay the interaction of high energy prices with this tight labour market and this is as we know the bank is looking again at its models okay this at the same time we've seen Schroder's re -pricing where it sees a peak for K -rates yeah well where Bloomberg economics leads others follow they of course called a recession earlier this week they see it coming in the winter Schroder's too sees a recession coming this year they actually see a higher peak rate for interest rates though of 6 .5 % and they say this is because the bank of England clearly is prioritizing fighting inflation over protecting growth they say that last week's half -point hike shows the Bank England of has been shaken and that's what Bloomberg's Callum Pickering says in a note that's just landed in my inbox as we were speaking he says the Bank of England has a credibility problem and that raises the risk of over tightening we're going to see more on the impact of higher interest rates so far in the UK from the Bank England's of mortgage approvals later that drop at 9 30 a .m. this morning yes indeed we'll bring you details of that here as well but interesting to what hear Baron Berg's Callum Pickering is saying on that Lizzie at the same time we've had the government continuing its efforts to try and convince companies to stop passing on price rises to consumers any sign of progress there yeah the Chancellor of the Exchequer Jeremy Hunt met regulators yesterday regulators for telecoms water energy banks and supermarkets and they've agreed to step up efforts to make sure that consumers are treated fairly all sounds very nice but Rishi Rishi Sunak was really criticized about this by Keir Starmer the opposition Labour leader yesterday Prime at Minister's questions he says it's too soft an approach and you have to ask and indeed economists are asking is the government just trying to be seen to help here that's what Vicky chief economic advisor at the Center for Economic and Business Research says she says it comes down to politics and optics really just wanting to show that the government's doing something to match the monetary action of the Bank of England okay Lizzie burden our UK correspondents thank you very much now Andrew Bailey wasn't the only hawkish -sounding central banker at the ECB event in Sintra Jerome Powell also signaling potential the for two more rate hikes to come from the Fed our market supporter Valerie title is here with us for more Valerie was this a shift in position from Jerome Powell it was definitely a new comment from him when he said that the Fed could go back to back -to -back hikes because many of us expected that once he stepped down this pace that perhaps he'd keep on continuing it as in he'd go every other month until until they get those two hikes sometime later in the year but he his comments that perhaps the strong data we've been getting out of the u .s. if it leads to stronger inflation and still a hot labor market that they would be willing to go to back to back hikes and it's though funny you look at how the market reacted yesterday to those comments and it didn't necessarily trade them in a hawkish angle but even it is quarter -end this week it is month and this week there's a lot of bizarre price action that goes on so maybe it's hard to pick apart just how serious the market took those comments yeah very interesting this must have been like Christmas for you Valerie with a panel of central bankers that anyone who's anyone they were all very casual did you ever see did you see that none of them wearing ties you know unbuttoned white shirts they should take their job a little bit more seriously tell me what else that stood out for you from what you heard from central bankers and simpler well the BoJ governor Ueda had a few jokes up his sleeve which i thought was pretty funny one of them being that the uh monetary the lags of monetary policy could be up to 25 years which got a huge yeah but look looking ahead today we've got another big monetary policy decision on our plate here in europe it's the ricks bank up at 8 30 this morning the decision again is finally balanced much like the nor just bank bank decision was last week when they surprised with the 50 basis point hike the thing with sweden though is that their uh their housing market is seeing a big downturn so the market is quite worried that they won't be necessarily able to keep up with this hawkish language they don't necessarily have a lot of room to hike rates much more if they don't want to cause any more distress to their housing industry but the governor there over in sweden theden is a ex hedge fund manager i'd like to ask i'd like to add uh... could also do pull some other lovers like accelerating quantitative tightening so watch out for that decision is eight thirty at most economists are calling for a twenty five base point hike but the risk is they go fifty in the market is priced squarely in the middle okay just a word next on the stress tests from the federal reserve wall street's biggest banks all passing but a bit of a mixed market reaction bit of a big market reaction and that is because we had at some overshadowing from powell when his uh... testimony to congress last week he did mention that there could be some new at capital requirements so perhaps the banks may hold off on doing any big share buybacks which there would be allowed to do now after the stress test until they get more clarity on these capital requirements and remember the other overhang from them is that uh... they have to top up the uh... the insurance fund when it comes to the f d i c and they know that that could come a penalty bigger when it faces uh...
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Posed right now to the Indian market yes I mean when we think about the Indian market within the emerging markets complex we do expect that to be you know a bastion of growth going forwards and it's not a very large percentage but if you have exposure to you know emerging markets in your portfolio typically India does make up a portion of that and you know it's interesting because yet again in 2023 it has been that US markets have been the place to be and when look you look at not just 2023 but you look at you know the past couple of decades the reason for that has been that the US markets are dominated by technology whereas you know many other you know areas of the world including developed and emerging markets are not necessarily as reliant on technology or you know those tech companies don't make up as large a percentage of the benchmarks if you're investing in passive ETFs or if you're looking at you know indexes for example so that's one reason that the US does continue to power forward but look valuations still do look compelling overseas and at some point the belief is that emerging markets and even developed markets overseas are going to have to play catch up. So you mentioned tech we know that as a group they performed or it has performed very strongly today we heard from Treasury Secretary Yellen seeing diminished risk of recession but she also suggested that consumer spending is going to slow and maybe that's the price to pay for fighting inflation very quickly. Do you want to avoid anything related to the consumer discretionary right now? So I think consumer discretionary is a very large basket when you look at the individual companies within there. So I think there are places to pick and choose. Some tech related customer discretionary companies have really been leading higher. yes But I know right now we are least preferred on a couple areas of the market that are very closely tied to the apart. Sarah, thank you for making time to chat with us. Enjoy the rest of your evening in Boca Raton. I'm Sarah the advisor financial at UBS private wealth management joining here on DBA. We'll take a look at the market action for you that's coming up. This is Bloomberg. Bloomberg radio on demand and in your podcast feed on the latest edition of the Bloomberg surveillance podcast. Amber Dean's senior research economist Sri Kuchagabadan. I think this is clearly a hawkish tone from the UK and as well clearly this you know they've surprised the markets. Norway this morning surprised with a 50. running into this there had quite been an intense debate there were question marks about whether there would be a 25 or 50 basis points from the of Bank England also for the Norway as well but clearly this is a surprise and just running through the statement quickly you know the reasons are very clear this is something that has been signaled actually within the speeches for some it is the core services inflation
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Different Economy sectors The is of a the Fed lot economy less has are been performing trying interest to in rate talk different sensitive ways. this than market we The market's thought down, every gotten more and in single and the more end selective. the leading equity indicator market I think This we has of can all simply a agree recession ignored is that is it. the Bloomberg Different Surveillance with Tom Kean, Jonathan Farrow and Good Lisa Abramowitz morning everyone, Jonathan Farrow, Lisa Abramowitz and Tom Kean, an historic moment on the independence and the certainty of the Bank of England that go against consensus and raise rates 50 basis points. The vote was 7 -2 and Lisa you see it immediately in Sterling a 127 out to 128 -26. Some of the commentary saying the full impact of rate rises will not be felt for some time seeing UK the economy stagnating in the second quarter but growing in the third quarter. How does this cohere with this idea of more aggressive rate hikes. The 7 -2 split very interesting at a time when the vast majority commentators of thought that this would just be a 25 basis point hike. They went against it took a page from the Norwegian Central Bank and went 50. I think that's very important the combination here today of the action of the Swiss what we saw in Oslo and now what we see in the United Kingdom is with respect to the Bank England of Lisa the lesser banks saying enough we're gonna act. They say inflation is expected to fall significantly this year. They do say though that further tightening will be needed if signs of more inflation persists. Ongoing feeling that there was some sort of unanimity with respect to the importance of hiking rates. Nobody on the committee thought that it was important to keep rates where they were not raised at all. at all. All of this coming together to give you a sense of higher yields for longer and that is what we're seeing certainly in the cap UK on market. We're gonna go to Lizzie Burden here in a moment but Lisa right now I want to look at the single phrase and each bank has their own set of headlines that roll out in a Bloomberg 20 30 40 headlines euros very much time in 2025 and all that. Here on the emotion and perhaps in the letter to the Chancellor from Governor Bailey the bottom line is a tight labor market. I would suggest Lisa Lisa over the last 18 months that's collectively what the central banks have gotten wrong. What you've seen over the in UK is wage increases far above what we're seeing in the US I believe it's around seven and and a half a percent year over year I was reading about this Lizzie I'm sure can correct me but that is far above what we're seeing in of about a 6 % rate and it starts to raise this question of a wage price spiral when there is more labor pushback when there are strikes when you're seeing that in a visceral sense pretty much across the nation. I don't know what can they can do with is this structural and how much are they going to comment on this in this meeting. To give us perspective from Queen Victoria Street Lizzie Burden. Lizzie were you shocked by this 50 basis point move? I was markets will be and economists too I was speaking to economists just before this decision one of them said that if they went for 50 it would would reap of panic but they've done it nonetheless you've got two dissenters in Swati Dingra and and it's a shock even that they're not holding that they are hiking anyway when they have been repeatedly emphasizing the lag in monetary transmission and as you say it follows the other central bank this morning they're really trying to get a grip of inflation after that fourth inflation surprise yesterday on the tight labor market to the risk becomes about recession Now Bloomberg economics research showed that if rates get to 6 % you could see a recession here here in the UK it's difficult for the Prime Minister Rishi Sunak when his number one priority is is fighting inflation but if it takes a recession to do that one of his other is growing the economy can he hit both of them looks more doubtful but of course this is more pressure for mortgage borrowers so it ramps up the pressure on the Chancellor Jeremy Hunt to do more to help people who are going to face it's even higher risk of repossessions now but he doesn't want to go against the Bank of England. Well Lizzie there's a confusion here in the forecast that we saw from the Bank of England today they see with respect to the UK economy in the second quarter but a bit of a rebound in the third quarter is that current with five percent rates in the region and potentially six percent rates as soon as December well if you look at the SHOK shock function on the terminal as I say six percent rates is Bloomberg where economics sees a recession being triggered and now that we've already about got this half -point hike today I expect that markets are going to be pricing an even higher peak rate they were seeing seeing 6 % before some traders seeing 6 .25 % so you can expect those bets to go up Lizzie I met The IMF meetings had a wonderful panel including Tenreo of Argentina who's visiting at the Bank and of exit soon from where you sit in studying this each and every day is this A hawkish or a dovish Bank of England?
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"FTSE 100 futures are nine tenths of 1 % lower and in fact all European stock futures firmly in the red Euro stocks 50 futures down eight tenths of 1 % cat caron futures in Paris down by nine tenths in Asia a bit of a quieter day with Chinese and Hong Kong markets closed the S &P ASX 200 in Sydney down 1 .6 % the Nikkei in Tokyo nine tenths of 1 % lower this morning on Wall Street S &P minis are also in the red down by three tenths of 1 % the two -year Treasury yield just two basis points higher after Jerome Powell's testimony to Congress yesterday again signaling that more rate hikes are likely from the reserves Federal a 4 .74 % for the two -year Treasury yield is this morning and we'll be watching of course what what happens to guilt yields when markets open later as well they had finished the day yesterday up the two -year guilt yield up ten basis points at .03 5 % so plenty to watch for there as well and and commodity space Brent crude a touch weaker this morning down four tenths of 1 .76 dollars and 81 cents and we are watching the continued rise in the price of bitcoin over thirty thousand dollars a barrel excuse me thirty thousand dollars a token i should say up by four tenths of one percent this is a jump that we've seen on the back of a number of filings by the likes of Invesco and wisdom tree looking for filings for ETFs linked to crypto currencies giving that space a bit of a boost as well that's your bloomberg radio business flash okay thank you so much steven now we're looking ahead to of the bank england's rate decision of course today the question suddenly whether the npc opts to raise by 50 basis points rather than a conservative 25 to try to dent soaring inflation in britain it means that the appreciating pain of mortgage borrowers needing to refinance is only
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Years to bolster its economic stability both the announcements come as a two -day conference on ukraine's recovery efforts starts in london today and noises underwater have been detected in the search for the sub that was headed to the wreck of the titanic the u .s coast coast guard says a canadian plane with sonar capabilities detected sounds and attempts are being made to explore their origin the bessel has five people on board and is estimated to have less than 30 hours of oxygen remaining and a quick look ahead to what's happening in the markets as stephen just said sunak was at that ukraine uh refugee restructuring conference today but he's also prime minister's questions at midday expect a lot of questions on that as it comes our western team report increasingly that calling for a tax break on mortgage owners to help support them but also in over in the u .s we have fed share powell testifying to the house at 3 p .m so those we want to watch out for um yeah absolutely so that uh no no doubt the prime minister will be under pressure we've already had a commentary out of the chancellor this morning jeremy hunt on the inflation picture and it is rampant the price pressures in britain uh and although there was the expectation for a drop in terms of inflation in the uk for a fourth month in a row we actually got an increase and that has led to this flurry of bets on higher interest rates in the uk joining us now to discuss is kim crawford who is global rates portfolio manager at jp morgan asset management good morning kim lovely to see you so traders betting then six percent uk rates by the end end of the year what do you think is going to happen tomorrow this puts enormous pressure on andrew bailey definitely like you said fourth fourth consecutive upside print in a row there's only been one this entire year that's really come in below expectations and so it's really a big inflation problem in the uk and definitely a hike of course question is 25 or 50. i do think the sheer upscale of the upside surprises that we have seen since the last meeting paint a very compelling case for 50 it is a the age -old question with the bank you know what they should do versus what they will do but i think if you break down the inflation core inflation rising core services inflation rising pressures are broadening and the other part of the picture is of course wages so the public and sector private sector wages they both rose above seven percent again forward -looking indicators like the indeed weights tracker also still rising and then the icing on the cake is that you've even had employment rate falling while the participation rate was rising so very strong labor demand so a tight labor rising core inflation and I do think the Bank of England needs to get on top of it it's just a question of whether they will. Is six percent a certainty now for you as a peak rate? I think it's going to be really difficult for the of Bank England to push back on that market pricing and inflation is one part of the story but growth as well if you look at business and consumer surveys they are still running very hot it's not suggesting that the economy is really decelerating in any meaningful way yet so the bank stuck it between a rock and a hard price but I think we have to admit that six percent is feasible given just how strong inflation pressures are. Why do you think the UK is such a global outlier? I think we've got just the twin problems of Brexit running in the ground and then we have that huge NHS backlog with the long -term sick so the size labour of force our is smaller than it was pre -covid and which is a huge pressure on an already tight labour market. If rates do go to six percent how damaging is that going to be for the UK economy? Yeah there's a lot of talk of we were at six percent under the trust administration period you know markets were really panicking then and we're tying it a lot as well to a recession narrative. I think it's definitely possible we that get into a recession at six percent but I do think it's more two -sided than the street is making it out to be. We have to admit that there are less mortgage holders and householders that mortgages have than in previous cycles now. There's still a big access saving build up from the pandemic that hasn't been spent yet and if inflation keeps being demand driven then the economy is going to be able to weather higher rates. So recession definitely possible with six percent but I don't think it's a certainty. Okay. Deep yield curve inversion in the UK. Is this moment to buy gilts or not? Yeah I mean with such a big move you know 100 basis points in the front and I think 70 basis points in tens. The valuations certainly start to look attractive especially on a cross -market basis but as a fixed income investor we always look through the three core pillars. So fundamentals, quantitative and technicals. The fundamentals we spoke about higher inflation still high growth not a reason to own gilts. Quantitative looking attractive but then technicals as well I think people are still long UK duration out there. So with two with two of the three core pillars not giving us the green light I do think you still want to be owning duration elsewhere. Be more patient on gilts and wait for core inflation to turn more meaningfully US system one of our favorites but in the long end so obviously in the picture of inflation that looks much better core inflation ex shelter more like three percent most of the leading indicators on growth are flashing late cycle or recession apart from the jobs market which we still need to see deceleration and the feds much closer to the end of their cycle we think possible they that give us July hike but we think that second hike that they showed us in the dot plot given that they are in an every other meeting pace now it's going to be hard by November so history tells you to buy the last hike we're and much closer in the u .s. there so long end u .s. duration we still like okay just last thought on Joan Powell speaks who of course semi -annual testimony anything you're going to be watching out for I think it's too close to the press conference that we had after the FOMC I think he'll tow the same line that you know the dot plot is there but it's not really the what the committee is thinking so I think he's just gonna have to tell that neutral line between the dot plot and expectations so I don't think it's going to be a big market mover. okay Kim thank you so much Kim Crawford global rates portfolio manager at JP Morgan asset management interesting to get your views on all of those matters given what's been happening in UK markets today those guilt yields still climbing higher 14 basis points higher on the two -year yield 5 .08 percent at the moment and we're seeing yields lifting across the curve as well the 10 -year yield 8 basis points higher now 4 .41 percent is where that's trading as well coming up next on the program we'll be checking in with our markets today team a very busy day for them of course unpicking all of the elements of that CPI reading we've had out this morning coming in hotter than expected rippling now out across markets as we see the FTSE 100 down by three tenths of 1 % the pound flat on cable 127 67 more in a moment with our markets if you're having a business dispute you know time is money the longer your case proceeds the more your case can cost so speed up your resolution with the american arbitration association arbitration with the american arbitration association is faster in fact the median time frame for an american arbitration association B2B arbitration to be awarded is nearly 16 months faster than the US courts ADR .org resolve faster From New York another update on Wall Street in fact records to London UK businesses are feeling the effects of higher prices to Hong Kong the hang sang down about 1 .3 percent right now 24 7 business and market news that expands your world view always nice to see you French finance minister I'm much more concerned about how things flow out of China Bloomberg
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Erasing the earlier jump that seen we'd in the pound after that inflation print came in hotter than expected on the equity markets we are seeing some of the markets pairing the earlier losses now the stock 600 is down by two -tenths of one percent the footy 100 still half a percent lower this the morning cat caron tim paris down by two -tenths the dachshund frankfurt now actually a tenth of one percent higher the footsy maben italy is up by two tenths of one percent still auto imparts energy and banks the best performing sectors the only three in fact seeing gains on the 600 stock at the moment real estate deepening its losses though still bottom of the basket down by one point eight percent wall street futures are in the red as well s &p emily's down by a tenth of one percent nosdaq futures are also a tenth of one percent lower okay those are the markets let's get to our top story uk inflation rose by 8 .7 percent from a year ago in may that is the same as the previous month the hotter than expected print has prompted traders to fully price bank in of england rates hitting six percent in december blimberg economics says that rates at that level would lead to a two percent drop in gdp peak to trough uk chancellor jeremy hunt says that other countries have shown that high rates will bring down inflation well today's figures than the case for the government to stick to its guns no matter what the pressure from left right or center we won't be pushed off course because if we're going to help families if we're going to relieve the pressure on people with mortgages on businesses we need to squeeze every last drop of high inflation out of the economy and if you look at what's happening in other countries you can see that rises in interest rates do bring down inflation over time that will happen here but the Chancellor Jeremy Hunt spoke as core inflation reached a 30 year high the last time that happened the Bank England of took the base rate to close to 15 percent the head of the Bank of France says the European Central Bank has completed most of its interest rate increases in an interview with the French newspaper Les Echo Francois -Viloy de Gallo said any additional hikes will depend on the inflation data the policymakers comments had caution to a heated debate the at UCB over the outlook for interest rates ahead of its next meeting in July. Now President Joe Biden says his that Chinese counterpart Xi Jinping was unaware that the alleged spy balloon had floated over the continental United States until it became an international incident speaking to donors Biden compared the Chinese leader to an embarrassed dictator kept in the dark. The comments come after the US Secretary of State Anthony Blinken used a visit to Beijing to try to ease the fractured diplomatic relationship. Here's what he told ABC's Good Morning America after that visit. At the end of the day there's not really a substitute for this leader -to -leader engagement between President Biden and President Xi so my expectation is we'll see that in the months to come. It's really important that they continue to have these conversations. You know President Biden has known President Xi for many years when they were both Vice President. They spent a lot of time together during the Obama administration and and so this is an existing relationship and it's important that they have direct contact. Blinken met on Monday with Xi Jinping who said that he welcomed the studying of bilateral ties. Staying with the story of relationships between China and the West, the has EU set out plans to align itself more closely with US policy. the block's new energy economic security strategy includes controls export and increasing oversight of critical technologies. European Commission President and a line broke down what that would mean. In economic security we're looking at limited small set of cutting -edge technologies and here we want to make sure that they do not to not enhance the military capacities of some countries of concern. Von der Leyen says as well. is built on three policy strands of the EU wants to promote protect and partner the proposal will now need to be approved by EU member countries. And just lastly underwater noises have been detected in the search for the sub that was headed to the wreck of the Titanic. The US Coast Guard says that a and plane with sonar capabilities detected sounds and attempts are being made to explore their for their origin. The diving vessel has five people on board and is estimated to have less than 30 hours of oxygen in the region. Remaining, those are our top stories. coming up next on daybreak europe we'll discuss the market reaction to the uk cpi to be joined by Kim Crawford Global Rates Portfolio Manager at JP Morgan Asset Management. Stay with us for that. what I know about courage I learned from my adoptive mom she said sometimes you just gotta hold on and know we'll get through this mom are so high up hold my hand no you hold my hand learn about adopting a team from foster care you can't imagine the reward visit adopt us kids dot org to find out more this message is brought to you by adopt us it's the U .S. Department
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Points in our pricing for this week's rate decision in terms was of the hike for markets but two -year UK gilt yields trade at five spot zero five percent so solidly above five percent now stock futures for the US are slightly softer three tenths the of one S &P 500 euro stocks 50 futures also turning negative down by a tenth of one percent but it is interesting the the FX markets this morning particularly ultra loose policy in Japan really clashing with what everyone else is doing the Japanese yen this morning is down a tenth of one percent 142 12 the yen under a lot of pressure pressure this morning and the Aussie dollar drops after the RBA minutes too. That is your Bloomberg Radio Business Flash, Stephen. now to a flurry of diplomacy aimed at stabilizing ties between China the US and Europe US Secretary state of actually blinking on a two -day trip to China included meeting the Chinese president Xi Jinping saying now the Chinese premier early is on a similar visit to Germany meeting the president and Chancellor Olaf Schultz joining us now to discuss Germany correspondent Oliver Crook Oliver good morning to you what has been LiQiang's message on his first overseas trips since becoming premier why is it important that it's Germany that is going to? so listen from a trip like this in other years you may have expected some kind of deals being signed some kind of agreement this is going to really be about more signal than substance as you say he'll be greeted with military honors today in the chancellery and political talks he's We've got got a large delegation of about nine ministers with them and the morning will be in the chance to wait for the talk. In the afternoon the Economy Ministry History where you can have nearly the full cabinet presence. Also the CEO of Siemens and Mercedes VW can be represented in in some way some we understand and really this is a thawing of the this is a reboot of the Merkel era German Chinese Chinese government consultations hit a three -year hiatus at a time however where Germany is a bit ambivalent about its position towards China it keeps talking about derisking the substance of which is not extremely clear but it's encouraging to see diplomacy back Lincoln and Beijing Li here but again if we're trying to read signals Xi Jinping help go to Moscow did go to Riyadh so this is a sort of olive branch perhaps to a somewhat skeptical audience Can these lines of communication be sort of more open in a meaningful way and can these high -level meetings kind of extract substance from signal. Yeah absolutely what do companies think and as you say the political talk of derisking rather than decoupling from China what does it all mean yeah imagine Caroline if it's confusing to us and to the layman that's sort of watching this to a CEO who needs to make billions of dollars worth of investments into the future in what is like the biggest market for for example every German automaker it is a little bit difficult when you don't have a coherent approach from the government you have this derisk this is a relationship worth 300 billion dollars in trade this is the biggest relationship for Germany in the world it's huge for China as well and you know Germany was really a believer in this sort of peace through trade and it's been effective in some ways that obviously we saw its limits in Russia so you have the likes of BASF, Siemens, BMW they're all sort of continuing invest to in China but you saw the news yesterday out of from the FCS for AstraZeneca looking to lift separately within China so these companies you know really are in a sort of difficult position it's interesting to see different the types that they're taking Schultz himself took some fire for backing the Chinese acquisition of 25 % of the Hamburg which port has just sort of passed its last hurdles yesterday so all of this you know sort of the walking a fine line for Schultz and for companies okay Oliver Crook in Berlin thank you very much for updating us on watching as that visit unfolds okay let's turn our attention then to UK gilt yields they are rising head ahead of this crucial inflation data that we get for the UK and the Bank of England rate decision a UK government bonds some of the worst -performing among major peers this year joining us now to discuss Bloomberg's markets reporter Valerie title great to see you this morning how much are two -year yields moving I mean pretty extraordinary and Goldman Sachs talking about what it's doing to market gilts saw a huge underperformance yesterday versus global markets said the two -year yield not only broke through through 5 % but then went to trade nearly 10 basis points through that almost hitting 5 .1 % rising using 14 basis points on the day and remember this was from absolutely no new news this was just around what's to come with the CPI print tomorrow the Bank of England decision the day after there was no catalyst to that and if we look at what that means now for what the front -end is pricing we are now year pricing a 6 % terminal rate by February of next year that is a level that the UK has not reached in over 20 years and if we delve even further in the in the very very front -end its pricing a chance of a 50 basis point rate rise at one of the next three meetings in the next three meetings out until September now remember Bailey is not shy when it comes to talking down the terminal rate so there is a risk that on Thursday that he blatantly does he says 6 % is too much he probably coats it with some positive language around he's positive that the economic growth is going to inflation slow and is going to slow with it but the risk is now for the market is that it does not like that dovish language and actually rejects it thinking this is a situation gone out of control and it could actually send guilt yields higher so that's the risk is that a dovish Bailey actually doesn't contain the situation but all of this discussion could could be changed by tomorrow's CPI print if we get a cool core CPI number and maybe we a take sigh of relief and and this meeting the pressures off a bit of this Bank of England meeting. Can you just talk through us the call that Goldman Sachs has made around quantitative tightening as well? Yes so this one was really interesting so So the Bank of England has been running QT for nearly a year and they were going to be reviewing the pace in September. Goldman is out saying that they think that because of the illiquidity in the market and just this enormous guilt That the Bank of England is actually going to be forced to reduce its pace 10 from billion a quarter to seven and a half. Now that is a big call because you have to remember that the last that time the Bank of England paused its guilt sales was around the mini budget debacle when just liquidity went absolutely nowhere and they had to pause in selling long -end guilt so in some way Goldman is calling that we might return to a slight situation like that where the Bank of England is in some way forced to slow down their active pace of guilt sales. Now this stands in contrast to what we've heard from the Bank of England deputy governor Dave Ramson. It was only last month that he said that guilt sales could increase in the second year of QT but it goes without saying the market is looking at this illiquidity, this nervousness in guilt yields and things to the Bank of England might have to change course. Okay and just briefly on the CPI data what figure should we vote? Of course CPI, the year -on -year number is expected to be a repeat of last month at 6 .8. If there is any hint of that coming in hot we could be in a bit of a pickle for of this Bank England meeting the next day. Okay Valerie Tytel our market supporter thank you very much for that, we'll have a check on the markets for you next. This is Bloomberg Daybreak Europe. Post -Brexit it's no good just saying we left and we're going to have some trade agreements. This is how are we now going to compete in the world. Foundation AI needs regulation as well and that requires international leadership as well as leadership here. Institutions in the United Kingdom are strong. there's The a very time is clear strategy on halving inflation this year. We still think the rate of inflation is going to come down but it's taking longer than we expected. Bloomberg Daybreak Europe on Bloomberg Radio. And it's 6 30 a .m. here in London. Good morning I'm Caroline Hepkin and I'm Stephen Carroll. This is Bloomberg Daybreak Europe. Now in the markets this morning equities back under pressure certainly in the Asian session the Hang Seng drops 1 .6 percent this morning stock futures for the U .S. are down three tenths for the S &P 500 after the holiday on Wall Street yesterday. U .S. stocks 50 futures also heading lower now down a tenth of 1 percent not much here from the lone prime rate or from the RBA minutes. Bloomberg dollar spot index is stronger a tenth of 1 percent. Oil continues to slide on WCI crude futures $70
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"But the feeling was the bank England will take measures to address inflation and that will help give stern in terms of support, but is up to the prime minister in this new Chancellor and then indeed whoever the new prime minister is to actually take further measures or enact further measures to try and help stop the slowdown in the economy. The economy is slowing the question is how quickly it's going to slow and therefore what can be done to try and mitigate that slowdown? Yes, absolutely. When you look big pictures here though, at the UK economy, there seem to be two quite distinct views. Either that the UK is kind of no longer a major power inflation and energy a hugely problematic, the Sterling is getting absolutely beaten up. The current account deficit is worsening and huge. Or there's a kind of more optimistic view full employment strong banking sector robust household and corporate balance sheets. I suppose I wonder which side of that argument you come down on. The government seems to be moving towards certainly in the past this idea of having longer term policies, longer term economic policies. Is that what is needed from whoever takes over on boys Johnson more long-term thinking? Well, issues that you need to be realistic since the 2016 referendum and the UK's growth rate has outperformed that of Germany is outperformed some of the other major countries on the continent. It's financial center naturally still the strongest and by a long way within the EU. But yes, the challenge is that the current government under Boris Johnson didn't have an economic vision and also current time the orthodoxy of the treasury has tended to dominate. So even though for instance, there's been fiscal boost this year, they weren't provided winningly. They had to be squeezed out. So what there is is a need for an economic vision, the UK economy is in pretty solid shape and certainly is in better shape than a number of countries on the continent. So it's particle to say it's not a major power and it's at the forefront of helping fight the war in Ukraine. But the challenge is the credibility of the current administration has been tested by recent events, but communication and hence explaining the narrative to an international audience, clearly need to be more centered stage. When one is fighting as it has been in recent months, the fighting domestic battles in this government that means that they've probably not really focused on how the UK narrative has portrayed internationally. But the UK is still in pretty good shape and pen to the continent that will like other countries it's facing both inflation problem and then economic slowdown. But the big issue for the new prime minister and new Chancellor is to actually unveil a credible economic policy. Momentary and financial stability reducing the budget debt, but also the whole supply side agenda and I think that needs to be center stage. Obviously in the near term, what we've seen is both the Euro and Sterling suffering against the backdrop of a strong dollar, clearly a political crisis in the UK as the problems for serving. So it all comes back down to the needs for a quick wins on the economic policy front, but more particularly the need for a clear economic vision and the narrative that goes with it. Is there a risk of irresponsible economic decisions being made now to distract from the political turmoil? I don't think that's possible, really. One needs to be able to differentiate between what people say and what they're able to actually do. The policies that are being talked about or that have been talked out in the last few days linked to the tax side are actually seen by many people as necessary and credible. But coming back to the earlier point, even if they're seen as necessary incredible, given the present situation they might not be able to be enacted. Yeah, okay. So you've got a lame duck government effectively. They all make almost actually okay. Look, Bank of England credibility, then, in all of this, how do you rate the Bank of England and in particular Andrew Bailey and handling what is a huge crisis? Yes, it's important not to make it about individuals, but we clearly have had a focus on personalities, but I think what the markets are also looking at is the process and the policy itself. Quite clearly last year and at the time it was evident the Bank of England was enacting the wrong policy. It was engaging quantitative EVs when it should really be exiting from that and tightening policy by raising rates at the time when the economy was able to cope. It's quite clear that the bank is behind the curve is communication has not been as effective as that of the fed and as we saw a few weeks ago when the fed rates by three quarters of the basis of the Bank of England by quarter of ten, even though the pounds was looking fragile at the time. So they weren't able to really be having a feel for how the markets would be doing things in that moment. To communication, which has been linked to the personality clearly needs to improve. But it's also the process and the policy. I think the Bank of England clearly needs this time further to the direction of travel is clearly from monetary policy tightening, but the speed, the scale and the sequencing sequencing in terms of rate hikes and quantitative tightening. There will need to be sensitive to the talent economic situation. So I think they need to be more on the front versus the answer. Okay, Todd, thank you so much for your time. Really great to have you on the program and your economic thoughts at Jared Lyons is chief economic strategist at net worth previously the chief economic adviser to Boris Johnson during his second term as mayor of London. Yeah, so the difficult moment where Boris Johnson really seems to be at the end of his tenure and what comes next both for the government, but also really for economic policies At the end of his tenure and what comes next, both for the government, but also really for economic policies, absolutely crucial. Yeah, certainly is. Well, let's take a look ahead some of the other events that we're following later today on Bloomberg, Liang garands is with us in studio Leon, what are you looking forward to? Stephen morning to you so yeah, hero a few events we're following lots of data points today but before we get to that at ten ten, the attorney general suela bereavement takes questions in the House of Commons. Now this is if she's still in her post after calling for Boris Johnson to step down yesterday, so that's something everyone will be keeping an eye on as we have a look across the political landscape but at 1230 UK time the ECB publishers the account of its June policy meeting, Margaret participants will be scouring the minutes for clues on the interest rate outlook. Then we have U.S. initial jobless claims at one 30 p.m. the UK time. Now that's followed by the latest stats on Russia's gold and foreign exchange reserves and we're expecting the IEA's crude oil inventory report at 4 p.m. UK time if you can wait that long and tomorrow I just want to preview something. If you didn't know, I was going to do this. Cameron. Yes, gender pushing, Lyanna's pushing everyone to watch this match tomorrow. Cameron norrie only British guy left and Wimbledon. He's in the semifinals tomorrow but he faces. The one and only Novak Djokovic. And that is happening at host one. To not be missed, I have not missed these tennis matches. I tell you yesterday well, if the politics comes down, maybe we'll tune in. But the politics is better than love island at the moment, so we're not watching love island, we're watching the politics. And that is our day summed up in a nutshell, and Gary, thank you very much for that. Stay with us. This is Bloomberg
Bloomberg Radio New York
"bank england" Discussed on Bloomberg Radio New York
"Now You've got a bit more detail actually on Andrew baby His Bloomberg's Samuel etchen good morning Good morning Caroline I do and let's start with the banking England governor Andrew Bailey he says governments should be prepared to accept economic hardships as the price for forcing Russia to end its war in Ukraine What Russia is doing in Ukraine as a polling which is why I know that walked out It's appalling And I think it's important that they understand there should be no appeasement of Russia because we have to deal with economic problems as a consequence of what's going on We just roll our sleeves up and deal with those And that's the right thing to do Hard though it can be at times Speaking on the sidelines of the IMF meetings in Washington he delivered his strongest warning yet that the UK's escalating cost of living crisis may tip the nation into recession Bailey speaks again later today And here in the UK consumer confidence has plunged to the lowest level since the recession in 2008 Monthly reading of consumer confidence has dropped to -38 for the month of April The number a decline of 7 points on the month was well below the forecast from economists That leaves the outlook for personal finances and the general economy worse than during the depth of the financial crisis And as the war in Ukraine entered this third month the U.S. has confirmed its sending ghost drones to the country Bloomberg's Ed Baxter has the story Pentagon spokesman John Kirby says ghosts will work well in Ukraine In discussions with the Ukrainians again about their requirements we believed that this particular system would very nicely suit their needs particularly in eastern Ukraine And President Biden says the military help is very large The United States alone has provided ten anti armor systems for every one Russian tank that's in Ukraine Biden says help is on the way In San Francisco I met Baxter Bloomberg daybreak Europe Meanwhile the U.S. is sending Ukraine another $1.3 billion in arms and economic aid of the new package $800 million will go towards weapons And again here in the UK another investigation is going to be held into party gate Boris Johnson will face parliamentary ethics inquiries into whether he lied to parliament over the scandal Bloomberg's Charles capel reports MPs backed a labor proposed motion for the prime minister to be referred to a parliamentary committee to investigate whether he misled lawmakers over the events in his and other government offices during lockdown MPs approved the motion without a vote after their government abandoned its bid to delay it until after the police finished their own inquiry and an internal report was published Ministers found to have lied or expected to resign although there is little chance of Johnson doing so Still the inquiry undermines Johnson as he is on a trip to India and will prolong the uncertainty over his position In London Charles K four Bloomberg daybreak Europe And that's global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than a 120 countries I'm Samuel Etienne this is Bloomberg.
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Brooklyn Bank, England and Westwood discussed on All News, Traffic and Weather
"Thirty is brought to us today by signature business banking from brooklyn bank and an eighty four year old former new england mafia boss has just been convicted of killing westwood nightclub owner steve dasaro more than two decades ago he was from westwood as nightclub here in boston jurors moments ago finding says cadillac frank salami guilty in the slaying of stephen dasaro back in nineteen ninetythree also is co defendant paul has been convicted each now faces up to life in prison and there were tears in the courtroom are karyn regal is in the courtroom we're going to try to join with her live from the federal courthouse in boston daughters and we are definitely having some connection issues with the federal courthouse in boston our policies we're going to try to reconnect with karen let's go to boston defense attorney phil tracy right now he tells.