2 Burst results for "Bubic"
Bloomberg Radio New York
"bubic" Discussed on Bloomberg Radio New York
"This morning. Also the bubic dollar spot index takes another big drop today down 7 tenths of 1% and let's not ignore crypto, Bitcoin is trading at 17,335 down 2.7% right now. Yeah, and we get you up to speed with all the ramifications and the ripple effects of that unfolding story as well later in the show throughout the show. In the UK, the economy is shrinking that by 0.2% in the third quarter marking. The start of what is expected to be a protracted recession. Chancellor. Jeremy hunt responded to the figures. What we need is a plan that shows how we're going to get through this difficult period. If it is a recession, how we make it shallower and quicker. So that we can protect businesses who are really struggling as these figures show. But also give families some hope that we will get through to the other side. Bloomberg understand that hunt is planning to freeze spending on public services after Britain's next general election. In a move, the treasury thinks we'll plug about half of the UK's fiscal whole. And now global markets have surged after U.S. inflation cooled in October by more than forecast, the latest CPI print offers hope that record price rises are ebbing, markets and our pricing in a 50 basis point rate hike in December as more likely than 75 when it comes to the Federal Reserve, but Cleveland fed president Loretta messer says that she remains concerned the Central Bank could fail to sufficiently tighten monetary policy. Now the focus can shift to the appropriate level of restrictiveness that's going to return the economy to price stability in a timely way. Given the current level of inflation and the fact that it's broad based and it's been persistent. I think we're going to need monetary policies going to need to become more restrictive. And remain restrictive for a while, so the Cleveland fed president saying that she now wants the U.S. economy to experience a period of below trend growth, including a possible contraction to reduce the price pressures and balance what she sees as an overheated labor market. Back here in the UK, quasi quantum, who was sacked as Chancellor after an ill fated mini budget has blamed Liz truss for going too fast, with her economic reforms. In an interview with talk TV, quantum says he warned the prime minister, it would lead to her downfall. I think it was too quick. I said, actually, after the budget, because we were going very fast, even after the mini budget, we were going at breakneck speed. And I said, you know, we should slow down. Slow down. And what does she say? She said, well, I've only got two years. And I said, you'll have two months if you care on like this. And that's I'm afraid what happened. Formula Chancellor, quasi quantum speaking to talk TV's Tom Newton down there. Trust was forced to quit after less than 7 weeks in Downing Street. And now too, the crypto implosion, binance's CEO, CZ zhao, says that acquiring FTX didn't make sense, but he insists that his initial intention was to protect users. Speaking at the Indonesia FinTech summit, it's easy, elaborated on his phone call with the FTX founder Sam bankman fried, who approached binance just earlier this week to strike a bailout deal. From our perspective, the deal, the deal did not make sense from a number of fronts, from a financial perspective, is a big hole. From new users, FTS, we have very high overlap. We cover all the regions they cover. And they're much less users than us. From a technology or product perspective, I think we have a superior product. They don't have anything that we don't have. So our original intention was let's save the users. But then the news of misappropriating user funds and especially U.S. regulatory agencies investigations were like, okay, we can't touch that anymore. So that was the binance COC zhao. Now Sam bankman freed's exchange has imploded after a liquidity crisis with authorities in The Bahamas freezing its assets last night, the U.S. SEC is starting a probe into bankman fried. China is to reduce the number of days people entering the country must spend in quarantine, travelers arriving in the country, will be required to spend 5 days in a hotel or government facility, followed by three days confined at home. That's down from ten days quarantine in total currently, Bloomberg economics has estimated that the decision to end China's COVID zero policy could boost GDP growth by as much as 1.6%. Okay, I just wanted to mention that you did a great interview this morning because the crypto story is moving so quickly because you heard from binance, we just got that in from our team in Asia, the binance CEO, great to get it in his words. Why he backed out of the deal to, you know, I suppose to prop up FTX or buy it. And you also spoke to someone quite key. So we were speaking to potentially another rainmaker in this and there's certainly the potential needs for highlighted there. Justin's son of Tron or so a senior role has a senior role in warby, which is another major exchange as well. And he's a big player within the crypto space. That's undeniable. And what he is said to us is that yes, he now is in quite detailed conversation him and his team, with FTX dot com and Sam bankman fried on a potential rescue plan by Tron. Okay. So he didn't give us clarity on the exact numbers in terms of how much he's prepared to spend, but he's looking at potential debt, particularly potentially equity investment. The top line is he wants to help restore stability to this market was his line. Okay, I think that's really, really interesting on a very important moving story this morning. Okay, so that on crypto also, let's talk a little bit about the UK then. We mentioned this in our top story we broke the figure for you at 7 a.m. when we got the UK GDP number out. So GDP fell two tenths of 1% in the third quarter. Now the contraction means that Britain is the only group of 7 economy that has yet to fully recover from the pandemic without put for tenths of 1% below pre COVID levels. And joining us now is kitty usher, whose chief economist at the institute of directors, kitty, welcome back to Bloomberg radio delighted to have you on with us. Again, to explore what is going on with the economy here. The fallen GDP was less than economists were expecting half of 1%, but it's hardly good news, is it? What's your top line take? I think the top line take is that we've known for some months that there are problems, particularly in manufacturing and in consumer facing services as households are having to rein in their spending faced with increases in the cost of living. What we've seen particularly from the last month's data is that this slowdown is now spreading across the economy with rather sharp contractions, as I said, certainly towards the end of the third quarter in some of the B2B sectors. So information and communication technology, professional and scientific services. So this is the classic way that a recession becomes entrenched. As you say, it's very slight. So far and not nearly as deep in this quarter as even the Bank of England was expecting their expecting .5 percentage point contraction and actually, as you say, it was .2
Bloomberg Radio New York
"bubic" Discussed on Bloomberg Radio New York
"The autumn and that may increase slightly based on the higher tax revenues will have to wait and see what the ABR says But obviously he doesn't want to spend all of that There's a risk that forecasts move against him He's also got huge presses on the spending side Questions about what he does with the defense budget and also all departmental spending totals offset in cash They were setting cash at much lower inflation levels So I think in due course he's going to have to top that up And he's going to want to hold back some headroom for nearly the election So we can use that as a pre election giveaway So yes he has a little bit of room for maneuver but it's pretty limited I would have thought single figure billions in terms of deleting that he might be able to do And of course the new public finances data out just 25 minutes ago showing borrowing set to be about 30 billion pounds lower than at the time of the autumn budget and spending review and that's for 2021 2022 but Tim you've advised two former tumors How concerned we'll soon act be that this may be his last chance to show that tax his tax cutting hand before a leadership contest given he might have to run against the foreign secretary Liz trusts who should we say is never shouldn't comparisons to Margaret Thatcher Yeah well I think what I would say in terms of capacity to Margaret Thatcher is that Margaret Thatcher fixed the deficit before she cut taxes And I think that is the approach that the Chancellor is taking And I think that is the right approach for him today No I think the Chancellor will be very focused on the fact that he's got a big cost of living crisis on his hands and focus very much on doing what he can to ease the pain but for millions of households I think there is no doubt that politically he knows that there is pressure on him from the right wing of the Tory party to deliver something on the personal tax size to show that he is a tax cutting Chancellor But he had been very clear and I think this is a long tradition of tour Chancellor but fixing the deficit comes before tax cuts Now I think we will I think we will see something potentially on tomorrow in terms of the tax cut but as I said I think you'll also want to keep some of that headroom back to deliver something pre election as well What about the leveling up agenda How does the country level up important parts of the country important in terms of voters for the conservatives Given all the challenges of pandemic war inflation rising cost of living No I think well I mean I think the sort of simplest way to put these things is in the short term if you are looking to support household in all the areas that people talk about that the Tories are focused on in terms of leveling up the best thing you can do is to try and support them in the short term in with cost of living They are going to be as much as impacted as anyone else But I think the reality on leveling up is that it is a long-term agenda The government set out some plans around that There's significant increases in capital spending to deliver that But there is no doubt that the nature of the economic shocks that we have seen over the last two years and we're now seeing again that is going to have a very significant impact on people across the UK and that includes in those areas that the Tories are very well focused on And Tim there's been some suggestion that one way to help ease the labor shortages in the private sector which of course are driving wages up and therefore also to keep a lid on inflation would be to cut public sector headcount That swelled during the pandemic especially the health workers Do you think that's something soon awkward considering if so how far would he go Well no I mean I think it's a question not just for the chance to really that's also a question for individual sections of the states in the department and they've now got their spending review totals and it's sort of a job for them to manage But I think it is undoubted that there is a tradeoff there particularly on wages I think the treasury has said that right which is ultimately where the tradeoff between holding that public sector pay and shrinking and the public sector workforce and it is undoubtedly true that the state had to grow in order to deal with the pandemic and therefore it is natural that you would see the size of the strike shrink now that we are coming out of that pandemic And yes that probably means the public sector headcount will reduce over time as that pandemic support is unwilling Okay Tim thank you so much for being with us really really good to get your views on what we expecting from me she soon acts many budget the spring statement of Wednesday That is Tim Pitt partner at Flint global and formally adviser to both former chancellors of Philip Hammond and Sajid javid also in our London studio and formally adviser to both former chancellors of Philip Hammond and Sergey javid also in our London studio Bloomberg UK economy reporter Lizzie Burton really good to have you on the program this morning And of course we'll have full coverage of the statement in the run up to it will be speaking to bright blue the conservative think tank We also have a host of others to look ahead to the statement on Wednesday morning and then pass what we should actually say on Thursday So we have a pact set of programs on Wednesday and Thursday morning So my thanks to both Tim and to Lizzie for being with me Coming up next on Bloomberg daybreak Europe then Let's have a look at the markets It is now 7 30 a.m. I'm Carolyn Hepburn very good morning If you're just joining us just had a very interesting conversation about exactly what the Chancellor We should see that can deliver in terms of the cost of living crisis here in the UK ahead of his statement We'll have full coverage of the statement of course on Wednesday and Thursday we'll be speaking to the Nisa deputy director to bright blue the think tank to the IFS also the British chambers of commerce so plenty of commentary around the Chancellor's statement for you Also though this morning we are thinking about Jerome Powell giving a real shock really a jolt to the bond markets that saw the yield curve flatten and bonds really sinking yesterday And this morning U.S. benchmark yields at two 31 So actually yields up by another two and a half basis points at the entire U.S. yield curve moving higher Goldman Sachs saying that it now sees two 50 point hikes in May and June Other parts of the markets then futures still in the red for U.S. stock 50 S&P 500 even many features But we are giving up some of the losses as for oil markets We see another rise in Brent crude up by one and a half percent $117 the barrel brake crude Sorry WTI crew features at a 113 Bubic dollar spot index is also a stronger three tenths of 1% So that's a brief look at the markets coming up next that we'll be talking about Tesla inaugurating its new factory in Berlin That in a moment let's get over to Bloomberg's Hannah George now for today's top stories Good morning Good morning.