26 Burst results for "David Weston"
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"This is balance power on Bloomberg television radio. I'm David Weston as we approach the end of the year. We want to keep our eye on those markets to see about that so called Santa Claus. I always rebel against that a little bit. But here to take us through this Abigail doodle. So where are we right now in the markets? Well, it's going to be interesting to see because if we can continue to come off the lows and right now the S&P 500 is off the lows down half a percent, maybe we will see Santa come back to town because earlier today the S&P 500 over the last three days had been higher by, let's call it half a percent right now down probably about three tenths of 1%. But we of course have a few more days. Now, I think one stock that's so interesting to take a look at today relative to these swings, Tesla, because yesterday, of course, there was the 7 day wipeout, $700 billion lost on the year down 70% on the year. Today, the stock is rallying up 2.6% last time I checked the best day since November 30th. And the question is, has a bottom been put in. Technically it's sort of interesting because it was most oversold yesterday ever. But I think that something that folks are overlooking, the fundamentals and the valuation, it's more attractive, I think, than folks are thinking. So you're a buyer, as it were. Not literally, but you think Tesla Tesla story holds up. Well, you know, so it's not my position to be a buyer or make a recommendation. I'm just pointing out observations, valuation on Tesla is really pretty attractive. Does it deserve to be down so much from both on the year? We'll take us through the valuation. Why is it so attractive? Well, you know, because forward PE for next year it's trading roughly 35 times. Top line growth of 59%. That is represents $75 billion. 54% next year, 36% in 2023. So from evaluation perspective, the fact that you have top line growth so much above the PE, that's really attractive. And then the profit, you know, it's growing huge, 216%. Now that's about $3 and 30 cents. So from a tech standpoint, if you compare this to Apple, apple is trading 20 times single digit growth, you can make the case that's more expensive than apple's more expensive than Tesla in some ways. And then take a look at car companies. It's very attractive on its car company metrics. So what anticipation is they're built into those numbers of future growth and volume. And are those numbers good? How reliable are they? Well, you know, that's a great question and that's where you really would need to bring in a car analyst who is building out those models. Now, one piece of this, of course, is China 25% of their business is China yesterday. There was a Reuters report. I don't think it's been confirmed or denied that they were going to be slowing manufacturing in China. And we're also even heard CEO Elon Musk talk about the fact that there are storms out there. It's a difficult economy. They're creating incentives for folks to buy these cars. So yes, that could be at risk. But so say 60% top line growth for this year, 54% next year. It would have to be a horrible hurricane for that to go down to say 30% growth. I mean, it seems like there's a lot of room in those numbers. Now, could that happen if there's a very bad recession? Absolutely. This is a need to have. It's not sorry, it's a want to have not a need to have. But I'm just saying looking at this model right now relative to some of the other models on just pure tech companies. This stands out as a buy. Well, listen, I don't have a position one way or the other. You either strike me on a recommendation. When you're talking about price equity ratios and things like that. Right now, many analysts are saying, overall, in the equity market, that's going to be one of the big surprises to the downside in 2023, that we haven't taken the earnings down for enough yet because of inflation and demand issues. Is Tesla an exception to that or could it be vulnerable as well? Well, it could certainly be vulnerable and it's an interesting point that you make because the S&P 500 right now trading 18 times, which historically is a little bit rich relative to where it could be given the fact that there is the recession possibility but you have to remember the world's second largest economy is coming back online. Maybe that could certainly help. On the other hand, that could create the inflation. We're going to another year of so so much uncertainty. But you got all through all that without mentioning Twitter. Well, you know, I think that that's. You know, I think the most interesting point about Tesla right now is you used to talk about the mass evaluation premium on Tesla that it was the Elon Musk factor. I think we're now looking at Tesla without that premium. We're just looking at it as an EV car company. That might actually be a good thing because now you could have some big investors come in and look at this company. Now of course there is the headwind or the risk around Twitter, obviously some work has to be done there in terms of a CEO and maybe less headlines. But you know what, a couple months ago, Elon Musk was a hero. Now he's a villain. He could be a hero in a couple months again. Maybe you'll have some more tailwinds instead of the headwinds that they're all facing right now. That's on Twitter. One sure thing is it'll be a good story. It'll be a good story. And at some point I'm going to get into a Tesla. I still have never been. We'll get you to test them. Look at that done. Have a go doodle. Thank you so much for that report. On the markets and on Tesla. SEC chair Gary gensler has set out some ambitious regulatory agendas for the SEC and through much of it, though much of it has not yet been realized it has come some in the industry concerned that he may be going too far earlier this month we talked with the president and CEO of the managed funds association Brian Corbett about why his members are worried.
Bloomberg Daybreak
Fresh "David Weston" from Bloomberg Daybreak
"Through the spring and early summer so that could could be attributed to the changes that we're seeing with the climate in the northern hemisphere just 30 seconds left rob your advice for people how to deal with this smoke for this week well the smoke yesterday in new york was unprecedented since the like the 1780s should have to go back that far into the climate past to come up with something like this um i would say people with respiratory distress stay inside those folks who have to go out n95 masks probably a good idea in the tri area -state you should be okay in boston and dc today just don't do anything strenuous especially if you suffer from respiratory distress really appreciate this rob thank you bloomberg meteorologist rob out the morning here on bloomberg daybreak we want to turn now from apocalyptic weather to the outlook from one of wall street's biggest banks the united states has to be a beacon of stability and strength in the world that's the word from bank of america's ceo and chairman brian moynihan he's talking about the u .s. economy in the wake of a drawn -out debt ceiling battle and where he sees things going from here moynihan sat down for a wide -ranging interview with david westin at the bloomberg invest conference in new york let's listen to part of that conversation now you know when i ask people is this disruptive and not all the experts tell me yes and no and yes in the hand there's a lot of issuance but no everybody knew it was coming and so it may move sort of trading markets around but fundamentally the idea that the government was going to run out of money was not something so we'll see doesn't put any kind of a crimp in your ability to lend and that money has to come from somewhere well there's a of lot money sitting at the fed in the overnight repo facility and money funds has just been put back and so the dynamics of how this all moves is around interesting I don't think in the worry be it took deposits out of the banking system but you know I'm not sure people see that as a big issue and by the way the Treasury Secretary, I think they said today, they will this do on a non -disruptive basis because they don't they just ran down to 39 billion we're still able to pay the bill so they don't need to get there tomorrow and they'll build it up over time but the goal is to get back in a more regular way the best news about this whole dialogue is they've got an agreement that extends a period of time so we shouldn't have to deal with this for a while which is really critical because the United States has to be the beacon stability strength in the world and at times when this discussion is going on and you travel the world everybody gets fixated on it because the United States is the benchmark benchmark benchmarks and if it goes completely somehow accidentally it's a real problem and so they get all fixated all this sort sort activity of in the planning for what would happen in all our company it just it would just be better if it didn't go on but it's a political process and they have. There are reports and I don't think it's unexpected to anybody that there's going to be an increase in capital requirements. If that goes forward will it have any effect on your ability to make loans? There are multiple Which could get sort of pushed together there's the standards for the final creation of Basel which is this broad set of things that's going on. The stress test is going on that we forget about that's going on also and that result in some surprise industry in terms of capital demands last year and then there's question the of applying standards that apply to the G -SIB banks, the biggest broader banks in the platform because the size of some of the banks and so all three of those things get mixed together a little bit. But in the end of the day it's a fairly straightforward. If our capital ratios go up by 100 basis we basically you know simply put you can't make about 150 billion dollars in loans and people because say well you have more capping make more loans but if we took risk on that capital we wouldn't have that capital ratio so it has to be a riskless bill of capital can't be out there taking risk. So the only thing you really do is leave it cash in or buy Treasury securities and that's not a very productive use of money. And if you had it yep and that's the problem and so every time capital goes up there's a there's a countervailing it back to it impacts lending. So I see actually a survey was done in this room of the likelihood of recession in in Q1 of 2024 and it looks like what is that 65 % of the people agree with your research isn't that good to know you've got kind of ratification there. One thing we always have to be careful if I somebody educated me once that the four projection recession by economist is always like 15 or 20 percent so anything above that means that they're convinced. So we talk about costs what about headcount. I know you said that it's not so much you're lying officers not hiring as many as you were a year ago. This goes back to economic and I even talked to customers. So last May we hired 3 ,000 people excuse me. may This be hired you know six seven hundred and that's all because the turnover rate fell because last year we're in the middle of great resignation and now it's completely different. So we went from 12 % turnover in the company which is sort of the long -term level we're at pre pandemic down to six up to 15 and now back down getting close to six. So we don't have to hire as many people yet we keep managed a headcount down. More broadly do you think the job market is a bit softer than what the Fed realizes? I think if you talk to employers today in technology spaces there's always specialized things like welders and certain high in manufacturing help explosion that was just having been out there but in general it's much less tight than it was in the spot market and that's why the current rates going down all that stuff you just see it the amount of hires and you know so job postings are still high. I'm not sure CEOs that I talk to are pushing people to fill those as much as film when you have to and that has a dampening effect on the labor market that won't show up in the aggregate. Employment still at you know 3 percent unemployment is still very strong and so the big debate when you if you want to drive your comments you say how can you have an unemployment less recession and you know they can't quite get there and that's kind of the interesting question and so even the highest predictors of unemployment don't even get the 5 percent which is hard to square. And that was Bank of America CEO Brian Moynihan speaking with David Weston from the Bloomberg Invest Thank you. Join us again live today too of Bloomberg Invest today on live go and you can also check out full interviews from the conference on our Bloomberg talks podcast feed find that on Apple Spotify and anywhere else you get your podcast. Let's find out happening what's in this market Karen Moscow as a Bloomberg Business Flash Karen. All right Nathan while we are watching shares of GameStop this morning they're lower down almost 18 percent in early trading. company The has fired CEO Matt Furlong the money losing retailer also reported quarterly sales that missed estimates and GameStop says chairman Ryan Cohen will now take on a new executive role. We're watching futures as well they are little change the DAX in Germany is higher up a tenth of a percent and the ten -year Treasury is little change this morning the yield 3 .79 percent the yield on the two -year 4 .55 percent. We the check markets all day long here on Bloomberg right now 9x crude oil is down 4 tenths of a percent or 31 cents at $72 .22 a barrel COMEX gold up two tenths of a percent or four dollars fifty cents and 1962 90 an ounce the euro 1 .0730 against the dollar British pound 1 468 the yen 139 .74 and Bitcoin is up two tenths of a percent it's at $26 ,400 that's a Bloomberg Business Flash now here's Michael Barr with more on what's going on around the world Michael good morning good morning Karen smoke from hundreds of Canadian wildfires continues to engulf the eastern US impacting tens of millions of Americans New York City the hardest hit still registering the worst air quality of any major city in the world clean drinking water is a major concern of UN humanitarian officials assessing the crisis in southern Ukraine after the collapse of a dam and
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Is balance of power on Bloomberg television and radio. I'm David Weston, we're all waiting for that fed decision coming up at 2 p.m. Eastern Time. And I suspect the market's just maybe waiting a little bit too, but to bring us up to speed, we turn out a pretty Gupta. So the markets, I would expect them to not make a lot of movements. They're not going to make a lot of movements, but careful what you wish for because at 2 p.m. and I would say two 30, specifically that professor is going to be the game changer. I think what's interesting is going back to all the fed meetings in the past year, at least. You've seen kind of this pattern of a sell off ahead of the FOMC decision and then some sort of market reaction. You actually haven't seen that in the lead up this time around. This is our third day of gains in the S&P 500. The stock market is up about 5 tenths of 1%, excuse me. And then NASDAQ not far behind it up about four tenths of 1%, but put that to a volatility context. You're not seeing that much movement. You are seeing some movement in the bond market, though. The two year yield catching a bid, the ten year yield starting to sell, or the ten year bond excuse me starting to sell off a little bit. So some movement in the curve as they price in what the timeline really is going to be if we're looking at a march peak of May peak when it comes to that policy rate. Yeah, and we keep hearing that maybe Jay Powell is going to be a little more hawkish in that news conference. But we heard that before the brookings institution speech as well. Remember that? And if anything went the other way. So I wonder, really, what he's going to be trying to guide us. Well, I think a lot of his own thunder was stolen and that brookings institution speech. And you actually saw that and the CPI report re changed the market's pricing. One of the big concerns in the market right now is what February is going to hold because the brookings institution speech ended up kind of solidifying the 50 basis points is what the fed is going to deliver. Now the game changer is February because you're looking at potentially 50 in February, but also potentially 25. And the market after that CPI report, the big deceleration from yesterday is saying, well, the February hike is only going to be 25 basis points so that they're going to end the tightening cycle by May of 2023 and on top of that, the policy rate, the terminal rate is going to come down more than expected. So there's a lot of moving parts here and it's that timeline that still seems very murky. I think we also get a statement of economic projections, don't we? We do. That would be pretty interesting. On top of that, and that's going to help out with a little bit of the pricing as well. There you go. Thank you so much. Can you go up to it? You can watch pretty again as an anchor at 1 p.m. Eastern Time on Bloomberg markets. Coming
Bloomberg Daybreak
Fresh "David Weston" from Bloomberg Daybreak
"I'm Nathan Hagar. And I'm Karen Moskow. And U .S. stock index futures are little changed this morning. We check the It's markets all day long here on Bloomberg again. Futures little change. Ten -year Treasury little changed as well. The yield 3 79 percent. Nathan. Karen, we'll have more on markets in a minute, but we want to get an update first on the smoky blanket billowing across the East Coast. It could stay with us a few more days. Let's get the details from Bloomberg's John Tucker. John. And Nathan, the haze and smoke from those fires in Quebec and Ontario will return today and tomorrow. Our meteorologist Rob Carolin tells us a low pressure system over Atlantic Canada is going to start to pull away over the next few days. Shouldn't be as bad across the tri -state area. You'll be a bit better, but there will be some smoke. Yesterday, the Boston area escaped the smoke and they should do so again today. It definitely looks hazy in Washington today. Now the wildfire smoke is hazardous in part because it contains tiny, inhalable particles. The health experts recommend everybody limit their time outdoors. Now the air quality index in New York City reached yesterday. 392 That's a level considered to be hazardous for all groups, including healthy people. For comparison's sake, 200 is the equivalent of smoking an entire pack of cigarettes, breathing polluted air also linked to an increased risk for dementia. And Nathan and Karen, being at work could be the safest place. Modern buildings, air handling and ventilation systems are operated to optimize indoor air quality and use high -efficiency filters. In New York, I'm John Tucker, Bloomberg Daybreak. Alright John, thank you. Well, another major story we're following this morning takes us to politics. President Former Donald Trump has been notified that he is a target in the classified documents case. Bloomberg's Ed Baxter has the story. The notification in a letter from the Justice Department saying that this is the result of federal the probe. Prosecutors have been building a case including testimony from former aides including Chief of Staff Mark Meadows. Meadows has testified before federal grand juries in Washington and Miami for counsel special Jack Smith. The Justice Department is required to notify individuals if they are a target based on substantial evidence linking that person to the commission of a crime. In San Francisco, I'm Ed Baxter, Bloomberg Daybreak. Okay Ed, thank you. On Capitol Hill today, House Republicans had planned to vote on holding FBI Director Christopher Wray in contempt. Now, that's been called off. House Oversight Chairman James Comer says the FBI has quote caved and is letting all members of his committee see a disputed document. Republicans claim the document links President Biden to wrongdoing by an unnamed foreign national. Meantime, President Biden has vetoed a bill aimed at killing his high profile student debt relief program in a White House video the president said he'll keep fighting to make sure college is cheaper. Some of the same members of Congress who supported this bill voted through huge tax cuts for corporations and the wealthy as well. But when it comes to hardworking Americans trying to get ahead dealing with the student debt relief, that's where they drew the line. President Biden did not address some of the congressional Democrats who broke with him on the bill. Senators Joe Manchin and Joe Tester and Democrat -turned -independent Kyrsten Sinema joined with Republicans to vote against the student debt relief measure. Karen, UK Prime Minister Rishi Sunak is in Washington. today, Later he takes part in a joint news conference with President Biden. That's on the heels of a meeting with House Speaker Kevin McCarthy yesterday. When our bond is stronger, the world is safer and democracy grows further. When we've stood the world has benefited and what we need to do now is figure out how do we make sure that that relationship is strong to deal with the challenges of the future and that's what we're going to be talking about, but particularly strengthening our economies because that's what it's all about. Prime Minister Sunak's joint news conference with President Biden is set for 1 30 p .m eastern. And we turn Wall to Street now Nathan and we've been speaking with some high profile names at the Bloomberg Invest conference in New York. Bank of America CEO Brian Moynihan tells us higher capital requirements will hit lending. That's after reports large that U .S. banks may have to boost their capital by an average of 20 percent. You know in the end of day it's a fairly straightforward if our capital ratios go up by 100 basis points we basically you know simply put you can't make about 150 billion dollars of loans and because people say well you have more capital you make more loans but if we took risk on that capital we wouldn't have that capital ratio so it has to be a riskless bill to capital can't be out there taking risk bank of america CEO Brian Moynihan spoke with Bloomberg's David Weston stay tuned for more of that interview coming up shortly on Bloomberg Daybreak we also heard from Larry Dalio Bloomberg Invest Karen the billionaire founder of Bridgewater Associates thinks we're getting close to the end of fed interest rate hikes interest rates are now at a level that they're probably gonna stay out but they're probably not gonna rise much from here and there's tightness and the consequences of that are going to be a weaker economy going forward Ray Dalio predicts the US economy will get weaker from here catch the full conversation and all our best interviews each day on the daily Bloomberg talks podcast on Nathan we also caught up with Kim Kardashian she was at the super return conference in Berlin the reality TV star turned entrepreneur presented her debut private equity fund to a crowd of curious investors and she spoke with David Rubenstein I'm honestly most looking forward to my relationships with the founders I love hearing people's stories and hearing what their magic sauce is behind their company and why they wanted to start the company that they did and and what their vision is and just hope that I can help that and Kim Kardashians private equity fund sky partners is targeting up to 12 investments each requiring anywhere from 100 to 500 million dollars of equity straight ahead your latest local headlines in a check this is Bloomberg take a look at some of the other where he's making news in New York and around the world we're joined by Bloomberg's Michael Barr good morning Michael good morning Nathan Germany blame Russian president Vladimir Putin for the destruction of the Kokova Dam in southern Ukraine Germany was joined by other European NATO members in denouncing it as a war crime the U .S. has yet to make assessment an on what caused the dam to collapse state department spokesman Vedant Patel says while it is still trying to figure out what happened the U .S. government is mobilizing humanitarian resources I'm certainly not going to get into internal assessments but I will note that we continue to be in close touch with Ukrainian authorities on providing assistance to the civilians displaced as well as continuing to assess what transpired Ukrainian authorities are rushing supplies of drinking water to areas affected by flooding from the collapsed dam. Supreme Court justices and other federal justices release their annual reports disclosing paid travel outside income investments significant gifts and the source of spousal income. Clarence Thomas and Samuel Alito have asked for an extension which means their filings won't arrive until after the end of the term. President Joe Biden has invited thousands of LGBTQ individuals to the White House today to celebrate Pride Month Biden plans to announce new initiatives to protect communities from attacks. White House spokesperson person Corrine Jean -Pierre. We believe that not only does this community need to be celebrated and continue to be celebrated as he's done many times before in this in this past two years, but we also need to make sure that we let the community know that the president has their back and we're going to continue to fight for them. White House spokesperson Corrine Jean -Pierre is the first openly gay press secretary. It's the next chapter in the battle over the flood of migrants to New York City and upstate counties. The Big Apple sued 30 upstate and Long Island counties for issuing executive orders blocking local hotels and hotels from contracting to house migrants
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Seven points Lori that's down about two tenths of a percent. The Dow Jones Industrial Average, 169 points lower, that's down half a percent and the tech heavy NASDAQ 100, 23 points lower down two tenths of a percent, at your Bloomberg business flash on John Tucker. This is balance of power on Bloomberg television and radio. I'm David Weston history was made early day in Washington, D.C. where the democratic caucus in the House of Representatives voted for its leader in the new Congress to be Hakeem Jeffries, a black congressman from New York. I'm going to say take us through this history being made. We welcome now Bloomberg political contributor Genie Chan xeno of iona university. So welcome. Great to have you here. So as I said, this is historic. We have never as far as I know, had a black congressperson in leadership. He's the first black lawmaker in either party to lead in Congress. So it is quite a historic moment. It's also a big moment for Democrats because in addition to that, he is sort of turning over into a new generation. He's 52 years old, the democratic leadership has been famously elderly at this point. It's like 30 years younger than steny Hoyer. Pelosi, I think. That's right. And so it is, you know, Nancy Pelosi and her team have run the caucus for 20 years now. So this is a big shift for Democrats. And the interesting thing to me was it wasn't much of a fight. It was really more of a coronation as it was described in one of the pieces on the Bloomberg today, and I think that's an apt description of what happens by unanimous consent, that you need to have your vote. They just all say they declared it. So talk about that. There's a lot of challenges that we should talk about for mister Jeffries at the same time. The transition from a distance looks pretty smooth. They have Nancy Pelosi go on the floor, make her sort of goodbye speech as leader. And then there was no real contention about the replacement. They had the team in place to come in. They did. It was awfully smooth and unfortunately for Hakeem Jeffries. I don't think it's going to continue to be as smooth going forward because he's got an awful lot to contend with. He's going to be taking over in the new progressive caucus of which he is a member in name at least and describes himself as a progressive is I think a hundred to 306 members in the new Congress, the biggest caucus, or the biggest progressive caucus we've seen, and he has famously butted heads to a certain extent with his neighbor, Alexandria Ocasio-Cortez on many occasions. And other members of the caucus, including Barbara Lee from California, who he narrowly and surprisingly beat out for leadership a few years ago when he ascended into leadership. So you've got some progressive suspicion about hakim Jeffries going into this. Well, and perhaps, perhaps, underscoring the possible challenges for him, we then have David cicilline come forward today out of as far as I know nowhere saying, I like the challenge Jim Clyburn for assistant leader because we need an LGBTQ+ person. Yeah, this was a stunning turn because you know, this is something, you know, Jim Clyburn is something of an institution in Congress, he's beloved. He certainly brings his own diversity his own history to the leadership there and to hear cicilline come out and say he's going to challenge him to bring in more diversity from the LGBTQ+ community is something of the biggest stunner we've had on the democratic side in a while. I'm not convinced it's going to go very far at this point, but I do think it speaks to the fact that Democrats are a very young party. And this is something we don't talk about a lot because leadership has been older. But in this last election, they lost every age group over 45. And this is going to be a challenge for Hakeem Jeffries as he tries to move this caucus forward because of course he's younger, but he's a more traditional Democrat in that respect. Well, listen, youth is good. As we get older, we wish we had more views. I wish I had more of you. At the same time, there's also an experience that comes with a bit of age and certainly some of the Nancy Pelosi standing Hoyer. What about Hakeem Jeffers? What kind of experience does he have? What is he going to need to keep this somewhat fractious caucus together? You know, I was just looking back and a lot of people say he has a fairly thin legislative record. He's more known for his style. You know, he was the House impeachment manager who quoted biggie small if I'm saying the name correctly on the House floor. Most people didn't know what he was talking about. Yeah, I have to say, I didn't either. But I looked it up. But he's so he's a very personable individual. He is a great politician. He's a from Brooklyn so New York, go, go, go into the leadership in Congress, but he's, you know, in terms of a legislative record, again, you've seen progressives push back. They feel to a certain extent, he is too moderate to traditional. For instance, he is an opponent just like Pelosi was of the Green New Deal, something with progressives really hold very dear, so I do think we may see some headbutting there. And also don't forget that in this last election cycle, he joined with Josh gottheimer from New Jersey a very conservative member of the caucus, and he tried to fight off or fend off challenges to incumbents from the left part of the party, which really rankled a lot of progressives. One last one because you're a political science professor. And so you would have some perspective on this. It could be argued that, in fact, he's got a break. Hakeem Jeffries, because they're in a minority. It would be harder if you were going to be Speaker of the House, right from the start. It would, you know, we keep saying he's got big heels to fill and tons of Nancy Pelosi and that's true, but he does have the benefit of sort of getting his feet wet, if you will, as a minority leader, and then moving up. So it's going to be a challenge, though, either way, because this is a very energetic young caucus. He is going to be leading going forward. He'll need all that energy of use. That's right. Thank you so much to Bloomberg political contributor to Jeannie Chan xeno. She is from iona university. Still to come, we're going to talk to labor relations expert Alexander colvin
Bloomberg Daybreak Europe
Fresh update on "david weston" discussed on Bloomberg Daybreak Europe
"For watching. Coming to Daybreak Europe Live on London DAB Radio. We'll get a check of the markets for you to top shock rate hikes this week from Canada and Australia. They're boosting bond yields and equities as sliding traders have added to their Fed hike bet swaps now close to pricing a quarter point hike for July from the Fed so as we scan down the board the stock 600 is currently 10 a tenth of a percent down nearly half the basket in the green led by basic resources and banks but dragged down at the bottom of the basket by telecoms and technology. Elsewhere in Europe the FTSE 100 100 down a tenth of a percent. The FTSE 250 flat. Same for the CAC and the DAX is almost flat, but this week. See you then. Thanks 10th of a percent. Looking ahead to the Wall Street open S &P E -minis flat just in the red and Nasdaq futures down and three tenths of a percent yesterday of course was the worst day for the Nasdaq since April tech shares bearing the brunt of jitters the over higher rates. And currently the Bloomberg dollar spot index down two tenths of a percent Tom. Okay to the top Top stories of the day then the Prime Minister Rishi Sunak has met US business leaders and politicians ahead of a visit to the White to see President Joe Biden. The first day of soon extra included a baseball game where the two countries national Blanchoms were played. The prime minister also met Republican House Majority Leader Kevin McCarthy. When our Bond is stronger, the world is safer and democracy grows further. When we've stood together I agree with you the world has benefited today. And what we need to do now is figure out how do we make sure that that relationship is strong to deal with the challenges of this week. the We're going to be talking about but particularly strengthening our economies because that's what it's all about. sunak is also hoping to use the trip to highlight the UK's bid to become a leading voice in regulating I he told reporters he plans to bring up the issue with the US president later Bank of America CEO told Bloomberg has that higher capital requirements will hit lending Brian Moynihan's comments follow reports that large US banks may have to boost their capital by an average of 20 % here's what he told old David Weston at the Bloomberg Invest conference in New York. You know in the end of day it's a fairly straightforward if our capital operations go up by under basis points we basic you know simply put you can't make about a hundred fifty billion dollars a month and it because people say well you have more capping make more loans but if we took risk on that capital we wouldn't have that capital ratio so it has to be a riskless build a capital can't be out there taking risk Moynihan and his rival CEOs are expecting the updated capital requirements amid an international overhaul of capital rules that started more than a decade ago in response to the 2008 financial crisis. Staying with the Bloomberg Invest conference, Ray Dalio says the US is entering a crisis with too much debt and too few buyers. The billionaire founder of Bridgewater Associates spoke exclusively to us at the expense we are at the beginning of a very classic cycle late big cycle debt crisis when the supply demand gap when you're producing too much debt and you have also a shortage of buyers. Ray Dalio also told us he expects the US economy to get worse while interest rates will stay faded for some time to come. You can get the full interview along with a host of others from the conference via the Bloomberg talks podcast it's also our best conversations with business and world leaders in one place. UK regulators have tightened rules around the marketing of crypto assets including banning the refer a friend bonuses that are popular in the industry. The FCA's executive director for consumers and competition Sheldon Mills told us here on Daybreak Europe why they're making the changes. Our research shows that people all are affected by the advertising, particularly advertising which says you could make a lot of money from crypto. People are attracted to that and that they do go ahead and buy crypto some of them regret it afterwards. Sheldon Mills and the Financial Conduct Authority are also introducing a 24 hour cooling off period for the first time crypto investors. The move brings the sector into line with others that it considers high risk.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"On Twitter, Lisa big win for travelers who are terrible at maths. You're a dollar parity. That's brilliant. That's brilliant. How do you start our package there? And end it with John Farrell. I don't know who made that decision, but we say, welcome to you. I'm Tom keen alongside Lisa bramlett. We are not David Weston, but we've had so much fun here on a Friday to bring you Wall Street week on Friday and of course into the weekend. Right now it is a joy to go into the trenches on Wall Street week of strategists and thinkers on Wall Street adjusting in real time. Laurie calvasina is the RBC capital markets. She is exquisite as small caps in mid caps and also the gyrations of the market. A lot of good work there, bouncing off the work in economics of time Purcell. David Bianco is an institution far too young for the years on Wall Street, Deutsche Bank, and now with DWS group America, so valuable, I think he walked out the door and they brought him back a second time. Two of you thrilled to have you on what is absolutely an oddest week in years. Laurie, we're equities removed from the turmoil in the other asset classes. I think they were a little bit this week, but frankly, I think they deserved a bit of a break after the year that we've had in the past couple of months that we've had. And look, I think investors on the equity side were also gearing up for earnings. And we were in a little bit of a holding pattern until we got to the end of the week. And financials, I mean, there was definitely interesting moves and financials today once we finally got through the kind of thing. You should always ask age this morning. David Bianco helped me there because in your research, you know what you say, the banks are of interest. But the banks are all varied. Which kind of bank is where investments should be today. The big banks, the ones that have sticky deposit bases, the ones that will benefit from the fed hiking and the continued third hiking. So it's not comfortable to own banks if we're perhaps heading into a recession. But even if we do have a recession, this is not going to be a deflationary type of financial crisis. I think the credit costs will be well behaved and the banks will do fine. How much our financials and idiosyncratic story versus a story of macroeconomics strength really because that really was the feeling when JPMorgan came out and over time it became something different. Well, it's a good question. And I do think when you have, it's financials are always a macro story. It's very difficult for financials not to be a sensitive to the macro and purely idiosyncratic. However, what's happening in the macro situation right now is inflation and the fed hiking. So who's the only beneficiary of interest rates going up? It's banks. Everybody else is worried about that, not just in terms of slowing economy and earnings and PE pressure, but banks benefit, at least with higher earnings from higher interest rates. So given that backdrop, Lori, and given the fact that you said that really, stocks were somewhat immune to the volatility we were seeing in other asset classes. What are we pricing in? Is there a disconnect right now between the asset classes with stocks painting a much more sanguine picture? Look, stocks are pricing in a recession at this point in time. I mean, we've moved beyond kind of growth scare territory, which is where we were for the first part of the year. And now we've been down in around 25% from the peak or so. And your typical recession draw down on a median basis is 27. Your average drawdown is 32. So we're kind of pricing in that short shallow recession scenario. We're not pressing on a typical recession. We're not pricing in a severe one. We're not pricing on an extended one. But I think the good news if we do have that short shallow recession in the back half of the year, the equity market got a lot of that damage out of the way early. Well, I joined a Friday evening and into the weekend as we get to continue with lowering calvasina. And David Bianco as well. Again, we've got so much to talk about here over the hour. I can't say enough about the importance of speaking with Gregory Fleming as we will hear in a bit and again, professor summers was immensely prescient today on some of the images back in 1998. He says maybe panic less in mind. It'll be interesting. Yeah, and that's certainly a theme as we try to chart a path. What did we say this week, that it's not necessarily the question of whether we get a recession, but the path to get there in the path out of it to get back to that 2% inflation rate. We've got much more
Bloomberg Daybreak Europe
Fresh update on "david weston" discussed on Bloomberg Daybreak Europe
"Of sectors showing gains energy shares the best performing up by nine tenths of one percent banks are half percent a higher at the open the worst performing sector though is technology down by 1 .3 percent at the open the today story is around rising bond yields though we're looking at the two -year treasury yield up by three basis points 4 .59 percent and we're just waiting for the opening moves on gilts as well it looks like they're following the rest of the trend we're seeing across Europe yields pushing higher higher there as well yeah still waiting for the DAX to open but we'll get back to the markets in a moment let's get to our top stories the Prime Minister Rishi sunac has met us business leaders and politicians ahead of a visit to the white house to see president joe biden the the first day of Sunag's trip included a baseball game where the two countries national anthems were played the Prime Minister met also Republican House Majority Leader Kevin McCarthy when our bond is stronger the world is democracy goes when we stood together I agree the world has benefited and what we need to do now is figure out how do we make sure that that relationship is strong to deal with the challenges of the future I know that's what we're about going to be talking but particularly strengthening our economies because that's what it's all about Sunag is also hoping to the use trip to highlight the UK's bid to become a leading voice in regulating AI he told reporters he plans to bring up the issue with the US president later Bank of America CEO has told Bloomberg that higher capital requirements will hit lending Brian Moynihan's comments follow reports that large US banks may have to boost their capital by an average of % 20 here's what he told David Weston at the Bloomberg invest conference in New York you know in the end the end of day it's a fairly straightforward if our capital ratios go up by 100 basis points we could you know simply put you can't make about a hundred fifty billion dollars of loans and it because people say well you have more capping make more loans but if we took risk on that capital we wouldn't have that capital ratio so it has to be a riskless build bill a capital can't be out there taking risk Moynihan and his fellow bank CEOs are expecting the updated capital requirements amid an international overhaul of capital rules that started more than a decade ago in response to the 2008 financial crisis saying with the Bloomberg investor conference Ray Dalio says the US is entering a crisis with too much debt and too few buyers. The billionaire founder of Bridgewater Associates spoke exclusively to us at conference. the We are at the beginning of a very classic late cycle late big cycle debt crisis when the supply demand gap when you're producing too much debt and you have also a shortage of buyers. Ray Dalio also told us he expects the US economy to get worse while interest rates will stay elevated for some time to come and you can get the full interview along with a host of other interviews from the Bloomberg Invest conference via the the Bloomberg talks podcast it's all our best conversations with business and world leaders in one place. UK regulators Facebook page. have Thanks for watching. Thanks for watching. in the industry the FCA's executive director for consumers and competition Sheldon Mills told us here on Bloomberg Daybreak Europe why they're making the changes our research shows that people are affected by the advertising you know when they see the advertising particularly advertising which says you can make a lot of money from crypto people People are attracted to that and that they do go ahead and buy crypto. Some of them regret it afterwards. Sheldon Mills and the Financial Conduct Authority are also introducing a 24 -hour cooling -off period first for -time crypto investors. The move brings the sector into line with others it considers high risk. Staying in the UK, the supply of workers expanded at the quickest rate in two and a half years in May according to a closely watched survey. With more here's Bloomberg's Ewan Potts. It's another sign the UK's labour market is starting to cool according to a poll of recruiters by KPMG and the Recruitment and Employment Confederation there's been a jump in the number of people available for work. Firms say there are more redundancies and there has been a slowdown in hiring. The loss hundreds of of thousands of people from the workforce since the pandemic led to a bidding war for staff but today's report also shows pay pressures easing with salaries for newly appointed staff rising at the slowest pace in over two years. That will cool fears of a wage -price spiral. Welcome news for the Bank of England as it battles stubbornly high inflation. In London, I'm Ewan Potts, Bloomberg Europe. Kim Kardashian has presented her debut private equity fund to investors at the Super Return conference in Berlin. The reality TV star turned entrepreneurs partnering with Carlisle Group veteran Jay Sammons to start Sky Partners. During the discussion, Kim Kardashian sought her to present social media following and history of success in promoting brands as part of the pitch to investors. I'm honestly most looking forward to my relationships with the founders. I love hearing people's stories and hearing what their magic sauce is behind their company and why they wanted to start the company that they did and what their vision is and just hope that I can help that. Bloomberg understands that Sky Partners is targeting up to 12 investments, each requiring anything $100 from to $500 million of equity. Her panel proved to be the most popular at the three -day event, with an overflow filled room to capacity. Those are some of our top stories this morning. I'm not surprised by that. What does that tell you about the private market's business? It needs the magic sauce that Kim Kardashian has promised us. It's worth remembering some of her big business deals as well, her underwear company Skims, which started in 2019, has been valued at its latest fundraising round of more than $3 billion as well, and partnering with someone like Jay Sammons. Look, he has a long history of investing with the Carlisle Group well, as the likes of Beats by Dre, the sportswear brand Supreme. There's something very zeitgeisty about all of this, so it'll be very interesting to see where they decide. Yeah, absolutely. So yesterday from Super Return, we brought you all the kind of very worthy stuff the about higher interest rate environment, what that's doing to returns in the private sector. And now, now we're on to different stories. But anyway, yeah, all about the storytelling. Indeed, that is exactly it. Well, let's get more on a different story that we're following for you today, which is Rishi Sunak's trip to the US. He's been meeting congressional leaders and visiting a baseball game as he tries to strengthen ties between the UK and the US. Wearing a baseball jacket, we should point out for those who have not seen the images. Worth Googling, definitely. Also, of course, featured in our Bloomberg reporting on the story too. Our UK correspondent, Lizzie Bergen, is here with more on this story for us. Reference to the baseball game. It's been described as baseball diplomacy. Was there any home runs in style? Well, I'm not sure it out, struck thankfully. Is that the right term? I don't know, so I'm relying on you, Lizzie. Nor would he, really, because he's actually a cricket man, isn't he? So he says. Yes, he was at this Washington Nationals and Arizona Diamondbacks game and there'd been some speculations as to whether he was going to throw the first pitch, I think that's how you put it, he and just whether sidestepped the opportunity to avoid the embarrassment, but he clarified to reporters traveling with to him Washington that he was not actually ever meant to do it. But he took to the stands after the game. I'm single with executives and politicians because, really, the number one aim of this trip is to shore up Britain's economic ties with the US, to try to put them on an even deal with the security ties with the US, and behind the scenes officials are describing it as they want a trade deal in orbit. Okay, it's a funny reference, isn't it, baseball, because it usually relates to the US and Cuba, or I pictured someone showing up with a baseball bat in a rather undiplomatic fashion, supposedly not the image they were going for. that's Anyway, irrelevant. Regulation of AI, though, very relevant, is expected to be one of the topics that comes up when the Prime meets President Joe Biden later. What is Sunak hoping to get out of this conversation? Well, he might be using his baseball bat to try and persuade Joe Biden into letting the UK take a leadership role in in the international regulation of artificial intelligence, because he wants to establish a global watchdog for AI here in Britain.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"I'm Bloomberg television and radio. I'm David Weston. Recession. Is it coming? When is it coming? And is it possible it is already here. We asked former treasury secretary Larry summers and it turns out that his views are changing. Look, I think we're seeing that inflation, which is eroded people's purchasing power. The end of the fiscal stimulus that gave people a lot of cash last year, higher interest rates that are discouraging housing and housing allied kinds of spending. Generalized increases in uncertainty and just a bit more feeling of insecurity, all of that is taking a toll on spending. My guess is that that's going to continue for some time. And I think you'd have to say that whatever you thought about recession risks a month ago, the recession risks through the year 2022 have to have gone up in a quaint material way. I felt for a long time as you know, David, that we're not going to have inflation return near target without a significant economic downturn. But that downturn could happen either because interest rates set by the fed rise very, very sharply, or it could happen because of a kind of self fulfilling process coming out of the high inflation and reductions in people's incomes and the latter possibility is looking like is looking more likely today than it was. And of course, if the economy did go into recession in the next 6 to 9 months, then you probably see a reduction in inflationary pressures and you'd see the fed probably feel that it had to push rates up less than it would if the economy was continuing to grow strongly and labor was and there was very, very strong demand pushing up wages and prices. So I just want to be very precise here because you and I have talked quite a bit about the likelihood of recession this year and next. And you said next year you think it's much more likely than that. But thus far you've said this year, maybe not so much. Are you saying given the data coming in perhaps a recession or a significant downturn, whether it's a technical recession or not, maybe coming faster than you thought? Yeah, I think the risks of a 2022 recession are significantly higher than I would have judged 6 or 9 weeks ago. Look, David, we've got the first quarter numbers in the bank. They are negative for GDP. There are many forecasters who believe that the second quarter, which ended yesterday, also had negative GDP growth. It's not really the formal definition of recession, but people often say it's a recession when you have two quarters of negative GDP growth in a row. And there's, I think, probably close to a 50 50 chance. Maybe it's a bit less than that, that we've had two negative quarters in a row. So I think you have to say that the chance that a recession is ultimately dated is having begun during 2022. Has gone up gone up significantly. You can watch more of Larry summers tonight at 6 p.m. Eastern Time on Wall Street week. Check out the balance of power newsletter on the terminal and also online, coming up, bounce apart, continues on Bloomberg radio in our second hour, we'll talk to former U.S. ambassador to NATO
Bloomberg Daybreak Europe
Fresh update on "david weston" discussed on Bloomberg Daybreak Europe
"Business Flash. Bonds are slumping after two shock interest rate hikes from the Bank of Canada and RBA this week. Gemma Bunt yields on the two year up five basis points to 2 .9 % yesterday. Peripheral European yields also went smartly higher. US two year yields trading this morning at 55. It also affected tech stocks. NASDAQ stocks actually saw their worst day in April and stock futures for the US are significantly lower. NASDAQ futures down by four tenths one of percent. US stocks 50 futures also dropping four tenths of one percent. The Bloomberg dollar spot index is down a tenth of one percent and a sell In Asia the topics drops 1 .1 % and the Nikkei is currently down by one percent. That is your Bloomberg radio The Business Flash, the latest on what's moving markets. Billionaire Ray Dalio, the founder of Bridgewater Associates, says the United States is seeing stubbornly high inflation along with elevated real interest rates. He's warning of a late stage debt crisis and believes the situation facing the economy will get worse. Ray Dalio has been speaking to David Weston at the Bloomberg Invest Summit in New York. There is a debt cycle. There are cycles. We're used to those. They last on average about seven years, give or take about three. And you know, you have a recession and interest rates are low. Inflation is low and Reserve the Federal becomes stimulative and then you have growth, you have noninflationary growth and you have noninflationary growth and they type monetary policy and then you have a slow up or the recession that follows until the cycle participates. It happens that way. We've had 12 of those were in the 13th. We're about halfway through that cycle. We're at the point where interest rates have to rise. Okay, so the level of interest rates, you have to satisfy a debtor and a creditor and so that means interest rates have to be high enough that the creditor gets a real return higher than their money and so and if you don't do that you create the cycle that we have before where money is essentially free, interest rates are nil or in some is case negative and you have a situation where you don't have to pay principal, so money was essentially free, then that imbalance is enormous and it's made more enormous because even then the demand supply is not adequate, there's not enough demand to buy those bonds and so the Federal Reserve's got to come in there and print money and buy those bonds and redistribute wealth so you have that so now you're moving, we have moved to a level of real interest rates, think about inflation, that is depending on how you calculate, if you look at tips or if you look at short term interest rates, they need a one to one and a half percent real rate, those days that we have seen in the past are over and there's big adjustment in that so the headline for that is, so who have been the losers? Who have been the winners and who have been the losers? This is a different kind of debt problem in that what happened is, in order to create this big transfer of wealth that there needed to be in various ways, the government borrowed a lot of money because they spent a lot more than they earned and they sell a lot of bonds and then the Federal Reserve buys bonds and it subsidizes those bonds and so the big losers of this cycle has not been the individual balance sheets because the individual balance sheets have been improved. It is the fact that those who are holding government debt are the ones that are having the losses. So the central banks have all lost a lot of money. The commercial banks bought a lot of these debts so when we look at the commercial banking problem it is largely a government debt problem because there was the financing of holding bonds with short term interest rates and so that was the squeeze. So you have that particular as we move forward the higher you raise the debt to income ratio the more difficult that balancing act becomes and so we are seeing a trade off now that interest rates have got to be high enough for the creditor but not too high for the debtor and so you're seeing now this adjustment in which you're having sort of a 1 percent -ish growth rate not the household sector having a problem but those are holding the bonds and so on they're having the problems and so you're seeing growth come down but still an inflation issue. The inflation issue comes from two parts really. First of all if you spend a lot more than you earn and you give a lot of money in credit you're going to have an inflation but it also comes from the supply -demand bond of bonds so if you look at who's benefiting in this the household sector the workers are benefiting. isn't This a classic recession in which the unemployment rate goes up because the unemployment rate is remaining relatively good because there's wealth transfer and they are also having higher wage gauges and then you have the inefficiency of the global supply chains which happens there. So what that means I think is that you have this stubbornly high inflation we're not going to go down to our targets for a number of reasons and then there has to be the real interest rates remaining high in that and that creates a sort of stagflation kind of environment. So let's talk about that stubbornly high inflation. There are some who think that there are forces that may drive it back down. Demographics in particular. Too much savings actually globally as population the ages at the same time reduction in productivity less demand coming online. Some people argue in fact that we will have the inflation come back down on its own and therefore the nominal rates if you add your one to one and a half percent on top of it for the real estate, they will come down. Do you disagree with that? Yes. In the it's a matter of the amount of money and credit created and it's also a matter of productivity and so when we look at the amount of money and credit we will spend a lot more than we will learn. We know the budgets, we know the projections, we know individuals. That's going the big risk there is a supply demand risk. So we are going to sell a lot of bonds and and then the question is does the Federal Reserve come in and then start to print them and make that. So I think from from the demand including employment and the amount of money created we have that power and then we're also living in a different world particularly as supply chains change. The only big question is the technology impact like if we take a five -year you were talking about a longer term horizon. We'll have to talk about technology and the impact that people have on that in terms of productivity. But the demographics is not a favorable thing because what we're going to have to do is draw down savings and there's going to be lesser number of population. So in terms of the labor component I don't see that as a net positive. That was Ray Dalio founder of Bridgewater Associates. They're speaking to David Weston at the Bloomberg New York. Coming up next a check of the markets. This is Bloomberg Daybreak Europe. The priority for this government is the cancerous infighting that is consuming the heart of government. Indicators of underlying inflationary pressures remain high. The banking and obviously is a really small player in the global central banking universe. He really wants to make Britain at the forefront
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"On Bloomberg television and radio I'm David Weston We had the second round of primaries leading toward those midterms elections Yesterday in Nebraska and West Virginia And if you're keeping a scorecard on president Trump's endorsements is it worth something of a split decision to bring us up to speed on where we are We turn now to our Washington correspondent Joe Matthew He is host of sound on That's weekdays on Bloomberg radio Joe Thanks so much for being with us I guess start with the Trump loss in Nebraska Yeah a lot of people woke up this morning to the big headline David first Trump loss of the cycle but it requires a little more context to kind of understand what happened here Donald Trump endorsed a largely self financed candidate in Nebraska's Republican gubernatorial primaries His name was Charles herbster He lost to Jim pillon a self described pig farmer who was endorsed by the sitting governor who has to go away because of term limits But herbster who I mentioned is facing a sexual assault charges allegations that dogged him through the campaign So Trump supporters are not taking this like a huge loss He lost by just a couple of percentage points especially when you have West Virginia Big test for the Trump brand here with Trump's endorsement of congressman Alex Mooney After Mooney's appointment congressman David McKinley voted for the infrastructure law which was very popular in West Virginia and also voted for the independent commission investigating January 6th Donald Trump did not like that He endorsed Mooney who won by almost 20 points David It was a huge spread and we didn't really know what to expect here because there was not much local polling going on This is significant because Joe Manchin West Virginia senator Joe Manchin a Democrat actually cut a commercial a TV commercial for the Republican McKinley in this case And it set up a bit of a Trump versus Manchin contest Here's a taste For Alex Mooney and his out of state supporters to suggest David McKinley support a build back better is an outright lie David McKinley has always opposed reckless spending because it doesn't make sense for West Virginia Pretty remarkable David considering the level of influence that Joe Manchin has over West Virginia politics So a lot of Trump supporters are feeling pretty good this morning They're calling that a win So tell me your best judgment is this a loss for mister Manchin Is it a win for mister Trump or a little bit of both It is a little bit of both Joe Manchin has a very special place in West Virginia politics and crossing the aisle like this to weigh in on a Republican primary while he's been in many cases and lockstep with Republicans on issues like build back better which he voted against And of course one of the authors of the infrastructure law that will bring a lot of money into West Virginia that endorsement was key And David a 20 point loss it was actually 18 points is significant here The Trump brand is looking very strong in West Virginia Well and that carries us forward maybe as I say this is the second round of primaries We've got some big ones coming up next week as you know well including Pennsylvania didn't yesterday give us any indication of where we're headed Well look it looks like it's going pretty well for Donald Trump here who again has endorsed Doctor Oz the television personality in that Pennsylvania primary that we're looking ahead to next week This is a very close race though That's going to have a lot to do with the way people interpret Donald Trump and his influence over the party as we head deeper into primary season But this brand is on the line the Trump brand is on the line for the balance of May and we'll be back a week from today with more on that Well and if he delivers on that Joe then the Trump brand will be on the line come November because if he delivers all these people then if he hasn't win then he's got a big problem It's a great point that you turn out here It's one thing to win a primary But what will the maga brand do in a general election following two years of Joe Biden in The White House That's a big question right now and it's going to have a lot to do with the outcome in November Okay Joe always such a pleasure to have you with us Joe Matthew he's our Washington correspondent He's also a host of sound on that airs every day of the week on Bloomberg radio at 5 p.m. Eastern Time And we want you to check out the balance of our newsletter that is on the terminal end also online.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"David Weston this week U.S. inflation is at its hottest since December of 1981 reinforcing the need for the fed to follow through on its aggressive rate hike plan and for her view on the fed's next steps I talked to Stifel chief economist Lindsey pie exit Well according to fed officials we certainly need to take much more aggressive action than previously laid out by the fed by the fed was thinking that 25 basis points steps would be enough to slow the pace of inflation Is this consumer report wasn't bad enough producer prices send another signal reinforcing this relentless upward pressure in cost And this relentless pressure continues There is also talk about a peak and some investors are actually putting money on that that these numbers are as high as they're going to get Do you think so Well I think the market participants are very anxious to call a PEEP and inflation And we've been hearing these calls for peak inflation for some time now At this point I think it's too early to say that we're at peak levels The more important takeaway is that inflation is likely to remain elevated for quite some time Until we can talk about reinstating broad based balance to the global marketplace until we can talk about resolution reached overseas inflationary prices at pressures because we are likely to be with us for quite some time That's a big part of this of course The war in Ukraine has really changed the whole story around inflation It's something that we were talking about before The White House labeled it But Putin price hike But that is a very real situation The fed is also at the mercy of this war Well they are but it's just a second layer Remember we were already seeing very strong upward pressure on prices as a result of the aftermath of the COVID-19 crisis The international conflict has simply layered on a second bout of pressure on prices particularly in the energy and agriculture markets But even if we strip out energy prices we're still seeing broad based inflation suggesting again that as the supply chain disconnects remain the fed is still going to face a very difficult inflationary environment forcing them to take more aggressive action that I think they would have needed to if they had started removing a crisis level accommodation earlier Well obviously this energy situation may not change any time soon right There are a couple of different elements to this I guess I'll ask you this way Lindsay If somehow The White House managed I don't mean to put this all in The White House If the United States managed to solve the supply chain crisis if we got through that or if it solved itself how much more work would have to be done with all the other factors we're talking about Well I think if we start to solve these supply the supply chain dislocation be that in the energy market or more broadly across the marketplace this would significantly seize inflationary pressures and remove some of the pressure on the fed to raise rates quite as aggressively as they've laid out So if we start to see more organic factors that come into the marketplace and remove that opioid trajectory and cost the fed may not need to raise rates as much as they suggested What are the chances of that happening Oh I think very limited Unfortunately I do see inflation remaining quite elevated Policy officials certainly are in a fruitful discussion to try and come up with solutions to supply chain constraints but I don't see anything coming to fruition at least in the near term Do we put too much emphasis on not just the fed but The White House in general the executive branch being able to with this quasi Federal Reserve part of the executive but not really Do we put too much stock in their ability to affect this I know always needs to be blamed But in many cases they don't have the tools to deal with this other than blunt force hiking interest rates Well they don't in the short term but from a policy perspective be that fiscal policymakers or monetary policy makers we need to have more of a long run outlook for policy So often it's just a short term 30 day 6 month policy when we should be looking out 5 to ten years particularly when it comes to energy So you talk about putting solutions in place to ease the supply chain to constraint we should never have found ourselves in this position This should have been a longer term trajectory of energy independent having a stockpile that could well support demand domestic demand for 6 to 12 months If not longer and so I do think the policymakers need to start thinking about the best policy solutions for the economy for the country beyond the next 6 months How hopeful are you that the fed I shouldn't say hopeful how much do you expect the fed to be able to reach a soft landing or is that just not realistic anymore Historically speaking the fed doesn't have a great track record for navigating a soft landing meaning they're able to tap down inflation enough but keep in positive territory Exactly At this point the fed is talking about raising rates 9 times the next 7 quarters But still eking out 3% GDP So either the fed has completely lost grips with reality or the fed is simply sending a signal to the market that high inflation will not be tolerated Thanks to Stifel chief economist Lindsay P eggs are coming up president Trump's endorsement power put to the test I talk about it with Bloomberg national politics reporter Mark they kept and our expert panel with Bloomberg.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Bank The Euro spike tire along with global bond deals as ECB president Christine Lagarde made comments perceived as hawkish prompting investors to bring forward bets on ECB rate hikes They now expect the amount of tightening this year to be around 40 basis points from 25 before the latest decision Hannah gooch Peters of San lamb investments tells Bloomberg markets are more sensitive now to any news of slowing growth especially in big tech I think that companies like Amazon for example and also Facebook that had announces of 10 billion of cash being invested into the metaverse the market is now taking very cautious on use like that when we're making these big investments And any sort of slowdown so Facebook had their slowdown in their user numbers in Q four The market is now penalising that Facebook is down nearly 26% so far today Let's check the other markets the S&P 500 is down 1.6% down 74 The Dow is down 8 tenths of a percent down 293 and the NASDAQ is down two and a half percent down 364 now the ten year is down 1630 seconds with a yield of 1.83% West Texas intermediate crude is up four tenths of a percent at 88 64 a barrel comics gold is down a quarter of a percentage 1805 60 per ounce The dollar yen one 1488 The Euro dollar 1438 and the British found the dollar 36 O 5 Let's take a quick look at silvert down 1.2% now at 22 38 per ounce That's a Bloomberg business flash on Greg Jarrett now more balance of power with David Weston Right here on Bloomberg radio This is bounce bar and Bloomberg television and radio I'm David Weston For Bloomberg first word news we go now to Mark crumpton David thank you President Biden says a major terrorist threat was eliminated during a U.S. raid in northwest Syria American officials say the leader of the militant group Islamic State was killed when he detonated a bomb as American forces closed in There were no American casualties Russia's president Vladimir Putin and China's Xi Jinping will meet in person tomorrow for the first time in more than two years The meeting in Beijing comes as the two presidents find themselves increasingly aligned against a common adversary President Putin is using the occasion to court president Xi to help offset the U.S.'s alliance network describing the two countries in an interview with Chinese state media displaying quote an important stabilizing role Europe is at a crossroads in the fight against COVID a top World Health Organization official said today there is a potential quote ceasefire in sight Regional director Hans kluge says Europe needs to drastically increase vaccinations particularly in lower and middle income countries while cases and hospitalizations from the driven wave are still rising in Europe deaths are beginning to plateau Officials in Texas say they're confident that states power grid can avoid a repeat of last year's catastrophic blackouts as a major storm sweeps through the region They are reassuring Texans There's more than enough capacity to keep power flowing even if demand for electricity and natural gas soared to record levels but they warn the icy blast could still cause local outages Global news 24 hours a day on air and on Bloomberg quick take Powered by more than 2700 journalists and analysts and over 120 countries I'm more a clump than this is Bloomberg Thank you so much.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"For David Weston The dominant theme this week of course centered around Jay pal and what the Federal Reserve will do to tamp down inflation We got some clarity on Wednesday about what the fed will do but investors of course they're obsessing now over how exactly it's going to get done Joining us right now is Stephanie Flanders senior executive editor for Bloomberg economic Stephanie A lot of people want to know not just win the fed will start to tighten policy but how aggressive it will be in doing so and how prolonged this rate tightening cycle could potentially be Yeah and I think that the fact that we're not really sure about the answer to that question and certainly that investors are not really sure about the answer to that question we saw play out in the volatility in the markets this week I think one way I think about it is you know we've had an era of gradual but limited rate rises being the only thing that was ever on the horizon You know that was the era of forward guidance and we know that now and I think markets particularly after this week's press conference No this is a slightly different fed a different regime What we don't know is whether we're losing both the gradual and the limited or we're just going to be going a little bit faster but still have a relatively modest tightening cycle I think that's what people are playing with You know have we got even if we saw quite a few rate rises I mean now the market is coming round to the idea we might have 5 rate rises in the U.S. this year There's this feeling that okay that means they won't have to do so much later on because we're still talking about a relatively modest bit of tightening But if that limited piece has already also gone that we're not the fed's not just going to be gradual and not gradual but also going to do a bit more tightening than the market was expecting previously Well that does potentially mean that all bets are off What do you make of pal's comments about the idea that the fed needs to be nimble on the surface that obviously makes sense but that seemed to also spook the markets to a certain degree Yeah I think it's because if you think about where we are being nimble can feels like it can only really go one way it can only be in a hawkish direction Because in the past we've come to the we've actually come round to the view that the fed would tie its hands with forward guidance And allow it's not put itself in a position where it's reacting to every bit of data as it comes along It's specifically promised the financial markets and everybody else you know we're going to hold rates low even when inflation is reaching a target We're going to hold it even longer than that because that's what our new strategy implies that we're going to err on the side of having too much inflation Trump is once you have too much inflation by the fed's own higher hurdle and you've reached that tipping point for you really need to tighten while that new framework doesn't say anything about the pace of tightening It doesn't say that that's going to be any slower than in the olden days And in fact it might mean that you have to move that much faster because you've left it too long What do you make of some of the criticism out there from folks like Bill Dudley.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Bloomberg This is Bloomberg Wall Street week with David Weston from Bloomberg radio Everybody's talking about it The shortage of microchips whether you make cars like Mary Barra of GM We saw significant impact with the semiconductor shortage last year I would say every quarter it gets a little bit better but we're not through it yet There still is work to do Or you make heating and air conditioning equipment like Dave gitlin of carrier We actually don't have the kind of buying power with the chip OEMs that maybe some of some other folks in other industries do but I can tell you that we have met directly with the CEO as a major chip manufacturers We've done unique arrangements with them that we've never done in the past And it's not just the buyers of chips filling the pressure the producers like Kurt sievers of NXP Semiconductors are feeling every bit as much pressure The entire semiconductor supply chain is under pretty heavy stress these days Even fed chair Jay Powell's job has gotten harder because of the chip shortage which he says is partly what's leading to the inflation we're seeing People want to buy cars carmakers can't make any more cars Because they're no semiconductors So that's never happened So what's the solution Congress is working on a chips act to get more investment in onshore production which congresswoman Haley Stevens of Michigan says is critical for the auto industry in her district Here in automotive land one of the things that you can not escape from or is the chip shortage We have got to pass the chips out But whatever the solution just about everyone agrees that it's going to take time whether you're in the market to buy We still think it's going to linger into the first half of this year and we should be farther out of it by the end of this year Or in the market to sell This is going to get better through next year but I don't think everything is going to be in balance from a supply demand perspective through the end of next year And we turn now to someone who really knows this chip industry well He is Paul Jacobs He's now the chairman and.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Wall Street week with David Weston from Bloomberg radio Economic defender of last resort since the great financial crisis of 2008 it's been the Federal Reserve we've depended on to bail out the economy when things got rough The ongoing labor market slack in the subdued inflation outlook are key reasons for the committee's decision to maintain the current high degree of monetary policy Monetary policy will likely remain highly accommodative for quite some time But now we face something we haven't seen for a while A fed bent on tightening rather than loosening with Cher J Powell testifying at his confirmation hearing this week that quantitative easing has to come to an end Will be normalizing policy meaning we're going to end our asset purchases in March that rate hikes are coming this year If we have to raise interest rates more over time we will And that the fed's balance sheet is just too big We're mindful of the balance sheet is $9 trillion It's far above where it needs to be In short that the economy no longer needs the sort of monetary policy support the fed has been providing for over a decade The economy no longer needs or wants the very highly accommodative policies that we've had in place to deal with the pandemic in the aftermath And so as Jay Powell is on the brink of being confirmed for a second term as chair of the Federal Reserve it's time to think about how different the next four years may be from what came before And the help was take a look.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Bloomberg This is Bloomberg Wall Street week with David Weston from Bloomberg radio Economic defender of last resort since the great financial crisis of 2008 it's been the Federal Reserve we've depended on to bail out the economy when things got rough The ongoing labor market slack in the subdued inflation outlook are key reasons for the committee's decision to maintain the current high degree of monetary policy Monetary policy will likely remain highly accommodative for quite some time But now we face something we haven't seen for a while A fed bent on tightening rather than loosening with chair J Powell testifying at his confirmation hearing this week that quantitative easing has to come to an end We'll be normalizing policy meaning we're going to end our asset purchases in March that rate hikes are coming this year If we have to raise interest rates more over time we will And that the fed's balance sheet is just too big We're mindful of the balance sheet is $9 trillion It's far above where it needs to be In short that the economy no longer needs the sort of monetary policy support The fed has been providing for over a decade The economy no longer needs or wants the very highly accommodative policies that we've had in place to deal with the pandemic in the aftermath And so as Jay Powell is on the brink of being confirmed for a second term as chair of the Federal Reserve it's time to think about how different the next four years may be from what came before And.
The Hugh Hewitt Show: Highly Concentrated
How Larry Summers Makes Sense of Confusing Economic Signals
"Larry summers, who Democrats hell, he says build back better is good. No, he doesn't cut 14 on with Bloomberg, David's Weston's. I think it would raise the I think the inflation rate would be slightly higher in 2022 and 2023 with the build back better than it would be without the build back better. I think over the longer term, there might be some effects the other way. But I think over the next couple of years the economists say cetera's paribus, other things equal, it would raise no, no, Larry, just you've got to focus and execute with the Democrats. Build back better will make it worse for every American. The Wall Street Journal leads story. How do you feel about inflation? The answer will help determine its longevity because then patient feeds upon itself. Well, if the Democrats pass Bill back better, they do not care about you. They care about their special
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"This is Bloomberg Wall Street week with David Weston from Bloomberg radio We've talked about the fed and monetary policy Let's turn now to fiscal policy The bottom administration now at the end of its first year must be thinking a little bit about whether there are any midcourse corrections you might make specifically on the question of inflation that Larry summers has talked so often about Larry summers our special contributor because remained with us So Larry what about what the administration could do Put aside the fed with the administration could do on the front of inflation So look I think we need to be honest and we need to recognize that the main action The overwhelming action is with monetary policy and it's with the overall posture of fiscal policy The overall posture of fiscal policy has been substantially sat Unfortunately but he sat by the mistakenly large fiscal stimulus that was enacted at the beginning of 2021 The administration's moving towards doing the right things The spro release was probably a constructive step but as we saw they released the spro and immediately after the release the price of oil actually went up That's because the release was a little smaller than many people expected It's because unlike after Libya the Europeans didn't join in the spro release It's because the whole thing had been widely telegraphed for the last few weeks So probably if this whole sprout thing had not happened oil would be a few dollars higher but we've kind of done it and we are where we are where we are I think the administration should do what it can to encourage oil supply in the United States but I think it's mostly developments in capital markets not public policies that are driving where we are on oil I was just going to say just to be clear sprout is the strategic petroleum reserve for some people who aren't as conversant with this as you are But you guys are low hanging fruit I was going to ask about other possible regulatory relief such as tariff rely for example So I think the administration does need to find its way to more rapid action on tariffs I think it's plausible that they could take up to half a percent maybe even 1% out of the inflation rate over the next 18 months with properly strategic tariff reform but that's going to require them to adopt a more forward looking attitude towards trade than they have already I think if they could emphasize by cheap rather than buy America that would be a constructive as well I think as they look at their various regulatory agendas they need to think about which ones are imposing costs on business and be careful These are all steps that I think are significant But they're not ultimately what is going to determine the outcome and why I've tried to speak to them I think it's very important not to divert attention from the central issue which is the management of demand and the recognition of overheating The truth is that we don't have slack in our labor market today And there isn't room for more demand to employ more people without unsustainable inflation And that's I wish it was otherwise the people who say that more demand does enormously good things for disadvantaged people are absolutely correct but you have to do things that are sustainable if you want them to be sustained And we're in the unsustainable place right now in terms of how hard we're pushing and pressing the economy Let me ask about one other regulatory initiative potential we've heard President Biden more than once say he wants the FTC to look into the oil companies whether they're gouging right now if I can put it that way because the price of oil going down has not been reflected the pump There are reports from Bloomberg and elsewhere that perhaps the administration is thinking about a broader ranging use of antitrust and perhaps other laws and regulations to really go after people that they think are passing along price increases Does that make sense Look we need stricter antitrust enforcement in America One of the things I'm encouraged by about the Biden administration is that they're going to bring us stricter enforcement of the antitrust law in America That is a very important thing Where there are abuses they should be corrected If anybody thinks that gouging is an important cause of our current inflation they are dead wrong And a policy approach to inflation that put some theory of gouging or exploitation or bad corporate behavior at the center of policy would be economic Ivermectin It would be a dangerous and false diagnosis and a prescription for a very real and serious problem I think the administration won't go that way I certainly hope it will not go that way And if it does it will be a very dangerous sign that they are overly responsive to the hard democratic left which I have to say I think has been the source of many of their difficulties Larry when we turn back next week to the build back better plan We'll have Congress back in session They're gonna be negotiating in some more You said you don't think unbalances that bad on the inflation front You think there are a lot of good things in there But what could be done to improve it from your point of view Let me be very clear If I had to vote up or down on it I would definitely vote up Let me be equally clear that I think over time it will make substantial contributions to making American society both richer and fairer and more sustainable in its environmental impacts That said I'd be more comfortable with the measure David If there wasn't quite as much fiscal stimulus in the first few years and I think there's an easy way to achieve that The state and local deduction the increases in the state and local deduction that were not in the administration's proposal but were inserted in the House of Representatives are I believe misguided They are retroactive and one thing we know is that retroactive tax increases don't have any positive incentive effects They give relief to people like you and me who are not the people who really need help in our economy I mean there is something wrong There is something deeply wrong with a democratic revenue raising measure That cuts the taxes of people like you and me who are almost certainly in the top tenth of 1% because we've been very lucky and fortunate of the income distribution And we could make that better by scaling way back the state and local deduction Proposal And in the process of doing that we would also reduce the inflationary pressure that would come from the bill Thank you so much Larry I was a treat to have you with us That's Larry summers of Harvard Finally one more thought Remembering to give thanks Going into this holiday season there's a lot on all of our minds There's a supply chain that seems like it will never get fixed with the rivian CEO saying it is really the biggest problem out there right now I would say the biggest challenge that we have and I would say broadly across many industries is really the health of the supply chain There are spiking energy prices complete with release of strategic petroleum reserves Here's Anastasia and moroso of I capital network It does set up a bit of a fight here I will say because clearly that's not something OPEC plus wanted to see happen And there's even the prospect of a Russian invasion of Ukraine So I think the challenge.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"This is Bloomberg Wall Street week with David Weston from Bloomberg radio I'm naming Jerome Powell for a second term as chair of the Federal Reserve And I'm nominating Leo brainard to take the position as vice chair of the Federal Reserve At this moment both of both enormous potential and enormous uncertainty for our economy we need stability and independence at the Federal Reserve Jay is proven the independence that I value in the federal chair in the fed chair One of those who expressed a support for President Biden's decision was Larry summers our very own special contributor here on Wall Street week former treasury secretary of course now with Harvard So Larry thanks so much for being back with us Give us what you took away from this announcement And what was said around the announcement perhaps even as important as the announcement itself I think the president made a good choice Jay Powell in the fullness of it all has done an excellent job at the fed Lael brainard is an experienced and capable monetary policy operator I think it's a good team It's a team that'll have some creative tension in areas like regulation in areas like the environment but I think it's a very good team at the helm of the fed and I was glad to see the president's choice I was equally glad to see what the president said in announcing them what chairman Powell said what nominated vice chair brainers said because they all recognized what has been true for some time that overheating and inflation are right now the central macroeconomic problems facing the American economy And there was no good outcome for the American population for the American middle class that is so dear to President Biden without taking steps to get inflation under control And I think that the rhetoric you saw from chairman Powell and vice chair brainer portends a new era here for the fed I think the question the fed is now managing is not do we have an overheating problem Can we bet with team transitory They know we do have an overheating problem and that they can't place their bet with team transitory They've got a new problem And it's a very complicated one And I very much hope they'll be very thoughtful about it because they're no easy answers The new problem is how do you land this economy softly That got corroborated by the numbers we saw the PCE deflator was very strong even more important The income and spending numbers were stronger than we expected the revision of the national accounts revised upwards how much income consumers had That means it revised upwards how much pent up savings ready to spend have So all the numbers are pointing towards a lot of strength all the numbers are pointing towards limited capacity You know we've been saying for a long time now that vacancies are record highs quits are record highs We got another number in that direction Unemployment insurance claims lowest since 1969 And of course we've got a lot more people than we did then so that makes it an even stronger Statement So we're looking at a challenge of slowing and overheating economy And we know we know from the research of a number of people that that's a very difficult thing for a Central Bank to do It's particularly difficult when frankly it's late to the party to recognize the overheating and when they have only an instrument monetary policy that works quite slowly through the economy with lags of 9 months to a year The fed very foolishly asserted that it wouldn't ever start raising monetary policy until we were at full employment which given the lags was much too strong a statement And they're going to have to figure out how to maneuver within their framework which when it was put forward didn't contemplate anything like this moment to provide the necessary gradual restraint If they overdo it on restraint the economy could easily tip over especially given how much euphoria there is built into markets So it's not going to be an easy set of maneuvers for the fed But they now I think recognize what they're dealing with in a way that is recently as a couple of months ago in Jackson hall They did not Okay we're going to ask you to stay with us if you would please because as important as that monetary policy is and the Federal Reserve there are also issues on the fiscal side and there's a question whether the Biden is going to need to make something a mid course correction on fiscal policy We're going to ask Larry summers our special contributor on the.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Did give the all clear to the university campus community did this morning. There is no active threat on campus. The shooting happened about two o'clock Saturday morning in the Freedom Square area on campus. All three adult victims are being treated at area hospitals for non life threatening wounds. There's no word of any arrests, and the shooting remains under investigation about 20,000 students are enrolled at Towson University shootings and homicides are dramatically up from last year across the U. S. Due to what experts, activists and parents are calling a toxic combination of post covid lockdowns, economic uncertainty and a flood of guns. Houston police Sergeant Joe Grimaldi says murderers up violent crime is up. We're seeing it in real time on the front lines through the beginning of September, more than 13,000 people have been shot dead in the U. S in 2021. That's a 13% jump compared to the same time in 2020. The new Marvel movie Shanxi and the Legend of the 10 Rings is already smashing box office records. The Asian superhero movie has broken the record for the biggest preview before the Labor Day weekend, making over $9 million Thursday night. It's also one of the biggest previews of the year. Coming in second, only the black widow Shanxi is expected to make about 85 million over the holiday weekend actress Kaley Cuoco and equestrian husband Carl cooker going their separate ways after three years of marriage. The couple released a joint statement Friday, saying that while they still have love and respect for each other, they are going in different directions. The statement goes on to say there are no feelings of animosity or anger and that they will not be commenting further on the matter. The actress met Cook back in 2016, and the two got married at a horse stable in San Diego in 2018. In music News on the state. Back in 1982, Steve Miller song Abracadabra Hit number one on the top 40 chart Survivors either Tiger hit number one on the British pop singles chart. I'm Chris Cara Geo and I'm Susanna Palmer In the Bloomberg newsroom President Joe Biden announced today he plans to travel to New York and New Jersey to survey the damage left behind by the remnants of hurricane item. Biden will make his way to Manville, New Jersey and the Queen's On Tuesday. The historic flooding claimed the lives of 13 people in New York City, many of whom lived in illegally converted basement apartments. Biden administration unveiled a $65.3 billion plan to prepare for future pandemic threats. The proposal, announced Friday focuses on protecting the US against potentially catastrophic biological threats. Including those that are naturally occurring, accidental or deliberately set in motion by so called bad actors. Enthusiasm for Labor Day gathering says waned and the delta variant is getting the blame. More from Bloomberg's Charlie Pellet. The survey by market researcher Numerator taken in June and again in August shows up 13% point declined to 51% in the share of American respondents expecting to celebrate with family and friends this holiday weekend. The South saw the biggest drop with 48% planning get togethers down from 66% in June. Charlie Public Bloomberg Radio. Iconic Motor is a Chinese electric vehicle firm is considering going public in the US through a merger with a blank check company. We get more about that from Bloomberg's Greg Jarret. Sources say the startup is working with an advisor on a potential deal that could value the combined company about $4 billion iconic could become publicly traded through the special purpose acquisition company as soon as the end of this year. Discussions they say, are at an early stage, and there's no guarantee that a deal with this back will be reached. Gwen Jared Bloomberg radio. Global news 24 hours a day on air and on Bloomberg. Quick take powered by more than 2700 journalists and analysts and more than 120 countries. I'm Susanna Palmer, This is Bloomberg. This is a balance of power with David Weston. All of us know that across the country roads, bridges need help. This world is not set up for the high vaccinated right people going to have to come back to work. Kids are going back to school where the world of politics meets the world of business. I do think that there will be some tax increase coming down the way there's still a lot of unknown in the U. S China relationship and they're gonna meet top priority. Business leaders. Balance of power with given Western on Bloomberg Radio have Joe Matthew for David Westin. This week. Coming up this hour, Corporate America prepares for a massive lobbying blitz to oppose President Biden's plan to raise taxes. We'll talk with one of those leading the charge Eric Newhouse, senior vice president of policy.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Studio in New York. Bloomberg 11, 3 to Washington, D. C. Bloomberg 99 12, Boston, Bloomberg 161. To San Francisco Bloomberg 1962. The country Sirius, XM, General 1, 19 and around the Globe, The Bloomberg business and Bloomberg radio dot com. This is a balance of power with David Weston coming up on balance of power. What to do about these computer hacks originating in Russia. We ask Adam aisles, head of cyber practice at the church off group. But first we get a market check from Charlie. Thank you very much. David West, unhappy Fed Wednesday 28 minutes to go until we get the latest minutes. 10 year note yields falling for a second day. Dropping below 1.3% for the first time since February amid concern the global inflation trade could be altering S and P and NASDAQ swinging between games and losses after setting records Energy shares the big losers in the benchmark S and P 500 index. West Texas Intermediate crude retreating again down 1.8% 72 Oh five a barrel the tenure Now it's 1.32% 10 year old 7 30 seconds has stack retreating from an earlier record down nine the drop of 1/10 of 1%. But the Out Stack 100 Index is up 1/10 of 1% s and P up eight right now Higher by 2/10 of 1% the Dow up 24 up 1/10 of 1%. And to be sure s and P is at a record again Fight 2/10 of 1%. We've got gold up 3/10 of 1% 18 to the Alps. Abby Joseph Cohen Cohen, senior investment strategist at Goldman Sachs, says investors Should assess their appetite for stocks carefully, very carefully. Given higher inflation and an S and P that is nearing fair trade value. We're sort of on a knife's edge evaluation becomes less appealing if interest rates rise. My colleague David Costin, who does this specific forecast has been saying for a while now, but he thinks that fair value for the S and P 500 this year is 4300, which is pretty much where we are one more point, and that is when you at fair value. There's no margin for error s and P right now. 43 52 Abby Joseph Cohen made the comment this morning in an interview with Bloomberg Radio and television. Airline shares hit some turbulence today is the emergence of the Delta coronavirus strain puts the nascent recovery and air travel at risk. Among some of the airline names UL Down. 1.7% American Airlines Group Down 2.9%. Delta dropping 1.5% Southwest, rounding out the Big Four down 1.4% recapping 10 Year Yield 1.32% S and P at a record of nine up 2/10 of 1%. I'm Charlie. That David Western is a Bloomberg business Flash. Thank you so much, Charlie. Overnight, we learned of yet another computer hack.
Bloomberg Radio New York
"david weston" Discussed on Bloomberg Radio New York
"Risk of heart inflammation for each vaccine reports suggest increased risk after the second dose. That's the latest I'm Cameron Fairchild, and I'm Susanna Palmer in the Bloomberg newsroom. Johnson and Johnson has agreed to pay $263 million to resolve opioid lawsuits filed in New York. Those cases were set for trial next week. Thousands of lawsuits have been filed by states cities and counties against opioid makers, including J and J drug distributors and pharmacy chains over their roles in fueling the U. S opioid epidemic. What's the future there? Jeff Philly is illegal reporter for Bloomberg News. Obviously, everybody would like to settle. It becomes quite a bit of a Rubik's cube trying to figure out How much is appropriate for each company to pay and whether you know individual counties or feel like they're getting enough out of settlements that they can greater dropped their claims. So it's It's like playing four level chests and it comes together. It's a good thing, but the process is not pretty. More than a half dozen opioid makers, as well as distributors and pharmacy providers still faced claims in New York. Tesla will make a software fix to more than 285,000 cars in China, where most of the vehicles it delivered there over the last few years, this to address the safety issue identified by China's regulator School board member in New Jersey, has received a no confidence vote from colleagues. Despite his apology for referring to Vice President Kamala Harris as a streetwalker more from Bloomberg Steenis Pellegrini School board officials in Linden have voted 42 with two abstentions against colleague Gregory Martucci. My central jersey dot com says At the same meeting, some members of the public called for Martucci to step down. Earlier this month. He made the disparaging comments in response to a recent Facebook post about Harris and Immigration by conservative comedian Terrence K. Williams. Martucci has since apologized, but he still got that no confidence vote. Denise Pellegrini. Bloomberg Radio. Global News 24 hours a day on air and on Bloomberg. Quick Take powered by more than 2700, journalists and analysts in more than 120 countries. I'm Susanna Palmer, This is Bloomberg. You're listening to balance and power with David Weston. On Bloomberg Radio. Still.
Bloomberg Businessweek
Johnson & Johnson begins shipping single-dose COVID-19 vaccine
"It is roll out time for America's third weapon against Cove in 19 after the CDC authorized Johnson and Johnson single dose vaccine for emergency use and adults 18 and older the company's shipping out nearly four million doses of the vaccine with a goal of 100 Million By June, Johnson and Johnson CEO Alex Gorsky spoke about it with Bloomberg's David Weston. We've got a safe got ineffective. Single shot vaccine that could be refrigerated using very standard procedures, and that's going to be available right here in the United States, the tune of 100 million doses by June of this year, he says, What normally would take 5 to 7 years has taken 5 to 7 months, and he believes these new types of vaccine technologies they're gonna have broad applications for things like cancer, Alzheimer's or other diseases.
Bloomberg Law
Changes in population of Arizona swings state more left
"This is a special edition of Balance of powers. Look at election 2020. I'm David Weston. Today We look at three critical swing states that could help decide who occupied the Oval Office next January. We start with Arizona once solidly Republican state that is now Maura, Va. Toss up. Arizona has 11 electoral votes and polls show a tight race. As for Vice President, Joe Biden hopes to become the first Democrat to win the Grand Canyon state since Bill Clinton did back in 1996. Or an overview. We spoke to Bloomberg contributor Rick Davis, who ran the 2008 presidential campaign of the late Arizona Senator John McCain. Four years ago in 2016. It was not a swing state, so it's one of those that have moved into the Swing column primarily because it changes both demographically in the state, but also ideologically demographically, I think you know, the increase in Hispanic population have moved it a little bit closer to the Democratic column. Hispanics make up almost a third of the Voting population now and on ideologically in 2016 trump one white suburban voters in Maricopa County, the largest county in the state. What really decides the outcome in states and in 2018, those same suburban voters fled the Republican Party, causing Martha McSally running for Election to the Senate to lose a Republican, so it's going to be an interesting ride there, but it's definitely a swing state this year. So if you say Maricopa County is I understand, you know better than I really determines the state. Largely. It's a really big count and a large portion of the voting populace. What has changed 16 4018 has the Democratic nature of Maricopa County's changes it more hetero genius than it was before is that they've changed their attitude towards things like immigration. Maricopa has been changing for a long time is one of those state or one of those counties. It's the city of Phoenix is in Maricopa County that has grown at an enormous rate. It's been one of the top five fastest growing counties in the United States for the last 15 years and is one of the top five of the largest counties in America. So it is a complex political beast. I would say What is starting to change is the Republican lock in the suburbs. In the past, we've been able to win the state by winning Maricopa. And if we are not able hold onto especially white women suburban voters in Maricopa County. We can't win the election for a perspective on what it takes to win statewide office in Arizona. We spoke to someone who's done it. Former Republican governor, Jan brewer. She admits the state is changing, but she hopes it hangs on to its conservative roots. There's a good chance that it is probably turning a little purple hair in Arizona, which is very distressful US Republicans, but the bottom line is is that we've had a lot of people moving in and out of California and other places coming to the great State of Arizona czar demographics. Have really changed. I think that we have to take that all into consideration were out there.
Bloomberg Daybreak: Asia
New York Times: Trump paid no income taxes in 10 out of 15 years beginning in 2000
"Paid no federal taxes in the past 10 or 15 years. Well, the president The New York Times has been doing its fake story after fake story. I've never seen anything like it, and Bloomberg's David Weston says It may not mean as much politically or for the election. I do think it maybe raises questions about his business acumen. I mean, he's raised his run as a billionaire and said that he's so a student businessman. According to the New York Times report, at least where they went over two decades of his tax returns, it appears that he's losing a lot of money.