19 Burst results for "John Micklethwaite"
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"Widen it ten year JGB trading range, as the bank is continuing to manage market adjustments through the nimble use of YCC and fund supplying operations. Corrode is words caused a slide in the yen and a surge in Japanese bonds, both of which have since eased. Meanwhile, German Chancellor Olaf Schultz says the country will avoid a recession this year. Schultz said increasing energy security means Europe's largest economy won't contract in 2023. I'm absolutely convinced that this will not happen that we are going into a recession. We showed that we are able to react to a very difficult situation. No one really expected that we would easily survive a situation when there would be a complete stop of the supply of Russian gas to Germany and Europe, but we succeeded. German Chancellor Olaf Schultz speaking exclusively there to Bloomberg's editor in chief John micklethwaite. Meanwhile, Federal Reserve bank of Richmond president Thomas barkin says recent U.S. inflation reports have been encouraging, but the rate of increases in prices is still too high to ease off monetary restraint more from Bloomberg's Charlie palette. Bark and told Fox business you just can't declare victory too soon. He says he wants to see inflation, convincingly back to our target before easing up on rates. Median projections show policymakers see rates rising to above 5% this year and officials are largely expected to raise rates by a quarter point when they next meet on January 31st of February 1st. Policymakers rapidly raised interest rates last year from near zero levels in March to a range of 4.25 to 4.5% in December. In an effort to tame the strongest inflation in a generation in New York, Charlie pellet Bloomberg daybreak Europe. And now to earnings shares in Goldman Sachs slumped yesterday after the Wall Street giant reported disappointing earnings in the fourth quarter, compensation costs rose by 16% to $3.8 billion for the final three months of 2022, while investment banking fees tumbled. Goldman CEO David Solomon says the results are an outlier. The police said our quarter was disappointing and our business mix proved particularly challenging. These results are not what we aspire to deliver to shareholders. While Solomon's decisions were punished by Wall Street investors, the story it wrought rival Morgan Stanley was very different. Although net income fell by almost 40% for the quarter, the bank got a big boost from CEO James Gorman's decision to focus on its wealth and asset management businesses. Expectations, but lower than the previous month and suggests that maybe just maybe inflation here in the UK which has been stubbornly high is starting to peak. There's been so much news flow this morning, Lizzie. It's really kind of hard to nail in what is the key driver. At a BOJ was really significant in terms of its determination to continue with this ultra loose monetary policy actually doubling down on that. And of course, that had a big impact across asset classes. But here in the UK, industrial action again, and this is your area of expertise, inflation and the read across for the BOE. Yeah, and Jeremy hunt, the Chancellor, to be fair to him, acknowledging that the reason we've got strikes is inflation, hence why it's the government's top priority to reduce it. It's a mixed signal, as you say, from the inflation data today. Yes, it's clearly on a downward path. It's falling for the second straight month, but it's still in double digits. It's still more than 5 times the Bank of England's target. So it's ammunition for the hawks on the military policy committee, economists yesterday already changed their forecast for the next BOE decision in up Bloomberg economics, for example, they switched from 25 basis points to 50 basis points, and this data just backs it up. Okay, talking of that data then, price rises dipping for a second month, as we mentioned in December, boosting hopes that the worst of the cost of living crisis in a generation that there may be starting to ease our Europeans may the cousin is here to break it all down for us and also to look ahead to the EU data out at 10 o'clock. Very interesting to hear from the Chancellor of Germany, Olaf schulz, saying that he thinks Germany will avoid a recession. Maybe good morning, thanks. Thanks for joining us. Let's start with the UK numbers then and of course it comes after we got that UK GDP data unexpectedly rising in November. What is the expectation? Have we got clarity now in terms of the peak of inflation here in the UK? Is that something we can pin our hats on? Yeah, we expect that inflation is going to be on a steadily downward path over the winter probably 9% in March. And we'll carry on declining even at the faster pace from March as inflation, the energy contributions continue to ease rapidly ending the year home 4%. So we are probably past the peak on headline inflation. I mean, given if inflation has passed the peak mavor and as Tom mentioned, you've got the economy unexpectedly growing in November. The dashboard is looking pretty good for the UK, isn't it? Yeah, it's probably a better outlook, but it's still a big headache for the backup environment. Because core inflation is still strong. It stayed constant at 6.3% for December. And at the same time, the decline in energy prices mean that there may be a bit more cost and we had more cost in the latest GDP report. So overall, we think the Bank of England will act by 50 basis points on the basis of this sticky core inflation and stronger cost. 50 basis points at the next meeting and another 25 basis point in March, but might still be able to stop hiking from March. Okay, so another 75 basis points is your expectation and possibly a pause in March. Is there an expectation at least within money markets that are cut will come through from the BOE at least at some point this year? Is that looking realistic?
Bloomberg Daybreak Asia
Fresh update on "john micklethwaite" discussed on Bloomberg Daybreak Asia
"This accounting achievement this is brilliant watch bloomberg radio all day is it exactly what the fed wants to see market news conversation and insight from bloomberg signature radio shows surveillance markets sound on and business week we've got a rally in stocks this is a market that's much more bullish watch us every business day live on youtube search bloomberg radio context changes everything bloomberg radio on demand and in your podcast team and the latest edition of the bloomberg surveillance podcast bloomberg editor in chief john micklethwaite reflects on the life and career of the late henry kissinger we have a good columns morning by andreas cluth who's um... yep uh... from from from uh... that one of my columns from germany he talks about heinz kissinger as he was born and the
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"Live from Berlin, where German Chancellor Olaf scholz sits down with Bloomberg editor in chief John micklethwaite, a wide ranging conversation only on Bloomberg, your global business authority. The number of billionaires went up during the recession. Up. They didn't go down they went up. Raising taxes on working families, making inflation work, worse. Let me be clear. If any of these bills happen to reach my desk, I will veto that. The president of the United States is whispering. And I always get to make. The president and policy on the other side of the arm. MH is going to join in in just a minute. John, someday, I'm going to be as old as president. Are you going to whisper? When he was going to hold my walker and I'm going to be here. Watch the end. Are you going to whisper with for emphasis? It makes you Mike is hot. We'll get you in a second. Negative two tenths on a S&P 500 take care a little bit later this hour. We'll catch up with finale in a few minutes time. Goldman Morgan Stanley, just around the corner. Just around a quarter 7, 17, let's get very quickly here to Anne Marie Horton in Washington. What is on the president's agenda today, miss warden Well, it's definitely not watching the yen. Sorry about that. The president today is going to be sitting down with the prime minister of Netherlands. Mark rutte, and this is, of course, they're going to talk about Ukraine. Netherlands has sent about $3 billion, potentially is going to be another billion on tap. It comes on the heels of his phone conversation the past 24 hours with president zelensky, but also when we spoke about the last hour, also on the agenda is the fact that the U.S. wants to make sure Netherlands is on board with curbing some of this advanced technology for semiconductors to China. This is a big deal in Netherlands because one of The Crown jewels of their economy is ASML. So this is an important meeting the president is going to have and it comes on the heels of his meeting with the Japanese prime minister who they are also trying to coalesce around this. Very quickly, emery is we wait for Goldman Sachs to come out. The horror that I observe this weekend in Ukraine was was it the worst ever I can't go there. I'm not an expert. How does the president adapt and adjust to what we saw this weekend with a missile that can take out an aircraft carrier? Yeah, and also, of course, that civilian infrastructure building, which the death toll we saw rise again this morning and it included a number of children, incredibly devastating images, absolutely horrific, to be Frank, coming out of Ukraine. I mean, the president, you know, the United States has recently sent a number of advanced equipment, including the patriot missile battery, that the news really over the last 72, 48 hours was at the UK is going to be sending these tanks and there's a lot of pressure now stepped up on Germany to send also leopard tanks. So I think this what those images are going to dictate and maybe push some that are still waiting on what they potentially may or may not send into the direction of potentially sending those weapons. Well, it's time for a conversation with chance the Schultz a little bit later today, sitting down with our editor in chief. John micklethwaite, AMH amber, over in Washington, D.C., and Marie, thank you. This is from cities Andrew Holland horse Tommy just moments ago. I don't know, I think Jane Fraser referring to some of his work in her interview a little bit earlier on this morning with David western time. Our base case remains 50 basis points for the February meeting, despite the modest probability being priced, we think policy race and the year comfortably above 5% in contrast to this market. We got data out to February 1. I'm going to say what I said before, people make fun of me about it. We're massively massively dated dependent of retail sales, the dynamics there of the control sale. And just at all, we're data dependent. That's all there is to it between 50 and 25 basis points. Right now, we're very data dependent. Waiting for some data out of Goldman Sachs and it drops right now. The fourth quarter EPS coming in at three 32. I get your comparison to the estimate in just a moment. Net revenue 10.59 billion, the estimate 10.7 billion provision for credit losses, $972 million, loans 179 billion, the estimate one 78.67 billion. We're looking for some of the trading numbers as always with government Saxony bass alongside me. Looking for the same thing. Occasionally. Listen, they just came in blowing through estimates when you look at that trading data. It's interesting. This year is the year to ask whether this is sustainable, whether you can keep on inking $3.5 billion a quarter in the fixed income unit. Remember, that is a much bigger number than we were seeing over at peers. You also see Goldman Sachs coming in above line when you look at the equities trading revenue. When we look at Morgan Stanley, we're going to be watching for another quarter of Goldman is coming in ahead of them on that regard. You're looking at net revenue, however, overall coming in a tad shy of estimates, John. So when the rubber hits the road for Goldman Sachs, are they going to be judged on the core businesses that they come on beating on very strongly here, or are they going to be judged here on some of these moon shots that they are looking to now reorganize quite a bit? Let's talk about a different part of the bank Tom just briefly, fourth quarter IB revenue comes in at 1.87 billion. The estimate 1.64 billion, unsurprising Tom, given the year we had a markets last year, bombed down equities down to see this slide significantly lower revenues in asset and wealth management. Well, you're going to partition out and that's what they do folks in a PowerPoint. I mean, I'm looking at 14 pages of data and detail here. Do people look at this as a normal analysis day or is it completely focused on mister Solomon's consumer experiment? There's a lot of questions about the consumer experiment and where they make money from above and beyond that. So the asset and wealth numbers increasingly important as we truck along here. Now, to the point that you're making, this is a tough business for everybody. But at the very, very end of the day, no matter if you're playing an asset or playing consumer, let's talk really quickly here about the ROE number. The number that we're looking at here of 10.2% is well above estimates, the expectation was 7%, but you are watching Goldman Sachs come down to earth quite a bit. Remember, last year they inked number there at 23%. So what is normal for the Solomon era, the medium term target is 13%. Can you compare and contrast the numbers we're seeing with the decisions that they're making in the C suite at the moment? Compare and contrast this report to some of these severe cuts were expected to the workforce. You know, it's funny. I was looking back 5 years this morning just to kind of reminisce about efficiency ratios over a couple and Zach's. And the reason that's important here is because Goldman Sachs is more efficient than Morgan Stanley. Their numbers are better on efficiency. However, because the ROE is not coming in as hot. You have questions about how you bring that overall profitability up at Goldman Sachs. The reason I bring this up is because those 5 years ago, you did not see that efficiency number posted at the top of the release and now you certainly do. So those cost cuts are very important over there. I want to bring up a band here. We're running the red banners. For those of you on radio, we're running the red banners here, Brad. This is so important. We got to put this banner up. And I heard this from Goldman Sachs bulls over the weekend. Right, and I give them great credit for doing this. Net revenues for 2022 platform solutions, I still don't know what that is. Platform solutions is 3.17% of net revenues. We're talking about Marcus and the rest of it, like it's 30% of the bank. It's a rounding error. Why are we so upset if it's 3.17% of revenues? That is the favorite question. Are you okay? I'm sorry. I said to me, it's miniscule. There was a presentation earlier last year that showed you that that $100 billion in deposits, they had brought in through that business, also changed their funding mix quite meaningfully. So to the point, it's a small business. It loses a lot of money. We had a banner below showing the provisions for loan losses at that business. That is part of the cost in addition to the
Bloomberg Daybreak Asia
Fresh update on "john micklethwaite" discussed on Bloomberg Daybreak Asia
"Culture for Bloomberg. My job is to uncover how entertainment is changing and explain what that means for you because context changes how you see things, how you change things. The text changes everything. Start exploring my coverage Bloomberg radio on demand and in your podcast and the latest edition of the Bloomberg surveillance podcast Bloomberg editor -in -chief John Micklethwaite reflects on the life and career of the late Henry Kissinger. Can we have a good column this morning by Andreas Kluth? who's one from of my columnists from Germany. He talks about Heinz Kissinger as he was born and the world in which he arrived you know Kissinger was born very obviously back in 1923 I think two years later Adolf Hitler came to his home time of Firth to denounce it as a kind of haven of sort of Jewish people basically but the first sort of 15 14 years of
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"So Davos underway in earnest Tom will go there live in a moment to Switzerland, but first let's check on the markets for you European stocks and U.S. stock futures are down this morning. U.S. stock 600 dropping two tenths of 1%. Signs of more hawkish central banks, the Bank of England, which we'll talk about in depth given the UK wages data that they had out this morning. Also the ECB's Philip lane, the need for more rate hikes, Asian stocks also this morning were down for a second day in the row, the hang saying, for example, dropped 8 tenths of 1% at the close, but it had seen even bigger declines. A Japanese ten year bond yields and we saw those breach again, the half percent ceiling from the BOJ today to markets really focused on the bank of Japan meeting tomorrow and also the last of the big bank earnings later, zago and sacks Morgan Stanley. Yeah, a big event when it comes to the BOJ on Wednesday. Other top stories, wages in the UK are rising at a near unprecedented pace, adding pressure on the Bank of England to raise rates further. Average earnings excluding bonuses rose by 6.4% in the three months to November this morning's jobs data from the ONS also showing that the UK lost nearly half a million working days to strikes in November. That is the highest number since 2011. Our UK correspondent Lizzie Burton will join us to break down the figures in just a moment. Meanwhile, the risk premium on UK assets has all but gone. That's according to the bag of England governor Andrew Bailey, but he told the treasury select committee the country is still recovering from the impact of Liz truss's mini budget. To be honest, I mean, I think it's going to take some time to convince everybody that we're sort of back to where we were before. I mean, 'cause I doubt the current governments are not in any sense to be negative. It's just obviously there is something of a hangover effect. The Bank of England governor also warned MPs that the ultra tight jobs market in the UK could derail any drop in the rate of inflation. China's economy group at the second slowest pace since the 1970s last year, GDP growth slowed to 3% in 2022 as the country doubled down on its now abandoned COVID zero policy. But the future does look brighter in the fourth quarter, the world's second largest economy expanded by 2.9% compared to a year earlier, beating economists 1.6% average estimate. Vanessa Chan head of Asian fixed income investment directing at fidelity says they're seeing a welcome shift from Beijing. I think to begin with, we do see the policy change in terms of stance compared to last year. So first of all, they've become a lot more pro growth and to some extent pro business. Fidelity's Vanessa Chan spoke as new figures also show China's population shrank in 2022 for the first time in 6 decades over 1.4 billion people lived in the country at the end of last year. Now executives and economists at the World Economic Forum in Davos are warning that a global recession is likely this year, nearly three quarters of business leaders surveyed by PWC thought that global growth would decline in 2023. That's the highest proportion since the poll began in 2011, speaking to Bloomberg just within the last hour at Davos, the UBS CEO Ralph hamers said that we all need to get used to higher prices. We are expecting that every month we will see a further decrease. I think that inflation at higher rates than what we're used to is here to stay. UBS is CO Rolf home as they're speaking to our anchor Manus cranny in Davos, and just before his trip to Davos, we will be hearing from Germany's Chancellor Olaf Schultz who is speaking in a one on one interview with Bloomberg's editor in chief John micklethwaite that's just later this morning after of course we had details at least reportedly that there is a new German defense minister who's been named Boris Pistorius. Yeah, that's set to be a fascinating conversation with the German Chancellor. Now, the next chapter in Elon Musk's life trauma is going to play out in San Francisco and a court, a federal court today, it's all to do with shock horror tweets and tweets about Tesla Bloomberg's Ed Baxter has the story. The issue is a number of tweets in 2018, saying that he had lined up the financing to pay for a $72 billion buyout of Tesla. He then followed up, making it sound as if the transaction would be imminent. It fueled a stock rally which abruptly ended a week later and culminated in a $40 million settlement with the SEC. The trial will make him explain his actions and intentions under oath. In San Francisco, I met Baxter Bloomberg daybreak Europe. Okay, there's a few of our top stories for you this morning, so when it comes to Davos, I mentioned we'll be going live to Switzerland shortly to hear from our interview with the OPEC secretary general Haiti, that will be after, of course, that interview with UBS with Ralph hamers, so we'll be hearing from OPEC hugely important at a time where we have a hot war on the continent of Europe will be hearing from the German Chancellor speaking to John micklethwaite today, but also just picking up again on some comments from Davos the Polish president andrej duda has been saying that there's a lot of pressure growing on shots of government, the UK's given over some of these important tanks and Germany's under pressure also to send to Ukraine leopard battle tanks also in this war. Yeah, and they're expected the reporting suggests that Chancellor olav shops will make that decision at some point in the next week or so and no doubt our editor in chief John Michael will be pressing him on exactly that question because as you say, allies now, including the UK and France and the U.S. sending tanks or tank equivalents to Ukraine and they are pushing of course for Germany to not only send leopard tanks but also sign off and allowing other countries that house these tanks to ship them over to Ukraine as well. Yeah, absolutely. A sort of concerted effort seems to be underway at the beginnings thereof. Look, the other notable speakers at Davos, the Ukrainian First Lady, also the Chinese vice premier. You've got Henry Kissinger. You've got Ursula Fonda line from Europe. So those are just the notable individuals who are speaking today from Davos, as I say, it's getting really underway in full swing now. Okay, so away from Davos will be going live to our opic interview in a moment, but it also let's dive into the UK wage data. Wages are actually been rising at a really unprecedented pace. This according to the latest jobs data this is hugely important for what happens with the Bank of England Bloomberg's a UK correspondent Lizzie Burton is here to look at the numbers again. So look, the shakeout from these figures, it was interesting we had had so much data actually out of this morning's O and S numbers. Yeah, I just want to pull out the top lines because this figure, these figures are absolutely crucial to the Bank of England's next decision in February. So what we've learned is that, as you say, wage growth was the highest on record outside the pandemic period in the three months to November, even though wages didn't keep pace with inflation and even though the inactivity rate and the number of vacancies fell and the unemployment rate held steady. So what it means is the labor market is too tight for comfort for the Bank of England. You can probably expect the tenth straight rate rise in February and economists are expecting another half point hike. The other little nugget of data, I just want to pick out is it was older working age women who dropped out of the labor force the most and given that you've got an aging population changes to state pension age. That's really worrying and you've had the just group the retirement specialist group saying it's concerning especially for women's retirement prospects. Okay, so there's that important dynamic and when it comes to the strike action, the industrial action across the country that's been rippling across multiple different sectors. How has that played in to the UK labor market? Well, we saw in the data this morning that the number of working days lost to strikes in November was the highest since 2011. There were total working days lost with 467,000. And more strikes are in the pipeline. We learned yesterday that teachers are planning to strike in England and Wales next month. Bad news, of course, for parents and their employers. So it just adds to the entry for Rishi sunak. He's got strikes in health, transport, the civil service, and there's more pressure on the government now to find a compromise on pay. Yeah, I mean, the cost of living squeeze is ongoing though, and even this data shows maybe people are coming back to the workforce to work or they're taking on more hours and they're getting paid more, but it's not keeping up pace with inflation. Andrew Bailey spoke yesterday, key things that he said. Well, the main headwinds for the UK economy according to the governor
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"I'm speaking Nancy Pelosi saying she will not lead the democratic caucus in the next Congress Ed Baxter has that during the rest of the global news. Yeah, I was pretty emotional speech. I actually assumed that role over 20 years ago. Now, today, I believed then as I believe today, this is the most beautiful building in the world because of what it represents, the capital is a temple of our democracy, of our constitution, of our highest ideals. She says it's time to pass to the next generation. She had her family with her in the chamber with the exception of her husband, Paul, who is recovering from the attack and their home, a symptom of the divisive nature of the nation. With these elections, the people stood in the breach and repelled the assault on democracy. They were soundly rejected violence and insurrection, and in doing so gave proof through the night that our flag was still there. Now Bloomberg's Emily Wilkins says it opens up. There's sort of been this next generation of leadership that's been waiting in the wings. It was one name you're going to start hearing a lot of is Hakeem Jeffries. He is currently poised to become the next leader of House Democrats, not speaker, of course, because Democrats won't control the house, but he will be the minority leader. As for the Republicans, will erase to put Joe Biden on the Department of Justice under a microscope. Jim Jordan will head the judiciary committee one of the most important things we can do is do the work that needs to be done so that we can hopefully have a Justice Department that doesn't operate in a political fashion. And another committee will look at what it says is how the Biden family swindled investors, and that will be the top of the Republicans agenda. U.S. Secretary of State Antony Blinken in Thailand today says that sticking with a conclusion from Poland that the missile that landed inside its borders did not come from Russia. We've seen nothing so far the contradicts president of preliminary assessment that this was likely the result of Ukrainian air defense missile that unfortunately landed in Poland. And Ukraine's president volodymyr zelensky is softening his position on the rocket's origination. He's maintained that it came from Russia, but at Bloomberg's new economy for him, he told Bloomberg editor in chief John micklethwaite that he will need to do more investigation. What we have seen. The diameter of the hole shows that it couldn't have been just the remnants. So he says the investigation will go on. China's top health officials are vowing to build more hospitals to treat COVID patients. This comes just as a one more sign that it's preparing to face a higher caseload as it slowly seems to be pivoting away from COVID zero. The hospitals will specialize. It says in treating moderate and severe COVID patients, specialists are also drafting plans to accelerate vaccination. In San Francisco, Ahmed Baxter, this is Bloomberg. I don't think Ed, let's get to our guest, Paul Christopher is with his Paula's head of global market strategy at the Wells Fargo investment institute he joins us from St. Louis. Thanks for being with us, Paul. If I told you today that we got more hawkish fed speak, you would probably say so what? I mean, what's new about that? We've been getting this litany of fed speakers who have basically been saying, look, we're not ready to dial back on tightening, and today Jim bullard looking at a terminal rate may be a 5 and a quarter percent, but that's really not new news. Is it at all? No, not really at all. 5 and a quarter is very close to where the market has been pricing over the last month. So if you had to say what the outlook for equities are in the face of this notion that a lot of this is already been discounted by the market, where do we go from here? Well, the problem for the market is that they believe the market believes that inflation is on the downtrend. We also believe that. But the fact of inflation having peaked is not a reason for the fed to turn and cut rates. And that's the fundamental disconnect that still exists between the fed and the market. That's why the market was up and down all day today while we think 4000 is not a sustainable rate right now for the market. There needs to be better agreement that the fed can taper their rate hikes, but they're going to still hike and then they're going to hold those hikes and the economy is going to go into recession and the market just doesn't believe that the fed will hold rates until the economy goes into recession. That's just a fundamental disconnect. If you look at earnings forecasts, for example, still around $240 a share for the S&P and the consensus. That's way too high. That has to come down. Paul, the thing is, what people are having really a problem getting their heads around arguably is just how much pain the Federal Reserve is willing to inflict on the economy. Exactly. And 5 and a quarter when we were at zero a year ago is quite a lot, especially when you haven't seen the full impact of those rates yet. We're already seeing housing close to our in recession. We're seeing the retail side very shaky, real incomes have been negative now for many months. This is an economy that's showing all the signs of being pre recessionary and the fed needs that recession to help it bring inflation back down to that 2% target. The market just is not in a position yet where it wants to believe that the fed won't blink won't pivot before we get to recession. But if you look at the way U.S. corporative been performing, there's an unevenness here. I mean, we heard from Nvidia yesterday positive news, the day before micron with a very cautious outlook. And that's just in the semiconductor space. Look at retail. The earlier this week, Walmart with very, very good numbers, and then yesterday it was target that disappointed, so there's just a lot of divergence here. They truly is. And again, in a pre recessionary environment, that's not at all unusual. What I would ask investors to remember is that in a bear market, the first thing you have happened is the multiple compression. We've seen that all year long and then the second shoe to drop is that earnings finally do come in much lower and validate that earlier multiple compression. So we've seen the first shoe. We haven't seen the second one yet. That's coming in 23. So Paul, when we continue the conversation, let's take a look at the bond market. And what may the yield curve may be signaling here. I mean, we remain inverted. We were up across the board in yield terms today. That helped the dollar. That's another pressure point, the relative strength that we have seen in the dollar against the majors, and maybe we can touch on what you're seeing offshore when we continue with pro Christopher of the Wells Fargo investment institute. Here on daybreak Asia we'll take a look at markets and global news
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"The normally hawkish Waller spoke in Phoenix yesterday. Well, Nathan, we have more on the collapse of crypto exchange FTX in a series of tweets former CEO Sam bankman freed amidst FTX got careless and said he would do his best to save customers cash new management at FTX as bankman free does not speak on the company's behalf. Let's get the latest on the war in Ukraine now Karen and the investigation continuing to unfold into that missile strike in Poland that killed two people. President Biden was asked about it this morning. What's your reaction to president zelensky saying that the missiles that landed in Poland were not Ukrainians? That's not the evidence. President Biden, along with Poland and NATO all say the missile likely came from Ukraine's air defenses, but they say Russia bears ultimate responsibility. And Nathan, as we've been reporting, you can even president Vladimir zelensky insists it was a Russian rocket that struck Poland. He was asked about it by Bloomberg editor in chief John micklethwaite at the Bloomberg new economy forum in Singapore. There were about hundred missiles that were launched on that day. And I'm grateful for the world to for the support of Ukraine with air defense and anti missile defense. But nevertheless, you can see what are the consequences and aftermath of the Russian war. This is not the first time that the whole missile or peace of missile of Russia falls down on the territory of another country. President Vladimir zelensky, speaking through an interpreter, says Ukraine will go to the blast site in Poland as part of the investigation. A future U.S. financial support for Ukraine may be in question, Karen. Now the Republicans have gained narrow majorities in the House of Representatives, GOP lawmakers are going to give closer scrutiny to Ukraine aid, Republicans in charge of the financial services committee could also slow down actions the Securities and Exchange Commission takes. And that could benefit banks and hedge funds according to some analysts. Now Nathan, let's take a look at some of the stocks on the move this morning following earnings. Shares of Cisco up 4% this morning. This is after the computer networking company gave a bullish forecast shares of Nvidia up almost two and a half percent. The semiconductor maker posted quarterly sales that topped estimates after its data center business helped offset sluggish demand for video game chips. We also get results from another chip maker today, Applied Materials, reports, earnings, after the closing bell. And futures this morning, they're lower S&P futures down four points, Dow futures down 49, NASDAQ futures their little change in the Dax in Germany is higher up three tenths of upper, ten year treasury down 1330 seconds. You have 3.73%. Straight ahead, we have your latest local headlines plus a check of sports. And this is Bloomberg. Thanks, Karen. It's 5 33 on Wall Street 38° in Central Park headed to the mid 40s today. Still got
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"100,000 electric bands built by rivian automotive, in which it has a major equity investment vehicle rollout starts today in Chicago, Dallas, Kansas City, Phoenix, San Diego, Seattle, and St. Louis. Rivian is up 2.6%. That's a Bloomberg business flash Bloomberg markets continues now with all the information on everything you'll ever need Matt Miller and Paul Sweeney. All right, we gotta cover great Jared. Thank you so much. We appreciate that. Let's get to Jodi Schneider back down in Washington, D.C.. She's our political news director for Bloomberg TV and radio. And again, Jody, The White House reporting that President Biden has tested positive for COVID-19, what are we continuing to learn? Yeah, we've learned a little bit more information. We've now seen a letter from the physician to the president. He's experiencing mild symptoms and mostly a runny nose and fatigue. Occasional dry cough started yesterday evening. They caught this by an antigen test. They say he's fully vaccinated twice boosted and the physician says he anticipates he will respond favorably as most maximally protected patients do. He has, they have given him a pax loaded. And which the physician says provides additional protection against severe disease. He is isolating in The White House but continuing to work and they say, given his very mild case, he will continue to perform his duties there. He was supposed to go to Pennsylvania today, and obviously that's not happening. We, and obviously it's incredibly important that the president stay healthy and we wish him the best. What about the rest of the staff, the rest of The White House, I mean, clearly he got it from somebody. So what do we know about that? Yeah, so he is isolating. They say in accordance with CDC recommendations. And The White House has had regular testing protocols for its staff and I presume they will people will be tested who were near him. We've had these outbreaks before. The former press secretary Jen Psaki tested positive a couple of different times and so there have been people in the cabinet have tested positive. I mean, obviously there's big COVID outbreaks around the country. So I presume they will be fairly vigilant in their testing protocol and he is isolating they're keeping him away from other people at this point. So Jody, I just refresh my memory here. Is this the first time that President Biden has had COVID? Yes, okay. That we know, certainly since he's been in office, we have not he has not had this before. And so this is the first time. And obviously, this is something people have talked about a lot. But if this were a year or a year and a half ago, I think two years ago, we'd be talking about a much different story, but he's had for doses, right? He said, the two shots, the two vaccines, and two boosters. And it's getting pax lovid. So the anticipation is that this will, that as the possession says, he will respond favorably. So it's a very different story than it would have been just a year, year and a half ago, even. Well, as long as he's doing okay and we assume he'll get over this in time for the call with Xi Jinping because that's probably the biggest deal on his radar right now. Is that the case, Jodi? Yeah, I would say so. He didn't have much travel planned, certainly not publicly scheduled. But that he announced yesterday. And that is an important call. I mean, this is the first time they will have been talking in months. And obviously, given the tensions between the two countries and given the importance of trade and whatever will happen with these trade sanctions, it's been the speculation in Washington that's been for weeks that President Biden would lift some of these sanctions against some of these tariffs against China, partly because of inflation and trying to help consumers, but they keep saying we're looking at that. They haven't said they'll do it, but we heard from the treasury secretary Janet Yellen that they were expected to do some of this. So certainly that's going to be on the agenda on that call and we haven't heard anything that says they're not going to have that call. And I would presume if the president, if this is a mile case, as they're anticipating that that will, that that will happen. We will have yesterday. We had Henry Kissinger weighing in on this, right? I mean, is the president going to try and as he gets closer to Saudi Arabia for, for example, is he going to try and for a little bit of detente with China? Well, that would be Henry Kissinger's comments to our editor in chief John micklethwaite in that very interesting interview, 99 year old Henry Kissinger. The older than President Biden, that's right. The oldest, the oldest cabinet member, living Kevin, remember, I think, ever, right? He, his comments were, you do need some kind of daytime. Yeah, you need to, they're competitors, and you have to play tough, but you do need to come to the table. And that is certainly the anticipation. I mean, for both sides, both sides are having economic issues inflation and supply chain. Issues are certainly not only the U.S. and Europe's problem. I mean, this is certainly something that's affecting the Chinese economy and one would think that it is in both their certainly both their interests to try to at least talk about these things. There has not been much talk. I mean, they haven't really had even many lower level discussions going on. They've had a little bit of this at some of these summits, but it's really not been so much on the radar. So this will be a very important phone call very telling phone call. Let's continue to hope that President Biden's symptoms remain mild and then he's able to get back to it shortly. What do you think this administration would like to do in terms of potentially resetting itself resetting expectations here for the next ahead of the midterms? Yeah, head of the midterm. What do you think the priorities are or will be? Yeah, this is a tough time for the administration. I mean, they had hoped they would be getting some kind of package through Congress, it was called build back better than they just called it reconciliation. But Joe Manchin made that clear, he will not vote for a big package, so that the best they can hope for now is something that really deals with things like prescription drug prices that they can tout, hey, we are doing something for American consumers. And also this chips act. They really do hope to get something through. Again, this has been a real struggle to do anything. There are also passing the houses passing bills like they did yesterday about codifying same sex marriage. They have a contraception Bill on. Things like that where they're saying, hey, we will vote to protect your rights even if the Senate won't go for it. I'm not sure. What about we, Jody? Are we going to see a federal bill? Well, that's moving down the track. Yep, so weed Bill is one of the things that Congress will be considering. They only have a couple of weeks before they go on their long August recess, then they're back for a short time in September and they have to pass some spending bills so the government doesn't get shut down. That would be bad in the midterm election year for everybody. And so they don't have a lot of time. So there is not a whole lot I hope think that the administration can hope Congress does for them. I think part of what they're helping with the midterms is that some of these candidates that Democrats are running against some of these Trump endorsed candidates don't do as well seem to extreme. But the Senate is really where the race is, the almost certainly looks like it will not be taken over by the Republicans in November. Jody, thanks so much for joining us. Appreciate getting your perspective here from Washington, D.C., Jodi Schneider. Political news director for Bloomberg TV and radio right now let's head down to Washington D.C. again
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"The overall market trade, signaling out some names Tesla, also on our radar. It's down about 1.8% in today's session. Definitely off its lows of the day. And we want to get to a story that is courtesy of our own Bloomberg's Ed ludlow and down a hall, a Bloomberg exclusive talking about the company's plans to cut about 200 autopilot workers as it shuts down its California site. Let's get more Bloomberg news, West Coast correspondent Ed ludlow. He is in our 9 60 studio in San Francisco. Check him out on YouTube as we speak. You can see him. Hi, Ed. Hey, so tell us about this story. You guys broke it. What do we need to know? And was it a surprise? Yes and no. It's a facility in San Mateo here in the Bay Area. And it was home to the autopilot data labeling team. And sources tell us that they were all called into yes a and told that their jobs were gone. This was part of a longer term planned move this team from one facility in San Mateo for one down the road in Palo Alto. Lots of those workers were expecting to be moved, but ultimately what happened was they were laid off. And I think you're actually at a port and that's a ship coming in. Yeah. Is that what's going on? Yeah. So Ed, I mean, when I saw this headline cross yesterday, usually you would see a headline like this and be like, oh man, the company is in trouble or in some sort of stress that we didn't know about. Is that true when Tesla's case? So Elon Musk told our editor to achieve John micklethwaite last week that Tesla would be laying off 10% of salaried workers. Tesla's workforce is split between two thirds hourly workers and one third salaried. This is important because according to sources, the vast majority of those laid off yesterday were hourly not salaried. So it is kind of at odds what happened because Elon Musk told us it would cut focus on salaried employees, hourly workers would be protected. Now, Elon Musk also clarified that a lot of the hourly jobs he was talking about growing would be on production lines that people we're talking about are data labelers. They're working on the autopilot functionality, but they're still hourly workers. So it was a surprise because we were led to believe that those types of employment contracts were protected. So is this a shift of a mega growth company? It feels like as it's ramped up and been spitting out its vehicles. I mean, is that a shift from this company maybe not being such a big growth player, but still producing a lot? You know, autopilot data labing is kind of a manual job in a thankless job. You basically take video footage that's generated from the cameras on Tesla customer cars, Tesla owner cars. And you annotate to help train the neural networks that improve the technology. People are doing that here in the Bay Area, but they're also doing it in Buffalo, New York and what sources tell us is that actually that team is growing and buffalo, New York. But sources also tell us that they are paid less in New York State than they are here in the Bay Area. So that's one factor to consider. But it's definitely one of these areas that Elon Musk has referred to where they grew too quickly to two greater size. Their big teams in the Bay Area as I said, this was part of a sort of change of plan to move people to different offices. They've been winding down the team anyway. But it's still interesting. Well, that's kind of what I was thinking because it caught my eye in your story that you say that the company now based in Austin, Texas. It's grown to about a 100,000 employees globally. I had no idea that Tesla employed that many people. And if you think about what we've heard from Amazon and I think Walmart too coming out and saying that they overstaffed. I mean, could that potentially be true in Tesla's case? You know, I think what we learned with inflation is inflation took us by surprise. It surprised to the upside a lot, the macro picture and the supply chain breakdown continues to surprise us and inventories of retailers is a good example of that. What I would say is that people have short memories when it comes to Tesla and you have to remember that there have been rounds of job cuts before. The stock performed astronomically in the 2018 2019 in the early days of the pandemic. But in 2018, they did go through a round of layoffs when things were tough. So we've seen Elon Musk be prepared to do this in the past and he'd warned us. Hey, you know, one thing I wanted to ask you, Katie and I were just kicking around some stories in the solar world and the alternative energy world. There's a story by Tara Patel about Stellantis. It's one of Europe's biggest automakers. And they are warning of a car market collapse. If EVs don't get cheaper, I have to say, that makes sense to me that unless we bring down the price and I don't know how we do it, whether it's just being able to mass produce more. I mean, how do you see it and how does kind of Tessa play into this? Who has been also trying to, I feel like be more aggressive about getting a car for the mass market. Yeah, you guys remember Elon Musk had this original goal of a $25,000 EV where he wanted to make one for the masses. Well, that's gone out the window, frankly. He's abandoned that idea. And not every, if we take the United States as an example, the median household can not afford a 40 50 60, $70,000 vehicle, especially a small one like a Tesla Model three or a model Y they look for value and you look across the market and the trend that we're seeing, all of these EV players, the rivian's, the lucid, on top of Tesla, and the legacy auto like GMM Ford, it's very expensive, high end models they're offering. We don't yet have a true mass market model that is affordable for that media to lower income family household. And that's the inflection point. You look at China where you'd be adoptions further ahead, they have a greater variety
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"To a holiday short week. Good morning creedy. What's got your eye? You decided a very good day to come back, Nathan. The Dream Team is back here. I want to start off with Leonard. You did have a or I've been told to pronounce lenar. I've heard it both ways, but let's go with our. Okay. And is your ticker up 1.2%, of course, is the home builders company. This is really important here because as we talk about the cracks in the economy, Leonard or lenar, I'm gonna make no mistake all day long. I can already tell that you come out with earnings, they beat the earnings or purchase contracts, rose 4% from a year earlier but get this Nathan. This really speaks to the strength of the green back here. The dollar value of its seals increased 20%. So purchase contracts up 4%, the dollar value increased 20%. Once again, it speaks to the strength of the dollar. And I think this quote is really interesting here from their CEO. They said the weight of a rapid doubling of interest rates over 6 months together with accelerated price appreciation began to drive buyers in many markets to pause and reconsider we began to see these effects after the quarter end. So basically he's going on he's warning. Well, some of these interest rate hikes that we've seen in the 50 basis points in June in May sees me in 75 basis points that we saw last week as well. Those are going to have effects, perhaps delayed effects, but affects nonetheless on the housing market. Yeah, really interesting macro perspective there. I wonder if you're looking at some of the stocks related to Elon Musk after his interview overnight with our John micklethwaite. Yeah, I mean, how can you start a week without talking about Elon Musk? You have to. So let's start with Tesla and Twitter. I'll give you the share action first. TSL a up about 3.4% in the pre market Twitter as well up about 2.7% in the pre market. This comes after, of course, Elon must beats with our very own John Michael thwaite or editor in chief over at the cutter economic forum saying that the CEO label at the social media firm was less important than driving the product, something he has said before and that Tesla will cut its salaried workforce by about 10% over the next three months. So the takeaway here for both markets because remember Twitter and Tesla they tend to have that inverse relationship when one goes up the other goes down. The idea here is that he is still actively talking about this deal. So anytime he suggests any sort of interest or plans or anything like that, it does boost Twitter shares and that's kind of the at least the mindset in the pre market that Twitter shares or Twitter investors are really pushing the stock higher. The Tesla part is interesting because they're talking about cutting costs and remember they've already hiked their prices as well for the third time last week this year. So really they're dealing with the macroeconomic issues and investors seeing, well, look, they're working even harder to get those costs under control. Yeah, and he keeps saying he sees a recession coming pretty soon. Thanks for this creedy, as always, Bloomberg radio and TV markets correspondent creedy Gupta. Right now, S&P futures are higher, a 66 point staff futures of 490 NASDAQ futures higher by 207 points, the ten year treasury down 1330 seconds
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"Only. From Bloomberg television. Here's Tom McKenzie. Let's bring in searsport, politics, professor and Annabel lever from the San Alice. What is your take on the results of these parliamentary elections? And what it means then for the president. Well, I guess the big news really is the 89 for le pen and the far right. That wasn't anticipated by anyone and it really does make a huge difference. Now in fourth place. When you think about it, I think the most dramatic thing is that everyone else is a coalition party. Macron's party ensemble lets a coalition, noobs or a coalition, the one party other than the Republican who are very small. There isn't a coalition is le pen, and so I imagine that her power is in a way going to be disproportionate to the number of seats she has because her group are going to be united. I just want to get your take on whether or not you think at this point it's likely that Emmanuel Macron could hold on to the executive branch and how he would do that. I don't know. I mean, I don't think he's going to want to call another election anytime soon. I imagine he's going to try and make the best of it. See if the room for compromise with the other parties. I mean, that's certainly what he said this morning. And there certainly is room for compromise. I mean, after all, everyone knows the environment a critical issue. Threat of a recession is a critical issue international politics of critical. So there's plenty of room on which everyone could agree if they wanted to. The question really is whether or not they're going to be able to do that. Here more conversations like this one on Bloomberg television, streaming live on Bloomberg dot com and on the Bloomberg mobile app. Or check your local cable listings. Headlines and breaking news 24 hours a day. The Bloomberg business and good for quick take. This is a Bloomberg business flash. From Bloomberg's European headquarters here in London and Caroline Hepburn with this Bloomberg radio business flash, so we have stocks in Europe now gaining this morning chemicals basic resources leaning the gains on the U.S. stock 600 currently up by 8 tenths of 1%. This as U.S. stock futures also more positive S&P 500 even if features gaining 1.5% NASDAQ futures up by 1.6%. So we've had so many lines from the Twitter and sorry, the Tesla CEO Elon Musk, of course, talking about his Twitter deal not entirely certain that it's definitely going to go ahead, but he did tell our own John micklethwaite that he wants to see half the world using Twitter. In terms of other things so that we're watching for in markets this morning. Peter McDonald spot index right now is actually softer a quarter of 1% the Euro trades at one spot zero 5 four 8 stronger by three tenths of 1% the Japanese yen again down a tenth of 1% close to 24 year lows in terms of bond markets this morning ten year U.S. yields at three 28 are up by 5 basis points on the two year we traded three 22 as for German bund yields 1.73% so down by one and a half basis points Italian BTP is also easing back four tenths of 1%. We do have to remember of course that there is a continued outbreak of COVID in China. Macau, in particular, is a spot where there have been some extra cases, so we're watching to see if casinos perhaps shut on their outbreak as for other markets to keep an eye on Bitcoin $20,993 now up by 2.8% Elon Musk. Again, repeating his support for Dogecoin, that if they've been big radio business flash, now his lumps even cower with our
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"And it's 8 30 a.m. here in London a very good morning I'm Caroline Hepburn So we have President Biden here in Europe meeting NATO G 7 EU leaders also Rishi sunak defending his spring statement amidst the highest tax burdens is 1949 in Britain whilst the president zelensky the Ukrainian leader goes now to more than ten parliaments Parliament to parliament making the case for more assistance when it comes to the ongoing war in Ukraine All of these topics we will cover for you here on Bloomberg daybreak Europe as well as the markets which we look at every 15 minutes for you in terms of the data right now up by two tens of 1% for European stocks So some small gains consumer goods utilities seeing gains media and finance declines The FTSE 100 is up the zetta Dax by three tenths of 1% U.S. futures also in the green Yeah powering forwards NASDAQ futures up 7 tenths of 1% even though we saw Asian stocks declined bond markets this morning four basis points higher for the U.S. ten year yield two 34 as the French and manufacturing PMI came in just below forecasts this morning So that sort of first read across from the Ukrainian war on to France and oil prices right now Brent crude at a $122 about up by half of 1% this morning Putin say that I'm friendly countries have to pay their energy bills in rubles how realistic is that That's a look at the markets Let's swiftly cross over though to the U.S. because in 30 minutes time on London DAV digital radio you're hip surveillance The early edition with Matt Miller Kelly lions and he joins us now at live from New York Matt Miller good morning What's ahead for you on the program given that the U.S. president is here in Europe but we also have big changes big gyrations in bond markets Yeah well you know what We have a couple of fantastic guests on To talk about both of those things First off John micklethwaite joins us Bloomberg news editor in chief on a big take piece that he has written about the sort of changing of the guard if you will a new world paradigm brought on by not only Russia's invasion of Ukraine but also its partnership with China the kind of trumpian isolation that America finds itself in and that the Germans have led in Europe in terms of rearmament I guess So there's a lot to talk about with John I'm really excited to have him on right at the top of the show And then in terms of the bond market we have one of the best voices One could get Andrew balls joins us The CIO Chief investment officer at pimco for global fixed income We'll ask him what he thinks about the incredible volatility that we've seen here The possibility of a recession with central banks hiking so much in order to fend off inflation that's expected to go into double digits So a fantastic lineup and that's even before we get into later guests Lindsey Newman joins us S&P Global market intelligence director of global political research Stuff there Mark could have found he joins us Anglo American CEO out of Johannesburg So that'll be an incredible conversation with man this cranny as well as just a lot going on today on Bloomberg TV and it's definitely a morning that you don't want to miss Yeah absolutely That big take piece is incredible We don't want to be the foppish aristocrat or a leads You know pre the First World War you know when What is foppish Is that a British term foppish Is that about the hair It goes back and forth It's kind of dates back to the 18th century yes Oh I thought it was the 80s I thought it was a Hugh Grant kind of reference No it was resurrected No it's much older than that It kind of goes back to young men and how they were dressed a couple of centuries ago Members of bullingdon no doubt Great that that was written by John micklethwait Yes Oh no commenter I don't know I don't really know exactly how to use that term Well I think Yeah no I suspect not A John McAfee yeah Adrian waldrich who wrote that piece in Adrian was with me just a few minutes ago So we also got his take on the big take Look you've got loads packed of on the program So we look forward to listening to that Matt thank you so much for being with me Matt Miller their live former New York and blew surveillance early edition up next here on London DOB digital radio And for our U.S. business you can also catch Matt and Paul Sweeney because their house Bloomberg markets at 10 a.m. Eastern Time So really busy day On which note let's get over to Bluebird's law right Because she has today's top stories Good morning Good morning Caroline In Germany the ruling coalition has reached a deal on an energy relief package According to the DPA news agency the SPD greens and FDP have agreed on measures to relieve the burden on citizens and to strengthen energy policy independence This agreement comes as president Joe Biden has touched down in Brussels ahead of key summits of NATO and G 7 leaders later The alliance will consider a packet of new sanctions in one's placed on Russia Bloomberg's Ed Baxter has the story Along with a show of solidarity the U.S. wants some even stiffer penalties placed on Russia and national security adviser Jake Sullivan says enforcement is very important to agree on an initiative to coordinate on sanctions enforcement so that Russian efforts to evade the sanctions or other countries effort to help Russia evade the sanctions can be dealt.
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"With Paul Sweeney and Matt Miller There's some sectors that you want to have more or less exposure to it We've got to vaccinate the whole world of malice of the day's Wall Street actions Bloomberg opinion and influential newsmakers The bond market was the boss Bloomberg markets with Paul Sweeney and Matt Miller Subscribe to Dan Bloomberg radio dot com The Bloomberg business app or iTunes Bloomberg news says it will continue to do all it can to help our colleague Hayes fan and her family one year after she was detained in China Bloomberg's editor in chief John micklethwaite says 12 months of detention is a long time for anyone to endure and that the company remains very worried about her well-being Chinese authorities have said fun was detained on suspicion of national security law violations and that her legitimate rights and interests are fully guaranteed Meantime the tech news publication the information is reporting that apple's CEO Tim Cook sign an agreement with Chinese officials promising that Apple would play a role in developing the country's economy and technology through investments business deals and worker training The 5 year yield 5 year deal said to be signed in 2016 was worth over $275 billion For more now I'm joined by our Bloomberg news reporter marker and who of course covers Apple for a mark How significant is this I mean this is pretty significant This is one of those multiyear multi-billion dollar deals that Apple did not disclose typically when you see a deal of this magnitude Apple likes to disclose it have a whole PR push around it They certainly did that for several $100 million and $1 billion deals in the United States This is China They knew of course there would be scrutiny if this was publicized But at the same time it sounds a lot similar to what they do in the U.S. and other countries in terms of local investment deals Meantime the nikkei reporting along the lines of what you have already reported that Apple has scaled back production plans of the iPhone and also reaccelerated some of those production plans over the next few months What are you taking away from this new information Yeah I think something interesting is going on here I think it's two things One those rebate deals that first launched alongside the iPhone 13 and the other new devices in September were very aggressive You were able to upgrade from an iPhone 12 to an iPhone 13 at no charge Those rebate deals have started to fade away They still exist but they come in at lesser amounts lesser savings So obviously that is going to bring in fewer customers than it did at the top Of course the 13 is also not that big of an upgrade compared to the 11 to the 12 So that's a reason And we've probably seen a lot of the early adopters pick up those iPhone purchases They'll probably see some sail increases later in December and into the new year which is Nick Hayes implying what the Nikki does seem to agree with us that there was a deceleration in production and a lower than expected unit count throughout the course of 2021 for the iPhone 13 Part of that demand and part of that supply And then multiple Apple stores going on today So I also want to get your thoughts on this other one that the DoJ is focused on apple's treatment of Roblox We know that epic had claimed Apple gave Roblox special treatment and roadblocks subsequently changed the name of its offerings from games to experiences What's your take on this Yeah this is basically an app that offers a multitude of different types of games and different multiplayer environments And this company has positioned those as quote experiences like you said instead of games which helps them circumvent some of the rules Apple has on games more interesting I think is that we are here waiting for an announcement from the 9th circuit in California about whether or not Apple will be granted a stay on these App Store changes that the judge ruled they must put into place by December 9th That's a few days from now and we still don't have a final answer if Apple is going to have to go through those changes or not So we're paying attention to that and of course we will let you know as soon as we have an answer whether Apple has to put those changes in or they get a long term or a short term stay on those Interesting of course tied to that much broader antitrust investigation Bloomberg's Mark gurman Thank you as always for giving us those updates Now in Amazon Web Services outage is wreaking havoc on the ecommerce giants delivery operations preventing drivers from getting routes or packages and shutting down communication between Amazon and the thousands of drivers that relies on Bloomberg Spencer soap where joins us now with more so spenser does this mean I'm not going to get my Christmas presents on time Yeah I don't know They should have time to recover you know since we still got a little while but this definitely has a big impact on Amazon So basically a lot of drivers that were already dispatched by the time this happened It happened you know in the morning late morning east coast time So depending on the time zone you're in some drivers are already out on the routes They were able to continue they were told to put their phones into airplane mode and not log off by any means because they wouldn't be able to log back in But a lot of drivers had not been sent out yet and they were basically just sitting around waiting for direction and not sure what to do Similar with Amazon's flex app That's the thing that's like Uber where people make Amazon deliveries in their own vehicles A lot of them they simply couldn't log in couldn't get assignments So there's going to be a bit of a package backing up here and we'll see if they get this resolved today then hopefully they can dig out from under it tomorrow but if it lasts this could be a big problem What time is on saying about this Not a whole lot They've been posting things on their website on this like AWS.
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"Labor shortages could sustain food prices at high levels into 2022 So I think the view here at the new economy forum is we might be at the peak for inflation around now but certainly don't expect it to come quickly back down to a comfortable level in the months ahead Okay Bloomberg's chief economist on the ground for us in Singapore at the New York economy before and tomato Thank you very much indeed Okay let's get the latest now in global news headlines and about standing by tomorrow Caroline good morning and thank you Let's start here in the UK where MPs are going to toughen up rules on second jobs outside of Westminster The government's plan to crack down on certain roles like advisers and consultants was passed through the commons last night but labor's anneliese Dodds says a proposals to change the system are a watered down version of what her party were really calling for We wanted to see action very quickly around that instead effectively the government's motion is not binding It's really to suggest they'll just be more talks around that Boris Johnson has also admitted a mistake was made in how they managed to vote on whether to suspend former colleague Owen Paterson who did break those rules Now Bill Gates says COVID deaths may drop below seasonal flu levels by the middle of next year assuming new variants don't emerge in the meantime Speaking at the Bloomberg new economy forum in Singapore the Microsoft founders says that should allow economic activity to fully resume Tensions over Taiwan risk leading to a miscalculation between the U.S. and China is both nations set up activity around the island That is a warning from Singapore's prime minister Lee seeing long We should be concerned I don't think it's going to war overnight but this is a situation where you can have a mishap or a miscalculation and be in a very delicate situation He was speaking to our editor in chief John micklethwaite at the Bloomberg new economic forum over in Singapore and many European governments are adding new restrictions on the unvaccinated as a battle any wave of infections Germany reported 50,000 cases in just a day and is now proposing to limit workplace access to people who are vaccinated recovered or provide a negative test Belgium has reinstated work from home four days a week despite opposition from a sum business groups Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts symbol then 120 countries I'm Leanne guerin's this is Bloomberg Tom Leanne okay to some of the most important most intriguing corporate stories of the day simmering tensions have led Amazon to consider ditching Visa and shifting its co branded credit card to Mastercard It follows news the company is stopping Visa credit card payments here in the UK from next year Amazon blame transaction fees but bees at Visa says they believe they can rescue the relationship joining us to discuss is Bloomberg's Tom Metcalf Tom is this then a crude negotiating tactic by Amazon or are there more fundamental concerns at play I think it's probably a bit of both I mean Amazon has definitely thrown their weight around And I mean that's probably the most interesting part of the story that a company like Amazon is going public with this and taking a pretty extreme step And in some ways if you're cynical about it maybe they are just hoping to get sort of lower fees some kind of rebate from Visa But equally this has been a years long battle between retailers merchants and payment networks like Mastercard like Visa So there's definitely real concerns there and there has been kind of this ground swell from retailers in attempts to kind of push back on these transaction fees which have been rising I mean there's still a small amount of a transaction something like .1 .2% but those pennies really add up and it's something like a hundred 110 billion dollars a year in fees that retailers pay in the U.S. the companies like Visa So big issue for everyone Yeah also I think it's quite interesting that the UK ends up being the kind of testing ground for Silicon Valley perhaps or for the big U.S. tech firms the UK often seems to be the market where they try things out Interesting Look there's also another UK story that's quite fascinating The challenge about metro bag and Carlisle their share price popped when Carlisle said that they were in talks to buy this bank high street bank here in the UK and now they've fallen because this conversations are over So just how significant is this Yeah it's a bit of a roller coaster though I think you say when we reported hey metro banker and talks of color the shares absolutely stored 40% and now they are down this is their 5th So it's kind of interesting I think the key to this story is at least highlights just how difficult it is to do M and a in the UK finance financing general anywhere Obviously metro about one of the challenge bank smaller this everyone says is a great strategic case for consolidation among banks like metro bank TSB We've seen recent weeks as when these talk start they tend to sort of bound just because there's so many challenges of getting this over the line in terms of regulation in terms of valuation So it kind of speaks to just how difficult it is to actually strike a deal in China Tom any sense as to whether or not there are other suitors for metro bank Well this is the most interesting thing I mean they only said November the fork for two weeks ago that they entered talks and that was what we were chasing is like well we assume other kind of suitors will come out of the shadows So the big question right now is why is talks with Carlyle and metro bank all in a part Have Carlisle found something they decided they didn't want to move forward with metro bank or has other things like other suitors come forward perhaps But it's a little bit of a mystery but obviously very bad news for metro back shareholders today Yeah okay So that will metro bank The other kind of fascinating story that sort of in your space Tom this morning.
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"Basically accurate And a good morning and thank you Let's start here in the UK where MPs are going to toughen up rules on second jobs outside of Westminster The government's plan to crack down on certain roles like advisers and consultants was passed through the commons last night but labor's anneliese Dodds says a proposal to change the system are a watered down version of what her party were calling for We wanted to see action very quickly around that Instead effectively the government's motion is not binding It's really to suggest they'll just be more tox around that Boris Johnson has also admitted a mistake was made and how they managed to vote on whether to suspend former colleague Owen Paterson who did break the rules Elsewhere Johnson said he would certainly consider delivering cash to Iran by plain to settle an old UK debt if it meant Tehran would free detained naziri ratcliffe but the prime minister's warning there are complexities in the case linked to other dual nationals being held in the country Iran says there's no link between the 400 million pound debt for undelivered weapons and the fate of naz 9 and other UK Iranian dual nationals detained in the country Tensions over Taiwan risk leading to a miscalculation between the U.S. and China as both nations step up activity around the island That is the warning from Singapore's prime minister Lee sing long We should be concerned I don't think it's going to war overnight but this is a situation where you can have a mishap or a miscalculation and be in a very delicate situation He was speaking to our editor in chief of John micklethwaite at the Bloomberg new economic forum over in Singapore and many European governments are adding new restrictions on the unvaccinated as they battle a new wave of infections Germany reported 50,000 cases in a day and is now proposing to limit workplace access to people who are vaccinated recovered or provide a negative test Belgium has reinstated work from home four days a week despite opposition from some business groups Global news 24 hours a day on air and on Bloomberg quick take powered by more than 2700 journalists Santa analysts and more than 120 countries and the angers This is Bloomberg Anna Leanne thank you very much Now for the latest sports.
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"Mix of the antibodies in the antivirals in stock and train your medical system So that's available to your death rate is down In the face of delta maintaining that wall is very hard and many countries will now decide that between their vaccination rate and the antivirals the benefit of allowing people to flow in and out of the country particularly against what it's like to maintain against delta that it's time to open up But the death rate even of those countries will be say a 50th of what it's been in lots of Europe The UK is kind of at the end of the spectrum where this fall they kind of said hey let's act like it's blue And they're paying somewhat of a price in deaths But you know they are allowing people to do a lot of things Even cop 26 of the receptions they make you wear your mask on the street or your risk was very low but once people are in receptions they were in their mouths That was that is hard to explain even even to British people And this government has explained a lot of things to us If you look at password look a little bit which I know you've also looked at this issue of the longer term preparedness if we have we can argue whether China is doing the right thing or the wrong thing at the moment But assume that what you say is right and we push it back to flu like levels What as a kind of world do we need to do to prevent other epidemics coming along Where do you see the main focus there Well we need a few pieces We need at the WHO level several thousand people who are experts in this and are totally dedicated to stopping infectious diseases and ready to go And they'll do like germ gains like war games were countries practice And what those countries would try and be ready for is bringing up the diagnostic capacity ten times faster than say Australia which was one of the best and then being able to implement the non pharmaceutical interventions very quickly Then we need better tools If we'd have the vaccine even faster if we'd had these oral antivirals not now but a year ago and if we had a vaccine that was so powerful that it prevented breakthrough cases which is now those are a big part of these transmission chains the science to do that we should be able to conquer So you know literally for a few tens of billions will build a set of tools within 8 to ten years and a surveillance capacity at the global level which will mean that for a pathogen like this we pay 1% of the price that we did this time That is Bill Gates the co chair of the Bill and Melinda Gates Foundation speaking with Bloomberg's John micklethwaite at the Bloomberg new economy forum in Singapore in about 20 minutes from now we'll go back to the Bloomberg.
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"Trump filed a lawsuit in an attempt to block the release of documents to the congressional committee investigating the January 6th insurrection at the capitol South Korea's military says North Korea has fired at least one ballistic missile into the sea and what was likely a weapon designed for a submarine based launch Major League Baseball the Red Sox trounced the Astros 12 three Boston now leads the ALCS to games one Monday Night Football the Titans beat the bills 34 31 NHL the rangers beat the main beliefs in overtime two one Global news 24 hours a day on air and on Bloomberg quick tag powered by more than 2700 journalists and analysts and more than a 120 countries Michael Barr and this is Bloomberg Nathan Thanks Michael 5 19 on Wall Street life in the Bloomberg interactive broker studios This is Bloomberg daybreak Morning I'm Nathan Hager Let's hear more now From our exclusive interview with Boris Johnson the British prime minister sat down for a conversation with Bloomberg news editor in chief John micklethwaite just 12 days before world leaders meet in Glasgow for the cop 26 climate summit They discussed topics ranging from climate change to the UK's relationship with China Let's listen in to some of that conversation now You look around the world the biggest source of investments at the moment The biggest source of FDI is China $130 billion they're investing overseas at the moment You look at you've come up with this strategy saying that you will let them invest in non strategic assets which seems to be not Huawei not technology and not nuclear power And I wondered what sort of things will they be allowed to invest in You talked about infrastructure They're the biggest infrastructure Monumentum queries circum speaky If you want to look around okay so when I was when I was running London I went out Several times to China And had fantastic trips I think things have changed Well there's no investment in stuff that drives jobs and growth in this country whether it's in development look at what's happening in Greenwich Vauxhall 9 elms things have Taken off there because of Chinese investments So I'm not going to tell you John that the UK government is going to pitchfork away every overture from China is a gigantic part of our economic life and will be for a long time for our lifetimes But that does not mean that we should be naive in the way that we look at our critical natural infrastructure the way we look at it you mentioned power you mentioned 5G technology Those are all legitimate concerns that any government meant many many other governments around the world have But I am I've said this many times it's worth repeating I am new sinophobia very far from it I think you think you're the last sign of file in the cabinet No I expect there are lots of it looks China's China is a great civilization What about wind power Would you let them buy offshore wind power I think you'd have to always You'd have to look at as we would have to look at what was your defining is strategic or critical But I certainly think that having a trading relationship with China If you look at it in spite of all the difficulties in spite of all the sort of angry conversations about or the difficult conversations about the Dalai Lama or Hong Kong or all the Uyghurs and where we will continue to stick to our points right We will continue to stick to our views But actually trade with China has continued to expand for a very long time And I think probably will continue to expand as I say for the rest of our lives That doesn't mean that we should be we should be also we should be cautious about how we handle our C and I and about how we handle FDI from China into some of our so that's why we brought in some of the legislation that we have We were talking about China Yes Obviously a huge deal in cop And Xi Jinping looks unlikely to come at the moment What do you think is a realistic goal What's your what's your personal goal in terms of cop I think cop was always going to be extremely tough We're hoping that we'll get a good term out in spite of the pandemic But we want people to focus on is that their nationally determined contributions in reducing their CO2 making those hard pledges Plus we want commitments on coal cars cash and trees So we want the world to move away from coal by 2040 2030 for the developed nations We want to make sure that everybody stops using hydrocarbon fueled internal combustion engine cars and the UK is in the lead that we said that we would stop that by 2030 We want a big package for the developing world to help countries that haven't been historic emitters to cut their carbon So we need that $100 billion a year We need that $100 billion And the last thing is we want to make sure that we plant millions and millions of trees to help to fix the carbon and to restore the balance of nature So those are the we need the nationally determined contribution We need to keep 1.5 alive We need to restrict the growth in temperatures to 1.5° by the end of the century We think that with the commitments that we're seeing we could do it But we're going to need to see some real action from the participants in Glasgow And so thank you for talking to blue thank you Now as UK prime minister Boris Johnson in an exclusive interview with Bloomberg editor in chief John bickle fight Stay tuned for more of their conversation coming up next hour right here on Bloomberg daybreak Ahead of the market open on this Tuesday morning Futures are moving higher S&P futures up almost 14 points staff futures up 80 NASDAQ futures higher by 38 points ten year treasury is up four 30 seconds the yield 1.58% yield on the two year .39 Bitcoin just shy of $62,000.
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"Good morning from London I'm Caroline Hebner will welcome to Bloomberg daybreak Europe where Bloomberg's editor in chief John micklethwait has been sitting down with the prime minister He got 15 minutes and we're going to bring you all that the p.m. had to say on climate change How he and the Chancellor Rishi sunak really are low tax Tories on the City of London's bright future and that the UK is the number one place for FDI according to the British prime minister So we will bring you our interview with Boris Johnson All of the details throughout the program this morning Remember we are less than two weeks away from a key moment for Boris Johnson and for the world the cop 26 UN climate summit which takes place in Glasgow build as the world's best chance to get runaway climate change under control So a big stage Right We'll get to that interview in just a moment but I want to update you on the markets because it is earning season and the optimism around results is being balanced with the prospect of tightening monetary policy That is the debate within market Shares at the moment in Japan Australia and South Korea all posting gaze as suicide 300 up by more than 1% Treasure yields and the dollar have edged lower ten year yields up around three basis points one spot 5 7% on the ten year the gap between 5s and 30s has narrowed The Bank of England trade is again increasing their bets that the BOE will tighten policy They increase those bets yesterday So they actually think that the key policy rate will go to half of 1% which is quite a dramatic change WTI crude prices are 82.63 so also gaining two tenths of 1% and the bimberg dollar spot index softer by a quarter of 1% right now Those are the markets that are let's bring in our cross asset editor Joanna osser to delve a little deeper Talk us through Johanna how Chinese tech shares are doing because they are stand up performers this morning Right Caroline it's pretty interesting They hang sang tech index has now surpassed this 50 day moving average That's the first time since June 30th that it has And the previous climate went above It was brief time because investors and rush to sell again But this could be a good sign for the shares And of course one of the explanations is just that people think there might not be that much more to do in terms of regulation since there's been so much talk of it from the government lately Okay so that on Chinese textures what about U.S. stock valuations relatively high What might keep money flowing into equity slow Well one answer from Goldman Sachs is they think that M and a and pension funds are going to bring money in and big cash piles actually So Goldman says that companies could be the biggest source of inflows into stocks next year and probably to the tune of 350 billion or so And that household could come in with maybe 300 billion of net inflows because they just have so much after the pandemic savings Okay Interesting Thanks so much Joanna Austin filter market comedy and analysis check out markets live ML IV on your Bloomberg terminal So those are the markets Well far fewer bankers than expected have left the City of London That according to the prime minister Boris Johnson he's been speaking to Bloomberg we're going to bring you that interview in just a moment Let me first break though Ericsson's results third quarter adjusted operating profit comes in at 8.8 billion Swedish krona That is above the estimate of 7.63 billion so we're keeping an eye on all the results that are rolling in for you But let's go to our top stories now And our exclusive interview with Boris Johnson So the prime minister is vowing to find a solution to an impulse with the EU over Brexit provisions related to Northern Ireland These are the first comments on the issue from Johnson since talks with the block reopened last week have a listen Is there a problem with the Northern Irish protocol Yes there is but we'll fix that and I don't think that's going to be the end of the world So Boris Johnson not the end of the world So quite an art beat tone there from the prime minister does that indicate a compromise is near when it comes to the Brexit agreement over Northern Ireland Meanwhile when it comes to Chinese investments into the UK in conversation with Bloomberg's John micklethwaite the prime minister said that Britain will keep the door open to Chinese investment in non strategic parts of the economy although he did not define what strategic meant I'm not going to tell you John that the UK government is going to pitchfork away every overture from China is a gigantic part of our economic life and will be for a long time for our lifetimes But that does not mean that we should be naive meanwhile on taxes Boris Johnson hinted at potential tax cuts for UK businesses You can take it the Rishi sunak is indeed am I is a staunch low tax conservative and that is and he believes in an enterprise economy So prime minister there in terms of tax cuts for British businesses whipping through some of the highlights of what Boris Johnson is telling us is told Bloomberg in this exclusive interview Of course you've got to bear in mind that Johnson's conservative government is expected to raise the tax burden as a proportion of national income actually to 35% which the institute for fiscal studies says will be the highest sustained level since 1955 so that on tax cuts But what about the big conversation that I mentioned or climate change Boris Johnson issued a rallying cry for real action on climate change ahead of the international gathering of leaders that begins on the 31st of October in Glasgow We need the national determined contribution We need to keep 1.5 alive You need to restrict the growth in temperatures to 1.5° by the end of the century We think that with the commitments that we're seeing we could we could do it But we're going to need to see some real action from the participants in Glasgow Okay real action Well we've got less than two weeks to go and it is unclear if some of the biggest players including the Chinese president Xi Jinping will even attend cop 26 So that's pretty crucial And also as part of Johnson's aim to position the UK now as a leader in the fight against climate change Johnson unveiled a 3.9 billion plan to drive down carbon emissions from homes and offices measures include grants for homeowners who replace gas boilers with cleaner heat pumps and also funding to.
Bloomberg Radio New York
"john micklethwaite" Discussed on Bloomberg Radio New York
"The region Our White House spokesman Jen Psaki says the administration is also treating it as an act that can increase tensions in the region I have a couple of headlines moving up on the Bloomberg terminal now We'll fill you in as the day progresses UK first and an exclusive interview of Boris Johnson prime minister with our Bloomberg John micklethwaite says he sees extremely tough global climate talks ahead Also we're getting a headline up on the Bloomberg saying the FDA is going to allow mix and match approach for COVID booster shots and Moderna's CEO in an exclusive interview as well says COVID booster could get cleared this week That's for Moderna Hong Kong chief executive Carrie lam will remain in the hospital under observation after suffering a right elbow fracture at the government house chief executive secretary of administration will act on behalf while she is on leave Although U.S. president Joe Biden says there's no deadline on working on a compromise infrastructure plan Spokeswoman Jen Psaki says he is meeting today with members of his own party He will host two different meetings with House members here at The White House One with moderates and one with progressive members Meanwhile moderate Joe Manchin has come out doubting any deal will come by the end of the month and saying he is opposed to many of the climate change green efforts in the package China is seeing a new cluster of COVID cases in its northwestern provinces 8 infections since the beginning of the week and shanxi province former Secretary of State U.S. chair of the joint chief staff chief of staff U.S. ambassador to the UN Colin Powell has passed away at the age of 84 complications from COVID Current Secretary of State Antony Blinken He treated people the way he expected.