Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Alexis Christophers. Here are the
Speaker 3: stories we're following today.
Speaker 2: Alexis, we are seeing a relief rally in markets on
Speaker 2: the prospect of the US ending the war with Iran soon.
Speaker 2: President Trump says he could see the conflict ending in
Speaker 2: two to three weeks as it enters its second month.
Speaker 1: I had one.
Speaker 2: Goal, they will have no nuclear weapon, and that goal
Speaker 2: has been attained.
Speaker 4: They will not have nuclear weapons.
Speaker 5: But we're finishing the job, and I think within maybe
Speaker 5: two weeks, maybe a couple of days longer to.
Speaker 1: Do the job.
Speaker 2: And remarks from the Oval Office heard live on Bloomberg Radio,
Speaker 2: President Trump said it's still possible Iron reaches a deal
Speaker 2: in that timeframe. Secretary of State Marco Rubio says the
Speaker 2: US has had four objectives to destroy a run's offensive missiles,
Speaker 2: destrot's missile production, destroy it's navy, and assure it never
Speaker 2: has a nuclear weapon on or.
Speaker 6: A head of schedule on each of those four objectives,
Speaker 6: and we can see the finish line. It's not today,
Speaker 6: it's not tomorrow, but it is coming. We are going
Speaker 6: to get to the point where our military will have
Speaker 6: achieved all of its objectives in this mission, and they're
Speaker 6: doing so with extraordinary efficiency.
Speaker 2: Secretary of State Rubio made those comments on Fox News.
Speaker 3: But there's one goal that the Trump administration is leaving unsaid.
Speaker 3: As we hear from Bloomberg Middle East correspondent Jumana Bersecci
Speaker 3: in Dubai.
Speaker 7: There was no real objective link to the reopening of
Speaker 7: the streets, and in fact, when he was asked about it,
Speaker 7: he said that they can leave it up to other
Speaker 7: people and pointed to other countries such as the likes
Speaker 7: of China who obviously benefit from the lion's share of
Speaker 7: the energy products that pass through the streets, and that
Speaker 7: it would sort of be something that can be dealt
Speaker 7: with at a later stage, so not an explicit objective
Speaker 7: per se anymore.
Speaker 3: Bloomberg's Jumana Barsecci reports President Trump has expressed frustration with
Speaker 3: US allies for not helping reopen the street. This morning,
Speaker 3: the President told the UK's Telegraph newspaper, but he's strongly
Speaker 3: considering pulling the US out of NATO after it failed
Speaker 3: to join the war, telling the paper it's quote beyond consideration.
Speaker 3: In the meantime, Iran continues to launch attax including at
Speaker 3: an oil tanker, off cutter and cruise missiles targeting the
Speaker 3: United Arab Emirates and a third US carrier group, the
Speaker 3: USS George W. Bush, is on its way to the
Speaker 3: Middle East. The White House as President Trump will deliver
Speaker 3: a primetime address on the war tonight. That's set for
Speaker 3: nine pm Wall Street Time. You could hear it live
Speaker 3: here on Bloomberg Radio or watch on Bloomberg Television and
Speaker 3: the Bloomberg Business app well.
Speaker 2: Alexis oil is falling on the latest war developments, even
Speaker 2: as the strait of hormones remains largely crolosed. Right now,
Speaker 2: Brent is down one point four percent, trading at one
Speaker 2: oh two forty nine a barrel. West Texas Intermediate's at
Speaker 2: ninety nine thirty four. Steven Stepchinski leads Bloomberg's team covering
Speaker 2: energy in Asia.
Speaker 8: There is a new risk premium for oil going through
Speaker 8: the Middle East and gas going through the Middle East.
Speaker 8: That's going to have to be sort of figured out
Speaker 8: going forward, because even if everything were to end, if
Speaker 8: the straight uport moves were to open, if all the
Speaker 8: infrastructure were to be repaired, there's still going to be
Speaker 8: fears in the back of the minds of traders, buyers,
Speaker 8: even sellers as to how safe everything is going forward,
Speaker 8: What are the chances that something could flare up again,
Speaker 8: What are the chances of insurance rates increasing as well?
Speaker 2: Bloomberg Steven Stepchinsky says, while Brenton dipped under one hundred
Speaker 2: dollars a barrel, it is still about thirty seven percent
Speaker 2: higher than before the war began.
Speaker 3: And Nathan, we are seeing stocks rally around the world
Speaker 3: this morning on optimism the war will end. Stocks in
Speaker 3: Japan soared more than five percent, the eurostocks fifty is
Speaker 3: up more than two percent. And this follows yesterday is
Speaker 3: Wall Street rally, which saw the S and P five
Speaker 3: hundred climb two point nine percent the Nasdaq surge three
Speaker 3: point eight percent. Laurence and Filippo is a senior investment
Speaker 3: strategist at Bank of America.
Speaker 9: I think this is a little bit of a relief
Speaker 9: rally here. Now it's headlined to head yeah, if this
Speaker 9: is really all clear, but I think this at least
Speaker 9: gives us a sense of how the markets would react
Speaker 9: when we really do find the end to this.
Speaker 3: Bank of America senior investment strategist Laurence san Felippo. Despite
Speaker 3: yesterday's rally, the S and P five hundred still fell
Speaker 3: four point six percent in the first quarter, while the
Speaker 3: nasjack dropped more than seven percent. Right now, we've got
Speaker 3: S and P futures up, Nathan about four tenths of
Speaker 3: one percent back.
Speaker 2: In Washington, Alexis, the Supreme Court is set to hear
Speaker 2: arguments this morning over the legality of President Trump's executive
Speaker 2: order that ends automatic citizenship for children born to parents
Speaker 2: who are in the US on a temporary visa or illegally.
Speaker 2: Bloomberg Zamy Morris reports from the nation's capital.
Speaker 10: President Trump's executive order stipulates the government will no longer
Speaker 10: recognize birthright citizenship for children born to undocumented immigrants. The
Speaker 10: move up ends more than a century of legal precedent.
Speaker 10: The case Trump versus Barbara tests a long settled interpretation
Speaker 10: of the Constitution that has governed citizenship for generations. The
Speaker 10: ACLU arguing that the executive order violates the Fourteenth Amendment,
Speaker 10: the Trump administration arguing that jurisdiction refers to political allegiance.
Speaker 10: A final decision by the Supreme Court is expected in
Speaker 10: late June or early July in Washington, Amy Morris, Bloomberg Radio.
Speaker 3: Thanks Amy. President Trump says he will attend those Supreme
Speaker 3: Court hearings this morning. In another development, the President has
Speaker 3: signed an executive order intended to make it harder for
Speaker 3: voters to cast mail in ballots. That's a practice used
Speaker 3: by millions of Americans. The order requires a Homeland Security
Speaker 3: Secretary to prepare a list of US citizens eligible to
Speaker 3: vote in each state, and the Postal Service to only
Speaker 3: send absentee ballots to voters on the approved list.
Speaker 4: The cheating on mail in voting is legendary.
Speaker 2: It's horrible what's gone on, and it's very clearly covered,
Speaker 2: very very clearly.
Speaker 4: So I think this will help a lot with elections.
Speaker 4: We'd like to have voter ID, we'd like to have proof.
Speaker 5: Of citizenship, and that'll be another subject for another time.
Speaker 3: The move is likely to draw legal challenges, with legal
Speaker 3: experts saying President Trump has virtually no authority to outlaw
Speaker 3: voting by mail himself without a change in law.
Speaker 2: Well, here's a move we haven't seen in more than
Speaker 2: a half century. Alexis NASA is preparing to send astronauts
Speaker 2: on a journey around the Moon. The Artemis two mission
Speaker 2: will send four astronauts on a trip to the Moon
Speaker 2: and back. If successful, it'll help clear the way for
Speaker 2: astronauts to walk on the Moon again maybe two years time.
Speaker 2: Bloomberg's Ed Ludlaw is in Florida for the launch.
Speaker 11: This is the great next step in America's ambition to
Speaker 11: have humans back on the Moon. In this mission, Optomist too,
Speaker 11: they're basically doing a fly by or a fly around
Speaker 11: the Moon, so they travel deep into space two hundred
Speaker 11: and eighty five thousand miles, go around the Moon and
Speaker 11: come back. But it's you know, it's the great dress
Speaker 11: rehearsal for the technology essentially that's planned to get humankind
Speaker 11: and driven by NASA America back to the Moon maybe
Speaker 11: twenty twenty eight.
Speaker 2: Bloomberg S Ed Ludlow notes, the launch window opens tonight
Speaker 2: at six twenty four Wall Street time. We will have
Speaker 2: live coverage of liftoff right here on Bloomberg Radio.
Speaker 3: All right, very exciting. Now back here on Earth, specifically
Speaker 3: Wall Street shares of Nike. They are plunging this morning,
Speaker 3: more than nine percent. The retailer gave a surprisingly gloomy
Speaker 3: outlook for the year ahead. Nike's facing headwinds around the globe,
Speaker 3: including elevated inventories in Europe and the Middle East and
Speaker 3: traffic disruption from the war.
Speaker 2: Well, open AI's valuation keeps going up like a rocket Alexis.
Speaker 2: It now stands at eight hundred and fifty two billion
Speaker 2: dollars after the chat GPT maker completed a deal to
Speaker 2: raise one hundred and twenty two billion from investors. The
Speaker 2: bulk of the financing came from three big tech companies, Amazon, Nvidia,
Speaker 2: and SoftBank.
Speaker 3: And Anthropic inadvertently released source code for its popular claud
Speaker 3: Ai agent. The leak of basic source code, the second
Speaker 3: slip up in just a week, triggered a discussion in
Speaker 3: the community around new revelations of how Anthropic's popular coding
Speaker 3: agent works. Several experts are also raising concern about potential
Speaker 3: security vulnerabilities and light of the unintended exposure.
Speaker 2: And a programming not Alexis. Markets may close on Fridays,
Speaker 2: but the world does not. And that's why we're bringing
Speaker 2: you a live radio and TV show. It's brand new,
Speaker 2: and it's called Bloomberg. This weekend looks beyond the daily
Speaker 2: headlines to focus on the bigger themes driving politics, business
Speaker 2: and culture. So join David Gura, Christina Raffini, and Lisa
Speaker 2: Matteo for smart conversations and in depth interviews that help
Speaker 2: make sense of the week that's been and what comes next.
Speaker 2: Get Bloomberg This Weekend Live Saturdays and Sundays from seven
Speaker 2: am Eastern on Bloomberg Radio TV and the Bloomberg Business app.
Speaker 3: Five ten on Wall Street Time Now for a look
Speaker 3: at some of the other stories making news in New
Speaker 3: York and around the world. For that, we're joined by Bloomberg'
Speaker 3: John Tucker. Good Morning, John, Good Morning.
Speaker 12: A linsis the federal judge who's ordered the Trump administration
Speaker 12: to suspend construction of the four hundred million dollar East
Speaker 12: Wing Ballroom. Let's get the tales this morning from Bloomberg's
Speaker 12: Monica Rix.
Speaker 13: US District Judge Richard Leon in Washington granted a reservationist
Speaker 13: group's requests for a preliminary injunction to halt the project.
Speaker 13: He concluded that the National Trust for Historic Preservation is
Speaker 13: likely to succeed on the merits of its claims because
Speaker 13: no statue comes close to giving the President the authority
Speaker 13: he claims to have. The Republican nominated judge said in
Speaker 13: his order, the President of the United States is the
Speaker 13: steward of the White House, not the owner. Crews have
Speaker 13: long since torn down the East Wing, radically transforming the
Speaker 13: look and feel of the historic grounds. Monica Ricks Bloomberg Radio.
Speaker 12: In another case a win for public broadcasting, a federal
Speaker 12: court ruled President Trump's anti media funding executive order is unlawful,
Speaker 12: the court granting a permanent injunction for the government implementing
Speaker 12: or enforcing the executive orders instructions to cease funding for
Speaker 12: National Public Radio and PBS. Judge Randolph Moss wrote the
Speaker 12: president can't use governmental power to direct federal agencies to
Speaker 12: bar grants in retaliation if the saying things he does
Speaker 12: not like. The First Amendment, he said, doesn't tolerate viewpoint
Speaker 12: discrimination and retaliation. Governors of six New England states backing
Speaker 12: their regional commitment to explore advanced nuclear technologies. Governors of Massachusetts, Connecticut, Maine,
Speaker 12: Rhode Island, New Hampshire, and Vermont have signed into a
Speaker 12: statement to explore steps to deploy advanced nuclear generation. Connecticut
Speaker 12: Governor Ned Lahmann site data showing electricity consumption in New England,
Speaker 12: who's expected to increase more than forty percent in the
Speaker 12: next twenty years, and the Department of Agriculture will lead
Speaker 12: dozens of American farm companies to the Philippines. It's a
Speaker 12: trade mission this month aiming to expand access to the
Speaker 12: Southeast Asian nation. The US is seeking to expand agricultural
Speaker 12: trade ties with the Philippines, a key defense ally in Asia.
Speaker 12: Global News twenty four hours a day and whenever you
Speaker 12: wanted with Bloomberg News. Now, I'm John Tucker. This is
Speaker 12: Bloomberg Alexis all.
Speaker 3: Thanks John. Time now for our Bloomberg Sports update, and
Speaker 3: for that we bring in John stash Hour.
Speaker 5: We've learned of four names that are going to the
Speaker 5: Basketball Hall of Fame, longtime NBA coach Doc Rivers, ex
Speaker 5: Nick and Phoenix Son, Amari Stodemeyer and Candice Parter and
Speaker 5: Elena Deladon, who starred in the WNBA. Tiger Woods put
Speaker 5: out a statement saying he's stepping away from golf to
Speaker 5: seek treatment and focus on his health. It comes four
Speaker 5: days after his latest car accident. Tiger hasn't been in
Speaker 5: a PG event almost two years, but he had not
Speaker 5: ruled out playing the upcoming Masters. That's your Bloomberg Sports Update.
Speaker 2: Stay with us. More from Bloomberg Daybreak coming up after.
Speaker 1: This Coast to coast on Bloomberg Radio, nationwide on Serious
Speaker 1: Exam and around the world on Bloomberg dot Com and
Speaker 1: the Bloomberg Business Oppum. This is Bloomberg Daybreak.
Speaker 2: Good morning on Nathan Hager. Two weeks, maybe three. That's
Speaker 2: the new timeline that President Trump has set out for
Speaker 2: the US to end it's war with Iran after nearly
Speaker 2: five weeks of conflict. More than five weeks, President says
Speaker 2: he has largely achieved his goal of ensuring Tehran never
Speaker 2: attains a nuclear weapon.
Speaker 4: We've had Rashim change. We're dealing with people that are
Speaker 4: much more rational, and it's amazing what we've done.
Speaker 2: President Trump and Oval Office remarks heard live on Bloomberg
Speaker 2: Radio and joining us from Dubai once again this morning
Speaker 2: is Bloomberg Middle East correspondent Jumana Borsecci, the anchor of
Speaker 2: Bloomberg Horizons. Jumana, good morning. We've heard the President say
Speaker 2: that the US has largely achieved its goals. It raises
Speaker 2: the question whether it has good morning.
Speaker 7: Good morning, yes. So market's certainly reacting to the comments
Speaker 7: coming through from President Trump. Last night, suggesting that there
Speaker 7: is a timeframe after which they would start to wind
Speaker 7: down their military operations. So he's suggesting two to three
Speaker 7: weeks is how much longer they anticipate it's going to
Speaker 7: take for them to fully achieve these military objectives. He
Speaker 7: also said that the main objective, which is ensuring that
Speaker 7: Iran doesn't go on to develop a nuclear weapon, has
Speaker 7: largely been achieved as well. And I think you know
Speaker 7: one other thing that really stood out from his comments
Speaker 7: yesterday is there was no linkage whatsoever between there perhaps
Speaker 7: anticipation that they're going to be winding down military operations
Speaker 7: in the next few weeks versus a reopening of the
Speaker 7: Strait of hormones, and he seemed to suggest that that
Speaker 7: is going to be or become a broader global issue
Speaker 7: as opposed to an issue or a term that the
Speaker 7: US will insist on should Iran actually come to the
Speaker 7: negotiating table. So we've sort of delinked in the last
Speaker 7: twenty four hours the fate of the Strait from the
Speaker 7: military operations that the US and Israel are conducting in Iran.
Speaker 2: It speaks to fresh comments that we've heard from President
Speaker 2: Trump in an interview just this morning with the UK's
Speaker 2: Telegraph newspaper some of his strongest comments yet, saying that
Speaker 2: he's strongly considering leaving NATO as well saying it's beyond consideration.
Speaker 2: These are pretty forceful words from the President this morning.
Speaker 7: Yep, that's right. He said he was disappointed in NATO,
Speaker 7: that this was a test for NATO. They're going to
Speaker 7: remember that they didn't stand that well, he will remember
Speaker 7: that NATO didn't stand by the US. But I think
Speaker 7: he's referring to the fact that several European nations have
Speaker 7: said that the US will cannot be using there's some
Speaker 7: of their air bases, the likes of Italy and Spain.
Speaker 7: But at the same time, you know what many of
Speaker 7: these European countries have said is they would look perhaps
Speaker 7: to be part of a coalition to secure safe passage
Speaker 7: in the Strait. But once the risk of vessels calms down,
Speaker 7: and once there is sort of a de escalation in
Speaker 7: terms of the ongoing military strikes and military attacks that
Speaker 7: are going that are taking place in the region. So
Speaker 7: it's not as though they've completely ruled it out. And
Speaker 7: in fact, Mark Ruta, who enjoys a good relationship with
Speaker 7: President Trump did suggest last week they're working on some
Speaker 7: form of a multilateral, multinational solution or coalition vis a
Speaker 7: vis the Strait, but asking NATAL members and asking European
Speaker 7: allies to get involved militarily in the war is deemed
Speaker 7: to be one step too far for them because it's
Speaker 7: not a war that they started.
Speaker 2: And you have to wonder whether that kind of effort
Speaker 2: to secure the Strait could fit into the President's two
Speaker 2: to three week window when we continue to see Iran
Speaker 2: carrying out drone and missile attacks across the Middle East
Speaker 2: even this morning.
Speaker 7: Yeah, I think one of the big questions that still
Speaker 7: remains unanswered coming out of President Trump's comments yesterday is
Speaker 7: what this means for number one, ongoing Israel Israeli operations
Speaker 7: as well. There has been it once again, an intensification
Speaker 7: of attacks and counter attacks in the last forty eight hours.
Speaker 7: And the second question is whether Iran would actually seize
Speaker 7: those attacks on the Gulf States, So whether in this
Speaker 7: case US protection or US security guarantees are still going
Speaker 7: to be valid for some of those key Golf allies
Speaker 7: in the region as well. So a lot of question
Speaker 7: marks still. And then the other thing that I would
Speaker 7: just remind people is there has been a significant amount
Speaker 7: of troop deployment to the region. We spoke about this
Speaker 7: earlier this week. The first marine expeditionary unit arrived on Friday,
Speaker 7: Bloomberg reporting overnight that another aircraft carrier is also making
Speaker 7: its way from California to the region as well. They're
Speaker 7: expected to arrive in another two to three weeks. And
Speaker 7: so you've got to think that the reason there is
Speaker 7: a reason for this additional military armada being deployed to
Speaker 7: the region, if they're not going to use it, then
Speaker 7: is it for deterrence? And if it is for deterrence,
Speaker 7: does that also benefit the Golf States as well?
Speaker 2: And if the idea is that the objective of preventing
Speaker 2: Iran from ever obtaining a nuclear weapon is large achieved,
Speaker 2: the President hasn't said that it has definitively been achieved yet.
Speaker 2: Could we see a possible ground action to try to
Speaker 2: seize Iran's uranium That's something that's been spoken about as well.
Speaker 7: Absolutely, and it didn't come up at all yesterday. There
Speaker 7: was no mention at all of that enriched uranium stockpile.
Speaker 7: And Iran is thought to be sitting on a stockpile
Speaker 7: of north of one thousand pounds or four hundred kilograms
Speaker 7: worth of this enriched uranium, and earlier reportings seemed to
Speaker 7: suggest that if there were going to be a targeted
Speaker 7: raid conducted by some of these new troops being deployed
Speaker 7: to the region, one of the options would be to
Speaker 7: send them inland to find to somehow be able to
Speaker 7: extract this enriched uranium stockpile. Obviously a very risky operation
Speaker 7: to undertake, but the fate as well of that enriched uranium,
Speaker 7: I think is one that is going to hang over
Speaker 7: the world over the next couple of weeks because it
Speaker 7: all goes back to the premise from this war at
Speaker 7: the very outset. You know, the whole objective, what Trump says,
Speaker 7: is to ensure that the Irans don't go on to
Speaker 7: develop a nuclear weapon. And so if they're still sitting
Speaker 7: on this one thousand pounds worth of enriched uranium, how
Speaker 7: is that pushing out the threats of their ability to
Speaker 7: develop a nuclear weapons. So this is one of the
Speaker 7: questions that's going to have to be resolved.
Speaker 2: I think one of many questions still to be resolved.
Speaker 2: Thank you for this, Jumana. We'll be checking back with
Speaker 2: you throughout the morning. That is Jumana Bursecci the inkor
Speaker 2: of Bloomberg Horizons with us this morning, once again from Dubai, Alexis.
Speaker 3: Thanks Nathan and recapping some of our top stories this morning.
Speaker 3: Stocks are rallying, Crude oil is sinking on optimism the
Speaker 3: war could end soon. The S and P five hundred
Speaker 3: so its biggest one day gain since last May. Yesterday,
Speaker 3: on President Trump's talk of leaving the war, President Trump
Speaker 3: plans to be in the court room as a Supreme
Speaker 3: Court takes up his bid and birthright citizenship arguments on
Speaker 3: the President's executive order are set for ten am Wall
Speaker 3: Street time, and the countdown is on for NASA's first
Speaker 3: manned moon mission in more than half a century. If
Speaker 3: all goes well, lift off for the ten day fly
Speaker 3: by for Artemis two is set for six twenty four
Speaker 3: this evening from Cape Canavil, Florida. More on those stories
Speaker 3: coming up on Bloomberg Daybreak, Nathan.
Speaker 2: Okay, Alexis, thank you for a five twenty two Now
Speaker 2: on Wall Street, we want to take a broader look
Speaker 2: at the market impact from this more than a month
Speaker 2: of war with Iran and the prospect of a resolution
Speaker 2: if we do see the US stick to the president's
Speaker 2: new timeframe of two to three weeks to end the conflict.
Speaker 2: Joining us now is Jane Foley, head of FX Strategy
Speaker 2: at Rabobank. Great to speak with you this morning, Jane.
Speaker 2: Of course, we've seen the dollar really perform as a
Speaker 2: big hedge during this conflict of flight to cash. What's
Speaker 2: the impact if we do see a quick resolution to
Speaker 2: this conflict?
Speaker 4: Good morning, Good morning, it's a pleasure to be here. Well,
Speaker 4: of course you've already seen it. Taste of that. Today
Speaker 4: the market is all about optimism. Today. It's really focusing
Speaker 4: on that two to three week timeline President Trump was
Speaker 4: talking about yesterday, and that of course means that it's
Speaker 4: been ignoring or all of those other factors that in
Speaker 4: mine has just been talking about, the Uranian and the
Speaker 4: rich Uranian for instance, around stockpiles, of that, the fact
Speaker 4: that there's already or still overnight and yesterday a lot
Speaker 4: of missiles in both directions, and so from that point
Speaker 4: of view, today is optimism. But we don't know for
Speaker 4: sure whether or not that's going to be the tone
Speaker 4: that the market will be adopting, you know, through next
Speaker 4: week or the week after for that, But as it
Speaker 4: stands that the dollar really has backtracked today, we've seen
Speaker 4: at the US dollar underperforming all other JTA currencies today,
Speaker 4: which is really in reflection of the optimism that's also
Speaker 4: been pushed through into stock markets and bomb markets too.
Speaker 2: Do you see certain currencies benefiting more from an early
Speaker 2: exit by the US.
Speaker 4: You know, it's difficult to see that if you look
Speaker 4: at the ones that have been the best performers today.
Speaker 4: But what we have noticed, you know, over the last month,
Speaker 4: is that aside from the theme of the dollar being
Speaker 4: the safe haven of choice, the next theme that really
Speaker 4: has pushed around FX rates has been this theme of well,
Speaker 4: which central banks are going to be hiking the most,
Speaker 4: and that leaves Sterling, you know, sort of next best
Speaker 4: at the top of the G ten par because just
Speaker 4: you know, six weeks or so ago, the market was
Speaker 4: anticipating that the Bank of Veno could be cutting interest
Speaker 4: rates twice more this year, and you know, since then
Speaker 4: it was thinking, oh, there might be two or three
Speaker 4: interest rate hikes, and that has meant that because of
Speaker 4: the short term interest rate differentials, Sterling has done well.
Speaker 4: But I think there's a real big butt to that
Speaker 4: because The reason that the market was expecting at Sterling
Speaker 4: to cut more this year was because excess capacity was
Speaker 4: showing an employment rate was going up, and that means
Speaker 4: that the UK is perhaps a more vulnerable position into
Speaker 4: this crisis, because don't forget, even if we do get
Speaker 4: a two to three week end to this conflict, or
Speaker 4: at least the US withdrawing, there is going to still
Speaker 4: be the damaging impacts of still higher energy prices than
Speaker 4: we would have had anyway, and that's still going to
Speaker 4: affect consumption through these economies. So I think there's still
Speaker 4: a lot of dust that needs to settle down as
Speaker 4: a market really works out exactly what the growth and
Speaker 4: the inflation impact of this crisis will be.
Speaker 2: Well, what do you see as the potential growth and
Speaker 2: inflation impact. We've got just about a minute left.
Speaker 4: Well, for instance, I think a country that's relatively well
Speaker 4: insulated is Norway. Yes, the central bankers walk because yes,
Speaker 4: there'll be some sort of inflationary impact, but don't forget,
Speaker 4: it's an energy exporter, which is positive for it and
Speaker 4: it eases. They're almost all renewable, so it's in a
Speaker 4: relatively good position. Australia, maybe I think that one could
Speaker 4: come back the Australian dollar as well.
Speaker 3: This is Bloomberg Daybreak, your morning podcast on the stories
Speaker 3: making news from Wall Street to Washington and beyond.
Speaker 2: Look for us on your podcast feed by six am
Speaker 2: Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 3: You can also listen live each morning starting at five
Speaker 3: am Wall Street Time on Bloomberg eleven three to zero
Speaker 3: in New York, Bloomberg ninety nine to one in Washington,
Speaker 3: Bloomberg ninety two nine in Boston, and nationwide on Sirius
Speaker 3: XM Channel one twenty one.
Speaker 2: Plus listen coast to coast on the Bloomberg Business app
Speaker 2: now with Apple CarPlay and Android Atuto interfaces.
Speaker 3: And don't forget to subscribe to Bloomberg News Now. It's
Speaker 3: the latest news whenever you want it in five minutes
Speaker 3: or less. Search Bloomberg News Now on your favorite podcast
Speaker 3: platform to stay informed all day long. I'm Alexis Christophorus.
Speaker 2: And I'm Nathan Hager. Join us again tomorrow morning for
Speaker 2: all the news you need to start your day right
Speaker 2: here on Bloomberg Day Bright
Speaker 9: Mm hmm