1
00:00:02,520 --> 00:00:07,000
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:09,960 --> 00:00:12,240
Speaker 2: This is the bloom Big Day BAQT podcast. Good morning,

3
00:00:12,240 --> 00:00:15,920
Speaker 2: It's Thursday, the eighteenth of September. I'm Caroline Hepkat in London.

4
00:00:15,960 --> 00:00:19,239
Speaker 3: And I'm Stephen Caroline Brussels. Coming up today, Jerome Powell

5
00:00:19,360 --> 00:00:22,599
Speaker 3: rallies Federal Reserve rate setters to back a twenty five

6
00:00:22,720 --> 00:00:27,120
Speaker 3: basis point cut, as Trump's appointee Myron ups for fifty.

7
00:00:27,280 --> 00:00:30,680
Speaker 2: The US President joins the King and Tech Royalty for

8
00:00:30,720 --> 00:00:33,720
Speaker 2: a glittering state banquet at Windsor Castle.

9
00:00:34,240 --> 00:00:37,640
Speaker 3: Plus pulling the Plug, Disney takes Jimmy Kimmel's talk show

10
00:00:37,840 --> 00:00:41,200
Speaker 3: off air over remarks he made about Charlie Kirk's killing.

11
00:00:41,560 --> 00:00:44,160
Speaker 2: Let's start with a roundup of our top stories.

12
00:00:44,000 --> 00:00:46,919
Speaker 3: The Federal Reserve Church. Jerome Powell has rallied his committee

13
00:00:46,960 --> 00:00:50,159
Speaker 3: of policymakers to back the Central Bank's first interest rate

14
00:00:50,240 --> 00:00:53,240
Speaker 3: cut of the year. The quarter point reduction came after

15
00:00:53,280 --> 00:00:57,320
Speaker 3: a significant slowdown in job growth and an unprecedented push

16
00:00:57,320 --> 00:00:59,840
Speaker 3: by the White House for much lower rates, but with

17
00:00:59,880 --> 00:01:03,240
Speaker 3: the effects of tariffs on inflation still uncertain, Powell made

18
00:01:03,240 --> 00:01:06,000
Speaker 3: clear that Fed officials will face difficult trade offs in

19
00:01:06,040 --> 00:01:09,120
Speaker 3: the coming months. As they consider whether to keep cutting.

20
00:01:09,400 --> 00:01:10,959
Speaker 4: You can think of this in a way as a

21
00:01:11,040 --> 00:01:14,000
Speaker 4: risk management cut because if you look at the SEP,

22
00:01:14,360 --> 00:01:18,440
Speaker 4: actually the projections for growth this year next actually ticked

23
00:01:18,520 --> 00:01:21,240
Speaker 4: up just a little bit, and inflation and unemployment didn't

24
00:01:21,240 --> 00:01:23,600
Speaker 4: really move once. So what's different now. What's different now

25
00:01:23,680 --> 00:01:25,880
Speaker 4: is that you see a very different picture of the

26
00:01:26,000 --> 00:01:27,240
Speaker 4: risks to the labor market.

27
00:01:27,560 --> 00:01:29,880
Speaker 3: The decision to cut rights was nearly unanimous, with the

28
00:01:29,880 --> 00:01:33,039
Speaker 3: loan descent coming from FED Governor Stephen Myron, a close

29
00:01:33,080 --> 00:01:36,559
Speaker 3: ally of Donald Trump, who favored a larger reduction. FED

30
00:01:36,560 --> 00:01:39,959
Speaker 3: Governors Christopher Waller and Michelle Bowman, who dissented in July

31
00:01:40,120 --> 00:01:43,280
Speaker 3: in favor of a rate cut, supported this move well.

32
00:01:43,319 --> 00:01:46,000
Speaker 2: The Bank of England is expected to rein in its

33
00:01:46,120 --> 00:01:50,720
Speaker 2: quantitative tightening program amid concerns that its guilt sales are

34
00:01:50,720 --> 00:01:54,480
Speaker 2: worsening volatility in the bond market. Economists and investors are

35
00:01:54,560 --> 00:01:57,920
Speaker 2: expecting the Bank's Monastory Policy Committee to slow the speed

36
00:01:58,360 --> 00:02:01,560
Speaker 2: at which it reduces its whole things of government bonds

37
00:02:01,800 --> 00:02:05,240
Speaker 2: to seventy billion pounds a year, down from one hundred billion.

38
00:02:05,640 --> 00:02:08,600
Speaker 2: Officials may also decide to self view a long dated

39
00:02:08,680 --> 00:02:11,919
Speaker 2: guilts the Bank will announce the changes alongside its interest

40
00:02:12,000 --> 00:02:15,200
Speaker 2: rate decision today, where it's widely expected to hold rates

41
00:02:15,240 --> 00:02:18,280
Speaker 2: at four percent, a mid high inflation of three point

42
00:02:18,280 --> 00:02:18,799
Speaker 2: eight percent.

43
00:02:18,840 --> 00:02:22,640
Speaker 3: In August, Britain's King Charles praised US President Donald Trump's

44
00:02:22,639 --> 00:02:26,160
Speaker 3: efforts to support Ukraine against tyranny. After a day of

45
00:02:26,240 --> 00:02:30,760
Speaker 3: lavish celebrations in honor of the special relationship, The UK

46
00:02:30,880 --> 00:02:34,040
Speaker 3: monarch underlined the strength of the ties between the two

47
00:02:34,040 --> 00:02:36,639
Speaker 3: countries in his speech at the state banquet.

48
00:02:37,919 --> 00:02:42,800
Speaker 5: In two World Wars, we fought together to defeat the

49
00:02:42,880 --> 00:02:48,839
Speaker 5: forces of tyranny. Today, as a tyranny once again threatens Europe,

50
00:02:49,400 --> 00:02:54,000
Speaker 5: we and our allies stand together in support of Ukraine.

51
00:02:54,280 --> 00:02:57,760
Speaker 5: Coming to the terror aggression and secure peace.

52
00:02:59,120 --> 00:03:01,720
Speaker 3: King Charles has come on Ukraine. Came after a day

53
00:03:01,720 --> 00:03:05,240
Speaker 3: of royal spectacle. The two heads of state, inspected troops,

54
00:03:05,520 --> 00:03:08,320
Speaker 3: rode in a horse drawn carriage and later a wreath

55
00:03:08,360 --> 00:03:11,040
Speaker 3: for the late Queen Elizabeth. The ceremony seems to have

56
00:03:11,080 --> 00:03:12,639
Speaker 3: impressed the US President.

57
00:03:13,160 --> 00:03:15,560
Speaker 6: This is surely one of the highest honors of my life.

58
00:03:16,160 --> 00:03:18,200
Speaker 6: So she's effect for you, and so to respect for

59
00:03:18,240 --> 00:03:21,600
Speaker 6: your country for many decades, His Majesty, the King is

60
00:03:22,440 --> 00:03:27,560
Speaker 6: epitomized the fortitude, nobility, and the spirit of the British

61
00:03:27,600 --> 00:03:29,040
Speaker 6: monarchy and the British people.

62
00:03:29,919 --> 00:03:32,480
Speaker 3: Donald Trump speaking at the state banquet and Windsor Castle

63
00:03:32,680 --> 00:03:35,480
Speaker 3: in diplomatic talks later today, the UK's Prime Minister, cair

64
00:03:35,520 --> 00:03:38,560
Speaker 3: Starmer hopes to press Trump on trade terms and the

65
00:03:38,560 --> 00:03:42,720
Speaker 3: war in Ukraine, although major breakthroughs aren't expected. The Prime

66
00:03:42,720 --> 00:03:45,400
Speaker 3: minister will do so without his top ambassador, who he

67
00:03:45,480 --> 00:03:49,840
Speaker 3: fired last week for his ties to the late Jeffrey Epstein.

68
00:03:50,720 --> 00:03:53,080
Speaker 3: The visit is also a chance for the two governments

69
00:03:53,120 --> 00:03:56,240
Speaker 3: to sign investment deals, with the British government announcing US

70
00:03:56,320 --> 00:03:59,640
Speaker 3: companies were planning one hundred and fifty billion pounds in

71
00:04:00,080 --> 00:04:02,240
Speaker 3: Esmond's to coincide with the occasion.

72
00:04:03,560 --> 00:04:06,520
Speaker 2: Now Disney is taking Jimmy Kimmel's talk show off the

73
00:04:06,600 --> 00:04:09,880
Speaker 2: air indefinitely amid a backlash to remarks that he made

74
00:04:09,880 --> 00:04:14,320
Speaker 2: about the killing of Republican activist Charlie Kirk. The comments,

75
00:04:14,440 --> 00:04:17,800
Speaker 2: which focused on the response of the Trump supporting MAGA

76
00:04:17,839 --> 00:04:22,560
Speaker 2: movement to Kirk's killing, angered many right wing commentators and

77
00:04:22,640 --> 00:04:26,640
Speaker 2: brought criticism from members of the Trump administration. Following that

78
00:04:26,800 --> 00:04:30,880
Speaker 2: the head of the US broadcast Regulator told Podcasts host

79
00:04:31,200 --> 00:04:34,720
Speaker 2: Benny Johnson, there was a strong case to punish Kimmel

80
00:04:34,839 --> 00:04:35,680
Speaker 2: and Disney.

81
00:04:36,400 --> 00:04:38,600
Speaker 7: From the moment that I have become shearman of the FCC,

82
00:04:39,040 --> 00:04:41,680
Speaker 7: I want to reinvigorate the public interest. And what people

83
00:04:41,680 --> 00:04:44,240
Speaker 7: don't understand is that the broadcasters, and you've gotten this right,

84
00:04:44,480 --> 00:04:48,599
Speaker 7: are entirely different than people that use other forms of communication.

85
00:04:48,640 --> 00:04:51,640
Speaker 7: They have a license granted by us at the FCC,

86
00:04:52,160 --> 00:04:55,599
Speaker 7: and that comes within an obligation to operate in the

87
00:04:55,640 --> 00:04:56,440
Speaker 7: public interest.

88
00:04:57,480 --> 00:05:01,359
Speaker 2: That was FCC Chair Brendan cars Making on The Benny Show.

89
00:05:02,160 --> 00:05:05,880
Speaker 2: Disney's ABC network took Kimmel's show off air after next

90
00:05:06,000 --> 00:05:09,479
Speaker 2: Our Media, which owns dozens of USTv affiliates, said that

91
00:05:09,560 --> 00:05:12,320
Speaker 2: it would pull the program in definitely from its stations

92
00:05:12,400 --> 00:05:16,520
Speaker 2: over the remarks, which it said were offensive and insensitive.

93
00:05:17,000 --> 00:05:21,000
Speaker 2: In a statement, the Writer's Guilds of America criticized the move, saying, quote,

94
00:05:21,160 --> 00:05:24,440
Speaker 2: if free speech applied only to ideas we like, we

95
00:05:24,560 --> 00:05:27,159
Speaker 2: needn't have bothered to write it into the Constitution.

96
00:05:28,480 --> 00:05:31,000
Speaker 3: European Union countries have agreed to open talks with the

97
00:05:31,120 --> 00:05:33,919
Speaker 3: UK and Canada on access to its new one hundred

98
00:05:33,960 --> 00:05:38,920
Speaker 3: and fifty billion euro defense fund. Bloomberg's Micalcubala has more The.

99
00:05:38,880 --> 00:05:42,240
Speaker 8: Security Action for Europe program, known as SAFE, aims to

100
00:05:42,279 --> 00:05:45,760
Speaker 8: boost investment in the EU defense industry. Brussels will now

101
00:05:45,800 --> 00:05:49,200
Speaker 8: begin negotiations to allow British and Canadian firms to take

102
00:05:49,320 --> 00:05:53,479
Speaker 8: part in joint weapons projects funded by the plan. Other countries,

103
00:05:53,520 --> 00:05:57,440
Speaker 8: including Albania, Turkey and South Korea have also asked to join.

104
00:05:57,800 --> 00:06:01,520
Speaker 8: SAFE is designed to accelerate production of critical military equipment

105
00:06:01,720 --> 00:06:05,240
Speaker 8: such as drones or cyber defense. Nineteen new countries have

106
00:06:05,400 --> 00:06:08,600
Speaker 8: already applied for loans under the program. In Brussels and

107
00:06:08,640 --> 00:06:10,520
Speaker 8: Michalcobala Bloomberg.

108
00:06:10,080 --> 00:06:15,960
Speaker 2: Radio, French unions will lead widespread down to austerity protests today,

109
00:06:16,040 --> 00:06:19,640
Speaker 2: That says newly elected Prime Minister Sebastia la Cornu searches

110
00:06:19,839 --> 00:06:23,560
Speaker 2: for political allies to help draw up a budget. All

111
00:06:23,680 --> 00:06:28,120
Speaker 2: major labor organizations have instructed members to demonstrate against spending

112
00:06:28,200 --> 00:06:33,760
Speaker 2: cuts proposed in July that they say amount to unprecedented brutality.

113
00:06:34,160 --> 00:06:38,000
Speaker 2: Cyril Chabanier, president of the French Confederation of Christian Workers,

114
00:06:38,400 --> 00:06:41,760
Speaker 2: says the protests are about sparking change.

115
00:06:43,760 --> 00:06:47,440
Speaker 9: We are protesting primarily against the budget. That means we

116
00:06:47,520 --> 00:06:50,960
Speaker 9: really want to create pressure so that the budget presented

117
00:06:50,960 --> 00:06:54,640
Speaker 9: by Francois Bairou, which could be surprised by mister Lecornu,

118
00:06:54,839 --> 00:06:58,720
Speaker 9: will be profoundly modified. So it's that that is important

119
00:06:58,960 --> 00:07:01,279
Speaker 9: to place pressure so that we are understood.

120
00:07:02,640 --> 00:07:07,039
Speaker 2: French trade unionist Cyril Chaboner speaking there. Lecornu is yet

121
00:07:07,080 --> 00:07:10,480
Speaker 2: to indicate though, which fiscal concessions he's willing to make

122
00:07:10,520 --> 00:07:14,440
Speaker 2: to the budget initially proposed by previous Prime Minister Francois Beiru,

123
00:07:14,840 --> 00:07:17,800
Speaker 2: who was forced to resign after losing a confidence vote

124
00:07:17,840 --> 00:07:18,800
Speaker 2: earlier this month.

125
00:07:19,640 --> 00:07:22,200
Speaker 3: Meto wants to turn its smart glasses into a must

126
00:07:22,240 --> 00:07:25,560
Speaker 3: have product, with a new model boasting in built screens.

127
00:07:25,880 --> 00:07:29,480
Speaker 3: The social media giant is rebranding the product is AI Glasses,

128
00:07:29,520 --> 00:07:32,120
Speaker 3: with a price tag of seven hundred and ninety nine dollars.

129
00:07:32,480 --> 00:07:36,040
Speaker 3: Meta CEO Mark Zuckerberg says he's bringing super intelligence to

130
00:07:36,120 --> 00:07:37,600
Speaker 3: consumer electronics.

131
00:07:38,320 --> 00:07:41,120
Speaker 10: This is going to be the most important technology in

132
00:07:41,160 --> 00:07:46,560
Speaker 10: our lifetimes. AI should serve people, not just be something

133
00:07:46,600 --> 00:07:50,080
Speaker 10: that sits in a data center automating large parts of society.

134
00:07:50,640 --> 00:07:54,720
Speaker 10: So we design our glasses to be able to empower

135
00:07:54,840 --> 00:07:58,560
Speaker 10: people with new capabilities as soon as they become possible.

136
00:07:59,520 --> 00:08:02,360
Speaker 3: Zuckerberg. We're speaking at metas annual events to showcase new

137
00:08:02,360 --> 00:08:05,240
Speaker 3: technology the company's helping. The new display glasses will be

138
00:08:05,280 --> 00:08:08,760
Speaker 3: a stepping stone to full augmented reality glasses.

139
00:08:09,640 --> 00:08:11,880
Speaker 2: Okay, those were a few of our top stories for

140
00:08:12,000 --> 00:08:14,840
Speaker 2: you this morning. So in terms of the markets, US

141
00:08:14,880 --> 00:08:17,920
Speaker 2: stock futures are up after the further rate cut yesterday.

142
00:08:18,000 --> 00:08:20,600
Speaker 2: NASA Future is in particular up by seven tenths of

143
00:08:20,640 --> 00:08:23,200
Speaker 2: one percent, and you did have global stocks rally on

144
00:08:23,320 --> 00:08:27,200
Speaker 2: the back of that cart with more penciled in treasuries

145
00:08:27,200 --> 00:08:30,840
Speaker 2: this morning, rallying a tad for spot zero six four

146
00:08:30,960 --> 00:08:34,560
Speaker 2: ten yields down two basis points. Bank of England not

147
00:08:34,679 --> 00:08:38,600
Speaker 2: expected to cut rates. It's all about quantitative tightening and

148
00:08:37,880 --> 00:08:41,120
Speaker 2: what they're doing in terms of their guilt sales reducing

149
00:08:41,160 --> 00:08:45,760
Speaker 2: those is the expectation. European stock futures are also up

150
00:08:45,760 --> 00:08:49,040
Speaker 2: this morning, four tenths of one percent, oil holding on

151
00:08:49,080 --> 00:08:52,000
Speaker 2: to declines that we saw yesterday. Break Read futures down

152
00:08:52,040 --> 00:08:55,240
Speaker 2: another three tenths of one percent this morning, weighing that

153
00:08:55,400 --> 00:08:59,480
Speaker 2: rate cut and increase US fuel Inventory's gold is also

154
00:08:59,520 --> 00:09:02,080
Speaker 2: download to tens this morning. Those are the markets in

155
00:09:02,120 --> 00:09:02,520
Speaker 2: a moment.

156
00:09:02,559 --> 00:09:04,640
Speaker 3: More on the Fed and Bank of England decisions, plus

157
00:09:04,679 --> 00:09:08,000
Speaker 3: the nightmare at Nesle, the challenges facing the new top

158
00:09:08,040 --> 00:09:11,200
Speaker 3: team at the world's biggest food company. But I just

159
00:09:11,240 --> 00:09:12,679
Speaker 3: want to take a moment to talk a little bit

160
00:09:12,679 --> 00:09:17,320
Speaker 3: about the banquet at Windsor Castle. Needless to say, pretty

161
00:09:17,320 --> 00:09:20,400
Speaker 3: opulent affair in Saint Georgie's hole. One hundred and sixty

162
00:09:20,480 --> 00:09:23,480
Speaker 3: guest and I note more than fourteen hundred pieces of cutlery,

163
00:09:23,559 --> 00:09:25,120
Speaker 3: which I'm very glad that I was not involved in

164
00:09:25,200 --> 00:09:26,960
Speaker 3: having to wash or polish.

165
00:09:27,000 --> 00:09:30,640
Speaker 2: Absolutely, but I think the key takeaway I watched it

166
00:09:30,720 --> 00:09:32,560
Speaker 2: last night, which is why I'm a little bleary eyed

167
00:09:32,559 --> 00:09:35,280
Speaker 2: this morning. President Chop was full of praise and admiration,

168
00:09:35,400 --> 00:09:37,080
Speaker 2: not just for the King but also for the UK

169
00:09:37,400 --> 00:09:40,840
Speaker 2: for the special relationship. He called it more than that

170
00:09:41,440 --> 00:09:44,200
Speaker 2: we like two notes in one chord, or two verses

171
00:09:44,240 --> 00:09:46,760
Speaker 2: of the same poem. Stephen, I don't think that the

172
00:09:46,880 --> 00:09:50,080
Speaker 2: UK could have had a better speech in diplomatic terms

173
00:09:50,440 --> 00:09:53,280
Speaker 2: from the US leader, and certainly if you listened with

174
00:09:53,360 --> 00:09:57,320
Speaker 2: a conservative or reform UK here so Britain has used

175
00:09:57,600 --> 00:10:01,680
Speaker 2: it's royal diplomacy in all of that pomp to really

176
00:10:01,800 --> 00:10:05,760
Speaker 2: create a genuinely warm feeling. Does that soft power now

177
00:10:05,800 --> 00:10:09,040
Speaker 2: bring economic benefits when you get to the nitty grinity

178
00:10:09,120 --> 00:10:12,680
Speaker 2: of the politics today, huge sums in terms of tech investment,

179
00:10:12,920 --> 00:10:16,200
Speaker 2: does that actually deliver for jobs and growth in the UK?

180
00:10:16,400 --> 00:10:19,240
Speaker 2: Did the UK get Is it getting a good deal

181
00:10:19,280 --> 00:10:20,920
Speaker 2: out of these tech sums?

182
00:10:21,520 --> 00:10:24,040
Speaker 3: I mean, on a modulizer note, I solute your Britishness

183
00:10:24,080 --> 00:10:26,080
Speaker 3: that you stayed up late and sacrificed your sleep to

184
00:10:26,080 --> 00:10:30,360
Speaker 3: watch the stage banquet. It is a historic exactly, It's

185
00:10:30,360 --> 00:10:31,719
Speaker 3: a big moment. I mean, to be honest, I was

186
00:10:31,760 --> 00:10:34,800
Speaker 3: struck looking at it. Is that the despite the fact

187
00:10:34,840 --> 00:10:36,640
Speaker 3: that this was you know, the top tier list of guests,

188
00:10:36,640 --> 00:10:38,320
Speaker 3: all these CEOs, you know, it's even towards some from

189
00:10:38,360 --> 00:10:40,600
Speaker 3: Blackstone and all the tech CEOs we've talked about being there,

190
00:10:40,760 --> 00:10:43,080
Speaker 3: they couldn't see each other the table, that the table

191
00:10:43,200 --> 00:10:45,199
Speaker 3: dressings are so high that you would not have been

192
00:10:45,200 --> 00:10:47,160
Speaker 3: able to look at or speak to the person setting

193
00:10:47,160 --> 00:10:49,640
Speaker 3: opposite you, because I mean it looked nearly the same

194
00:10:49,679 --> 00:10:51,760
Speaker 3: height as the table itself with the pile.

195
00:10:52,960 --> 00:10:55,280
Speaker 2: Again, did I watched it too closely? Because apparently it

196
00:10:55,320 --> 00:10:58,920
Speaker 2: was meant to look like a dragon. The table decorations,

197
00:10:59,040 --> 00:11:02,960
Speaker 2: yes they were. They everything was themed. Absolutely, everything was

198
00:11:03,000 --> 00:11:05,640
Speaker 2: meant to be a pointer to heritage, et cetera.

199
00:11:05,840 --> 00:11:08,560
Speaker 3: And even though of course Donald Trump does not drink alcohol,

200
00:11:08,600 --> 00:11:11,400
Speaker 3: they did have a special nineteen forty five vintage port

201
00:11:11,760 --> 00:11:13,600
Speaker 3: hoverly after dinner drinks, which was meant to be a

202
00:11:13,600 --> 00:11:15,360
Speaker 3: nod to him being the forty fifth president of the

203
00:11:15,440 --> 00:11:17,680
Speaker 3: United States. As you say, every detail paid attention to

204
00:11:17,720 --> 00:11:20,640
Speaker 3: the focus, of course, shifting today to the more serious

205
00:11:20,640 --> 00:11:24,120
Speaker 3: conversations as that meeting coming up with Keir Starmer or

206
00:11:24,160 --> 00:11:25,840
Speaker 3: later on at a press conference, as well as plenty

207
00:11:25,880 --> 00:11:28,760
Speaker 3: more to come on Donald Trump's state visit to the UK.

208
00:11:29,600 --> 00:11:32,240
Speaker 2: Now, let's bring you some details of the Federal Reserve

209
00:11:32,280 --> 00:11:36,040
Speaker 2: decision yesterday, with the US Central Bank signaling more cuts

210
00:11:36,080 --> 00:11:39,079
Speaker 2: are to come this year. This as we look ahead

211
00:11:39,120 --> 00:11:41,840
Speaker 2: to today's Bank of England decision, where rates are expected

212
00:11:41,840 --> 00:11:43,880
Speaker 2: to stay on hold at four percent. Our market supporter

213
00:11:44,000 --> 00:11:46,600
Speaker 2: value title joins us now for more, Rennie, good morning.

214
00:11:46,640 --> 00:11:49,800
Speaker 2: Valve the FED cut by a quarter point as markets expected.

215
00:11:49,840 --> 00:11:52,480
Speaker 2: What did Powell tell us about what happens next?

216
00:11:52,960 --> 00:11:56,200
Speaker 11: Look, he was not as strong in his language about

217
00:11:56,240 --> 00:11:58,880
Speaker 11: the pace of rate cuts or even the door for

218
00:11:59,000 --> 00:12:02,280
Speaker 11: October being white open for yet another rate cut, and

219
00:12:02,280 --> 00:12:05,280
Speaker 11: that really kind of disappointed the equity market and the

220
00:12:05,320 --> 00:12:07,680
Speaker 11: treasury market at the end of the session, So he

221
00:12:07,800 --> 00:12:11,080
Speaker 11: wasn't super clear, and he also wasn't super clear that

222
00:12:11,440 --> 00:12:14,199
Speaker 11: when it comes to their dual mandate that the risks

223
00:12:14,200 --> 00:12:17,880
Speaker 11: to labor market now completely outweigh the risks to inflation.

224
00:12:17,960 --> 00:12:20,360
Speaker 11: When he was talking about the dual mandate, he has

225
00:12:20,440 --> 00:12:24,240
Speaker 11: said that the downside risks to unemployment have risen, but

226
00:12:24,320 --> 00:12:28,920
Speaker 11: the two mandates are moving more into an equal framework.

227
00:12:29,000 --> 00:12:32,679
Speaker 11: So there wasn't any big flashing sign out there that

228
00:12:32,800 --> 00:12:35,480
Speaker 11: for him, the labor market needed a quick adjustment in

229
00:12:35,520 --> 00:12:39,079
Speaker 11: policy rates. And actually Caroline, when he was asked about

230
00:12:39,240 --> 00:12:42,560
Speaker 11: whether they discussed fifty bases points and whether what he

231
00:12:42,600 --> 00:12:45,200
Speaker 11: felt about a fifty basis point cut, he said that

232
00:12:45,280 --> 00:12:48,200
Speaker 11: it had little support within the committee at all today

233
00:12:48,280 --> 00:12:51,080
Speaker 11: for a fifty basis point rate reduction and said that

234
00:12:51,120 --> 00:12:53,040
Speaker 11: you tend to do those things when you feel that

235
00:12:53,120 --> 00:12:55,800
Speaker 11: policy is out of place and you need to move quickly,

236
00:12:56,200 --> 00:12:58,880
Speaker 11: and that is not at all how I feel, so

237
00:12:58,960 --> 00:13:01,000
Speaker 11: to me and to the market, that meant that this

238
00:13:01,160 --> 00:13:04,360
Speaker 11: argument that Christopher Waller has put forward that the labor

239
00:13:04,400 --> 00:13:07,880
Speaker 11: market is flashing red and needs urgent rate cuts has

240
00:13:07,960 --> 00:13:11,440
Speaker 11: just not necessarily convinced the rest of the members yet,

241
00:13:11,520 --> 00:13:15,040
Speaker 11: and maybe even perhaps even Christopher Waller himself is less

242
00:13:15,040 --> 00:13:18,520
Speaker 11: convinced about that framework because he did not dissent at

243
00:13:18,520 --> 00:13:21,360
Speaker 11: this meeting. There was only one discent, Caroline. It came

244
00:13:21,360 --> 00:13:24,400
Speaker 11: from the new member, Stephen Myron, who voted for a

245
00:13:24,440 --> 00:13:29,240
Speaker 11: fifty basis point rate reduction. But Christopher Waller and Bowman,

246
00:13:29,280 --> 00:13:32,320
Speaker 11: who dissented in the previous decision, did not dissent this

247
00:13:32,400 --> 00:13:35,000
Speaker 11: time for a larger than expected rate cut. They did

248
00:13:35,080 --> 00:13:37,920
Speaker 11: vote for a twenty five basis point rate reduction, So

249
00:13:38,000 --> 00:13:40,920
Speaker 11: that to me is kind of the more duvish. The

250
00:13:41,040 --> 00:13:44,480
Speaker 11: leaders of the duvish camp previously, that being Christopher Waller,

251
00:13:44,559 --> 00:13:47,320
Speaker 11: might be less convinced in their case, perhaps after that

252
00:13:47,400 --> 00:13:50,640
Speaker 11: really hot retail sales figure we got two days ago, Valerie.

253
00:13:50,720 --> 00:13:52,280
Speaker 3: I mean, a lot of the focus around this meeting

254
00:13:52,320 --> 00:13:54,680
Speaker 3: has been on the presence of Stephen Myron on that

255
00:13:54,720 --> 00:13:56,920
Speaker 3: policy making committee, and as you say, he was the dissenter.

256
00:13:56,960 --> 00:13:59,320
Speaker 3: He voted for fifty basis points as well. He'd come

257
00:13:59,360 --> 00:14:02,560
Speaker 3: from his job in the White House beforehand, and with

258
00:14:02,679 --> 00:14:05,880
Speaker 3: all of the questions around FED independence that were in

259
00:14:05,920 --> 00:14:08,480
Speaker 3: the background for this decision as well. I mean, how

260
00:14:08,559 --> 00:14:12,040
Speaker 3: significant is it that we only had one descent, I suppose,

261
00:14:12,200 --> 00:14:14,079
Speaker 3: and what does it mean for those questions around the

262
00:14:14,559 --> 00:14:15,559
Speaker 3: independence of the FED.

263
00:14:16,160 --> 00:14:19,640
Speaker 11: Well, Myron not only dissented, but in his dot in

264
00:14:19,640 --> 00:14:22,360
Speaker 11: that dot plot, he not only wanted a fifty basis

265
00:14:22,400 --> 00:14:25,480
Speaker 11: point rate reduction. Yes, in yesterday's meeting, he wanted a

266
00:14:25,480 --> 00:14:28,760
Speaker 11: fifty basis point in October and a fifty basis point

267
00:14:28,960 --> 00:14:31,520
Speaker 11: in December. So he wants one hundred and fifty basis

268
00:14:31,560 --> 00:14:35,160
Speaker 11: points of rate reduction before year end. So in that

269
00:14:35,280 --> 00:14:38,560
Speaker 11: kind of way, there was a pretty strong standout on

270
00:14:38,960 --> 00:14:42,000
Speaker 11: the Governor Board from Stephen Myron. It just does not

271
00:14:42,080 --> 00:14:44,920
Speaker 11: seem that he has convinced any other members around him

272
00:14:45,360 --> 00:14:49,440
Speaker 11: that the market, the labor market is in a case

273
00:14:49,480 --> 00:14:52,400
Speaker 11: where it needs those rapid cuts. But when it comes

274
00:14:52,400 --> 00:14:55,440
Speaker 11: to questions about independence, Powell was asked about that. He

275
00:14:55,480 --> 00:14:59,800
Speaker 11: was even asked about Lisa Cook's court case that's headed

276
00:14:59,800 --> 00:15:02,680
Speaker 11: to the Supreme Court. He didn't comment on any of that,

277
00:15:02,760 --> 00:15:07,040
Speaker 11: and pushback saying that this decision was made independent of

278
00:15:07,080 --> 00:15:10,160
Speaker 11: politics and looking at the data. That data has clearly

279
00:15:10,200 --> 00:15:13,440
Speaker 11: shown that labor market risks have risen and that in

280
00:15:13,520 --> 00:15:16,640
Speaker 11: some way warrants a move towards neutral and a less

281
00:15:16,680 --> 00:15:18,000
Speaker 11: restrictive policy stance.

282
00:15:18,320 --> 00:15:22,280
Speaker 2: Yeah, and pile talking about meeting by meeting that this

283
00:15:22,800 --> 00:15:26,280
Speaker 2: situation will continue, you know as they go forwards. In

284
00:15:26,320 --> 00:15:28,640
Speaker 2: terms of the Bank of England today, no change to

285
00:15:28,680 --> 00:15:32,040
Speaker 2: interest rates expected, but the focus is on guilt sales.

286
00:15:33,280 --> 00:15:35,160
Speaker 2: What are the markets going to be watching about this?

287
00:15:35,600 --> 00:15:38,040
Speaker 11: So the number of the market is projecting at least

288
00:15:38,080 --> 00:15:40,520
Speaker 11: for this update when it comes to their quantitative tightening

289
00:15:40,560 --> 00:15:43,320
Speaker 11: program is for it to be reduced from one hundred

290
00:15:43,400 --> 00:15:47,960
Speaker 11: billion to around seventy billion annual pace a year. That's

291
00:15:48,000 --> 00:15:50,280
Speaker 11: probably going to be the focus of the decision today.

292
00:15:50,320 --> 00:15:53,000
Speaker 11: We know that these guilt sales in some way have

293
00:15:53,080 --> 00:15:55,960
Speaker 11: been complicating the liquidity in the back end of the

294
00:15:55,960 --> 00:15:59,600
Speaker 11: guilt market that it has risen to multi decade highs

295
00:16:00,080 --> 00:16:03,000
Speaker 11: in the last month alone. However, when it comes to

296
00:16:03,040 --> 00:16:05,800
Speaker 11: the rate decision and the policy moving forward, there really

297
00:16:05,840 --> 00:16:08,880
Speaker 11: wasn't any surprises in the labor market data or the

298
00:16:08,920 --> 00:16:12,080
Speaker 11: inflation data we've gotten this week, so we the market

299
00:16:12,160 --> 00:16:14,800
Speaker 11: in some way is expecting the Bank of England to

300
00:16:14,880 --> 00:16:17,960
Speaker 11: not necessarily guide for any further rate reductions into the

301
00:16:18,040 --> 00:16:20,280
Speaker 11: end of the year. The market actually isn't really penciling

302
00:16:20,280 --> 00:16:23,720
Speaker 11: in one for a few months time, headed well into

303
00:16:23,720 --> 00:16:25,600
Speaker 11: twenty twenty six, so it's really going to be more

304
00:16:25,640 --> 00:16:29,000
Speaker 11: about the quantitative tightening program and maybe what that says

305
00:16:29,040 --> 00:16:31,400
Speaker 11: about their confidence in the long end of the guild market.

306
00:16:31,640 --> 00:16:36,360
Speaker 3: Okay, Valerie Titeler market supporter, thank you very much, Stay

307
00:16:36,400 --> 00:16:39,720
Speaker 3: with us. More from Bloomberg Daybreak Europe coming up after this.

308
00:16:41,280 --> 00:16:44,600
Speaker 2: Now the world's biggest food company, Nesle, has been shaken

309
00:16:44,640 --> 00:16:48,520
Speaker 2: by scandal and management top people after years of strategic drift,

310
00:16:48,600 --> 00:16:52,920
Speaker 2: advising debt investors oppressing the incoming CEO, Philip Nevatil to

311
00:16:53,040 --> 00:16:56,840
Speaker 2: restore stability. Bloomberg's Dasha Afanasieva has been writing about the

312
00:16:56,920 --> 00:17:01,240
Speaker 2: challenges that he faces, and she joins us now. Good morning, Dasha.

313
00:17:01,280 --> 00:17:04,960
Speaker 2: So Navata was brought in as CEO to replace Lauren Frex,

314
00:17:05,359 --> 00:17:09,480
Speaker 2: who was fired after an undisclosed romantic relationship. We learned

315
00:17:09,480 --> 00:17:11,959
Speaker 2: this week that the company's own chairman will now retire

316
00:17:12,080 --> 00:17:15,840
Speaker 2: early and will be replaced by the former Zara boss,

317
00:17:15,880 --> 00:17:20,320
Speaker 2: Pablo Isler, from next month. So it's a new top team.

318
00:17:20,640 --> 00:17:22,280
Speaker 2: What's their most important job now?

319
00:17:22,720 --> 00:17:26,040
Speaker 1: It's all changed at Nasslie. As you said in your intro,

320
00:17:26,440 --> 00:17:30,360
Speaker 1: Nasse since twenty two has kind of been adrift. I'm

321
00:17:30,359 --> 00:17:36,159
Speaker 1: talking about falling volumes, low sales, high costs, and the

322
00:17:36,280 --> 00:17:39,719
Speaker 1: task and the new management team is really to reignite growth.

323
00:17:41,200 --> 00:17:44,199
Speaker 1: And the task was the same really just over a

324
00:17:44,280 --> 00:17:48,240
Speaker 1: year ago when the previous CEO got appointed and he

325
00:17:48,320 --> 00:17:50,439
Speaker 1: had his pan in place, but it hasn't really fully

326
00:17:50,480 --> 00:17:51,119
Speaker 1: taken hold.

327
00:17:51,720 --> 00:17:54,760
Speaker 3: Dasha. What did the scandal around Laura Frex and his

328
00:17:54,840 --> 00:17:57,119
Speaker 3: relationship expose about the company.

329
00:17:57,520 --> 00:18:02,760
Speaker 1: It exposed very poor corporate governance and about a week

330
00:18:02,840 --> 00:18:07,080
Speaker 1: board because these things kind of happened under their watch

331
00:18:07,119 --> 00:18:09,960
Speaker 1: and maybe are too strong a chairman, and I think

332
00:18:09,960 --> 00:18:12,840
Speaker 1: it's raised for a lot of investors. It's raised questions

333
00:18:12,880 --> 00:18:17,160
Speaker 1: over whether that also explains these enforced errors that we've

334
00:18:17,200 --> 00:18:21,520
Speaker 1: had in recent years, things like the problems with the

335
00:18:21,600 --> 00:18:27,280
Speaker 1: vitamins and minerals business, things like contamination issues in French

336
00:18:27,359 --> 00:18:31,960
Speaker 1: mineral water and the overall sort of sluggish growth and

337
00:18:32,080 --> 00:18:33,760
Speaker 1: you know, Paul pricing that kind of thing.

338
00:18:34,119 --> 00:18:34,760
Speaker 11: So see you.

339
00:18:34,840 --> 00:18:38,240
Speaker 2: Philip Naverti spoke to staff yesterday. What did he say.

340
00:18:38,920 --> 00:18:43,520
Speaker 1: He praised the company's global reach and its brands, but

341
00:18:43,760 --> 00:18:46,040
Speaker 1: he said, I'm going to come back later with the

342
00:18:46,080 --> 00:18:50,119
Speaker 1: plan to return us to growth or strong growth. So

343
00:18:50,520 --> 00:18:53,080
Speaker 1: it's a sort of watch this space kind of meeting

344
00:18:53,160 --> 00:18:54,560
Speaker 1: that finished half an hour.

345
00:18:54,400 --> 00:18:58,119
Speaker 3: Early, which was of note in that sort of conversation

346
00:18:58,240 --> 00:19:02,000
Speaker 3: as well aside from the border turmoil at Nesle talk

347
00:19:02,040 --> 00:19:04,320
Speaker 3: to us about some of the other challenges the companies facing.

348
00:19:04,320 --> 00:19:07,120
Speaker 3: Of course, I'm thinking a Swiss company, tariff's clearly going

349
00:19:07,160 --> 00:19:08,040
Speaker 3: to be an issue for them.

350
00:19:08,440 --> 00:19:14,120
Speaker 1: So Nestle's almost all of Nessi's supply chain is quite localized.

351
00:19:15,160 --> 00:19:18,639
Speaker 1: The exception, the major exception would be an espresso, which

352
00:19:18,960 --> 00:19:22,320
Speaker 1: is all produced in Switzerland, and America is a major

353
00:19:22,520 --> 00:19:25,000
Speaker 1: market for that, although they didn't actually fully break it out.

354
00:19:25,160 --> 00:19:28,080
Speaker 1: Over all, it's like a six billion Swiss frank business

355
00:19:28,280 --> 00:19:31,720
Speaker 1: I think that more broadly, But like every company, you know,

356
00:19:31,720 --> 00:19:34,560
Speaker 1: obviously they have raw materials coming from various countries, so

357
00:19:34,600 --> 00:19:37,360
Speaker 1: they still have to import things, but at least the

358
00:19:37,359 --> 00:19:41,840
Speaker 1: final products are typically made locally, certainly in America, so

359
00:19:41,920 --> 00:19:44,800
Speaker 1: that's a source of relief. But of course tariffs complicate

360
00:19:44,880 --> 00:19:47,119
Speaker 1: the picture for all global companies.

361
00:19:48,960 --> 00:19:51,679
Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

362
00:19:51,760 --> 00:19:54,800
Speaker 3: stories making news from London to Wall Street and beyond.

363
00:19:55,119 --> 00:19:59,120
Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify,

364
00:19:59,200 --> 00:20:01,240
Speaker 2: and anywhere else you get your podcasts.

365
00:20:01,320 --> 00:20:04,359
Speaker 3: You can also listen live each morning on London Dab Radio,

366
00:20:04,400 --> 00:20:07,080
Speaker 3: the Bloomberg Business app, and Bloomberg dot Com.

367
00:20:07,119 --> 00:20:09,920
Speaker 2: Our flagship New York station, is also available on your

368
00:20:09,920 --> 00:20:14,639
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

369
00:20:14,880 --> 00:20:16,280
Speaker 2: I'm Caroline Hepka.

370
00:20:16,040 --> 00:20:18,480
Speaker 3: And I'm Stephen Carol. Join us again tomorrow morning for

371
00:20:18,600 --> 00:20:21,000
Speaker 3: all the news you need to start your day right

372
00:20:21,000 --> 00:20:26,439
Speaker 3: here on Bloomberg Daybreak Europe