WEBVTT - Apple's New iPhone, Presidential Debate Preview 0:00:02.480 --> 0:00:12.080 Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan 0:00:12.119 --> 0:00:15.080 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.120 --> 0:00:16.640 following today, Karen. 0:00:16.720 --> 0:00:19.439 Stocks are coming off their worst week since March of 0:00:19.520 --> 0:00:23.639 last year after another disappointing jobs report revived concerns the 0:00:23.680 --> 0:00:26.840 economy is cooling and the Fed is moving too slowly 0:00:26.920 --> 0:00:29.960 to rescue it. But speaking with Bloomberg's David Gura over 0:00:30.000 --> 0:00:33.720 the weekend of the Texas Tribune Festival, Treasury Secretary Janet 0:00:33.800 --> 0:00:36.960 Yellen said she is not yet worried overall. 0:00:37.080 --> 0:00:41.640 I would say for the US the kinds of metrics 0:00:41.680 --> 0:00:46.360 that we would monitor that would summarize risks, whether it's 0:00:46.440 --> 0:00:53.040 asset valuations or the degree of leverage. Things look good. 0:00:53.120 --> 0:00:56.400 There are not I don't see red lights flashing. 0:00:56.720 --> 0:01:00.240 Treasury Secretary Janet Yellen, speaking with Bloomberg's David Gurra, she 0:01:00.280 --> 0:01:03.120 reiterated her view that the US economy has reached a 0:01:03.240 --> 0:01:06.440 soft landing, even as job growth weekends. 0:01:06.400 --> 0:01:08.839 Well, Nathan, traders will now be keeping a close eye 0:01:08.840 --> 0:01:12.240 on the next key economic data point. On Wednesday, we 0:01:12.319 --> 0:01:15.600 get the Consumer Price Index report for the month of August, 0:01:15.640 --> 0:01:19.800 and we get more from Bloomberg Market's Live strategist Mary Nicola. 0:01:19.680 --> 0:01:22.480 It was almost up until a labor market report that 0:01:22.520 --> 0:01:25.280 the CPI was dismissed, that labor market was going to 0:01:25.280 --> 0:01:27.360 give us an inclination of what the Fed was going 0:01:27.440 --> 0:01:29.920 to do. And of course now that that's not the case, 0:01:30.400 --> 0:01:32.880 really the onus goes back on CPI. If you get 0:01:32.880 --> 0:01:36.920 a weaker number, then obviously it could precipitate expectations of 0:01:36.959 --> 0:01:40.039 a jumbo rit cut of fifty basis points because of 0:01:40.080 --> 0:01:42.200 the fact that it tells you that the FED should 0:01:42.240 --> 0:01:45.600 no longer be concerned about inflation. However, you get an 0:01:45.640 --> 0:01:48.160 upside surprise, and then it makes the FED a little 0:01:48.160 --> 0:01:51.160 bit more cautious because of the fact that the inflation 0:01:51.280 --> 0:01:53.360 genie is not fully back in the bottle. 0:01:53.680 --> 0:01:57.080 Bloomberg Market's Live strategist Mary Nicola says, a day after 0:01:57.120 --> 0:02:00.680 we get the CPI, investors will get another infla reading 0:02:00.680 --> 0:02:03.160 on Thursday with producer prices. 0:02:02.680 --> 0:02:05.960 For the month of August when Asia karen deflation risk 0:02:06.040 --> 0:02:08.400 is rising in China. We get more on that from 0:02:08.440 --> 0:02:11.880 Bloomberg Daybreak Asia anchor Brian Curtis and Hong Kong. 0:02:11.840 --> 0:02:15.839 China's consumer prices rose less than expected. Last month, it's 0:02:15.880 --> 0:02:19.440 more data showing that households are simply not spending. The 0:02:19.520 --> 0:02:22.359 CPI gained six tenths of a percent from a year earlier, 0:02:22.600 --> 0:02:25.320 compared to a forecast of seven tenths of a percent. 0:02:25.680 --> 0:02:28.480 In the meantime, factory gate price has slid one point 0:02:28.480 --> 0:02:31.519 eight percent from a year ago. Economists had expected a 0:02:31.600 --> 0:02:34.799 drop of one point five percent. Former Central Bank Governor 0:02:34.840 --> 0:02:38.920 E Gung has called on policymakers to fight deflationary pressures 0:02:39.240 --> 0:02:42.360 and do it right now. In Hong Kong. Brian Curtis, 0:02:42.400 --> 0:02:43.680 Bloomberg Radio, All. 0:02:43.680 --> 0:02:46.160 Right, Brian, thank you. Now let's get the latest in 0:02:46.200 --> 0:02:49.560 the presidential race. Kamala Harris and Donald Shrump are getting 0:02:49.560 --> 0:02:52.880 ready for their first and for now only debate tomorrow 0:02:53.000 --> 0:02:55.840 night in Philadelphia, and the race is air tied with 0:02:55.960 --> 0:02:58.799 fifty seven days until the election. The latest New York 0:02:58.840 --> 0:03:01.400 Times Siena College pull has Trump in the lead over 0:03:01.520 --> 0:03:05.760 Harris among registered voters by just one percentage point forty 0:03:05.760 --> 0:03:09.240 eight percent forty seven percent. Nikki Hayley was the last 0:03:09.240 --> 0:03:12.400 Republican to challenge Trump in the primary. She says Harris 0:03:12.720 --> 0:03:13.440 is vulnerable. 0:03:13.480 --> 0:03:17.239 Tomorrow night, you look at Kamala Harrison. It's quite remarkable. 0:03:17.320 --> 0:03:20.280 She never had a debate, she never had a primary, 0:03:20.400 --> 0:03:23.320 she never had anyone vote for her, and they basically 0:03:23.360 --> 0:03:25.200 took her and in forty eight hours they put her 0:03:25.240 --> 0:03:28.119 back out there and she was this whole new candidate. 0:03:28.480 --> 0:03:30.800 And following the debate, Harris plans to travel to key 0:03:30.919 --> 0:03:35.840 battleground states, including North Carolina on Thursday. That state's Democratic governor, 0:03:35.960 --> 0:03:38.680 Roy Cooper says he knows the race is tied. 0:03:39.080 --> 0:03:40.440 There's no question about it. 0:03:40.440 --> 0:03:43.240 It's close here in North Carolina it always is. 0:03:43.760 --> 0:03:46.760 This was Biden Harris's closest loss. 0:03:46.360 --> 0:03:50.400 In twenty twenty, only one point three percent. Roy Cooper 0:03:50.440 --> 0:03:53.680 and Nikki Haley were both guests on CBS's Face the Nation, 0:03:53.720 --> 0:03:57.000 which can be heard Sundays on Bloomberg Radio. Our coverage 0:03:57.040 --> 0:03:59.920 of the ABC News presidential debate begins tomorrow night at 0:04:00.000 --> 0:04:03.000 eight pm Wall Street Time on a special edition of 0:04:03.080 --> 0:04:06.080 Balance of Power on Bloomberg Radio and Television. 0:04:06.440 --> 0:04:09.400 In company News, Karen, it is a big day for Apple. 0:04:09.480 --> 0:04:13.160 The company unveils its iPhone sixteen today. While the new 0:04:13.200 --> 0:04:15.600 iPhone line will be the focus of the product launch, 0:04:16.040 --> 0:04:19.040 its slumping wearable device business is poised to get a 0:04:19.080 --> 0:04:21.400 boost as well. For the first time since the end 0:04:21.400 --> 0:04:24.919 of twenty twenty two, Apple is unveiling major changes to 0:04:24.960 --> 0:04:28.920 the Apple Watch and air Pod earbuds. All three versions 0:04:28.920 --> 0:04:31.920 of the smart watch, the se the Standard series line, 0:04:31.920 --> 0:04:34.719 and the Ultra, will be upgraded, and the two lower 0:04:34.800 --> 0:04:37.440 end air Pods will get the most significant update in 0:04:37.520 --> 0:04:38.360 their history. 0:04:39.040 --> 0:04:41.560 Well Nathan Shares a Boeing up three point four percent 0:04:41.640 --> 0:04:44.840 this morning. The planemaker and its largest union say they've 0:04:44.920 --> 0:04:48.279 hammered out a landmark deal to potentially avoid a strike. 0:04:48.560 --> 0:04:50.520 Begin more from Bloomberg's Doun Krisner. 0:04:50.839 --> 0:04:54.200 The breakthrough came after a marathon marketing session. The current 0:04:54.240 --> 0:04:58.159 contract expires at midnight September twelfth, and a possible strike 0:04:58.279 --> 0:05:01.200 is looming. The deal includes a twenty five percent wage 0:05:01.200 --> 0:05:03.839 increase over four years, as well as a commitment to 0:05:03.880 --> 0:05:07.280 build Boeing's next plane in the Seattle area. There are 0:05:07.320 --> 0:05:11.400 sweeteners if workers accept the accord, and immediate eleven percent 0:05:11.480 --> 0:05:14.200 pay bump, along with a three thousand dollars bonus to 0:05:14.240 --> 0:05:16.679 be paid at the end of the month. Boeing CEO 0:05:16.800 --> 0:05:20.880 Kelly Ortberg has pledged to reset long contentious labor relations, 0:05:21.160 --> 0:05:23.120 but it's too soon to know if workers will go 0:05:23.240 --> 0:05:26.760 along or buck their leadership. In New York, I'm Doug Prisner, 0:05:26.760 --> 0:05:27.559 Bloomberg Radio. 0:05:27.800 --> 0:05:30.279 Thanks Doug. Circle K is trying to keep its takeover 0:05:30.320 --> 0:05:34.760 bid for seven eleven alive. The Canadian owner of Circle K, Kushtard, 0:05:34.839 --> 0:05:38.039 has told Japan's Seven and I Holdings it wants to 0:05:38.080 --> 0:05:42.520 work together on a friendly takeover after the Japanese convenience 0:05:42.520 --> 0:05:47.359 store operator pushed back on Kushtard's initial proposal. Seven and 0:05:47.400 --> 0:05:49.600 I is the operator of seven to eleven shops. It 0:05:49.720 --> 0:05:53.320 rejected Kushtard's prices too low in front with regulatory risk, 0:05:53.640 --> 0:05:56.320 and made clear that price was the issue, not the 0:05:56.360 --> 0:06:00.440 idea of an acquisition itself. A potential deal would create 0:06:00.480 --> 0:06:03.480 a global convenience store behemoth with more than one hundred 0:06:03.480 --> 0:06:07.279 thousand stores. It would represent the biggest ever foreign takeover 0:06:07.400 --> 0:06:09.000 of a Japanese company. 0:06:09.160 --> 0:06:12.560 And Nathan discount retailer Big Losses found for bankruptcy Big 0:06:12.560 --> 0:06:15.080 Losses among a number of troubled retailers that have been 0:06:15.160 --> 0:06:18.280 hurt by a slowdown in home spending. Collins and LL 0:06:18.320 --> 0:06:25.640 Flooring Holdings also filed bankruptcies in recent months. Time now 0:06:25.680 --> 0:06:27.240 for a look at some of the other stories making 0:06:27.279 --> 0:06:29.320 news in New York and around the world. For that, 0:06:29.360 --> 0:06:32.120 we're joined by Bloomberg's John Tucker, John, Good Morning and 0:06:32.120 --> 0:06:32.839 Good Morning, Karen. 0:06:33.080 --> 0:06:36.039 The White House today is taking steps to lower mental 0:06:36.080 --> 0:06:39.039 healthcare costs. We get more of this report from Bloomberg's 0:06:39.080 --> 0:06:39.880 Jeff Bellinger. 0:06:40.279 --> 0:06:43.400 New guidelines seek to ensure that Americans have the same 0:06:43.480 --> 0:06:46.960 access to mental health and substance use benefits that they 0:06:47.000 --> 0:06:51.159 have two physical health benefits. The proposal seeks to build 0:06:51.200 --> 0:06:53.760 on the two thousand and eight Mental Health Parity and 0:06:53.920 --> 0:06:58.279 Addiction Equity Act, which required insurance companies to provide the 0:06:58.320 --> 0:07:02.480 same access to mental and physical treatment when the bill passed, 0:07:02.480 --> 0:07:06.240 it did not require some non federal government health plans, 0:07:06.320 --> 0:07:09.560 like those offered to state and local government employees, to 0:07:09.680 --> 0:07:14.080 comply with its requirements. Jeff Bellinger, Bloomberg Radio. 0:07:14.240 --> 0:07:18.160 Republican lawmakers accused the Biden administration of lying to Americans 0:07:18.520 --> 0:07:21.440 and sacrificing the safety of US soldiers during the twenty 0:07:21.520 --> 0:07:25.320 twenty one Afghanistan withdrawal. The accusation comes in a report 0:07:25.360 --> 0:07:28.800 that seeks to implicate Vice President Kamala Harris before the election. 0:07:29.400 --> 0:07:32.760 Is as President Joe Biden's team misled and in some 0:07:32.920 --> 0:07:36.640 instances directly lied to the American people at every stage 0:07:36.760 --> 0:07:40.520 of the Afghanistan withdrawal a gun and killed three Israelis 0:07:40.520 --> 0:07:43.360 at a terminal on Jordan's border with the Israeli occupied 0:07:43.400 --> 0:07:46.440 West Bank on Sunday. It's the first such incident since 0:07:46.480 --> 0:07:50.000 the Gods of War began in October. Israel's army sent 0:07:50.080 --> 0:07:54.600 the gunman accused access the allenby Pridge Crossing also known 0:07:54.600 --> 0:07:58.320 as the King Hussain Bridge from the Jordanian side, fired 0:07:58.360 --> 0:08:02.320 shots before he was killed by Israeli guards. Jerry selection 0:08:02.400 --> 0:08:04.240 is set to begin today in the federal trial of 0:08:04.280 --> 0:08:07.920 three former Memphis police officers charged with violating the civil 0:08:08.000 --> 0:08:10.840 rights of Tyree Nichols. He's the twenty nine year old 0:08:10.840 --> 0:08:14.240 man whose fatal beating last year was caught on police cameras, 0:08:14.480 --> 0:08:19.240 also triggering protests and calls for police reform. A storm 0:08:19.280 --> 0:08:22.280 system in the Gulf of Mexico forecast to strengthen into 0:08:22.360 --> 0:08:26.000 a hurricane early this week, bringing heavy rain, damaging winds, 0:08:26.040 --> 0:08:29.760 and potentially life threatening storm surges departs of the Texas 0:08:29.800 --> 0:08:33.280 and Louisiana coastlines. If it continues to strengthen, it'll be 0:08:33.320 --> 0:08:36.640 named tropical storm France scene and a good Samaritan with 0:08:36.679 --> 0:08:39.400 a familiar name helped to save a choking man at 0:08:39.400 --> 0:08:43.360 the Hampton Beach Lobster roll eating competition in New Hampshire Sunday. 0:08:43.840 --> 0:08:46.640 Governor Chris Sanunu was at the event. He says he 0:08:46.760 --> 0:08:49.800 was the first to notice a contestant having trouble breathing. 0:08:50.080 --> 0:08:53.560 The Governor performed the Heimlich maneuver before first responders took 0:08:53.600 --> 0:08:56.439 over and helped free the stuck piece of lobster. 0:08:57.120 --> 0:08:59.600 She went right back to the contest for who would 0:08:59.600 --> 0:09:03.040 I couldn't believe he had another seven lobster after that, 0:09:03.240 --> 0:09:04.320 right down the gullet. 0:09:04.600 --> 0:09:09.240 Governor Snuno speaking there to wm R Global News twenty 0:09:09.280 --> 0:09:11.840 four hours a day, whatever you want it with Bloomberg News. Now, 0:09:12.080 --> 0:09:14.640 I'm John Tucker and this is Bloomberg Nathan and. 0:09:14.600 --> 0:09:23.720 Karen another seven lobster roswell, John, thank you time now 0:09:23.760 --> 0:09:26.360 for the Bloomberg Sports Update with John stash Hour. 0:09:26.480 --> 0:09:28.000 John, Good morning, Good morning Karen. 0:09:28.040 --> 0:09:31.280 It was the Giants one hundred season opener and one 0:09:31.320 --> 0:09:33.240 of their worst. They left the Vikings score in the 0:09:33.240 --> 0:09:35.880 first quarter. They game a ninety nine yard drive in 0:09:35.920 --> 0:09:38.600 the second. Minnesota scored again early in the third. One later, 0:09:38.679 --> 0:09:41.559 the Giants had the ball deep in their own territory 0:09:41.960 --> 0:09:43.360 Spike's Lee twenty one to six. 0:09:43.480 --> 0:09:49.280 Jones holy threw it to ben Gekle touchdown. That's book 0:09:49.400 --> 0:09:54.880 four touchdown in Andrew ben Gikle's career, and he read 0:09:55.040 --> 0:09:58.360 Daniel Jones like a book, and that book had a 0:09:58.400 --> 0:10:03.040 happy ending seven to six Minnesota. 0:10:02.200 --> 0:10:04.640 On k Fan twenty eight six the final. Many of 0:10:04.640 --> 0:10:06.880 the fans headed for the exit early, and the ones 0:10:06.920 --> 0:10:09.640 that stuck around spend much of their time booing the 0:10:09.679 --> 0:10:12.960 Giants effort, especially in left offensively under one hundred yards 0:10:12.960 --> 0:10:16.160 in the first half. Daniel Jones severely outplayed by the 0:10:16.240 --> 0:10:18.920 Viking Sam Darnold, the x jeed, who completed his first 0:10:18.960 --> 0:10:22.280 twelve passes two for touchdown. Jones at his last two 0:10:22.360 --> 0:10:26.360 seasons has only two TD passes, eight interceptions, and only 0:10:26.440 --> 0:10:29.480 one victory the Patriots and a surprise one for new 0:10:29.480 --> 0:10:31.599 coach to Rod Meos sixteen to ten at Cincinnati. The 0:10:31.640 --> 0:10:35.120 Commanders lost at Tampa Bay thirty seven to twenty. Dallas 0:10:35.120 --> 0:10:38.680 won thirty three seventeen at Cleveland after Dak Prescott got 0:10:38.679 --> 0:10:41.840 a new sixty million dollars a year contract Miami on 0:10:41.880 --> 0:10:44.800 a last second field goal by Jacksonville Tyreek Hill had 0:10:44.800 --> 0:10:48.280 an eighty yard catch after getting stopped for speeding and 0:10:48.320 --> 0:10:51.720 getting handcuffed on his way to the stadium. Last night overtime, 0:10:51.800 --> 0:10:54.360 Detroit beat the Rams twenty six to twenty one. Game 0:10:54.440 --> 0:10:57.160 left in Week one that's the Jets and forty nine 0:10:57.240 --> 0:11:00.000 Ers tonight ed Reigley Cubzel. The four Heads had only 0:11:00.120 --> 0:11:02.160 seven hits of the three game series, where they scored twice. 0:11:02.160 --> 0:11:04.600 In the first Name North Garrett Cole topped the Yankees 0:11:04.600 --> 0:11:06.360 two to one, a game with no scoring after the 0:11:06.360 --> 0:11:08.880 top of the second. The Mets nine game winning streak 0:11:08.960 --> 0:11:10.760 end in Cincinnati scored two of the ninth to win 0:11:10.800 --> 0:11:13.880 three to one. US Open final. Yannick Sinner showed why 0:11:13.920 --> 0:11:16.560 he's ranked number one, straight sets over Taylor Fritz. Still, 0:11:16.600 --> 0:11:19.000 no American man has won of Grand Slam in twenty 0:11:19.000 --> 0:11:22.040 one years. John Stashiellward, Bloomberg Sports, Karen Nathan. 0:11:24.080 --> 0:11:28.200 Coast to Coast on Bloomberg Radio nationwide on Sirius XM, 0:11:28.280 --> 0:11:31.160 and around the world on Bloomberg dot Com and the 0:11:31.240 --> 0:11:32.440 Bloomberg Business app. 0:11:32.679 --> 0:11:37.240 This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Treasury 0:11:37.240 --> 0:11:40.600 Secretary Janet Yellen is reiterating her view that the US 0:11:40.720 --> 0:11:44.880 economy has reached a soft landing per comments followed last 0:11:44.880 --> 0:11:48.160 week's stock sell off in months of soft jobs data. 0:11:48.640 --> 0:11:51.520 In an interview with Bloomberg's David Gura at the Texas 0:11:51.520 --> 0:11:55.360 Tribune Festival in Austin, Yellen also underscored the importance of 0:11:55.440 --> 0:11:57.800 US engagement with China. We now want to bring you 0:11:57.840 --> 0:11:58.960 part of their discussion. 0:11:59.440 --> 0:12:03.359 But when I look at it, the economy broadly speaking, 0:12:03.559 --> 0:12:08.080 is very strong growth deep into a recovery. With the 0:12:08.160 --> 0:12:12.600 economy operating it basically at full employment. We're still seeing 0:12:12.679 --> 0:12:16.719 three percent growth roughly over the last year, and it 0:12:16.800 --> 0:12:26.840 continues consumer spending, investment, spending, solid, inflation coming down substantially, 0:12:27.520 --> 0:12:31.720 and I believe headed back to the FIDS two percent goal. 0:12:32.360 --> 0:12:37.239 And what I describe as a strong, solid labor market. Clearly, 0:12:37.760 --> 0:12:42.439 the pace of job creation has gone down, and that's 0:12:42.720 --> 0:12:48.120 something we should expect. The unemployment rate has moved up 0:12:48.200 --> 0:12:51.360 somewhat off it's very low level of I think it 0:12:51.400 --> 0:12:56.559 got down to three point four percent, but it's not 0:12:56.640 --> 0:12:59.600 common in the United States to have unemployment rates in 0:12:59.640 --> 0:13:04.959 the four and it's what I think of is a 0:13:05.320 --> 0:13:06.599 employment economy. 0:13:06.800 --> 0:13:08.679 You say, many people would call that a soft landing. 0:13:08.720 --> 0:13:11.360 So that is the FED being able to get high 0:13:11.360 --> 0:13:14.600 inflation under control without triggering a deep downturn or recession. 0:13:14.640 --> 0:13:15.080 That's right. 0:13:15.240 --> 0:13:17.080 Many people would say that. Do you say that as well? 0:13:17.080 --> 0:13:18.959 Do you think that it's Are you fairly confident that 0:13:19.000 --> 0:13:19.920 we're going to get done? 0:13:20.040 --> 0:13:23.000 I think what we're seeing now is consistent with that. 0:13:23.520 --> 0:13:27.400 While there are risks, it really has been amazing to 0:13:27.480 --> 0:13:31.800 be able to get inflation down as meaningfully as we have. 0:13:32.280 --> 0:13:36.200 And I'd say also, wages are going up at a 0:13:36.240 --> 0:13:42.960 decent clip, and real wages adjusted for inflation are rising, 0:13:43.480 --> 0:13:47.719 and they well, a lot of especially low income households, 0:13:48.000 --> 0:13:51.960 are under stress. Aspects of the cost of living for 0:13:52.080 --> 0:13:58.320 them are genuinely challenging, and it's our administration's top priority 0:13:58.720 --> 0:14:02.520 to try to address that. It's still true that wages 0:14:02.600 --> 0:14:07.120 have gone up since before the pandemic in real or 0:14:07.120 --> 0:14:13.439 inflation adjusted terms, and continuing to rise at a decent basic. 0:14:13.840 --> 0:14:15.960 What is your secret as you think of embracing this 0:14:16.080 --> 0:14:18.959 role as a diplomat? What has made you particularly i'll 0:14:18.960 --> 0:14:21.080 say particularly good or have the. 0:14:21.000 --> 0:14:24.520 Facility for well, well, thank you for the compliment. I've 0:14:24.640 --> 0:14:29.160 seen this sort of diplomatic initiative, both with China and 0:14:29.240 --> 0:14:34.320 with other countries as really critical because we need to 0:14:34.400 --> 0:14:39.640 work together collaboratively to solve every global problem that we face, 0:14:40.160 --> 0:14:46.320 from climate change to Russia's aggression, to issues that we 0:14:46.440 --> 0:14:51.480 have with China. And during the previous administration, I'm sorry 0:14:51.520 --> 0:14:56.320 to say, our alliance is fred and you know, it 0:14:56.400 --> 0:15:02.120 was America first, and that should really never be America alone, 0:15:02.480 --> 0:15:07.800 and it was necessary to rebuild alliances to work with 0:15:07.920 --> 0:15:12.040 allies around the world. And that's been a broad that's 0:15:12.080 --> 0:15:15.960 been a broad effort, and I think we really have succeeded. 0:15:16.400 --> 0:15:23.440 And perhaps we'll talk about this, but when Russia attacked Ukraine, 0:15:23.720 --> 0:15:27.280 we had an alliance that came together in a matter 0:15:27.400 --> 0:15:33.760 of a day or two to strongly counter what Russia 0:15:33.960 --> 0:15:39.360 was doing. We've stayed together and we've worked together to 0:15:39.560 --> 0:15:45.400 address and this is broad effort G twenty or larger 0:15:46.000 --> 0:15:52.600 to address climate change and problems afflicting poor countries around 0:15:52.600 --> 0:15:58.480 the world, to address pandemics, created a pandemic fund knowing 0:15:59.440 --> 0:16:03.600 the properly be another pandemic unfortunately, and we need to 0:16:03.640 --> 0:16:07.560 be better prepared than we were for COVID. So on 0:16:07.680 --> 0:16:12.560 many different fronts, we've tried to rebuild alliances, and with 0:16:12.640 --> 0:16:19.000 respect to China, relations had really deteriorated during the pandemic 0:16:19.560 --> 0:16:22.640 and we went for a period of close to two 0:16:22.720 --> 0:16:31.320 years without any meaningful senior level contact between US and Chinese, 0:16:32.200 --> 0:16:35.960 and that was really a very dangerous state of affairs. 0:16:36.760 --> 0:16:42.040 President Biden met with President she In Bali. I was 0:16:42.080 --> 0:16:45.960 at that meeting, and they agreed that it was important 0:16:46.000 --> 0:16:48.280 to re establish relationships. 0:16:49.240 --> 0:16:52.400 And that was the Secretary of the US Treasury Janet Yellen, 0:16:52.480 --> 0:16:55.120 speaking with Bloomberg's David Gera. You can listen to their 0:16:55.360 --> 0:16:58.840 entire interview on the Bloomberg Talks podcast. Subscribed to hear 0:16:58.920 --> 0:17:03.040 all our high profile conversations on Apple, Spotify, or anywhere 0:17:03.040 --> 0:17:05.879 else you get your podcasts. And David is here with 0:17:06.000 --> 0:17:09.119 us now for more on his conversation with the US 0:17:09.160 --> 0:17:13.520 Treasury Secretary. David, good morning, thanks for being here. Wide 0:17:13.640 --> 0:17:18.320 ranging discussion, but a lot of focus on the Treasury 0:17:18.359 --> 0:17:23.240 secretary saying that a soft landing has been achieved even 0:17:23.320 --> 0:17:26.640 with job growth slowing. How does she square that circle? 0:17:27.359 --> 0:17:29.560 Yeah, she said in that bit of tape that you played, 0:17:29.560 --> 0:17:31.520 and we had our conversation a day after those jobs 0:17:31.600 --> 0:17:34.080 numbers came out. She feels very confident that we're getting 0:17:34.119 --> 0:17:36.679 back to a level that would be considered more normal 0:17:37.040 --> 0:17:40.240 in regular times. And all the while we did talk 0:17:40.240 --> 0:17:42.600 about the trend that we've seen over the course of 0:17:42.640 --> 0:17:44.000 the year. So obviously, if you look at the three 0:17:44.000 --> 0:17:46.760 month average of what we've seen, it is dramatically lower 0:17:46.760 --> 0:17:48.639 in those non farm payrolls than what we had at 0:17:48.680 --> 0:17:51.120 the beginning of this year. She acknowledges that I asked 0:17:51.119 --> 0:17:52.960 her if there is any chance or if she sees 0:17:53.000 --> 0:17:54.840 any risk of us getting a negative print in those 0:17:54.920 --> 0:17:56.720 numbers by the end of the year, and she didn't 0:17:56.720 --> 0:17:59.680 bite it that question. But she's a labor economist by training, 0:17:59.680 --> 0:18:02.560 of course, Nathan, this is her bread and butter. And 0:18:02.600 --> 0:18:04.520 in a conversation that we had there on stage and 0:18:04.560 --> 0:18:06.440 the day before when I accompanied her on a tour 0:18:06.480 --> 0:18:09.480 of a big IRS facility in Austin, right after those 0:18:09.560 --> 0:18:12.359 numbers came out, she continued to express confidence in the 0:18:12.400 --> 0:18:14.480 health or the strength of the labor market. So she 0:18:14.840 --> 0:18:18.320 acknowledges that there are those who are fearful that we're headed, 0:18:18.760 --> 0:18:21.080 perhaps to her higher unemployment, but at this point feels 0:18:21.119 --> 0:18:23.159 confident that things are indeed going in the right direction. 0:18:23.560 --> 0:18:27.000 You have to think that the Treasury Secretary was cognizant 0:18:27.160 --> 0:18:33.200 of the selloff happening after those numbers came out, and 0:18:33.880 --> 0:18:38.480 perhaps trying to soothe the markets to some extent. Was 0:18:38.480 --> 0:18:39.720 there some of that involved. 0:18:39.720 --> 0:18:42.879 Do you think she was projecting calm and she speaks 0:18:42.880 --> 0:18:45.879 in a very matter of fact and careful way. You 0:18:45.960 --> 0:18:48.320 heard that in that tape as well. Another question that 0:18:48.359 --> 0:18:50.000 I asked her over the course of that hour long 0:18:50.040 --> 0:18:53.159 conversation is from her vantage, does she see pockets of 0:18:53.240 --> 0:18:55.600 risk elsewhere in the financial system? And she brought up 0:18:55.640 --> 0:18:58.920 money market funds, which she, under her stewardship of the 0:18:58.920 --> 0:19:03.600 Financial of ESSOK, the kind of overarching financial regulation board 0:19:03.840 --> 0:19:06.720 has worked to tackle. She talked about cybersecurity, so she 0:19:06.760 --> 0:19:08.800 said she saw no flashing red lights when she looks 0:19:08.800 --> 0:19:11.280 at the financial system broadly. But I think you're right, Nathan. 0:19:11.280 --> 0:19:14.159 I think she was actively trying to assure the markets there. 0:19:14.400 --> 0:19:17.480 Now, although interesting to hear say no flashing lights a 0:19:17.560 --> 0:19:20.000 day after we did see that big sell off, the 0:19:20.040 --> 0:19:23.720 worst sell off since the last time we saw flashing 0:19:23.760 --> 0:19:26.240 lights in the financial system around the time of the 0:19:26.280 --> 0:19:27.600 regional bank crisis. 0:19:27.920 --> 0:19:30.080 We talked about that as well. And there are a 0:19:30.080 --> 0:19:32.200 couple of moments over the course of her tenure when 0:19:32.600 --> 0:19:36.240 she and her colleagues at Treasury, colleagues around the world 0:19:36.240 --> 0:19:38.240 have had to get together and deal with crises. Certainly 0:19:38.280 --> 0:19:39.720 the war in Ukraine is one of them. But she 0:19:39.760 --> 0:19:42.840 did talk about that kind of compressed moment when we 0:19:42.880 --> 0:19:45.360 saw the collapse of First Republic. There was so much 0:19:45.400 --> 0:19:47.520 concern about contagion and they had to get together, so 0:19:47.680 --> 0:19:50.120 it was safe. I didn't introduce the subject of those 0:19:50.119 --> 0:19:50.720 failed banks. 0:19:50.760 --> 0:19:51.000 She did. 0:19:51.080 --> 0:19:52.919 It's safe to assume it still feels quite raw for 0:19:53.000 --> 0:19:55.640 her and is kind of a signal moment in her career. 0:19:55.640 --> 0:19:57.680 I mean, it was so wonderful to have so much 0:19:57.680 --> 0:20:00.679 time with her. She I kind of off handedly asked her, 0:20:00.720 --> 0:20:03.280 if there's any chance that she remains in office after 0:20:03.440 --> 0:20:05.840 January twenty fifth, If you know Kamala Harris would be reelected, 0:20:05.880 --> 0:20:07.879 would she stay in the job. She didn't bat that 0:20:07.920 --> 0:20:10.520 away entirely, but made it seem like she probably she 0:20:10.560 --> 0:20:12.399 probably would be done. But it was a moment to 0:20:12.400 --> 0:20:14.719 both look ahead to what she hopes to accomplish here 0:20:14.720 --> 0:20:16.879 in these next few months presumably of her tenure, her 0:20:16.880 --> 0:20:19.080 final months of her tenure, but also back on some 0:20:19.119 --> 0:20:22.000 of those crisis moments, including what happened with those regional banks. 0:20:22.200 --> 0:20:23.720 Yeah, I did want to ask you if it felt 0:20:23.760 --> 0:20:27.160 more like an exit interview to speak with Treasury Secretary 0:20:27.240 --> 0:20:31.240 Yellen at this point, or whether she is thinking about 0:20:31.480 --> 0:20:34.760 perhaps staying on a little bit longer. Is she running 0:20:34.800 --> 0:20:37.640 through the tape, or is this sort of the end 0:20:37.680 --> 0:20:37.919 for her? 0:20:38.000 --> 0:20:39.760 She made it seem like she was. I mean, the 0:20:39.760 --> 0:20:41.600 interview was an hour and we had two or three 0:20:41.600 --> 0:20:42.960 minutes left, and I said, you have this to do. 0:20:43.040 --> 0:20:45.000 List what's on and give me a couple of things, 0:20:45.040 --> 0:20:47.159 and she gave quite a long answer of things that 0:20:47.200 --> 0:20:49.440 she hopes to accomplish. But it gave me more perspective 0:20:49.440 --> 0:20:51.199 on just the breadth of that job, what you have 0:20:51.240 --> 0:20:53.440 to do when you are the Treasury Secretary. And it's 0:20:53.440 --> 0:20:55.960 something that she expressed to me she's had to learn 0:20:56.280 --> 0:20:59.080 along the way. She is obviously incredibly accomplished and has 0:20:59.080 --> 0:21:01.280 had all of these key jobs, of course, the chief 0:21:01.320 --> 0:21:04.560 Economic Advisor to Preston Clinton, Federal Reserve Vice Chair and 0:21:04.640 --> 0:21:06.639 chair head of the San Francisco Federal Reserve Bank, and 0:21:06.640 --> 0:21:09.520 now the Treasury secretary, all of these new and novel 0:21:10.119 --> 0:21:12.960 she had trained academic economists who has really embraced and 0:21:13.359 --> 0:21:16.240 found her way in each of these roles. She did 0:21:16.240 --> 0:21:17.800 not make it seem like that she'll be resting on 0:21:17.800 --> 0:21:19.520 her laurels and in any sense here in the next 0:21:19.520 --> 0:21:20.000 few months. 0:21:20.160 --> 0:21:21.600 Yeah, and certainly I know you're not going to be 0:21:21.600 --> 0:21:25.280 resting heading right over to Philadelphia for tomorrow night's first 0:21:25.320 --> 0:21:29.359 debate and perhaps only debate between Vice President Harris and 0:21:29.720 --> 0:21:33.680 former President Trump. Does this conversation with Secretary Yellen inform 0:21:34.119 --> 0:21:36.720 what you're going to be thinking about as we head 0:21:36.760 --> 0:21:38.480 into this encounter tomorrow, Knight. 0:21:38.560 --> 0:21:41.720 Yeah, she Janet Yellen stuiously avoids talking about politics, but 0:21:41.760 --> 0:21:44.000 did talk a lot about the Biden administration, Biden Harris 0:21:44.040 --> 0:21:46.800 administration's economic priorities. And I'm very interested in Nathan and 0:21:46.880 --> 0:21:49.800 hearing how much concrete policy comes up over the course 0:21:49.840 --> 0:21:52.119 of this debate. But as you point out, this is 0:21:52.160 --> 0:21:54.040 on the calendar the only time that these two candidates 0:21:54.040 --> 0:21:56.240 are supposed to meet face to face, and quite deliciously, 0:21:56.240 --> 0:21:58.480