1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:09,720 --> 00:00:12,120 Speaker 2: This is the Big Big Day Bacate podcast. Good morning, 3 00:00:12,160 --> 00:00:15,200 Speaker 2: It's Thursday, the eleventh of December. I'm Caroline Hepca in 4 00:00:15,240 --> 00:00:16,079 Speaker 2: London and. 5 00:00:16,040 --> 00:00:19,360 Speaker 3: I'm Stephen Caroline Brussels. Coming up today, Bloomberg reports the 6 00:00:19,400 --> 00:00:22,400 Speaker 3: United States has seized a sanctioned oil tanker off the 7 00:00:22,480 --> 00:00:26,840 Speaker 3: coast of Venezuela in a sharp escalation against President Nicholas Maduro. 8 00:00:27,120 --> 00:00:30,720 Speaker 2: The US Federal Reserve cuts interest rates, but what emerges 9 00:00:30,880 --> 00:00:34,280 Speaker 2: is a divided FED and so called silent dissenters. 10 00:00:34,680 --> 00:00:38,640 Speaker 3: And why Poland's coal mining industry is disappearing more quickly 11 00:00:38,680 --> 00:00:41,800 Speaker 3: than expected, and what it means for Europe's holdout. 12 00:00:42,440 --> 00:00:44,440 Speaker 2: Let's start with a roundup of our top stories. 13 00:00:44,960 --> 00:00:47,560 Speaker 3: The United States has seized a sanctioned oil tanker off 14 00:00:47,560 --> 00:00:50,519 Speaker 3: the coast of Venezuela, in a sharp escalation of tensions 15 00:00:50,560 --> 00:00:53,360 Speaker 3: between the countries. Bloomberger was first to report the move, 16 00:00:53,440 --> 00:00:55,960 Speaker 3: which was later confirmed by President Donald Trump. 17 00:00:56,600 --> 00:01:01,840 Speaker 4: As you probably know if you sees a anchor on 18 00:01:02,000 --> 00:01:07,440 Speaker 4: the coast of venezuela large tanker at large largest one 19 00:01:07,480 --> 00:01:11,840 Speaker 4: ever seisday and other things are happening. 20 00:01:12,319 --> 00:01:15,480 Speaker 3: The US President has been increasing military pressure on Venezuela 21 00:01:15,520 --> 00:01:19,000 Speaker 3: in recent weeks, conducting more than twenty strikes against alleged 22 00:01:19,080 --> 00:01:23,680 Speaker 3: drug trafficking vessels and threatening strikes on its territory. Venezuela 23 00:01:23,720 --> 00:01:27,000 Speaker 3: calls the seizure a blatant theft and an act of piracy. 24 00:01:27,280 --> 00:01:29,400 Speaker 3: The US action may make it harder for the country 25 00:01:29,400 --> 00:01:32,479 Speaker 3: to export its crude oil, most of which goes to China. 26 00:01:32,720 --> 00:01:36,319 Speaker 2: Ukraine has sent a revised peace plan to Washington. As 27 00:01:36,400 --> 00:01:39,520 Speaker 2: President Trump held a call with the leaders of France, Germany, 28 00:01:39,560 --> 00:01:43,280 Speaker 2: and the UK. The European leaders described the negotiations as 29 00:01:43,360 --> 00:01:47,319 Speaker 2: being at a critical moment. Speaking in Kiev, President Zelinski 30 00:01:47,400 --> 00:01:51,560 Speaker 2: says the world, including the Kremlin's allies, can force Russia 31 00:01:51,600 --> 00:01:52,680 Speaker 2: to end the war. 32 00:01:54,080 --> 00:01:54,400 Speaker 5: Today. 33 00:01:54,480 --> 00:01:57,120 Speaker 6: I also received a report from the head of Ukraine's 34 00:01:57,120 --> 00:02:01,240 Speaker 6: foreign intelligence service, including on the enemy's Econo situation and 35 00:02:01,320 --> 00:02:05,560 Speaker 6: Russia's growing dependence on China. Throughout Russian history, no one 36 00:02:05,560 --> 00:02:08,600 Speaker 6: has ever surrendered sovereignties so much to China or any 37 00:02:08,600 --> 00:02:12,280 Speaker 6: other major power, and it is astonishing how much Russian 38 00:02:12,320 --> 00:02:15,760 Speaker 6: President Vladimir Putin is paying just to avoid ending this 39 00:02:15,919 --> 00:02:16,720 Speaker 6: ward to Aliah. 40 00:02:17,040 --> 00:02:21,080 Speaker 2: President Zelinski speaking, there are a translator following weeks of 41 00:02:21,200 --> 00:02:24,880 Speaker 2: talks that have produced a document more palatable to Kiev 42 00:02:25,200 --> 00:02:28,359 Speaker 2: than the initial twenty eight point plan from the US, 43 00:02:28,800 --> 00:02:33,600 Speaker 2: which proposed major concessions from Ukraine. However, several sticking points 44 00:02:33,639 --> 00:02:37,680 Speaker 2: remain over territory and security guarantees. It's also not clear 45 00:02:37,680 --> 00:02:40,840 Speaker 2: if Russian President Vladimir Putin is willing to agree to 46 00:02:40,919 --> 00:02:42,280 Speaker 2: a deal to end the fighting. 47 00:02:42,760 --> 00:02:45,800 Speaker 3: Jerome Powell topped up the US economy's resilience as the 48 00:02:45,800 --> 00:02:49,600 Speaker 3: Federal Reserve cutt interest rates, but policymakers are increasingly split 49 00:02:49,680 --> 00:02:52,400 Speaker 3: on the path ahead. Rate setter has voted nine to 50 00:02:52,480 --> 00:02:54,880 Speaker 3: three for a quarter point cost taking the base rate 51 00:02:54,919 --> 00:02:57,680 Speaker 3: to arrange of three point five to three point seventy 52 00:02:57,720 --> 00:03:01,000 Speaker 3: five percent. Virchow jerown Pal says it were a close call. 53 00:03:01,160 --> 00:03:03,240 Speaker 7: In support of our goals in light of the balance 54 00:03:03,480 --> 00:03:07,200 Speaker 7: of risks to employment and inflation. Today, the Federal Open 55 00:03:07,240 --> 00:03:10,760 Speaker 7: Market Committee decided to lower our policy interest rate by 56 00:03:10,760 --> 00:03:13,960 Speaker 7: a quarter percentage point. As a separate matter, we also 57 00:03:14,000 --> 00:03:18,360 Speaker 7: decided to initiate purchases of shorter term treasure securities solely 58 00:03:18,400 --> 00:03:21,160 Speaker 7: for the purpose of maintaining an ample supplier of reserves 59 00:03:21,240 --> 00:03:25,320 Speaker 7: over time, thus supporting effective control of our policy rate. 60 00:03:25,880 --> 00:03:28,959 Speaker 3: The FED chair is trying to balance persistently high inflation 61 00:03:29,160 --> 00:03:33,160 Speaker 3: with a sluggish threat to unemployment. The results marks the 62 00:03:33,160 --> 00:03:36,560 Speaker 3: first time since twenty nineteen that three officials voted against 63 00:03:36,560 --> 00:03:39,160 Speaker 3: a policy decision which dessends on both ends of the 64 00:03:39,160 --> 00:03:43,080 Speaker 3: policy spectrum. Investors reeled in their expectations for rate cuts 65 00:03:43,120 --> 00:03:44,560 Speaker 3: next year to just two. 66 00:03:45,400 --> 00:03:48,960 Speaker 2: Oracle shares fell more than ten percent in extended trading 67 00:03:49,000 --> 00:03:52,440 Speaker 2: after reporting a jump in spending on AI data centers 68 00:03:52,440 --> 00:03:56,040 Speaker 2: and other equipment. It's a sign that rising expenses are 69 00:03:56,120 --> 00:04:00,400 Speaker 2: taking longer to translate into cloud revenue that investors will like. 70 00:04:00,640 --> 00:04:05,000 Speaker 2: Oracle's major cloud customers include open Ai, Byte, Dance, and Meta. 71 00:04:05,120 --> 00:04:07,720 Speaker 2: Cloud sales increased to seven point nine to eight billion 72 00:04:07,760 --> 00:04:11,080 Speaker 2: dollars in the second quarter, while revenue in the company's 73 00:04:11,080 --> 00:04:14,640 Speaker 2: closely washed infrastructure business gained sixty eight percent to four 74 00:04:14,680 --> 00:04:18,760 Speaker 2: spot zero eight billion dollars. Both numbers, though felt short 75 00:04:18,800 --> 00:04:20,440 Speaker 2: of analyst estimates. 76 00:04:20,560 --> 00:04:23,640 Speaker 3: And as date, agents have warned that London is experiencing 77 00:04:23,640 --> 00:04:26,600 Speaker 3: the most widespread decline in house prices in the UK. 78 00:04:26,880 --> 00:04:29,640 Speaker 3: The Royal Institution of Chartered Surveyors that its gauge of 79 00:04:29,680 --> 00:04:32,200 Speaker 3: London property values dropped to its lowest in more than 80 00:04:32,240 --> 00:04:32,920 Speaker 3: two years. 81 00:04:33,160 --> 00:04:33,680 Speaker 1: Bloombrooks. 82 00:04:33,680 --> 00:04:34,839 Speaker 3: Freddie Filston has more. 83 00:04:35,520 --> 00:04:38,920 Speaker 8: London is bearing the brunt of Labour's new tax on 84 00:04:39,080 --> 00:04:43,840 Speaker 8: high value homes. The so called mansion tax disproportionately affects 85 00:04:43,880 --> 00:04:46,880 Speaker 8: the capital, which is home to nearly sixty percent of 86 00:04:46,960 --> 00:04:50,760 Speaker 8: all properties over two million pounds. It's delivered a fresh 87 00:04:50,760 --> 00:04:54,120 Speaker 8: blow to a market already under pressure from stamp duty 88 00:04:54,200 --> 00:04:58,640 Speaker 8: hikes and the departure of wealthy foreigners. However, activity could 89 00:04:58,720 --> 00:05:02,320 Speaker 8: pick up further down the line. The surveyor's indicator for 90 00:05:02,440 --> 00:05:06,320 Speaker 8: sales over the next twelve months improved in November, posting 91 00:05:06,360 --> 00:05:12,000 Speaker 8: its best reading since May. In London, Freddie Fulston, Bloomberg Radio. 92 00:05:12,080 --> 00:05:14,480 Speaker 2: And those are our top stories for you this morning. 93 00:05:14,600 --> 00:05:18,480 Speaker 2: Now after the US Federal Reserve ver eate cut, this morning, 94 00:05:18,480 --> 00:05:20,480 Speaker 2: you've got ten year US Treasury yeals down two and 95 00:05:20,480 --> 00:05:22,880 Speaker 2: a half basis points at four point one two percent. 96 00:05:23,600 --> 00:05:26,200 Speaker 2: But we do have stock futures deeply in the red. 97 00:05:26,240 --> 00:05:28,479 Speaker 2: Now's that future is dropping more than one percent today 98 00:05:28,520 --> 00:05:31,039 Speaker 2: after the dropping Oracle share price. S and P five 99 00:05:31,120 --> 00:05:35,920 Speaker 2: hundred eminees also weaker along with European stock futures. This morning. 100 00:05:36,400 --> 00:05:39,040 Speaker 2: Looking at Asia, the MSCI ASH Pacific Index down by 101 00:05:39,040 --> 00:05:41,719 Speaker 2: six tenths of one percent. You have declines for oil 102 00:05:41,760 --> 00:05:45,400 Speaker 2: prices breakthrough down four tenths this morning, sixty one dollars 103 00:05:45,480 --> 00:05:49,120 Speaker 2: ninety eight and Bitcoin retreating down two point three percent 104 00:05:49,160 --> 00:05:52,040 Speaker 2: this morning. Gold is also dropping half of one percent 105 00:05:52,120 --> 00:05:54,920 Speaker 2: right now, as the Bloomberg Dollar Spot Index is a 106 00:05:55,000 --> 00:05:58,240 Speaker 2: touch firm of this hour. Those are the markets in. 107 00:05:58,200 --> 00:06:01,040 Speaker 3: A moment, more on the escalation between the US and Venezuela. 108 00:06:01,080 --> 00:06:03,719 Speaker 3: Plus we'll have analysis of the FED decision and bring 109 00:06:03,760 --> 00:06:06,920 Speaker 3: you a story on how Poland's coal industry is adapting 110 00:06:06,960 --> 00:06:09,920 Speaker 3: to the green energy transition. But another story we've been 111 00:06:09,960 --> 00:06:13,000 Speaker 3: reading this morning. If you didn't think that Guinness fever 112 00:06:13,160 --> 00:06:16,279 Speaker 3: could get any bigger, Diagio is now opening a new 113 00:06:16,839 --> 00:06:19,919 Speaker 3: Guinness themed attraction in London to cash in on the 114 00:06:19,960 --> 00:06:22,320 Speaker 3: surge of popularity the stat has seen. So it's a 115 00:06:22,360 --> 00:06:25,600 Speaker 3: new site in Covent Garden, going to feature a microbrewery, restaurants, 116 00:06:25,640 --> 00:06:29,039 Speaker 3: a gift shop and bars. Of course, it's now going 117 00:06:29,080 --> 00:06:32,159 Speaker 3: to be adding to the global now range of Guinness 118 00:06:32,240 --> 00:06:34,680 Speaker 3: theme tourist attractions of course in James's Gate and Dublin 119 00:06:34,920 --> 00:06:37,960 Speaker 3: and the Guinness Storehouse and where Guinness is is brewed, 120 00:06:38,160 --> 00:06:40,920 Speaker 3: but also micro brewer is they have in Baltimore in Chicago. 121 00:06:41,040 --> 00:06:43,760 Speaker 3: They won't be actually brewing Guinness in London there, they'll 122 00:06:43,760 --> 00:06:45,880 Speaker 3: just be selling us, so they'll bring other kinds of beer. 123 00:06:46,200 --> 00:06:49,360 Speaker 2: It's absolutely enormous. Partly this space. I haven't seen it yet, 124 00:06:49,480 --> 00:06:53,680 Speaker 2: but no doubt I will on my various travels around London. Yeah, 125 00:06:53,839 --> 00:06:57,240 Speaker 2: massive space. And I guess also maybe after the House 126 00:06:57,240 --> 00:07:00,480 Speaker 2: of Guinness the Netflix series, maybe they have got new 127 00:07:01,120 --> 00:07:05,440 Speaker 2: younger fans. Perhaps they've also got an alcohol free beer 128 00:07:05,520 --> 00:07:07,040 Speaker 2: that apparently is super popular. 129 00:07:07,560 --> 00:07:11,360 Speaker 3: Yes, I am told by Guinness Conoisseurs that it's very good, really, 130 00:07:11,840 --> 00:07:13,680 Speaker 3: the alcohol free version. I just feel like this is 131 00:07:13,680 --> 00:07:15,400 Speaker 3: going to add to the debate that all Irish people 132 00:07:15,440 --> 00:07:18,480 Speaker 3: abroad have about how terrible Guinness is outside of Ireland 133 00:07:18,480 --> 00:07:21,040 Speaker 3: and that you can only have decent points of Guinness 134 00:07:21,040 --> 00:07:23,280 Speaker 3: in Ireland. I was literally having this conversation with some 135 00:07:23,280 --> 00:07:25,120 Speaker 3: Irish people last night here in Brussels as well. So 136 00:07:25,400 --> 00:07:27,520 Speaker 3: I mean, this is a conversation that I feel will 137 00:07:27,560 --> 00:07:29,960 Speaker 3: never die and is going to be fueled by the 138 00:07:29,960 --> 00:07:33,760 Speaker 3: opening of the new Diagio micro brewery in London that's 139 00:07:33,760 --> 00:07:35,200 Speaker 3: one of the stories we've been reading this morning. 140 00:07:36,000 --> 00:07:40,600 Speaker 2: Now, let's get to our top stories this morning. US 141 00:07:40,600 --> 00:07:43,960 Speaker 2: Forces sees they sanctioned oil tanker off the coast of Venezuela. 142 00:07:44,040 --> 00:07:46,559 Speaker 2: This is a major escalation of tensions between the Trump 143 00:07:46,560 --> 00:07:50,560 Speaker 2: White House and the regime of President Nicolas Maduro. Venezuela 144 00:07:50,600 --> 00:07:53,560 Speaker 2: has called it an act of piracy. Joining us now 145 00:07:53,640 --> 00:07:56,720 Speaker 2: is our Washington d C editor John Harney, John good 146 00:07:56,720 --> 00:07:59,280 Speaker 2: to speak to you. We know the Pentagon's conducted some 147 00:07:59,360 --> 00:08:03,680 Speaker 2: twenty drikes on alleged drug trafficking vehicles. Why sees this 148 00:08:03,880 --> 00:08:04,760 Speaker 2: oil tanker? 149 00:08:05,360 --> 00:08:09,200 Speaker 1: The reason given was that this was a sanctioned vessel, 150 00:08:09,760 --> 00:08:13,800 Speaker 1: and Attorney General Pam Bondi said that there was a 151 00:08:13,880 --> 00:08:18,960 Speaker 1: fact a warrant for the tanker and that it was 152 00:08:19,000 --> 00:08:24,480 Speaker 1: transporting sanctioned oil to various countries. And this had included 153 00:08:24,560 --> 00:08:28,640 Speaker 1: in her post was a video, a very dramatic cinematic 154 00:08:28,880 --> 00:08:34,360 Speaker 1: video US Forces descending by rope to the deck of 155 00:08:34,600 --> 00:08:36,480 Speaker 1: the ship as they seized it. 156 00:08:37,280 --> 00:08:39,680 Speaker 3: What have we heard in terms of a response from 157 00:08:39,760 --> 00:08:41,600 Speaker 3: Venezuela to this news. 158 00:08:41,640 --> 00:08:46,280 Speaker 1: Well, it was a combative response, calling the seizer, the 159 00:08:46,280 --> 00:08:49,960 Speaker 1: seizure of the ship an act of piracy and again 160 00:08:51,320 --> 00:08:56,839 Speaker 1: accused of the United States of engaging in this campaign, 161 00:08:56,960 --> 00:09:02,679 Speaker 1: this aggressive campaign against the Maduro government of Venezuela simply 162 00:09:02,800 --> 00:09:09,040 Speaker 1: too because they wanted to seize the country's vast stores 163 00:09:09,080 --> 00:09:13,160 Speaker 1: of oil. This is a recurring has been a recurring 164 00:09:13,200 --> 00:09:18,760 Speaker 1: theme of left of the Maduro government since relations of 165 00:09:18,800 --> 00:09:21,880 Speaker 1: the United States deteriorated some years ago. 166 00:09:22,360 --> 00:09:25,040 Speaker 2: I suppose there's also a question about whether this is 167 00:09:25,080 --> 00:09:30,480 Speaker 2: a return to regime change by the US in Latin America. 168 00:09:30,520 --> 00:09:32,600 Speaker 2: That I suppose is the underlying question. 169 00:09:33,160 --> 00:09:38,880 Speaker 9: Well, of course, there's a long history of the United 170 00:09:38,880 --> 00:09:44,120 Speaker 9: States exerting influence and often or sometimes unwanted influence in 171 00:09:44,520 --> 00:09:48,480 Speaker 9: Latin America. This of course began with a Monroe doctorate 172 00:09:48,559 --> 00:09:50,880 Speaker 9: of the nineteenth century, which is intended to keep out 173 00:09:50,960 --> 00:09:55,240 Speaker 9: European powers. But in the case of Venezuela, President Donald 174 00:09:55,280 --> 00:10:00,760 Speaker 9: Trump has been intent on removing Nicholas Maduro since its 175 00:10:00,800 --> 00:10:06,800 Speaker 9: first administration. But with these strikes on alleged drug boats 176 00:10:07,120 --> 00:10:11,640 Speaker 9: and now the seature the tanker, this confrontation continues to escalate. 177 00:10:12,040 --> 00:10:15,079 Speaker 1: At the same time, of course, you have the United 178 00:10:15,080 --> 00:10:19,200 Speaker 1: States has assembled a large, a very large military presence 179 00:10:19,600 --> 00:10:23,880 Speaker 1: in the Caribbean, with which includes the world's largest aircraft carrier, 180 00:10:23,920 --> 00:10:24,960 Speaker 1: the Gerald R. Ford. 181 00:10:25,760 --> 00:10:28,200 Speaker 3: Yes, so plenty. I mean to watch in terms of 182 00:10:28,240 --> 00:10:30,800 Speaker 3: the developments on this as well. John Harney for now 183 00:10:30,840 --> 00:10:32,600 Speaker 3: or Washington d c ESUR, thank you very much for 184 00:10:32,600 --> 00:10:34,760 Speaker 3: bringing us up to date with the news around that 185 00:10:35,080 --> 00:10:38,160 Speaker 3: sanctioned oil tanker being seized. We did see a slight 186 00:10:38,240 --> 00:10:40,680 Speaker 3: up tick and oil prices after that news, although we 187 00:10:40,679 --> 00:10:42,920 Speaker 3: are seeing them lower now on the day, down around 188 00:10:42,960 --> 00:10:45,440 Speaker 3: half of one percent for brand crude. 189 00:10:46,280 --> 00:10:51,280 Speaker 2: Stay with us. More from Bloomberg daybaqube coming up after this. Well, 190 00:10:51,360 --> 00:10:54,600 Speaker 2: let's also talk about the Federal Reserve decision yesterday and 191 00:10:54,640 --> 00:10:58,480 Speaker 2: the divisions that it seemed to highlight among the rate setters. 192 00:10:58,640 --> 00:11:01,439 Speaker 2: Are Markets Live streash is. Mark Cranfield joins us now 193 00:11:01,480 --> 00:11:04,520 Speaker 2: for more on this topic. How significant, then, were the 194 00:11:04,640 --> 00:11:09,320 Speaker 2: divisions in this decision to cut by twenty five basis points? Mark, 195 00:11:09,360 --> 00:11:12,360 Speaker 2: We've been talking about silent dissenters. 196 00:11:12,760 --> 00:11:15,360 Speaker 10: Yeah, it's pretty unusual that you've got There's been a 197 00:11:15,360 --> 00:11:19,320 Speaker 10: few comments today on Bloomberg about how it's rare to 198 00:11:19,360 --> 00:11:23,600 Speaker 10: get a three ways split in the Federal Reserve, and 199 00:11:23,679 --> 00:11:27,320 Speaker 10: obviously that's partly why traders are not really taking a 200 00:11:27,440 --> 00:11:30,800 Speaker 10: clear view on when the next move is going to 201 00:11:30,840 --> 00:11:33,840 Speaker 10: be so the next meeting is in January, six weeks away, 202 00:11:34,520 --> 00:11:37,160 Speaker 10: and quite often you would get particularly after you've had 203 00:11:37,160 --> 00:11:39,760 Speaker 10: a fresh dot plots as we had last night, which 204 00:11:39,800 --> 00:11:43,520 Speaker 10: is still signaling lower rates for next year. Normally traders 205 00:11:43,559 --> 00:11:47,120 Speaker 10: would start pricing in another interest rate cut fairly early, 206 00:11:47,160 --> 00:11:50,400 Speaker 10: but that's not the case yet. And clearly over the 207 00:11:50,440 --> 00:11:52,360 Speaker 10: next few weeks there is going to be a lot 208 00:11:52,400 --> 00:11:56,320 Speaker 10: of back and forth between voices inside and outside the 209 00:11:56,320 --> 00:11:59,960 Speaker 10: Federal Reserve as to what is the correct move from here. 210 00:12:00,080 --> 00:12:03,280 Speaker 10: And you've got something for everybody. You can see in 211 00:12:03,320 --> 00:12:06,520 Speaker 10: this statement and the press conference yesterday that there's a 212 00:12:06,520 --> 00:12:08,520 Speaker 10: full range heare, there are some people that are concerned 213 00:12:08,559 --> 00:12:11,679 Speaker 10: about inflation, there's something concerned about the jobs market. And 214 00:12:11,880 --> 00:12:14,800 Speaker 10: it really is very hard to pin down where the 215 00:12:14,800 --> 00:12:16,079 Speaker 10: Federal Reserve will go next. 216 00:12:16,800 --> 00:12:18,960 Speaker 3: Well, I suppose when we're thinking about all the changes 217 00:12:18,960 --> 00:12:20,720 Speaker 3: they are going to come for the Fed next year. 218 00:12:20,760 --> 00:12:22,960 Speaker 3: Of course, a new chair we don't yet know who 219 00:12:22,960 --> 00:12:24,760 Speaker 3: that is. The assumption is that it's going to be 220 00:12:24,840 --> 00:12:27,640 Speaker 3: Kevin Hassett based on the comments we've had from Donald 221 00:12:27,679 --> 00:12:29,880 Speaker 3: Trump so far. I mean, it's not going to be 222 00:12:29,920 --> 00:12:32,280 Speaker 3: any easier for the next FED chair it seems to 223 00:12:32,320 --> 00:12:35,240 Speaker 3: be able to perhaps rally a single opinion, or at 224 00:12:35,320 --> 00:12:37,960 Speaker 3: least a consensus opinion on what to do about interest rates. 225 00:12:38,360 --> 00:12:42,080 Speaker 10: That's certainly true, but it also goes beyond the next chairman. 226 00:12:42,160 --> 00:12:45,800 Speaker 10: You can see that the current White House administration has 227 00:12:45,800 --> 00:12:50,000 Speaker 10: started to change the personnel even outside of the chairman. 228 00:12:50,080 --> 00:12:52,280 Speaker 10: There will be a few more spaces up for grabs 229 00:12:52,840 --> 00:12:56,160 Speaker 10: next year, and it looks as though they're methodically trying 230 00:12:56,200 --> 00:12:59,360 Speaker 10: to alter the balance of power within the Federal Reserve 231 00:12:59,440 --> 00:13:02,840 Speaker 10: every time there's an opportunity to replace somebody. There's even 232 00:13:02,880 --> 00:13:06,560 Speaker 10: a suggestion that might not carry much water, but they're 233 00:13:06,679 --> 00:13:09,079 Speaker 10: even trying to talk about the fact that you need 234 00:13:09,120 --> 00:13:12,120 Speaker 10: to live within a certain district for three years before 235 00:13:12,120 --> 00:13:14,600 Speaker 10: you're allowed to become a Fed governor. So there's a 236 00:13:14,679 --> 00:13:18,360 Speaker 10: number of issues which are trying to alter the way 237 00:13:18,400 --> 00:13:21,480 Speaker 10: in which the bias is seen within the Federal Reserve, 238 00:13:21,520 --> 00:13:23,880 Speaker 10: and investors obviously have to get their heads around it. 239 00:13:23,920 --> 00:13:25,880 Speaker 10: They need to take that into account. It's not just 240 00:13:26,600 --> 00:13:29,520 Speaker 10: about what data is coming out, it's also about the 241 00:13:29,520 --> 00:13:33,440 Speaker 10: personalities on how they would interpret the data and the 242 00:13:33,440 --> 00:13:35,160 Speaker 10: messages they're getting from the White House. 243 00:13:36,240 --> 00:13:39,560 Speaker 2: Yeah, meanwhile, There's also one more technical issue that the 244 00:13:39,559 --> 00:13:45,240 Speaker 2: Fed's authorizing new purchases of short term treasury securities, and 245 00:13:45,320 --> 00:13:48,840 Speaker 2: there is a markets of reaction or interpretation of that too. 246 00:13:49,679 --> 00:13:51,680 Speaker 10: That's the most from the market's point of view, that 247 00:13:51,760 --> 00:13:54,280 Speaker 10: was the most significant development last night, because that is 248 00:13:54,320 --> 00:13:58,160 Speaker 10: a pure injection of liquidity. It's almost a kind of 249 00:13:58,280 --> 00:14:02,079 Speaker 10: mini quantitative easing. Markets have been used to quantitive tightening 250 00:14:02,080 --> 00:14:04,760 Speaker 10: for the past few years, and this is a complete shift. 251 00:14:04,960 --> 00:14:08,120 Speaker 10: It's throwing money back into the market. Jerome Power also 252 00:14:08,240 --> 00:14:10,960 Speaker 10: said that this would likely stay on the highest side, 253 00:14:10,960 --> 00:14:13,640 Speaker 10: so they may even increase that number. So it's going 254 00:14:13,679 --> 00:14:16,640 Speaker 10: to throw money straight back into the short term money markets. 255 00:14:17,240 --> 00:14:19,360 Speaker 10: Stock markets liked it very much. They were knocked back 256 00:14:19,400 --> 00:14:21,640 Speaker 10: a bit today by Oracle, but that will probably pass 257 00:14:21,680 --> 00:14:26,120 Speaker 10: once American markets get going again later today. They're obviously 258 00:14:26,160 --> 00:14:30,040 Speaker 10: slightly concerned about short term squeeze over the year end, 259 00:14:30,080 --> 00:14:32,880 Speaker 10: but it goes way beyond that. It's making sure that 260 00:14:32,920 --> 00:14:36,080 Speaker 10: there is sufficient liquidity going right into next year, and 261 00:14:36,120 --> 00:14:39,480 Speaker 10: that's a very positive development for markets, particularly in the 262 00:14:39,600 --> 00:14:40,320 Speaker 10: United States. 263 00:14:40,760 --> 00:14:43,400 Speaker 2: Okay, Mark, thank you so much for being with us 264 00:14:43,400 --> 00:14:46,600 Speaker 2: taking us through the reaction to the Federal Reserve rate decision. 265 00:14:46,600 --> 00:14:49,920 Speaker 2: That's Bloomberg's Markets Live stretches Mark Cranfield. 266 00:14:49,760 --> 00:14:52,240 Speaker 3: To Poland next, which is speeding up its transition to 267 00:14:52,280 --> 00:14:56,000 Speaker 3: clean energy, and that means pain for the country's coal industry. 268 00:14:56,040 --> 00:14:58,840 Speaker 3: Is traditions run deep throughout the nation. Our reporter at 269 00:14:58,840 --> 00:15:02,560 Speaker 3: Matcha Martovich from Warsaw for more on this story much. 270 00:15:02,440 --> 00:15:03,080 Speaker 1: A good morning. 271 00:15:03,560 --> 00:15:06,760 Speaker 3: How important personnel is the coal industry in Poland? 272 00:15:07,440 --> 00:15:10,160 Speaker 5: It is, I would say at this point it's still 273 00:15:10,240 --> 00:15:15,360 Speaker 5: very crucial. It still supplies Poland with a key component 274 00:15:15,440 --> 00:15:19,240 Speaker 5: for energy generation. It accounts for more than fifty percent 275 00:15:19,520 --> 00:15:25,560 Speaker 5: of electricity generation, and it also is a key fuel 276 00:15:25,640 --> 00:15:30,200 Speaker 5: for heating for industry and for households as well. So 277 00:15:30,520 --> 00:15:35,240 Speaker 5: at this point it's irreplaceable. But it is changing, and 278 00:15:35,280 --> 00:15:36,640 Speaker 5: this is what the story is about. 279 00:15:37,400 --> 00:15:41,120 Speaker 2: Yeah, the transition, the change. I mean, you've rooted the 280 00:15:41,160 --> 00:15:47,240 Speaker 2: story very interestingly in the communities that dig out this coal, 281 00:15:47,640 --> 00:15:51,360 Speaker 2: but also that the country is adapting to the green 282 00:15:51,480 --> 00:15:52,320 Speaker 2: energy transition. 283 00:15:53,480 --> 00:15:58,080 Speaker 5: Yeah. I went to the south of Poland to kato Via, 284 00:15:58,320 --> 00:16:00,920 Speaker 5: which is like the main city there in the Upper 285 00:16:00,960 --> 00:16:05,720 Speaker 5: Sailsia region. I went to this historic district of Nikis Soviets. 286 00:16:05,880 --> 00:16:09,840 Speaker 5: There spoke to miners observed the celebrations because I went 287 00:16:09,880 --> 00:16:15,040 Speaker 5: there on December the fourth, which is a traditional celebration day, 288 00:16:15,360 --> 00:16:19,640 Speaker 5: the miners day. Let's say it's called Barburka in Poland. 289 00:16:19,960 --> 00:16:25,600 Speaker 5: And yeah, people there, they already agree with the view 290 00:16:25,720 --> 00:16:31,280 Speaker 5: that the coal is ending, and they know that the 291 00:16:31,480 --> 00:16:35,520 Speaker 5: industry is shutting down down slowly. It'll be over in 292 00:16:35,600 --> 00:16:41,160 Speaker 5: ten years because Poland is investing heavily in other energy sources. 293 00:16:41,240 --> 00:16:44,920 Speaker 5: It's investing in gas fired power plants, in investing, it's 294 00:16:45,000 --> 00:16:50,320 Speaker 5: investing in renewables, in solar plants, in wind turbines. It's 295 00:16:50,400 --> 00:16:54,120 Speaker 5: going to have its first offshore wind next year and 296 00:16:54,360 --> 00:16:57,320 Speaker 5: in ten years is going to have its first nuclear plant. 297 00:16:57,840 --> 00:17:03,600 Speaker 5: So the whole land scape of energy production will change 298 00:17:03,760 --> 00:17:05,120 Speaker 5: in ten fifteen years. 299 00:17:05,359 --> 00:17:07,760 Speaker 3: For the people that you spoke to, what are they 300 00:17:07,800 --> 00:17:09,879 Speaker 3: hoping that will happen to their jobs? Or do they 301 00:17:09,880 --> 00:17:12,199 Speaker 3: have aspirations to be able to transition into some of 302 00:17:12,200 --> 00:17:14,680 Speaker 3: these other areas which are growing. 303 00:17:15,000 --> 00:17:20,880 Speaker 5: Some Yes, but there's not enough. I would say it's 304 00:17:20,920 --> 00:17:25,280 Speaker 5: not that easy to transition, especially that those other industries 305 00:17:25,320 --> 00:17:28,480 Speaker 5: will be elsewhere they would have to move. I think 306 00:17:28,520 --> 00:17:32,760 Speaker 5: the government is preparing some kind of accushion for them 307 00:17:33,320 --> 00:17:38,600 Speaker 5: so that they can live from government subsidies for some 308 00:17:38,760 --> 00:17:42,399 Speaker 5: time and then they can retire. Because most of the 309 00:17:42,480 --> 00:17:46,960 Speaker 5: miners are already close to the retirement retirement age the 310 00:17:47,040 --> 00:17:51,600 Speaker 5: hiring and that some time ago, and the mines, even 311 00:17:51,640 --> 00:17:54,320 Speaker 5: though there are more than ten of them operating in 312 00:17:54,359 --> 00:17:59,960 Speaker 5: the Salasi region, they are close to ending their operation. 313 00:18:02,760 --> 00:18:05,480 Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the 314 00:18:05,560 --> 00:18:08,640 Speaker 3: stories making news from London to Wall Street and beyond. 315 00:18:08,960 --> 00:18:12,920 Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify, 316 00:18:13,040 --> 00:18:15,040 Speaker 2: and anywhere else you get your podcasts. 317 00:18:15,119 --> 00:18:18,160 Speaker 3: You can also listen live each morning on London DAB Radio, 318 00:18:18,200 --> 00:18:20,879 Speaker 3: the Bloomberg Business app, and Bloomberg dot Com. 319 00:18:20,960 --> 00:18:23,720 Speaker 2: Our flagship New York station is also available on your 320 00:18:23,760 --> 00:18:28,439 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 321 00:18:28,680 --> 00:18:30,000 Speaker 2: I'm Caroline Hepka and. 322 00:18:29,960 --> 00:18:32,600 Speaker 3: I'm Stephen Carroll. Join us again tomorrow morning for all 323 00:18:32,640 --> 00:18:35,040 Speaker 3: the news you need to start your day right here 324 00:18:35,080 --> 00:18:40,280 Speaker 3: on Bloomberg Daybreak Europe.