WEBVTT - Fed Decision; UAW Strike Update 0:00:02.480 --> 0:00:03.040 Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:07.840 --> 0:00:10.840 We begin with the global economy and interest rates. The 0:00:10.880 --> 0:00:14.320 Federal Reserve makes a policy decision this afternoon, and while 0:00:14.360 --> 0:00:16.919 the Central Bank is not expected to make any move, 0:00:17.040 --> 0:00:20.600 there is much anticipation to the message Jay Powell will deliver. 0:00:20.960 --> 0:00:23.000 We get more from Bloomberg's Michael McKee. 0:00:23.200 --> 0:00:25.479 Once again, it's a question of what they say rather 0:00:25.560 --> 0:00:28.479 than what they do. Markets have priced out any chance 0:00:28.520 --> 0:00:31.720 of a rate increase from the Fed. Instead, investors will 0:00:31.760 --> 0:00:34.120 focus on clues to what the Central Bank's plans are 0:00:34.280 --> 0:00:37.360 going forward. Will they keep their June forecast of at 0:00:37.440 --> 0:00:39.720 least one more rate hike before the end of twenty 0:00:39.800 --> 0:00:43.520 twenty three, and what will their revised economic forecasts say 0:00:43.560 --> 0:00:46.240 about the chances of rate cuts in twenty twenty four. 0:00:47.159 --> 0:00:51.240 We'll also get officials updated outlooks for employment, growth and inflation. 0:00:51.880 --> 0:00:55.400 Expect Chairman j Powell to emphasize uncertainty in his post 0:00:55.440 --> 0:00:59.520 decision news conference as the economy faces headwinds including rising 0:00:59.520 --> 0:01:03.320 oil price is, a government shutdown, and the auto workers strike. 0:01:03.720 --> 0:01:05.200 Michael McKee, Bloomberg Radio. 0:01:05.319 --> 0:01:08.120 All Right, Mike thanks to stay with Bloomberg for full coverage, 0:01:08.160 --> 0:01:12.680 including the Bloomberg Surveillance special. The Fed decides later this afternoon. 0:01:13.000 --> 0:01:15.200 Well, Nathan, as we wait for that Fed decision, we 0:01:15.319 --> 0:01:17.720 got a surprise you can Numberg report that could impact 0:01:17.760 --> 0:01:20.479 tomorrow's Bank of England decision, and we go to London 0:01:20.520 --> 0:01:22.720 and get the latest with Bloomberg's You and Potts. 0:01:22.800 --> 0:01:25.039 You and good morning, Good morning, Karen, Nathan. 0:01:25.080 --> 0:01:28.520 Britain's inflation rate has unexpectedly dropped to the lowest level 0:01:28.640 --> 0:01:31.840 in eighteen months. CPI in the year to August came 0:01:31.880 --> 0:01:35.200 in at six point seven percent. Economists not the first 0:01:35.240 --> 0:01:37.559 time they've been wrong. We're expecting the reading to tick 0:01:37.680 --> 0:01:40.760 up to seven percent. And good news on the UK's 0:01:40.800 --> 0:01:44.120 core inflation rate, which fell sharply from six point nine 0:01:44.280 --> 0:01:47.480 to six point two percent. Investors have reined in bets 0:01:47.520 --> 0:01:49.720 for further tightening from the Bank of England, though a 0:01:49.800 --> 0:01:52.800 quarter point hike is still the consensus. We'll find out 0:01:52.880 --> 0:01:55.560 tomorrow in London. I'm you in Pot's Bloomberg Daybreak. 0:01:55.760 --> 0:01:57.680 All right, ew and thank you all. This morning, we're 0:01:57.680 --> 0:02:00.280 seeing more calls for oil to reach one hundred dollars 0:02:00.320 --> 0:02:03.040 a barrel Goldman Sacks is raising its forecast for crude 0:02:03.040 --> 0:02:06.120 back to triple digits as demand booms and OPEC plus 0:02:06.120 --> 0:02:09.400 supply curves tight in the market, with prices rising more 0:02:09.440 --> 0:02:12.799 than thirty percent since mid June. Goldman pushed up its 0:02:12.840 --> 0:02:15.560 twelve month forecast for Brent to one hundred dollars from 0:02:15.639 --> 0:02:18.000 ninety three and checking Brent right now, it's at ninety 0:02:18.000 --> 0:02:20.800 three zho two a barrel. That's down one point four percent. 0:02:21.040 --> 0:02:23.240 Nine X Crud's down one point four percent as well, 0:02:23.280 --> 0:02:25.160 at eighty nine dollars ninety cents. 0:02:25.320 --> 0:02:27.520 Well. Another call this morning, Nathan, this one on the 0:02:27.520 --> 0:02:31.920 Equity Markets Bank of America. Savita Supermanian is boosting her 0:02:31.960 --> 0:02:34.120 target for the S and P five hundred after this 0:02:34.240 --> 0:02:38.200 year's rally left many forecasts in the dust. The strategist 0:02:38.200 --> 0:02:41.120 now expects the benchmark to end the year at four thousand, 0:02:41.200 --> 0:02:43.839 six hundred, about a three and a half percent gain 0:02:43.880 --> 0:02:47.639 from current levels. Her previous SMP target was forty three hundred. 0:02:47.880 --> 0:02:51.240 Sticking with Markets, Karen, After starting trade yesterday in Stackhart 0:02:51.360 --> 0:02:53.840 shares are down as much as five percent in the 0:02:53.840 --> 0:02:56.880 pre market. The drop follows yesterday's volatile action for the 0:02:56.919 --> 0:03:01.000 online grocery delivery firm. The stock initially surged forty three percent, 0:03:01.080 --> 0:03:03.040 but ended the day with a gain of twelve percent. 0:03:03.120 --> 0:03:05.200 We get more from Bloomberg's Katie Roof. 0:03:05.320 --> 0:03:08.560 It's quite better than what they were initially hoping several 0:03:08.639 --> 0:03:12.400 days ago, but definitely it's lower than the valuation they 0:03:12.480 --> 0:03:15.320 had in twenty twenty one, a lot lower than that, 0:03:15.480 --> 0:03:18.519 but around the thirteen billion where they were valued last year. 0:03:18.639 --> 0:03:22.360 And Bloomberg's Katie Riff says instacarts listing, combined with arms IPO, 0:03:22.520 --> 0:03:25.480 is giving equity capital markets much needed relief after the 0:03:25.520 --> 0:03:27.640 longest drought since two thousand and nine. 0:03:28.080 --> 0:03:30.760 Now to the latest on the auto strike, which enters 0:03:30.840 --> 0:03:33.560 it's six day naighthan, the UAW says it will step 0:03:33.639 --> 0:03:36.360 up pressure by the end of the week if negotiations 0:03:36.400 --> 0:03:39.120 don't progress. Bloomberg's Ed Baxter has the story. 0:03:39.640 --> 0:03:43.400 UAW President Sean Fain has set a Friday noon deadline 0:03:43.400 --> 0:03:46.800 for good negotiations or an escalation in the strike. 0:03:46.960 --> 0:03:51.160 If we don't make serious progress by noon on Friday, 0:03:51.160 --> 0:03:55.040 September twenty second, more locals will be called on to 0:03:55.160 --> 0:03:56.680 stand up and join the strike. 0:03:56.920 --> 0:04:01.440 Representatives from gm Ford and stillattis say bargaining has continued 0:04:01.480 --> 0:04:04.800 in good faith. Ad Baxter Bloomberg Radio thanks Ed, We've 0:04:04.800 --> 0:04:07.600 got some labor resolution. North of the border, workers at 0:04:07.600 --> 0:04:11.160 Ford's Canada unit have avoided a strike. UNIFOR the Canadian 0:04:11.160 --> 0:04:15.120 Autoworkers Unions reached a three year national labor contract in Canada. 0:04:15.200 --> 0:04:18.000 Rather than negotiating with all three major automakers at once, 0:04:18.120 --> 0:04:21.400 UNIFORM selected Ford as the target for bargaining well Nathan. 0:04:21.440 --> 0:04:24.600 President Biden will be focused on improved labor conditions as 0:04:24.640 --> 0:04:27.800 the UN General Assembly continues. He'll meet with Brazil's President 0:04:27.839 --> 0:04:30.920 Luis and Nacio Lula de Silva and announce a partnership 0:04:30.920 --> 0:04:33.600 to how workers move into the gig economy and clean energy. 0:04:33.839 --> 0:04:36.240 The President will also be looking for brazil support for 0:04:36.360 --> 0:04:38.680 Ukraine and its war against Russia. That was the focus 0:04:38.720 --> 0:04:40.360 of his annual address to the gathering. 0:04:40.720 --> 0:04:43.159 If we abandoned the core principles of the United States 0:04:43.160 --> 0:04:46.919 to a peas and aggressor, can any member stayed in 0:04:47.000 --> 0:04:51.480 this body feel confident that they're protecting. 0:04:51.360 --> 0:04:54.320 And Ukrainian President Vladimir Zelanski made his own appeal. He 0:04:54.360 --> 0:04:56.960 says Russia is turning everything for food, to energy and 0:04:57.080 --> 0:04:58.279 children into weapons. 0:04:58.560 --> 0:05:03.120 Those children in ra Ah tools to hate Ukraine and 0:05:03.240 --> 0:05:07.000 old ties with their families are broken, and this is 0:05:07.120 --> 0:05:08.919 clearly a genocide. 0:05:08.960 --> 0:05:10.840 And even with these new calls for support, the US 0:05:10.920 --> 0:05:12.960 and G seven allies now say they're preparing for the 0:05:13.000 --> 0:05:14.480 war to last for years to come. 0:05:14.720 --> 0:05:18.039 Meanwhile, Karen Treasury Secretary Janet Yellen's continuing her call for 0:05:18.120 --> 0:05:22.040 financial institutions to make voluntary net zero carbon commitments. 0:05:22.480 --> 0:05:27.000 Our goal is to affirm the importance of credible net 0:05:27.120 --> 0:05:32.360 zero commitments and to encourage financial institutions that make them 0:05:32.839 --> 0:05:35.839 to take consistent approaches to implementation. 0:05:36.640 --> 0:05:39.760 Secretary Yellen spoke at the Transition Finance Action Forum in 0:05:39.800 --> 0:05:45.640 New York hosted by Bloomberg. Man It's down time to 0:05:45.640 --> 0:05:47.320 take a look at some of the other stories making 0:05:47.360 --> 0:05:49.720 news in New York and around the world with Bloomberg's 0:05:49.760 --> 0:05:50.200 John Tucker. 0:05:50.240 --> 0:05:51.400 Good Morning John, and Nathan. 0:05:51.480 --> 0:05:55.120 The operators of a Bronx daycare center now facing federal 0:05:55.200 --> 0:05:58.559 drug charges. It comes after one child died three others 0:05:58.560 --> 0:06:02.640 were poisoned from exposure to fentanol. Friday, the federal prosecutors 0:06:02.680 --> 0:06:06.160 took over the case against Gray Mendez and Carslito Brito, 0:06:06.360 --> 0:06:10.960 who are religedly operating a drug distribution business. Prosecutors say 0:06:10.960 --> 0:06:13.760 a kilogram brick of fentanyl would start on top of 0:06:13.880 --> 0:06:17.800 children's playmats. That's enough fentanol to kill half a million people. 0:06:18.360 --> 0:06:21.880 According to a draft securities filing, American Dream That Mega 0:06:21.960 --> 0:06:25.400 Mall in New Jersey's Meadowlands has seen its losses increase 0:06:25.600 --> 0:06:29.200 fourfold in one year. More in this report from Bloomberg's 0:06:29.279 --> 0:06:30.440 Charlie Pellett. 0:06:30.040 --> 0:06:32.600 The three and a half million square foot shopping and 0:06:32.760 --> 0:06:36.680 entertainment complex, home to an indoor ski slope, amusement park 0:06:36.720 --> 0:06:40.000 and water park, lost about two hundred and forty five 0:06:40.160 --> 0:06:44.279 million dollars in twenty twenty two, as expenses almost doubled 0:06:44.480 --> 0:06:47.479 to four hundred and twenty eight million dollars. This is 0:06:47.480 --> 0:06:50.479 according to a three page document posted to the Municipal 0:06:50.520 --> 0:06:55.599 Securities Rulemaking Boards EMMA website in New York. Charlie Pellett 0:06:55.600 --> 0:06:56.880 Bloomberg Radio New. 0:06:56.839 --> 0:06:59.560 Yorker's spending habits are cooling and the New York State 0:06:59.600 --> 0:07:02.880 Control Or Thomas Didapoli is warning towns and cities to 0:07:02.960 --> 0:07:06.200 adjust their budgets. He also says paying to house migrants 0:07:06.240 --> 0:07:08.520 coming into New York is unsustainable. 0:07:09.080 --> 0:07:11.840 You know the City's estimating some twelve billion dollars in 0:07:11.920 --> 0:07:14.120 terms of the next couple of years of cost. The 0:07:14.200 --> 0:07:16.840 state financial plan has about one and a half billion 0:07:16.840 --> 0:07:19.400 in it for migrants. The governor has indicated some more 0:07:19.440 --> 0:07:22.240 money will be put aside for that, but I don't 0:07:22.240 --> 0:07:24.040 see how the state or the city could get through 0:07:24.120 --> 0:07:28.680 this without additional federal support so far has not been forthcoming. 0:07:28.800 --> 0:07:33.080 DiNapoli was interviewed on Bloomberg Business Week. Prince William managed 0:07:33.120 --> 0:07:36.880 to go jogging in Central Park yesterday without paparazzi or 0:07:36.960 --> 0:07:38.160 anybody else noticing. 0:07:38.440 --> 0:07:41.440 I decided to join the holds of New Yorker's during 0:07:41.480 --> 0:07:44.840 that morning routine as they went Rassiter Park. It was 0:07:44.840 --> 0:07:47.320 wonderful waking up in New York on a Sunday morning 0:07:47.920 --> 0:07:50.520 run the rain we had yesterday and it was it's 0:07:50.520 --> 0:07:52.080 beautiful getting some fresh air this morning. 0:07:52.400 --> 0:07:54.760 He went out for a run before announcing the fifteen 0:07:54.880 --> 0:07:58.120 finalists for the twenty twenty three Earth Shot Prize, a 0:07:58.200 --> 0:08:00.680 competition he created three years ago to find the most 0:08:00.680 --> 0:08:05.720 innovative solutions to global environmental challenges, and health experts with 0:08:05.800 --> 0:08:09.120 the Centers for Disease Control and Prevention predicting what they 0:08:09.200 --> 0:08:12.160 call a repeat of a triple demic this fall and 0:08:12.280 --> 0:08:17.280 winter with COVID nineteen RSV and influenza. The CDC earsing 0:08:17.320 --> 0:08:20.560 people to get flu vaccinations and their COVID nineteen booster 0:08:20.760 --> 0:08:24.080 before winter. Global News twenty four hours a day, power 0:08:24.120 --> 0:08:27.160 by more than twenty seven hundred journalist and analysts in 0:08:27.240 --> 0:08:29.720 more than one hundred and twenty countries. I'm John Tucker. 0:08:29.840 --> 0:08:31.120 This is Bloomberg, Nathan. 0:08:31.160 --> 0:08:33.600 All right, John, Thanks Now, get the latest news whenever 0:08:33.679 --> 0:08:36.360 you want it with Bloomberg News Now the top stories 0:08:36.400 --> 0:08:38.480 from our global team of reporters at the click of 0:08:38.559 --> 0:08:41.920 a button. Get Bloomberg News Now on the Bloomberg Business app, 0:08:41.960 --> 0:08:50.000 Bloomberg dot com, and anywhere you get your podcasts. Time 0:08:50.040 --> 0:08:52.560 now for the Bloomberg Sports Update. Here's John Stshower. 0:08:52.640 --> 0:08:55.280 All right, Nathan. The Yankees are certainly hoping they don't 0:08:55.320 --> 0:08:58.680 finish this disappointing feason with a sub five hundred record 0:08:58.720 --> 0:09:01.240 that hasn't happened since nineteen nine. The record dropped to 0:09:01.320 --> 0:09:04.920 seventy six and seventy five a seven to one loss 0:09:04.920 --> 0:09:07.319 to Toronto at the Stadium. George Springer had a lead 0:09:07.360 --> 0:09:09.559 off home run for the fifty seventh time in his career, 0:09:09.559 --> 0:09:11.680 get it on his thirty fourth birthday. Yanks All had 0:09:11.720 --> 0:09:14.240 a lot to say about whether the Blue Jays make 0:09:14.320 --> 0:09:16.760 it in as a wildcard. Still have five games remaining 0:09:16.760 --> 0:09:20.000 with the Jays who are in a battle very tight 0:09:20.040 --> 0:09:23.640 now with three Al West teams Houston, Seattle, and Texas, 0:09:23.679 --> 0:09:27.320 those three separated by only a half game, and the 0:09:27.400 --> 0:09:29.719 teams that don't win the division in it with the 0:09:29.840 --> 0:09:32.760 Jays for a wildcard. Miami Marlins won of four teams 0:09:32.800 --> 0:09:35.880 buying for two NL wildcards. The Marlin scored five of 0:09:35.880 --> 0:09:36.880 the nine they get the Mets. 0:09:36.640 --> 0:09:37.200 Sport at three. 0:09:37.200 --> 0:09:40.320 The Liberty moving on to the WNBA playoffs. They beat 0:09:40.520 --> 0:09:44.400 Washington ninety to eighty five in overtime to win the 0:09:44.400 --> 0:09:47.079 series two nothing. Brianna Stewart knows the Liberty had not 0:09:47.160 --> 0:09:49.280 won a playoff series in twenty fifteen. 0:09:49.880 --> 0:09:50.560 It means a lot. 0:09:50.679 --> 0:09:52.480 I think that, you know, I don't know if we're 0:09:52.520 --> 0:09:55.920 thinking about getting this team back to somewhere where the 0:09:55.960 --> 0:09:57.679 Liberty hasn't been in eight years, but. 0:09:59.240 --> 0:10:00.080 You know, the first time. 0:10:00.240 --> 0:10:01.600 We've been able to do it as a group. 0:10:02.080 --> 0:10:06.160 And today there was highs and lows, and we knew 0:10:06.160 --> 0:10:07.640 it was going to be emotional. 0:10:07.400 --> 0:10:10.120 Under the semi finals against either Connecticut or Minnesota. The 0:10:10.120 --> 0:10:12.000 word on Saquon Barkley was that he was going to 0:10:12.000 --> 0:10:14.319 be out three weeks with the injured ankle, A coach 0:10:14.360 --> 0:10:16.920 Brian dave All talking about him being out only three days. 0:10:17.000 --> 0:10:19.520 Dave Ball not ruling Barkley out for Tomorrow's game at 0:10:19.520 --> 0:10:20.520 San Francisco SAT. 0:10:20.559 --> 0:10:21.640 Barkley's a quick viewer. 0:10:21.960 --> 0:10:24.800 Buddy Stevens has died at sixty six from injuries suffering 0:10:24.800 --> 0:10:28.040 a bicycle accident. Coach Dartmouth the five IVY League titles 0:10:28.160 --> 0:10:28.720 Jus Stashally. 0:10:28.720 --> 0:10:29.920 We're Bloomberg Sports. 0:10:32.800 --> 0:10:35.840 From coast to coast, from New York to San Francisco, 0:10:36.160 --> 0:10:40.800 Boston to Washington, DC, nationwide on Syrias Exam the Bloomberg 0:10:40.840 --> 0:10:42.960 Business Appen Bloomberg dot Com. 0:10:43.040 --> 0:10:47.800 This is Bloomberg Daybreak. Good morning. I'm Nathan Hager on 0:10:47.960 --> 0:10:51.680 decision day for the Federal Reserve. Two pm. Wall Street 0:10:51.679 --> 0:10:54.920 Time is when Jpwell and Company will announce their plans 0:10:54.920 --> 0:10:57.840 for interstrates this month and send the signal to markets 0:10:58.200 --> 0:11:01.360 for where policy could be headed into November and beyond. 0:11:01.440 --> 0:11:03.440 So let's get you set for what's to come from 0:11:03.480 --> 0:11:07.079 the Central Bank. Bloomberg's pretty Gupta is here with me now, 0:11:07.080 --> 0:11:10.160 and this decision really could be a lot more about 0:11:10.200 --> 0:11:12.559 what's to come than any move the FED makes today, 0:11:12.559 --> 0:11:14.839 because we're rarely not expecting a move, are. 0:11:14.840 --> 0:11:17.640 We We're not expecting a move And I'm I believe, 0:11:17.720 --> 0:11:20.560 just to emphasize how much of a consensus take this 0:11:20.720 --> 0:11:24.720 is five and a half percent of economists estimated by 0:11:24.760 --> 0:11:28.000 Bloomberg think that the Fed is going to actually. 0:11:27.760 --> 0:11:31.040 Raise or move rates at all, which tells kind of 0:11:31.040 --> 0:11:33.440 where the rate is, right, Yeah, five and a half percent, 0:11:34.040 --> 0:11:35.079 I know the irony rate. 0:11:35.280 --> 0:11:38.680 So essentially, in other words, ninety four and a half 0:11:38.800 --> 0:11:41.920 percent of Bloomberg economists or surveyed at least by Bloomberg, 0:11:42.200 --> 0:11:44.680 are saying that the Fed is not going to do anything. 0:11:44.679 --> 0:11:46.880 But Nathan, that's I think the crux of it here 0:11:46.920 --> 0:11:49.160 is that they're kind of setting this tone for the 0:11:49.200 --> 0:11:51.559 rest of the world, which is that we're going to 0:11:51.640 --> 0:11:54.560 have faith that the rest of the effect on the 0:11:54.559 --> 0:11:58.720 economy is going to slowly come. The idea here that 0:11:58.920 --> 0:12:00.959 these lags that I think a lot of people had 0:12:00.960 --> 0:12:05.560 maybe shrugged off early on because inflation wasn't decelerating as 0:12:05.640 --> 0:12:08.320 fast as perhaps people wanted it to. That is no 0:12:08.440 --> 0:12:10.800 longer the narrative at play now. It's simply that we 0:12:10.880 --> 0:12:13.040 just wait for the lags to take effect. And I 0:12:13.040 --> 0:12:14.719 think that's one of the reasons that you're seeing the 0:12:14.760 --> 0:12:18.240 Federal Reserve kind of perhaps indicate, at least from the 0:12:18.360 --> 0:12:20.680 comments that we've gotten out of the FMC members, that 0:12:20.760 --> 0:12:22.520 they're going to be taking them a little bit more 0:12:22.559 --> 0:12:24.960 of a hands off approach on this. But Nathan, all 0:12:25.000 --> 0:12:27.079 of that could change based on what Jay Powell says 0:12:27.120 --> 0:12:30.040 around wages and around oil, because of course we know 0:12:30.080 --> 0:12:32.559 that the strikes across the country and arguably across the 0:12:32.600 --> 0:12:35.719 world as well, have captured a lot of attention, specifically 0:12:35.760 --> 0:12:39.920 with the United autoworkers, where auto wages are significantly below 0:12:40.320 --> 0:12:43.480 manufacturing wages broadly. But at the same time, you're seeing 0:12:43.960 --> 0:12:46.360 much higher oil prices around the world, which is going 0:12:46.400 --> 0:12:49.480 to have real effects on the American consumer as we 0:12:49.559 --> 0:12:52.440 talk about gas prices, especially going into the election next year. 0:12:52.559 --> 0:12:55.319 Yeah, and you have to wonder how much this surge 0:12:55.400 --> 0:12:58.040 in oil prices we've seen in recent days. Obviously we're 0:12:58.040 --> 0:13:00.480 getting a bit of relief this morning on this session, 0:13:00.640 --> 0:13:03.240 but this idea that we could be getting to one 0:13:03.320 --> 0:13:06.079 hundred dollars a barrel in the not too distant future. 0:13:06.360 --> 0:13:09.080 What's that's going to mean for the lag effects that 0:13:09.160 --> 0:13:10.840 the FED wants to see from policy. 0:13:11.200 --> 0:13:13.920 Yeah, well, I'm old enough to remember when oil went negative, 0:13:13.960 --> 0:13:16.440 and I'm also oiled enough to remember when oil went 0:13:16.480 --> 0:13:18.440 to one hundred and forty three dollars a barrel. And 0:13:18.520 --> 0:13:21.720 let me tell you, those round numbers one hundred and one, twenty, 0:13:21.920 --> 0:13:25.720 even ninety make traders and people, by the way, everyday 0:13:25.720 --> 0:13:27.440 consumers very very nervous. 0:13:27.440 --> 0:13:28.040 To your point. 0:13:28.320 --> 0:13:30.760 Goldman Sachs actually came out this morning and said that 0:13:30.800 --> 0:13:33.719 their twelve month ahead price forecast was. 0:13:33.640 --> 0:13:34.920 One hundred dollars a barrel. 0:13:34.960 --> 0:13:37.640 We're at about ninety three right now, which tells you 0:13:37.840 --> 0:13:40.240 this is a pretty significant call that in about twelve 0:13:40.280 --> 0:13:42.719 months time, in a year's time, when a lot of 0:13:42.760 --> 0:13:45.959 people are expecting inflation to come down much more significantly, 0:13:46.440 --> 0:13:49.200 prices are still going to be one hundred dollars a barrel. 0:13:49.280 --> 0:13:51.440 That's the price that people are saying, and this kind 0:13:51.480 --> 0:13:53.960 of speaks to the stickiness of the inflation that a 0:13:53.960 --> 0:13:55.680 lot of people are worried about. I think what's scary 0:13:55.720 --> 0:13:59.120 for me is that the inflation. What's driving it is 0:13:59.160 --> 0:14:01.760 coming more from commodities again, which is going to have 0:14:01.800 --> 0:14:04.400 real effects into how much your grocery build costs, how 0:14:04.480 --> 0:14:07.240 much your gas bill costs, even heating and electricity. 0:14:07.840 --> 0:14:11.520 You have to think the decision that's coming tomorrow from 0:14:11.520 --> 0:14:13.480 the Bank of England is going to get a lot 0:14:13.520 --> 0:14:17.880 more interesting now that we've seen this surprise drop in inflation. 0:14:18.000 --> 0:14:20.440 Who would have thought that we'd be considering the idea 0:14:20.600 --> 0:14:23.360 of a rate pause from the Bank of England. 0:14:23.600 --> 0:14:23.880 I know. 0:14:24.360 --> 0:14:27.120 I mean, Andrew Bailey was supposed to be this kind 0:14:27.200 --> 0:14:31.720 of renegade, almost essentially, this kind of lone wolf in 0:14:32.040 --> 0:14:35.440 the sea of central bank doves, and he has turned 0:14:35.440 --> 0:14:39.040 out to kind of maybe lean towards what Chair Powell 0:14:39.120 --> 0:14:41.520 and President Legard are saying as well, which is simply 0:14:41.560 --> 0:14:45.200 that the Bank of England has gone very very hard 0:14:45.320 --> 0:14:48.280 on inflation. What is the lag there? And do we 0:14:48.360 --> 0:14:49.960 now just wait for the lags to catch up with 0:14:50.000 --> 0:14:52.520 the broader economy while we sit on the sidelines and 0:14:52.560 --> 0:14:55.200 reassess And that is something nobody really expected the Bank 0:14:55.200 --> 0:14:57.480 of England to say. What I will say, though, is 0:14:57.480 --> 0:15:00.600 that it's a little bit different because even though they 0:15:00.680 --> 0:15:03.120 might hike tomorrow, which I guess is the consensus call, 0:15:03.200 --> 0:15:05.760 but then that could be its last. They are, or 0:15:05.800 --> 0:15:08.200 at least there is a narrative that they will increase 0:15:08.600 --> 0:15:13.320 their quantitative tightening policy and essentially sell bonds on the 0:15:13.320 --> 0:15:15.040 open market, which could create some disruption. 0:15:15.120 --> 0:15:17.680 There just about a minute left, Critty, We're in day 0:15:17.760 --> 0:15:20.280 six of the United Auto Workers strike. Does this thing 0:15:20.320 --> 0:15:21.440 look like it's expanding. 0:15:22.520 --> 0:15:26.200 It's not expanding yet, but it's not shrinking either. In fact, 0:15:26.240 --> 0:15:28.760 you are seeing a little bit of progress made to 0:15:28.920 --> 0:15:31.440 the north in Canada, where their union will be able 0:15:31.480 --> 0:15:34.160 to make a negotiation with Ford. But again, they do 0:15:34.200 --> 0:15:36.960 say Canadians are nicer than Americans anyway, so maybe that 0:15:37.000 --> 0:15:38.320 has something to do with it. 0:15:38.880 --> 0:15:42.160 Okay, we'll leave it there for now, Kritty Gupta. Bloomberg 0:15:42.240 --> 0:15:46.040 News part of our coverage of the FED decides this 0:15:46.160 --> 0:15:49.880 afternoon two pm Wall Street Time, waiting for the decision 0:15:50.040 --> 0:15:53.720 from Chairman Powell and the Federal Open Market Committee. Powe 0:15:53.720 --> 0:15:56.720 will address the media, of course, at two point thirty 0:15:57.400 --> 0:16:00.000 half hour after the decision. We will have full coverage 0:16:00.080 --> 0:16:02.480 for you on a special edition of Bloomberg Surveillance. The 0:16:02.520 --> 0:16:06.600 FED decides, beginning at one thirty pm. Wall Street Time 0:16:07.000 --> 0:16:10.200 full coverage of Decision Day and all the central banks 0:16:10.600 --> 0:16:13.720 right here on Bloomberg Radio. Now we want to bring 0:16:13.760 --> 0:16:16.920 you to New York and the sidelines of the United 0:16:17.000 --> 0:16:20.280 Nations General Assembly, where we heard from the Mayor of London, 0:16:20.400 --> 0:16:24.960 Sudi Khan. He says UK Prime Minister Rishi Sunak is 0:16:25.200 --> 0:16:28.760 week for pulling back on green policies rather than looking 0:16:28.800 --> 0:16:33.240 for opportunity in the climate crisis. Bloomberg's Francis Laquais sat 0:16:33.280 --> 0:16:34.760 down with the Mayor of London. 0:16:35.400 --> 0:16:38.720 Well, what's happening is some people are trying to weaponize 0:16:39.720 --> 0:16:44.960 climate change, weaponize air pollution. And here's the perversity of 0:16:45.000 --> 0:16:48.400 what Prime Minutes of Sunac is doing. We've seen in 0:16:48.640 --> 0:16:51.760 the UK in September, in London in September, for the 0:16:51.800 --> 0:16:56.440 first time ever, four consecutive days of temperatures north of 0:16:56.520 --> 0:17:01.880 thirty degrees celsius. We saw la year in London, temperatures 0:17:02.280 --> 0:17:06.920 north of forty degrees celsius. Wildfires in London. We've seen 0:17:06.960 --> 0:17:12.040 across Europe and the global North in America, wildfires, droughts, 0:17:12.720 --> 0:17:16.199 heat waves. The response of government should be actually to 0:17:16.240 --> 0:17:21.320 turn this awful crisis into an opportunity, creating green jobs, 0:17:21.680 --> 0:17:24.520 a green new deal, thinking about how we can both 0:17:24.560 --> 0:17:27.920 save the planet, address climate change, but also give people 0:17:27.960 --> 0:17:29.000 security and. 0:17:29.000 --> 0:17:30.360 Have that just transition. 0:17:30.440 --> 0:17:32.879 And this is basically, you know, lazy politics from a 0:17:32.920 --> 0:17:37.680 weak prime minister throwing red meat to his backbenches because 0:17:37.680 --> 0:17:38.879 he's so weak and ineffectual. 0:17:39.320 --> 0:17:39.880 Do you think you. 0:17:39.840 --> 0:17:42.800 Could have been better supported by ker starmarch with you. 0:17:42.760 --> 0:17:46.600 Guys, Well, I recognize that we've got to make sure 0:17:46.680 --> 0:17:51.200 we take people with us. I recognize that addressed people's concerns, 0:17:51.240 --> 0:17:56.040 but concerns. But from Kirstarmer and the Labor Party, what 0:17:56.080 --> 0:17:58.439 I would hope to see him we are seeing is 0:17:58.640 --> 0:18:01.720 plans to address the time. You've got an announcement from 0:18:01.880 --> 0:18:04.560 the Shot of Finance Secretary Rachel Reese saying, you know what, 0:18:05.160 --> 0:18:08.520 in the first term of a Labor government will be 0:18:08.720 --> 0:18:12.600 invested into the tune of twenty eight billion pounds a year, 0:18:12.640 --> 0:18:17.000 which is a wall terms, akin to lot more than 0:18:17.080 --> 0:18:19.240 President Biden's Inflation Reduction Act. 0:18:19.440 --> 0:18:21.600 But Mayor, is it fair to say that you could 0:18:21.640 --> 0:18:24.359 have gotten more support by Drestarma on U les and 0:18:24.400 --> 0:18:26.800 also in the by elections, and you haven't because it's 0:18:26.800 --> 0:18:28.360 now a political hot potato. 0:18:28.720 --> 0:18:31.399 Well, what happened was the by election in Oxbridge and 0:18:31.480 --> 0:18:34.720 Rice that took place a few weeks before the units 0:18:34.840 --> 0:18:38.640 was expanded. People had judguine concerns which we were addressing 0:18:39.000 --> 0:18:41.760 at the same time people were playing on that as well. 0:18:41.760 --> 0:18:43.840 As said Kier and I are are of close friends. 0:18:43.880 --> 0:18:46.119 We've over more than twenty five years. The only thing 0:18:46.160 --> 0:18:49.040 we disagree about is I support a great soccer team, 0:18:49.040 --> 0:18:51.919 great football team Liverpool. He sports a rubbish roun arsenal 0:18:52.080 --> 0:18:52.479 okay pick. 0:18:52.560 --> 0:18:55.000 But apart from football, what kind of advice would you 0:18:55.000 --> 0:18:56.560 give him to win the general election? 0:18:56.840 --> 0:18:58.919 No, I don't give care advice. You know what I 0:18:58.960 --> 0:19:02.199 do is au frenttic care. But also an example of 0:19:02.200 --> 0:19:06.000 what a labor politician winning the difference we can make 0:19:06.040 --> 0:19:10.280 being pro business, supporting businesses to flourish and thrive, being 0:19:10.320 --> 0:19:14.920 pro enterprise, being pro fighting a climate agency, being pro 0:19:15.000 --> 0:19:19.080 clean building, recognumns affordable homes, making sure we invest in 0:19:19.080 --> 0:19:21.400 public transfer and young people. And what O want people 0:19:21.400 --> 0:19:24.960 to see across the country is that that's the difference 0:19:25.560 --> 0:19:29.480 labor winning can make. Compare to contrast to a conservative 0:19:29.520 --> 0:19:32.959 government where there's been economic mismanagement. List trust is all 0:19:32.960 --> 0:19:35.560 from many budget last year, but also a week at 0:19:35.560 --> 0:19:37.080 in effectual Conservative leader. 0:19:37.560 --> 0:19:40.720 What can Labor now do to be closer to businesses? 0:19:40.880 --> 0:19:43.359 There has been a campaign to actually get them on board. 0:19:43.359 --> 0:19:45.680 I think the latest polls show that they be pretty 0:19:45.680 --> 0:19:46.879 happy with the Labor government. 0:19:46.960 --> 0:19:47.720 What would you do more? 0:19:47.960 --> 0:19:50.040 Well, there's two The two things that people want to 0:19:50.080 --> 0:19:54.639 see from good leaders. One is addressing social injustices, but 0:19:54.760 --> 0:19:58.800 also economic competence, supporting businesses, being proud to support businesses, 0:19:58.840 --> 0:20:02.160 being pro businesses, to be pro business. One of the things 0:20:02.200 --> 0:20:04.199