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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: dayba Qit podcast, available every morning on Apple, Spotify or

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Speaker 1: whatever you listen. It's Monday, the twenty ninth of April

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Speaker 1: in London. I'm Caroline Hipkiff.

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Speaker 2: And I'm Stephen Carroll. Coming up today.

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Speaker 3: What sixty thousand headlines analyzed by Bloomberg say about the

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Speaker 3: Federal reserves?

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Speaker 1: Next move, The Japanese yen rebounds after dropping to a

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Speaker 1: thirty four year low against the dollar.

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Speaker 3: Plus shaky foundations why the UK's broken planning system is

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Speaker 3: costing taxpayers more than ever.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 3: An analysis of more than sixty thousand Federal Reserve news

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Speaker 3: headlines shows that Jerome Powell's words in December hinting at

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Speaker 3: a swifter pivot towards rate cuts, gave markets a boost

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Speaker 3: and likely helped the US economy dodge a downturn. Bloomberg

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Speaker 3: Economics FED Sentiment Index paradise by a natural language processing

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Speaker 3: algorithm shows that while Powell's words led to a significant

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Speaker 3: cut in borrowing costs, they also probably added about half

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Speaker 3: a percentage point to inflation over the year. Despite the

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Speaker 3: Fed Chair being forced into a reversal of some of

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Speaker 3: his comments this month, Bloomberg's analysis shows that Powell has

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Speaker 3: only undone a fraction of the stimulus unleashed by his

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Speaker 3: December press conference.

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Speaker 4: Well.

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Speaker 1: The research comes ahead of Wednesday's FED decision, where investors

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Speaker 1: will once again be scrutinizing the chair's comments for clues

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Speaker 1: about how long the central bank keeps rates high. Here's

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Speaker 1: what Goldman's Chief Asia economist Andrew Tilton is expecting.

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Speaker 4: He needs to keep the options open for the FED

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Speaker 4: after a set of upside surprises to inflation in the

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Speaker 4: first quarter. We don't know for sure whether it we'll

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Speaker 4: see inflation down to target in time for the FED

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Speaker 4: to begin cutting by midyear. Our forecast we think the

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Speaker 4: Fed starts cutting in July. We think we'll see a

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Speaker 4: lower run rate of inflation in Q two and beyond,

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Speaker 4: but that's still a forecast.

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Speaker 5: Not a fact.

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Speaker 1: Andrew Tilton's outlook comes as markets suggests that Fed policymakers

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Speaker 1: have shifted the debate from how many times as central

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Speaker 1: bank will cut rates to whether to ease at all

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Speaker 1: this year. Swaps traders now see only one reduction for

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Speaker 1: twenty twenty four. Despite increased pessimism, though on easing. Early

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Speaker 1: results from the current reporting season suggests eighty one percent

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Speaker 1: of US companies are outperforming expectations even against the backdrop

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Speaker 1: of elevated rates.

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Speaker 3: They've been major swings and the value of the yen

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Speaker 3: in trading today, the Japanese currency weakening past one hundred

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Speaker 3: and sixty to the dollar for the first time since

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Speaker 3: nineteen ninety before strongly rebounding. Traders are on high alert

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Speaker 3: for signs of intervention from Japanese authorities. Our Markets Live

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Speaker 3: Asia lead Garfield Reynolds says they don't have a lot

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Speaker 3: of options considering the wide gulf and interest rates with

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Speaker 3: the United States.

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Speaker 5: Yes, the BOJO is on a tightening path, but that's

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Speaker 5: a slow path that makes it hard for the Ministry

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Speaker 5: of Finance to come in strongly to drive the dollar

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Speaker 5: yen down, especially when everything else is busy driving the

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Speaker 5: dollar up against everything that's been work.

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Speaker 2: Scarf Ranald was there last week.

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Speaker 3: The Bank of Japan indicated financial conditions will remain easy,

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Speaker 3: though policymakers have repeatedly warned that depreciation won't be tolerated

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Speaker 3: if it goes too far too fast.

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Speaker 1: Now to politics that Scotland's first Minister, hums A Yusif,

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Speaker 1: may step down, according to UK media reports. The Sunday

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Speaker 1: Times says he's preparing to resign today, but the BBC

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Speaker 1: say that the SNP leader has not yet made a

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Speaker 1: final decision on his position. The speculation comes Asham's the

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Speaker 1: use of prepares to face two no confidence votes this week.

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Speaker 1: Former chief of staff to Nicholas Sturgeon, Liz Lloyd Toblinberg

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Speaker 1: even surviving the votes would bring further uncertainty.

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Speaker 6: For Yousef if you to that the government is fundamentally

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Speaker 6: unstable cannot govern, essentially in hock to Alex Ammon's Alba Party.

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Speaker 6: There will be people on his own ventures who will

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Speaker 6: not be happy with that. So he's kind of stuck

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Speaker 6: between a rock and a hard place.

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Speaker 1: Liz Lloyd, speaking there on Bloomberg's UK Politics podcast. Yusuf

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Speaker 1: had been trying to rebuild the SNP's image after a

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Speaker 1: year of turmoil in the wake of the departure of

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Speaker 1: a longtime leader, Nikola Sturgeon.

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Speaker 3: Roinld Geiger already owns more than seventy percent of lock

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Speaker 3: Sititan now, the Skincare chairman reportedly is considering an offer

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Speaker 3: for the shares he doesn't already own through an investment vehicle.

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Speaker 3: Bloomberg's team at a BAIO has the details.

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Speaker 7: The billionaire chairman of skincare brand Loxi ten has his

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Speaker 7: site set on taking the company private. Sources say that

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Speaker 7: an offer could soon be made, valuing the firm at

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Speaker 7: around seven billion dollars. Blackstone and Goldman Sachs are poised

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Speaker 7: to fund the buyout, providing a total of one point

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Speaker 7: six billion dollars. Bloomberg has learned. This is the second

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Speaker 7: time this month that Geiger has reported come close to

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Speaker 7: a deal to take LuxI ten private. In London, Tea

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Speaker 7: Adebayo Bloomberg Radio.

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Speaker 1: The United States is stepping up the push for both

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Speaker 1: a girls A ceasefire and for the release of hostages.

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Speaker 1: Israel's Foreign minister says that if there is a hostage deal,

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Speaker 1: they will suspend a planned invasion of the girls and

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Speaker 1: city of Rafa. Bloombergs Ed Baxter has more.

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Speaker 8: This comes with Secretary of Sir Anthony Blincoln visiting Israel

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Speaker 8: today and meeting with Israeli officials. The White House says

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Speaker 8: Israel has now agreed to hear concerns NSA spokesman John

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Speaker 8: Kirby says six weeks.

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Speaker 9: If we can get that in place, then that gives

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Speaker 9: you six weeks of peace. It gives you no fighting

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Speaker 9: for six weeks, and that includes no fighting in Rafa.

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Speaker 9: And what we're hoping is that after six weeks of

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Speaker 9: a temporary ceasefire, we can maybe get something more enduring

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Speaker 9: in place.

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Speaker 8: Kirby says Israel has agreed that there will be no

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Speaker 8: attack on Rafa until the US concerns are heard. He

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Speaker 8: says we'll see where that goes at Baxter Bloomberg Radio.

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Speaker 1: Meanwhile, the US diplomatic effort comes as The New York

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Speaker 1: Times reports that Israel believes the International Criminal Court is

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Speaker 1: preparing to issue arrest warrens. The warrants would be for

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Speaker 1: senior Israeli government officials on charges related to the conflict

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Speaker 1: with Hamas, according to five Israeli and foreign officials.

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Speaker 3: Bloomberg has learned that Tesla will partner with bay Do

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Speaker 3: to bring its assisted driving feature to China after CEO

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Speaker 3: Elon Musk made a surprise visit to the country. The

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Speaker 3: move may generate so much needed revenue for the electric

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Speaker 3: car maker as it faces stiff competition from rivals like expung,

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Speaker 3: Jaumi and Huaweis spoke only very briefly to reporters on

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Speaker 3: the visit to praise China's EV firms.

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Speaker 6: It's good to see electric pickles making privates. To China,

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Speaker 6: all pass will be electric.

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Speaker 7: In the future.

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Speaker 3: Elon Musk's trip comes days after Tesla announced it had

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Speaker 3: suffered its first year on year decline in quarterly revenue

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Speaker 3: since twenty twenty. The EV maker says it's cutting headcount

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Speaker 3: by at least ten percent and looking to accelerate new

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Speaker 3: models as it looks to get back to growth. And

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Speaker 3: we're going to get more on those moves in the

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Speaker 3: Yen in a moment, as well as look ahead to

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Speaker 3: this week's Federal Reserve meeting, plus a story on how

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Speaker 3: UK taxpayers are picking up the bill for failings in

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Speaker 3: the country's planning laws.

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Speaker 2: But another story that caught our eye this morning. Last

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Speaker 2: year we.

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Speaker 3: Were worried about heat flation driving up food prices, high

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Speaker 3: temperatures making it more difficult for crop growers. This year,

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Speaker 3: the operative word is sogflation.

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Speaker 1: Yes, I totally get that, because I spent most of

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Speaker 1: the weekend trudging around in the rain. And although there

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Speaker 1: are predictions actually of another very hot summer in Europe.

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Speaker 1: This summer, including in the UK, we just had an

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Speaker 1: unbelievable amount of rain and that is also having an

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Speaker 1: effect on prices.

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Speaker 3: Yeah, this means that particular for crop growers. Think about

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Speaker 3: potato growers. For example, poor weather condition's last autumn meant

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Speaker 3: that harvesting had to stop after just three weeks, so

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Speaker 3: that meant that farmers couldn't get soil, couldn't get crops

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Speaker 3: rather out of the ground. The estimate from one industry

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Speaker 3: group is six hundred and fifty thousand metric tons of

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Speaker 3: potatoes didn't make it to market. There now warning about

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Speaker 3: a twenty percent decrease in seed availability for this year.

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Speaker 3: Potato prices have shot through the roof of eighty one

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Speaker 3: percent year on year. There could be further increases to come.

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Speaker 3: Our opinion columnist Lara Williams has been writing about this.

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Speaker 3: Her piece on the Terminal on sogflation well worth of

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Speaker 3: read this morning.

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Speaker 1: Yeah, absolutely, how Europe has seen one of the wettest

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Speaker 1: periods on record for many many places, so an interesting

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Speaker 1: read this morning.

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Speaker 3: Let's get more now on some of those moves that

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Speaker 3: we've seen in the Japanese yend This morning, we saw

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Speaker 3: the currency at one point wee can past one hundred

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Speaker 3: and sixty to the dollars, so fresh thirty four year low,

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Speaker 3: now bouncing back up one point eight percent on the

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Speaker 3: day to just over one hundred and fifty five. At

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Speaker 3: this point, the dollars so traders have been on a

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Speaker 3: lurt for intervention from the Finance Ministry. Mary Nikola, fin

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Speaker 3: Bloomberg's Markets Live team joins us now for more Mare.

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Speaker 2: Great to have you on the program.

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Speaker 3: How do you characterize the moves that we've seen in

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Speaker 3: the Japanese yend today?

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Speaker 10: Oh, it's been an interesting morning to say the least,

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Speaker 10: because we thought that it would be quiet, especially with

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Speaker 10: Japan out for a holiday today. However, that's not what

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Speaker 10: we've seen. We've seen it go to one hundred and

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Speaker 10: sixty and then bounce back now towards around one fifty five.

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Speaker 10: So obviously there's very there's thin trading, so very small

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Speaker 10: moves can make can make a difference whether people are

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Speaker 10: profit taking or whether you know, people are just decided

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Speaker 10: or there could be intervention as well. So it's hard

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Speaker 10: to tell, especially with liquidity so thin, what's really driving these.

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Speaker 1: Moves okay, So on intervention watch then in Japan, despite

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Speaker 1: the holiday, and Mary, we're also looking ahead towards Wednesday's

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Speaker 1: FED decision and how much Friday sticky PCE reading will

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Speaker 1: actually influence policymakers thinking.

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Speaker 10: Yeah, there is no question that there's rising expectation and

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Speaker 10: there will be much more hawkish rhetoric from the Fed,

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Speaker 10: and they're going to have to emphasize that need to

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Speaker 10: stay patient when it comes to cutting interest rates because

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Speaker 10: the fact is the environment, whether we're looking at the

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Speaker 10: labor market or inflation, they're dual mandate. It doesn't justify

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Speaker 10: rate cuts just yet. So I think a lot of

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Speaker 10: that messaging is going to be hammered in from the

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Speaker 10: FED and we're going to see that come through, and

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Speaker 10: that actually makes things a little bit difficult for the

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Speaker 10: Ministry of Finance in Japan, who if we continue to

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Speaker 10: see to your yields drift higher a lot of the

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Speaker 10: if they consider intervention it might prove to be ineffective.

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Speaker 3: This as Mary, we've been reporting on this later story

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Speaker 3: from Bloomberg Economics FED Sentiment Index as well, looking at

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Speaker 3: the impact that Jerome Pals December pivot has had on

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Speaker 3: markets and on the economy. How does this analysis help

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Speaker 3: us to understand that both the dilemma the FED is

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Speaker 3: in now, but also the power that that particular press

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Speaker 3: conference has.

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Speaker 10: Yeah, I mean you come in December and I was

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Speaker 10: the same. I was convinced that we're going to get

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Speaker 10: FED cuts and seven cuts looked actually and the market

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Speaker 10: was pricing in about seven cuts and that almost looked

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Speaker 10: realistic and plausible after the FED meeting, especially because we

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Speaker 10: were seeing PCE trending lower. So a lot of the

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Speaker 10: stars were aligned, so to speak, for the FED to

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Speaker 10: start cutting. And then, of course that's shifted when you

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Speaker 10: have three three months of data showing that inflation is

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Speaker 10: moving in the opposite direction, showing that inflation remains sticky.

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Speaker 10: It's hard for the FED to renee and go against

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Speaker 10: anything that they've go against the inflation and say that

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Speaker 10: they're going to start cutting this. So now we've moved

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Speaker 10: from pricing in about seven to pricing in about one,

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Speaker 10: and now it's going to be does it get pushed

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Speaker 10: out even further or do they even consider that maybe

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Speaker 10: financial conditions are too easy and they might have to

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Speaker 10: hike again.

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Speaker 1: Yeah, it's certainly again another important moment isn't it the

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Speaker 1: FED decision on Wednesdays? Of course, Mary Mary Nichola, thank

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Speaker 1: you so much for being with us. From Bloomberg's Markets

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Speaker 1: Live team.

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Speaker 3: Now, an exclusive report from Bloomberg has revealed the British

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Speaker 3: taxpayers are paying the most on record to cover the

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Speaker 3: costs of developers successfully appealing planning applications that were previously

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Speaker 3: rejected by local councils, and highlighted yet another consequence of

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Speaker 3: the country's broken planning system, which is causing massive delays

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Speaker 3: in home building and worsening a housing shortage that's.

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Speaker 2: Become a key election talking point.

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Speaker 3: With the story from Bloomberg's residential real estate reporter, Damian

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Speaker 3: Shepherd joins us now for more, Damien good mourning. What

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Speaker 3: is it about the planning process and it's becoming such

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Speaker 3: a burdened taxpayers.

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Speaker 11: Yes, So, the UK planning process is a very democratic

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Speaker 11: system and the local residents are invited to share their

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Speaker 11: views with the council when an applicant puts in a

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Speaker 11: decision to build homes. Now, this is great from the

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Speaker 11: point of view that a resident can make decisions on

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Speaker 11: how their local area looks, but the drawback is that

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Speaker 11: it can lead to a prevalent amount of nimbiism and

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Speaker 11: the blocking of house building in an area. Now, what

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Speaker 11: we're seeing a record amount of is planning applications being

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Speaker 11: rejected at the first stage, so residents are being invited

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Speaker 11: to share their views them and the councilors are deciding

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Speaker 11: we don't want to see this down our road, and

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Speaker 11: they're then going on to be approved by an independent body,

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Speaker 11: the Planning Inspectorate, which is fully funded by the taxpayer.

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Speaker 11: So this exclusive report is revealing a real cost to

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Speaker 11: the tax payer for applications that on papers should have

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Speaker 11: been approved in the first place, but were blocked by nimbiism.

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Speaker 1: Okay, so then how do the delays affect people's ability

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Speaker 1: then to buy homes that kind of follow through issues.

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Speaker 11: Yeah, so, I mean the drawback is that we're seeing

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Speaker 11: a lack of supply. You know, we've spoken a lot

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Speaker 11: about the lack of housing in the UK, and if

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Speaker 11: we're seeing these bottlenecks happening in houses being built, then

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Speaker 11: it's just delaying the amount of stock that's coming through

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Speaker 11: to the market and propping up house prices at a

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Speaker 11: time when people are really struggling to pull together enough

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Speaker 11: money to even go and do their food shop. So

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Speaker 11: that's why less people are getting on the housing ladder,

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Speaker 11: more people are stuck in the rental market, and ultimately

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Speaker 11: less homes are being built, and we're going to see

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Speaker 11: this be more and more of a big topic of

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Speaker 11: conversation as the election nears.

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Speaker 3: Is this just about residents saying they don't want developments

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Speaker 3: built closer to them? Are there deeper problems in reflected

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Speaker 3: in this reporting as well, Damien, Yeah.

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Speaker 11: It's definitely not the only issue, I think, even if

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Speaker 11: you take nimbiasm away from the planning system. This is

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Speaker 11: the third in a series of planning exclusives we've done

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Speaker 11: which have revealed a massive lack of staff in these

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Speaker 11: planning departments, a huge lack of funding coming to them.

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Speaker 11: So we're seeing eighty percent of major applications not being

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Speaker 11: decided in time anyway by a local authority. So there's

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Speaker 11: a lot of things here which are impacting the delivery

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Speaker 11: of planning and the ultimate consequence is that there's tens

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Speaker 11: and thousands of houses stuck in the planning system which

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Speaker 11: aren't coming out of the ground, and more and more

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Speaker 11: people speaking down the pub about how they can't afford

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Speaker 11: a heit.

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Speaker 3: stories making news from London to Wall Street and beyond.

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Speaker 3: Break Europe.

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Speaker 7: He