WEBVTT - Stocks Fall; Hollywood Strike Progress

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 3>Karen, Central Banks once again our major focus around the world.

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<v Speaker 3>Following yesterday's FED decision, Jay Powell and company kept rates

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<v Speaker 3>unchanged but signaled they're going to stay higher for longer.

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<v Speaker 4>We're prepared to raise rates further if appropriate, and we

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<v Speaker 4>intend to hold policy at a restrictive level until we're

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<v Speaker 4>confident that inflation is moving down sustainably toward our objective.

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<v Speaker 3>Jay Powell and the Fed held their target range, while

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<v Speaker 3>updated quarterly projections showed most officials favored another rate hike

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<v Speaker 3>this year. Policymakers also seet less easing next year.

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<v Speaker 2>Well after that decision, Nathan, former New York Fed President

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<v Speaker 2>Bill Dudley said, there's work to do to get inflation

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<v Speaker 2>down to two percent.

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<v Speaker 4>There have been a little bit of an upward movement

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<v Speaker 4>in people's estimates of the long term Federal fund trate

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<v Speaker 4>in the summary of.

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<v Speaker 2>That projections first in June and again this month.

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<v Speaker 5>So what basically the Fed is concluding is many mantre

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<v Speaker 5>policies not quite as as we think it is.

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<v Speaker 2>And Bill Dudley is now a Bloomberg opinion columnist. He

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<v Speaker 2>added that he thinks a rate hike in November would

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<v Speaker 2>be surprising.

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<v Speaker 6>Well.

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<v Speaker 3>Karen one Wall Street Titan says the Fed needs to

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<v Speaker 3>be more aggressive. JP Morgan Chase CEO Jamie Diamond says

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<v Speaker 3>the Fed may have to keep increasing its benchmark interest

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<v Speaker 3>rates to combat persistent inflation. Speaking in Detroit yesterday, Diamond

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<v Speaker 3>said the Central Bank was quote a day late and

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<v Speaker 3>a dollar short, and rapid increases over the last eighteen

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<v Speaker 3>months have just been catching up.

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<v Speaker 2>Well, we get another major policy decision later today, Nathan.

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<v Speaker 2>The Bank of England will design whether to call a

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<v Speaker 2>halt to the string of fourteen consecutive interest rate increases,

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<v Speaker 2>and Bloomberg's Lizzie Burden has the preview from London.

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<v Speaker 7>The chance that the Bank of England slams the brakes

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<v Speaker 7>on its fastest run of rate hikes in decades today

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<v Speaker 7>rose after yesterday's happy inflation surprise. Still a quarter point

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<v Speaker 7>height does remain on the table. With wage growth hot

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<v Speaker 7>and inflation expectations raging, all eyes will be on the

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<v Speaker 7>guidance surrounding today's decision today whether if the Bank of

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<v Speaker 7>England does hike, this will be its last the question

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<v Speaker 7>being oh at the peak of Table Mountain, as the

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<v Speaker 7>governor and chief economist have hinted. Lizzie Burden Bloomberg Radio.

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<v Speaker 3>Okay, Lizzie, thanks. Back here in the US, a possible

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<v Speaker 3>government shutdown is less than ten days away, but House

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<v Speaker 3>Speaker Kevin McCarthy is reporting some progress in negotiations. We

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<v Speaker 3>get the details from Bloomberg's Amy Morris in Washington.

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<v Speaker 8>Speaker McCarthy won the support of a few hardliners last

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<v Speaker 8>night as he worked to pass a short term spending

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<v Speaker 8>bill to head off a government shutdown. After the closed

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<v Speaker 8>door meeting that lasted more than two hours, McCarthy was

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<v Speaker 8>still short the votes that he needs to pass a

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<v Speaker 8>GOP spending measure, a measure that has no chance of

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<v Speaker 8>passing the Senate, but he says they are closer and

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<v Speaker 8>if he does succeed, the measure would at least set

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<v Speaker 8>parameters for a possible negotiation with the Senate on federal spending.

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<v Speaker 8>In Washington, I'm Amy Morris, Bloomberg Radio.

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<v Speaker 1>All right, Amy, thanks well.

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<v Speaker 2>A major flashpoint in a Capitol Hill spending fight will

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<v Speaker 2>come into focus when Vladimir Zelenski comes to Washington. The

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<v Speaker 2>Ukrainian president will be on Capitol Hill this morning pushing

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<v Speaker 2>for a new weapons package, But Speaker Kevin McCarthy says

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<v Speaker 2>his fellow Republicans have questions.

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<v Speaker 8>These are hard working taxpayer dollars.

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<v Speaker 1>I want to make sure there's accountability where the resources

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<v Speaker 1>are going.

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<v Speaker 2>I want to see a plan of what we're looking

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<v Speaker 2>for for victory, and I think members will sit and

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<v Speaker 2>have their questions as well. Speaker Kevin McCarthy is under

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<v Speaker 2>pressure from far right conservatives who want to end US assistants.

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<v Speaker 2>The White House says it's confident the vast majority of

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<v Speaker 2>lawmakers still support Ukraine aid, and seeing Zelenski in person

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<v Speaker 2>could dampen any opposition.

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<v Speaker 3>That's why what's happening in the war now. Karen Russia

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<v Speaker 3>just launched its most intensive missile barrage this month. The

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<v Speaker 3>Mayor of Kiev says at least seven people were hurt

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<v Speaker 3>when at least twenty missiles were shot down. Seven others

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<v Speaker 3>were hurt in a strike on a hotel in central Ukraine.

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<v Speaker 3>Russia meanwhile reported nineteen Ukrainian drone attacks on Crimea.

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<v Speaker 2>Well, Nathan, we have new developments now involving two major

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<v Speaker 2>labored disputes across the country. The Writers Guild of America

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<v Speaker 2>and the group representing major Hollywood studios will meet for

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<v Speaker 2>a second day. Sources say the studios have agreed to

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<v Speaker 2>one of the union's major demands, additional payments for the

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<v Speaker 2>success of TV shows on streaming services. The guild will

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<v Speaker 2>give its response later today.

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<v Speaker 3>Well, there's not as much optimism involving the autoworkers strike Careen.

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<v Speaker 3>A union negotiator says Stalantis's new contract offer to the

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<v Speaker 3>United Auto Workers lacks job security guarantees. UAW will now

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<v Speaker 3>have a Facebook live event tomorrow morning. It's likely to

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<v Speaker 3>discuss whether additional plants will face strikes.

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<v Speaker 2>Well, let's turn to Wall Street now. Nathan shares a

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<v Speaker 2>FedEx F five percent in early trading, the company posting

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<v Speaker 2>profit that beat analyst estimates, and the company raising its

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<v Speaker 2>earnings forecast. We get more from Bloomberg's Doug Chrisner.

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<v Speaker 9>FedEx is benefiting from cost cutting. Earlier this year, the

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<v Speaker 9>company announced a multi year restructuring to reduce cost and

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<v Speaker 9>improve efficiency by six billion dollars. But that's not the

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<v Speaker 9>whole story. FedEx added customers who switched from UPS, its

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<v Speaker 9>main rival, on concern over a potential strike, and on

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<v Speaker 9>top of that, the freight unit of FedEx picked up

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<v Speaker 9>some volume from Trucker Yellow Corporation. You might recall Yellow

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<v Speaker 9>declared bankruptcy in early August in New York. I'm Doug Krisner,

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<v Speaker 9>Bloomberg Radio.

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<v Speaker 3>All right, Doug, thanks for also watching. Shares of Broadcom.

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<v Speaker 3>They're down more than five percent. The information is reporting

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<v Speaker 3>that Google executives are discussing dropping Broadcom as an AI

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<v Speaker 3>chip supplier as early as twenty twenty seven.

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<v Speaker 2>And finally, Nathan, that didn't last very long. Instacar, the

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<v Speaker 2>grocery delivery giant that soared as much as forty three

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<v Speaker 2>percent in its trading debut two days ago, has now

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<v Speaker 2>wiped out virtually all of those gains. The stock film

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<v Speaker 2>nearly eleven percent yesterday and closed just ten cents above

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<v Speaker 2>the thirty dollars level from its initial public offering. It's

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<v Speaker 2>time now for a look at some of the other

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<v Speaker 2>stories making news around the world, and for that we're

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<v Speaker 2>joined by Bloomberg's Amy Morris. Amy, Good morning, Good morning, Karen.

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<v Speaker 8>Air Force General Charles Q. Brown Junior is set to

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<v Speaker 8>become america top military officer. This is the first Pentagon

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<v Speaker 8>confirmation since a recent blockade on military promotions by Alabama

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<v Speaker 8>Senator Tommy Turberville, who claimed, or rather who blames Democrats

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<v Speaker 8>for the delay of the vote.

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<v Speaker 10>Instead of voting, Democrats have spent months complaining about having

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<v Speaker 10>to vote. They want us to use floor time for

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<v Speaker 10>things like liberal judges, like the one we confirmed a

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<v Speaker 10>couple hours ago.

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<v Speaker 8>It was actually Turberville who had blocked military personnel moves

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<v Speaker 8>for months because he wants to overturn a Pentagon policy

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<v Speaker 8>of granting leave and travel expenses for service members who

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<v Speaker 8>seek abortion services. An age limit for politicians is being

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<v Speaker 8>proposed in Congress. It is not sitting well with some

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<v Speaker 8>of the older lawmakers. Texas Congresswoman Sheila Jackson Lee is

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<v Speaker 8>seventy three years old, and she would have only two

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<v Speaker 8>years left under this proposal, which caps political service at

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<v Speaker 8>age seventy five.

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<v Speaker 10>It undermines the people's ability to run their government as

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<v Speaker 10>they choose.

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<v Speaker 8>Jackson Lee says it would be a to voters to

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<v Speaker 8>decide if someone is just too old to serve in office.

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<v Speaker 8>Former President Donald Trump reportedly plans to skip the third

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<v Speaker 8>Republican presidential debate that continues his strategy of avoiding forums

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<v Speaker 8>that include his lower polling political rivals. Trump did not

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<v Speaker 8>show up for the first debate. He said he won't

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<v Speaker 8>participate in the second debate, and that's coming up on

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<v Speaker 8>September twenty seventh at Reagan Presidential Library, and Trump has

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<v Speaker 8>questioned the benefit of debating at all because he holds

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<v Speaker 8>such a wide lead over the rest of the GOP field.

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<v Speaker 8>A family is suing Google for negligence, saying its outdated

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<v Speaker 8>navigation system led to their father's death. A family's attorney,

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<v Speaker 8>Robert Zimmerman, says multiple people had been notifying Google Maps

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<v Speaker 8>about a bridge collapse, but nothing was done to update

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<v Speaker 8>the app's route information.

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<v Speaker 6>For years, Google attempted to lead people over a collapse

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<v Speaker 6>bridge despite being notified by users of this exact danger.

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<v Speaker 8>Forty seven year old Philip Paxson was using Google Maps

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<v Speaker 8>phoned from his daughter's birthday party outside Charlotte, North Carolina,

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<v Speaker 8>last year, when Google Maps led him down a road

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<v Speaker 8>onto the bridge that had collapsed nearly ten years ago

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<v Speaker 8>and had never been repaired. Global News twenty four hours

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<v Speaker 8>a day, powered by more than twenty seven hundred journalists

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<v Speaker 8>and analysts in more than one hundred twenty countries. I'm

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<v Speaker 8>Amy Morrison. This is Bloomberg Karen right.

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<v Speaker 2>Amy, Thank you, and I'll get the latest news whenever

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<v Speaker 2>you wanted with Bloomberg News Now. It's the top stories

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<v Speaker 2>from our global team of reporters at the click of

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<v Speaker 2>a button. Get Bloomberg News Now on the Bloomberg Business app,

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<v Speaker 2>Bloomberg dot com, and anywhere you get your podcasts. It's

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<v Speaker 2>time now for the Bloomberg Sports Update. Here's John stash Hour.

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<v Speaker 5>John. Yeah, and these are not good times with the

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<v Speaker 5>Chicago Bears. They're owing to They lost twelve games in

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<v Speaker 5>a row going back to last season. Their defensive quider

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<v Speaker 5>Alan Williams is taking a leave of absence. He didn't

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<v Speaker 5>coach the game last Sunday. He says it's for health reasons.

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<v Speaker 5>There was a report that the FBI just raiding his home.

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<v Speaker 5>Quarterback Justin Field struggled last Sunday. He said his play

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<v Speaker 5>was too robotic, and he was asked why that was

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<v Speaker 5>the case.

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<v Speaker 10>It could be.

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<v Speaker 11>Coaching, I think, But you know, at the end of

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<v Speaker 11>the day, it makes it. You know they're doing their

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<v Speaker 11>job when they're giving me, you know, what's look at

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<v Speaker 11>stuff like that. But at the end of the day,

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<v Speaker 11>I you know, can't be thinking about that when the

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<v Speaker 11>game comes out, preparing myself throughout the week, and then

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<v Speaker 11>when the game comes it's, you know, it's time to

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<v Speaker 11>play free. At that point, so.

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<v Speaker 5>Field said his comments were taken out of context in

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<v Speaker 5>terms of criticizing the coaching staff. Week three begins tonight,

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<v Speaker 5>the Giants coming up that big comeback win last Sunday

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<v Speaker 5>at Arizona visiting the forty nine ers, who are two

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<v Speaker 5>to zero. It's their home opener. Baseball, the Orioles lost

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<v Speaker 5>in Houston two to one, Astro scoring in the eighth

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<v Speaker 5>to ninth innings to stay in first place in the

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<v Speaker 5>Al West. Nationals were up twelve to nothing in the

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<v Speaker 5>fifth that he went on to beat the White Sox

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<v Speaker 5>thirteen to three. The Red Sox led early on four

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<v Speaker 5>to nothing, then lost to Texas fifteen to five. Rangers

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<v Speaker 5>hit four home runs. A's lost at home to Seattle

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<v Speaker 5>sixty two. The Giants fell to five hundred. They're out

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<v Speaker 5>of it pretty much for a wildcard. They lost at

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<v Speaker 5>Arizona seven to one. That Diamondbacks keep the lead for

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<v Speaker 5>the second National League wildcard. Talks dash that were.

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<v Speaker 12>Bloomberg'sport from coast to coast, from New York to San Francisco,

0:10:18.559 --> 0:10:23.199
<v Speaker 12>Boston to Washington, DC, nationwide on Syrias, exam the Bloomberg

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<v Speaker 12>Business app in Bloomberg dot com. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning. I'm Nathan Hager. They're almost done raising rates,

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<v Speaker 3>but the fight against inflation is far from over. That

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<v Speaker 3>was the message j. Powell and the Federal Reserve had

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<v Speaker 3>for markets as they kept interest rates unchanged for now.

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<v Speaker 4>We will continue to make our decisions meeting by meeting

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<v Speaker 4>based on the totality of the incoming data and their

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<v Speaker 4>implications for the outlook for economic activity and inflation, as

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<v Speaker 4>well as the balance of risks. Given how far we

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<v Speaker 4>have come, we are in a position to proceed carefully

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<v Speaker 4>as we assess the incoming data and the evolving outlook

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<v Speaker 4>and risks.

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<v Speaker 3>For more on the Fed's decision and more central bank

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<v Speaker 3>decisions to come, we are joined by Bloomberg opinion columnist

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<v Speaker 3>Marcus Ashworth. Marcus, good morning. We can now proceed carefully.

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<v Speaker 3>We heard that a lot from Chairman Powell. What message

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<v Speaker 3>do you take from that?

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<v Speaker 6>Well, I think that what I like about Powell is

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<v Speaker 6>that he's basically saying they don't really have any clear

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<v Speaker 6>idea what's going on. But he's not rushed into judgment

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<v Speaker 6>one way or another. The bias is still to Titan,

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<v Speaker 6>even though that may not mean much or anything at all.

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<v Speaker 6>In fact, you know, at the moment, the economy is

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<v Speaker 6>too strong to talk about rate cuts at any point,

0:11:37.520 --> 0:11:39.320
<v Speaker 6>or any need to talk about rate cuts, and he

0:11:39.320 --> 0:11:41.679
<v Speaker 6>wants to make sure that doesn't get rapidly priced in

0:11:41.800 --> 0:11:44.600
<v Speaker 6>is the markets often want to do. I don't think

0:11:44.640 --> 0:11:47.880
<v Speaker 6>he's got much time for the dop plots, the summary

0:11:47.880 --> 0:11:51.400
<v Speaker 6>of economic productions. I think you find it a distraction. Unfortunately,

0:11:51.400 --> 0:11:53.600
<v Speaker 6>the more he says, don't look at them and don't

0:11:53.640 --> 0:11:55.720
<v Speaker 6>mean much, and they may change, and their clearly as

0:11:55.760 --> 0:12:00.000
<v Speaker 6>they're changes as the winds blow in different directions. Unfortunately,

0:12:00.760 --> 0:12:02.440
<v Speaker 6>the media seems to take it more and more, situs

0:12:02.440 --> 0:12:04.600
<v Speaker 6>they've got nothing else to hang the hat on, because

0:12:04.640 --> 0:12:06.560
<v Speaker 6>as he's saying, it's difficult at the moment, it's an

0:12:06.600 --> 0:12:09.480
<v Speaker 6>unclear picture. We're taking it, you know, as as we

0:12:09.559 --> 0:12:12.120
<v Speaker 6>go along. At the moment, there's no need to hike

0:12:12.240 --> 0:12:15.280
<v Speaker 6>rates further. You know, inflation in compared to the rest

0:12:15.280 --> 0:12:16.800
<v Speaker 6>of the world, inflation in the US is actually doing

0:12:16.880 --> 0:12:21.360
<v Speaker 6>pretty well. It's coming down nicely. But you know, look

0:12:21.400 --> 0:12:25.880
<v Speaker 6>he's doing as as competent a job as you can expect.

0:12:26.800 --> 0:12:30.240
<v Speaker 6>I really wouldn't read too much into what perhaps the

0:12:31.000 --> 0:12:33.920
<v Speaker 6>people think that the Fed wants to do by the

0:12:33.960 --> 0:12:36.400
<v Speaker 6>rest of this year or even the next. And I

0:12:36.440 --> 0:12:39.120
<v Speaker 6>still think they will they will stay where they are,

0:12:39.240 --> 0:12:41.760
<v Speaker 6>and I don't expect to see another rate hike. But

0:12:41.960 --> 0:12:44.760
<v Speaker 6>you know, Pal just doesn't want to get the opposite

0:12:44.880 --> 0:12:47.199
<v Speaker 6>priced into quickly wherever races to think there's going to

0:12:47.240 --> 0:12:48.040
<v Speaker 6>be rate cuts.

0:12:47.800 --> 0:12:49.800
<v Speaker 3>Because see, you don't think that the DoD plood is

0:12:49.840 --> 0:12:52.679
<v Speaker 3>a reflection of what the Chairman had to say in

0:12:52.679 --> 0:12:55.360
<v Speaker 3>his message. I mean, we had, you know, a dozen

0:12:55.440 --> 0:12:58.160
<v Speaker 3>policymakers saying they do see another rate hike, and it

0:12:58.240 --> 0:13:01.040
<v Speaker 3>sounded like Chairman Powell was keeping the door open to that.

0:13:02.000 --> 0:13:03.960
<v Speaker 6>No, he's keeping the door open. I just don't think

0:13:04.040 --> 0:13:06.080
<v Speaker 6>that they will go through that door. And I don't

0:13:06.120 --> 0:13:09.199
<v Speaker 6>think Powell thinks that either. But you know, he can't

0:13:09.280 --> 0:13:12.640
<v Speaker 6>say that because then everyone will think the opposite. So

0:13:12.760 --> 0:13:15.880
<v Speaker 6>for the moment, you know, look, there is a possibility.

0:13:15.960 --> 0:13:19.000
<v Speaker 6>Let's face it, crew prices continue to go higher, and

0:13:19.080 --> 0:13:21.560
<v Speaker 6>hire and go through one hundred that maybe they feel

0:13:21.600 --> 0:13:23.400
<v Speaker 6>they may have to do one more. You know, that

0:13:23.480 --> 0:13:25.480
<v Speaker 6>is that is out of everyone's hands at the moment

0:13:25.480 --> 0:13:28.040
<v Speaker 6>as to what happens there. Of course, there's a possibility,

0:13:28.080 --> 0:13:31.240
<v Speaker 6>and he's very sensible and proven to keep and reflect

0:13:31.360 --> 0:13:34.079
<v Speaker 6>what in essence the dot plot is saying. I just

0:13:34.120 --> 0:13:36.520
<v Speaker 6>don't think he believes in the usefulness of the dot plot.

0:13:36.800 --> 0:13:40.040
<v Speaker 6>But regardless what he's saying, everyone's hanging that hat on

0:13:40.080 --> 0:13:41.959
<v Speaker 6>that because that's all they can they can see through.

0:13:42.000 --> 0:13:44.600
<v Speaker 6>I just don't I think in three months time are

0:13:44.640 --> 0:13:47.400
<v Speaker 6>the chances of that reality of what people think, say

0:13:47.440 --> 0:13:49.840
<v Speaker 6>they think, think they think now and actually doing it

0:13:49.840 --> 0:13:50.680
<v Speaker 6>are two different things.

0:13:51.080 --> 0:13:52.920
<v Speaker 3>Up next, you got the Bank of England. Got a

0:13:52.920 --> 0:13:57.360
<v Speaker 3>lot more interesting here, but the surprise drop in inflation.

0:13:58.080 --> 0:13:59.880
<v Speaker 3>What do you see from the BOE this morning?

0:14:00.080 --> 0:14:02.679
<v Speaker 6>You know, well, I mean the inflation data is better.

0:14:02.840 --> 0:14:05.199
<v Speaker 6>It's been a long time coming. It's about time the

0:14:05.320 --> 0:14:08.120
<v Speaker 6>UK inflation they got better. We've just had some sort

0:14:08.120 --> 0:14:13.040
<v Speaker 6>of very sticky contractual lead food price inflation which is

0:14:13.160 --> 0:14:16.120
<v Speaker 6>finally started a long last start to drop out and

0:14:16.160 --> 0:14:19.800
<v Speaker 6>I think will continue to yes, you know, obviously, like

0:14:19.840 --> 0:14:22.480
<v Speaker 6>I run the rest of the world. Fuel prices has

0:14:22.480 --> 0:14:24.880
<v Speaker 6>been going up and that added about zero point three

0:14:24.920 --> 0:14:28.000
<v Speaker 6>to the headline. You so there's potential for that to

0:14:28.040 --> 0:14:30.560
<v Speaker 6>add more in the extra month or two. But equally,

0:14:30.680 --> 0:14:33.720
<v Speaker 6>if ever oil prices was a drop, it would feed

0:14:33.760 --> 0:14:36.600
<v Speaker 6>strive back out the other way, and clearly energy prices,

0:14:36.640 --> 0:14:38.680
<v Speaker 6>we've still got some more good news to come. So

0:14:38.760 --> 0:14:40.760
<v Speaker 6>I would say that the back of England sort of

0:14:41.320 --> 0:14:43.880
<v Speaker 6>content by that it's finally working its own way. That's

0:14:43.880 --> 0:14:45.080
<v Speaker 6>the way I think they want to get to the

0:14:45.080 --> 0:14:49.800
<v Speaker 6>so called tabletop, which Chief Economishee Pill mentioned. They can't

0:14:49.840 --> 0:14:52.640
<v Speaker 6>really do it unless the FED is clearly on that

0:14:52.720 --> 0:14:56.320
<v Speaker 6>tabletop as well. And indeed, by the fact the European

0:14:56.400 --> 0:14:58.840
<v Speaker 6>Central Bank raise rates one last time, probably the four

0:14:59.360 --> 0:15:01.960
<v Speaker 6>last week, it means I think they will go one

0:15:02.040 --> 0:15:04.240
<v Speaker 6>last move to five and a half and then say, look,

0:15:04.280 --> 0:15:07.040
<v Speaker 6>we're on this table top like everyone else is now

0:15:07.400 --> 0:15:10.120
<v Speaker 6>and we've probably done You know, well, I think too much,

0:15:10.160 --> 0:15:12.640
<v Speaker 6>but they certainly think they've done sufficient to try and

0:15:12.720 --> 0:15:15.960
<v Speaker 6>keep a hold of inflation. They're much more worried about

0:15:16.000 --> 0:15:19.400
<v Speaker 6>wage data than they are by consumer prices, and that's

0:15:19.440 --> 0:15:23.480
<v Speaker 6>the thing that's keeping them ratching in the monetary pain

0:15:23.600 --> 0:15:25.240
<v Speaker 6>up because they really need to get a hold of

0:15:25.600 --> 0:15:29.280
<v Speaker 6>a very very strong wage data.

0:15:30.920 --> 0:15:34.000
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