Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: Karen, Central Banks once again our major focus around the world.
Speaker 3: Following yesterday's FED decision, Jay Powell and company kept rates
Speaker 3: unchanged but signaled they're going to stay higher for longer.
Speaker 4: We're prepared to raise rates further if appropriate, and we
Speaker 4: intend to hold policy at a restrictive level until we're
Speaker 4: confident that inflation is moving down sustainably toward our objective.
Speaker 3: Jay Powell and the Fed held their target range, while
Speaker 3: updated quarterly projections showed most officials favored another rate hike
Speaker 3: this year. Policymakers also seet less easing next year.
Speaker 2: Well after that decision, Nathan, former New York Fed President
Speaker 2: Bill Dudley said, there's work to do to get inflation
Speaker 2: down to two percent.
Speaker 4: There have been a little bit of an upward movement
Speaker 4: in people's estimates of the long term Federal fund trate
Speaker 4: in the summary of.
Speaker 2: That projections first in June and again this month.
Speaker 5: So what basically the Fed is concluding is many mantre
Speaker 5: policies not quite as as we think it is.
Speaker 2: And Bill Dudley is now a Bloomberg opinion columnist. He
Speaker 2: added that he thinks a rate hike in November would
Speaker 2: be surprising.
Speaker 6: Well.
Speaker 3: Karen one Wall Street Titan says the Fed needs to
Speaker 3: be more aggressive. JP Morgan Chase CEO Jamie Diamond says
Speaker 3: the Fed may have to keep increasing its benchmark interest
Speaker 3: rates to combat persistent inflation. Speaking in Detroit yesterday, Diamond
Speaker 3: said the Central Bank was quote a day late and
Speaker 3: a dollar short, and rapid increases over the last eighteen
Speaker 3: months have just been catching up.
Speaker 2: Well, we get another major policy decision later today, Nathan.
Speaker 2: The Bank of England will design whether to call a
Speaker 2: halt to the string of fourteen consecutive interest rate increases,
Speaker 2: and Bloomberg's Lizzie Burden has the preview from London.
Speaker 7: The chance that the Bank of England slams the brakes
Speaker 7: on its fastest run of rate hikes in decades today
Speaker 7: rose after yesterday's happy inflation surprise. Still a quarter point
Speaker 7: height does remain on the table. With wage growth hot
Speaker 7: and inflation expectations raging, all eyes will be on the
Speaker 7: guidance surrounding today's decision today whether if the Bank of
Speaker 7: England does hike, this will be its last the question
Speaker 7: being oh at the peak of Table Mountain, as the
Speaker 7: governor and chief economist have hinted. Lizzie Burden Bloomberg Radio.
Speaker 3: Okay, Lizzie, thanks. Back here in the US, a possible
Speaker 3: government shutdown is less than ten days away, but House
Speaker 3: Speaker Kevin McCarthy is reporting some progress in negotiations. We
Speaker 3: get the details from Bloomberg's Amy Morris in Washington.
Speaker 8: Speaker McCarthy won the support of a few hardliners last
Speaker 8: night as he worked to pass a short term spending
Speaker 8: bill to head off a government shutdown. After the closed
Speaker 8: door meeting that lasted more than two hours, McCarthy was
Speaker 8: still short the votes that he needs to pass a
Speaker 8: GOP spending measure, a measure that has no chance of
Speaker 8: passing the Senate, but he says they are closer and
Speaker 8: if he does succeed, the measure would at least set
Speaker 8: parameters for a possible negotiation with the Senate on federal spending.
Speaker 8: In Washington, I'm Amy Morris, Bloomberg Radio.
Speaker 1: All right, Amy, thanks well.
Speaker 2: A major flashpoint in a Capitol Hill spending fight will
Speaker 2: come into focus when Vladimir Zelenski comes to Washington. The
Speaker 2: Ukrainian president will be on Capitol Hill this morning pushing
Speaker 2: for a new weapons package, But Speaker Kevin McCarthy says
Speaker 2: his fellow Republicans have questions.
Speaker 8: These are hard working taxpayer dollars.
Speaker 1: I want to make sure there's accountability where the resources
Speaker 1: are going.
Speaker 2: I want to see a plan of what we're looking
Speaker 2: for for victory, and I think members will sit and
Speaker 2: have their questions as well. Speaker Kevin McCarthy is under
Speaker 2: pressure from far right conservatives who want to end US assistants.
Speaker 2: The White House says it's confident the vast majority of
Speaker 2: lawmakers still support Ukraine aid, and seeing Zelenski in person
Speaker 2: could dampen any opposition.
Speaker 3: That's why what's happening in the war now. Karen Russia
Speaker 3: just launched its most intensive missile barrage this month. The
Speaker 3: Mayor of Kiev says at least seven people were hurt
Speaker 3: when at least twenty missiles were shot down. Seven others
Speaker 3: were hurt in a strike on a hotel in central Ukraine.
Speaker 3: Russia meanwhile reported nineteen Ukrainian drone attacks on Crimea.
Speaker 2: Well, Nathan, we have new developments now involving two major
Speaker 2: labored disputes across the country. The Writers Guild of America
Speaker 2: and the group representing major Hollywood studios will meet for
Speaker 2: a second day. Sources say the studios have agreed to
Speaker 2: one of the union's major demands, additional payments for the
Speaker 2: success of TV shows on streaming services. The guild will
Speaker 2: give its response later today.
Speaker 3: Well, there's not as much optimism involving the autoworkers strike Careen.
Speaker 3: A union negotiator says Stalantis's new contract offer to the
Speaker 3: United Auto Workers lacks job security guarantees. UAW will now
Speaker 3: have a Facebook live event tomorrow morning. It's likely to
Speaker 3: discuss whether additional plants will face strikes.
Speaker 2: Well, let's turn to Wall Street now. Nathan shares a
Speaker 2: FedEx F five percent in early trading, the company posting
Speaker 2: profit that beat analyst estimates, and the company raising its
Speaker 2: earnings forecast. We get more from Bloomberg's Doug Chrisner.
Speaker 9: FedEx is benefiting from cost cutting. Earlier this year, the
Speaker 9: company announced a multi year restructuring to reduce cost and
Speaker 9: improve efficiency by six billion dollars. But that's not the
Speaker 9: whole story. FedEx added customers who switched from UPS, its
Speaker 9: main rival, on concern over a potential strike, and on
Speaker 9: top of that, the freight unit of FedEx picked up
Speaker 9: some volume from Trucker Yellow Corporation. You might recall Yellow
Speaker 9: declared bankruptcy in early August in New York. I'm Doug Krisner,
Speaker 9: Bloomberg Radio.
Speaker 3: All right, Doug, thanks for also watching. Shares of Broadcom.
Speaker 3: They're down more than five percent. The information is reporting
Speaker 3: that Google executives are discussing dropping Broadcom as an AI
Speaker 3: chip supplier as early as twenty twenty seven.
Speaker 2: And finally, Nathan, that didn't last very long. Instacar, the
Speaker 2: grocery delivery giant that soared as much as forty three
Speaker 2: percent in its trading debut two days ago, has now
Speaker 2: wiped out virtually all of those gains. The stock film
Speaker 2: nearly eleven percent yesterday and closed just ten cents above
Speaker 2: the thirty dollars level from its initial public offering. It's
Speaker 2: time now for a look at some of the other
Speaker 2: stories making news around the world, and for that we're
Speaker 2: joined by Bloomberg's Amy Morris. Amy, Good morning, Good morning, Karen.
Speaker 8: Air Force General Charles Q. Brown Junior is set to
Speaker 8: become america top military officer. This is the first Pentagon
Speaker 8: confirmation since a recent blockade on military promotions by Alabama
Speaker 8: Senator Tommy Turberville, who claimed, or rather who blames Democrats
Speaker 8: for the delay of the vote.
Speaker 10: Instead of voting, Democrats have spent months complaining about having
Speaker 10: to vote. They want us to use floor time for
Speaker 10: things like liberal judges, like the one we confirmed a
Speaker 10: couple hours ago.
Speaker 8: It was actually Turberville who had blocked military personnel moves
Speaker 8: for months because he wants to overturn a Pentagon policy
Speaker 8: of granting leave and travel expenses for service members who
Speaker 8: seek abortion services. An age limit for politicians is being
Speaker 8: proposed in Congress. It is not sitting well with some
Speaker 8: of the older lawmakers. Texas Congresswoman Sheila Jackson Lee is
Speaker 8: seventy three years old, and she would have only two
Speaker 8: years left under this proposal, which caps political service at
Speaker 8: age seventy five.
Speaker 10: It undermines the people's ability to run their government as
Speaker 10: they choose.
Speaker 8: Jackson Lee says it would be a to voters to
Speaker 8: decide if someone is just too old to serve in office.
Speaker 8: Former President Donald Trump reportedly plans to skip the third
Speaker 8: Republican presidential debate that continues his strategy of avoiding forums
Speaker 8: that include his lower polling political rivals. Trump did not
Speaker 8: show up for the first debate. He said he won't
Speaker 8: participate in the second debate, and that's coming up on
Speaker 8: September twenty seventh at Reagan Presidential Library, and Trump has
Speaker 8: questioned the benefit of debating at all because he holds
Speaker 8: such a wide lead over the rest of the GOP field.
Speaker 8: A family is suing Google for negligence, saying its outdated
Speaker 8: navigation system led to their father's death. A family's attorney,
Speaker 8: Robert Zimmerman, says multiple people had been notifying Google Maps
Speaker 8: about a bridge collapse, but nothing was done to update
Speaker 8: the app's route information.
Speaker 6: For years, Google attempted to lead people over a collapse
Speaker 6: bridge despite being notified by users of this exact danger.
Speaker 8: Forty seven year old Philip Paxson was using Google Maps
Speaker 8: phoned from his daughter's birthday party outside Charlotte, North Carolina,
Speaker 8: last year, when Google Maps led him down a road
Speaker 8: onto the bridge that had collapsed nearly ten years ago
Speaker 8: and had never been repaired. Global News twenty four hours
Speaker 8: a day, powered by more than twenty seven hundred journalists
Speaker 8: and analysts in more than one hundred twenty countries. I'm
Speaker 8: Amy Morrison. This is Bloomberg Karen right.
Speaker 2: Amy, Thank you, and I'll get the latest news whenever
Speaker 2: you wanted with Bloomberg News Now. It's the top stories
Speaker 2: from our global team of reporters at the click of
Speaker 2: a button. Get Bloomberg News Now on the Bloomberg Business app,
Speaker 2: Bloomberg dot com, and anywhere you get your podcasts. It's
Speaker 2: time now for the Bloomberg Sports Update. Here's John stash Hour.
Speaker 5: John. Yeah, and these are not good times with the
Speaker 5: Chicago Bears. They're owing to They lost twelve games in
Speaker 5: a row going back to last season. Their defensive quider
Speaker 5: Alan Williams is taking a leave of absence. He didn't
Speaker 5: coach the game last Sunday. He says it's for health reasons.
Speaker 5: There was a report that the FBI just raiding his home.
Speaker 5: Quarterback Justin Field struggled last Sunday. He said his play
Speaker 5: was too robotic, and he was asked why that was
Speaker 5: the case.
Speaker 10: It could be.
Speaker 11: Coaching, I think, But you know, at the end of
Speaker 11: the day, it makes it. You know they're doing their
Speaker 11: job when they're giving me, you know, what's look at
Speaker 11: stuff like that. But at the end of the day,
Speaker 11: I you know, can't be thinking about that when the
Speaker 11: game comes out, preparing myself throughout the week, and then
Speaker 11: when the game comes it's, you know, it's time to
Speaker 11: play free. At that point, so.
Speaker 5: Field said his comments were taken out of context in
Speaker 5: terms of criticizing the coaching staff. Week three begins tonight,
Speaker 5: the Giants coming up that big comeback win last Sunday
Speaker 5: at Arizona visiting the forty nine ers, who are two
Speaker 5: to zero. It's their home opener. Baseball, the Orioles lost
Speaker 5: in Houston two to one, Astro scoring in the eighth
Speaker 5: to ninth innings to stay in first place in the
Speaker 5: Al West. Nationals were up twelve to nothing in the
Speaker 5: fifth that he went on to beat the White Sox
Speaker 5: thirteen to three. The Red Sox led early on four
Speaker 5: to nothing, then lost to Texas fifteen to five. Rangers
Speaker 5: hit four home runs. A's lost at home to Seattle
Speaker 5: sixty two. The Giants fell to five hundred. They're out
Speaker 5: of it pretty much for a wildcard. They lost at
Speaker 5: Arizona seven to one. That Diamondbacks keep the lead for
Speaker 5: the second National League wildcard. Talks dash that were.
Speaker 12: Bloomberg'sport from coast to coast, from New York to San Francisco,
Speaker 12: Boston to Washington, DC, nationwide on Syrias, exam the Bloomberg
Speaker 12: Business app in Bloomberg dot com. This is Bloomberg Daybreak.
Speaker 3: Good morning. I'm Nathan Hager. They're almost done raising rates,
Speaker 3: but the fight against inflation is far from over. That
Speaker 3: was the message j. Powell and the Federal Reserve had
Speaker 3: for markets as they kept interest rates unchanged for now.
Speaker 4: We will continue to make our decisions meeting by meeting
Speaker 4: based on the totality of the incoming data and their
Speaker 4: implications for the outlook for economic activity and inflation, as
Speaker 4: well as the balance of risks. Given how far we
Speaker 4: have come, we are in a position to proceed carefully
Speaker 4: as we assess the incoming data and the evolving outlook
Speaker 4: and risks.
Speaker 3: For more on the Fed's decision and more central bank
Speaker 3: decisions to come, we are joined by Bloomberg opinion columnist
Speaker 3: Marcus Ashworth. Marcus, good morning. We can now proceed carefully.
Speaker 3: We heard that a lot from Chairman Powell. What message
Speaker 3: do you take from that?
Speaker 6: Well, I think that what I like about Powell is
Speaker 6: that he's basically saying they don't really have any clear
Speaker 6: idea what's going on. But he's not rushed into judgment
Speaker 6: one way or another. The bias is still to Titan,
Speaker 6: even though that may not mean much or anything at all.
Speaker 6: In fact, you know, at the moment, the economy is
Speaker 6: too strong to talk about rate cuts at any point,
Speaker 6: or any need to talk about rate cuts, and he
Speaker 6: wants to make sure that doesn't get rapidly priced in
Speaker 6: is the markets often want to do. I don't think
Speaker 6: he's got much time for the dop plots, the summary
Speaker 6: of economic productions. I think you find it a distraction. Unfortunately,
Speaker 6: the more he says, don't look at them and don't
Speaker 6: mean much, and they may change, and their clearly as
Speaker 6: they're changes as the winds blow in different directions. Unfortunately,
Speaker 6: the media seems to take it more and more, situs
Speaker 6: they've got nothing else to hang the hat on, because
Speaker 6: as he's saying, it's difficult at the moment, it's an
Speaker 6: unclear picture. We're taking it, you know, as as we
Speaker 6: go along. At the moment, there's no need to hike
Speaker 6: rates further. You know, inflation in compared to the rest
Speaker 6: of the world, inflation in the US is actually doing
Speaker 6: pretty well. It's coming down nicely. But you know, look
Speaker 6: he's doing as as competent a job as you can expect.
Speaker 6: I really wouldn't read too much into what perhaps the
Speaker 6: people think that the Fed wants to do by the
Speaker 6: rest of this year or even the next. And I
Speaker 6: still think they will they will stay where they are,
Speaker 6: and I don't expect to see another rate hike. But
Speaker 6: you know, Pal just doesn't want to get the opposite
Speaker 6: priced into quickly wherever races to think there's going to
Speaker 6: be rate cuts.
Speaker 3: Because see, you don't think that the DoD plood is
Speaker 3: a reflection of what the Chairman had to say in
Speaker 3: his message. I mean, we had, you know, a dozen
Speaker 3: policymakers saying they do see another rate hike, and it
Speaker 3: sounded like Chairman Powell was keeping the door open to that.
Speaker 6: No, he's keeping the door open. I just don't think
Speaker 6: that they will go through that door. And I don't
Speaker 6: think Powell thinks that either. But you know, he can't
Speaker 6: say that because then everyone will think the opposite. So
Speaker 6: for the moment, you know, look, there is a possibility.
Speaker 6: Let's face it, crew prices continue to go higher, and
Speaker 6: hire and go through one hundred that maybe they feel
Speaker 6: they may have to do one more. You know, that
Speaker 6: is that is out of everyone's hands at the moment
Speaker 6: as to what happens there. Of course, there's a possibility,
Speaker 6: and he's very sensible and proven to keep and reflect
Speaker 6: what in essence the dot plot is saying. I just
Speaker 6: don't think he believes in the usefulness of the dot plot.
Speaker 6: But regardless what he's saying, everyone's hanging that hat on
Speaker 6: that because that's all they can they can see through.
Speaker 6: I just don't I think in three months time are
Speaker 6: the chances of that reality of what people think, say
Speaker 6: they think, think they think now and actually doing it
Speaker 6: are two different things.
Speaker 3: Up next, you got the Bank of England. Got a
Speaker 3: lot more interesting here, but the surprise drop in inflation.
Speaker 3: What do you see from the BOE this morning?
Speaker 6: You know, well, I mean the inflation data is better.
Speaker 6: It's been a long time coming. It's about time the
Speaker 6: UK inflation they got better. We've just had some sort
Speaker 6: of very sticky contractual lead food price inflation which is
Speaker 6: finally started a long last start to drop out and
Speaker 6: I think will continue to yes, you know, obviously, like
Speaker 6: I run the rest of the world. Fuel prices has
Speaker 6: been going up and that added about zero point three
Speaker 6: to the headline. You so there's potential for that to
Speaker 6: add more in the extra month or two. But equally,
Speaker 6: if ever oil prices was a drop, it would feed
Speaker 6: strive back out the other way, and clearly energy prices,
Speaker 6: we've still got some more good news to come. So
Speaker 6: I would say that the back of England sort of
Speaker 6: content by that it's finally working its own way. That's
Speaker 6: the way I think they want to get to the
Speaker 6: so called tabletop, which Chief Economishee Pill mentioned. They can't
Speaker 6: really do it unless the FED is clearly on that
Speaker 6: tabletop as well. And indeed, by the fact the European
Speaker 6: Central Bank raise rates one last time, probably the four
Speaker 6: last week, it means I think they will go one
Speaker 6: last move to five and a half and then say, look,
Speaker 6: we're on this table top like everyone else is now
Speaker 6: and we've probably done You know, well, I think too much,
Speaker 6: but they certainly think they've done sufficient to try and
Speaker 6: keep a hold of inflation. They're much more worried about
Speaker 6: wage data than they are by consumer prices, and that's
Speaker 6: the thing that's keeping them ratching in the monetary pain
Speaker 6: up because they really need to get a hold of
Speaker 6: a very very strong wage data.
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