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

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Speaker 1: Daybreak You Up podcast, available every morning on Apple, Spotify

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Speaker 1: or wherever you listen. It's Friday, the eighth of November

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Speaker 1: here in London. I'm Caroline Hepka and.

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Speaker 2: I'm Stephen Carroll. Coming up today. Powell signals a readiness

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Speaker 2: to defy Trump in defense of the FED as the

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Speaker 2: Central Bank cuts rates by a quarter point.

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Speaker 1: The Bank of England governor says the Chancellor's inflation stoking

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Speaker 1: budget won't lead to a slowdown in rate cuts.

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Speaker 2: Plus, supermarkets in the UK are offering wagyu steaks from

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Speaker 2: British farmers for as little as five pounds, but is

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Speaker 2: the meast really comparable to the Japanese delicacy.

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

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Speaker 2: Federal Reserve, Charge your own. Powell has made clear he's

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Speaker 2: ready to defend the US Central Bank from political pressure

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Speaker 2: after the reelection of Donald Trump. Following the Fed's unanimous

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Speaker 2: decision to cut rates by a quarter point, Powell was

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Speaker 2: repeatedly asked in his press conference about his position under

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Speaker 2: the incoming administration.

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Speaker 3: Some of the president's elects advisors have suggested that you

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Speaker 3: should resign.

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Speaker 4: If he asked you to leave, would you go?

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Speaker 5: No?

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Speaker 3: Can you follow up on do you think that legally

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Speaker 3: you're not required to leave?

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Speaker 1: No?

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Speaker 4: Do you believe the president has a power to fire

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Speaker 4: or demote you?

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Speaker 2: And it has?

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Speaker 6: The FED determined the legality of a president demoting at

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Speaker 6: will any of the other governors with leadership positions.

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Speaker 5: Not permitted under the law, not what not permitted under

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Speaker 5: the law.

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Speaker 2: President elects Trump, Tolblinberg, and June that he might want

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Speaker 2: more of a say in interest rates, though added he'd

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Speaker 2: let your own pals serve out his current term, which

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Speaker 2: ends in twenty twenty six. The Fed chief's remarks were notable,

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Speaker 2: as he worked hard to dodge every other politically charged

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Speaker 2: question from journalists.

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Speaker 5: In the near term, the election will have no effects

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Speaker 5: on our policy decisions. As you know, many many things

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Speaker 5: affect the economy, and anyone who writes down forecasts in

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Speaker 5: their job will tell you that the economy is quite

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Speaker 5: difficult the forecast looking out past the very near term.

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Speaker 5: Here we don't know what the timing and substance of

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Speaker 5: any policy changes will be. We therefore don't know what

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Speaker 5: the effects on the economy would.

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Speaker 2: Be Pal's comments came after the Federal Open Market Committee

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Speaker 2: cost benchmark US rates to arrange a four and a

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Speaker 2: half to four point seventy five percent.

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Speaker 1: President select Trump has named his campaign manager, Susie Wilds

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Speaker 1: as his incoming White House Chief of Staff. Meanwhile, financing

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Speaker 1: business executives are in the frame for a raft of

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Speaker 1: other top roles in the new administration. Wall Street is

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Speaker 1: closely watching who Trump will pick as his Treasury secretary.

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Speaker 1: Hedge fund managers Scott Bessant and John Paulson are both

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Speaker 1: thought to be in contention, alongside the former SEC Chair

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Speaker 1: j Clayton, and also the former US Trade Representative Robert Leittheiser.

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Speaker 2: The leaders of Ukraine and Russia jockeying for position with

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Speaker 2: the US president elect. Donald Trump says he's spoken with

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Speaker 2: Ukraine's Vladimir Zelenski since the results, but not yet with

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Speaker 2: Vladimir Putin. Speaking at a gathering in Satchi, the Russian

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Speaker 2: president shared his hopes for working with the new US administration.

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Speaker 6: I do not want to comment now on what was

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Speaker 6: said consciously during the election campaign. I think it was

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Speaker 6: said deliberately in the fight for votes, but it does

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Speaker 6: not matter what was said in the desire to restore

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Speaker 6: relations with Russia to help end the Ukrainian crisis, in

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Speaker 6: my opinion, seems to deserve at least attention. I would

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Speaker 6: like to take this opportunity to congratulate him on his

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Speaker 6: election as President of the United States of America.

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Speaker 2: As Latimir Putin speaking there through a translator on the

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Speaker 2: campaign trail, Trump predicted he could end the Russia Ukraine

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Speaker 2: conflicts the day after his election, but has given so

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Speaker 2: far a little indication of how he would approach the challenge.

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Speaker 2: Soon to be forty seventh president of the United States,

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Speaker 2: as he plans to speak with Vladimir Putin during an

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Speaker 2: interview with NBC News on Thursday.

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Speaker 1: The Bank of England governor has supported Rachel Reeves's budget,

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Speaker 1: saying that it won't slow the pace of rate cuts.

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Speaker 1: Despite predicting that the Chancellor's policies will push inflation up

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Speaker 1: by almost half a percentage point to two point eight percent.

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Speaker 1: Policy makers at the Bank of England effectively endorsed a

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Speaker 1: further four quarter point cuts by the end of next year.

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Speaker 1: Speaking to Bloomberg, though Governor Andrew Bailey said the pace

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Speaker 1: of change at the Bank of England would be subject

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Speaker 1: to global conditions.

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Speaker 7: There are a lot of uncertainties out there, both in

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Speaker 7: the world and there's domestic uncertaintis as well. So we've

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Speaker 7: emphasized the word gradual again because we're going to have

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Speaker 7: to take account of how those uncertainties play through. I'm

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Speaker 7: not really in a position when there's any of the

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Speaker 7: certain position to say, well, gradual means every so often.

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Speaker 7: That is not a judgment that we make.

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Speaker 1: Andrew Bailey, speaking to Bloomberg's Farci Laqua after the MUNETU

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Speaker 1: Policy Committee delivered a quarter point interesstrate cut to four

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Speaker 1: point seventy five percent yesterday. Meanwhile, new data released this

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Speaker 1: morning by the Recruitment and Employment Confederation and KPMG shows

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Speaker 1: hiring at UK businesses fell at its deepest pace since

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Speaker 1: March in anticipation of tax rises from the budget. The

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Speaker 1: report is closely watched by the Bank of England to

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Speaker 1: gauge cost pressures.

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Speaker 2: HSBC says its first round of job losses is due

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Speaker 2: in weeks. The Europe's biggest bank has been planning a

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Speaker 2: major restructuring to combine many of its business units. Boss

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Speaker 2: of the new Global Wholesale Banking division, Michael Roberts told

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Speaker 2: Bloomberg speed is key.

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Speaker 8: I've been in drip type of structurings, very painful for

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Speaker 8: our employees, very painful for clients. And we're very much

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Speaker 8: aware that this is distracting, this is disruptive, So we're

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Speaker 8: going to try to do this as quickly as possible.

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Speaker 8: I'm talking weeks before we announced the first level, and

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Speaker 8: that will be followed by several other weeks. I mean,

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Speaker 8: we're going to be working.

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Speaker 2: Very very quickly, Roberts. Out of job losses will be

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Speaker 2: concentrated at the senior level, and the full scale of

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Speaker 2: rede ondancies will be known by February. The revamp has

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Speaker 2: been presented as an answer to investor concerns over the

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Speaker 2: bank's survival against competition from regional banks and FinTechs.

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Speaker 1: Now Goldman Sachs has promoted ninety five executives to its partnership,

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Speaker 1: the most for any year since twenty ten. The Wall

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Speaker 1: Street firm is unique among its peers in keeping the

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Speaker 1: system where partner is the highest position in the bank.

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Speaker 1: Twenty six of the new partners, of women for are

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Speaker 1: black and six Hispanic. The partnership now consists of over

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Speaker 1: four hundred executives less than one percent of Goldman Sachs's workforce.

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Speaker 2: Those are your top stories on the markets. The Mscirish

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Speaker 2: pecific indexes up by three tenths of one percent, eurostocks,

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Speaker 2: fifty futures are three tents higher, and the ten year

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Speaker 2: treasury yield is up a basis point to four point

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Speaker 2: three to three percent.

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Speaker 1: Now, in a moment, we'll bring you more on the

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Speaker 1: central Bank decisions we had yesterday, plus Trump's appointments, and

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Speaker 1: how farmers are cashing in on Britain's taste for premium beef.

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Speaker 1: But if you're thinking about the weekend, I absolutely you

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Speaker 1: should read the latest from our Top Shelf newsletter. This

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Speaker 1: is from Kara Newman, who is Bloomberg's Cocktail and Spirits expert.

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Speaker 1: Must say, I didn't know we had a cocktail.

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Speaker 2: And spirit when we missed the applications for that job.

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Speaker 1: Exactly. She has this delightful job. She talks about the

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Speaker 1: litmus test for any bar being how they deliver the basics.

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Speaker 1: A good martini and a grony.

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Speaker 2: Get gripped by decision paralysis when you're faced with a

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Speaker 2: cocktail lists where you're like, I want the classic, but

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Speaker 2: also I'm very excited by this other thing, which is

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Speaker 2: usually something mad.

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Speaker 1: And that's what she's been investigating. She says she usually

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Speaker 1: goes for the kind of the martini, but lately she's

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Speaker 1: started to order the weirdest cocktail on the menu, and

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Speaker 1: she's been writing about how it's been a really.

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Speaker 2: The cigarette martini would apparently described as like kissing someone

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Speaker 2: out of this smog. As cigarets, that is a very

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Speaker 2: odd description, very nice and yet yeah, indeed and yet

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Speaker 2: are very attractive. And I quite liked one of the

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Speaker 2: other drinks that Chalott's and his editor as well, which

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Speaker 2: is the Fireball reramped. No, it was crier ball because

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Speaker 2: it includes apparently human tears.

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Speaker 1: I have no idea how you would include that into

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Speaker 1: a drink, But anyway, one thing that you might want

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Speaker 1: to be thinking about for your weekend. Yeah, from one

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Speaker 1: of our writers this morning.

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Speaker 2: Let's bring you more in air in our top story

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Speaker 2: and the decision by the Federal Reserve to cut interest

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Speaker 2: rates yesterday, but it was Jerome Pile's readiness to withstand

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Speaker 2: pressure to quit that was a more striking development as

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Speaker 2: the Trump transition ramps up. Joining us now with more

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Speaker 2: Bloomberg TV anchor Criti Gupta Critique, good morning. So Joam

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Speaker 2: Pell dodged lots of questions and we heard some of

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Speaker 2: them there about politics and policy, but he did engage

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Speaker 2: with some of the questions about his own job.

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Speaker 3: He was asked if he would resign if President elect

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Speaker 3: Trump asked him to, and the answer was a very

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Speaker 3: simple no. Nothing more added, just a simple no. He

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Speaker 3: did say it was not permitted under the law for

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Speaker 3: that to happen, but really stuck to the script, did

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Speaker 3: not expand much on what he had to say, and

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Speaker 3: I think that makes it quite clear, and I think

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Speaker 3: for our international audience the context is key here in

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Speaker 3: that when he's talking about what is and is not

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Speaker 3: permitted under the law, you have to have Senate approval

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Speaker 3: to replace. So whoever would potentially pick or replace Jerome

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Speaker 3: Powell has to be approved by the Senate. And in

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Speaker 3: terms of the mandate for the Federal Reserve, which remember

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Speaker 3: has a dual mandate under Unlike several of the other

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Speaker 3: central banks around the world that we keep an eye on,

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Speaker 3: it keeps eye on both employment and inflation. There's a

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Speaker 3: dual mandate, whereas say ECB, for example, only has an

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Speaker 3: inflationary mandate. That mandate changes if Congress approves it. The

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Speaker 3: problem is we've never done that before. The other problem

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Speaker 3: is that this is the first time we may actually

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Speaker 3: and it's not confirmed yet, but we may have a sweep,

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Speaker 3: a red sweep in the Senate, in the House of Representatives,

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Speaker 3: with a president at the helm of that from the

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Speaker 3: Republican party. It makes it easier to change that mandate.

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Speaker 3: But again, this is a mandate that goes back decades,

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Speaker 3: if not even longer than that, so you really want

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Speaker 3: to keep an eye on on how that progresses. But

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Speaker 3: the mandate is more likely to change than the actual

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Speaker 3: pick itself.

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Speaker 1: Yeah, and the independence of central banks seen as absolutely

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Speaker 1: central to getting better economic policy and outcomes. Basically, that's

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Speaker 1: why there's independence, isn't there. But look, the exchange was

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Speaker 1: certainly cut and it does perhaps look as if the

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Speaker 1: battle lines are maybe being drawn between the Fed and

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Speaker 1: the White House ten weeks to go until Trump is

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Speaker 1: actually in the White House. In terms of the other posts,

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Speaker 1: we're getting more details around the four thousand government jobs

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Speaker 1: that are going to be filled by the new incoming administration.

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Speaker 1: As you say, Republicans on track to win total control

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Speaker 1: of the government. It seems at the moment, what are

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Speaker 1: the key roles in individuals we're thinking about.

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Speaker 3: Yeah, there's a couple of them outside of the Federal Reserve.

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Speaker 3: And look, this is going to be a rotating cabinet

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Speaker 3: in terms of who is actually going to be the

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Speaker 3: biggest players. But I think the one that we know

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Speaker 3: for sure from overnight is Susie wils She was kind

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Speaker 3: of a campaign manager slash de facto chief of staff

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Speaker 3: during Trump's kind of post presidency term and if she

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Speaker 3: will now be the first female chief of staff in

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Speaker 3: American history. So this is a massive deal regardless of

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Speaker 3: what party you are affiliated with. She's someone who has

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Speaker 3: long been a Republican political operative. She comes from the

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Speaker 3: state of Florida. Her dad was a NFL broadcaster, so

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Speaker 3: she is kind of in this world of mass America

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Speaker 3: and is very patriotic for lack of a better term,

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Speaker 3: and is therefore someone who has proven success in this

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Speaker 3: political comeback. And I was part of the kind of

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Speaker 3: speech and praise that Donald Trump had given her when

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Speaker 3: making this announcement. Some of the other names as well

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Speaker 3: stood out to me is Marco Rubio as a potential

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Speaker 3: candidate for Secretary of state. This is significant because Marco

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Speaker 3: Rubio ran against President Trump in twenty sixteen, and he

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Speaker 3: also is someone who is not only from Florida, but

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Speaker 3: has been very engaged with the Latino vote. If you

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Speaker 3: look at the selection, the biggest demographic that Trump has

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Speaker 3: managed to flip has been Latino men, and Marco Rubio

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Speaker 3: has been key to that strategy. Despite of course them

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Speaker 3: having a little bit of their beef back in the day,

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Speaker 3: they do seem to be allied on this front. So

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Speaker 3: he's someone who could be considered, and then plenty of

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Speaker 3: others kind of in the works for Treasury Secretary. Scott

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Speaker 3: Bissette seems to be one who's been very outspoken against

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Speaker 3: Jenny Ellen. He's a hedge fund manager and a major

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Speaker 3: player on Wall Street as well who's been very very

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Speaker 3: crucial in terms of using the Treasury as a way

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Speaker 3: to expand the protectionist agenda, which is something that the

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Speaker 3: Treasury is usually a little insulated with given it kind

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Speaker 3: of deals with currency and issuant and Scott Bissett might

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Speaker 3: change that.

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Speaker 2: Okay, crazy good to Thank you very much for joining

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Speaker 2: us this morning with the latest on what's going on

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Speaker 2: in the US now.

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Speaker 1: Britain is indulging in a growing appetite for wagyu beef

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Speaker 1: and it's an opportunity for farmers. The number of wag

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Speaker 1: you capital in Britain has more than doubled to over

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Speaker 1: thirty five thousand as consumers are willing to pay more

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Speaker 1: for premium Meet Journeys now to discuss he's been big

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Speaker 1: to UK retail reporter Jennifer Creary, Jennifer, good morning. What

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Speaker 1: exactly is wagu beef?

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Speaker 9: I thought it was Japanese, Well, wag you literally translates

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Speaker 9: to Japanese beef.

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Speaker 4: It's among the best meat in the world, and.

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Speaker 9: That's because it has a really high fat content. It's

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Speaker 9: melt in your mouth, it's buttery, it's umami. It tastes

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Speaker 9: really delicious. But as a result it's really expensive.

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Speaker 4: You know, you're looking.

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Speaker 9: To pay hundreds of dollars and just a stake of

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Speaker 9: wagu in Japan at least. But as a result it

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Speaker 9: presents a pretty lucrative offer to kind of restaurants suppliers

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Speaker 9: as something to cash in on.

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Speaker 2: Well, what is driving that growing demand and particularly when

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Speaker 2: we think about where it's coming from in the UK?

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Speaker 9: Yeah, I mean, so a lot of this goes back

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Speaker 9: to the pandemic. So during COVID, we were taught to

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Speaker 9: kind of shine eating out and eat at home, particularly

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Speaker 9: with kind of ensuing inflationary pressures on household budgets, and

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Speaker 9: so as a result, consumers were looking to trade up

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Speaker 9: on more kind of premium items to kind of treat themselves.

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Speaker 4: And Wagon just becomes past of that story.

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Speaker 9: So we're seeing a growing trend of premiumization and wag

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Speaker 9: you is associated with you know, high quality meat, and

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Speaker 9: so as a result, consumers want to kind of treat

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Speaker 9: them to the occasional Wago steak.

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Speaker 1: Okay, So then how are farmers overseas then making it work?

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Speaker 1: You know, it's expensive, you can see the attraction maybe

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Speaker 1: of offering it to more picky consumers, but how are

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Speaker 1: farmers making it work for them?

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Speaker 9: Yeah, So what's really interesting is that in Japan there

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Speaker 9: are four official Wagu breeds, and you know, they're not.

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Speaker 4: The easiest cattle to raise, and Japan has.

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Speaker 9: Really clamped down on the export of kind of live genetics.

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Speaker 9: But you know, there is a small herd outside of Japan.

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Speaker 9: So one of the ways that overseas farmers and making

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Speaker 9: this work is by breeding Wagu cattle with some of

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Speaker 9: their local dairy herds. So in the UK at least,

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Speaker 9: we see a lot of kind of cross breed cattle.

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Speaker 9: So you mentioned earlier the number of wagu cattle in

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Speaker 9: the UK has more than doubled last year to more

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Speaker 9: than thirty five thousand, and the majority of that are

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Speaker 9: cross breed cattle, and that's one of the ways that

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Speaker 9: farmers are able to scale up a lot quicker and

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Speaker 9: meet that growing demand for wagu.

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Speaker 2: For Jennifer, have you tasted both of them and is

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Speaker 2: there a difference?

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Speaker 4: Yeah, there definitely is.

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Speaker 9: Listen and you know, if you were to put a

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Speaker 9: British waggy steak in front of a Japanese consumer, I

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Speaker 9: think they'd be expecting something a lot different too. The

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Speaker 9: farming techniques in the UK are different. The kind of

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Speaker 9: feed that they're given is different. You know, it's a

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Speaker 9: lot more grass based and it does affect the texture.

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Speaker 4: Of the meat and the taste. You know, it's a bit.

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Speaker 9: Chewier in the UK and the UK were more used

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Speaker 9: to chewy steaks, but it is a better quality steak.

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Speaker 9: It does have a higher fat content, so but you know,

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Speaker 9: if you're going to your local supermarket, your local Waitros

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Speaker 9: or Alda, and you're expecting to find a waggy steak

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Speaker 9: that you get in Japan, You're probably going to be disappointed.

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Speaker 2: This is Bloomberg Daybreak Europe. You're morning brief on the

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