1
00:00:02,400 --> 00:00:05,680
Speaker 1: Good morning. I'm Brian Curtiz and I'm Doug Krisner. Here

2
00:00:05,680 --> 00:00:07,320
Speaker 1: are the stories we're following today.

3
00:00:07,800 --> 00:00:10,119
Speaker 2: The Fed held interest rates at a twenty two year

4
00:00:10,200 --> 00:00:13,280
Speaker 2: high for a second straight meeting. In his news conference,

5
00:00:13,360 --> 00:00:17,159
Speaker 2: Chair j Palill said financial conditions have tightened significantly in

6
00:00:17,200 --> 00:00:20,680
Speaker 2: recent months, driven by higher longer term bond yields, among

7
00:00:20,800 --> 00:00:24,599
Speaker 2: some other factors. Pal also said previous rate hikes were

8
00:00:24,640 --> 00:00:28,800
Speaker 2: putting downward pressure on economic activity and the inflation, and

9
00:00:28,840 --> 00:00:31,480
Speaker 2: the full effects of tightening had yet to be felt.

10
00:00:32,080 --> 00:00:34,720
Speaker 3: Given how far we have come, along with the uncertainties

11
00:00:34,720 --> 00:00:38,280
Speaker 3: and risks we face, the Committee is proceeding carefully. We

12
00:00:38,320 --> 00:00:41,360
Speaker 3: will make decisions about the extent of additional policy firming

13
00:00:41,680 --> 00:00:44,879
Speaker 3: and how long policy will remain restrictive, based on the

14
00:00:44,880 --> 00:00:48,159
Speaker 3: totality of the incoming data, the evolving outlook, and the

15
00:00:48,200 --> 00:00:49,080
Speaker 3: balance of risks.

16
00:00:49,280 --> 00:00:53,040
Speaker 2: Pal also said tightening conditions could warrant further rate hikes,

17
00:00:53,080 --> 00:00:56,600
Speaker 2: echoing remarks he made in New York last month. The

18
00:00:56,680 --> 00:01:00,520
Speaker 2: FOMC will meet one more time this year on December twelfth, thirteenth,

19
00:01:00,600 --> 00:01:03,920
Speaker 2: and Doug, using the WORP function on the Bloomberg terminal,

20
00:01:04,440 --> 00:01:07,560
Speaker 2: a nineteen percent chance of a rate hike of twenty

21
00:01:07,560 --> 00:01:12,000
Speaker 2: five basis points on December thirteenth, and only twenty nine

22
00:01:12,040 --> 00:01:14,360
Speaker 2: percent if you go to the FED meeting at the

23
00:01:14,560 --> 00:01:16,200
Speaker 2: end of January.

24
00:01:15,840 --> 00:01:19,000
Speaker 1: And he did suggest that the notion of rate cuts

25
00:01:19,080 --> 00:01:22,160
Speaker 1: right now not even being discussed by the Fed. We

26
00:01:22,280 --> 00:01:25,280
Speaker 1: go next to the US Treasury. The department is planning

27
00:01:25,440 --> 00:01:29,520
Speaker 1: an increase in overall US debt sales. However, the level

28
00:01:29,560 --> 00:01:32,760
Speaker 1: of issuance overall is slightly below what most dealers on

29
00:01:32,800 --> 00:01:35,680
Speaker 1: the street had expected. Total size of these sales one

30
00:01:35,760 --> 00:01:39,880
Speaker 1: hundred and twelve billion, that's about two billion less than forecast.

31
00:01:40,200 --> 00:01:43,240
Speaker 1: This is the so called quarterly refunding auctions. They'll take

32
00:01:43,280 --> 00:01:46,840
Speaker 1: place next week and they will span three, ten and

33
00:01:47,040 --> 00:01:50,800
Speaker 1: thirty year Treasury maturities. Here's Bloomberg's Michael McKee.

34
00:01:51,680 --> 00:01:56,480
Speaker 4: A quarterly increase that we get is basically concentrated at

35
00:01:56,760 --> 00:01:59,600
Speaker 4: law the short end, which makes sense since.

36
00:01:59,440 --> 00:02:00,920
Speaker 5: Long ends have gone up.

37
00:02:00,920 --> 00:02:03,680
Speaker 4: The problem, of course for the Treasury Department is that

38
00:02:03,920 --> 00:02:06,880
Speaker 4: people are criticizing them for not turning out earlier. They

39
00:02:06,920 --> 00:02:09,720
Speaker 4: have to pay more, so they are kind of locked

40
00:02:09,720 --> 00:02:13,360
Speaker 4: in here at the higher rates, rather than being able

41
00:02:13,400 --> 00:02:17,079
Speaker 4: to take advantage of any falling rates and they do

42
00:02:17,160 --> 00:02:19,600
Speaker 4: say that this may be the end of it in

43
00:02:19,680 --> 00:02:24,800
Speaker 4: terms of raising auction sizes. They may raise auction sizes

44
00:02:24,880 --> 00:02:28,240
Speaker 4: one more time and that should be enough in the

45
00:02:28,240 --> 00:02:29,359
Speaker 4: first quarter of next year.

46
00:02:29,440 --> 00:02:32,200
Speaker 1: That is Bloomberg's Michael McKee. Now back to the Treasury.

47
00:02:32,240 --> 00:02:35,360
Speaker 1: The Department is saying future plan sales will depend on

48
00:02:35,480 --> 00:02:39,160
Speaker 1: a variety of factors. They include the evolution of the

49
00:02:39,200 --> 00:02:43,440
Speaker 1: fiscal outlook, combined with the pace and duration at which

50
00:02:43,520 --> 00:02:47,480
Speaker 1: the Fed continues to shrink its balance sheet. Bran well

51
00:02:47,520 --> 00:02:48,560
Speaker 1: to some earnings news.

52
00:02:48,600 --> 00:02:51,920
Speaker 2: Now, Qualcomm, the largest seller of smartphone chips, gave an

53
00:02:52,000 --> 00:02:55,440
Speaker 2: upbeat revenue forecast for the current quarter, a company saying

54
00:02:55,440 --> 00:02:58,160
Speaker 2: that sales will be nine point one to nine point

55
00:02:58,240 --> 00:03:01,160
Speaker 2: nine billion dollars mid point of that range, nine and

56
00:03:01,240 --> 00:03:03,639
Speaker 2: a half billion, was well ahead of the nine and

57
00:03:03,680 --> 00:03:07,040
Speaker 2: a quarter billion that analysts had been estimating. Today's report

58
00:03:07,120 --> 00:03:10,359
Speaker 2: offers a glimmer of hope that consumers are finally beginning

59
00:03:10,360 --> 00:03:14,440
Speaker 2: to upgrade their phones again. We heard from Bloomberg's Kunjohn Sobani.

60
00:03:14,880 --> 00:03:17,320
Speaker 6: Coming into the quarter, you know, it was pretty clear

61
00:03:17,360 --> 00:03:20,600
Speaker 6: that the smartphone market has bottomed. Customers have been drawing

62
00:03:20,600 --> 00:03:23,920
Speaker 6: down inventory for a few quarters now, What was uncertain

63
00:03:24,160 --> 00:03:27,960
Speaker 6: was the speed and the size of the expected market snapback.

64
00:03:28,240 --> 00:03:31,640
Speaker 6: I mean, the results came in slightly above, but on

65
00:03:31,680 --> 00:03:34,280
Speaker 6: a handset and a QTL side, they were kind of in.

66
00:03:34,240 --> 00:03:39,040
Speaker 2: Line Bloomberg's Kunjohn Sobani. Many shoppers, especially in China, have

67
00:03:39,120 --> 00:03:42,280
Speaker 2: been holding on to existing smartphone models for longer than

68
00:03:42,320 --> 00:03:45,680
Speaker 2: in the past, and that has hurt demand for Qualcom's chips.

69
00:03:45,800 --> 00:03:48,120
Speaker 2: A rebound there would help to keep the company's main

70
00:03:48,200 --> 00:03:52,000
Speaker 2: source of revenue aflut. Qualcom shares were up one point

71
00:03:52,080 --> 00:03:55,200
Speaker 2: seven percent in the regular session, and then after the

72
00:03:55,240 --> 00:03:59,800
Speaker 2: earnings report added another three point four percent in late trading.

73
00:03:59,840 --> 00:04:02,880
Speaker 1: New after the bell, Disney will acquire the thirty three

74
00:04:02,880 --> 00:04:07,240
Speaker 1: percent stake in Hulu held by Comcast. Now this deal

75
00:04:07,320 --> 00:04:10,200
Speaker 1: is worth about eight point sixty one billion dollars and

76
00:04:10,240 --> 00:04:13,960
Speaker 1: it will help further Disney's objectives when it comes to streaming.

77
00:04:14,640 --> 00:04:18,120
Speaker 1: Under the previous deal between Disney and Comcasts, the total

78
00:04:18,200 --> 00:04:21,680
Speaker 1: value of Hulu will be no less than twenty seven

79
00:04:21,720 --> 00:04:25,480
Speaker 1: and a half billions. So now the beginning of negotiations

80
00:04:25,480 --> 00:04:28,279
Speaker 1: in a process that could go on for months. The

81
00:04:28,320 --> 00:04:31,000
Speaker 1: company said the final price will be settled through an

82
00:04:31,040 --> 00:04:34,760
Speaker 1: appraisal process, and it's likely to involve up to three

83
00:04:35,000 --> 00:04:38,720
Speaker 1: investment banks. Disney is expecting the deal to be completed

84
00:04:38,760 --> 00:04:41,080
Speaker 1: sometime next year right well.

85
00:04:41,120 --> 00:04:44,240
Speaker 2: Closing arguments occurred today in the trial of FTX co

86
00:04:44,320 --> 00:04:48,360
Speaker 2: founder Sam Bankman Freed. Bloomberg Shanali Bossak says that prosecutors

87
00:04:48,440 --> 00:04:51,640
Speaker 2: used Bankman Fried's own words against him in their final

88
00:04:51,680 --> 00:04:52,640
Speaker 2: pitch to the jury.

89
00:04:53,120 --> 00:04:55,480
Speaker 7: So what they are now saying is you saw him

90
00:04:55,480 --> 00:04:58,720
Speaker 7: come in early to his own defense, very clear worded,

91
00:04:58,920 --> 00:05:01,480
Speaker 7: very clear headed, and a day later you saw him

92
00:05:01,520 --> 00:05:06,080
Speaker 7: walk into the prosecution stumbling over many definitions, stumbling over

93
00:05:06,480 --> 00:05:09,280
Speaker 7: many things that the prosecution put right in front of him,

94
00:05:09,320 --> 00:05:12,920
Speaker 7: books articles as to what he had said, and then

95
00:05:12,960 --> 00:05:17,480
Speaker 7: watching him either not remember or deny what has been

96
00:05:17,480 --> 00:05:18,680
Speaker 7: written or said about him.

97
00:05:18,760 --> 00:05:22,919
Speaker 2: Bloomberg Shanali Bassak beck Benfried admits to making big mistakes

98
00:05:22,960 --> 00:05:27,720
Speaker 2: at the helm of FTX, but he denies intentionally diffrauding anyone.

99
00:05:27,839 --> 00:05:30,880
Speaker 2: Now it's time for Global news. Hooti rebels say they

100
00:05:30,920 --> 00:05:34,480
Speaker 2: successfully launched drone attacks on Israel out of Yemen. At

101
00:05:34,560 --> 00:05:36,640
Speaker 2: Baxter has that story and the rest of the news

102
00:05:36,680 --> 00:05:38,839
Speaker 2: from the nine to sixty newsroom in San Francisco.

103
00:05:39,000 --> 00:05:41,360
Speaker 8: Ed Yeah, that's right. Brian a statements say the attack

104
00:05:41,440 --> 00:05:45,560
Speaker 8: came with a large number of bomb drones. They say

105
00:05:45,560 --> 00:05:48,320
Speaker 8: they reached their target, vow that they continue their attacks

106
00:05:48,400 --> 00:05:51,960
Speaker 8: until the end of their offensive in gazav And. Escalation

107
00:05:52,040 --> 00:05:53,839
Speaker 8: of this kind of activity is what the US and

108
00:05:53,880 --> 00:05:56,560
Speaker 8: its allies have been fearing, and that is why Secretary

109
00:05:56,600 --> 00:05:58,560
Speaker 8: of State Antony Blanket at least one of the reasons

110
00:05:58,600 --> 00:06:01,800
Speaker 8: he's on his way to Israel Bloomberg Jonathan Tamara says

111
00:06:01,960 --> 00:06:04,800
Speaker 8: to try to prevent some kind of escalation.

112
00:06:04,560 --> 00:06:07,960
Speaker 9: As Bala from Lebanon could become involved, that Iran could

113
00:06:07,960 --> 00:06:12,400
Speaker 9: become involved, and other countries might feel pressure to come

114
00:06:12,440 --> 00:06:15,600
Speaker 9: to the aid of the Palestinians, not just in the

115
00:06:15,720 --> 00:06:17,960
Speaker 9: humanitarian way, but in a military way.

116
00:06:18,720 --> 00:06:21,279
Speaker 8: And Bloomberg's Oliver Crook and Tel Aviv says, while both

117
00:06:21,279 --> 00:06:23,600
Speaker 8: the US and Israel rejected sees fire, there may be

118
00:06:24,040 --> 00:06:26,960
Speaker 8: another thing that can be done. While blinkn is there.

119
00:06:26,880 --> 00:06:30,279
Speaker 10: This idea of potential humanitarian pauses, the United States at

120
00:06:30,360 --> 00:06:32,560
Speaker 10: least seems open to these. I mean these would look

121
00:06:32,640 --> 00:06:35,160
Speaker 10: probably something like we saw in the earlier stages of

122
00:06:35,160 --> 00:06:37,240
Speaker 10: the war, where the Israelis would agree to not bombard

123
00:06:37,240 --> 00:06:39,160
Speaker 10: certain areas to allow aid and other things to.

124
00:06:39,120 --> 00:06:41,760
Speaker 8: Get through, and that blink and we'll explore that. The

125
00:06:41,920 --> 00:06:45,039
Speaker 8: US is saying today there is movement both into and

126
00:06:45,279 --> 00:06:48,760
Speaker 8: out of Gaza. For the first time. President Biden says

127
00:06:48,760 --> 00:06:52,239
Speaker 8: evacuations of US citizens and wounded I started leaving Gaza.

128
00:06:52,600 --> 00:06:55,960
Speaker 8: State Department spoke, so Matthew Miller says, the process definitely

129
00:06:56,040 --> 00:06:56,600
Speaker 8: is underway.

130
00:06:56,640 --> 00:06:58,560
Speaker 11: We want to make sure we can get US citizens

131
00:06:58,600 --> 00:07:01,599
Speaker 11: and their family members out as safely as possible. In

132
00:07:01,640 --> 00:07:04,560
Speaker 11: the past twenty four hours, we have informed US citizens

133
00:07:04,680 --> 00:07:08,080
Speaker 11: and family members with whom we are in contact that

134
00:07:08,160 --> 00:07:10,920
Speaker 11: they will be assigned specific departure dates.

135
00:07:10,760 --> 00:07:13,680
Speaker 8: And says Humanitarian aid also is moving in.

136
00:07:13,840 --> 00:07:17,120
Speaker 11: Fifty nine trucks entered Gaza through the rough A crossing yesterday,

137
00:07:17,480 --> 00:07:20,160
Speaker 11: representing the highest number of trucks in a single day

138
00:07:20,200 --> 00:07:23,240
Speaker 11: to enter Gaza since the Humanitarian quarter began on October

139
00:07:23,280 --> 00:07:26,680
Speaker 11: twenty first, and bringing the total number through yesterday to

140
00:07:26,720 --> 00:07:27,840
Speaker 11: two hundred and seventeen.

141
00:07:28,360 --> 00:07:32,800
Speaker 8: Now Blenken is there Friday. Meanwhile, aid for not only Israel,

142
00:07:32,840 --> 00:07:36,160
Speaker 8: but Ukraine and the southern US border well is in

143
00:07:36,280 --> 00:07:39,520
Speaker 8: some state of abeyance today. Some Republicans in the US

144
00:07:39,600 --> 00:07:42,320
Speaker 8: senator lining up, saying that the proposal at fellow Republican

145
00:07:42,360 --> 00:07:45,640
Speaker 8: House Speaker Mike Johnson has lined up aid to Israel

146
00:07:45,680 --> 00:07:49,680
Speaker 8: and has passed the House separating Ukraine will not pass

147
00:07:49,920 --> 00:07:53,000
Speaker 8: the Senate. Senator Lindsay Graham says there will have to

148
00:07:53,080 --> 00:07:54,080
Speaker 8: be a compromise.

149
00:07:54,240 --> 00:07:57,880
Speaker 12: I like paying for things, but in emergencies we normally don't.

150
00:07:58,480 --> 00:08:00,920
Speaker 12: I could put a Democrats could put a pay for

151
00:08:01,080 --> 00:08:04,160
Speaker 12: that I would disagree with. So when it gets over here,

152
00:08:04,400 --> 00:08:09,000
Speaker 12: we'll hopefully put a package together that includes Israel, Ukraine,

153
00:08:09,040 --> 00:08:09,920
Speaker 12: and border security.

154
00:08:10,040 --> 00:08:14,280
Speaker 8: Graham says, emergencies are emergencies, and South Korea Spy Agency

155
00:08:14,320 --> 00:08:17,360
Speaker 8: says North Korea has sent more than one million rounds

156
00:08:17,400 --> 00:08:19,800
Speaker 8: of artillery to Russia that it appears to be using

157
00:08:20,080 --> 00:08:23,720
Speaker 8: in its bombardment of Ukraine. The agency says about ten

158
00:08:23,760 --> 00:08:27,480
Speaker 8: shipments of weapons from North Korea to Russia. Global News

159
00:08:27,520 --> 00:08:29,960
Speaker 8: twenty four hours a day and whatever you wanted with

160
00:08:30,040 --> 00:08:33,440
Speaker 8: Bloomberg News now in San Francisco. I'm Ed Baxter, and

161
00:08:33,480 --> 00:08:34,520
Speaker 8: this is Bloomberg.

162
00:08:34,520 --> 00:08:37,360
Speaker 2: I'm Brian Curtis along with Rashad Salat, and our guest

163
00:08:37,480 --> 00:08:41,439
Speaker 2: now is Danielle Di Martino, Booth CEO and chief strategist

164
00:08:41,920 --> 00:08:44,760
Speaker 2: at q I Research to take a closer look at

165
00:08:44,800 --> 00:08:47,520
Speaker 2: the FED. Danielle, thanks very much, as usual for being

166
00:08:47,520 --> 00:08:50,400
Speaker 2: with us. The FED chief J. Powell was pretty careful

167
00:08:50,480 --> 00:08:53,880
Speaker 2: in his language today, but he did suggest that the

168
00:08:54,440 --> 00:08:57,640
Speaker 2: risk of not doing enough versus the risk of doing

169
00:08:57,679 --> 00:09:01,480
Speaker 2: too much was nearly bound. Does that give us an

170
00:09:01,520 --> 00:09:03,240
Speaker 2: indication that the FED is now done?

171
00:09:03,720 --> 00:09:06,000
Speaker 13: As careful as he was, and boy, it felt like

172
00:09:06,040 --> 00:09:08,640
Speaker 13: he was scripted the entire time. Some of his first

173
00:09:08,880 --> 00:09:12,600
Speaker 13: answers he actually read as careful as he was. He

174
00:09:12,720 --> 00:09:17,120
Speaker 13: was also equally adamant that this does not mean even

175
00:09:17,120 --> 00:09:19,920
Speaker 13: though historically speaking, we have never seen a FED pause

176
00:09:20,360 --> 00:09:21,240
Speaker 13: two meetings in.

177
00:09:21,200 --> 00:09:24,680
Speaker 5: A row and the next move not be a rate cut.

178
00:09:25,280 --> 00:09:29,800
Speaker 13: He was painfully explicit in saying, there's there could be

179
00:09:29,840 --> 00:09:31,400
Speaker 13: another rate hike on the table.

180
00:09:31,559 --> 00:09:34,400
Speaker 5: Do not just play by history script.

181
00:09:34,559 --> 00:09:37,840
Speaker 14: But I mean the playbook surely is ultimately Daniel that

182
00:09:38,280 --> 00:09:40,160
Speaker 14: you know the bone market is doing the job now,

183
00:09:40,480 --> 00:09:43,120
Speaker 14: that this is something that was obvious that the debt

184
00:09:43,200 --> 00:09:43,800
Speaker 14: would happen.

185
00:09:44,320 --> 00:09:46,680
Speaker 13: Yes, and I think that that the same could have

186
00:09:46,679 --> 00:09:48,960
Speaker 13: been said when when Reagan blew the deficit up, or

187
00:09:49,040 --> 00:09:52,840
Speaker 13: when when when Trump spent even more money and and

188
00:09:52,840 --> 00:09:54,760
Speaker 13: and and caused the deficit and the debt to grow

189
00:09:54,760 --> 00:09:57,720
Speaker 13: at an even faster pace. H Wall Street always wants

190
00:09:57,720 --> 00:10:01,760
Speaker 13: a narrative to accompany it's it's crowded positioning, and I

191
00:10:01,800 --> 00:10:02,199
Speaker 13: get that.

192
00:10:03,000 --> 00:10:04,400
Speaker 5: And there's absolutely no doubt that.

193
00:10:04,679 --> 00:10:07,560
Speaker 13: A year ago we were talking about Powell being very

194
00:10:07,600 --> 00:10:10,280
Speaker 13: resolute at the podium and saying, I don't see any

195
00:10:10,320 --> 00:10:12,840
Speaker 13: evidence of a tightening campaign in financial conditions. As far

196
00:10:12,880 --> 00:10:16,079
Speaker 13: as I'm concerned, we can keep going. He's certainly not

197
00:10:16,160 --> 00:10:18,839
Speaker 13: saying that today. Today he said that there's evidence that

198
00:10:19,520 --> 00:10:24,400
Speaker 13: something beyond monetary policy is causing rates at the long

199
00:10:24,480 --> 00:10:28,640
Speaker 13: end to rise and thereby manifesting in tighter credit and

200
00:10:28,679 --> 00:10:29,640
Speaker 13: financial conditions.

201
00:10:30,080 --> 00:10:32,600
Speaker 2: Well, you wouldn't expect to fed here, with the great

202
00:10:32,679 --> 00:10:36,320
Speaker 2: volatility we've seen in treasury yields to be definitive. I

203
00:10:36,360 --> 00:10:39,800
Speaker 2: don't think if they are data dependent. You know, you

204
00:10:39,840 --> 00:10:43,120
Speaker 2: have some time now before the December meeting. There's no

205
00:10:43,760 --> 00:10:46,280
Speaker 2: I don't think too many people expected him to flat

206
00:10:46,320 --> 00:10:49,800
Speaker 2: out say today that they were done.

207
00:10:49,960 --> 00:10:51,600
Speaker 5: No, No, he didn't.

208
00:10:51,640 --> 00:10:54,200
Speaker 13: And in fact, when he was pointedly asked, have you

209
00:10:54,480 --> 00:10:57,800
Speaker 13: put recession back into your calculus, he said absolutely not.

210
00:10:58,160 --> 00:10:59,240
Speaker 5: Don't get that impression.

211
00:11:00,040 --> 00:11:03,280
Speaker 13: And to your point, he said, we've got two inflation reports,

212
00:11:03,320 --> 00:11:06,680
Speaker 13: to employment reports, you know, more reads on what the

213
00:11:06,720 --> 00:11:09,600
Speaker 13: economy is doing before we meet again on December the

214
00:11:09,640 --> 00:11:12,920
Speaker 13: twelfth and thirteenth. A lot of data to get through

215
00:11:13,000 --> 00:11:15,760
Speaker 13: before there's any determination about what the next move might

216
00:11:15,880 --> 00:11:16,360
Speaker 13: or might not be.

217
00:11:16,840 --> 00:11:20,200
Speaker 14: Now, what was the part of his Q and A

218
00:11:20,320 --> 00:11:21,840
Speaker 14: that you found most instructive.

219
00:11:22,320 --> 00:11:24,160
Speaker 13: I'm not going to make something up out of thin air.

220
00:11:24,720 --> 00:11:29,400
Speaker 13: I really didn't find much that was instructed. I say,

221
00:11:30,679 --> 00:11:33,199
Speaker 13: and really, I mean, this is what I do. I'm

222
00:11:33,200 --> 00:11:36,240
Speaker 13: the Fed whisper. What I did find most intriguing. My

223
00:11:36,320 --> 00:11:39,400
Speaker 13: biggest takeaway from today was the addition of the word

224
00:11:39,760 --> 00:11:43,360
Speaker 13: financial and credit conditions. They added the one word financial

225
00:11:44,040 --> 00:11:47,240
Speaker 13: to the statement, And as a nine year veteran of

226
00:11:47,280 --> 00:11:49,280
Speaker 13: the Federal Reserve, I can tell you that adding a

227
00:11:49,320 --> 00:11:52,079
Speaker 13: word to the statement that by the way, Jay Powell's

228
00:11:52,080 --> 00:11:55,400
Speaker 13: made very much shorter than his predecessors, much tighter, which

229
00:11:55,400 --> 00:11:59,800
Speaker 13: means that the bar is even set higher to add

230
00:11:59,840 --> 00:12:02,920
Speaker 13: a word of the statement, but substituting out you know,

231
00:12:03,920 --> 00:12:07,680
Speaker 13: solid for moderate, substitute adding the word financial. To me,

232
00:12:07,760 --> 00:12:10,880
Speaker 13: at least, the statement said the most today, much less

233
00:12:10,880 --> 00:12:12,559
Speaker 13: than Powell set of the podium.

234
00:12:12,880 --> 00:12:17,160
Speaker 2: Speaking about honesty versus maybe just a little bit of dishonesty.

235
00:12:18,400 --> 00:12:20,280
Speaker 2: I know that they want to air on the side

236
00:12:20,559 --> 00:12:23,960
Speaker 2: of crushing inflation. But every time he got asked a

237
00:12:24,040 --> 00:12:26,960
Speaker 2: question about that had anything to do with possible cuts

238
00:12:27,040 --> 00:12:31,400
Speaker 2: next year, you know, he just dismisses it so directly

239
00:12:31,880 --> 00:12:34,240
Speaker 2: that you wonder how honest that is that the committee

240
00:12:34,280 --> 00:12:37,320
Speaker 2: is never even talking about what might happen next year,

241
00:12:38,000 --> 00:12:40,400
Speaker 2: you know, under certain scenarios, and we always talk about

242
00:12:40,640 --> 00:12:43,440
Speaker 2: people at war having to figure out what comes next.

243
00:12:44,040 --> 00:12:45,480
Speaker 5: Should we really believe.

244
00:12:45,160 --> 00:12:48,400
Speaker 2: They're not even talking at all about the possibility of

245
00:12:48,440 --> 00:12:49,120
Speaker 2: cuts next year.

246
00:12:50,080 --> 00:12:53,280
Speaker 13: No, No, I don't, and I mean, I'll use a

247
00:12:53,320 --> 00:12:57,400
Speaker 13: polite word, that's disingenuous for him to even say. Of course,

248
00:12:57,400 --> 00:12:59,960
Speaker 13: they're looking out over the horizon at the potential effect

249
00:13:00,240 --> 00:13:03,280
Speaker 13: of any numerous set of factors, and of course they're

250
00:13:03,320 --> 00:13:06,320
Speaker 13: talking about what could trigger a rate cut in twenty

251
00:13:06,360 --> 00:13:06,920
Speaker 13: twenty four.

252
00:13:07,960 --> 00:13:09,880
Speaker 5: The line he's trying to hold, though, is that.

253
00:13:09,840 --> 00:13:12,880
Speaker 13: Of higher for longer and as long as you convince

254
00:13:12,960 --> 00:13:15,200
Speaker 13: markets that that's going to be your stance, and that

255
00:13:15,240 --> 00:13:17,600
Speaker 13: you're not even talking about talking about or thinking about

256
00:13:17,640 --> 00:13:20,440
Speaker 13: thinking about cutting rates, that they're going to be able

257
00:13:20,440 --> 00:13:24,080
Speaker 13: to continue on, as they said, shrinking the Fed's balance

258
00:13:24,080 --> 00:13:27,080
Speaker 13: sheet month after month after month after month, and hoping

259
00:13:27,080 --> 00:13:29,600
Speaker 13: to God that nobody realizes that that's its own form

260
00:13:29,920 --> 00:13:31,200
Speaker 13: of incremental.

261
00:13:30,679 --> 00:13:34,800
Speaker 14: Tightening incremental tightening, Except was there any reference to the

262
00:13:35,480 --> 00:13:39,960
Speaker 14: effective rates or the international environment as it is in

263
00:13:40,040 --> 00:13:41,480
Speaker 14: terms of how they're thinking.

264
00:13:41,720 --> 00:13:46,959
Speaker 13: When he was talking about endogenous factors, that included what's

265
00:13:47,000 --> 00:13:51,400
Speaker 13: happening in Israel with Hamas, that included Ukraine, that included

266
00:13:51,480 --> 00:13:54,160
Speaker 13: also the potential for a government shut down here in

267
00:13:54,200 --> 00:13:59,240
Speaker 13: the United States. And because Powell is somewhat dismissive by

268
00:13:59,360 --> 00:14:02,079
Speaker 13: putting together all of these factors into a kind of

269
00:14:02,200 --> 00:14:05,680
Speaker 13: kitchen sink effect of saying anything could affect the outcome,

270
00:14:06,320 --> 00:14:09,640
Speaker 13: one really must wonder how how much credency gives to

271
00:14:09,679 --> 00:14:11,440
Speaker 13: what's going on outside the United States.

272
00:14:11,559 --> 00:14:14,160
Speaker 2: Daniel thanks so much for being with us. Danielle DiMartino,

273
00:14:14,240 --> 00:14:19,880
Speaker 2: Booth CEO and chief strategist for QI Research. This is

274
00:14:19,880 --> 00:14:22,960
Speaker 2: Bloomberg Daybreak Asia, your morning brief on the story's making

275
00:14:23,000 --> 00:14:25,880
Speaker 2: news from Hong Kong to Singapore and Wall Street.

276
00:14:25,920 --> 00:14:29,880
Speaker 1: Look for us on your podcast feed every day on Apple, Spotify,

277
00:14:30,160 --> 00:14:32,160
Speaker 1: and anywhere else you get your podcasts.

278
00:14:32,160 --> 00:14:34,760
Speaker 2: You can also listen live each day on Bloomberg eleven

279
00:14:34,800 --> 00:14:37,160
Speaker 2: three to zero in New York, Bloomberg ninety nine to

280
00:14:37,160 --> 00:14:40,400
Speaker 2: one in Washington, Bloomberg one oh six y one in Boston,

281
00:14:40,680 --> 00:14:43,160
Speaker 2: and Bloomberg nine sixty in San Francisco.

282
00:14:43,240 --> 00:14:46,080
Speaker 1: Our flagship New York station is also available on your

283
00:14:46,120 --> 00:14:51,200
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

284
00:14:51,040 --> 00:14:54,200
Speaker 2: Plus listen coast to coast on the Bloomberg Business app,

285
00:14:54,480 --> 00:14:58,720
Speaker 2: Sirius XM Channel one nineteen, the iHeartRadio app, and on

286
00:14:58,760 --> 00:15:01,800
Speaker 2: Bloomberg dot com. I'm Brian Curtis.

287
00:15:01,720 --> 00:15:04,160
Speaker 1: And I'm Doug Prisoner. Join us again tomorrow for all

288
00:15:04,200 --> 00:15:06,680
Speaker 1: the news you need to start your day right here

289
00:15:06,760 --> 00:15:10,360
Speaker 1: on Bloomberg day Break Asia