Speaker 1: Good morning. I'm Brian Curtis and I'm Doug Prisner. Here
Speaker 1: are the stories we're following today.
Speaker 2: Officials in Kanters say that a short truce in the
Speaker 2: war between Israel and Hamas will begin on Friday morning.
Speaker 2: Let's get to Doug prisoner in New York with Global News.
Speaker 1: Doug Brian at the beginning of this truth is it
Speaker 1: actually a day later than initially expected. Hamas is set
Speaker 1: to free fifty hostages, while Israel intends to release one
Speaker 1: hundred and fifty jailed Palestinians. All two hundred will be
Speaker 1: women and children. Now, Israeli Prime Minister Benjaminette Yahoo was
Speaker 1: saying he's still confident on freeing all of the roughly
Speaker 1: two hundred and forty people abducted by Hamas last month.
Speaker 1: Bloomberg's owner Aunt says the possibility of releasing more prisoners
Speaker 1: is already part of the agreement.
Speaker 3: That idea has already been built in to the current
Speaker 3: truce agreement. So if after the release of fifty Israelis hostages,
Speaker 3: Hamas decides to release or agrees to releasing more for
Speaker 3: ten hostages, it gets another day of extension to the
Speaker 3: truth so that idea is also already there and obviously
Speaker 3: it was one of the main driving forces when Katar
Speaker 3: and others mediated the seal.
Speaker 1: That is Bloomberg's owner Aunt. We go to the Netherlands,
Speaker 1: where politics is shifting to the far right. Populist Girt
Speaker 1: Wilders have won a huge election victory. Now he is
Speaker 1: in line to lead talks in the formation of a
Speaker 1: coalition government and the possibility of becoming the next Prime minister.
Speaker 1: Wilders as champion policies against immigration and Islam. Meantime, the
Speaker 1: most valuable company in the Netherlands ASML is calling for
Speaker 1: a reliable government and a consistent long term policy to
Speaker 1: ensure an attractive business climate. ASML said, the availability of
Speaker 1: Dutch talent is not sufficient to meet current demand, and
Speaker 1: any restrictions on the amount of knowledge workers or international
Speaker 1: students relative or relevant, I should say for the tech
Speaker 1: industry is undesirable. New York City Mayor Eric Adams is
Speaker 1: being accused of sexually assaulting a woman back in nineteen
Speaker 1: ninety three. A legal summons filed Wednesday is listing the
Speaker 1: defendants as Adams, the NYPDS Transit Bureau, and the department's
Speaker 1: Guardians Association. Adams was a police captain when the alleged
Speaker 1: assault took place. Speaking to reporters earlier today, the mayor
Speaker 1: said he's never met the woman who made the claim.
Speaker 4: It's absolutely not true, you know, I would, I would
Speaker 4: never do anything to harm anyone. My career speaks for itself,
Speaker 4: and just really is something absolutely that has never happened in.
Speaker 1: That is a New York City Mayor Eric Adams. Now,
Speaker 1: the summons was filed under the New York Adult Survivors Act,
Speaker 1: if temporarily suspended the statute of limitations for sexual assault cases. Now,
Speaker 1: the accusation does come during the FBI's investigation into the
Speaker 1: mayor's twenty twenty one campaign financing. The World Health Organization
Speaker 1: is asking China for detailed information about a surge in
Speaker 1: respiratory illnesses among children, including pneumonia. Top pediatric medical centers
Speaker 1: across China are being overwhelmed with patients. The resurgence comes
Speaker 1: as China heads into its first winter after easing COVID restrictions,
Speaker 1: and it appears children have been particularly hard hit. Global
Speaker 1: news twenty four hours a day and whenever you wanted
Speaker 1: with Bloomberg News. Now, I'm Doug Prisner in New York.
Speaker 2: Brian Curtis and Paul Allen. Let's take a look at
Speaker 2: some of the top business stories now of the hour.
Speaker 2: Barklay's is said to be planning one point three billion
Speaker 2: dollars in cost cutting over the next several years. Bloomberg
Speaker 2: Sarah Livesey has details.
Speaker 5: Reuter's reports as many as two thousand jobs are on
Speaker 5: the line. That's about two percent of the bank's workforce.
Speaker 5: Any job cuts are expected to come from Barclay's Execution Services,
Speaker 5: the unit that encompasses the group's back office. However, the
Speaker 5: lender could prioritize layoffs in other areas as well. Blays
Speaker 5: said it will provide an update alongside four year results
Speaker 5: in February. The bank's latest quarterly results were disappointing, prompting
Speaker 5: a slide in its stock price. So far this year,
Speaker 5: Barclay's shares are down eleven and a half percent in
Speaker 5: New York. I'm Sarah Livesey Bloomberg Radio.
Speaker 6: Germany will suspend the constitutional limits on new borrowing for
Speaker 6: a fourth consecutive year. This comes after Chancellor Left Schulz's
Speaker 6: government was forced into a radical budget overhaul by a
Speaker 6: ruling last week from the nation's top court. We've got
Speaker 6: more from Bloomberg's Zoe Schenevis Kristin Linnet.
Speaker 7: The Finance Minister is a fiscal hawk, and he had
Speaker 7: said in twenty twenty three we're going back to the
Speaker 7: death break now that all would have been fine if
Speaker 7: it hadn't been that the way Germany was spending that
Speaker 7: money wasn't a way that was outside of the normal budget.
Speaker 7: That Constitutional court decision last week said that is not okay.
Speaker 7: That's that you can't function like this. It's unconstitutional. So
Speaker 7: that means that they've spent all this money for twenty
Speaker 7: twenty three and it's late November at this stage, you
Speaker 7: can't get that money back in any other way.
Speaker 6: It's Bloomberg's Zoe shanews. The emergency move to lift the
Speaker 6: so called debt break will be part of a revised
Speaker 6: twenty twenty three budget that will be presented next week.
Speaker 6: Brian Well.
Speaker 2: Chinese regulators are eyeing unprecedented aid to developers to ease
Speaker 2: the property crisis. Bloomberg's David and Glace has more from
Speaker 2: Hong Kong we Here.
Speaker 8: China may allow banks to offer unsecured short term loans
Speaker 8: to qualified developers for the first time. These so called
Speaker 8: working capital loans would offer funds for day to day operations.
Speaker 8: The loans are different from other types of debt that
Speaker 8: require land or assets as collateral. Earlier, we reported that
Speaker 8: authorities are finalizing this list of developers eligible for that aid.
Speaker 8: Sources say the list includes Country Garden and Sino Ocean Group.
Speaker 8: Country Garden shares jump twenty four percent yesterday on word
Speaker 8: that it was included in that list. In Hong Kong,
Speaker 8: I'm David ingless.
Speaker 6: Bloomberg Radio Openaie reinstated CEO Sam Altman this week after
Speaker 6: hunters of workers threatened to quit over the chet GPT
Speaker 6: creator's ouster. The move highlights just how much leverage the
Speaker 6: tech industry's most valued workers hold right now. With more
Speaker 6: on just how much they're valued is Bloomberg's Charlie Palette.
Speaker 9: The most common salary range for an engineering job listed
Speaker 9: on OpenAI's website is between two hundred thousand and three
Speaker 9: hundred seventy thousand dollars, and Roger Lee, co founder of
Speaker 9: compensation benchmarking firm Comprehensive dot Io, says a handful of
Speaker 9: more specialized roles advertised ranges between three hundred thousand and
Speaker 9: four hundred and fifty thousand dollars and according to levels
Speaker 9: dot Fyi salary ranges do not include bonuses or stock awards,
Speaker 9: which can bring an annual salary of three hundred thousand
Speaker 9: dollars closer to eight hundred thousand dollars in total compensation.
Speaker 9: In New York, Charlie Pellet Bloomberg Radio.
Speaker 2: Well we've reached the unofficial start of the holiday shopping season.
Speaker 2: Bloomberg's Nancy Lyons has a preview of what we can
Speaker 2: expect on the retail front.
Speaker 10: The National Retail Federation expects holiday spending in November and
Speaker 10: December to grow three to four percent compared to the
Speaker 10: same time last year.
Speaker 7: J C.
Speaker 10: Penny CEO Mark Rosen says consumers are spending more, but
Speaker 10: they're doing it wisely.
Speaker 11: I think what you are going to see is that
Speaker 11: consumers are much more focused on value than they've ever
Speaker 11: been before, and we're seeing that in shopping behavior this year.
Speaker 10: JC Penny CEO Mark Rosen, speaking on Bloomberg Television. The
Speaker 10: National Retail Federation estimates a record one hundred and eighty
Speaker 10: two million people plan to shop in store and online
Speaker 10: from Thanksgiving Day through Cyber Monday. I'm Nancy Lyons Bloomberg Radio.
Speaker 2: Joining us live on the show is Barbara and Bernard,
Speaker 2: founder and CIO of Windcrest Capital, for a look at market. Sappy, thanksgiving, Barbara,
Speaker 2: and thanks for joining us. Well, we have a number
Speaker 2: of stories, as you probably heard there across the terminal
Speaker 2: this morning, looking at central banks, particularly in Asia, looking
Speaker 2: at starting to cut interest rates next year. Will the
Speaker 2: Fed join that party in the first half?
Speaker 11: Well's certainly what the markets are pricing in, right and
Speaker 11: you know, the US market is pretty euphoric right now
Speaker 11: in anticipation of that. And I would just like to
Speaker 11: caution that if central banks are cutting rates, it's because
Speaker 11: inflation has fallen, and that's because demand has and that
Speaker 11: also means unemployment goes up, which hurts corporate profitability. So
Speaker 11: being giddy that we're getting lower rates and being and
Speaker 11: forgetting to be mindful of lower earnings seems it seems
Speaker 11: a bit foolhardy to me. And so I think, I
Speaker 11: see I want to be cautious here and not joining
Speaker 11: the momentum trade.
Speaker 6: Wow, does that mean bad news? Actually means bad news?
Speaker 11: I think you have lower growth globally, right, and that's
Speaker 11: the whole point of raising rates was exactly that, and
Speaker 11: you're seeing it come through in earnings. You know, their
Speaker 11: long and variable lags. You look at a company like
Speaker 11: Deer who reported this week, and that's a stock that
Speaker 11: stay on this year, and they cited a weaker outlook
Speaker 11: on the back of lower crop prices, right, and higher
Speaker 11: interest rates impacting demand for tractors. And that's what you
Speaker 11: would expect out of this environment. And so if the
Speaker 11: lags when we raised rates were long and variable, they
Speaker 11: will be when we cut rates too. So I think,
Speaker 11: you know, getting overly excited too soon and assuming that
Speaker 11: we'll just land this plane perfectly is really giving the
Speaker 11: FED a lot of credit.
Speaker 2: You mentioned a little bit of euphoria in equity markets.
Speaker 2: If you look back over two years, though the S
Speaker 2: and P five hundred, and really most stocks in the
Speaker 2: S and P five hundred are actually lower than where
Speaker 2: they were at the end of twenty twenty one. So
Speaker 2: the euphoria, I suppose, is just here of late, but
Speaker 2: not necessarily if you take it back during that entire period.
Speaker 11: I think it's an excellent point. You are absolutely right,
Speaker 11: since the index is no higher than it was at
Speaker 11: the end of twenty twenty one, it's been within this
Speaker 11: range of thirty five hundred to forty eight hundred, and
Speaker 11: it's been a trader's market as opposed to a long
Speaker 11: term value investors market right where you buy a compounder.
Speaker 11: And what's done well is the megacaps, So an equally
Speaker 11: weighted index you know has not done anywhere near as
Speaker 11: well as as as the you know s and P
Speaker 11: five hundred the more concentrated and diseased this year, and
Speaker 11: that's a function that you're seeing globally. Small caps are
Speaker 11: trading at a discount to large caps, and the US
Speaker 11: small caps trade for eight point one times ev day,
Speaker 11: Badawar's large caps are at thirteen point six times, and
Speaker 11: you're similar eight versus eleven, Japan six point eight versus ten.
Speaker 11: So what's happening is these big companies and these big
Speaker 11: indue keep getting bigger, and where you're finding more value
Speaker 11: is in these smaller cap companies that get forgotten and
Speaker 11: an orphaned if you will. But then you have to
Speaker 11: ask if what drives valuation these days as fun flows,
Speaker 11: what finds them? So it's a super tricky time.
Speaker 6: At the same time, though we do have really high rates,
Speaker 6: is it just appealing to stay in cash and fixed.
Speaker 11: Income against formidable headwinds. That's never a bad idea, right
Speaker 11: I would have some cash here. I like a five
Speaker 11: percent risk free rate. I also like private credit where
Speaker 11: I can, you know, develop infrastructure projects with twenty year
Speaker 11: PPAs where I don't have to worry about growth rates
Speaker 11: and interest rates next year. And so I think people
Speaker 11: are getting creative. And you know, if you want the index,
Speaker 11: great by it. But if you want alpha, you're gonna
Speaker 11: have to do something different, and that's either you know,
Speaker 11: fallen angel stocks or creating alpha via private credit.
Speaker 2: In my personal experience, private credit, by its very nature
Speaker 2: obviously is private. It's more difficult to access. I suppose
Speaker 2: for the average investor, can you give them a couple
Speaker 2: of ways to play that.
Speaker 11: Well? In my case, I went and took a stake
Speaker 11: in a project developer so that I could develop my
Speaker 11: own projects. And what I like about this is I
Speaker 11: have more control over the outcome. And it's a really
Speaker 11: interesting arbitrage right now because you're talking about a higher
Speaker 11: rate environment. And the other thing that's emblematic of this
Speaker 11: time right now is people are saying it's really hard
Speaker 11: to raise equity it's not if you have a project
Speaker 11: that's in demand. If you have a grain hydrogen project
Speaker 11: that is a double digit IRR for an investor. There
Speaker 11: are tons of large infrastructure funds who have raised capital
Speaker 11: looking for projects like that, and equally on the debt side,
Speaker 11: and these project perry up to eighty percent debt. There
Speaker 11: are a lot of banks that have allocated funds towards
Speaker 11: green product Jackson. They find can't find great ones to
Speaker 11: invest in. So if you can get concessionary debt rates
Speaker 11: in a higher rate environment, that's an arbitrage that'll take
Speaker 11: all day long. And and I just this is you know,
Speaker 11: you have to get creative. There's always something to do,
Speaker 11: but it's typically not what the rest of the market
Speaker 11: is doing.
Speaker 2: Barbara, and I just wanted to ask you kind of
Speaker 2: a quick follow. We've seen M and A and IPO
Speaker 2: activity be rather more of it this year. Do you
Speaker 2: expect yeah, opportunities coming next year.
Speaker 11: I certainly hope. So. I have a number of pre
Speaker 11: IPO opportunities that have not come to market this year.
Speaker 11: And you know, the sign of a healthy capital market
Speaker 11: is a healthy IPO market. And you know, if you
Speaker 11: say market has done so well, in the rally, Well,
Speaker 11: why all these companies afraid to come to market? So
Speaker 11: I personally would come to market if I were them,
Speaker 11: And so I am hopeful for everyone in our industry
Speaker 11: that we will see a resurgence of IPO activity into
Speaker 11: twenty twenty four. I noticed on your terminals today everyone's
Speaker 11: very excited about this, Goose sidebo.
Speaker 2: This is Bloomberg Daybreak Asia, your morning brief on this
Speaker 2: story's making news from Hong Kong to Singapore and Wall Street.
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Speaker 1: I'm Brian Curtis and I'm Doug Prisner. Join us again
Speaker 1: tomorrow for all the news you need to start your
Speaker 1: day right here on Bloomberg day Break Asia
Speaker 11: Four