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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is the Bloomberg Daybacurate podcast. Good morning, it's find

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Speaker 2: a the twenty first of November. I'm Caroline Hepka here

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Speaker 2: in London. Coming up today. Global stocks tumble back to

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Speaker 2: earth as Invidio's rosy outlook fails to ease AI bubble angst.

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Speaker 2: Japan's leader, Sanai Takeichi unveils plans for an economic cash

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Speaker 2: injection of one hundred and twelve billion dollars plus. UEFA

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Speaker 2: scores big with a new two point five billion euro

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Speaker 2: football rights deal as paramount sky Dance leaves rivals offside.

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Speaker 2: Let's start with a roundup of our top stories. Stocks

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Speaker 2: are poised for their worst week in seven months as

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Speaker 2: fears of an artificial intelligence bubble persist. The MSCI All

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Speaker 2: Country World Index has slumped almost three percent this week,

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Speaker 2: putting it on track for its sharpest weekly drop since April.

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Speaker 2: The moves wipe out earlier gains after Nvidia's strong earnings

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Speaker 2: report failed to soothe investor concerns about lofty valuations. Paul

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Speaker 2: Dobson is Bloomberg's Asia Markets executive editor.

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Speaker 3: Nobody really knows exactly what the trigger was but I

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Speaker 3: think that we have some sense of why it happens,

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Speaker 3: and that is still those concerns, not so much about

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Speaker 3: how much money in Video is going to raise from

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Speaker 3: selling all of its chips, but how exactly it's arranging

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Speaker 3: the sales, and whether the buyers are going to actually

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Speaker 3: be able to then viably pay for it all and

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Speaker 3: turn a profit on their investments.

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Speaker 2: Paul Dobson, speaking there as the pullback pushes the S

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Speaker 2: and P five hundred towards its worst November since two

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Speaker 2: thousand and eight to Asia now, where the Japanese yen

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Speaker 2: has held steady against the US dollar, after the cabinet

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Speaker 2: of Japanese Prime Minister Sana Takeichi approved the largest round

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Speaker 2: of extra spending since the Her stimulus package will include

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Speaker 2: one hundred and twelve billion dollars in new spending, with

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Speaker 2: the bulk of the measures aimed at price relief, designed

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Speaker 2: to address voters' frustrations over inflation. The announcement comes as

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Speaker 2: Japan issued the country's strongest warning yet over recent movements

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Speaker 2: in the yen. Speaking to reporters, the country's finance minister

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Speaker 2: specifically mentioned intervention as an option, as she tried with

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Speaker 2: only limited impact to stem falls in the currency. Ukraine's

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Speaker 2: allies have reacted negatively to a US Russian peace plan

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Speaker 2: that grants Moscow many of its key demands. Under the proposal,

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Speaker 2: Ukraine would be forced to see large chunks of territory,

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Speaker 2: cap the size of its military, and give up hopes

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Speaker 2: of NATO membership. In return, the country would receive a

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Speaker 2: US security guarantee that Washington would be compensated for. President

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Speaker 2: Zelinski says that he's agreed to work on the peace

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Speaker 2: plan and will meet with President Trump in the coming

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Speaker 2: days to discuss the details. His words are spoken by

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Speaker 2: a translator, Yavjushim.

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Speaker 4: Ukraine needs peace and Ukraine will do everything to ensure

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Speaker 4: that no one in the world can.

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Speaker 5: Say that we are undermining diplomacy.

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Speaker 2: This is important to this, President Zelinski, speaking there via translator,

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Speaker 2: as the Greek Prime Minister Kyriakos Mitsutakis, told Bloomberg's editor

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Speaker 2: in chief John Micklethwaite that he believes a lot of

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Speaker 2: the US proposals, and the proposals overall are quote quite problematic. Now,

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Speaker 2: Germany is pressing the European Union to give the UK

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Speaker 2: access to its one hundred and fifty billion euro Defense Fund.

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Speaker 2: The EU is demanding that Britain contribute to billion euros,

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Speaker 2: which is well above its initial offer of a few

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Speaker 2: hundred million, but Germany wants both sides to reach a

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Speaker 2: compromise ahead of the November thirtieth deadline to a life

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Speaker 2: for funds. And here in the UKA closely watched consumer

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Speaker 2: confidence survey has fallen on every measure. The news comes

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Speaker 2: ahead of the Labor government's budget announcement next week, which

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Speaker 2: is expected to include a range of tax hikes. Are

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Speaker 2: Chief UK economists Dan Hansen, says that British consumers will

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Speaker 2: likely all to their behavior in response to the changes.

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Speaker 4: You know, you can look at it now and say, well,

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Speaker 4: if I put capital game to tax I put that

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Speaker 4: up by one percentage point. You know that currently raises X,

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Speaker 4: Well I could get a little bit more money. But

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Speaker 4: what actually happens is that people look at that and

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Speaker 4: move their money elsewhere. And the tax base is very mobile.

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Speaker 4: So if you have a lot of small measures with

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Speaker 4: that risk attached, you end up in a world where

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Speaker 4: you struggle to raise you potentially, I should say struggle

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Speaker 4: to raise the money. There's just a lot more uncertainty.

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Speaker 2: Dan Hanson speaking there about the idea of multiple taxes

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Speaker 2: being raised in the UK budget next week and what

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Speaker 2: might be the reaction now. Research company GF says that

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Speaker 2: its overall confidence level fell two points in November to

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Speaker 2: an index score of minus nineteen in terms of UK

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Speaker 2: consumer confidence. A further study found that Brexits has caused

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Speaker 2: almost twice as much damage to the UK economy as

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Speaker 2: initially thoughed. The research, which has been presented to the

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Speaker 2: Office for Budget Responsibility, shows that the departure from the

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Speaker 2: EU has lost the country between one hundred and eighty

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Speaker 2: and two hundred and forty billion pounds over the last decade.

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Speaker 2: And lastly, football's European governing body has managed to achieve

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Speaker 2: a steep increase in the value of its media rights.

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Speaker 2: The revenue boost will be seen as a success for

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Speaker 2: the organization and its competitions. Plomberg's teaba at a Bio

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Speaker 2: has more.

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Speaker 6: A US broadcaster, has won television rights for the most

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Speaker 6: Champions League matches, Europe's top flight football competition. It's a

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Speaker 6: first international push for Paramount Skuydance, who agreed the deal

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Speaker 6: following an altered bidding process for the show piece tournament

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Speaker 6: geared towards boosting its appeal to streamers. The firm is

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Speaker 6: owned by David Ellison, whose father Larry Ellison co founded

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Speaker 6: US technology company Oracle. Bloomberg understands UEFER will receive two

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Speaker 6: point five billion euros a year for the next cycle,

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Speaker 6: which runs from twenty twenty seven to twenty thirty one.

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Speaker 6: That's up from about two billion euros in the last round.

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Speaker 6: This year's tender process was the first conducted on UEFA's

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Speaker 6: behalf by US owned agency Relevant Football Partners and UC three,

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Speaker 6: the commercial arm of UEFA and the European Football Clubs

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Speaker 6: in London Tea at a Baio Bloomberg Radio.

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Speaker 2: And those are our top stories today. Looking at the

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Speaker 2: markets right now, the COSPI is currently slumping three point

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Speaker 2: seven percent lower, the masci Asia Pacific Index down by

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Speaker 2: one point six percent, and the All Country World Index

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Speaker 2: dropping a quarter of one percent.

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Speaker 1: This morning.

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Speaker 2: Stop futures are also lower for Europe. If we look

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Speaker 2: at the USOX fifty futures this hour, down by one

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Speaker 2: and a half percent. US stop futures are just about

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Speaker 2: in the green. That reflects the different closes that we

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Speaker 2: had yesterday. So actually European stocks closed up four tenths.

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Speaker 2: US stocks slumped at the end of the day on Thursday.

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Speaker 2: The Japanese yen is climbing. Bitcoin really struggling this week,

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Speaker 2: currently trading just above eighty five thousand dollars. Brink CRWD

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Speaker 2: futures are also weaker one point one percent, antennure treasuries flat,

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Speaker 2: the yield at four spots zero nine percent. So those

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Speaker 2: are the markets, Cinema. We're going to bring you the

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Speaker 2: latest on that big stock market reversal, as well as

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Speaker 2: Japan's massive stimulus plans. But another story has really caught

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Speaker 2: my eye this morning. I wonder whether you're getting ready

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Speaker 2: for the Ashes. Of course, this is the oldest contest

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Speaker 2: in cricket is five test matches up to five days each,

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Speaker 2: and of course it takes place between Australia and England.

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Speaker 2: Bloomberg's Adam Blenford has been writing about this. Why because

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Speaker 2: he's been looking at the rise of unruly sports or

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Speaker 2: whether it really has been a rise, whether it's different

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Speaker 2: now that it was thirty forty fifty years ago. Look,

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Speaker 2: he does a beautiful job of talking about the fierce

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Speaker 2: rivalry between England and Australia that dates back almost one

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Speaker 2: hundred and fifty years in terms of the ashes that

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Speaker 2: it taps into patriotism, but that is also rather fraught

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Speaker 2: and difficult. He then goes on to talk about lots

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Speaker 2: of other sports events that have also seen quite a

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Speaker 2: lot of more unruly crowds, like the Ryder Cup that

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Speaker 2: we were talking about earlier this year. It took place

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Speaker 2: in New York in September, and that was very unruly.

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Speaker 2: There were lots of insults and even expletives and beer

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Speaker 2: that was thrown at some of the European golfers. So

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Speaker 2: it's kind of cricket, golf, even tennis that is seeing

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Speaker 2: this more unsociable behavior. Bit of a metaphor for our

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Speaker 2: divided times, is what Adam calls it. And he speaks

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Speaker 2: to a number of really interesting researchers in this field.

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Speaker 2: Daniel warn who's at Murray State University, who's been looking

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Speaker 2: at sports psychology for decades. He says it's very difficult

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Speaker 2: to track the ways that behavior is getting worse, but

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Speaker 2: he does say that changing standards of empathy and just

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Speaker 2: civility in public life means that this kind of anti

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Speaker 2: social behavior is on the rise. And Christina Philippoo over

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Speaker 2: at Portsmouth University, saying that perhaps this is behind the

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Speaker 2: very quickly rapidly expanding popularity of some of the women's

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Speaker 2: sports teams because they're focused on inclusive and sort of

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Speaker 2: safe fan experiences. I just thought it was a really nice,

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Speaker 2: thoughtful piece from Bloomberg's Adam Blenford about the cricket and

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Speaker 2: the culture I guess in sports. I'm going to put

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Speaker 2: a link to it in our show notes. Now stocks

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Speaker 2: are ploys for their worst week in seven months. It

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Speaker 2: looks like the MSCI All Country World Index down almost

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Speaker 2: three percent this week, joining US now as Boeberg's Markets

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Speaker 2: report a value titel to put it into context for US,

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Speaker 2: I mean this basically since the big announcement on tariffs

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Speaker 2: from President Chump, what happened yesterday, because it's been a

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Speaker 2: lot effecting market.

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Speaker 7: Look, what happened yesterday essentially is a session that is

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Speaker 7: going to put hair on some young traders. At CHEST.

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Speaker 7: We had a four percent slide in the Nasdaq in

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Speaker 7: an hour and forty minutes, Caroline, I mean, you don't

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Speaker 7: see steep reversals like this very often. It was one

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Speaker 7: of the biggest intra day swings we've seen in the Nasdaq.

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Speaker 7: Since Covid, the second biggest since the price fluctuations we

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Speaker 7: saw back in April twenty twenty. We even see saw stocks.

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Speaker 7: You know, obviously Nvidia, the reversal in video was leading that,

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Speaker 7: but we also saw big reversals in some other chip names.

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Speaker 7: AMD was down eight percent by the end of the session,

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Speaker 7: Micron was down eleven percent. Only twelve stocks in the

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Speaker 7: Nasdaq yesterday ended in the green. The remainder were in

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Speaker 7: the red and what could be seen as quite a

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Speaker 7: pivotal session for how this market is viewing AI valuations.

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Speaker 7: That beat from Nvidia didn't last long when it came

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Speaker 7: to that boost it gave to global equity market. There

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Speaker 7: was also a steep decline in bitcoin. Bitcoin dropped five

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Speaker 7: percent in yesterday's session. It's declining again today, Caroline, and

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Speaker 7: listen to the statistic. Bitcoin has now made a new

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Speaker 7: low for eleven straight days. That's something we have never

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Speaker 7: seen in the world's largest cryptocurrency.

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Speaker 2: Yeah, absolutely wow, from the dizzying heights of one hundred and

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Speaker 2: twenty six thousand dollars down to eighty five goodness. And

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Speaker 2: also you do see the tech heavy sell off is

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Speaker 2: continuing today in Asia with names like Samsung Electronics, and

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Speaker 2: sk Heiniz, so that that kind of concern about the

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Speaker 2: AI story continuing. There was also payrolls data out yesterday,

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Speaker 2: and there's also now been some extra commentary from the federals,

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Speaker 2: from FED officials, and the consensus really seems to be

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Speaker 2: very very fraid.

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Speaker 7: Yeah, it does seem like the feads is fracturing how

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Speaker 7: they're communicating about their December decision. We had hawks and

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Speaker 7: doves in yesterday's session, all speaking after the September non

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Speaker 7: farm Peril report. Shaw showed that unemployment rose for the

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Speaker 7: third straight month to four point four percent, but there

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Speaker 7: was an increase when it came to job gains above

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Speaker 7: economist expectations. But we did hear from Goulesby saying he

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Speaker 7: was uneasy about cutting in December. We heard from bar

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Speaker 7: he was flagging inflation concerns, and then on the more

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Speaker 7: dovish side, we heard from FED Governor Lisa Cook. She's

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Speaker 7: saying she's keeping a close eye on private credit and

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Speaker 7: she warned about asset valuations. We also heard from Stephen Myron,

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Speaker 7: one of the vocal doves on the committee, saying the

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Speaker 7: FED should be moving towards neutral and then we heard

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Speaker 7: from Paulson, who is a voter next year in twenty

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Speaker 7: twenty six. She was actually talking about the September job release,

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Speaker 7: saying that the job gains were actually an acyclical sector

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Speaker 7: such as healthcare, and that normally is a precursor to

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Speaker 7: a slowdown. So it does seem like yesterday there was

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Speaker 7: a lot to talk about, both when it comes to

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Speaker 7: the Fed speak that we got and also trying to

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Speaker 7: understand what this September jobs release means and the way forward.

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Speaker 7: I think at the end of the day, there was

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Speaker 7: more focus on the marketed rise in unemployment over the

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Speaker 7: last three months than there was on the headline beat

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Speaker 7: on non farms. But the market is still really penciling

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Speaker 7: in December as a coin flip. We're pricing in around

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Speaker 7: thirty five percent odds that the FED does reduce rates

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Speaker 7: in December. But Carolina have to say, I have not

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Speaker 7: seen a FED as fractured like this in a long time.

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Speaker 7: Either which way they go, we could see up to

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Speaker 7: four to five descents on either side of the table.

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Speaker 2: Yeah, that is very interesting, isn't it. That's what's happening right.

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Speaker 2: Let's see how the session then plays out for the

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Speaker 2: rest of the day and going into your value titel

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Speaker 2: our market support. Many thanks with us. Sooks fifty futures

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Speaker 2: caught you down by one point four percent. Stay with us.

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Speaker 2: More from Bloombag day baqube coming up after this. Now, Wow,

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Speaker 2: let's think about what is happening in Japan. The Prime

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Speaker 2: Minister Sanai take Ichi and her cabinets have approved the

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Speaker 2: largest round of extra spending since the pandemic, a stimulus

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Speaker 2: package worth one hundred and twelve billion dollars. Joining us

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Speaker 2: now is Blinmberg's North Asia Senior Edit, Sir Brian Fowler

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Speaker 2: in Tokyo. Brian, good morning, Thanks for being with us.

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Speaker 2: What does this package say? Do you think about the

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Speaker 2: new prime minister's economic priorities?

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Speaker 1: Well, first, I would say, just by way of background,

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Speaker 1: Takaichi's ruling ledp staying two key election setbacks in the

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Speaker 1: last thirteen months, losing majorities first in the lower House

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Speaker 1: and then in the Upper House in last July. And

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Speaker 1: the main factor behind that was smoldering frustration among consumers

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Speaker 1: about three years of inflation. And you know those years

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Speaker 1: of inflation are coming after two decades when we saw

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Speaker 1: prices falling steadily. So people here, just we're not really

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Speaker 1: happy about seeing prices rised by roughly two and a

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Speaker 1: half to three percent consistently. So that's why we've got

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Speaker 1: a lot of subsidies in the package. And there's subsidies

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Speaker 1: to offset natural gas and electricity prices, and they're going

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Speaker 1: to cut the gasoline tax, and there's also going to

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Speaker 1: be allowances for kids. The other thing I would say,

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Speaker 1: just on defense. Takachi is a conservative in the mold

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Speaker 1: of Shinzo Abe. So early on, even before she met

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Speaker 1: Trump for the first time, she already said that she

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Speaker 1: would move forward by two years the goal of raising

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Speaker 1: defense landing to two percent of GDP to this year.

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Speaker 1: So the package really is meant on one hand to

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Speaker 1: pacify households and hopefully maybe boost the LDP's chances in

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Speaker 1: the next election whenever that happens, and it's also meant

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Speaker 1: to boost defense capabilities.

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Speaker 2: Indeed, markets have been worried that Taki she would run

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Speaker 2: a kind of government with luser purse strings keep pressure

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Speaker 2: on the yen, and there's also been some commentary around

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Speaker 2: the Japanese what are the chances of yen intervention?

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Speaker 1: Yeah, well it's quite interesting. So finance Minister Katayama said

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Speaker 1: two things today. She said authorities will respond appropriately to

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Speaker 1: excessive moves and that intervention is among options. I just

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Speaker 1: want to point out that whenever these officials speak, it's

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Speaker 1: never random. I'm off officials first thing in the morning,

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Speaker 1: get together and they decide what the message is going

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Speaker 1: to be to convey whatever degree of alarm they they

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Speaker 1: might have. And this goes back decades, and so she's

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Speaker 1: sending a message there that's very purposeful, and it's the

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Speaker 1: first time she's referenced the possibility of intervention, so it's

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Speaker 1: definitely coming kind of within somewhere on the horizon. The

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Speaker 1: last time authorities here intervened was July twenty twenty four,

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Speaker 1: and that was when the yen was passed one hundred

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Speaker 1: and sixty en to the dollar, though we may maybe

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Speaker 1: a little bit short of that point at this point.

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Speaker 1: The other thing I just point out is one of

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Speaker 1: those rounds of intervention occurred late on a Friday night,

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Speaker 1: as Japan was headed into a three day weekend. And

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Speaker 1: today is Friday, and we're going into a three day weekend.

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Speaker 1: So make of that what you will.

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Speaker 2: Yeah, Monday holiday and Japan. I also want to ask

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Speaker 2: you a question about why there is money in this

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Speaker 2: budget budget specifically for bears, and I don't mean the

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Speaker 2: kind of financial kind, I mean actual black bears.

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Speaker 1: Yeah, that got our attention as well. Well. Bears have

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Speaker 1: been very much in the news in recent months. So far,

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Speaker 1: in the first six months of the year, there have

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Speaker 1: been more than one hundred attacks people injured or even

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Speaker 1: killed in some cases by bears, which is on pace

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Speaker 1: for a record. This is after years in which we've

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Speaker 1: seen the populations of brown bears and black bears both climbing.

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Speaker 1: Apparently duble black bears or brown bears now have doubled.

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Speaker 1: The twelve thousand black bears have each something like forty

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Speaker 1: two thousand according to government report. And we're also seeing

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Speaker 1: apparently acorn harvests are not doing so well, so bears

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Speaker 1: are encroaching on places where they run into humans and

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Speaker 1: it's not working out so well. So the Defense Ministry

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Speaker 1: is actually said it's going to become part of the

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Speaker 1: effort to fight back against bears, and whether that means

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Speaker 1: culling them or taking other steps, we wait to see.

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Speaker 5: This is Bloomberg Daybreak Europe, your morning brief on the

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