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Speaker 1: This is Bloomberg day Break Weekend, our global look ahead

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Speaker 1: of the top stories of the coming week from our

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Speaker 1: day Break anchors all around the world, and just ahead

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Speaker 1: on the program, here come to those US inflation numbers.

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Speaker 1: I'm John Tucker in New York. I'm killing head get

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Speaker 1: in London, where we're looking at the next major climate

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Speaker 1: summit called twenty seven in Egypt. I'm Brian Curtis in

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Speaker 1: Hong Kong. We look at COVID zero in China, locking

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Speaker 1: down a factory of two hundred thousand workers making iPhones.

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Speaker 1: I'm Any Morris in Washington. We're gaging the turnout in

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Speaker 1: the last minute scramble before the mid turns. That's all

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Speaker 1: straight ahead on Bloomberg Daybreak Weekend on Bloomberg eleven three

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Speaker 1: on New York, Bloomberg one, Washington d C, Bloomberg one

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Speaker 1: oh six one, Boston, Bloomberg nine sixties, San Francisco d

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Speaker 1: A B Digital Radio, London, Sirius XM one nineteen and

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Speaker 1: around the world on Bloomberg Radio dot com and via

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Speaker 1: the Bloomberg Business app. Him nobody, I'm John Scer Let's

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Speaker 1: start today's program with the inflation. Households are watching the

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Speaker 1: Feds certainly watching it, and we're tracking developments for you

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Speaker 1: right here on the Bloomberg Radio Studio with Boomberg Global

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Speaker 1: Economics and Policy Editor Michael McKee. You have inflation in

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Speaker 1: your title that keeps getting longer. Um, So I guess

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Speaker 1: we're talking about c p I that prints coming out.

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Speaker 1: That that's become sort of like the mother of all

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Speaker 1: economic indicators. Lately, it was always the Job's Report, and

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Speaker 1: now it's the CPI again. Of course, Um, that depends

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Speaker 1: on how old your mother is, because back in the

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Speaker 1: Paul Vulgar day, don't talk about my Back in the

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Speaker 1: Paul Vulgar days, the CPI was important as well. And

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Speaker 1: then we had very very low inflation for a very

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Speaker 1: very long time, and then all of a sudden we've

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Speaker 1: got big inflation again. So people care about this number.

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Speaker 1: We used to talk about a word transitory, and now

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Speaker 1: we're talking about a word. I think it's sticky. Has

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Speaker 1: replaced transitory, right about them retired the word transitory. Uh, sticky.

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Speaker 1: Price inflation has been around for a long time, and

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Speaker 1: it's basically a concept that prices change very slowly. The

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Speaker 1: old example that they would use in economic school is

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Speaker 1: restaurants would be reluctant to change their prices because they

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Speaker 1: would have to print all new menus and that would

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Speaker 1: be an expense. But of course, nowadays restaurants give you

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Speaker 1: message on your phone your phone, so I don't know

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Speaker 1: if that's a good example anymore. But there are things

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Speaker 1: that like that that take a while to adjust, and

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Speaker 1: that's the idea of sticky price inflation. And some of

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Speaker 1: those things have have not moved as much as the

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Speaker 1: Fed would like. That's the question for uh next week's

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Speaker 1: uh CBI report is do we see some movement in

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Speaker 1: any of the areas that the Fed has been waiting for.

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Speaker 1: What's the breakdown? Well, prices won't come down, probably, but

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Speaker 1: the whole point of the inflation numbers is the rate

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Speaker 1: of change. The rate of increases is what the Fed

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Speaker 1: look looks at in their arget is a two annual

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Speaker 1: rate of increase. In these things, Um, you don't get

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Speaker 1: prices going down except in crises situations. We saw some

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Speaker 1: prices fall at the beginning of the pandemic, and then

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Speaker 1: they went back up because there were shortages. What we're

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Speaker 1: looking for here is a decline in the month to

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Speaker 1: month increases. When you look at the year over year

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Speaker 1: because of base effects and the fact that inflation was

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Speaker 1: higher last year. Uh, you would see declines. But what

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Speaker 1: the Fed wants to see is that right now we're

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Speaker 1: seeing inflation slowing down, and for that they're looking at

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Speaker 1: things that have had a big impact on it. Um. Obviously,

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Speaker 1: energy over the recent months has has come down. Gasoline

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Speaker 1: prices have come down. That's helped the CPI. But now

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Speaker 1: the basic premises it's for the month of October it

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Speaker 1: went up, so that should add. But things like medical

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Speaker 1: care as the COVID crisis has fallen out of the

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Speaker 1: public consciousness, used car prices on the wholesale level have

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Speaker 1: been falling significantly because suddenly there are cars available and

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Speaker 1: so that should change. Airfares they think may go down,

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Speaker 1: Hotel room prices may go down. So there are areas

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Speaker 1: that had not moved as much as the Fed thought

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Speaker 1: they would. That people are expecting to see some progress

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Speaker 1: on not huge, but some progress. Okay. So the thinking

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Speaker 1: is with the Central Bank, short term pain i e.

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Speaker 1: Higher interest rates will lead to longer term gains. Right,

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Speaker 1: that's I mean, how much pain do I have to endure? Well,

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Speaker 1: that depends on a lot of things that are out

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Speaker 1: of your control, UM, like you know what you're gonna

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Speaker 1: pay at the gas pump and what what you're going

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Speaker 1: to have to pay for, um, things that you buy

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Speaker 1: in the store that maybe suffering from supply chain problems.

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Speaker 1: Supply chains are getting better, so we should see goods

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Speaker 1: prices continue to drop. We're still seeing services prices rise

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Speaker 1: with the higher rates. Are are they having an impact

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Speaker 1: that we can see, Well, it depends on the category.

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Speaker 1: Certainly they're having an impact on real estate and housing.

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Speaker 1: Mortgage rates have gone way up and new home sales

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Speaker 1: and existing home sales have gone way way down. Mortgage

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Speaker 1: Bankers Association Mortgage Activity index is at a level that

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Speaker 1: last reached, so we're seeing a definite impact there. It's

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Speaker 1: going to be interesting to see what happens with other

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Speaker 1: inflation sensitive things like car purchases, UH and UM, whether

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Speaker 1: or not people continue to use credit cards as much

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Speaker 1: as if they have adjustable rate credit cards. We're seeing

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Speaker 1: some slowing in the overall economy in terms of retail sales.

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Speaker 1: People still have a lot of money, but they're not

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Speaker 1: spending as much of it UH as as they so

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Speaker 1: we're seeing some movement on the margins was the way

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Speaker 1: that Powell put it this last week. So what's the

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Speaker 1: expectation from the consumer prices index that we're gonna be

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Speaker 1: going well? On a month over month basis. Economists think

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Speaker 1: we're gonna go up by seven tenths of a percent

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Speaker 1: in the month of October, which would bring the year

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Speaker 1: over year rate to eight percent, a tick down from

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Speaker 1: last month. But that's base effects. Now, the Fed's gonna

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Speaker 1: be looking at the core and that should increase by

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Speaker 1: five tenths which is lower than the prior month. And

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Speaker 1: six point six percent is the year over year estimate

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Speaker 1: for the core rate, which would be the same as

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Speaker 1: the prior month. Any little bit would be seen as progress.

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Speaker 1: The real concern for the markets is if we get

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Speaker 1: a surprise upward. Mike, always a pleasure, Bloomberg's Michael McKee

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Speaker 1: And just to hand on Bloomberg Daybreak weekend, the United

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Speaker 1: Nations COP twenty seven Climate Summit in Egypt. On John,

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Speaker 1: this is Broomber. This is Bloomberg Day Break weekend, our

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Speaker 1: global looking ahead at the top stories for investors in

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Speaker 1: the coming week. I'm John Tucker in New York. Up

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Speaker 1: later in the program, Taiwan and it's tricky business relationship

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Speaker 1: with China. But first world leaders, activists, diplomats and throngs

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Speaker 1: of journalists gathering for the United Nations COP twenty seven

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Speaker 1: Climate Summit in Egypt. And for more, let's say to London,

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Speaker 1: bring in Bloomberg Daybreak, euro Bagger Caroline Hecker John COP

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Speaker 1: twenty seven takes place in Chamel shak amid an energy

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Speaker 1: crisis and global economic upheaval that's testing the commitment of

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Speaker 1: many countries to cutting emissions. The world is still not

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Speaker 1: on track to keep global temperature rises below one and

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Speaker 1: a half degree celsius. This, of course, is seen as

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Speaker 1: a key threshold for averting catastrophic climate change. For more,

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Speaker 1: I'm joined by Bloomberg Green in a senior climate reporter,

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Speaker 1: Actual Ratty and Bloomberg Green reporter Lower Milan in Madrid.

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Speaker 1: Lor I want to start with you, what is the

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Speaker 1: mood like? Well, I would say that based on the

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Speaker 1: conversations that both actually and I have had with people

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Speaker 1: attending over the last few days, Um, everyone's expectations are

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Speaker 1: really high. Um. You can think that COP meetings happen

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Speaker 1: every year and so many people go there, Over forty

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Speaker 1: five thousand registered participants UM for this one, according to

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Speaker 1: the Egyptian presidency, and everyone wants to um do the

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Speaker 1: best they can. They know the eyes of the world

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Speaker 1: will be on them for these two weeks, that climate

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Speaker 1: issues will be on top of the agenda, on the

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Speaker 1: news everywhere for these two weeks, and they just want

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Speaker 1: to make sure that they do the best they can. Yeah.

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Speaker 1: And also because the consequences of climate change are becoming

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Speaker 1: so apparent. Actually, what is the latest research on trying

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Speaker 1: to keep global warming in check? It's a two step process. Essentially,

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Speaker 1: if we go back seven years, the world was on

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Speaker 1: track for catastrophic climate change and now it isn't quite

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Speaker 1: that bad. But even what we have today, which is

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Speaker 1: three degree celsius farming, not one and a half degree

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Speaker 1: celsius farming, that is still in sight. And the world

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Speaker 1: is not cutting emissions fast enough. So we had two reports,

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Speaker 1: one from the United Nations and one from the International

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Speaker 1: Energy Agency saying two things that seem opposite, but they

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Speaker 1: are actually quite aligned, which is we're not making enough progress,

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Speaker 1: but we are making some progress, and that we might

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Speaker 1: be able to speak emissions UH and fossil fuel use

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Speaker 1: within this decade. A lot more just needs to be

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Speaker 1: done though, Okay, and this of course because energy security

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Speaker 1: has has become so much more important and central because

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Speaker 1: of Russia's warren in Ukraine. Has that concern around energy

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Speaker 1: security scuppered some progress on climates, you know, given the

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Speaker 1: energy crisis in Europe, it certainly has. In the short term,

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Speaker 1: you know, countries are turning to whatever fields they can

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Speaker 1: get access to if it means burning more cold, they are,

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Speaker 1: but scoping long term goals. That hasn't happened. If you've

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Speaker 1: seen what has happened in the US with the US

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Speaker 1: passing a climate bill called the Inflation Reduction Act, or

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Speaker 1: Europe which is doubling down on deploying more renewables while

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Speaker 1: legislating it's green deal. Those are clear actions that if

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Speaker 1: the world wants energy security and wants to act on

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Speaker 1: climate change, it needs to double down on green energy.

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Speaker 1: But in the short term, because building out green energy

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Speaker 1: takes a while, people are turning to more fossil fields

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Speaker 1: and that's going to reverse some of the progress made

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Speaker 1: so far. Pakistan and that the awful monsoons that have

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Speaker 1: killed hundreds of people, um, you know, and and submerged

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Speaker 1: the country underwater. I mean This is perhaps one of

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Speaker 1: the clearest examples of the sort of devastation from changing

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Speaker 1: weather and climate. Do you think there's going to be

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Speaker 1: a lot more focused in on this idea of loss

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Speaker 1: and damage on demands from countries that are being affected

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Speaker 1: now by climate change is one group in the G

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Speaker 1: seventy seven, but there are you know, demands for richer

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Speaker 1: countries to pay more, to support more. Definitely, as we

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Speaker 1: think that the so called issue of loss and namit

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Speaker 1: will be the central theme and in this year's cop

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Speaker 1: one of the reasons is because this is a COP

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Speaker 1: that's being held in Africa for the first time in

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Speaker 1: a few years, so obviously the presidency of every cop

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Speaker 1: um holds certain power over which issues it wants to prioritize.

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Speaker 1: But also because obviously of the devastating floods in Pakistan

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Speaker 1: earlier this year, but also another developing nations who which

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Speaker 1: are bearing the costs of climate change even though they

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Speaker 1: contributed very little to eat in comparison to developed nations.

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Speaker 1: So we've just seen, for example, devastating floods in Nigeria

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Speaker 1: as well, and we can expect developing nations to demand

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Speaker 1: reach countries to pay or to come up with a

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Speaker 1: system of funding that can help them recover when these

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Speaker 1: extreme weather events happen. Yeah, and that's for the sort

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Speaker 1: of developing countries. Actually. I think we had a conversation

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Speaker 1: when the UK hosted the last COP in Glasgow. Of course,

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Speaker 1: just the latest report though from the Independent Climate Change

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Speaker 1: Committee here in the UK for two has kind of

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Speaker 1: underlined the issues for Britain itself on how committed we

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Speaker 1: are and there is, you know, still some doubt about

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Speaker 1: how committed Britain is in some ways to decarbonization. What

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Speaker 1: do you think of that, the pressure that the UK

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Speaker 1: is this as a G seven country. Yeah, that's certainly

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Speaker 1: one topic that's come up, especially through the leadership contests

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Speaker 1: that have happened in the Conservative Party. Um, and we

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Speaker 1: have heard from certain wings of the Conservative Party are

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Speaker 1: pushback against climate policies. But where things stand, the UK

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Speaker 1: and the UK has met its climate goals until twenty two.

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Speaker 1: So this year it will be the third UH carbon

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Speaker 1: budget as they are called here in the UK, and

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Speaker 1: the UK will have met it. But you are right

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Speaker 1: that it is going off track, especially this year. Renewable's

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Speaker 1: energy investments have gone down. The UK is in dire

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Speaker 1: But as you as you can see commitment from the

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Speaker 1: UK government. If it ravers, there is a lot of

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Speaker 1: it richis and that wasn't going to come to COP

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Speaker 1: now he is. Okay, Good luck to both of you.

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Speaker 1: I hope you'll join us next week on Bloomberg Radio

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Speaker 1: to tell us more. That is our Bloomberg Green Senior

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Speaker 1: Climate Reporter actual at Ratti and from Madrid Bloomberg Green

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Speaker 1: Reporter at Laura Milan. Thank you so much for your

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Speaker 1: time taking us through what to expect from COP twenty

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Speaker 1: seven and Climate summit in Egypt. I'm Caroline hepget here

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Speaker 1: in London. You can catch us every weekday morning for

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Speaker 1: full coverage of COP twenty seven and so much more

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Speaker 1: on Bloomberg Daybreak. You are beginning at six am in London.

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Speaker 1: That's one am on Wall Street. John Alright, Caroline Thanks

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Speaker 1: alone as the head up Bloomberg day Break Weekend Taiwan's

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Speaker 1: tech companies in China. I'm John Tucker. This is Bloomberg

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Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.

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Speaker 1: Bloomberg eleven three oh to Washington, d C, Bloomberg to Boston,

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Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine

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Speaker 1: to the Country, Sirius XM chto one nineteen to London,

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Speaker 1: d A B Digital Radio, and around the globe the

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Speaker 1: Bloomberg Business Act and Bloomberg Radio dot Com. This is

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Speaker 1: Bloomberg day Break Weekend, John Tucker in New York with

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Speaker 1: your global look aheathly top stories for investors in the

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Speaker 1: coming week. Time one businesses are facing more challenges in

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Speaker 1: China for more, Let's go to Hong Kong and Bloomberg

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Speaker 1: Daybreak Asia host Brian Curtis. John not much warning on this,

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Speaker 1: but China lockdown the world's largest iPhone factory this past week.

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Speaker 1: It's a whole high complex in Chung Show, China, and

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Speaker 1: it's probably the last thing that Apple needed, never mind

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Speaker 1: hone high or Fox Con. It brings in so many

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Speaker 1: issues China's COVID zero policies, Apple's efforts to diversify production,

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Speaker 1: other big companies and their plans as well, and also

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Speaker 1: the changing nature of supply chains, the ever complex relationship

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Speaker 1: that Taiwan companies have operating in mainland China, as well

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Speaker 1: as Taiwan China relations and US China relations. It's a big,

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Speaker 1: big story. Joining us now to discuss this is Samson.

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Speaker 1: Ellis Bloomberg's type a bureau chief. He's embedded with Green

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Speaker 1: at the moment, and he's right here in our Hong

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Speaker 1: Kong studios with us. Sam, thanks very much for coming in.

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Speaker 1: So we've we've got the local authorities. They're sterilizing the

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Speaker 1: it's a it's a complicated moving story as we speak,

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Speaker 1: but it's a it's a kind of contained bubble, right

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Speaker 1: it is, you know, and as you've laid out very well,

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Speaker 1: you know, it's been a bit of a week to

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Speaker 1: forget for for Hunghai or fox Con, and and all

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Speaker 1: of this really stems from China's strict adherence to this

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Speaker 1: COVID zero policy, where you know, as soon as you

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Speaker 1: get a few cases of COVID the local authorities come

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Speaker 1: in and locked down a whole area, and when that

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Speaker 1: area happens to be where Nghai's largest iPhone plant is

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Speaker 1: in jung Gaol, then that obviously causes problems and creates

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Speaker 1: ripples that extends to Cupatina, right, and people want to

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Speaker 1: escape the restrictions, so some of them just escape and

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Speaker 1: actually walk out of there. Yeah, and the Chinese social

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Speaker 1: media has been a wash with videos of hundreds of

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Speaker 1: not thousands of people, young people walking down roads and highways,

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Speaker 1: pushing large suitcases, walking, you know, sometimes tens of miles

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Speaker 1: home to escape the impending lockdown, or at least escaping

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Speaker 1: you know, the increasingly worst conditions there. You know, they're

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Speaker 1: worried about getting COVID themselves. In the days preceding the lockdown,

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Speaker 1: you know, it was it became increasingly difficult to get

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Speaker 1: some people were having to subsist on just bread for

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Speaker 1: for several days. So that's why people are just fleeing

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Speaker 1: these plants right now. And what do we know about

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Speaker 1: the impact on production? Fox con says they are going

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Speaker 1: to keep manufacturing. It's a question of like how much

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Speaker 1: it does lower production by and you know it couldn't

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Speaker 1: really couldn't come at the worst time. You know, this

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Speaker 1: is the ramp up ahead of the holiday season, which

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Speaker 1: is obviously peak sales season four things like your iPhones,

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Speaker 1: and so Fox can't a really trying hard to contain this.

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Speaker 1: They're they're offering to increase people's salaries by up to

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Speaker 1: thirty six percent to persuade them to stay on the

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Speaker 1: production lines and stop them from you know, walking out.

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Speaker 1: All right, let's take a a sort of lofty look

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Speaker 1: at things, and and let me ask you that if

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Speaker 1: you if you take COVID zero parlor sees and the

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Speaker 1: changes that we saw coming out of the Party Congress,

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Speaker 1: the further emphasis on national security and perhaps as somewhat

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Speaker 1: of a small lessoning on pure economic interests, is two

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Speaker 1: the year that China semi loses the West. Yeah, that's

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Speaker 1: an interesting question. I think, you know, the economies are

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Speaker 1: so bound to each other, so interconnected. People are not

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Speaker 1: going to stop buying iPhones all the various other gadgets

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Speaker 1: that are largely manufactured in China. But you know, you

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Speaker 1: are certainly going to see companies reducing their reliance on China.

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Speaker 1: There's definitely been this realization that maybe you know the

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Speaker 1: risk of over concentration in China, and so while you

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Speaker 1: might not see companies directly pull out of China, I

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Speaker 1: think what you definitely are going to see and the

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Speaker 1: numbers do back this up certainly from Taiwanese investment, you know,

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Speaker 1: and the taime Andese brands and manufactured factors are often

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Speaker 1: the operators of the plants in China. For example, is

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Speaker 1: that much less new Capex is going into China. I

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Speaker 1: think a lot of people would be interested in how

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Speaker 1: ordinary people in Taiwan. You live in Taiwan, how ordinary

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Speaker 1: people feel about these tensions with China. Taiwan has been

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Speaker 1: facing the threat of invasion by China for the last

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Speaker 1: seventy plus years, so they're very, very used to living

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Speaker 1: with this threat. I think also largely the feeling is

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Speaker 1: that you know an invasion is not certainly not imminent,

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Speaker 1: and China does also still hold out hope of being

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Speaker 1: able to conduct this peacefully. Sam thanks very much for

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Speaker 1: joining us and for sharing your insights with us. Samson

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Speaker 1: Ellis Bloomberg's Taibe Bureau achieve is with us here in

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Speaker 1: our Hong Kong studios. I'm Brian Curtis in Hong Kong

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Speaker 1: along with Doug Prisner. You can catch us every weekday

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Speaker 1: for Bloomberg Daybreak Asia, beginning at six am in Hong

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Speaker 1: Kong and six pm on Wall Street. John Brian, thanks

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Speaker 1: a lot just ahead on Bloomberg Daybreak weekend. A lot

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Speaker 1: hanging on this coming week's US mid term elections. I'm

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Speaker 1: John Tucker's this is this is Bloomberg Daybreak weekend, our

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Speaker 1: global look ahead at the top stories for investors in

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Speaker 1: the coming week. I'm John Tucker in New York O.

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Speaker 1: Candid It's are scrambling to cover as much ground as

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Speaker 1: possible ahead of Tuesday's mid terms, and some key races

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Speaker 1: are close, some are just hard to predict. And for

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Speaker 1: a look at what to expect. Let's head to our

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Speaker 1: Bloomberg ninety nine one newsroom in Washington and Amy Morris. Amy,

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Speaker 1: all right, thank you, John, big steaks for Democrats and

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Speaker 1: Republicans in these mid terms. Joining me now to talk

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Speaker 1: about it all. White House reporter Jordan Fabian Jordan, thanks

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Speaker 1: for taking the time with us, Thanks for having me on, Amy.

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Speaker 1: What has the White House and perhaps maybe the President

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Speaker 1: cancerned at this point? Well, they're certainly concerned about the

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Speaker 1: possibility that Democrats could lose control of one or both

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Speaker 1: chambers of Congress. That would essentially spell the end for

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Speaker 1: their policy agenda. And so President Biden is going around

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Speaker 1: the country two different states to try and campaign and

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Speaker 1: save some of these jobs and also gubernatorial candidates trying

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Speaker 1: to save some statehouses as well. But if you look

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Speaker 1: at where he's going, he's going to New York, New Mexico, California.

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Speaker 1: These are states that are traditionally blue states. So that

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Speaker 1: shows you the kind of trouble that Democrats are in

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Speaker 1: that he's having to go to these uh places that

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Speaker 1: were thought to be safe in order to try and

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Speaker 1: salvage key lawmakers. And it's not just that they all

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Speaker 1: see their policy fall by the wayside um. They're also

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Speaker 1: they've got to be concerned that they're gonna see sort

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Speaker 1: of a little tit for tat when it comes to

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Speaker 1: investigations and subpoenas that sort of thing. Certainly, they're they're

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Speaker 1: very well aware of the fact that if Republicans gained

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Speaker 1: control of Congress, not only will there be investigations, but

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Speaker 1: there could be also impeachment proceedings brought against Joe Biden perhaps,

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Speaker 1: but also key cabinet secretaries like a Trinity General General

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Speaker 1: Merrick Garland or the Secretary of Homeland Security Alejandro my Orchis.

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Speaker 1: So they're preparing for all those possibilities. But I'm told

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Speaker 1: by senior White House officials and just the course of

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Speaker 1: talking folks this week, that they think that there's a

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Speaker 1: strong possibility these kind of investigations could backfire on Republicans

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Speaker 1: and that it will be viewed as overreach, especially if

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Speaker 1: they go after Hunter Biden and some sensitive subjects like that.

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Speaker 1: So that would be something to watch next year if

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Speaker 1: Republicans do indeed take control in Jordan. The White House

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Speaker 1: is saying now it supports the Fed's rate hikes, it's

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Speaker 1: still painful for people to see their mortgage rates go up,

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Speaker 1: things of that nature, while at the same time, the

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Speaker 1: One House says it is trying to fight back against inflation.

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Speaker 1: Let's hear more now, White House Press Secretary Korean Jean Pierre.

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Speaker 1: The FED is is independent. It's an independent agency, and

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Speaker 1: we believe the President believes that it has uh the

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Speaker 1: it has the best monetary policies to address inflation. Now,

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Speaker 1: Jean Pierre did take it a step further, stable and

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Speaker 1: steady growth with lower inflation. This is the kind of

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Speaker 1: economy that delivers for working families, and that's how we

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Speaker 1: see the work of the of the Fed. So Jordan

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Speaker 1: is being on the side of rising rates going to

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Speaker 1: wind up being a liability for the president even though

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Speaker 1: he's fighting inflation. How does he balance that. It's a

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Speaker 1: really it's a really tough balance to strike. And look,

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Speaker 1: if there is a recession at the end of this, Uh, yeah,

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Speaker 1: there'll be a political fallout for for the President and

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Speaker 1: the Democrats. And you're seeing more and more Democratic lawmakers

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Speaker 1: actually raised concern about the size and scope of these

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Speaker 1: interest rate hikes. At first, there was Elizabeth Warren, but

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Speaker 1: you're seeing other Democratic senators like John hickyl Looper from

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Speaker 1: Colorado come out and say, hold on a second, there

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Speaker 1: could be some real fall out for the economy. But

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Speaker 1: that being said, the White House has been very careful

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Speaker 1: to say that the Fed is independent. We're not going

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Speaker 1: to ask them to slow the pace of right hikes

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Speaker 1: or really do anything for that matter, that we want

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Speaker 1: them to do. We're gonna let them do what they

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Speaker 1: think is best to try and whip inflation and right now,

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Speaker 1: the FETE is signal that they're going to continue with

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Speaker 1: this course of rate hikes, possibly you know, next month

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Speaker 1: and in the future. And that's really sucked all the

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Speaker 1: air out of the room. I mean, it wasn't really

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Speaker 1: that long ago when the big concern was abortion access

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Speaker 1: and and it seemed to really give Democrats something of

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Speaker 1: a boost, and it just evaporated, that's right. And you know,

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Speaker 1: you look at it and you think, maybe if this

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Speaker 1: the court really came out closer to the election, that

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Speaker 1: that boom for Democrats would have been better time for them.

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Speaker 1: But yeah, I guess enthusiasm or interest in that issue, uh,

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Speaker 1: seemed to wane as concerns about the economy really have

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Speaker 1: continued and grown in voters. So if you look at

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Speaker 1: polls from around the summer, there are actually a couple

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Speaker 1: of polls that that said abortion access and uh, you know,

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00:26:07,000 --> 00:26:09,680
Speaker 1: threats to democracy were right up there with the economy,

432
00:26:09,680 --> 00:26:12,360
Speaker 1: which you typically don't seat that's usually the number one

433
00:26:12,400 --> 00:26:15,439
Speaker 1: issue for voters, but now those of ebbed and the

434
00:26:15,480 --> 00:26:18,480
Speaker 1: economy is front of mind, and now the president is

435
00:26:18,520 --> 00:26:21,760
Speaker 1: sort of pivoting on that as well, warning of economic

436
00:26:21,840 --> 00:26:26,200
Speaker 1: chaos if Republicans do sweep the midterms. New Jersey Governor

437
00:26:26,200 --> 00:26:28,720
Speaker 1: Phil Murphy told us on Balance of Power this past

438
00:26:28,760 --> 00:26:31,800
Speaker 1: week that a weird economy is actually making things harder

439
00:26:31,840 --> 00:26:35,200
Speaker 1: for Democrats. It's a weird economy where we have our

440
00:26:35,200 --> 00:26:40,080
Speaker 1: lowest unemployment rate ever below the national average. Our revenues

441
00:26:40,119 --> 00:26:43,960
Speaker 1: as at the state level continue to be solid, We've

442
00:26:43,960 --> 00:26:46,760
Speaker 1: been upgraded by credit rating agencies would pay debt out.

443
00:26:46,920 --> 00:26:50,280
Speaker 1: And yet at the same time, there's enormous pain at

444
00:26:50,320 --> 00:26:53,159
Speaker 1: that kitchen table, largely due to affordability. So how do

445
00:26:53,200 --> 00:26:57,359
Speaker 1: they balance that? You know, they haven't really figured it

446
00:26:57,359 --> 00:26:59,879
Speaker 1: out yet. Um. And you know, part of the problem

447
00:27:00,160 --> 00:27:02,560
Speaker 1: is that if you look at Biden's record over the

448
00:27:02,600 --> 00:27:04,600
Speaker 1: first couple of years, he's actually gotten a lot done.

449
00:27:04,640 --> 00:27:08,120
Speaker 1: He's gotten the Infrastructure Bill, He's got that Inflation Induction Act,

450
00:27:08,119 --> 00:27:10,600
Speaker 1: which is really you know, a climate and prescription and

451
00:27:10,680 --> 00:27:14,160
Speaker 1: drug health bill. Uh. He's got this is an agenda

452
00:27:14,200 --> 00:27:16,000
Speaker 1: if you look at it would be great for any president.

453
00:27:16,040 --> 00:27:20,040
Speaker 1: But what they've struggled with is getting people to understand

454
00:27:20,119 --> 00:27:23,120
Speaker 1: or explaining to people how that's going to help them

455
00:27:23,160 --> 00:27:27,800
Speaker 1: afford groceries and clothes and gas, and and they're they've

456
00:27:27,840 --> 00:27:30,280
Speaker 1: tried to strike this balance of, you know, touting their

457
00:27:30,280 --> 00:27:33,760
Speaker 1: accomplishments but also acknowledging the economic pain that people are feeling.

458
00:27:33,880 --> 00:27:36,720
Speaker 1: And they really haven't figured out a message that's stuck.

459
00:27:36,920 --> 00:27:40,120
Speaker 1: And that's why you're seeing a lot of these candidates

460
00:27:40,119 --> 00:27:44,639
Speaker 1: struggle because frankly, voters are blaming this on Joe Biden,

461
00:27:44,760 --> 00:27:47,600
Speaker 1: and his approval ratings have really sunk in the past

462
00:27:47,640 --> 00:27:50,119
Speaker 1: few weeks because he's the guy in the White House exactly.

463
00:27:50,400 --> 00:27:53,199
Speaker 1: We are talking with Bloomberg White House reporter Jordan Fabian

464
00:27:53,240 --> 00:27:55,800
Speaker 1: about the upcoming midterms and what folks might be able

465
00:27:55,800 --> 00:27:59,359
Speaker 1: to expect. Now you had mentioned Jordan's about how democracy

466
00:27:59,480 --> 00:28:01,760
Speaker 1: was an issue you for a hot minute. The President

467
00:28:01,840 --> 00:28:04,520
Speaker 1: still trying to keep it in the spotlight, making the

468
00:28:04,600 --> 00:28:08,280
Speaker 1: January six the insurrection an issue. He talked about it

469
00:28:08,280 --> 00:28:10,760
Speaker 1: at this past week at Union Station, drawing a parallel

470
00:28:10,800 --> 00:28:13,960
Speaker 1: between the attack on Paul Pelosi in his home, which

471
00:28:14,000 --> 00:28:17,560
Speaker 1: also happened uh in this past week. He's the husband

472
00:28:17,560 --> 00:28:20,760
Speaker 1: of House Speaker Nancy Pelosi, also of the violence of

473
00:28:20,800 --> 00:28:23,800
Speaker 1: the January six the insurrection, talked about that as well,

474
00:28:24,080 --> 00:28:28,879
Speaker 1: condemning the rise in violence. He was actually kind of

475
00:28:28,960 --> 00:28:31,920
Speaker 1: hinting that perhaps this could be part of Donald Trump's

476
00:28:31,960 --> 00:28:35,000
Speaker 1: big lie of a stolen election, and that's what's whipping

477
00:28:35,040 --> 00:28:38,760
Speaker 1: folks are. Can't pretend it's just going to solve itself.

478
00:28:40,600 --> 00:28:43,040
Speaker 1: There's an alarming rise in the number of our people

479
00:28:44,200 --> 00:28:49,040
Speaker 1: in this country condoning political violence. Now, is there any

480
00:28:49,040 --> 00:28:52,840
Speaker 1: indication Jordan's that, um, this is mobilizing Democrats to come

481
00:28:52,840 --> 00:28:55,200
Speaker 1: out and vote, or maybe changing hearts and minds of

482
00:28:55,200 --> 00:28:58,520
Speaker 1: folks on the other side, change your hearts and minds

483
00:28:58,520 --> 00:29:00,840
Speaker 1: on the other side, I highly doubt. Um. You know,

484
00:29:00,960 --> 00:29:04,760
Speaker 1: this place seems to be uh something to get the

485
00:29:04,800 --> 00:29:07,600
Speaker 1: Democratic base going, because of course they're that's front of

486
00:29:07,600 --> 00:29:10,520
Speaker 1: mind for them. And look, you know, these are really

487
00:29:10,600 --> 00:29:14,240
Speaker 1: important issues, you know, democracy. You know, the election denial

488
00:29:15,040 --> 00:29:18,040
Speaker 1: follow from January six. You know, this is something that

489
00:29:18,120 --> 00:29:20,920
Speaker 1: you know, President you know, probably should be talking about

490
00:29:21,120 --> 00:29:23,080
Speaker 1: in the run of the election, given the kind of

491
00:29:23,120 --> 00:29:26,240
Speaker 1: candidates that are running on the other side. But um,

492
00:29:26,280 --> 00:29:29,680
Speaker 1: you know, as a matter of you know, political expediency

493
00:29:29,920 --> 00:29:33,160
Speaker 1: and tactical decision making ahead of the mid terms, I'm

494
00:29:33,200 --> 00:29:37,880
Speaker 1: not sure this is moving voters in Democrats favoritehead of

495
00:29:37,920 --> 00:29:40,120
Speaker 1: the midterms. You know, the cost of living, Like we're

496
00:29:40,120 --> 00:29:42,440
Speaker 1: just talking about the economy. Those are things that are

497
00:29:42,480 --> 00:29:46,240
Speaker 1: front of mind, and that's really imperative for Biden to

498
00:29:46,320 --> 00:29:48,720
Speaker 1: address in the In the closing days here, I want

499
00:29:48,760 --> 00:29:50,600
Speaker 1: to talk to you about some of the big races

500
00:29:50,640 --> 00:29:53,480
Speaker 1: that have been top of mind over the past well

501
00:29:53,560 --> 00:29:56,440
Speaker 1: the past several weeks. Really, you've got Georgia's Senate race,

502
00:29:56,920 --> 00:30:00,520
Speaker 1: You've got Pennsylvania, you've got Nevada. What are some of

503
00:30:00,520 --> 00:30:02,080
Speaker 1: the things that you're gonna be watching for in the

504
00:30:02,080 --> 00:30:06,680
Speaker 1: next few days. Well, especially in Nevada, you know, can

505
00:30:07,120 --> 00:30:11,040
Speaker 1: you know Cortez Masto, the Democratic senator there, really harness

506
00:30:11,120 --> 00:30:14,400
Speaker 1: the Hispanic vote. I mean, that's been the key turnout

507
00:30:14,480 --> 00:30:16,560
Speaker 1: engine for Democrats. And you know that used to be

508
00:30:16,600 --> 00:30:19,680
Speaker 1: a purple state and they've now you know, captured basically

509
00:30:19,720 --> 00:30:24,280
Speaker 1: all the statewide offices there. But uh, since the pandemic,

510
00:30:24,440 --> 00:30:27,480
Speaker 1: those a lot of those people work in the casinos.

511
00:30:27,760 --> 00:30:30,440
Speaker 1: They had a really tough time during the pandemic. The

512
00:30:30,480 --> 00:30:33,680
Speaker 1: inflation is really hitting Nevada hard. So, uh, you know,

513
00:30:33,720 --> 00:30:36,240
Speaker 1: all all these economic issues we're talking about, that that

514
00:30:36,320 --> 00:30:39,320
Speaker 1: really you know, if you look at Nevada, that would

515
00:30:39,320 --> 00:30:42,000
Speaker 1: say that's kind of the ground zero for that. But

516
00:30:42,120 --> 00:30:45,200
Speaker 1: in in Georgia, you know, it's you have these other

517
00:30:45,280 --> 00:30:47,920
Speaker 1: candidates like herschel Walker who have really been you know,

518
00:30:48,000 --> 00:30:53,200
Speaker 1: poor candidates, and but traction has traction. You have traction

519
00:30:53,320 --> 00:30:55,760
Speaker 1: because of the environment and the environment is so bad

520
00:30:55,760 --> 00:30:57,960
Speaker 1: for Democrats. And when you say the environment, you mean

521
00:30:58,080 --> 00:31:01,880
Speaker 1: the tone, the political and vironment. You know, people are

522
00:31:01,960 --> 00:31:05,280
Speaker 1: angry and upset with it with the economy and they

523
00:31:05,320 --> 00:31:07,360
Speaker 1: want to take it out on Democrats. So is that

524
00:31:07,440 --> 00:31:11,160
Speaker 1: going to be enough to propel kenn who has flaws

525
00:31:11,160 --> 00:31:13,400
Speaker 1: like hershel Walker to victory? And so that's what I'll

526
00:31:13,440 --> 00:31:16,480
Speaker 1: be looking for in you know, Georgia and also in

527
00:31:16,520 --> 00:31:20,080
Speaker 1: Arizona and in Pennsylvania. Things have really tightened up between

528
00:31:20,160 --> 00:31:23,720
Speaker 1: Memo Oz and Fetterman. That's right. And so you look

529
00:31:23,760 --> 00:31:27,120
Speaker 1: at uh, you look at what Joe Biden is going, right,

530
00:31:27,200 --> 00:31:29,080
Speaker 1: He's avoided a lot of those states we were just

531
00:31:29,120 --> 00:31:32,320
Speaker 1: talking about with the key races, but his advisors believe

532
00:31:32,400 --> 00:31:36,920
Speaker 1: that he resonates in Pennsylvania's well, Joe Biden have took

533
00:31:36,920 --> 00:31:41,360
Speaker 1: cottails here. Can he help really propel Fetterman, who's really

534
00:31:41,400 --> 00:31:45,080
Speaker 1: struggled since having that stroke and fallen behind or I

535
00:31:45,120 --> 00:31:49,800
Speaker 1: guess how his lead cut uh over odds? Like can

536
00:31:49,800 --> 00:31:53,280
Speaker 1: he could Joe Biden propel at least one vulnerable Democrat

537
00:31:53,320 --> 00:31:55,360
Speaker 1: to victory this year? All right, we're gonna watch it

538
00:31:55,400 --> 00:31:58,040
Speaker 1: with you. Jordan Fabian covering the White House for Bloomberg

539
00:31:58,080 --> 00:32:00,320
Speaker 1: News as always, Jordan, thank you so much. Thank you, Amy.

540
00:32:00,560 --> 00:32:02,720
Speaker 1: That's what's going on in the nation's capital. For more

541
00:32:02,720 --> 00:32:05,240
Speaker 1: of our political news coverage, you can tune into Balance

542
00:32:05,240 --> 00:32:08,200
Speaker 1: of Power with David weston weekdays at noon Wall Street Time,

543
00:32:08,240 --> 00:32:11,240
Speaker 1: and Sound On with Joe Matthew weekdays at five pm

544
00:32:11,240 --> 00:32:14,160
Speaker 1: Wall Street Time here on Bloomberg Radio, and we will

545
00:32:14,200 --> 00:32:17,840
Speaker 1: bring you live election coverage on Bloomberg Radio and television

546
00:32:18,160 --> 00:32:21,320
Speaker 1: Tuesday night that starts at eight pm Wall Street Time.

547
00:32:21,400 --> 00:32:25,040
Speaker 1: I'm Amy Morris and this is Bloomberg John, Amy Morris

548
00:32:25,080 --> 00:32:29,160
Speaker 1: reporting from our Bloomberg room in Washington. Thanks Amy, and

549
00:32:29,240 --> 00:32:31,680
Speaker 1: that does it for this edition of Bloomberg Daybreak Weekend.

550
00:32:31,840 --> 00:32:34,640
Speaker 1: Join us again Monday morning at five am Wall Street

551
00:32:34,680 --> 00:32:38,360
Speaker 1: Time for the latest on markets overseas and the news

552
00:32:38,440 --> 00:32:41,200
Speaker 1: you need to start your day. I'm John Tucker and

553
00:32:41,440 --> 00:32:42,120
Speaker 1: this is b