Speaker 1: This is Bloomberg day Break Weekend, our global look ahead
Speaker 1: of the top stories of the coming week from our
Speaker 1: day Break anchors all around the world, and just ahead
Speaker 1: on the program, here come to those US inflation numbers.
Speaker 1: I'm John Tucker in New York. I'm killing head get
Speaker 1: in London, where we're looking at the next major climate
Speaker 1: summit called twenty seven in Egypt. I'm Brian Curtis in
Speaker 1: Hong Kong. We look at COVID zero in China, locking
Speaker 1: down a factory of two hundred thousand workers making iPhones.
Speaker 1: I'm Any Morris in Washington. We're gaging the turnout in
Speaker 1: the last minute scramble before the mid turns. That's all
Speaker 1: straight ahead on Bloomberg Daybreak Weekend on Bloomberg eleven three
Speaker 1: on New York, Bloomberg one, Washington d C, Bloomberg one
Speaker 1: oh six one, Boston, Bloomberg nine sixties, San Francisco d
Speaker 1: A B Digital Radio, London, Sirius XM one nineteen and
Speaker 1: around the world on Bloomberg Radio dot com and via
Speaker 1: the Bloomberg Business app. Him nobody, I'm John Scer Let's
Speaker 1: start today's program with the inflation. Households are watching the
Speaker 1: Feds certainly watching it, and we're tracking developments for you
Speaker 1: right here on the Bloomberg Radio Studio with Boomberg Global
Speaker 1: Economics and Policy Editor Michael McKee. You have inflation in
Speaker 1: your title that keeps getting longer. Um, So I guess
Speaker 1: we're talking about c p I that prints coming out.
Speaker 1: That that's become sort of like the mother of all
Speaker 1: economic indicators. Lately, it was always the Job's Report, and
Speaker 1: now it's the CPI again. Of course, Um, that depends
Speaker 1: on how old your mother is, because back in the
Speaker 1: Paul Vulgar day, don't talk about my Back in the
Speaker 1: Paul Vulgar days, the CPI was important as well. And
Speaker 1: then we had very very low inflation for a very
Speaker 1: very long time, and then all of a sudden we've
Speaker 1: got big inflation again. So people care about this number.
Speaker 1: We used to talk about a word transitory, and now
Speaker 1: we're talking about a word. I think it's sticky. Has
Speaker 1: replaced transitory, right about them retired the word transitory. Uh, sticky.
Speaker 1: Price inflation has been around for a long time, and
Speaker 1: it's basically a concept that prices change very slowly. The
Speaker 1: old example that they would use in economic school is
Speaker 1: restaurants would be reluctant to change their prices because they
Speaker 1: would have to print all new menus and that would
Speaker 1: be an expense. But of course, nowadays restaurants give you
Speaker 1: message on your phone your phone, so I don't know
Speaker 1: if that's a good example anymore. But there are things
Speaker 1: that like that that take a while to adjust, and
Speaker 1: that's the idea of sticky price inflation. And some of
Speaker 1: those things have have not moved as much as the
Speaker 1: Fed would like. That's the question for uh next week's
Speaker 1: uh CBI report is do we see some movement in
Speaker 1: any of the areas that the Fed has been waiting for.
Speaker 1: What's the breakdown? Well, prices won't come down, probably, but
Speaker 1: the whole point of the inflation numbers is the rate
Speaker 1: of change. The rate of increases is what the Fed
Speaker 1: look looks at in their arget is a two annual
Speaker 1: rate of increase. In these things, Um, you don't get
Speaker 1: prices going down except in crises situations. We saw some
Speaker 1: prices fall at the beginning of the pandemic, and then
Speaker 1: they went back up because there were shortages. What we're
Speaker 1: looking for here is a decline in the month to
Speaker 1: month increases. When you look at the year over year
Speaker 1: because of base effects and the fact that inflation was
Speaker 1: higher last year. Uh, you would see declines. But what
Speaker 1: the Fed wants to see is that right now we're
Speaker 1: seeing inflation slowing down, and for that they're looking at
Speaker 1: things that have had a big impact on it. Um. Obviously,
Speaker 1: energy over the recent months has has come down. Gasoline
Speaker 1: prices have come down. That's helped the CPI. But now
Speaker 1: the basic premises it's for the month of October it
Speaker 1: went up, so that should add. But things like medical
Speaker 1: care as the COVID crisis has fallen out of the
Speaker 1: public consciousness, used car prices on the wholesale level have
Speaker 1: been falling significantly because suddenly there are cars available and
Speaker 1: so that should change. Airfares they think may go down,
Speaker 1: Hotel room prices may go down. So there are areas
Speaker 1: that had not moved as much as the Fed thought
Speaker 1: they would. That people are expecting to see some progress
Speaker 1: on not huge, but some progress. Okay. So the thinking
Speaker 1: is with the Central Bank, short term pain i e.
Speaker 1: Higher interest rates will lead to longer term gains. Right,
Speaker 1: that's I mean, how much pain do I have to endure? Well,
Speaker 1: that depends on a lot of things that are out
Speaker 1: of your control, UM, like you know what you're gonna
Speaker 1: pay at the gas pump and what what you're going
Speaker 1: to have to pay for, um, things that you buy
Speaker 1: in the store that maybe suffering from supply chain problems.
Speaker 1: Supply chains are getting better, so we should see goods
Speaker 1: prices continue to drop. We're still seeing services prices rise
Speaker 1: with the higher rates. Are are they having an impact
Speaker 1: that we can see, Well, it depends on the category.
Speaker 1: Certainly they're having an impact on real estate and housing.
Speaker 1: Mortgage rates have gone way up and new home sales
Speaker 1: and existing home sales have gone way way down. Mortgage
Speaker 1: Bankers Association Mortgage Activity index is at a level that
Speaker 1: last reached, so we're seeing a definite impact there. It's
Speaker 1: going to be interesting to see what happens with other
Speaker 1: inflation sensitive things like car purchases, UH and UM, whether
Speaker 1: or not people continue to use credit cards as much
Speaker 1: as if they have adjustable rate credit cards. We're seeing
Speaker 1: some slowing in the overall economy in terms of retail sales.
Speaker 1: People still have a lot of money, but they're not
Speaker 1: spending as much of it UH as as they so
Speaker 1: we're seeing some movement on the margins was the way
Speaker 1: that Powell put it this last week. So what's the
Speaker 1: expectation from the consumer prices index that we're gonna be
Speaker 1: going well? On a month over month basis. Economists think
Speaker 1: we're gonna go up by seven tenths of a percent
Speaker 1: in the month of October, which would bring the year
Speaker 1: over year rate to eight percent, a tick down from
Speaker 1: last month. But that's base effects. Now, the Fed's gonna
Speaker 1: be looking at the core and that should increase by
Speaker 1: five tenths which is lower than the prior month. And
Speaker 1: six point six percent is the year over year estimate
Speaker 1: for the core rate, which would be the same as
Speaker 1: the prior month. Any little bit would be seen as progress.
Speaker 1: The real concern for the markets is if we get
Speaker 1: a surprise upward. Mike, always a pleasure, Bloomberg's Michael McKee
Speaker 1: And just to hand on Bloomberg Daybreak weekend, the United
Speaker 1: Nations COP twenty seven Climate Summit in Egypt. On John,
Speaker 1: this is Broomber. This is Bloomberg Day Break weekend, our
Speaker 1: global looking ahead at the top stories for investors in
Speaker 1: the coming week. I'm John Tucker in New York. Up
Speaker 1: later in the program, Taiwan and it's tricky business relationship
Speaker 1: with China. But first world leaders, activists, diplomats and throngs
Speaker 1: of journalists gathering for the United Nations COP twenty seven
Speaker 1: Climate Summit in Egypt. And for more, let's say to London,
Speaker 1: bring in Bloomberg Daybreak, euro Bagger Caroline Hecker John COP
Speaker 1: twenty seven takes place in Chamel shak amid an energy
Speaker 1: crisis and global economic upheaval that's testing the commitment of
Speaker 1: many countries to cutting emissions. The world is still not
Speaker 1: on track to keep global temperature rises below one and
Speaker 1: a half degree celsius. This, of course, is seen as
Speaker 1: a key threshold for averting catastrophic climate change. For more,
Speaker 1: I'm joined by Bloomberg Green in a senior climate reporter,
Speaker 1: Actual Ratty and Bloomberg Green reporter Lower Milan in Madrid.
Speaker 1: Lor I want to start with you, what is the
Speaker 1: mood like? Well, I would say that based on the
Speaker 1: conversations that both actually and I have had with people
Speaker 1: attending over the last few days, Um, everyone's expectations are
Speaker 1: really high. Um. You can think that COP meetings happen
Speaker 1: every year and so many people go there, Over forty
Speaker 1: five thousand registered participants UM for this one, according to
Speaker 1: the Egyptian presidency, and everyone wants to um do the
Speaker 1: best they can. They know the eyes of the world
Speaker 1: will be on them for these two weeks, that climate
Speaker 1: issues will be on top of the agenda, on the
Speaker 1: news everywhere for these two weeks, and they just want
Speaker 1: to make sure that they do the best they can. Yeah.
Speaker 1: And also because the consequences of climate change are becoming
Speaker 1: so apparent. Actually, what is the latest research on trying
Speaker 1: to keep global warming in check? It's a two step process. Essentially,
Speaker 1: if we go back seven years, the world was on
Speaker 1: track for catastrophic climate change and now it isn't quite
Speaker 1: that bad. But even what we have today, which is
Speaker 1: three degree celsius farming, not one and a half degree
Speaker 1: celsius farming, that is still in sight. And the world
Speaker 1: is not cutting emissions fast enough. So we had two reports,
Speaker 1: one from the United Nations and one from the International
Speaker 1: Energy Agency saying two things that seem opposite, but they
Speaker 1: are actually quite aligned, which is we're not making enough progress,
Speaker 1: but we are making some progress, and that we might
Speaker 1: be able to speak emissions UH and fossil fuel use
Speaker 1: within this decade. A lot more just needs to be
Speaker 1: done though, Okay, and this of course because energy security
Speaker 1: has has become so much more important and central because
Speaker 1: of Russia's warren in Ukraine. Has that concern around energy
Speaker 1: security scuppered some progress on climates, you know, given the
Speaker 1: energy crisis in Europe, it certainly has. In the short term,
Speaker 1: you know, countries are turning to whatever fields they can
Speaker 1: get access to if it means burning more cold, they are,
Speaker 1: but scoping long term goals. That hasn't happened. If you've
Speaker 1: seen what has happened in the US with the US
Speaker 1: passing a climate bill called the Inflation Reduction Act, or
Speaker 1: Europe which is doubling down on deploying more renewables while
Speaker 1: legislating it's green deal. Those are clear actions that if
Speaker 1: the world wants energy security and wants to act on
Speaker 1: climate change, it needs to double down on green energy.
Speaker 1: But in the short term, because building out green energy
Speaker 1: takes a while, people are turning to more fossil fields
Speaker 1: and that's going to reverse some of the progress made
Speaker 1: so far. Pakistan and that the awful monsoons that have
Speaker 1: killed hundreds of people, um, you know, and and submerged
Speaker 1: the country underwater. I mean This is perhaps one of
Speaker 1: the clearest examples of the sort of devastation from changing
Speaker 1: weather and climate. Do you think there's going to be
Speaker 1: a lot more focused in on this idea of loss
Speaker 1: and damage on demands from countries that are being affected
Speaker 1: now by climate change is one group in the G
Speaker 1: seventy seven, but there are you know, demands for richer
Speaker 1: countries to pay more, to support more. Definitely, as we
Speaker 1: think that the so called issue of loss and namit
Speaker 1: will be the central theme and in this year's cop
Speaker 1: one of the reasons is because this is a COP
Speaker 1: that's being held in Africa for the first time in
Speaker 1: a few years, so obviously the presidency of every cop
Speaker 1: um holds certain power over which issues it wants to prioritize.
Speaker 1: But also because obviously of the devastating floods in Pakistan
Speaker 1: earlier this year, but also another developing nations who which
Speaker 1: are bearing the costs of climate change even though they
Speaker 1: contributed very little to eat in comparison to developed nations.
Speaker 1: So we've just seen, for example, devastating floods in Nigeria
Speaker 1: as well, and we can expect developing nations to demand
Speaker 1: reach countries to pay or to come up with a
Speaker 1: system of funding that can help them recover when these
Speaker 1: extreme weather events happen. Yeah, and that's for the sort
Speaker 1: of developing countries. Actually. I think we had a conversation
Speaker 1: when the UK hosted the last COP in Glasgow. Of course,
Speaker 1: just the latest report though from the Independent Climate Change
Speaker 1: Committee here in the UK for two has kind of
Speaker 1: underlined the issues for Britain itself on how committed we
Speaker 1: are and there is, you know, still some doubt about
Speaker 1: how committed Britain is in some ways to decarbonization. What
Speaker 1: do you think of that, the pressure that the UK
Speaker 1: is this as a G seven country. Yeah, that's certainly
Speaker 1: one topic that's come up, especially through the leadership contests
Speaker 1: that have happened in the Conservative Party. Um, and we
Speaker 1: have heard from certain wings of the Conservative Party are
Speaker 1: pushback against climate policies. But where things stand, the UK
Speaker 1: still leads among the G seven countries on how much
Speaker 1: emissions it has cut since nine more than forty UM
Speaker 1: and the UK has met its climate goals until twenty two.
Speaker 1: So this year it will be the third UH carbon
Speaker 1: budget as they are called here in the UK, and
Speaker 1: the UK will have met it. But you are right
Speaker 1: that it is going off track, especially this year. Renewable's
Speaker 1: energy investments have gone down. The UK is in dire
Speaker 1: straits with its financial situation, having to give a lot
Speaker 1: of money to energy companies to try and keep prices
Speaker 1: of energy low for consumers, and so questions are being asked.
Speaker 1: But as you as you can see commitment from the
Speaker 1: UK government. If it ravers, there is a lot of
Speaker 1: backlash and that causes governments to change their mind. So
Speaker 1: it richis and that wasn't going to come to COP
Speaker 1: now he is. Okay, Good luck to both of you.
Speaker 1: I hope you'll join us next week on Bloomberg Radio
Speaker 1: to tell us more. That is our Bloomberg Green Senior
Speaker 1: Climate Reporter actual at Ratti and from Madrid Bloomberg Green
Speaker 1: Reporter at Laura Milan. Thank you so much for your
Speaker 1: time taking us through what to expect from COP twenty
Speaker 1: seven and Climate summit in Egypt. I'm Caroline hepget here
Speaker 1: in London. You can catch us every weekday morning for
Speaker 1: full coverage of COP twenty seven and so much more
Speaker 1: on Bloomberg Daybreak. You are beginning at six am in London.
Speaker 1: That's one am on Wall Street. John Alright, Caroline Thanks
Speaker 1: alone as the head up Bloomberg day Break Weekend Taiwan's
Speaker 1: tech companies in China. I'm John Tucker. This is Bloomberg
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg eleven three oh to Washington, d C, Bloomberg to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine
Speaker 1: to the Country, Sirius XM chto one nineteen to London,
Speaker 1: d A B Digital Radio, and around the globe the
Speaker 1: Bloomberg Business Act and Bloomberg Radio dot Com. This is
Speaker 1: Bloomberg day Break Weekend, John Tucker in New York with
Speaker 1: your global look aheathly top stories for investors in the
Speaker 1: coming week. Time one businesses are facing more challenges in
Speaker 1: China for more, Let's go to Hong Kong and Bloomberg
Speaker 1: Daybreak Asia host Brian Curtis. John not much warning on this,
Speaker 1: but China lockdown the world's largest iPhone factory this past week.
Speaker 1: It's a whole high complex in Chung Show, China, and
Speaker 1: it's probably the last thing that Apple needed, never mind
Speaker 1: hone high or Fox Con. It brings in so many
Speaker 1: issues China's COVID zero policies, Apple's efforts to diversify production,
Speaker 1: other big companies and their plans as well, and also
Speaker 1: the changing nature of supply chains, the ever complex relationship
Speaker 1: that Taiwan companies have operating in mainland China, as well
Speaker 1: as Taiwan China relations and US China relations. It's a big,
Speaker 1: big story. Joining us now to discuss this is Samson.
Speaker 1: Ellis Bloomberg's type a bureau chief. He's embedded with Green
Speaker 1: at the moment, and he's right here in our Hong
Speaker 1: Kong studios with us. Sam, thanks very much for coming in.
Speaker 1: So we've we've got the local authorities. They're sterilizing the
Speaker 1: Fox Con campus and there have been mass walkouts. So
Speaker 1: it's a it's a complicated moving story as we speak,
Speaker 1: but it's a it's a kind of contained bubble, right
Speaker 1: it is, you know, and as you've laid out very well,
Speaker 1: you know, it's been a bit of a week to
Speaker 1: forget for for Hunghai or fox Con, and and all
Speaker 1: of this really stems from China's strict adherence to this
Speaker 1: COVID zero policy, where you know, as soon as you
Speaker 1: get a few cases of COVID the local authorities come
Speaker 1: in and locked down a whole area, and when that
Speaker 1: area happens to be where Nghai's largest iPhone plant is
Speaker 1: in jung Gaol, then that obviously causes problems and creates
Speaker 1: ripples that extends to Cupatina, right, and people want to
Speaker 1: escape the restrictions, so some of them just escape and
Speaker 1: actually walk out of there. Yeah, and the Chinese social
Speaker 1: media has been a wash with videos of hundreds of
Speaker 1: not thousands of people, young people walking down roads and highways,
Speaker 1: pushing large suitcases, walking, you know, sometimes tens of miles
Speaker 1: home to escape the impending lockdown, or at least escaping
Speaker 1: you know, the increasingly worst conditions there. You know, they're
Speaker 1: worried about getting COVID themselves. In the days preceding the lockdown,
Speaker 1: you know, it was it became increasingly difficult to get
Speaker 1: food and basic supplies into the manufacturing complex, and so
Speaker 1: some people were having to subsist on just bread for
Speaker 1: for several days. So that's why people are just fleeing
Speaker 1: these plants right now. And what do we know about
Speaker 1: the impact on production? Fox con says they are going
Speaker 1: to keep manufacturing. It's a question of like how much
Speaker 1: it does lower production by and you know it couldn't
Speaker 1: really couldn't come at the worst time. You know, this
Speaker 1: is the ramp up ahead of the holiday season, which
Speaker 1: is obviously peak sales season four things like your iPhones,
Speaker 1: and so Fox can't a really trying hard to contain this.
Speaker 1: They're they're offering to increase people's salaries by up to
Speaker 1: thirty six percent to persuade them to stay on the
Speaker 1: production lines and stop them from you know, walking out.
Speaker 1: All right, let's take a a sort of lofty look
Speaker 1: at things, and and let me ask you that if
Speaker 1: you if you take COVID zero parlor sees and the
Speaker 1: changes that we saw coming out of the Party Congress,
Speaker 1: the further emphasis on national security and perhaps as somewhat
Speaker 1: of a small lessoning on pure economic interests, is two
Speaker 1: the year that China semi loses the West. Yeah, that's
Speaker 1: an interesting question. I think, you know, the economies are
Speaker 1: so bound to each other, so interconnected. People are not
Speaker 1: going to stop buying iPhones all the various other gadgets
Speaker 1: that are largely manufactured in China. But you know, you
Speaker 1: are certainly going to see companies reducing their reliance on China.
Speaker 1: There's definitely been this realization that maybe you know the
Speaker 1: risk of over concentration in China, and so while you
Speaker 1: might not see companies directly pull out of China, I
Speaker 1: think what you definitely are going to see and the
Speaker 1: numbers do back this up certainly from Taiwanese investment, you know,
Speaker 1: and the taime Andese brands and manufactured factors are often
Speaker 1: the operators of the plants in China. For example, is
Speaker 1: that much less new Capex is going into China. I
Speaker 1: think a lot of people would be interested in how
Speaker 1: ordinary people in Taiwan. You live in Taiwan, how ordinary
Speaker 1: people feel about these tensions with China. Taiwan has been
Speaker 1: facing the threat of invasion by China for the last
Speaker 1: seventy plus years, so they're very, very used to living
Speaker 1: with this threat. I think also largely the feeling is
Speaker 1: that you know an invasion is not certainly not imminent,
Speaker 1: and China does also still hold out hope of being
Speaker 1: able to conduct this peacefully. Sam thanks very much for
Speaker 1: joining us and for sharing your insights with us. Samson
Speaker 1: Ellis Bloomberg's Taibe Bureau achieve is with us here in
Speaker 1: our Hong Kong studios. I'm Brian Curtis in Hong Kong
Speaker 1: along with Doug Prisner. You can catch us every weekday
Speaker 1: for Bloomberg Daybreak Asia, beginning at six am in Hong
Speaker 1: Kong and six pm on Wall Street. John Brian, thanks
Speaker 1: a lot just ahead on Bloomberg Daybreak weekend. A lot
Speaker 1: hanging on this coming week's US mid term elections. I'm
Speaker 1: John Tucker's this is this is Bloomberg Daybreak weekend, our
Speaker 1: global look ahead at the top stories for investors in
Speaker 1: the coming week. I'm John Tucker in New York O.
Speaker 1: Candid It's are scrambling to cover as much ground as
Speaker 1: possible ahead of Tuesday's mid terms, and some key races
Speaker 1: are close, some are just hard to predict. And for
Speaker 1: a look at what to expect. Let's head to our
Speaker 1: Bloomberg ninety nine one newsroom in Washington and Amy Morris. Amy,
Speaker 1: all right, thank you, John, big steaks for Democrats and
Speaker 1: Republicans in these mid terms. Joining me now to talk
Speaker 1: about it all. White House reporter Jordan Fabian Jordan, thanks
Speaker 1: for taking the time with us, Thanks for having me on, Amy.
Speaker 1: What has the White House and perhaps maybe the President
Speaker 1: cancerned at this point? Well, they're certainly concerned about the
Speaker 1: possibility that Democrats could lose control of one or both
Speaker 1: chambers of Congress. That would essentially spell the end for
Speaker 1: their policy agenda. And so President Biden is going around
Speaker 1: the country two different states to try and campaign and
Speaker 1: save some of these jobs and also gubernatorial candidates trying
Speaker 1: to save some statehouses as well. But if you look
Speaker 1: at where he's going, he's going to New York, New Mexico, California.
Speaker 1: These are states that are traditionally blue states. So that
Speaker 1: shows you the kind of trouble that Democrats are in
Speaker 1: that he's having to go to these uh places that
Speaker 1: were thought to be safe in order to try and
Speaker 1: salvage key lawmakers. And it's not just that they all
Speaker 1: see their policy fall by the wayside um. They're also
Speaker 1: they've got to be concerned that they're gonna see sort
Speaker 1: of a little tit for tat when it comes to
Speaker 1: investigations and subpoenas that sort of thing. Certainly, they're they're
Speaker 1: very well aware of the fact that if Republicans gained
Speaker 1: control of Congress, not only will there be investigations, but
Speaker 1: there could be also impeachment proceedings brought against Joe Biden perhaps,
Speaker 1: but also key cabinet secretaries like a Trinity General General
Speaker 1: Merrick Garland or the Secretary of Homeland Security Alejandro my Orchis.
Speaker 1: So they're preparing for all those possibilities. But I'm told
Speaker 1: by senior White House officials and just the course of
Speaker 1: talking folks this week, that they think that there's a
Speaker 1: strong possibility these kind of investigations could backfire on Republicans
Speaker 1: and that it will be viewed as overreach, especially if
Speaker 1: they go after Hunter Biden and some sensitive subjects like that.
Speaker 1: So that would be something to watch next year if
Speaker 1: Republicans do indeed take control in Jordan. The White House
Speaker 1: is saying now it supports the Fed's rate hikes, it's
Speaker 1: still painful for people to see their mortgage rates go up,
Speaker 1: things of that nature, while at the same time, the
Speaker 1: One House says it is trying to fight back against inflation.
Speaker 1: Let's hear more now, White House Press Secretary Korean Jean Pierre.
Speaker 1: The FED is is independent. It's an independent agency, and
Speaker 1: we believe the President believes that it has uh the
Speaker 1: it has the best monetary policies to address inflation. Now,
Speaker 1: Jean Pierre did take it a step further, stable and
Speaker 1: steady growth with lower inflation. This is the kind of
Speaker 1: economy that delivers for working families, and that's how we
Speaker 1: see the work of the of the Fed. So Jordan
Speaker 1: is being on the side of rising rates going to
Speaker 1: wind up being a liability for the president even though
Speaker 1: he's fighting inflation. How does he balance that. It's a
Speaker 1: really it's a really tough balance to strike. And look,
Speaker 1: if there is a recession at the end of this, Uh, yeah,
Speaker 1: there'll be a political fallout for for the President and
Speaker 1: the Democrats. And you're seeing more and more Democratic lawmakers
Speaker 1: actually raised concern about the size and scope of these
Speaker 1: interest rate hikes. At first, there was Elizabeth Warren, but
Speaker 1: you're seeing other Democratic senators like John hickyl Looper from
Speaker 1: Colorado come out and say, hold on a second, there
Speaker 1: could be some real fall out for the economy. But
Speaker 1: that being said, the White House has been very careful
Speaker 1: to say that the Fed is independent. We're not going
Speaker 1: to ask them to slow the pace of right hikes
Speaker 1: or really do anything for that matter, that we want
Speaker 1: them to do. We're gonna let them do what they
Speaker 1: think is best to try and whip inflation and right now,
Speaker 1: the FETE is signal that they're going to continue with
Speaker 1: this course of rate hikes, possibly you know, next month
Speaker 1: and in the future. And that's really sucked all the
Speaker 1: air out of the room. I mean, it wasn't really
Speaker 1: that long ago when the big concern was abortion access
Speaker 1: and and it seemed to really give Democrats something of
Speaker 1: a boost, and it just evaporated, that's right. And you know,
Speaker 1: you look at it and you think, maybe if this
Speaker 1: the court really came out closer to the election, that
Speaker 1: that boom for Democrats would have been better time for them.
Speaker 1: But yeah, I guess enthusiasm or interest in that issue, uh,
Speaker 1: seemed to wane as concerns about the economy really have
Speaker 1: continued and grown in voters. So if you look at
Speaker 1: polls from around the summer, there are actually a couple
Speaker 1: of polls that that said abortion access and uh, you know,
Speaker 1: threats to democracy were right up there with the economy,
Speaker 1: which you typically don't seat that's usually the number one
Speaker 1: issue for voters, but now those of ebbed and the
Speaker 1: economy is front of mind, and now the president is
Speaker 1: sort of pivoting on that as well, warning of economic
Speaker 1: chaos if Republicans do sweep the midterms. New Jersey Governor
Speaker 1: Phil Murphy told us on Balance of Power this past
Speaker 1: week that a weird economy is actually making things harder
Speaker 1: for Democrats. It's a weird economy where we have our
Speaker 1: lowest unemployment rate ever below the national average. Our revenues
Speaker 1: as at the state level continue to be solid, We've
Speaker 1: been upgraded by credit rating agencies would pay debt out.
Speaker 1: And yet at the same time, there's enormous pain at
Speaker 1: that kitchen table, largely due to affordability. So how do
Speaker 1: they balance that? You know, they haven't really figured it
Speaker 1: out yet. Um. And you know, part of the problem
Speaker 1: is that if you look at Biden's record over the
Speaker 1: first couple of years, he's actually gotten a lot done.
Speaker 1: He's gotten the Infrastructure Bill, He's got that Inflation Induction Act,
Speaker 1: which is really you know, a climate and prescription and
Speaker 1: drug health bill. Uh. He's got this is an agenda
Speaker 1: if you look at it would be great for any president.
Speaker 1: But what they've struggled with is getting people to understand
Speaker 1: or explaining to people how that's going to help them
Speaker 1: afford groceries and clothes and gas, and and they're they've
Speaker 1: tried to strike this balance of, you know, touting their
Speaker 1: accomplishments but also acknowledging the economic pain that people are feeling.
Speaker 1: And they really haven't figured out a message that's stuck.
Speaker 1: And that's why you're seeing a lot of these candidates
Speaker 1: struggle because frankly, voters are blaming this on Joe Biden,
Speaker 1: and his approval ratings have really sunk in the past
Speaker 1: few weeks because he's the guy in the White House exactly.
Speaker 1: We are talking with Bloomberg White House reporter Jordan Fabian
Speaker 1: about the upcoming midterms and what folks might be able
Speaker 1: to expect. Now you had mentioned Jordan's about how democracy
Speaker 1: was an issue you for a hot minute. The President
Speaker 1: still trying to keep it in the spotlight, making the
Speaker 1: January six the insurrection an issue. He talked about it
Speaker 1: at this past week at Union Station, drawing a parallel
Speaker 1: between the attack on Paul Pelosi in his home, which
Speaker 1: also happened uh in this past week. He's the husband
Speaker 1: of House Speaker Nancy Pelosi, also of the violence of
Speaker 1: the January six the insurrection, talked about that as well,
Speaker 1: condemning the rise in violence. He was actually kind of
Speaker 1: hinting that perhaps this could be part of Donald Trump's
Speaker 1: big lie of a stolen election, and that's what's whipping
Speaker 1: folks are. Can't pretend it's just going to solve itself.
Speaker 1: There's an alarming rise in the number of our people
Speaker 1: in this country condoning political violence. Now, is there any
Speaker 1: indication Jordan's that, um, this is mobilizing Democrats to come
Speaker 1: out and vote, or maybe changing hearts and minds of
Speaker 1: folks on the other side, change your hearts and minds
Speaker 1: on the other side, I highly doubt. Um. You know,
Speaker 1: this place seems to be uh something to get the
Speaker 1: Democratic base going, because of course they're that's front of
Speaker 1: mind for them. And look, you know, these are really
Speaker 1: important issues, you know, democracy. You know, the election denial
Speaker 1: follow from January six. You know, this is something that
Speaker 1: you know, President you know, probably should be talking about
Speaker 1: in the run of the election, given the kind of
Speaker 1: candidates that are running on the other side. But um,
Speaker 1: you know, as a matter of you know, political expediency
Speaker 1: and tactical decision making ahead of the mid terms, I'm
Speaker 1: not sure this is moving voters in Democrats favoritehead of
Speaker 1: the midterms. You know, the cost of living, Like we're
Speaker 1: just talking about the economy. Those are things that are
Speaker 1: front of mind, and that's really imperative for Biden to
Speaker 1: address in the In the closing days here, I want
Speaker 1: to talk to you about some of the big races
Speaker 1: that have been top of mind over the past well
Speaker 1: the past several weeks. Really, you've got Georgia's Senate race,
Speaker 1: You've got Pennsylvania, you've got Nevada. What are some of
Speaker 1: the things that you're gonna be watching for in the
Speaker 1: next few days. Well, especially in Nevada, you know, can
Speaker 1: you know Cortez Masto, the Democratic senator there, really harness
Speaker 1: the Hispanic vote. I mean, that's been the key turnout
Speaker 1: engine for Democrats. And you know that used to be
Speaker 1: a purple state and they've now you know, captured basically
Speaker 1: all the statewide offices there. But uh, since the pandemic,
Speaker 1: those a lot of those people work in the casinos.
Speaker 1: They had a really tough time during the pandemic. The
Speaker 1: inflation is really hitting Nevada hard. So, uh, you know,
Speaker 1: all all these economic issues we're talking about, that that
Speaker 1: really you know, if you look at Nevada, that would
Speaker 1: say that's kind of the ground zero for that. But
Speaker 1: in in Georgia, you know, it's you have these other
Speaker 1: candidates like herschel Walker who have really been you know,
Speaker 1: poor candidates, and but traction has traction. You have traction
Speaker 1: because of the environment and the environment is so bad
Speaker 1: for Democrats. And when you say the environment, you mean
Speaker 1: the tone, the political and vironment. You know, people are
Speaker 1: angry and upset with it with the economy and they
Speaker 1: want to take it out on Democrats. So is that
Speaker 1: going to be enough to propel kenn who has flaws
Speaker 1: like hershel Walker to victory? And so that's what I'll
Speaker 1: be looking for in you know, Georgia and also in
Speaker 1: Arizona and in Pennsylvania. Things have really tightened up between
Speaker 1: Memo Oz and Fetterman. That's right. And so you look
Speaker 1: at uh, you look at what Joe Biden is going, right,
Speaker 1: He's avoided a lot of those states we were just
Speaker 1: talking about with the key races, but his advisors believe
Speaker 1: that he resonates in Pennsylvania's well, Joe Biden have took
Speaker 1: cottails here. Can he help really propel Fetterman, who's really
Speaker 1: struggled since having that stroke and fallen behind or I
Speaker 1: guess how his lead cut uh over odds? Like can
Speaker 1: he could Joe Biden propel at least one vulnerable Democrat
Speaker 1: to victory this year? All right, we're gonna watch it
Speaker 1: with you. Jordan Fabian covering the White House for Bloomberg
Speaker 1: News as always, Jordan, thank you so much. Thank you, Amy.
Speaker 1: That's what's going on in the nation's capital. For more
Speaker 1: of our political news coverage, you can tune into Balance
Speaker 1: of Power with David weston weekdays at noon Wall Street Time,
Speaker 1: and Sound On with Joe Matthew weekdays at five pm
Speaker 1: Wall Street Time here on Bloomberg Radio, and we will
Speaker 1: bring you live election coverage on Bloomberg Radio and television
Speaker 1: Tuesday night that starts at eight pm Wall Street Time.
Speaker 1: I'm Amy Morris and this is Bloomberg John, Amy Morris
Speaker 1: reporting from our Bloomberg room in Washington. Thanks Amy, and
Speaker 1: that does it for this edition of Bloomberg Daybreak Weekend.
Speaker 1: Join us again Monday morning at five am Wall Street
Speaker 1: Time for the latest on markets overseas and the news
Speaker 1: you need to start your day. I'm John Tucker and
Speaker 1: this is b