1
00:00:02,520 --> 00:00:11,080
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

2
00:00:11,160 --> 00:00:14,920
Speaker 1: Daybreak Europe podcast. Good morning, It's Wednesday, the thirteenth of August.

3
00:00:15,000 --> 00:00:18,800
Speaker 1: I'm Stephen Carolin London. Coming up today. Global stocks have

4
00:00:18,880 --> 00:00:22,200
Speaker 1: hit a record high as US inflation data fuels bets

5
00:00:22,200 --> 00:00:25,920
Speaker 1: on interest rate cuts from the Federal Reserve. Donald Trump

6
00:00:25,960 --> 00:00:28,840
Speaker 1: tells the CEO of Goldman Sachs to stick to spinning

7
00:00:28,960 --> 00:00:33,120
Speaker 1: records and take a beat on the bank's negative TARA forecasts.

8
00:00:33,600 --> 00:00:37,280
Speaker 1: Plus charged up while getting paid to buy store and

9
00:00:37,479 --> 00:00:40,680
Speaker 1: sell energy back into power grids could be the next

10
00:00:40,840 --> 00:00:44,320
Speaker 1: big trade. Let's start with a roundup of our top stories.

11
00:00:45,200 --> 00:00:47,680
Speaker 1: Global stocks have climbed to a record high after the

12
00:00:47,720 --> 00:00:51,960
Speaker 1: latest US inflation data eased price concerns and strengthened bets

13
00:00:51,960 --> 00:00:55,000
Speaker 1: on a Federal Reserve interest rate cut next month. The

14
00:00:55,120 --> 00:00:58,360
Speaker 1: MSCIOL Country World Index hit an all time peak following

15
00:00:58,400 --> 00:01:01,920
Speaker 1: Wall Street's surge as my markets nearly fully priced in

16
00:01:02,000 --> 00:01:05,279
Speaker 1: a twenty five basis point reduction at the Fed's next meeting.

17
00:01:05,840 --> 00:01:08,960
Speaker 1: While corey US inflation accelerated to its fastest pace since

18
00:01:09,000 --> 00:01:11,959
Speaker 1: the start of the year, A modestize in goods prices

19
00:01:12,000 --> 00:01:15,120
Speaker 1: has tempered fears that the cost of taris could push

20
00:01:15,200 --> 00:01:18,280
Speaker 1: up prices. More broadly, Jay Barry is JP Morgan's head

21
00:01:18,280 --> 00:01:19,440
Speaker 1: of global rate Strategy.

22
00:01:20,120 --> 00:01:22,480
Speaker 2: I think there is some encouragement from the fact that

23
00:01:22,480 --> 00:01:24,560
Speaker 2: you didn't see any pickup and core goods pricing so far,

24
00:01:24,560 --> 00:01:26,720
Speaker 2: whereas another month with the tariffs in place where you

25
00:01:26,760 --> 00:01:29,039
Speaker 2: haven't seen them pick up. That has given market participants

26
00:01:29,080 --> 00:01:31,400
Speaker 2: a bit more sort of lack of concern right there,

27
00:01:31,480 --> 00:01:33,280
Speaker 2: and you pivot it back to the labor market after

28
00:01:33,319 --> 00:01:35,640
Speaker 2: today that if we know the FED as an asymmetric

29
00:01:35,680 --> 00:01:38,000
Speaker 2: reaction function and seems to be more concerned about labor

30
00:01:38,040 --> 00:01:40,880
Speaker 2: market weakness than inflation being above its target, and with

31
00:01:40,959 --> 00:01:43,520
Speaker 2: the slowing we've seen in private payroll growth, it kind

32
00:01:43,520 --> 00:01:45,240
Speaker 2: of gives the green light to go back and think

33
00:01:45,280 --> 00:01:48,000
Speaker 2: about the FED cutting in September, even with inflation very

34
00:01:48,000 --> 00:01:49,240
Speaker 2: far away from the FEDS target.

35
00:01:49,880 --> 00:01:53,120
Speaker 1: J Barry, speaking as investor focus now shifts to Friday's

36
00:01:53,320 --> 00:01:57,320
Speaker 1: US retail sales figures for signs that consumers are as

37
00:01:57,400 --> 00:02:02,200
Speaker 1: upbeat as recent corporate earnings comment has suggested. Donald Trump

38
00:02:02,240 --> 00:02:05,000
Speaker 1: has criticized the chief executive of Goldman Sachs, saying that

39
00:02:05,080 --> 00:02:08,840
Speaker 1: David Solomon's bank made a bad prediction about the impact

40
00:02:08,880 --> 00:02:12,560
Speaker 1: of the US President's sweeping tariff agenda. Pimburg's Ewen Parts

41
00:02:12,560 --> 00:02:12,959
Speaker 1: has more.

42
00:02:13,720 --> 00:02:16,280
Speaker 3: Donald Trump says the boss of Goldman's sac should maybe

43
00:02:16,320 --> 00:02:19,679
Speaker 3: just focus on being a DJ, referring to David Solomon's

44
00:02:19,720 --> 00:02:23,040
Speaker 3: part time hobby. The US President also recommended the bank

45
00:02:23,120 --> 00:02:26,320
Speaker 3: get itself a new economist, saying on social media that

46
00:02:26,320 --> 00:02:29,880
Speaker 3: Goldman Sachs had made a quote bad prediction on tariff's.

47
00:02:30,240 --> 00:02:33,000
Speaker 3: Trump didn't specify why he was upset, but his remarks

48
00:02:33,000 --> 00:02:35,800
Speaker 3: follow a weekend research note from Goldman that said the

49
00:02:35,840 --> 00:02:39,000
Speaker 3: impact of tariff's on consumer prices was just starting to

50
00:02:39,040 --> 00:02:40,520
Speaker 3: be felt in London.

51
00:02:40,520 --> 00:02:43,880
Speaker 1: I'm youw and Pot's Spoomberg Radio the US President's Pictullie.

52
00:02:43,919 --> 00:02:47,040
Speaker 1: The Bureau of Labor Statistics E. J. Anthony has suggested

53
00:02:47,080 --> 00:02:51,360
Speaker 1: suspending the agency's monthly jobs report. Speaking to Fox Business

54
00:02:51,360 --> 00:02:55,040
Speaker 1: on Monday before his nomination, Anthony suggested switching to quarterly

55
00:02:55,080 --> 00:02:59,280
Speaker 1: reporting until issues are resolved. White House Press Secretary Caroline

56
00:02:59,320 --> 00:03:02,760
Speaker 1: Levitt says she expects the monthly reports to continue.

57
00:03:02,840 --> 00:03:06,480
Speaker 4: He floated the idea of possibly suspending until they can

58
00:03:06,480 --> 00:03:09,760
Speaker 4: get the data and the methodology and order in this

59
00:03:09,880 --> 00:03:12,880
Speaker 4: president wants to ensure that the BLS again is putting

60
00:03:12,880 --> 00:03:16,919
Speaker 4: out accurate and honest data that the American people can trust.

61
00:03:17,560 --> 00:03:19,840
Speaker 1: Whit I spokes with when Carline Levitt was speaking as

62
00:03:19,880 --> 00:03:23,520
Speaker 1: critics of warrened that eliminating monthly jobs reports could undermine

63
00:03:23,560 --> 00:03:27,320
Speaker 1: public trust and hurt financial markets that rely on timely

64
00:03:27,440 --> 00:03:32,880
Speaker 1: employment data. While Britain's struggling Statistics authority faces a six

65
00:03:32,960 --> 00:03:36,280
Speaker 1: percent real terms funding cut by twenty twenty nine, the

66
00:03:36,320 --> 00:03:39,400
Speaker 1: budget squeeze at the Office for National Statistics comes as

67
00:03:39,400 --> 00:03:42,760
Speaker 1: it tries to recover from a data crisis. Primbrooks James

68
00:03:42,760 --> 00:03:43,480
Speaker 1: Wilcock has.

69
00:03:43,360 --> 00:03:48,640
Speaker 5: More delayed releases and major mistakes in GDP jobs and

70
00:03:48,760 --> 00:03:52,840
Speaker 5: inflation reports. Many have asked how the Office for National

71
00:03:52,840 --> 00:03:57,640
Speaker 5: Statistics fell into crisis. Poor management and the social impact

72
00:03:57,640 --> 00:04:01,080
Speaker 5: of COVID, even the new popularity of ring doorbells have

73
00:04:01,240 --> 00:04:05,120
Speaker 5: all been given as answers. But you can't rule out money.

74
00:04:05,560 --> 00:04:09,600
Speaker 5: The body that gathers UK data has suffered under austerity.

75
00:04:10,320 --> 00:04:12,920
Speaker 5: Our reporter suggests it will now have to turn around

76
00:04:12,920 --> 00:04:16,880
Speaker 5: its service while facing more real terms cuts in London.

77
00:04:17,040 --> 00:04:18,719
Speaker 5: James Wilcock Bloomberg.

78
00:04:18,360 --> 00:04:23,240
Speaker 1: Radio returning to Ukraine's president who says he won't give

79
00:04:23,279 --> 00:04:26,000
Speaker 1: up control of the eastern dawn Bass region to Russia.

80
00:04:26,160 --> 00:04:29,480
Speaker 1: Vladimir Zelenski was speaking as he pushes for his representatives

81
00:04:29,480 --> 00:04:32,400
Speaker 1: to be included in planned talks between the US and

82
00:04:32,480 --> 00:04:34,480
Speaker 1: Russia on Friday in Alaska.

83
00:04:36,480 --> 00:04:40,440
Speaker 6: It's impossible to talk about Ukraine without Ukraine, and no

84
00:04:40,480 --> 00:04:43,560
Speaker 6: one will accept that. But they cannot agree on anything

85
00:04:43,600 --> 00:04:47,800
Speaker 6: about Ukraine without US. I truly believe and hope that

86
00:04:47,839 --> 00:04:51,080
Speaker 6: the US President understands and realizes.

87
00:04:50,520 --> 00:04:54,960
Speaker 1: That President Zelenski speaking there through a translator, in order

88
00:04:55,000 --> 00:04:59,080
Speaker 1: to unlock a ceasefire and broader peace negotiations. Russia's President

89
00:04:59,160 --> 00:05:02,760
Speaker 1: Vladimir Putin demanding that Ukraine give up the Donyetska and

90
00:05:02,800 --> 00:05:07,159
Speaker 1: Luhansk regions doing seward Grand Moscow, a victory its army

91
00:05:07,200 --> 00:05:12,480
Speaker 1: has failed to achieve militarily for more than a decade.

92
00:05:12,960 --> 00:05:16,440
Speaker 1: In Germany's Conservative Alliance is losing ground to the country's

93
00:05:16,480 --> 00:05:20,680
Speaker 1: far right. That says the Chancellor's own popularity also deteriorate.

94
00:05:20,720 --> 00:05:23,839
Speaker 1: Spinbrooks two Adebio has more support.

95
00:05:23,480 --> 00:05:26,440
Speaker 7: For Germany's right wing AfD party is at a record

96
00:05:26,560 --> 00:05:30,200
Speaker 7: high according to new voter polling figures. The jump comes

97
00:05:30,279 --> 00:05:33,000
Speaker 7: just three months after Chancellor of Friedrich Mertz and his

98
00:05:33,160 --> 00:05:38,680
Speaker 7: rule and coalition took power. Mertz's personal favorability has also suffered,

99
00:05:38,920 --> 00:05:42,239
Speaker 7: with the leader's approval ratings sinking to its lowest level

100
00:05:42,320 --> 00:05:46,279
Speaker 7: since stepping into office. Voters are unconvinced that the German

101
00:05:46,360 --> 00:05:50,480
Speaker 7: premier is making noticeable improvements compared to the previous government.

102
00:05:50,800 --> 00:05:55,560
Speaker 7: According to Forza, the Polster behind the figures their latest SURVEYSS,

103
00:05:55,600 --> 00:05:58,919
Speaker 7: only twenty nine percent of voters polled in early August

104
00:05:59,080 --> 00:06:02,360
Speaker 7: said they were satisfied with mass performance, down from a

105
00:06:02,440 --> 00:06:05,720
Speaker 7: high of forty three percent in June in London. Do

106
00:06:05,839 --> 00:06:07,480
Speaker 7: you added BUYO Bloomberg Radio?

107
00:06:08,080 --> 00:06:09,760
Speaker 1: And those are your top stories? On the markets, The

108
00:06:09,880 --> 00:06:13,560
Speaker 1: Msciish Pacific Index one point one percent higher, eurostocks fifty

109
00:06:13,560 --> 00:06:15,599
Speaker 1: features are up by four tenths of one percent, the

110
00:06:15,640 --> 00:06:18,760
Speaker 1: tenure treasury yield just easing a basis point now to

111
00:06:18,800 --> 00:06:21,159
Speaker 1: four point two eight percent, as we have the Euro

112
00:06:21,240 --> 00:06:23,880
Speaker 1: trading a tenth stronger against the dollar at one sixteen

113
00:06:24,400 --> 00:06:27,640
Speaker 1: eighty five. In a moment, more on how markets are

114
00:06:27,720 --> 00:06:29,680
Speaker 1: ramping up bets on a rate cut from the Federal

115
00:06:29,720 --> 00:06:33,120
Speaker 1: Reserve next month, plus why the next big energy trade

116
00:06:33,360 --> 00:06:36,600
Speaker 1: is mega batteries for Europe. But another story that I've

117
00:06:36,600 --> 00:06:38,920
Speaker 1: been reading this morning, the latest in the travel Hacks

118
00:06:38,960 --> 00:06:41,800
Speaker 1: series from Bloomberg Pursuits. Mark Elwood's been speaking to the

119
00:06:41,839 --> 00:06:45,560
Speaker 1: cocktail guru, Colin Asara Appia, who regularly travels more than

120
00:06:45,560 --> 00:06:47,760
Speaker 1: two hundred thousand miles a year, so has something to

121
00:06:47,800 --> 00:06:51,159
Speaker 1: say about ways to make travel easier now. Colin was

122
00:06:51,160 --> 00:06:53,159
Speaker 1: born in Ghana, grew up in London, now lives in

123
00:06:53,160 --> 00:06:55,320
Speaker 1: New York City, so even that gives him a fairly

124
00:06:55,680 --> 00:06:58,080
Speaker 1: broad range to be covering. But the conversation that he

125
00:06:58,120 --> 00:07:01,040
Speaker 1: had with Mark yields some gems, including that he has

126
00:07:01,040 --> 00:07:03,719
Speaker 1: a handy guide on the essential cocktail kit to bring

127
00:07:03,800 --> 00:07:07,480
Speaker 1: with you when you travel. Essentially a tiny bottle of bitters,

128
00:07:07,960 --> 00:07:09,960
Speaker 1: he says, is the key to making a cocktail on

129
00:07:10,000 --> 00:07:12,600
Speaker 1: the go if you're in a hotel with a kettle

130
00:07:12,760 --> 00:07:16,120
Speaker 1: and potentially getting a slice of lime from the bar

131
00:07:16,280 --> 00:07:18,720
Speaker 1: there as well. That sounds like too much hard work,

132
00:07:18,760 --> 00:07:20,320
Speaker 1: though He's also got tips for the best bars and

133
00:07:20,360 --> 00:07:24,000
Speaker 1: Johannesburg Cape Town, the cocktail festival you won't want to miss,

134
00:07:24,240 --> 00:07:27,240
Speaker 1: and even where to get a martini in London. His

135
00:07:27,320 --> 00:07:30,080
Speaker 1: tip agopirone at the Connat hotels. You can read the

136
00:07:30,120 --> 00:07:32,040
Speaker 1: full piece on Bloomberg dot com and we'll put a

137
00:07:32,040 --> 00:07:33,800
Speaker 1: link to it in our podcast show notes as well.

138
00:07:34,440 --> 00:07:36,200
Speaker 1: Let's turn back to the markets now, where a global

139
00:07:36,200 --> 00:07:38,560
Speaker 1: benchmark of stocks is at a record high, as traders

140
00:07:38,560 --> 00:07:40,880
Speaker 1: are now pricing in a twenty five basis point cut

141
00:07:40,920 --> 00:07:43,760
Speaker 1: from the Federal Reserve next month. Our executive editor for

142
00:07:43,800 --> 00:07:46,559
Speaker 1: Asia Markets, Paul Dobson, joins us now for more.

143
00:07:47,040 --> 00:07:47,280
Speaker 4: Paul.

144
00:07:47,280 --> 00:07:50,760
Speaker 1: The movin rate cut pricing came after the inflation data yesterday,

145
00:07:50,760 --> 00:07:53,520
Speaker 1: which gave us further insight into how tariffs are affecting

146
00:07:53,560 --> 00:07:56,560
Speaker 1: consumer prices. What exactly did we learn that caused markets

147
00:07:56,560 --> 00:07:56,920
Speaker 1: to move?

148
00:07:57,720 --> 00:08:01,200
Speaker 8: Yeah, good morning, Stephen So. And looking at it from afar,

149
00:08:01,440 --> 00:08:03,480
Speaker 8: it might be a little bit of a confusing picture

150
00:08:03,520 --> 00:08:08,080
Speaker 8: to see inflation rising, getting to the fastest rate since January,

151
00:08:08,760 --> 00:08:12,760
Speaker 8: but at the same time seeing treasury yields fall and

152
00:08:12,800 --> 00:08:15,480
Speaker 8: people betting that the Federal Reserve will move closer to

153
00:08:15,520 --> 00:08:18,400
Speaker 8: cutting interest rates. But what's really going on here is

154
00:08:18,440 --> 00:08:23,400
Speaker 8: people will focus very clearly on goods prices and how

155
00:08:23,520 --> 00:08:28,240
Speaker 8: much of the US tariff sort of costs of being

156
00:08:28,600 --> 00:08:32,880
Speaker 8: passed through into that bucket in particular, and they concluded

157
00:08:32,920 --> 00:08:35,160
Speaker 8: that there was no reason for panic. There was no

158
00:08:35,200 --> 00:08:38,680
Speaker 8: sign that the tariffs were having a particularly inflationary impact

159
00:08:38,920 --> 00:08:41,679
Speaker 8: based on the data that were there, and therefore they

160
00:08:41,720 --> 00:08:44,680
Speaker 8: were confident that that would give the Fed enough leeway

161
00:08:44,760 --> 00:08:47,679
Speaker 8: to cut interest rates by paying attention to the weakening

162
00:08:47,760 --> 00:08:49,800
Speaker 8: job data and focusing a little bit less on the

163
00:08:49,840 --> 00:08:52,440
Speaker 8: inflation side. Now there's plenty a worry. What's out there

164
00:08:52,440 --> 00:08:54,920
Speaker 8: who were saying this is the FED tactic, tacitly kind

165
00:08:54,920 --> 00:08:58,800
Speaker 8: of abandoning its two percent target rates, saying it's willing

166
00:08:58,840 --> 00:09:02,200
Speaker 8: to protect or accept these higher costs, not worried about it.

167
00:09:02,280 --> 00:09:04,600
Speaker 8: This is an abomination. You know, some people are saying

168
00:09:04,679 --> 00:09:07,080
Speaker 8: are pretty outraged by it. But on the other hand,

169
00:09:07,200 --> 00:09:10,280
Speaker 8: you know, the market loves the idea that the Fed

170
00:09:10,400 --> 00:09:12,320
Speaker 8: is going to make interest rates a little bit lower,

171
00:09:12,320 --> 00:09:15,040
Speaker 8: borrowing costs lower, and that's why we saw those equities

172
00:09:15,040 --> 00:09:17,240
Speaker 8: propelling to new record highs.

173
00:09:17,640 --> 00:09:19,320
Speaker 1: We'll just talk us through how this story is playing

174
00:09:19,320 --> 00:09:21,240
Speaker 1: out in Asia today, because it had sparked a rally

175
00:09:21,280 --> 00:09:23,480
Speaker 1: on Wall Street yesterday, but that's continuing into what we're

176
00:09:23,480 --> 00:09:24,520
Speaker 1: seeing on markets today.

177
00:09:25,000 --> 00:09:26,840
Speaker 8: That's right, and I think you know, as well as

178
00:09:26,880 --> 00:09:29,480
Speaker 8: the equities rally you've got this sense of calm over

179
00:09:29,559 --> 00:09:32,240
Speaker 8: markets now that we have a little bit more predictability there.

180
00:09:32,240 --> 00:09:36,680
Speaker 8: So you have the VIX, which measures US stock market volatility,

181
00:09:36,720 --> 00:09:39,679
Speaker 8: at the lowest level since Christmas last year. You've got

182
00:09:39,679 --> 00:09:42,959
Speaker 8: the MOVE index of bond volatility the lowest since twenty

183
00:09:43,000 --> 00:09:45,319
Speaker 8: twenty two, and even FX volatility is now the lowest

184
00:09:45,360 --> 00:09:47,880
Speaker 8: since this time last year, more or less, And so

185
00:09:48,600 --> 00:09:51,480
Speaker 8: everything is pointing to the calmer markets. And Asia loves that.

186
00:09:51,640 --> 00:09:54,760
Speaker 8: Asian loves reduced volatility, and it likes a weaker dollar

187
00:09:54,840 --> 00:09:57,800
Speaker 8: as well. Lower interest rates pulled down the dollar, boy

188
00:09:57,960 --> 00:10:00,760
Speaker 8: Asian currencies and boy Asian markets in general. So you've

189
00:10:00,760 --> 00:10:03,559
Speaker 8: got stock gains pretty much across the board. We've got

190
00:10:03,559 --> 00:10:06,640
Speaker 8: some record highs in Japan, in Taiwan, we've got the

191
00:10:06,640 --> 00:10:09,840
Speaker 8: Shanghai composite at its highest level since twenty twenty one,

192
00:10:09,880 --> 00:10:12,520
Speaker 8: I think it is, and so on and so forth,

193
00:10:12,559 --> 00:10:15,319
Speaker 8: pretty much across the board. Indonesia may be getting to

194
00:10:15,400 --> 00:10:19,400
Speaker 8: a record high sometime soon as well, So Asia celebrating

195
00:10:19,440 --> 00:10:19,760
Speaker 8: and short.

196
00:10:20,160 --> 00:10:23,480
Speaker 1: Yeah, the party continues, but thinking about where the FED

197
00:10:23,600 --> 00:10:27,120
Speaker 1: might go in September has been the focus of this.

198
00:10:27,280 --> 00:10:29,920
Speaker 1: The US Traaguri secerties cut best and suggesting the FED

199
00:10:29,920 --> 00:10:32,600
Speaker 1: should be open to a fifty basis point cut at

200
00:10:32,600 --> 00:10:34,560
Speaker 1: its next meeting. What's the likelihood of that.

201
00:10:35,520 --> 00:10:39,360
Speaker 8: The likelihood is pretty low, given particularly you know, we

202
00:10:39,440 --> 00:10:42,200
Speaker 8: had a split FED fotes already in some of the

203
00:10:42,240 --> 00:10:45,280
Speaker 8: policymakers that we're hearing from are still pointing to the

204
00:10:45,320 --> 00:10:48,120
Speaker 8: idea that they would rather wait than act now. On

205
00:10:48,160 --> 00:10:50,160
Speaker 8: the other hand, the market is starting to price in

206
00:10:50,280 --> 00:10:53,360
Speaker 8: just that little bit of a possibility of a greater cut.

207
00:10:53,400 --> 00:10:56,720
Speaker 8: September is ninety percent price for a twenty five basis

208
00:10:56,720 --> 00:11:00,160
Speaker 8: point cut. So the general consensus is that that that's

209
00:11:00,160 --> 00:11:02,360
Speaker 8: where they will go. But some of the options market

210
00:11:02,360 --> 00:11:05,360
Speaker 8: plays that we're seeing starting to emerge a people betting

211
00:11:05,360 --> 00:11:08,000
Speaker 8: on a more aggressive start to the cutting site or

212
00:11:08,040 --> 00:11:10,560
Speaker 8: restart to the cutting cycle, just like we saw with

213
00:11:10,600 --> 00:11:14,440
Speaker 8: the FED when it began to ease interest rates again

214
00:11:15,280 --> 00:11:16,320
Speaker 8: in twenty twenty four.

215
00:11:16,920 --> 00:11:19,360
Speaker 1: And Part just a brief word on this question about

216
00:11:19,400 --> 00:11:21,800
Speaker 1: the monthly jobs report. If we're talking a lot about

217
00:11:21,800 --> 00:11:26,040
Speaker 1: the reliability of data on today's show, But this question

218
00:11:26,120 --> 00:11:28,720
Speaker 1: now that E. J. Anthony raised before he was nominated

219
00:11:28,760 --> 00:11:31,920
Speaker 1: to be head of the BLS, that maybe the BLS

220
00:11:31,920 --> 00:11:34,959
Speaker 1: that switched to quarterly jobs reports instead of monthly ones.

221
00:11:35,000 --> 00:11:36,199
Speaker 1: How would go down at markets?

222
00:11:36,960 --> 00:11:39,560
Speaker 8: I think that that would get a unanimous thumbs down.

223
00:11:39,600 --> 00:11:41,800
Speaker 8: You know, the payrolls report, more than anything else, is

224
00:11:41,840 --> 00:11:45,840
Speaker 8: the barometer of US economic strength of the market uses

225
00:11:45,840 --> 00:11:48,079
Speaker 8: to try to anticipate what the Federal Reserve is going

226
00:11:48,120 --> 00:11:52,439
Speaker 8: to do each meeting. So disappearing that data, or putting

227
00:11:52,480 --> 00:11:54,680
Speaker 8: it on hold, or making it less frequent and less

228
00:11:54,720 --> 00:11:57,440
Speaker 8: regular would certainly be treated with a certain amount of

229
00:11:57,440 --> 00:12:01,080
Speaker 8: disappointment and dismay by the markets, who would rather have

230
00:12:01,800 --> 00:12:06,640
Speaker 8: more reliable and frequent data rather than more opaque and

231
00:12:06,920 --> 00:12:11,640
Speaker 8: less frequent data. So hopefully, you know, when we prefer

232
00:12:11,840 --> 00:12:15,400
Speaker 8: transparency too, we prefer reliable data makes our jobs as

233
00:12:15,440 --> 00:12:19,160
Speaker 8: journalists easier as much as anything else. Hopefully that's just

234
00:12:19,200 --> 00:12:21,960
Speaker 8: a suggestion, just the floating of the idea, and what

235
00:12:22,000 --> 00:12:25,840
Speaker 8: we'll actually see is the US government providing more funding

236
00:12:25,840 --> 00:12:28,120
Speaker 8: for their department and therefore helping to make that data

237
00:12:28,160 --> 00:12:29,520
Speaker 8: more reliable and more timely.

238
00:12:30,000 --> 00:12:32,520
Speaker 1: Okay, Paul Dobson, our executive addor for Asia Markets, thank

239
00:12:32,559 --> 00:12:35,160
Speaker 1: you very much. Next to what is becoming the next

240
00:12:35,200 --> 00:12:38,960
Speaker 1: big energy trade in Europe as renewable energy outputs SORES,

241
00:12:38,960 --> 00:12:42,320
Speaker 1: across the continent, investments in battery storage have struggles to

242
00:12:42,400 --> 00:12:45,280
Speaker 1: keep up. It's driven commodity traders to get involved, and

243
00:12:45,320 --> 00:12:47,720
Speaker 1: our reporter Artie Hunter joins me now for more on

244
00:12:47,800 --> 00:12:50,880
Speaker 1: the story, Artie, good morning. What sparks this interest then

245
00:12:50,920 --> 00:12:52,679
Speaker 1: in batteries for traders.

246
00:12:53,080 --> 00:12:57,120
Speaker 9: It's something that commodity traders have done for decades and

247
00:12:57,600 --> 00:13:01,000
Speaker 9: further back. If you think about it as buying a resource,

248
00:13:01,600 --> 00:13:04,680
Speaker 9: storing it and then and selling it at a point

249
00:13:04,720 --> 00:13:07,959
Speaker 9: where demand is higher and prices go higher or suppliers low.

250
00:13:08,200 --> 00:13:10,680
Speaker 9: In Europe, that's happening more and more and more with

251
00:13:10,880 --> 00:13:16,840
Speaker 9: electricity prices or power prices as renewable energy sources come

252
00:13:16,880 --> 00:13:23,880
Speaker 9: online and drive electricity apply massively during the day and

253
00:13:24,320 --> 00:13:29,360
Speaker 9: much less during the during the evening when when demand

254
00:13:29,400 --> 00:13:31,680
Speaker 9: also picks up. So there's a lot of volatility in

255
00:13:31,679 --> 00:13:36,000
Speaker 9: the prices and that's really what brings traders to the party.

256
00:13:36,480 --> 00:13:39,319
Speaker 1: So who's investing in this and what sort of investments

257
00:13:39,320 --> 00:13:39,880
Speaker 1: are they making.

258
00:13:41,040 --> 00:13:43,440
Speaker 9: Some of the companies are doing it in slightly different ways.

259
00:13:43,480 --> 00:13:49,880
Speaker 9: So Castleton Commodities, which is a trading company, is buying

260
00:13:52,000 --> 00:13:55,679
Speaker 9: battery I guess you'd call them sort of battery farms

261
00:13:55,720 --> 00:13:58,920
Speaker 9: where you know, they'll say they'll get into a development,

262
00:13:59,040 --> 00:14:01,520
Speaker 9: they'll say we go and they get the approvals to

263
00:14:01,559 --> 00:14:05,480
Speaker 9: build huge amounts of these, like I guess they look

264
00:14:05,600 --> 00:14:08,880
Speaker 9: like sort of big white boxes. They're putting them all

265
00:14:08,880 --> 00:14:11,520
Speaker 9: over Europe in places where renewables are the heaviest, so

266
00:14:11,559 --> 00:14:16,559
Speaker 9: where the grid is really in need of balancing, mostly traffic.

267
00:14:16,559 --> 00:14:20,280
Speaker 9: Eura and Vito are also doing the same thing through

268
00:14:20,840 --> 00:14:21,880
Speaker 9: joint venture companies.

269
00:14:22,240 --> 00:14:25,360
Speaker 1: What does a massive ramp up and battery investment mean

270
00:14:25,400 --> 00:14:27,960
Speaker 1: that in terms of what we can think in the

271
00:14:28,040 --> 00:14:30,680
Speaker 1: moves and power prices. He talked about the massive volatility

272
00:14:30,720 --> 00:14:34,760
Speaker 1: that's existed in electricity spark prices from the increased use

273
00:14:34,800 --> 00:14:37,320
Speaker 1: of renewables. As people ramp up batteries, Does that mean

274
00:14:37,400 --> 00:14:39,520
Speaker 1: essentially that might start to smooth out?

275
00:14:39,760 --> 00:14:42,960
Speaker 9: I think the idea is that you have batteries that

276
00:14:43,560 --> 00:14:46,720
Speaker 9: can store power when there's an overload in the market

277
00:14:46,960 --> 00:14:51,360
Speaker 9: and distribute it when there's high demand and less availability.

278
00:14:51,480 --> 00:14:54,960
Speaker 9: So theoretically this is something that Europe is going to

279
00:14:55,040 --> 00:15:00,800
Speaker 9: need masses of to level out this shift which you

280
00:15:00,840 --> 00:15:03,400
Speaker 9: know we've already started to see, but is only going

281
00:15:03,440 --> 00:15:07,200
Speaker 9: to increase to renewable power generation.

282
00:15:10,000 --> 00:15:12,720
Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

283
00:15:12,800 --> 00:15:15,840
Speaker 1: stories making news from London to Wall Street and beyond.

284
00:15:16,120 --> 00:15:20,080
Speaker 10: Look for us on your podcast feed every morning, on Apple, Spotify,

285
00:15:20,200 --> 00:15:22,120
Speaker 10: and anywhere else you get your podcasts.

286
00:15:22,160 --> 00:15:25,200
Speaker 1: You can also listen live each morning on London Dab Radio,

287
00:15:25,240 --> 00:15:27,960
Speaker 1: the Bloomberg Business app, and Bloomberg dot Com.

288
00:15:28,000 --> 00:15:30,760
Speaker 10: Our flagship New York station, is also available on your

289
00:15:30,800 --> 00:15:35,520
Speaker 10: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

290
00:15:35,760 --> 00:15:38,400
Speaker 1: I'm Caroline Hepka and I'm Stephen Carroll. Join us again

291
00:15:38,440 --> 00:15:41,000
Speaker 1: tomorrow morning for all the news you need to start

292
00:15:41,040 --> 00:15:47,640
Speaker 1: your day right here on Bloomberg day Break Europe