1
00:00:02,400 --> 00:00:03,000
Speaker 1: Good morning.

2
00:00:03,120 --> 00:00:05,880
Speaker 2: I'm Brian Curtis and I'm Doug Prisner. Here are the

3
00:00:05,920 --> 00:00:07,320
Speaker 2: stories we're following today.

4
00:00:08,280 --> 00:00:11,320
Speaker 1: The US says Israel has agreed to pause fighting in

5
00:00:11,360 --> 00:00:14,920
Speaker 1: parts of the northern Gaza Strip for four hours a day.

6
00:00:15,320 --> 00:00:17,439
Speaker 1: At baxteries on that story and has the rest of

7
00:00:17,480 --> 00:00:19,279
Speaker 1: the news from the nine to sixty newsroom ed.

8
00:00:19,520 --> 00:00:21,840
Speaker 3: Yeah, Brian, this course has an effort to allow people

9
00:00:21,880 --> 00:00:24,319
Speaker 3: to flee and have the potential to get aid in

10
00:00:24,600 --> 00:00:29,320
Speaker 3: as well. State Department spokesman Vita Patel says some movement.

11
00:00:29,040 --> 00:00:32,960
Speaker 4: There will be two humanitarian corners allowing people to flee

12
00:00:33,000 --> 00:00:36,360
Speaker 4: the areas of hostilities in the northern part of Gaza.

13
00:00:36,640 --> 00:00:39,280
Speaker 3: It says it's a step in the right direction. Now.

14
00:00:39,479 --> 00:00:43,479
Speaker 3: President Joe Biden says still seeing longer pauses for hostage releases,

15
00:00:43,520 --> 00:00:46,839
Speaker 3: and NSC spokesman John Kirby says it's something Israel does

16
00:00:46,920 --> 00:00:47,360
Speaker 3: need to do.

17
00:00:47,680 --> 00:00:50,920
Speaker 5: Israel has an obligation to fully comply with international law,

18
00:00:51,159 --> 00:00:53,600
Speaker 5: and we believe these pauses are a step in the

19
00:00:53,680 --> 00:00:57,160
Speaker 5: right direction, particularly to help ensure that civilians have an

20
00:00:57,160 --> 00:01:01,520
Speaker 5: opportunity to reach safer areas away from the active fighting.

21
00:01:01,840 --> 00:01:04,560
Speaker 3: Meanwhile, President Biden says aid for Israel and Ukraine is

22
00:01:04,640 --> 00:01:05,400
Speaker 3: part of the bargain.

23
00:01:05,640 --> 00:01:09,600
Speaker 5: We ought to be able to combine Ukraine and Israel.

24
00:01:09,680 --> 00:01:11,920
Speaker 2: We ought to be able and on opening discussion on

25
00:01:11,959 --> 00:01:13,000
Speaker 2: the board now.

26
00:01:13,120 --> 00:01:15,880
Speaker 3: Later in the day, a President met with UAW President

27
00:01:15,880 --> 00:01:19,160
Speaker 3: Sean Fain at auto industry workers pledging support in the

28
00:01:19,200 --> 00:01:22,199
Speaker 3: EV market. China is determined to dominate the elected vehicle

29
00:01:22,240 --> 00:01:26,319
Speaker 3: market by using unfair trade praxes, but I will not

30
00:01:26,680 --> 00:01:29,600
Speaker 3: let them, and the President then urged Congress to get

31
00:01:29,600 --> 00:01:33,080
Speaker 3: together on finding a funding bill solution with a deadline

32
00:01:33,120 --> 00:01:36,880
Speaker 3: approaching a week from Saturday. And along that line, Bloomberg's

33
00:01:36,880 --> 00:01:40,360
Speaker 3: sources are saying that newly minted Speaker Mike Johnson is

34
00:01:40,400 --> 00:01:44,160
Speaker 3: having real problems doing that still within his own party

35
00:01:44,200 --> 00:01:47,240
Speaker 3: finding a package. He reportedly planned to release a plan

36
00:01:47,319 --> 00:01:50,760
Speaker 3: as early as today, but intense fighting which today he's

37
00:01:50,760 --> 00:01:54,160
Speaker 3: not been able to resolve, has delayed, and Senator Joe

38
00:01:54,280 --> 00:01:56,240
Speaker 3: Manchin says yeah, he's tired of all of it and

39
00:01:56,320 --> 00:01:59,280
Speaker 3: will not run for Senate reelection. He says he will

40
00:01:59,320 --> 00:02:03,080
Speaker 3: travel the country in an effort to unite Americans.

41
00:02:03,600 --> 00:02:06,640
Speaker 6: I know our country isn't as divided as Washington wants

42
00:02:06,680 --> 00:02:12,639
Speaker 6: us to believe. We share common values of family, freedom, democracy, dignity,

43
00:02:13,000 --> 00:02:16,560
Speaker 6: and a belief that together we can overcome any challenge.

44
00:02:17,160 --> 00:02:19,360
Speaker 6: We need to take back America and not let this

45
00:02:19,480 --> 00:02:22,399
Speaker 6: divisive hatred further POLUS Apartment.

46
00:02:22,480 --> 00:02:26,200
Speaker 3: So the political question then, is is there a hidden storyline?

47
00:02:26,800 --> 00:02:29,240
Speaker 3: Is he testing the waters to see if there's a

48
00:02:29,280 --> 00:02:32,440
Speaker 3: possibility of a third ticket run for president? He'll be

49
00:02:32,520 --> 00:02:36,880
Speaker 3: interested in A new Bloomberg Morning Consult pull out today

50
00:02:36,960 --> 00:02:41,560
Speaker 3: regarding swing states shows Donald Trump carrying all but one

51
00:02:41,639 --> 00:02:45,080
Speaker 3: of those swing states and overall forty one percent of

52
00:02:45,120 --> 00:02:49,400
Speaker 3: the vote to Biden's thirty five. Bloomberg's Michael Shepherd says,

53
00:02:49,760 --> 00:02:51,360
Speaker 3: the real message here.

54
00:02:51,320 --> 00:02:54,720
Speaker 1: And it would rather see two other people heading the

55
00:02:54,760 --> 00:02:56,959
Speaker 1: top of each party's ticket come next year.

56
00:02:57,240 --> 00:03:01,760
Speaker 3: And swing state voters also want us the southern US border.

57
00:03:02,080 --> 00:03:05,680
Speaker 3: They say they want it given greater priority than foreign policies,

58
00:03:05,720 --> 00:03:10,480
Speaker 3: including the mid East and Ukraine. Global News twenty four

59
00:03:10,520 --> 00:03:12,800
Speaker 3: hours a day, whenever you want it with Bloomberg News

60
00:03:12,800 --> 00:03:15,040
Speaker 3: Now in San Francisco. I'm at Baxter.

61
00:03:15,360 --> 00:03:18,800
Speaker 1: This is Bloomberg Chair J Powell says that the Federal

62
00:03:18,800 --> 00:03:22,359
Speaker 1: Reserve is not fully confident that it has tightened monetary

63
00:03:22,400 --> 00:03:26,000
Speaker 1: policy enough to return inflation to the two percent target.

64
00:03:26,040 --> 00:03:28,680
Speaker 1: Here's pal speaking it an IMF conference in Washington.

65
00:03:29,080 --> 00:03:32,119
Speaker 4: If it becomes appropriate to tighten policy further, we will

66
00:03:32,160 --> 00:03:35,800
Speaker 4: not hesitate to do so. We will continue to move carefully, however,

67
00:03:36,080 --> 00:03:39,320
Speaker 4: allowing us to address both the risk of being misled

68
00:03:39,480 --> 00:03:41,880
Speaker 4: by a few good months of data and the risk

69
00:03:41,920 --> 00:03:42,720
Speaker 4: of overtightening.

70
00:03:43,920 --> 00:03:48,400
Speaker 1: US stocks fell and treasure yields rows after Palace comments. Separately,

71
00:03:48,480 --> 00:03:52,800
Speaker 1: Atlanta FED President Raphael Bostik said that there's probably no

72
00:03:52,960 --> 00:03:57,680
Speaker 1: need to tighten monetary policy more so, clearly a different

73
00:03:57,760 --> 00:04:01,000
Speaker 1: sort of view, and his Richmond counter part, Thomas Barkin

74
00:04:01,120 --> 00:04:04,000
Speaker 1: said it's too early to tell. They'll both agree that

75
00:04:04,040 --> 00:04:06,680
Speaker 1: the full impact from interest rate hikes has yet to

76
00:04:06,720 --> 00:04:07,200
Speaker 1: be filed.

77
00:04:07,400 --> 00:04:11,000
Speaker 2: Well Earlier today, US Treasury Secretary Janet Yellen and the

78
00:04:11,120 --> 00:04:14,480
Speaker 2: Chinese Vice Premier Holy Funk kicked off their two day meeting.

79
00:04:14,600 --> 00:04:17,120
Speaker 2: This marks the next step in a series of talks

80
00:04:17,640 --> 00:04:20,240
Speaker 2: aimed at improving ties between the US and China. Now.

81
00:04:20,360 --> 00:04:23,640
Speaker 2: Yellen said the talks will include, or did include, or

82
00:04:23,720 --> 00:04:28,560
Speaker 2: are including, discussions that the increased use of security measures

83
00:04:28,800 --> 00:04:32,200
Speaker 2: really needs to be considered when you're talking about commercial relations.

84
00:04:32,360 --> 00:04:34,440
Speaker 2: Here's Bloomberg's and the current.

85
00:04:34,680 --> 00:04:38,520
Speaker 7: Protection of IP you know, and protection of technologies and

86
00:04:38,720 --> 00:04:41,160
Speaker 7: area's national security. All of these points. Missy Allen has

87
00:04:41,200 --> 00:04:43,760
Speaker 7: proven to be just as holkish as authers on. But

88
00:04:43,839 --> 00:04:46,000
Speaker 7: she's trying to weave this line that the two economies

89
00:04:46,120 --> 00:04:48,919
Speaker 7: can also continue to do business together. China, of course,

90
00:04:48,960 --> 00:04:52,280
Speaker 7: pushes back on this idea. They are though, given the

91
00:04:52,360 --> 00:04:55,000
Speaker 7: slowdown in Shaanna's economy, given the real estate busts, and

92
00:04:55,120 --> 00:04:57,880
Speaker 7: given the kind of negative sentiment on foreign investment in China,

93
00:04:58,040 --> 00:04:59,600
Speaker 7: there is a view that China is kind of back

94
00:04:59,640 --> 00:05:01,880
Speaker 7: on the mar market first of investment again, and that's

95
00:05:01,920 --> 00:05:04,200
Speaker 7: partly why they do want to shy and stabilize relations

96
00:05:04,200 --> 00:05:05,279
Speaker 7: with the US as well.

97
00:05:05,400 --> 00:05:07,840
Speaker 2: That is Bloomberg Zenda Kerrent. By the way, you could

98
00:05:07,839 --> 00:05:11,760
Speaker 2: also say that the talks between Yellen and holy Fung

99
00:05:11,760 --> 00:05:13,640
Speaker 2: are designed to help lay a little bit more of

100
00:05:13,640 --> 00:05:16,920
Speaker 2: the groundwork for that expected meeting next week between Presidents

101
00:05:16,960 --> 00:05:19,840
Speaker 2: Biden and She. The two will be in San Francisco

102
00:05:20,040 --> 00:05:23,400
Speaker 2: for the Asia Pacific Economic Cooperation Summit, and you know,

103
00:05:23,480 --> 00:05:25,720
Speaker 2: this is going to be the first time Biden and

104
00:05:25,800 --> 00:05:29,520
Speaker 2: She have spoken with one another in person in nearly

105
00:05:29,560 --> 00:05:29,960
Speaker 2: a year.

106
00:05:30,279 --> 00:05:35,839
Speaker 1: Ran Nvidia will release three new artificial intelligence chips for China,

107
00:05:35,920 --> 00:05:37,719
Speaker 1: Bloomberg's and Kates as more.

108
00:05:38,000 --> 00:05:41,760
Speaker 8: According to state affiliated news outlet China Star Market. Navidia

109
00:05:41,800 --> 00:05:44,040
Speaker 8: developed the AI chips based on the design of its

110
00:05:44,040 --> 00:05:47,120
Speaker 8: flagship H one hundred product, and Chinese firms are likely

111
00:05:47,160 --> 00:05:49,880
Speaker 8: to take delivery over the next few days. Navidia took

112
00:05:49,920 --> 00:05:52,840
Speaker 8: ahead after the Biden administration last month stepped up efforts

113
00:05:52,880 --> 00:05:55,680
Speaker 8: to keep advanced chips out of China, the world's largest

114
00:05:55,680 --> 00:05:59,200
Speaker 8: semiconductor market. Intel also plans to release a new AI

115
00:05:59,279 --> 00:06:02,640
Speaker 8: chip for China in Washington and Kate's Bloomberg Radio.

116
00:06:03,560 --> 00:06:06,680
Speaker 2: We go to China next. The Industrial and Commercial Bank

117
00:06:06,720 --> 00:06:10,120
Speaker 2: of China this is ICBC. The bank was hit by

118
00:06:10,120 --> 00:06:13,839
Speaker 2: a cyber attack and the effects were felt far and wide.

119
00:06:13,880 --> 00:06:16,719
Speaker 2: Here's Bloomberg's were Shad Salamet with more from Hong Kong.

120
00:06:17,320 --> 00:06:20,240
Speaker 9: The hack forced clients of what is the world's largest

121
00:06:20,279 --> 00:06:23,520
Speaker 9: bank to reroute transactions. A large number of trades in

122
00:06:23,640 --> 00:06:27,400
Speaker 9: US treasuries were prevented from being cleared. It left brokers

123
00:06:27,440 --> 00:06:29,960
Speaker 9: and traders scrambling to US As the extent of the

124
00:06:30,000 --> 00:06:32,799
Speaker 9: impact of the cyber attack, there are reports of liquidity

125
00:06:32,800 --> 00:06:35,760
Speaker 9: being affected, and speculation continues to mount that the issues

126
00:06:35,800 --> 00:06:38,719
Speaker 9: were a catalyst for a very poor auction of thirty

127
00:06:38,800 --> 00:06:42,040
Speaker 9: year bonds. So to say, ICBC alerted clients that trading

128
00:06:42,400 --> 00:06:45,800
Speaker 9: was being impacted. This is a state owned bank which

129
00:06:45,800 --> 00:06:48,720
Speaker 9: said that its US subsidiary appears to also have been affected.

130
00:06:49,200 --> 00:06:52,560
Speaker 9: ICBC is set of hired cybersecurity for Mandant and has

131
00:06:52,600 --> 00:06:55,720
Speaker 9: been offered assistance from the FBI in Hong Kong. I'm

132
00:06:55,800 --> 00:06:57,640
Speaker 9: Rashad salamat Bloomberg Radio.

133
00:06:57,720 --> 00:07:00,160
Speaker 2: So we are told the gang known as locke Bit

134
00:07:00,600 --> 00:07:03,640
Speaker 2: is suspected to have orchestrated a ransomware attack against the

135
00:07:03,720 --> 00:07:06,960
Speaker 2: US unit device CBC. This is the same group, by

136
00:07:07,000 --> 00:07:10,680
Speaker 2: the way, that has just this past year hit companies

137
00:07:10,720 --> 00:07:14,000
Speaker 2: like Boeing, Ion Trading in the UK and the UK's

138
00:07:14,080 --> 00:07:15,440
Speaker 2: Royal Mail Brian.

139
00:07:16,200 --> 00:07:19,000
Speaker 1: In some other news, China's top chip maker Smick Cash

140
00:07:19,080 --> 00:07:23,640
Speaker 1: reported quarterly sales below endless estimates. Bloomberg's Joan Wong has

141
00:07:23,680 --> 00:07:24,240
Speaker 1: more from.

142
00:07:24,160 --> 00:07:28,080
Speaker 10: Hong Kong smcsaw revenue fall for the third street quarter

143
00:07:28,360 --> 00:07:31,960
Speaker 10: that reflects lowing smartphone sales and global trading curbs. The

144
00:07:32,000 --> 00:07:35,320
Speaker 10: Shanghai company reported at fifteen percent fall in revenue to

145
00:07:35,440 --> 00:07:38,680
Speaker 10: one point six two billion dollars versus estimates of one

146
00:07:38,760 --> 00:07:42,200
Speaker 10: point sixty four billion. Net income fell eighty percent to

147
00:07:42,320 --> 00:07:46,040
Speaker 10: ninety four million dollars, barely half of estimates. The myth

148
00:07:46,080 --> 00:07:48,559
Speaker 10: comes despite hopes that a new line of five Chiese

149
00:07:48,560 --> 00:07:53,040
Speaker 10: smartphones from Huawei would help offset lost sales. Huawei itself

150
00:07:53,080 --> 00:07:56,200
Speaker 10: recently showed signs of resuming growth, but those hopes were

151
00:07:56,200 --> 00:07:59,920
Speaker 10: derailed somewhat after the US expanded curbs on China's chipsect

152
00:08:00,000 --> 00:08:03,560
Speaker 10: our last months. Smiccs better times ahead with the return

153
00:08:03,600 --> 00:08:06,360
Speaker 10: to growth in the December quarter, but that hinges on

154
00:08:06,400 --> 00:08:09,720
Speaker 10: whether or not the US implements further sanctions. In Hong

155
00:08:09,800 --> 00:08:11,360
Speaker 10: Kong joined Wong Bloomberg Radio.

156
00:08:11,560 --> 00:08:15,480
Speaker 2: In Japan, SoftBank Group's flagship Vision Fund reported a loss

157
00:08:15,480 --> 00:08:18,040
Speaker 2: of one point seven billion dollars. That's through the end

158
00:08:18,120 --> 00:08:21,200
Speaker 2: of September. The company was hurt by a drop in

159
00:08:21,320 --> 00:08:25,240
Speaker 2: valuations at we work in some other portfolio companies, and

160
00:08:25,320 --> 00:08:29,240
Speaker 2: that comes on top of losses ian the foreign exchange.

161
00:08:29,600 --> 00:08:33,720
Speaker 2: All of that could hurt SoftBank CEO Masayoshi Sun's pursuit

162
00:08:33,760 --> 00:08:36,720
Speaker 2: of some new startup deals. Sun has made a series

163
00:08:36,720 --> 00:08:41,360
Speaker 2: of bets this year on autonomous technologies, particularly in transportation

164
00:08:41,720 --> 00:08:45,520
Speaker 2: and logistics. Brian Doug, thanks very much.

165
00:08:45,800 --> 00:08:49,000
Speaker 1: This is Bloomberg day Break Asia, eleven minutes past the hour.

166
00:08:49,080 --> 00:08:52,840
Speaker 1: I'm Brian Curtis along with Vonnie Quinn. Many thanks to Doug.

167
00:08:52,960 --> 00:08:56,079
Speaker 1: Joining us now on the area is Michael McKee, Bloomberg

168
00:08:56,120 --> 00:09:01,440
Speaker 1: International Economics and Policy Correspondent. So first a poor thirty

169
00:09:01,480 --> 00:09:04,280
Speaker 1: year bond auction with a bigger impact on the market,

170
00:09:04,320 --> 00:09:08,720
Speaker 1: and then Powell tilting a little more hawkish, Mike. It's

171
00:09:08,720 --> 00:09:10,880
Speaker 1: said that Powell's words are actually more or less the

172
00:09:10,920 --> 00:09:14,080
Speaker 1: same as the scripted words that he had back on

173
00:09:14,120 --> 00:09:18,480
Speaker 1: November first, but that he was a little less hawkish

174
00:09:18,520 --> 00:09:21,320
Speaker 1: in the news conference with folks like you and others

175
00:09:21,920 --> 00:09:26,080
Speaker 1: popping questions to him. In any case, the Fed is

176
00:09:26,120 --> 00:09:29,680
Speaker 1: on pause at the moment, are they? I mean, what

177
00:09:29,720 --> 00:09:31,360
Speaker 1: would it take for them to go off pause?

178
00:09:33,160 --> 00:09:35,400
Speaker 11: Well, we have asked that question a number of times

179
00:09:35,559 --> 00:09:38,679
Speaker 11: and we don't get a good answer. Probably what it

180
00:09:38,720 --> 00:09:42,400
Speaker 11: would take is a sustained rise in inflation, and by

181
00:09:42,400 --> 00:09:45,960
Speaker 11: that I mean the CPI or PCE rising for several

182
00:09:45,960 --> 00:09:49,160
Speaker 11: months in a row and the Fed getting the impression

183
00:09:49,440 --> 00:09:53,360
Speaker 11: that inflation is no longer heading down. I mean they

184
00:09:53,880 --> 00:09:57,520
Speaker 11: expected to be bumpy, so they think maybe a month here,

185
00:09:57,679 --> 00:10:01,240
Speaker 11: a month there, you might see a jump higher, but

186
00:10:02,120 --> 00:10:05,800
Speaker 11: if it continues to go higher, then they will have

187
00:10:05,920 --> 00:10:08,040
Speaker 11: more work to do. They'll also keep an eye on

188
00:10:08,160 --> 00:10:12,800
Speaker 11: inflation expectations, both in the markets and on the consumer side,

189
00:10:13,200 --> 00:10:16,119
Speaker 11: to make sure that those don't start to come unmoored.

190
00:10:16,240 --> 00:10:18,440
Speaker 11: At this point, there's no sign that this is going

191
00:10:18,520 --> 00:10:22,360
Speaker 11: to happen, but they don't want the markets anticipating that

192
00:10:23,840 --> 00:10:27,160
Speaker 11: they are done yet. Even if they are done and we.

193
00:10:27,120 --> 00:10:30,680
Speaker 12: Get November Preliminary University of Michigan tomorrow morning or in

194
00:10:30,679 --> 00:10:35,280
Speaker 12: the Friday session, Michael he did downplay inflation expectations at

195
00:10:35,320 --> 00:10:37,679
Speaker 12: the last meeting a little bit, almost rebuffing the idea

196
00:10:37,760 --> 00:10:40,600
Speaker 12: that had been permeating from a previous meeting that umish

197
00:10:41,000 --> 00:10:43,960
Speaker 12: was quite important. Should we read anything into that, I mean,

198
00:10:44,000 --> 00:10:46,040
Speaker 12: if we saw a bump tomorrow, for example, or in

199
00:10:46,080 --> 00:10:48,440
Speaker 12: the Friday session, would that make a difference.

200
00:10:49,800 --> 00:10:53,960
Speaker 11: It's not going to make a difference. The numbers go

201
00:10:54,120 --> 00:10:55,880
Speaker 11: up and down a little bit, and they went up

202
00:10:55,920 --> 00:11:00,679
Speaker 11: significantly in the last month, and it is sort of

203
00:11:00,760 --> 00:11:05,360
Speaker 11: in congruous that their rise didn't elicit the same kind

204
00:11:05,400 --> 00:11:09,040
Speaker 11: of movement that it did a year ago when he

205
00:11:09,080 --> 00:11:11,480
Speaker 11: said that one of the reasons the FED was moving

206
00:11:11,640 --> 00:11:16,080
Speaker 11: was because of the Michigan survey. But the biggest issue

207
00:11:16,160 --> 00:11:20,160
Speaker 11: right now, Bonnie, is that we're essentially almost six weeks

208
00:11:20,160 --> 00:11:22,800
Speaker 11: away from the next stead meeting, and there'll be several

209
00:11:23,440 --> 00:11:27,600
Speaker 11: Michigan surveys, There'll be several CPI reports and PSEE reports

210
00:11:27,640 --> 00:11:30,000
Speaker 11: and other jobs report a lot of data yet to

211
00:11:30,040 --> 00:11:33,160
Speaker 11: come before they have to make a decision. So any

212
00:11:33,240 --> 00:11:36,040
Speaker 11: individual data point right now isn't going to make a

213
00:11:36,240 --> 00:11:39,680
Speaker 11: huge amount of difference to the FED. Might make a

214
00:11:39,679 --> 00:11:41,920
Speaker 11: difference in day to day trading in the markets, but

215
00:11:42,400 --> 00:11:43,040
Speaker 11: not at the FED.

216
00:11:44,160 --> 00:11:46,079
Speaker 1: Let me ask you about the thirty year bond auction.

217
00:11:46,760 --> 00:11:50,599
Speaker 1: We understand that, you know, the reaction was poor and

218
00:11:50,880 --> 00:11:53,320
Speaker 1: the buyers weren't there to the extent that some thought

219
00:11:53,360 --> 00:11:55,959
Speaker 1: they would be, and so yields shot up. But then

220
00:11:55,960 --> 00:12:00,000
Speaker 1: we heard about the ICBC hack, and I'm just wonder

221
00:12:00,240 --> 00:12:02,280
Speaker 1: did that change things at all, because it doesn't seem

222
00:12:02,360 --> 00:12:03,960
Speaker 1: like it did. It seemed like rates went up and

223
00:12:03,960 --> 00:12:06,520
Speaker 1: stayed up even once you knew that it was a hack,

224
00:12:06,559 --> 00:12:07,760
Speaker 1: and that may have affected things.

225
00:12:09,040 --> 00:12:12,840
Speaker 11: Yeah, it's not clear to what extent, if any the

226
00:12:12,920 --> 00:12:18,160
Speaker 11: hack of ICBC made a difference in the auction. Most

227
00:12:18,280 --> 00:12:21,160
Speaker 11: bond professionals are looking at that auction and saying it

228
00:12:21,280 --> 00:12:24,680
Speaker 11: was a disappointment, but it wasn't necessarily a surprise because

229
00:12:24,679 --> 00:12:27,360
Speaker 11: the Fed is in the treasury rather is coming to

230
00:12:27,440 --> 00:12:30,440
Speaker 11: market with an awful lot of paper. This is the

231
00:12:30,480 --> 00:12:34,520
Speaker 11: third coupon auction this week, following a whole bunch of

232
00:12:34,920 --> 00:12:38,680
Speaker 11: bill auctions, and someone asked to buy all that since

233
00:12:38,720 --> 00:12:41,600
Speaker 11: the Fed's no longer buying it, and there just isn't

234
00:12:41,679 --> 00:12:45,959
Speaker 11: as much interest. The US, being the world's deepest, the

235
00:12:46,480 --> 00:12:50,400
Speaker 11: most liquid, safest bond market, is always going to sell

236
00:12:50,520 --> 00:12:52,680
Speaker 11: its paper. It's just going to be a question of

237
00:12:52,760 --> 00:12:55,480
Speaker 11: at what price. And today we saw that come true.

238
00:12:55,679 --> 00:13:00,040
Speaker 11: The people who generally buy thirty years pension funds and

239
00:13:01,600 --> 00:13:06,600
Speaker 11: insurance companies, they didn't want to pay the price that

240
00:13:06,800 --> 00:13:10,160
Speaker 11: was being asked, and so there had to be concessions

241
00:13:10,160 --> 00:13:12,520
Speaker 11: on the price, and we saw yields rise.

242
00:13:13,240 --> 00:13:16,679
Speaker 12: Yeah, Michael, how is the FED judging financial conditions right now?

243
00:13:16,720 --> 00:13:19,400
Speaker 12: I mean, in some cases, or at least yesterday, they

244
00:13:19,400 --> 00:13:22,200
Speaker 12: were looser than they had been and they had gotten

245
00:13:22,200 --> 00:13:25,600
Speaker 12: pretty tight. But we're seeing yields bounce around like yo Yo's.

246
00:13:27,360 --> 00:13:30,760
Speaker 11: Yeah, the FED is kind of looking past that right

247
00:13:30,800 --> 00:13:34,440
Speaker 11: now because it recognizes the volatility in the markets and

248
00:13:34,480 --> 00:13:38,160
Speaker 11: how the market's being buffeted by a lot of things

249
00:13:38,320 --> 00:13:42,720
Speaker 11: at the moment. If you go on your Bloomberg terminal

250
00:13:42,800 --> 00:13:45,480
Speaker 11: and you look at one of the financial condition indexes

251
00:13:45,840 --> 00:13:48,599
Speaker 11: as many of those, or even just look at the

252
00:13:48,720 --> 00:13:52,440
Speaker 11: ten year yield, and you're looking at the last three months,

253
00:13:53,600 --> 00:13:56,520
Speaker 11: it looks like we've retraced a lot. But if you

254
00:13:56,559 --> 00:14:02,480
Speaker 11: go back full year we've been we're still significantly tighter

255
00:14:02,640 --> 00:14:06,400
Speaker 11: and rates are still significantly higher than they were, say

256
00:14:07,040 --> 00:14:11,520
Speaker 11: June May. So at this point it's a bit of

257
00:14:11,520 --> 00:14:14,520
Speaker 11: a retracement, but it is not a complete retracement, and

258
00:14:14,559 --> 00:14:16,839
Speaker 11: so the FED is not too worried about it as

259
00:14:16,840 --> 00:14:19,840
Speaker 11: long as the trade is clear, and we have that

260
00:14:19,960 --> 00:14:23,200
Speaker 11: issue with ICBC today, But other than that, as long

261
00:14:23,200 --> 00:14:24,880
Speaker 11: as the trade is clear, the FED is happy.

262
00:14:26,200 --> 00:14:28,800
Speaker 1: The reason I asked you the first question was because

263
00:14:28,840 --> 00:14:32,760
Speaker 1: you're so you're so rational, and you're always right, and

264
00:14:33,520 --> 00:14:36,760
Speaker 1: it's the data that matters, not what Powell really says.

265
00:14:36,960 --> 00:14:39,800
Speaker 1: And I wonder why why does Powell feel I mean,

266
00:14:39,840 --> 00:14:43,680
Speaker 1: the market, the bond market's a multi trillion dollar beast,

267
00:14:44,120 --> 00:14:47,360
Speaker 1: and it's reacting to the data. And if it's dropping yields,

268
00:14:47,520 --> 00:14:50,120
Speaker 1: then it's dropping yields. Why does he feel he has

269
00:14:50,160 --> 00:14:52,040
Speaker 1: to come out and tell the market what it should do.

270
00:14:53,600 --> 00:14:56,600
Speaker 11: Well, I'm glad you think I'm always right, and I

271
00:14:56,640 --> 00:14:58,480
Speaker 11: hope you'll pass dialog to our bosses.

272
00:14:58,920 --> 00:14:59,440
Speaker 1: Yeah, they know.

273
00:15:01,680 --> 00:15:03,840
Speaker 11: The Fed doesn't want the market to get too far

274
00:15:03,920 --> 00:15:08,480
Speaker 11: out ahead, because then sometimes perceptions can become realities, and

275
00:15:08,600 --> 00:15:11,000
Speaker 11: if the market goes too far with yields, then the

276
00:15:11,040 --> 00:15:12,480
Speaker 11: Fed might be stuck.

277
00:15:13,720 --> 00:15:16,600
Speaker 1: This is Bloomberg Daybreak Asia, your morning brief on the

278
00:15:16,640 --> 00:15:20,320
Speaker 1: story's making news from Hong Kong to Singapore and Wall Street.

279
00:15:20,400 --> 00:15:24,440
Speaker 2: Look for us on your podcast feed every day, on Apple, Spotify,

280
00:15:24,680 --> 00:15:26,800
Speaker 2: and anywhere else you get your podcasts.

281
00:15:26,840 --> 00:15:29,480
Speaker 1: You can also listen live each day on Bloomberg eleven

282
00:15:29,520 --> 00:15:31,920
Speaker 1: three to zero in New York, Bloomberg ninety nine to

283
00:15:31,920 --> 00:15:35,120
Speaker 1: one in Washington, Bloomberg one oh sixty one in Boston,

284
00:15:35,440 --> 00:15:37,960
Speaker 1: and Bloomberg nine sixty in San Francisco.

285
00:15:38,120 --> 00:15:41,000
Speaker 2: Our flagship New York station is also available on your

286
00:15:41,040 --> 00:15:46,120
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

287
00:15:45,960 --> 00:15:49,120
Speaker 1: Plus listen coast to Coast on the Bloomberg Business app,

288
00:15:49,440 --> 00:15:53,720
Speaker 1: Sirius XM, the iHeartRadio app, and on Bloomberg dot Com.

289
00:15:53,960 --> 00:15:55,480
Speaker 1: I'm Brian Curtis.

290
00:15:55,240 --> 00:15:57,680
Speaker 2: And I'm Doug Krisner. Join us again tomorrow for all

291
00:15:57,680 --> 00:16:00,240
Speaker 2: the news you need to start your day right year

292
00:16:00,280 --> 00:16:01,640
Speaker 2: on Bloomberg day Break Asia.

293
00:16:08,680 --> 00:16:09,200
Speaker 6: Mm hmm