Good morning.
I'm Richard Salamath and I'm Doug Krisner. Here are the stories we're following today.
As we talk about inflation.
We get that key CPI print and Wednesday morning, and traders gearing up for that. It could, of course provide more clues on what the Federal Reserve does do next, But Mags Michael McKee, aw's a preview.
Investors have already priced for a rise in headline inflation, largely led by energy prices. The FED can't affect those, so there's no anticipation the CPI will lead to a rate rise at next week's meeting. Instead, the focus will be on the core inflation rate. It's forecast to drop, suggesting the Central Bank is still making progress. Within the report, analysts will be looking primarily at housing prices rents. After a long period pushing inflation up, they are expected to decelerate.
Fed officials, of course, will also be looking at core service prices x housing for signs that wage growth is slowing, even though Wall Street commissions have pushed that category higher in recent months. Michael McKee Bloomberg Radio.
We go next to Apple and the unveiling of four new iPhone models. That happened today. These new models include the iPhone fifteen, fifteen Plus, fifteen Pro, and fifteen Pro Max. Now, Apple's new Promax model will have a hefty price tag eleven hundred and ninety nine dollars. You know, that's up
one hundred bucks from last year. Apple is banking on some new materials along with improved performance as a way of trying to win over consumers in a market that has been a little sluggish where a smartphone demand is concerned. Here is bloomberg' ed Ludlow.
What we know is that, as expected, we have two variants of the base model iPhone fifteen, a six point one inch screen and a six point seven inch screen. Both of them get the Dynamic Island, which is the top sliver of the screen, a more interactive display that displays more information. The big news so far on the low end iPhone fifteen is the upgrades to the camera
forty eight megapixel. The iPhone fourteen non Pro versions a year ago had twelve megapixel, so that's a pretty substantive up great on the camera technology.
That is Bloomberg sed Ludlow. By the way, as of Friday, Apple will begin taking pre orders for these latest iPhones in more than forty countries.
Rashad, Right, Well, we've got to stay with tech ands.
We've got the first anti trust trial pitting the federal government against a major tech company getting underway in Washington. Bloomberg's Nathan Hager has more from DC.
The case is United States versus Google. The Justice Department is accusing Alphabet's search Giant of paying more than ten billion dollars a year to maintain its position as the default search engine on the web and mobile devices. Federal prosecutors say Google has been a monopoly for more than a decade and controls more than eighty nine percent of the online search market. Google denies the government's claims. US District Judge Ahmed Meta is expected to issue a decision
next year in Washington. I'm Nathan Hager Bloomberg Radio.
We go to the oil market next, and the latest data from OPEC plus showing global oil markets will face a supply shortfall of more than three million barrels a day in the next quarter. Now, this obviously comes after both Saudi Arabia and Russia decided to extend their production cuts until the end of twenty twenty three. Now, today's news did send oil prices surging WTI. We talked about it rising today by around one point eight percent. Brent crude back above ninety two a barrel. We heard earlier
today from Francisco Blanche. He is the head of Global Commodities and Derivatives at Bank of America. He thinks Saudi Arabia and OPEC plus will become more cautious if prices continue to rise.
Well, I think that the solvies have always been very cautious about avoiding demand destruction episodes, and certainly I think they will become cautious again if prices break through one hundred dollars a barrel, because, as we saw last year with gas, with nature gas, if prices do get out of whack, you can loose all the demand European nature gas demand from industry, remember is lowered today than it was at this last year with a ninety percent declining
priceis so you have to be careful what you wish for.
Francisco Blanche there from Bank of America. By the way, the International Energy will report its outlook on Wednesday.
All right, We're going to stay with oil companies and have a look at BPCO Bernard Looney because he's resigned effective immediately. The companies saying that the Luney didn't fully disclose personal relationships. The surprise development leaving the oil and gas giant leader is at a crucial juncture. BPS started to persuade investors to stick with it through a costly transition to low carbon energy.
We heard more from Bloomberg's Alex Steele.
Looney had made the point that they were going to be investing less and less and less in oil and gas. But as the returns for alternative energy got worse and worse and worse, they cannot live up the returns that you're going to get in an oil and gas field. So we had to pair back some of that lack of investment.
That is Bloomberg's Alex Steel.
Now, BP didn't name any potential successor to Luni, but the chief financial officer will replace him on an interim basis. That's some ochinlos BP typically has chosen CEOs from among the ranks of its own top executives.
We go to China, next to where home sales in the country seem to be losing momentum, even though authorities recently loosened restrictions on mortgages. Bloomberg zivon Men has more from Hong Kong.
Checks by industry watchers are saying that the rebound is fading in China's Tier one cities. In Beijing, sales of existing homes plunged thirty five percent in less than two weeks. That's according to one of China's top property agencies, cent A Line. Across China, transactions continue to drop follow more
than twenty percent by area. The Fatie rebound raises doubts on whether the steps are enough to revive the market before a crucial busy season, and kondomists say more aggressive easing measures may be needed to ensure a strong recovery in Hong Kong. I'm ivon Mann Bloomberg Radio.
The latest survey of global fund managers from Bank of America was very interesting. It shows a dramatic shift in investors' equity allocation, a rush toward the US and a huge exodit from emerging markets. EM equity allocation down in the month of September to net nine percent overweight. But here's the thing. We were net thirty four percent overweight in August. Now, this is largely a story about China and a lot of the negative pessimism or the negative sentiment that we
have seen there. In fact, this a BFA survey also shows the most likely source of any potential systemic credit event will be in the China real estate market. Daybreak Asia and an update on global news is next. We begin with US House Speaker Kevin McCarthy launching an impeachment probe in President Joe Biden at Baxter with more from the Bloomberg newsroom.
Yeah, that's exactly where Douglas McCarthy calls a Biden administration a culture of corruptions.
Else, Republicans have uncovered serious and credible allegations into President Biden's conduct, and together these allegations paint a picture of a culture of corruption.
Now, McCarthy says, we'll focus on sun Hunter.
I do not make this decision lightly, and regardless of your party or who you voted for, these facts should concern all Americans.
Center Majority of Leader Chuck Schumer says, while he feels for the pressure McCarthy's feeling from the right wing of his party, I.
Think the impeachment inquiry is absurd.
The American people want us to do something that will make their lives better not go off on these chases and witch hunts now.
Bloomberg's Wendy Benjaminson says, politically, his use of terms like witch.
Hunt Democrats who are saying this is a witch hunt and that this is how dare they do the inquiry without a full House vote ahead of time? And it's funny to watch one party see the other party using their own playbook against them.
No.
Republicans also have condemned Biden for what they call the weaponization of the Justice Department. New COVID formulated shots in the US have gotten a green light from the CDC Advisory Panel. The panel, recommending the full CDC itself recommend use for those six months and older, says it could allow the shots to be administered as early as this week. Now, of course, that will depend on individual healthcare providers getting
supply and scheduling appointments and those kinds of things. North Korean leader Kim jonghan has been meeting with Russian officials, presumably about an arms dealer, even though the US is warning against it. Brigadier General Patrick Ryder, speaking for the White House.
We would call on North Korea to meet its previous stated public commitments not to supply weapons to Russia, which will only end up prolonging the unnecessary war in Ukraine.
And Vladimir Putin is being quoted in Russian media saying war will continue for a while. Republican Senator Tommy Tubberville says he will continue to block the promotions of military people until the Biden administration removes the executive policy regarding DoD travel and reproductive rights. In an exclusive Bloomberg interview.
Twenty twenty three, they want to change it with a memo from the White House. We're not a communist country. Everything that's made policy and law goes through Congress. And I told them that if you change it, and I'm gonna block your admirals and generals. Well, at that time there was one or two. Now we're up to three hundred. I think they're starting to believe me that I meant what I said.
And on balance of power assess a solution simple, let's.
Just vote on it and if it passes, it passes, it doesn't.
It doesn't. Yeah.
Critics argue he's paralyzing The Pentagon Global News, powered by more than twenty seven hundred journalists and analysts in over one hundred and twenty countries in San Francisco. I'm Ed Baxter and this is Bloomberg.
Let's get to our guest, Belita Onng is with us. Belita is a chairman of Dalton Investments. She joins us from Santa Barbara, California. Belita, it's always a pleasure. Thank you for making time to chat with us. Maybe you had a chance to look at the Bank of America survey today of global fund managers. A big move away from emerging market right now? Is is that a strategy that you would adopt at the moment given the weakness that we have been describing for the Chinese economy.
Hello Doug, thanks for having me back. The movement, as you mentioned, has everything to do with China and the reducing of exposure to China, which was for decades an
extremely profitable place to invest in. You know, from our points of view, we've not invested since jack Ma was hauled in to be re educated, which is now now a few years ago, and simply because of the way we invest, we look for value companies that are led by entrepreneurs who's interests are aligned with ours, and in China, the most successful entrepreneur was punished for being too successful, and on top of that that was followed by the whole private tutoring shutdown. So one day you had a
great business in the next day was gone. So given those types of risks, it's just not a market that we can invest in. That's not to say that you can't make money in China. I don't believe that at all. I think you can. It's just not the way we do it because it doesn't fit with our investment criteria. And if we don't invest in China, then there are
many other places to invest in. So it's not as though being shout out of China is, you know, is a death knell to our investment capabilities across Asia.
But that you know, So there has been a kind of, I suppose, feeling that the regulatory clamp down has perhaps disappeared, but it can come back in any stage. But it cares you mentioned the other places you can invest and make money to where are you looking well?
We are still very positive on being able to add returns above the benchmark in both Japan as well as in India. And in Japan's largely to do with the fact that Japan's in there's a great spot right now where finally the economy is growing. Finally the deflation they've
suffered for decades seems to be reversing. So we finally saw a small increase in wages in the last and negotiations, and the boj is inclined I believe to continue to keep rates as low as possible through the next round of negotiations so that they can keep wage increases, thereby
fueling consumer spending for the economy. So it's sort of like opposite world in Japan, where with the rest of world's concerned about inflation, but Japan's been fighting deflation for so long that they won't give up that fight until they see that it's really well ensconced.
You were talking about the entrepreneurial spirit, and I'm wondering whether that applies to Vietnam. And the indication here is that there is some opportunity to grow for the local economy and technological terms, and I'm wondering whether that's a market that you would consider.
Yes, so certainly a market we would consider. In fact, we're in the process of getting access to that market now, because you need special access to be able to invest in the domestic market there, but it is a market that we think is becoming more and more interesting. And in the past when we have invested, we've done it through closed end funds, which are run by people we know well and which often traded a discount. But we're actually taking steps to invest directly ourselves. So yes, it's
a market that we find interesting. But in Japan, if I could go back to that, in addition to the fact that the economy is doing well, the cheap n makes car exports, for example, do extremely well. And you've got a lot of foreign inflows that we haven't seen in ages, which also helps with the domestic market. And on top of all that, you've had this finally you're seeing the results of eight nine years of corporate Governan's reform lead to much better behavior by managements in Japan.
Increase in buybacks, dividends, more m and A and more management buyouts. So you know, everything's going well for Japan right now.
Belita very quickly, so you do also away from Japan look at the I suppose de globalization d risking story.
Yes, absolutely, the de risking story is very good for certain countries India, for example. She's the prettiest girl of the dance. Everybody wants to work with her, Dance.
With her, the prettiest girl in the dance. We'll leave it there. Balita, always a pleasure. Balita on, Chairman of Dalton Investments. This is Bloomberg Day Break, a your morning brief on the stories making news from Hong Kong to Singapore and Wall Street.
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