Good morning. I'm Brian Curtis and I'm Doug Prisner. Here are the stories we're following today.
Officials in Kanters say that a short truce in the war between Israel and Hamas will begin on Friday morning. Let's get to Doug prisoner in New York with Global News.
Doug Brian at the beginning of this truth is it actually a day later than initially expected. Hamas is set to free fifty hostages, while Israel intends to release one hundred and fifty jailed Palestinians. All two hundred will be women and children. Now, Israeli Prime Minister Benjaminette Yahoo was saying he's still confident on freeing all of the roughly two hundred and forty people abducted by Hamas last month.
Bloomberg's owner Aunt says the possibility of releasing more prisoners is already part of the agreement.
That idea has already been built in to the current truce agreement. So if after the release of fifty Israelis hostages, Hamas decides to release or agrees to releasing more for ten hostages, it gets another day of extension to the truth so that idea is also already there and obviously it was one of the main driving forces when Katar and others mediated the seal.
That is Bloomberg's owner Aunt. We go to the Netherlands, where politics is shifting to the far right. Populist Girt Wilders have won a huge election victory. Now he is in line to lead talks in the formation of a coalition government and the possibility of becoming the next Prime minister. Wilders as champion policies against immigration and Islam. Meantime, the most valuable company in the Netherlands ASML is calling for a reliable government and a consistent long term policy to
ensure an attractive business climate. ASML said, the availability of Dutch talent is not sufficient to meet current demand, and any restrictions on the amount of knowledge workers or international students relative or relevant, I should say for the tech industry is undesirable. New York City Mayor Eric Adams is being accused of sexually assaulting a woman back in nineteen
ninety three. A legal summons filed Wednesday is listing the defendants as Adams, the NYPDS Transit Bureau, and the department's Guardians Association. Adams was a police captain when the alleged assault took place. Speaking to reporters earlier today, the mayor said he's never met the woman who made the claim.
It's absolutely not true, you know, I would, I would never do anything to harm anyone. My career speaks for itself, and just really is something absolutely that has never happened in.
That is a New York City Mayor Eric Adams. Now, the summons was filed under the New York Adult Survivors Act, if temporarily suspended the statute of limitations for sexual assault cases. Now, the accusation does come during the FBI's investigation into the mayor's twenty twenty one campaign financing. The World Health Organization is asking China for detailed information about a surge in respiratory illnesses among children, including pneumonia. Top pediatric medical centers
across China are being overwhelmed with patients. The resurgence comes as China heads into its first winter after easing COVID restrictions, and it appears children have been particularly hard hit. Global news twenty four hours a day and whenever you wanted with Bloomberg News. Now, I'm Doug Prisner in New York.
Brian Curtis and Paul Allen. Let's take a look at some of the top business stories now of the hour. Barklay's is said to be planning one point three billion dollars in cost cutting over the next several years. Bloomberg Sarah Livesey has details.
Reuter's reports as many as two thousand jobs are on the line. That's about two percent of the bank's workforce. Any job cuts are expected to come from Barclay's Execution Services, the unit that encompasses the group's back office. However, the lender could prioritize layoffs in other areas as well. Blays said it will provide an update alongside four year results in February. The bank's latest quarterly results were disappointing, prompting
a slide in its stock price. So far this year, Barclay's shares are down eleven and a half percent in New York. I'm Sarah Livesey Bloomberg Radio.
Germany will suspend the constitutional limits on new borrowing for a fourth consecutive year. This comes after Chancellor Left Schulz's government was forced into a radical budget overhaul by a ruling last week from the nation's top court. We've got more from Bloomberg's Zoe Schenevis Kristin Linnet.
The Finance Minister is a fiscal hawk, and he had said in twenty twenty three we're going back to the death break now that all would have been fine if it hadn't been that the way Germany was spending that money wasn't a way that was outside of the normal budget. That Constitutional court decision last week said that is not okay.
That's that you can't function like this. It's unconstitutional. So that means that they've spent all this money for twenty twenty three and it's late November at this stage, you can't get that money back in any other way.
It's Bloomberg's Zoe shanews. The emergency move to lift the so called debt break will be part of a revised twenty twenty three budget that will be presented next week. Brian Well.
Chinese regulators are eyeing unprecedented aid to developers to ease the property crisis. Bloomberg's David and Glace has more from Hong Kong we Here.
China may allow banks to offer unsecured short term loans to qualified developers for the first time. These so called working capital loans would offer funds for day to day operations. The loans are different from other types of debt that require land or assets as collateral. Earlier, we reported that authorities are finalizing this list of developers eligible for that aid. Sources say the list includes Country Garden and Sino Ocean Group.
Country Garden shares jump twenty four percent yesterday on word that it was included in that list. In Hong Kong, I'm David ingless.
Bloomberg Radio Openaie reinstated CEO Sam Altman this week after hunters of workers threatened to quit over the chet GPT creator's ouster. The move highlights just how much leverage the tech industry's most valued workers hold right now. With more on just how much they're valued is Bloomberg's Charlie Palette.
The most common salary range for an engineering job listed on OpenAI's website is between two hundred thousand and three hundred seventy thousand dollars, and Roger Lee, co founder of compensation benchmarking firm Comprehensive dot Io, says a handful of more specialized roles advertised ranges between three hundred thousand and four hundred and fifty thousand dollars and according to levels dot Fyi salary ranges do not include bonuses or stock awards,
which can bring an annual salary of three hundred thousand dollars closer to eight hundred thousand dollars in total compensation. In New York, Charlie Pellet Bloomberg Radio.
Well we've reached the unofficial start of the holiday shopping season. Bloomberg's Nancy Lyons has a preview of what we can expect on the retail front.
The National Retail Federation expects holiday spending in November and December to grow three to four percent compared to the same time last year.
J C.
Penny CEO Mark Rosen says consumers are spending more, but they're doing it wisely.
I think what you are going to see is that consumers are much more focused on value than they've ever been before, and we're seeing that in shopping behavior this year.
JC Penny CEO Mark Rosen, speaking on Bloomberg Television. The National Retail Federation estimates a record one hundred and eighty two million people plan to shop in store and online from Thanksgiving Day through Cyber Monday. I'm Nancy Lyons Bloomberg Radio.
Joining us live on the show is Barbara and Bernard, founder and CIO of Windcrest Capital, for a look at market. Sappy, thanksgiving, Barbara, and thanks for joining us. Well, we have a number of stories, as you probably heard there across the terminal this morning, looking at central banks, particularly in Asia, looking at starting to cut interest rates next year. Will the Fed join that party in the first half?
Well's certainly what the markets are pricing in, right and you know, the US market is pretty euphoric right now in anticipation of that. And I would just like to caution that if central banks are cutting rates, it's because inflation has fallen, and that's because demand has and that also means unemployment goes up, which hurts corporate profitability. So being giddy that we're getting lower rates and being and forgetting to be mindful of lower earnings seems it seems
a bit foolhardy to me. And so I think, I see I want to be cautious here and not joining the momentum trade.
Wow, does that mean bad news? Actually means bad news?
I think you have lower growth globally, right, and that's the whole point of raising rates was exactly that, and you're seeing it come through in earnings. You know, their long and variable lags. You look at a company like Deer who reported this week, and that's a stock that stay on this year, and they cited a weaker outlook on the back of lower crop prices, right, and higher interest rates impacting demand for tractors. And that's what you
would expect out of this environment. And so if the lags when we raised rates were long and variable, they will be when we cut rates too. So I think, you know, getting overly excited too soon and assuming that we'll just land this plane perfectly is really giving the FED a lot of credit.
You mentioned a little bit of euphoria in equity markets. If you look back over two years, though the S and P five hundred, and really most stocks in the S and P five hundred are actually lower than where they were at the end of twenty twenty one. So the euphoria, I suppose, is just here of late, but not necessarily if you take it back during that entire period.
I think it's an excellent point. You are absolutely right, since the index is no higher than it was at the end of twenty twenty one, it's been within this range of thirty five hundred to forty eight hundred, and it's been a trader's market as opposed to a long term value investors market right where you buy a compounder.
And what's done well is the megacaps, So an equally weighted index you know has not done anywhere near as well as as as the you know s and P five hundred the more concentrated and diseased this year, and that's a function that you're seeing globally. Small caps are trading at a discount to large caps, and the US small caps trade for eight point one times ev day, Badawar's large caps are at thirteen point six times, and you're similar eight versus eleven, Japan six point eight versus ten.
So what's happening is these big companies and these big indue keep getting bigger, and where you're finding more value is in these smaller cap companies that get forgotten and an orphaned if you will. But then you have to ask if what drives valuation these days as fun flows, what finds them? So it's a super tricky time.
At the same time, though we do have really high rates, is it just appealing to stay in cash and fixed.
Income against formidable headwinds. That's never a bad idea, right I would have some cash here. I like a five percent risk free rate. I also like private credit where I can, you know, develop infrastructure projects with twenty year PPAs where I don't have to worry about growth rates and interest rates next year. And so I think people are getting creative. And you know, if you want the index,
great by it. But if you want alpha, you're gonna have to do something different, and that's either you know, fallen angel stocks or creating alpha via private credit.
In my personal experience, private credit, by its very nature obviously is private. It's more difficult to access. I suppose for the average investor, can you give them a couple of ways to play that.
Well? In my case, I went and took a stake in a project developer so that I could develop my own projects. And what I like about this is I have more control over the outcome. And it's a really interesting arbitrage right now because you're talking about a higher rate environment. And the other thing that's emblematic of this time right now is people are saying it's really hard to raise equity it's not if you have a project that's in demand. If you have a grain hydrogen project
that is a double digit IRR for an investor. There are tons of large infrastructure funds who have raised capital looking for projects like that, and equally on the debt side, and these project perry up to eighty percent debt. There are a lot of banks that have allocated funds towards green product Jackson. They find can't find great ones to invest in. So if you can get concessionary debt rates in a higher rate environment, that's an arbitrage that'll take
all day long. And and I just this is you know, you have to get creative. There's always something to do, but it's typically not what the rest of the market is doing.
Barbara, and I just wanted to ask you kind of a quick follow. We've seen M and A and IPO activity be rather more of it this year. Do you expect yeah, opportunities coming next year.
I certainly hope. So. I have a number of pre IPO opportunities that have not come to market this year. And you know, the sign of a healthy capital market is a healthy IPO market. And you know, if you say market has done so well, in the rally, Well, why all these companies afraid to come to market? So I personally would come to market if I were them, And so I am hopeful for everyone in our industry that we will see a resurgence of IPO activity into
twenty twenty four. I noticed on your terminals today everyone's very excited about this, Goose sidebo.
This is Bloomberg Daybreak Asia, your morning brief on this story's making news from Hong Kong to Singapore and Wall Street.
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I'm Brian Curtis and I'm Doug Prisner. Join us again tomorrow for all the news you need to start your day right here on Bloomberg day Break Asia
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