The US Downs More Objects And Oil Retreats

And I'm Leanne Gern's plus a crude instrument. Oil prices retreat as slowdown concerns vy with Russian supply cuts. That's all straight ahead on Bloomberg Daybreak Europe. The business news you need to start your day in just one fifteen minute podcast on Apple, Spotify, the Bloomberg Business App and everywhere you get your podcasts. Good morning, I'm Stephen Carroll and I'm Caroline Heck. Here all the stories that we're

following today. Three objects have been shot down over North American airspace, and as many days in the wake of the downing of an alleged Chinese spy balloon over US territory. American aircraft shot down the latest object above like uron in Michigan on Sunday night. US Assistant Secretary of Defense Melissa Dalton says it's not yet clear what the latest

objects are. We have been more closely scrutinizing our airspace at these altitudes, including enhancing our radar, which may at least poorly explain the increase in objects that we've detected over the past week. One thing Dalton's department are clear on the first balloon spot It was a Chinese spy device, provoking a new round of tensions with baiging the incidents shining a spotlight on China's surveillance programs. Now Here in the UK, wage and inflation data are set to fuel

further Bank of England rate rises. Bloom Begs You and Pots report it's a key week for data on the UK economy. Two separate reports are expected to highlight the consumer prices are still rising at a double digit pace and the companies are increasing pay at the quickest pace

on records. The data will likely support hawkish policymakers at the Bank of England who want to keep their foot on the monetary break Elsewhere, Two separate surveys out today suggest businesses plan to cut hiring as the economic outlook darkens, but staff shortages mean they will pay record rates for the staff that they do need. The Chartered Institutes of Personnel and Development says that planned pay rises are running at the highest since the data started ten years ago.

Video's Business Trends survey reports that output fell for a second month, reaching levels associated with a shrinking economy. In London, immun Parts bloom Berg Daybreak Europe gave with Don's Conglomerates, has had its revenue growth targets and plans to hold off fresh capital expenditure. Bloomberg's Anabel Drulers says the group will now aim to grow by up to twenty for the next fun Until year earlier assumption had been for revenue growth of capital expenditure. That's also saying is going

to be scaled down now. So the priority is really just focusing on conserving cash or paying debt and also retrieving those pledge shares. Because even though Adning Group has denied those allegations in the Hindenburg research report, we still had that huge market reaction in turn, and the losses here north of a hundred billion dollars still off market cap raised. Annabel Drulia says the retreat as the marked turnaround for the tycoon and reflects the significant impact that

Hindenburg researchers report has had on the conglomorous. Now, the death toll across Syria and Turkey has risen to thirty five thousand people, with many more still unaccounted for. The head of the World Health Organization ted ross Adnam Gabrieus's has visited Syria's capital, Damascus and issued this appeal. We need to take response to the next level to reach both I thinks populations in areas. Dr ted Draw spoke about the disaster as Turkish authorities have stepped up their

investigation into the impact of potentially shod deconstruction work. A hundred and thirty four contractors have been investigated and at least three people have been arrested so far. A Turkish business group says that the economic losses from the quake could top eighty four billion dollars. Oil prices have retreated as concerns about slowing growth continue to offset Russia's plan to cut supply. Investors remain wary that the federal reserve

needs to keep pushing interest rates higher detained inflation. That's in spite of OPEC plus confirming that it won't boost production to fill in the outbook gap left by Moscow. Our top stories this morning, Yeah, absolutely, look more on the story around those floating objects not really even sure whether they're flying objects actually, and it follows, of course, the very first spy balloon that was shot down by

the u US, alleged Chinese spy balloon. These objects, of course, have got a lot of attention because I've been shut down on a series of days over the weekend the US though, and I find this perhaps extraordinary, should I? The U S is not ruled out that these objects that have been shot down over North America were aliens or extraterrestrials. Admiss good. Yes, it's nice to start the

week with something like that, isn't well. Look, the question was put to the General and he basically said, I'm not ruling it out, So it's it's not as if he used those terms. It was a reporter asking the questions, but you know, keeping an open mind was their view. Indeed,

And sure, why not? I have to say my eye was cut by this piece by rocolleagu Philipaldric about as he calls it, the UK seventeen billion pound bank of Mom and Dad, which is, you know, a kind of flippant way to talk about something that is very serious in terms of the inequality of how wealth is being transmitted between parents and children. When people are helping out

there it's buying houses or the southeast of England. I mean, you know, you just fall over people who have needed the help of the older generation to get on the property market. Only a you know, swift look at the property prices as shows you that. But I thought it was very interesting that Philip Aldrick crunched the numbers reported on the i f S that was looking at this twenty grand is apparently the kind of average that's going from parents to adults kids. Let's not go there, No,

But the other thing is it's inequality. But it's also that it's um that it's white kids that are much more likely to get this money. You know, children from other ethnic backgrounds are far far less likely to get that kind of financial help. Very important when we talk about inequality in Britain. Yeah, white young adults more than twice as likely to receive a gift than a black adults and three times more likely than a Pakistani or Bangladeshia.

That's according to the last figures from the Institute for Fiscal Studies. Okay, up next, we will have the Goldman chief on job cut CEO returning to China and a call for UK pension reform. Now the paper Review on Bluebirddaybreak Europe, the news you need to know from today's papers and basic. Leanne Gans is with us this morning to discuss the headline in the Financial Times. Leanne says

Golden Sacks chief tells partners he should have cut jobs earlier. Yes, indeed, Caroline, good morning to you so, but of a revelation today in the FT. Now, speaking to about four hundred Goldman executives at a closed door meeting over in Miami, David Solomon said he had made this big mistake by not

cutting jobs in twenty twenty two. The chief executive actually took full responsibility for being slow to reduce headcount and also investment, and he says this was when it became clear a significant business slowdown was going to happen or would happen. According to the FT, Goldman waited until January. We obviously found that out last month to cut three thousand, two hundred jobs, but it would have not been so

aggressive if action was taken earlier. According to the newspaper, Now, Goldman's net profits in two thousand and twenty two fell almost fifty percent from record earnings in one Now this was due to lower investment banking fees, markdown at its asset management business, and also losses in its financial tech division,

So a whole host of problems there. And Solomon also told partners that the number of leaks to the media was actually also damaging to the bank, so somewhat taking some responsibility for not reducing headcounts sooner, but also saying, you know, the media did play a part in damaging the reputation. Okay in the Wall Street journally and the headline app from Apple t vw CEO is gradually returning to China after it's reopening. Yes, indeed, Stephen, good morning

to you. So top executives from these big multinational companies are now returning to China, and this is as the country emerges from COVID zero and says it's open for business as its economy struggles. We know it's almost been three years that China has been pretty much closed, and this move comes despite tensions following the appearance of the

suspected Chinese surveillance balloon over America. And as you and Caroline were just discussing in the top stories there, we also know that other incidences have happened since that one, and the first visit, according to the Wall Street Journal, was from the Volkswagen chief executive and the Apple CEO, Tim Cook and fights the CEO are also expected to visit China next month, and then the Mercedes Bends group

chairman it's also planning on going over. So lots of them heading over to China now that things are starting to open. But despite these bilateral tensions, US commerce with China has actually been on the rise, and policy and business experts said major trade and investment ties do tend to with stand political ups and downs. So that's why all of these big executives are heading over really to China as things they do ea slightly must be two or three years right that those exects have not been

over to China obviously because the plandemic. Anyway, last story, this is also quite interesting because we're talking about inequality. This is another thread of that story. The Times has an opinion piece about the changes to taxing pensions needing to be sensitive, but that they should happen. So what's this piece in the Time? Yes, indeed so Paul Johnson. He's the director of the Institute for Fiscal Studies and says private pensance are the biggest component of household wealth

here in the UK. Now that's even more than your own homes. And writing The Times, he makes the point that they need to be taxed appropriately, but that any change has been met with a wall of harsh criticism. He says that means we bake in injustice forever. So pretty cash words their record, really, and he gives this number of examples Caroline of why the system is unfairly generous to the wealthiest and the oldest. He says that favors those with big employee contributions and it can be

an effective vehicle for avoiding inheritance tax too. And Johnson says the tax systems for pension is costly, unfair, complex, and he also calls it an unholy mess, and he

says changes need to be both careful and gradual. Yeah, I think it's so interesting because Obviously, Johnson is well known for kind of making this sort of statement that around inequality, but that he's picking up on the pushback against any changes the pension reform, and he's saying, look, you can't kind of protect the older generation forever because

it is at the expense of younger people. I thought it was a very interesting piece thing, yes, saying that the younger generation has to come up with the cash, right, Okay, and thank you very much that review of the newspapers this morning. Now, the US has down three objects in the air of a North America in the past three days.

Another was reportedly spotted over a Chinese ports city. The unidentified aerial phenomena have heightened US China tensions off The Biden administration dubbed the first a spy balloon and sanctioned several Chinese aviation companies. For more on the story, we're joined at by Bloomberg Senior editor Bill Ferries. Bill, good morning to you. And what do we know then about these latest objects that have been downed over over North American airspace? We actually know very little at this point.

We don't know the US isn't really describing them in great detail. Uh, And they're certainly not saying where they think they came from. One thing they do seem to be admitting or saying is that they are reviewing airspace more carefully and they're noticing things that may have perhaps slipped by them in the past. But in terms of whether these are similar to that first balloon that was shot down off the coast of South Carolina, we're not getting enough information to be able to say that at all.

We don't know that they're even military or spycraft of any kind at this point. Okay, the US has blacklisted

the entity is involved though in the first balloon. What has been China's response, Well, China, You know, China's response has been all over If you go back to the early days where they just said this was this was a weather a climate research balloon that that got a little bit off track and the winds uh to turning around and saying that the US response has been kind of over the top, and as in the US is hyping the incident, China is now saying, um, they will

respond militarily if they see any incursions in their airspace, and they've at least a local paper in Northeast China has now identified some sort of balloon or object it says is off the off the coast of ching Dao and uh and that it may have to scramble its military to take care of it. We don't know what that object is the government Chinese government so far hasn't said much to confirm that report. Uh, And we certainly don't know if it would be a US US balloon,

Japanese balloon, or something entirely different. Belly. You alluded to this already, but it does seem like they're not Billions are not uncommon historically, but it seems like we're hearing it off a lot more about them. Now. What is contributing to that? And and I sup was what what can we deduce from the fact that we're talking a lot more about spotting them now we've learned, We've all learned a tremendous amount in the last week or two.

I think about these, Yes, I think. I think. On the one hand, yes, it's true, there are there are things floating up there that maybe the militaries and all these countries weren't paying that much intention to. We do know, you know, universities, NGO's research groups, they do all kinds of all kinds of studies of the upper atmosphere, and they launch balloons and related uh things like drones h

to study this all the time. UM, so we don't know if we're just noticing something in a level of the airspace that wasn't getting paid much attention to before, what it means. I think the bigger picture is it just shows with the US and China how fragile this

relationship is. A Secretary Blanken canceled his trip to Beijing, and I think both sides had looked at that as an opportunity to maybe restart relations that have been frosty going back into the Trump administration that was easily put off and uh, and we don't know when that's going to restart. And I think um politicians on both sides are are kind of taking advantage of this situation, uh to sort of hammer the hammer China from the U s side and hammer the US from the Chinese side.

This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Streets and beyond. Look for us on your podcast feed every morning, on Apple, Spotify and anywhere else you get your podcasts. You can also listen live each morning on London D A B Radio, the Bloomberg Business app, and Bloomberg dot Com. Our flagship New York station, is also available on your Amazon Alexa devices. Just Say Alexa played Bloomberg. I'm Caroline Hitka and I'm

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