Government Shutdown Talks Stall; Autoworkers Could Strike More Plants

Good morning.

I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.

Karen, we wrap a week of central bank decisions, with the latest coming overnight from the Bank of Japan. The BOJ held interest rates, its tenure yield target, and forward guidance unchanged. BOJ Governor Kazua Awaita says the central bank will consider a policy shift if the bank's inflation goal comes into site.

We are not yet in a situation where we can see sustained and stable inflation of two percent accompanied by wage increases, so we will patiently continue with monetary easing under the current framework. After that, if we are in a position to achieve the goal, we will consider scrapping YCC and modifying the negative interest rate.

BOJ Governor Kazua Awaita spoke through an interpreter at a news conference in Tokyo. US futures rose after the decision. While the EN weekend and checking the EN right now, it is at one forty eight point three zero against the dollar, well back in.

The US Nathan ten year yields about four and a half percent for the first time since two thousand and seven. It comes after the Fetter Reserve signaled this week it intends to keep rates higher for longer.

Fedchier J.

Powell says a soft landing for the US economy is still possible, but former Treasury Secretary Larry Summers is not so optimistic.

It's possible that we will have the proverbial soft landing, but I think the risks that inflation will be worse than what they say are very real.

And Larry Summers made those comments on the latest episode of Bloomberg's Wall Street We You can hear the full conversation tonight at six pm Wall Street Time on Bloomberg Radio and Television, or streamed live on Bloomberg dot Com.

In the UK, Karen, we got a pause in rate hikes from the Bank of England after fourteen straight increases. Chancellor of the Exchequer Jeremy Hunt spoke to Bloomberg after the decision, saying he hopes it marks an end to rate hikes.

I hope it is, but obviously you have to leave it to the experts in the Bank of England to make the final decision. But I think both of the UK and the US, what you can see is that if you take corrective action and if you stay the course, you can get inflation down and in both our countries it's definitely petd Uk.

Chancellor of the Exchequer Jeremy Hunt also discussed having dialogue with China about artificial intelligence. You can get the full conversation on the Bloomberg Talks podcast. Download that wherever you get your podcasts.

Onlyabor disputes in the US also in focus this morning, Nathan as the autoworkers strike in Detroit could ramp up today. On Bloomberg's Ed Corey joins us from Detroit with the details.

Nearly thirteen thousand UAW members have been on strike at General Motors pick Up planned in Missouri, parts of a Ford plant in Michigan, and is Stlanta's jeep plant at Ohio since last Friday. The union has said the walkout could spread to new facilities as soon as today. If no progress is made, the work stoppage could increase disruptions to an industry that makes up about three percent of the nation's gross domestic product. In Detroit, Ed Corey Bloomberg Radio.

Okay, thank you. Meanwhile, the US economy could sue and feel the impact of a government shutdown negotiations are at a standstill. House Speaker Kevin McCarthy sent lawmakers home for the weekend after his latest funding proposal got blocked, Bloomberg said. Baxter joins us.

With that McCarthy's efforts to get a government funding bill have blown up as he got ambushed by two ultra conservatives, Eli Crane and once loyal supporter Marjorie Taylor Green.

I've been very clear about take the Ukraine money out of the defense bill and put it in a separate funding bill so that members like me can vote.

Know and others can vote yes if they want. McCarthy says, still time.

I know it's not pretty, but this country's too great to quit on.

Nine days with three off now, and the Senate also would need to do something. I'm ed Baxter, Bloomberg.

Radio, all right, and thank you well. Taking a look at company news now, Microsoft got a huge boost in its attempt to clear its final global regulatory hurdle to acquire Activision Blizzard, and Bloomberg's John Tucker joins us with that story.

John, good morning, Yeah, Karen, Competition authorities in the UK signal it's game on. It's a pretty stunning turnaround for a deal that was once thought dead hand to running up against concerns from the antitrust regulators. So why the change of heart. Microsoft restructured the sixty nine billion dollar deal. They'll sell some gaming rights to French publisher Ubisoft Entertainment, So that's apparently satisfied everybody. There's going to be enough

Okay, John, thanks staying in the tech space. Apple's iPhone fifteen and new watches go on sale today. It's a test of whether a new design can lift the smartphone market out of a slump. And we have another note on Apple as well. It's set to issue smaller raises to its retail employees. Source to say the tech giant will disclose average annual raises of about four percent this week. That's a return to pre pandemic levels.

Well mean Mile oversees Nathan Chinese tech giant Huawei's getting a boost in smartphone sales from its new ship. Testing from Bloomberg News and Tech Insights found the cure in nine thousand s processor, which powers Huawei's Mate sixty smartphone series supports five G wireless speeds that made sixty phones or Huawei's first five G devices since US sanctions derailed the company's consumer business three years ago. NSMP futures are little change this morning, well up a tenth of up percent,

And straight ahead.

We have more global headlines plus a check of sports, and this is Bloomberg.

And here now with those global headlines, and look at what's happening in New York as.

Well, we bring in Bloomberg's Michael Parr.

Good morning, Michael, Good morning Nathan.

A tragic bus crash in New York State left at least two people dead and others in critical condition. The bus, carrying students to a band camp, went off the road near the Orange County town of Wawayanda, possibly due to a faulty front tire. The bus getted off the highway and landed on its sign after tumbling fifty feet. New York Governor Kathy Oakle.

Today was a day of terror for forty four passengers on a private coach line a group of high school students members of the Farmingdale Marching Band, en route to a camp in Pennsylvania.

The crash, happening nearly a half hour from their destination in the Poconos. Dozens of passengers, mostly students, were injured. Two adults on board were killed, including the band's director. The NYPD made another discovery at the Bronx daycare, where a one year old boy died and three other toddlers were sickened. After its belief they were exposed to fentanyl. Investigators located a trap door in the floor of the apartment located in the play area, where fentanyl and other

I think United States of America and mister President for the new defense package for Ukraine, A very powerful package.

Thanks so much. It was Zelenski's second visit to Washington since Russia's invasion. Ninety two year old Rupert Murdoch has announced he's stepping down as the head of Fox and News Corporation boards. No stranger to controversy, Fox reached on settled a huge defamation lawsuit topping seven hundred and eighty seven million dollars with Dominion Voting Systems after Fox News was accused of knowingly pushing false claims about voting machines

All right, Michael, thank you, of course for bringing you news throughout the day. Here on Bloomberg Radio. But now you can get the latest news on demand whenever you want it. Subscribe to Bloomberg News Now to get the latest headlines at the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com, Apple, Spotify,

Right, Natives.

Last night, you got a good look at a team that certainly looks capable of being a Super Bowl champion. The forty nine ers last season won of their last ten regular season games. They did fall in the NFC Championship game in Philadelphia. They played that game without a healthy quarterback Week would throw a pass. That's their only loss in their last sixteen games. They meet the Giants Soundley and their home opener thirty to twelve. First downs

Come home with the record of one and two.

Their coach is Brian Dable.

You got to take, you know, the good from it and you got to learn from the bad. Just like like every game. The guys competed and you know we competed all the way to the end. You know, they made they made more plays than we did. So you go back and take a look at it, and you know, get going on the next week and.

That next game. Not until a week from Monday, a home game to Seattle. This Sunday, Jets host the Owen two Patriots. New England won the last fourteen meetings blow to the Dallas Cowboys. Quarnerback Treyvon Diggs, pro bowler in each of his two seasons, tore his acl and practice

All right, John, thanks SMP futures up a tenth of a percent now features little change. NASDAK futures up three tenths of one percent.

From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias exam the Bloomberg Business Appen Bloomberg dot com. This is bloom Day Break.

Good morning.

I'm Nathan Hager. We are now eight days into the United Autoworkers strike against the big three Detroit automakers, and in just a few hours time we could find out whether the picket lines expand beyond one plant each for Ford, General Motors and Stilantis. It is a work stoppage that is already severely disrupted the auto industry. Let's bring in Craig Trudell for the latest unware things stand now. Craig is the global cars are for Bloomberg News. So craig, where are we in the negotiations?

So the big update today will be at ten am local time in Detroit. That's when the UAW has said they'll hold a press conference to sort of announce their next moves. I think the sort of wide held expectation is that this is a strike that will expand they've talked about, you know, by noon Friday, if they don't have a substantial progress made in these negotiations, that they

So what are the biggest sticking points at this point? We've heard about wage hikes obviously, we've heard about eliminating job tiers. Is there any movement on any of the particular pieces that the UAW is looking for?

Yeah, I think, you know, the the idea of wage increases, the idea of of tiers. Where you know, if you're a newer worker, you know for some time now, you've you've been paid less than than a worker right next to you who's who's been you know, with the companies longer. I think, you know, the union also wants to call back some of the concessions that they made, uh say in two thousand and seven or or around uh, you know, that period of you know, when these when these companies

In the meantime, of course, we've had picket lines at one plant each for Ford General Motors and Stilantis. What kind of impact has that had on the industry thus far, and how much further could these walkouts expand are we thinking it's going to be another plant each for each of the big three or could be even more than that?

I think, you know, to this point obviously, you know, one plant for each company is is uh, you know, something that that the industry you know, doesn't love, but you know can can deal with.

Uh.

And it's something that that we're quite used to after the last couple of years after all, you know, quite a lot of disruptions to to this industry, uh with with the supply chain issues that that have had the chip shortage. Obviously it was it was for a while there, you know, every other day you heard about another plant going down as a result of the fact that they couldn't get semiconductors. So, you know, we do have a situation where some of these products are are really you

Uh.

You know, they only have so much inventory of that, and so we will probably see you know, some depletion of inventory if this lasts longer at the plants that have already you know, where we already have seen walkouts, whether or not you know, we potentially see you know, another plant added at each company. I think is is definitely you know, something that everybody's kind of on the

Of course, I expect we'll get more answers, as you said, when that news conference is expected ten am Detroit time. That's eleven am on Wall Street, So we're counting down to yet another deadline in the autoworkers strike against the Detroit Three.

This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.

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