Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, Central Banks once again our major focus around the world. Following yesterday's FED decision, Jay Powell and company kept rates unchanged but signaled they're going to stay higher for longer.
We're prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we're confident that inflation is moving down sustainably toward our objective.
Jay Powell and the Fed held their target range, while updated quarterly projections showed most officials favored another rate hike this year. Policymakers also seet less easing next year.
Well after that decision, Nathan, former New York Fed President Bill Dudley said, there's work to do to get inflation down to two percent.
There have been a little bit of an upward movement in people's estimates of the long term Federal fund trate in the summary of.
That projections first in June and again this month.
So what basically the Fed is concluding is many mantre policies not quite as as we think it is.
And Bill Dudley is now a Bloomberg opinion columnist. He added that he thinks a rate hike in November would be surprising.
Well.
Karen one Wall Street Titan says the Fed needs to be more aggressive. JP Morgan Chase CEO Jamie Diamond says the Fed may have to keep increasing its benchmark interest rates to combat persistent inflation. Speaking in Detroit yesterday, Diamond said the Central Bank was quote a day late and a dollar short, and rapid increases over the last eighteen months have just been catching up.
Well, we get another major policy decision later today, Nathan. The Bank of England will design whether to call a halt to the string of fourteen consecutive interest rate increases, and Bloomberg's Lizzie Burden has the preview from London.
The chance that the Bank of England slams the brakes on its fastest run of rate hikes in decades today rose after yesterday's happy inflation surprise. Still a quarter point height does remain on the table. With wage growth hot and inflation expectations raging, all eyes will be on the guidance surrounding today's decision today whether if the Bank of England does hike, this will be its last the question being oh at the peak of Table Mountain, as the
governor and chief economist have hinted. Lizzie Burden Bloomberg Radio.
Okay, Lizzie, thanks. Back here in the US, a possible government shutdown is less than ten days away, but House Speaker Kevin McCarthy is reporting some progress in negotiations. We get the details from Bloomberg's Amy Morris in Washington.
Speaker McCarthy won the support of a few hardliners last night as he worked to pass a short term spending bill to head off a government shutdown. After the closed door meeting that lasted more than two hours, McCarthy was still short the votes that he needs to pass a GOP spending measure, a measure that has no chance of passing the Senate, but he says they are closer and if he does succeed, the measure would at least set parameters for a possible negotiation with the Senate on federal spending.
In Washington, I'm Amy Morris, Bloomberg Radio.
All right, Amy, thanks well.
A major flashpoint in a Capitol Hill spending fight will come into focus when Vladimir Zelenski comes to Washington. The Ukrainian president will be on Capitol Hill this morning pushing for a new weapons package, But Speaker Kevin McCarthy says his fellow Republicans have questions.
These are hard working taxpayer dollars.
I want to make sure there's accountability where the resources are going.
I want to see a plan of what we're looking for for victory, and I think members will sit and have their questions as well. Speaker Kevin McCarthy is under pressure from far right conservatives who want to end US assistants. The White House says it's confident the vast majority of lawmakers still support Ukraine aid, and seeing Zelenski in person could dampen any opposition.
That's why what's happening in the war now. Karen Russia just launched its most intensive missile barrage this month. The Mayor of Kiev says at least seven people were hurt when at least twenty missiles were shot down. Seven others were hurt in a strike on a hotel in central Ukraine. Russia meanwhile reported nineteen Ukrainian drone attacks on Crimea.
Well, Nathan, we have new developments now involving two major labored disputes across the country. The Writers Guild of America and the group representing major Hollywood studios will meet for a second day. Sources say the studios have agreed to one of the union's major demands, additional payments for the success of TV shows on streaming services. The guild will give its response later today.
Well, there's not as much optimism involving the autoworkers strike Careen. A union negotiator says Stalantis's new contract offer to the United Auto Workers lacks job security guarantees. UAW will now have a Facebook live event tomorrow morning. It's likely to discuss whether additional plants will face strikes.
Well, let's turn to Wall Street now. Nathan shares a FedEx F five percent in early trading, the company posting profit that beat analyst estimates, and the company raising its earnings forecast. We get more from Bloomberg's Doug Chrisner.
FedEx is benefiting from cost cutting. Earlier this year, the company announced a multi year restructuring to reduce cost and improve efficiency by six billion dollars. But that's not the whole story. FedEx added customers who switched from UPS, its main rival, on concern over a potential strike, and on top of that, the freight unit of FedEx picked up some volume from Trucker Yellow Corporation. You might recall Yellow
declared bankruptcy in early August in New York. I'm Doug Krisner, Bloomberg Radio.
All right, Doug, thanks for also watching. Shares of Broadcom. They're down more than five percent. The information is reporting that Google executives are discussing dropping Broadcom as an AI chip supplier as early as twenty twenty seven.
And finally, Nathan, that didn't last very long. Instacar, the grocery delivery giant that soared as much as forty three percent in its trading debut two days ago, has now wiped out virtually all of those gains. The stock film nearly eleven percent yesterday and closed just ten cents above the thirty dollars level from its initial public offering. It's time now for a look at some of the other stories making news around the world, and for that we're
joined by Bloomberg's Amy Morris. Amy, Good morning, Good morning, Karen.
Air Force General Charles Q. Brown Junior is set to become america top military officer. This is the first Pentagon confirmation since a recent blockade on military promotions by Alabama Senator Tommy Turberville, who claimed, or rather who blames Democrats for the delay of the vote.
Instead of voting, Democrats have spent months complaining about having to vote. They want us to use floor time for things like liberal judges, like the one we confirmed a couple hours ago.
It was actually Turberville who had blocked military personnel moves for months because he wants to overturn a Pentagon policy of granting leave and travel expenses for service members who seek abortion services. An age limit for politicians is being proposed in Congress. It is not sitting well with some
of the older lawmakers. Texas Congresswoman Sheila Jackson Lee is seventy three years old, and she would have only two years left under this proposal, which caps political service at age seventy five.
It undermines the people's ability to run their government as they choose.
Jackson Lee says it would be a to voters to decide if someone is just too old to serve in office. Former President Donald Trump reportedly plans to skip the third Republican presidential debate that continues his strategy of avoiding forums that include his lower polling political rivals. Trump did not
show up for the first debate. He said he won't participate in the second debate, and that's coming up on September twenty seventh at Reagan Presidential Library, and Trump has questioned the benefit of debating at all because he holds such a wide lead over the rest of the GOP field. A family is suing Google for negligence, saying its outdated
navigation system led to their father's death. A family's attorney, Robert Zimmerman, says multiple people had been notifying Google Maps about a bridge collapse, but nothing was done to update the app's route information.
For years, Google attempted to lead people over a collapse bridge despite being notified by users of this exact danger.
Forty seven year old Philip Paxson was using Google Maps phoned from his daughter's birthday party outside Charlotte, North Carolina, last year, when Google Maps led him down a road onto the bridge that had collapsed nearly ten years ago and had never been repaired. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morrison. This is Bloomberg Karen right.
Amy, Thank you, and I'll get the latest news whenever you wanted with Bloomberg News Now. It's the top stories from our global team of reporters at the click of a button. Get Bloomberg News Now on the Bloomberg Business app, Bloomberg dot com, and anywhere you get your podcasts. It's time now for the Bloomberg Sports Update. Here's John stash Hour.
John. Yeah, and these are not good times with the Chicago Bears. They're owing to They lost twelve games in a row going back to last season. Their defensive quider Alan Williams is taking a leave of absence. He didn't coach the game last Sunday. He says it's for health reasons. There was a report that the FBI just raiding his home. Quarterback Justin Field struggled last Sunday. He said his play was too robotic, and he was asked why that was the case.
It could be.
Coaching, I think, But you know, at the end of the day, it makes it. You know they're doing their job when they're giving me, you know, what's look at stuff like that. But at the end of the day, I you know, can't be thinking about that when the game comes out, preparing myself throughout the week, and then when the game comes it's, you know, it's time to play free. At that point, so.
Field said his comments were taken out of context in terms of criticizing the coaching staff. Week three begins tonight, the Giants coming up that big comeback win last Sunday at Arizona visiting the forty nine ers, who are two to zero. It's their home opener. Baseball, the Orioles lost in Houston two to one, Astro scoring in the eighth to ninth innings to stay in first place in the Al West. Nationals were up twelve to nothing in the fifth that he went on to beat the White Sox
thirteen to three. The Red Sox led early on four to nothing, then lost to Texas fifteen to five. Rangers hit four home runs. A's lost at home to Seattle sixty two. The Giants fell to five hundred. They're out of it pretty much for a wildcard. They lost at Arizona seven to one. That Diamondbacks keep the lead for the second National League wildcard. Talks dash that were.
Bloomberg'sport from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias, exam the Bloomberg Business app in Bloomberg dot com. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager. They're almost done raising rates, but the fight against inflation is far from over. That was the message j. Powell and the Federal Reserve had for markets as they kept interest rates unchanged for now.
We will continue to make our decisions meeting by meeting based on the totality of the incoming data and their implications for the outlook for economic activity and inflation, as well as the balance of risks. Given how far we have come, we are in a position to proceed carefully as we assess the incoming data and the evolving outlook and risks.
For more on the Fed's decision and more central bank decisions to come, we are joined by Bloomberg opinion columnist Marcus Ashworth. Marcus, good morning. We can now proceed carefully. We heard that a lot from Chairman Powell. What message do you take from that?
Well, I think that what I like about Powell is that he's basically saying they don't really have any clear idea what's going on. But he's not rushed into judgment one way or another. The bias is still to Titan, even though that may not mean much or anything at all. In fact, you know, at the moment, the economy is too strong to talk about rate cuts at any point, or any need to talk about rate cuts, and he wants to make sure that doesn't get rapidly priced in
is the markets often want to do. I don't think he's got much time for the dop plots, the summary of economic productions. I think you find it a distraction. Unfortunately, the more he says, don't look at them and don't mean much, and they may change, and their clearly as they're changes as the winds blow in different directions. Unfortunately, the media seems to take it more and more, situs they've got nothing else to hang the hat on, because as he's saying, it's difficult at the moment, it's an
unclear picture. We're taking it, you know, as as we go along. At the moment, there's no need to hike rates further. You know, inflation in compared to the rest of the world, inflation in the US is actually doing pretty well. It's coming down nicely. But you know, look he's doing as as competent a job as you can expect. I really wouldn't read too much into what perhaps the people think that the Fed wants to do by the
rest of this year or even the next. And I still think they will they will stay where they are, and I don't expect to see another rate hike. But you know, Pal just doesn't want to get the opposite priced into quickly wherever races to think there's going to be rate cuts.
Because see, you don't think that the DoD plood is a reflection of what the Chairman had to say in his message. I mean, we had, you know, a dozen policymakers saying they do see another rate hike, and it sounded like Chairman Powell was keeping the door open to that.
No, he's keeping the door open. I just don't think that they will go through that door. And I don't think Powell thinks that either. But you know, he can't say that because then everyone will think the opposite. So for the moment, you know, look, there is a possibility. Let's face it, crew prices continue to go higher, and hire and go through one hundred that maybe they feel they may have to do one more. You know, that is that is out of everyone's hands at the moment
as to what happens there. Of course, there's a possibility, and he's very sensible and proven to keep and reflect what in essence the dot plot is saying. I just don't think he believes in the usefulness of the dot plot. But regardless what he's saying, everyone's hanging that hat on that because that's all they can they can see through.
I just don't I think in three months time are the chances of that reality of what people think, say they think, think they think now and actually doing it are two different things.
Up next, you got the Bank of England. Got a lot more interesting here, but the surprise drop in inflation. What do you see from the BOE this morning?
You know, well, I mean the inflation data is better. It's been a long time coming. It's about time the UK inflation they got better. We've just had some sort of very sticky contractual lead food price inflation which is finally started a long last start to drop out and I think will continue to yes, you know, obviously, like I run the rest of the world. Fuel prices has been going up and that added about zero point three to the headline. You so there's potential for that to
add more in the extra month or two. But equally, if ever oil prices was a drop, it would feed strive back out the other way, and clearly energy prices, we've still got some more good news to come. So I would say that the back of England sort of content by that it's finally working its own way. That's the way I think they want to get to the so called tabletop, which Chief Economishee Pill mentioned. They can't really do it unless the FED is clearly on that
tabletop as well. And indeed, by the fact the European Central Bank raise rates one last time, probably the four last week, it means I think they will go one last move to five and a half and then say, look, we're on this table top like everyone else is now and we've probably done You know, well, I think too much, but they certainly think they've done sufficient to try and
keep a hold of inflation. They're much more worried about wage data than they are by consumer prices, and that's the thing that's keeping them ratching in the monetary pain up because they really need to get a hold of a very very strong wage data.
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