su has given me more confidence. now i can go for that promotion. - if you're ready to go back to school, you can do it. southern new hampshire university has changed my life and it can change yours too. - [narrator] visit snhu.edu. >> we're live outside of buckingham palace as people come together to mourn the death of

queen elizabeth ii. she has died at the age of 96. buckingham palace saying she passed away peacefully thursday afternoon at her castle in scotland. she just celebrated her platinum jubilee marking 75 years of service. the reaction around the world has been swift. we heard from president biden saying that the queen defined an era. >> we also heard from the australian prime minister today. australia is a constitutional monarchy as well as new zealand. now we have king charles iii. let's get over to guy johnson in london. we are seeing images of the queen on screen at the moment. it is just this week she was swearing in liz truss.

has this been something of a shock? guy: i think it is something that has been coming for a while. when the moment finally comes, there is a certain sense of surprised. she had been ill for quite some time. she had been suffering from what was described as episodic mobility issues. those who clearly become more serious. she had not been able to attend a number of events that she was expected to attend. she had to curtail her experiences at the jubilee, so it was a surprise but nonetheless a shock. with the impact that she had over 70 years, the soft power that she wielded and the influence she had over british politics, all of that is going to be clear over the next few

days. we now have a new king and a new prime minister within days of each other. shery: take us through the key moments of her life. as you said, it was momentous. she ascended to the throne after world war ii. she saw the decline of the british empire and she also saw exit. -- brexit. tell us about the impact she has had on the country. guy: she was part of, she played a key role in britain's changing nature. britain started out the beginning of her reign with an empire. it is ended without one. her prime minister was winston churchill at the beginning, and now liz truss. the loss of authority, the loss of power, the regaining of some of that power not bite hard power but soft power which encapsulated best by the 2012 olympics. she played a key role in that process. she worked with daniel craig

playing james bond. she became more integrated and more adept at handling the changing nature of the u.k. and its society. throughout her changing nature of the u.k., the changing nature of britain's role in the world, she was a cornerstone for britain. she was basically the key foundation on which modern britain was built. paul: what happens now? what is the chain of events for the next few days? guy: like australia, we will see large parts of government coming to a halt. we will have 10 days building up to a funeral. those 10 days start tomorrow. her body will come down from scotland over the next day or so . probably not tomorrow, it will happen on saturday. king charles iii will come down from scotland. he will have a discussion

including with the new prime minister, liz truss. the review a series of very well choreographed, very well-planned state events that ultimately will build up to the funeral that will take place in 10 days. this has been a long time coming along time in the planning. u.k. authorities, bits of state have been getting ready for this did now, we will see that plan rolling into action. it will be interesting to see a number of events taking place. shery: that was guy johnson in london. the death of queen elizabeth has prompted an outpouring from world leaders. the reaction has been swift including from president biden. >> as soon as her death was

announced, we started hearing from world leaders including president biden here may cosign the: -- condolence book at the embassy. the world leaders talked about her legacy, but also about how they had affection for her. she met with almost every president since. truman. -- harry truman. she met with 50 different prime ministers of britain and 12 canadian prime minister's. she really had a long legacy but also an affectionate one. they all, many of the statements today were about her as a diplomat and leader but also personal remembrances. every world later today we heard from including emmanuel macron who basically said she was a

friend of france. we heard from one who said she was a point of stability. shery: prime minister trudeau said she was one of his favorite people in the world. paul: even here in australia, the prime minister is a republican but he paid heartfelt respect to the queen. to the statements about her legacy, are there any themes emerging? >> one of them is this personal sense. for instance from former president obama, he talked about how she had a great sense of humor. he spoke about the sketch she did during the lumpen -- london olympics and she had a sense of playfulness even though she was such a world leader for so long. we heard that from a number of

people talking about how they remembered she brought humor to serious occasions. i think that was the sense that it was going to be a personal loss for world leaders as well as a loss of this diplomat, this person who represented that kind of stability no matter what was happening in the world. shery: we will be looking to the influence that king charles iii have in the world now. >> that is something we will start to hear from world leaders about. i expect he will be having calls with world leaders that tends to happen and he is not an unknown quantity and most of them have met him. i think that is something that

we will be hearing a fair bit about. >> the death of queen elizabeth ii was also felt in markets. the new york stock exchange today observed a moment of silence on her death. you can take a look at how futures are trading right now. not a lot of movement, but we saw u.s. stocks rising. a lot of volatility. we have plenty of fed speak to digest. hawkish rhetoric. crude prices right now are down. plenty to come on to break us joya. this is bloomberg. ♪

>> queen elizabeth ii reigned during a time of change.

when she took the throne, there would be debate about if her coronation should be televised. by the end of her life, she had been on a comedy sketch. as head of state, she presided over the end of the mighty global empire and watched u.k. -- the eu. >> we tend to work toward a new partnership with the eu based on free trade and from the cooperation. >> she was born in london on april 21, 1926. at the age of 10, her father unexpectedly became king after her uncle abdicated making his oldest daughter the heir apparent. in 1947, she married prince philip of greece and the following year, their son charles was born. upon the death of her father, she became queen at the age of 25. amid culture and -- cultural and

applicable upheaval, the monarchy image in british society shifted dramatically. wants of pageantry and spectacle were quickly soured to the unraveling of the marriage of prince charles. queen elizabeth retained the countries affection. new royals came across as more into with the times. in the waning years of her life, controversy came up again. the final years of her rain saw domestic political turbulence as scotland debated independence and brexit reopened tensions. the queen met every week with the prime minister for a confidential discussion. she worked with 15 prime ministers over 70 years of

dedicated service. >> look the life and legacy of queen elizabeth ii. joining us from london is the previous leader of the conservative party. difficult to overstate the magnitude of this day. an enduring and stabilizing presence of the world stage is now gone. can you give us a sense of the historic importance of the queen's passing? >> it's a very sad day. not only for the people of the u.k.. for us, it's the end of an age, and era. it's also a moment of reflection. we have been blessed and fortunate to be the beneficiaries for so long of her majesty's dedication and sense of service duty.

to say that she will be sadly missed is the greatest understatement is possible to make. >> i'm sure you have met the queen yourself a number of times. you have any personal memories of her? >> i was fortunate enough to meet her on a number of occasions. she was always extremely gracious. she went to great length to put everyone at ease. when i was leader of the opposition, my wife and i had the privilege of spending the knife -- spending the night at windsor castle. government are the extraordinary links they had gone to to bring out to the library a series of things related to my constituency. the way in which the queen took enormous trouble to make sure everyone was at ease new no bounds. >> it says something but her character. she did try for her tenure to

state politically neutral. tell us about that dynamic with u.k. politics she had to play during her time. >> she was absolutely scrupulous in respect during -- respecting the boundaries of a monarch. she had regular audiences with her prime ministers, she would meet them every week. they benefited greatly from those conversations because she had the absolutely unique experience. she had a memory of what happened 50 years ago. so if something cropped up she could say well yes i'm a member something like that happening and she would give them the benefit of her wit -- wisdom and her recollection of what happened. i'm sure that was enormously valuable as every prime minister has said. >> the role of the united

kingdom has changed from british empire to brexit. tell us about the cornerstone role that she played as u.k. changed. >> she was one constant. she was the mother of the nation. she was a constant, an absolute rock on which modern britain was built. of course as we have seen today with the tributes pouring in from all over the world, her influence and the respect in which she was held extended far beyond our shores. >> will king charles have the same impact? >> i think he will be a very good king. he will also respect the boundaries of the constitutional monarchy. he's had a lot of time to look at how his mother has reigned.

he has very big shoes to fill. i'm confident in the future of our monarchy and i am confident that he will do a very good job. >> you spoke a moment ago about the queens enormous breadth of experience. a monarch for 70 years, she remembers the winston churchill era. charles is not a young man himself. can he bring the same qualities to the table in terms of how long he's been around? >> yes, i think you can. not to the same extent as the queen, but yes i think he can. he has undoubtedly acquired a lot of experience along the way. he himself has met very many world leaders. he doesn't assume the rule -- the role as a novice. he had a long apprenticeship and i'm sure that will leave him in good stead. >> the queen was 96 when she

passed away. just this week, she swore in this trust -- liz truss and appeared to be in good health. does this come as a shock? >> i think it has. obviously, she was 96 years old. there had been reports about her deteriorating health and references to her mobility issues. i don't think many people thought that she was seriously ill. certainly to me and most of the people i have talked to, it did come as a shock. >> you yourself have had a distinguished political career. from your vantage point, the role of the u.k. on the global stage now as we saw queen elizabeth take the ceremonial role around the world and build the u.k. in the eyes of the world as well.

>> she was soft power personified. people talk about soft power, the ways in which the country can exert influence apart from military or economic power. there were a number of ways in which she could do that. the way in which the queen was perceived across the world and undoubtedly that's the way in which the u.k. was perceived and the way in which u.k. was able to exert. that was of enormous advantage to the u.k.. whether king charles was able to do that to quite same extent remains to be seen. i think he has a good chance. >> thank you very much for your time today. we have plenty more to come. this is bloomberg. ♪

>> citigroup has persuaded u.s. federal appeals court to commence creditors to return billions of dollars it accidentally sent them. it is a victory in an effort to redeem the embarrassing blunder. hong kong's largest developer has reported a 3.8% drop in profit as the market weakens underlying earnings fell in the year ended june 30 which was low estimates. the company pointed to covert

controls. comments came today after apple announced emergency sos via satellite. it is unclear if talks are still going. >> tech a look at how currencies are trading. we are now seeing the daughter holding steady. we have a little bit of strength today as treasury yields jumped especially with the policy sensitive 2-year note. we have plenty of fed speak to digest including jay powell reprising his hawkish views from the jackson -- jackson hole conference. we have been watching the british pound of course. we are continuing to watch country in morning with the passing of elizabeth but also the euro, the ecb hiking rates by 75 basis points.

it expects more increases over the next several meetings. it is having an impact on how trading has moved in the european session. we saw bonds following after the ecb said it would remove cap on how much interest government deposits can earn. we are watching how asian currencies are training. a little bit of strength for the japanese yen. member this is after we saw the weakest level since 1998 against the u.s. dollar part the aussie not doing much with futures holding steady. this as we saw the aussie underperform under the rba governor signaling a potential and to outside interest rate increases could be insight. he restocks not doing much, but nikkei futures also holding steady after seeing again in the previous session. tech look at u.s. futures because -- take a look at u.s. futures because we have a volatile session in new york.

this after jay powell's comments but we also heard from chicago fed president saying the fed could very well do a 75 basis point hike in september. we heard from the st. louis fed president that bringing inflation back down to 2% is a top priority. u.s. futures at the moment are not doing much but we saw a lot of volatility in the treasuries market yield jumping given the odds of potentially the outside rate hike. in fact, we saw traders pricing in odds of around four and five that the fed would implement a 75 basis point hike. we have seen two straight basis point hikes. that has big implications -- >>

in terms of the central bank, we heard from one saying yesterday that some of these outside rate hike's may be coming to an end. this describes the mood of the nation after the passing of queen elizabeth ii. that's take a look at the day ahead. a climate change bill has finally passed the australian senate. a cut to carbon dioxide emissions in eight years. just in time, because post -- parliament is going to be suspended for 15 days following the death of between elizabeth. we are watching airline and travel shares on the open after the government announced it is scrapping the mask requirement

on flights. also a report that mineral resources is considering a spinoff of its operations. we have plenty more to come on daybreak australia. this is bloomberg. ♪

paul: you are looking at live pictures outside of buckingham palace. it is 11:30 p.m. outside london.

queen elizabeth ii passed away at the age of 96. notice hanging on the gates announcing the death of britain's longest serving monarch. >> we spoke with jay powell who said the fomc will not flinch in the battle to curb inflation. speaking at a conference, he said the fed accepts sponsor abilities for price stability. he also said -- >> we need to act strongly as we have been doing to keep at it until the job is done. to avoid that, we think we can avoid the high social costs that paul volcker and the fed had to bring into play in order to get inflation back down.

janet yellen wants to see tax hikes on the rich. she used a speech to highlight what she sees as the biden administration's success story. the u.s. government is loosening restrictions that were put in place because of technology sharing. look commerce department says the rules will help the u.s. maintain its lead in setting standards. to australia it was passed its first major climate legislation and more than a decade. it set targets. the prime minister's climate change bill legislates a 43% cut in carbon dioxide emissions from

2005 level by 2030. the target brings us closer in line with allies including canada, south korea, and japan. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. paul: the big story around of the world, the passing of queen elizabeth ii. she was head of state in australia and had the distinction of meeting more than half of the country's 29 prime minister's forcing more reaction here in australia, let's bring in our government reporter. can you give us a sense of what an important figure she was for australia? >> queen elizabeth was huge for us trillion. she was not just the monarch, but symbolic of the hill -- the

whole agent for australia when we were far more reliant on the u.k.. there is no doubt that within her lifetime, she has seen the pivot from the u.k. to more of the u.s. focused foreign policy. during her lifetime, australia voted to see if they would get rid of the monarchy. their final break from the u.k.. in many ways, it was due in large part to her personal approval in australia that failed. >> in the u.k., we are seeing 10 days of morning or we will see flags flying at half mast. what are some of the changes we will see in australia given the passing of queen elizabeth? >> there is a broad program laid out including parliament which will be suspended for 15 days.

the prime minister and governor general will head to london where they will meet with king charles and undertake, to be more of various functions that this event inspires. us julia is going to have a book of morning laid out for the queen and a national service laid out as well as flags flying at half mast. paul: world leaders to been paying tribute to queen elizabeth. let's have a listen to what our own leader had to say. >> queen elizabeth ii has been a wise and encouraging guide always wanting the best for our nation and greeting each change with understanding, good grace, and an abiding faith in the australian people's judgment. from her first trip here, it was clear her majesty had a special place in our hearts. and we in hers.

paul: you mentioned earlier that australia has held a referendum in the past for becoming a public -- public. what is the country's relationship going to be like with king charles? >> what remarkable statement from a man who is as you said a republican. that shows the sense of feeling and australia toward queen elizabeth. the relationship going forward with king charles iii, that will be a big test for the queen's successor. can he maintain those ties on the wake of her passing? many major republicans including the former prime minister said they wouldn't even discuss the possibility of a republic until the queens passing. a slightly morbid way to talk about it, but i think it shows how much it was considered a nonissue. have a passed on, there will be

a lot of pressure on king charles to maintain the close relationship that she had with australia. shery: coming up, the ecb goes big and hits at more hawks -- more hikes to come. this is bloomberg. ♪

jumbo central-bank hikes are gaining momentum as the doors opened to 75 basis points and the ecb walks right through it. what was the message from jay powell as well as christine lagarde? >> inflation is too high and they will not let up until they get the job done. jay powell did not exactly say for sure they are going to do 75 basis points, but he certainly kept it firmly in the middle of the table. >> we need to keep at it until the job is done.

>> that allusion to paul volcker who stopped easing too early and had to get back on the rate hiking path and cause worse recession. jay powell warned against premature easing. he said they are going to focus on the totality insight as to how big it should be so the new cpi number out next week tuesday morning focus. it wasn't just jay powell. another also said that he could see the 75 basis point rate hike. definitely leaning in that direction. as for christine lagarde and the ecb, it was considered a tossup. the have an energy crisis, yet they have high inflation. >> the governing council today decided to raise the three key ecb interest rates by 75 basis points. this may set front load the

transition from the prevailing highly accommodative level of policy rates toward levels that will ensure the timely return of inflation to our target. >> just as important if not more so, she said they see more hi hikes as needed and importantly it wasn't just the hawks pushing the doves in that direction. the doves are on board also. >> not a done deal. before this meeting before we heard these remarks and saw the kinds of things we were seeing in their statement, people were not expecting it but they are now. >> global economics and policy

editor kathleen hays. let's bring in our next guest. kathleen just explaining jay powell doubling down on the hawkish rhetoric. the markets are rising. our the markets second-guessing the commitment of central banks again? >> i don't think they are. i think the markets finally have adjusted to the fact that rates will go up by 75 basis points when the fed moves next and i think what we are seeing is some recognition that a selloff that we saw the second half of august was a bit overdone. generally, markets pullback for the bad news is in. then they start to recover in anticipation. they recognize that some of the stocks have a lot of value in

the. we have some investors doing a bit of bargain-hunting trying to recognize the need to be positioned in equities for the recovery. that recovery may take some time to develop. you still want to be there before it starts to happen. >> would you put yourself among the category of bargain hunters? are you adding to positions particularly in quality names? >> we think it's a good time to get long. one thing we have done over this difficult time is encourage them to live -- instead of living off

of their portfolios to become income oriented strategies. the quality names that tend to pay higher dividends than average have held up reasonably well. that has helped our clients ride this out and we are adding a quality position. we're also looking to opportunities to find some bargains. take a company like broadcom, something we have own for a long time. they are down nearly 25% year to date. the company has very solid growth. it's chips are 15 weeks out. there is still very strong demand. that's the sort of company that has been beaten up. it is cheap at 13 times were investors can take advantage of paying something -- something that pays and has a fair bit of appreciation attentional. >> what about small caps?

we heard that some of those smaller names are pretty cheap compared to their larger counterparts. >> the small-cap names have sold off hard. the reason for that is there's just a lot more uncertainty along smaller cap companies it's harder to understand them, they are less well covered by wall street analysts. you tend to find investors running away from those. consequently, they have become incredibly cheap given the prospects. you still have to confront the fact that businesses are smaller but a lot of those companies can be more domestically oriented. here women look at the global economy and risk, there are more risk to europe and asia than in the u.s.. the u.s. is not a closed economy, but a lot of these names can be more domestically focused and that can give you more opportunity over the next 12 months. >> you are also seeing pockets of earnings risks as well. what are they? >> some of the biggest risks are in the pandemic darlings. netflix or peloton. consumers are shifting their spending patterns. they are moving toward services and toward the things they couldn't do during the pandemic. this is a global phenomenon. we are seeing some of those names at risk.

paul: you mentioned a moment ago that you see some risk around asian markets. i want to get your thoughts on china particularly in terms of the challenges faced by covid zero. the ongoing troubles in the property sector. do you see conditions improving materially after the party congress? >> it's a good possibility. i think that china problems are one of the reasons why the markets sailed off so ash sold off so hard.

there's a lot of concern that china's spending cap abilities are going to be dampened by the covid lockdowns. plus the property value concerns are often potentially dampening consumer spending. we saw that show up in manufacturing and lower than growth. that's going to affect the global economy. the party congress might help resolve some of that but i don't think it's likely that they're going to back away from zero covid strategy. that means it's want to continue to disrupt manufacturing. there are places to go that are more resilient than others. the big companies in china that are behind the growth. they really sold off considerably and their valuations have become very attractive. that's a long-term bet on the ongoing survival and ultimate --

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>> the global semi conductor industry has taken a hit given the supply chain issues and the pandemic. oil prices are continuing to rise.

one company is involved in most of the world semiconductor production. give us a little bit of an overview of the global picture because we talked about so much of the strain on the global semiconductor industry whether it's the energy issue, the pandemic issue, what do you see in terms of your industry? >> the industry has been suffering from supply chain constraints over the last couple of years. we have worked really closely with suppliers and customers to overcome those things. the pandemic has caused demand to increase. the pandemic has caused our ability to manufacture at least in the beginning of the pandemic be restricted. as a team in terms of the supply chain, we have worked with our customers and suppliers and as a result, we have done well and at

the industry has done while delivering to these demands. >> we now have demands -- concerns about global recession. are you sing the demand that we saw during the pandemic? >> yes. things can change quickly in the semiconductor industry but we have seen this many times in our history. we have weathered it and come out stronger every time because we continue putting money into r&d. >> what is the lead time for your chip equipment customers? ask lead times are measured in months and quarters. some are years >> has it gotten better? the backlog? >> the backlog is still high for us and many of our peers. >> you have a lot of facilities in europe dealing with an energy crisis as we all know. rising input and energy costs are causing an impact for you

there? >> certainly rising impact -- rising input costs are an impact for everybody. not just for us but everybody in the world. we have factories in europe, asia, the united states. we have been able to deal with these costs through price increases as well as looking at how to become more efficient through operations. >> you have been making acquisitions grabbing the most headlines is the $4.4 billion acquisition. can you tell us about the synergies of that deal? ask if i setback a little bit, and ks is a provider for advanced electronics. what i mean by advanced electronics is smartphones, that's a great example. in that smart phone, you have things like semiconductors which can clearly get better but you also have a lot of other components that are miniaturized and have to be packaged. that's where they come in, they

are the leading provider of some of those packaging chemistries. and ks as a company provides solutions for not just the semiconductor market but laser-based manufacturing to make those components much stronger -- smaller as well as advanced packaging now. >> with more geopolitical tensions and restrictions with shipping, is that a problem for your company? how does that affect your business? >> we certainly are affected and we abide by the laws of the united states. the way we look at it is we are providing critical solutions to the equipment that is needed to make chips. we don't care where those chips are made because wherever they are made, the equipment that is needed is the advanced of the equipment that we make. there could be short-term disruptions, but long-term, we will always be there for advanced companies. >> yet the u.s. is trying to reshore that business here.

how is that affecting your business? are you applying for any grants? tax credits? >> there is a lot to be known but we will certainly be beneficiaries of the chips act because a lot of these new fabricators will need equipment and we will benefit from that. we are positive about the chips act in the united states. we already have 20 factories and the united states and 3000 people. we are very supportive of that. >> do you see the u.s. being able to take this to the next level when it comes to the semiconductor industry through the chips act? >> companies like intel and micron are good companies already. chips act rings in other companies like samsung and tsmc. this is a great step for the night states to try to regain their leadership in chip manufacturing. >> a most optimistic market for you? >> semiconductors is a great neighborhood.

advanced packaging for electronic devices, we think it's going to be the next 10 years of growth as well. >> region? ask asia continues to be important for us. with chips act and reassuring, europe and united states will continue to be important markets for us. >> it was great having you with us. with your outlook for the semiconductor industry. we had the philadelphia semiconductor index gaining 1.8% today in the new york session. look at how u.s. futures are trading because we're lacking clear direction. we had a lot of volatility in the regular session. between gains and losses, we had jay powell coming out reprising his hawkish views from jackson hole saying officials are strongly committed to their fight against inflation and perhaps timely comments given that we continue to see

inflation numbers soar across the board. we have latin american inflation, mexico and the double digits. we are also getting the rate decision from peru at the top of the hour as well. continue to watch these markets, treasury yields have jumped across the board with traders pricing in odds around 45 that the fed will implement 75 basis point hike. this is bloomberg. ♪

♪ shery: we are live outside buckingham palace where people are gathered to mourn the death of queen elizabe