perhaps we are getting over our skis, we will hear from larry summers shortly. there is a long way to go to get inflation down. the aussie is the high beta trade in relation to china's reopening, and likewise opec holds production steady but again, the market focus is very clearly on the commodity reopening and the pivot in china. but it will be jagged, according to bi> . let's get more on that story with reporters from around the world. we will talk about china's covid pivot, and that market reaction you were just talking about, and opec+ holding output steady. manus: we got easing covid requirements across major cities. beijing appears to be shifting away from strict covid zero. he is living in shanghai and can give some context, how real are the step exxon testing, what are you seeing in shanghai? >> protests have died down but the government keeps on announcing loosening of covid curbs. the largest thing is these curves are ones that affect people's daily lives. the authorities are ending pcr tests that were mandatory to enter public transport, outdoor publi

treasury secretary larry summers speaking with david westin.e two american security pros who staged carlo guns spectacular escape helping with the fugitives help for their legal bill. this is bloomberg. ♪ haidi: let's get you today's big take. this is quite a story. the fallout from the daring escape of japanese justice of the former nissan bonds. bloomberg senior editor joins us. carlos ghosn is free at great cost of the men who helped get him there. it is no wonder this is the stuff of a netflix documentary. a hollywood film is in the making. >> we are not so sure about the hollywood film but it seems a story that is tailor-made for the big screen. it has been almost three years since the dramatic escape. one of the most interesting in at least business news. now we get a little more detail on how it happened and the fallout as well. and the cost some of the folks, namely michael peter who led the extraction paid for somebody else's freedom. shery: what is next for them? are they expected to see any of these costs given that it seems in your

also, this hour, i will speak to former treasury secretary larry summers about the feds fight against inflation and the prospect for a recession. and with britney grammar back in the u.s., would businessman paul whelan's still lifting behind -- i'll speak to the family of two iranian americans jailed in iran for years. and the top u.s. hostage negotiator who brought brittany home and they prospects of not bringing other americans back. good day, everyone, i'm andrea mitchell and watching ton where the senate is going to vote on a one-week continuing resolution to take the government open. part of this is rounding up votes to pass the required spending bill for the coming year. they pass that next year. the stopgap measure has the house, this morning, with speaker nancy pelosi, getting every democrat president to vote yes. only nine republicans voted for passage. late wednesday, the former speaker republican john boehner return to the capitol with an emotional tribute to pelosi's remarkable tenure as her official portrait was being unveiled. >> madam speaker, even i have disagreed poli

larry summers says this will change. is it the wheel of fire?t people think it is it revolutionary. this is bloomberg. ♪ no matter what you're up against, we have your back. we are united way. we are neighbors helping neighbors in communities around the when disaster strikes we get you back on your feet. we help children build brighter. we've been here for over 135 s but now our work is more . join us. join your neighbors. join united way. >> is not like there is an incredible amount of money waiting to be deployed. i think the pace of investments in the venture ecosystem massed by capital from nontraditional balance sheets. what you see is a shift in -- you will see people look for a complete different dynamic and the balance sheets, capital structures, and the management teams they invest in. ed: that was a director of research, giving his take on the current dynamics at play in the world of vc. let's get another take, the general partner, at a firm focusing on investment in emerging technologies. $4 billion of assets under management. it is b

treasury secretary larry summers. goldman sachs says its road to reopening could be bumpy.are they worried about? annabelle: essentially what goldman sachs is concerned about is this path to reopening in china is not going to be a smooth one. add that to a risk a recession in the u.s. and europe and couple with that, we could be looking at a tough economic climate coming into 2023 and china could present a growth risk. goldman sachs are positive on the mainland. these comments did come from the president speaking video -- speaking via video link, but said business in china, particularly in the capital markets is doing well and they are looking for more opportunities ahead, particularly in china's mainland asset industry. one thing we are watching closely is any sort of opportunity is the company one, considering we have the worth conference taking place and that could give us more support for china's property sector. perhaps we could get officials signaling this crackdown on deleveraging could be over. add to that more support to prop up demand from the consumer side , so t

i am wanting to listen to larry summers. larry: we don't yet know how this is going to work out.s this going to be a successful rejoining of the reality of the rest of the world? or is this going to lead to catastrophic delegitimizing performance of the chinese health care system? dani: how concerned are you if this is a bumpy path to reopening and it does result in widespread covid cases in china? lale: we are concerned of course. it is uncertain how they will deal with although these new vaccinations and so forth and when they will be able to reach herd immunity. from a markets perspective they are neutral. we are staying overweight in policy favored sectors at will do well no matter what such as smart infrastructure such as renewables. that for us is unchanged. dani: do you -- thank you so much for your time. lale akoner. coming up on the program, beijing is asking covid patients with mild symptoms not to call the medical emergency hotline. this is bloomberg. ♪ manus: it is daybreak europe. let's get to hong kong. the first word headlines. >> covid is rapidly spreading through

larry summers, who will share some thoughts about. superabundance. we've invited professor summers not just because one of the most important economists in the world, but also because he can be counted to provide critical comments, some of which we may not agree with, all of which will be useful to in refining our own thinking on, this big issue. larry summers is the president emeritus of harvard university, where he holds professorship still. during the past decades, he's served in a series of senior policy positions, including vice president of economics and chief economist, the world bank, director of the national economic council for the obama and secretary of the treasury of the united states. from 1999 to 2001. i could go on, but we would rather hear directly from professor summers. professor summers, thank you for joining by zoom and welcome back to the cato institute. i'm glad to be with you. i wish you had going on. i was rather enjoying all the nice things that you were saying about me and i was remembering what johnson had said when he was

larry summers was a top economic adviser to both president clinton and president obama. i think that's pretty impressive. and yet, the biden administration seems to have refused to heed economists warnings of growing inflation. on february the 4th 2021, professor summers who served in both the clinton and obama administrations warned that president biden's almost two trillion, quote, stimulus plan, known as the american rescue plan, it was three times as large as the output shortfall. and that policy makers need to ensure that they have plans in place to address the possible and quite serious problem of inflation. and i want to point out that i voted against this disastrous piece of democratic legislation last year. yet again, on may the 18th of this year, mr. summers reiterated his concern. the concern apparently fell on deaf ears. he said democrat policy makers are, and i quote, are taking very substantial risks on the inflation site. given the top democratic -- economic advisers, economists, like mr. summers warned of this inflation because of the policies, it seems h

harvard professor larry summers, economic adviser to both president clinton and president obama, warned that the almost two trillion stimulus plan was three times as large as a protective shortfall. he said quote, policy makers need to ensure they have plans in place to address the possible and quite serious problem of inflation. instead of taking time to analyze the impact that additional government spending might have on inflation, the biden administration continue to pump money into the economy, and inflation has continued to worsen. on september 13th, in 2022, when the august numbers were released, showing 8.3% inflation, biden hosted the party to celebrate the passage of a half trillion dollars of additional spending, ironically called the inflation reduction act, which as we've already mentioned, does not reduce inflation. in just a few days later, on cbs, president biden told the american people that inflation was increased by just an inch, and if the white house thinks that this is what we need to measure inflation by, i can assure you, the american people are thinking that this

we have the likes of larry summers who got behind joe manchin skinny bill which was adding to inflationot at the levels the full shebang bernie sanders would've done has been costing the government and say there's a way to do this responsibly and now you divided government you're going to ceos get bigger about this, kevin mccarthy wants to flex as much as possible i don't know what his caucus is going to look like that's a problem for him yes slim margins to work with but i think anything that comes out of a democrat-controlled senate which is very embolden after a super successful midterm is going to die and congress. gerry: kim do you think there's any prospects of congress doing anything at 2023 again we have a divided congress and a democratic white house, it doesn't look very promising as justices. >> now, on the upside you can hope that this congress would take the approach of do no harm meaning what's been harming the economy all of the massive spending and you could rely on the republican house to serve as a break to anymore dollars going into the economy that would be a start b

matt: did you hear larry summers with david westin last week?e was complaining that she was comparing the fed getting to a terminal rate with an airplane that is late. you were supposed to be there at 8:30, they said 9:30, 10:30, you don't expect it to leave until noon. i think that's a great analogy. that said, what kind of terminal rate are you working with? 5%? 5.5%? we are almost there now. stephen: we are in the 5% camp as a base case. maybe it skews a little bit to the upside, if some of the strength and labor markets remain as persistent as it seems to be. matt: how does that turn around, slowly or instantly? stephen: i think it will be slow, but you're seeing signs from a lot of headlines around layoffs. i think that is going to lead to a more challenging sentiment, which could lead to some of the reliefs in pressure in labor markets. ultimately, i think there's enough signs from the fed that they are not going to have to over tighten. but when you look at the reaction we saw on friday, which is tighter labor markets from jobs data, that

that was larry summers on china's decision to abandon its covid zero stans.tephen engle explains the risk of dropping the policy and a quick manner. stephen: while hong kong has served as a blueprint for china's opening up from covid, it is also a huge cautionary tale. when the omicron variant swept through this modern city of 7.5 million earlier in the year, the city's sophisticated health care system was overwhelmed. at one point, hong kong had the world's highest death rate due to covid. there simply wasn't enough space to put all the patients or bodies. some of the sick were put outside on gurneys, as body bags with the deceased stacked up in some wards next to infected living. wards were inundated. most of hong kong's nearly 11,000 total covid deaths happened between february and april of this year. like hong kong, china has a largely under vaccinated elderly population, but on a much larger scale, and china, too, does not have the more sophisticated mrna vaccinations available. >> we have to remember that china has been protected from the public for so

harvard political -- professor larry summers warned that the almost $2 trillion stimulus plan was three times as large as the projected shortfall. he said policymakers need to ensure they have plans in place to address the possible and quite serious problem of inflation. instead of taking time to analyze the impact that additional government spending would have on inflation the biden administration continues to pump money into the economy and inflation continues to worsen. september 13, 2020 when the august numbers were released showing a .3% -- 8.3% inflation. biden hosted a party for the inflation reduction act. in just a few days later on cbs president biden told the american people that inflation was increased by just an inch. if the white house thinks this is what we need to raise -- measure inflation by, the american people think this is what we need to measure inflation by. president biden with an attitude toward the american people's suffering is acceptable we are working to conduct real oversight, the house republicans on this community -- committee we have written multiple let

larry summers says 6% not out of the question. this is not the surprise markets are looking for. i thought about 50 basis points versus 75, the one economist at 75 might be back on the table. the dots are more in focus. the median -- what will it be at the september meeting? haidi: we're watchful of what is going on in china when it comes to the clarifying outlook for oil demand, we saw over the weekend, the city suffered under the stringent lockdowns, dropping requirements. most things like public transit and public areas, parks and the like. this is seen as one step is joining other cities like beijing in easing some of these measures. partly in response to the public protests we saw just last week. the formal dropping of covid zero, march is when we have the national people's congress. after that is done we will see a formal dropping of covid zero but it will be key to watch. given we know the amount of turmoil a lot of economies are like, australia, singapore had to deal with this after they emerged from restrictions. annabelle: certainly sending a bullish signal through to c

>> did you hear about larry summer >> i did >> larry summers has been right. >> i thinks he thinks we need to be higher. is 3% going to kill me >> 3% inflation? >> no. >> everyone would be happy if we got to 3%. >> what is the 2 thing since when is 2% perfect >> i ithink if you get to 3%, th fed would say that's enough. >> 3% is 50% higher than 2%. >> 3 looks better than 7 nothing is happening this morning. i'm surprised. that was in the cards. opec countries agreeing to stick with the production cuts let's get to brian sullivan. if he doesn't go to vienna, he goes to brussels brian. >> reporter: joe, a lot going on and i thought your china discussion was really important because it layers into today let's get into everything that is happening no, we are not in vienna opec meeting virtually yesterday. a smaller part of the overall story. let's walk through what is happening with global energy as we are in brussels he hello, poland. they were joking about coal. calling it coal-land we know it is not the full number 900,000. they are not adding production all at a time when the european

this week special contributor larry summers on the jobs numbers and

>> let me say this is exactly what larry summers has been talking about now for over two years, stagflationersistent inflation combined with slow or no growth at all and it is what people are talking about. i had mike wilson from morgan stanley on and he said away from energy there is no earnings growth. you are only talking about growth in earnings in one sector. the rest of the earnings picture in the s&p 500 has seen earnings eaten by inflation. we're going into the new year with expectations we'll see a sharply slower economy, perhaps a severe recession if you listen to jamie dimon or brian moynihan. he said recession for sure. it's a debate if it will be severe or something that is not noticed by all. but we are going to see slow growth, we'll see employment go higher. that's what we're seeing now. inflation, even though it's off the highest levels of the year, it is still pretty elevated and when i said when you go inside the producer price index, the things we buy are much higher than 7.7%. a dozen eggs is up 43%. that's a serious number. >> dana: and people buy it every day so they'

so, you know, economists such as larry summers have advocated for unemployment ratess high as 10% toation. when you unpack what that actually means, that means in unemployment rates of nearly 20% for black workers. that means families not being able to put food on the table food, which is already too expensive because of rapid corporate profiteering. william: you mentioned several things that contribute to this, the war in ukraine, profiteering. let's say that we have an example of you jacking up prices here and thus we are going to do x about that. what would you prescribe? rakeen: we do have a lot of evidence that profiteering is happening. you know, my organization and i have listened to hundreds of earnings calls and what we hear on these earnings calls is very clear. you know, ceo's are very forthright to their investors that inflation has been good for business and that they are raising prices on consumer in order to bring in record profits. i mean, just today, we saw the highest profits on record for nonfinancial corporations in the u.s., $2.08 billion. and so, you know, i thi

washington working, first for janet yellen in the white house council of advisers, and then for larry summers and geithner of the us treasury. so between 1998 and 2000, there was the peak of the asian financial crisis that became then global for emerging markets across board. and i wrote about it. i that policy worked and eventually i wrote book about the financial crisis, emerging markets. but then there were also times where slowly, slowly there was the beginning of having financial crises also in advanced economies, you know, you had the dot com bubble and then the bust we had when i was in the white house, the collapse of yeltsin and the contagion to russia and, we were worried about russia and clothing at that time and the geopolitical consequences of that or pakistan imploding. there was a nuclear state and there were other crises in the advanced economies with the peak of it, of course, being the global financial crisis. but over time, i realized that you cannot be just an expert of economic monetary, currency and financial matters, because politics, geopolitics, law, technology, clima

larry summers says beijing's abandoned covid zero could be the biggest policy shift in decades.n to make predictions on the applications of that change. -- implications of that change. >> we only know two things. we know that a big change in china happens because of an expression of popular will and protest. that is a profound thing for the governance of that superpower with 1.4 billion people. you are quite right. we do not yet know how this is going to work out. is this going to be a successful rejoining of the reality of the rest of the world? or is this going to lead to catastrophic delegitimizing performance of the chinese health care system? and we do not know, but either way, there is a big chance that china is going to be a different country six months from now than it is today. i think all of us are always watching china carefully, but we need to be watching china much more carefully over the next six months when you're going to be seeing leadership change. below the level of xi jinping, of course. at the same time that we will be seeing the biggest set of policy experi

>> it is the biggest policy shift according to larry summers, it's huge. huge stimulus measure from china reopening the economies is what many economist up and calling for because it didn't matter how much stimulus, how many interest rates to pboc cut or how much money at throughout the financial system, that wouldn't work if you had a closed economy and people weren't keen to borrow or invest in the economy. what we do need to signs of whether that's working. we get a dataset from china for the month of november. it's a set of data that has been overtaken by events. you had a guest to earlier saying that it's expected to be weak, but it's also expected to be the bottom. let's see if that goes forward. that will be the catalyst that markets this. shery: a preview of what to watch in the chinese markets as we head towards that economic data dump from beijing. that's it from daybreak asia were markets coverage continues as we look ahead to the start of trade and hong kong, shanghai and shenzhen. standby for bloomberg markets: china open. this is bloomberg. ♪

well, he's certainly gentlemanly about it, not someone who comes on and says, he's not larry summers. he's a smart guy, but not a bull in a china shop. not even a bull. not a bear in a china shop, either >> we look at futures down pretty substantially this morning. >> please,that's people who didn't pay attention yesterday >> then i also have people say to me this morning, ifflation has peaked, is growth really going to retract that dramatically >> who is saying inflation has peaked >> i don't know. >> what happens is there are industries where wages have to come down, and there will be a bit of a new cycle for some people a bunch of research today about how, look, you have to look through theproblems. now, i don't buy that. i'm just saying, can we please give him something that isn't, hey, it's not as bad as it was he doesn't want that he doesn't want plateau. he wants rollback. because inflation is too high. he made it much more clear yesterday what he really wants which is he is not going to settle for a couple cool cpi numbers and start things up again. wages, wages, wages. >> tho

as you suggested, you know, we're very careful not to wade into the independent fed policy, and larry summers of this was very complimentary of our white house last week precisely for this point, we know history is just absolutely littered with economies that have been brought to their knees by compromising the independent independence of the central bank i think the model that is being followed, that goldman sachs has laid out and one that i pay attention to, slower gdp growth, that's the transition to stable growth that president biden talked about months ago, that leads into slower job growth, which we've seen, you know, we did have a strong 260,000 job gain in november, but that was, you know, hundreds of thousands below the previous november. feeding into slower nominal wage growth, feeding into slower price growth and i think if you look along that trajectory, you can see the data flow supportive of that transitional model >> jared, do you think that the resilience of the job market, or the -- it doesn't seem to have been affected yet by historic rate increases, and i would think that's

that is what larry summers has been saying all along. >> the 10-year treasury? >> 3.56. >> that's what i'm watching. i may not read that article. >> you and alan greenspan. >> yes more and more similar to alan. >>> meantime, you were mentioning chips are a big conversation in the next three hours. taiwan semiconductor, the largest computer maker of chips saying it is tripling investment in the united states promising to spend $40 billion on two manufacturing hubs located in phoenix, arizona. the white house saying the plant should satisfy demand for chips across the country that will happen by 2026 today, tim cook will accompany president biden at the phoenix site ceos of nvidia and apple will be there to discuss tim cook was in washington at the state dinner with president macron we are watching the guest list. >> has had a lot of conversations with elon musk emmanuel macron. >> elon flew to d.c. between a stop in florida for the art basel. >> of course >> you track the niflights now. >> we know people that were there. comcast people got the nod. mccarthy was t

wish chairman powell back in 2021 had agreed with former treasury seculary summers -- secretary larry summers and opposed this stimulus. next, the biden administration's war on energy and employment has made it harder to get back -- people back to work and harder to find and produce the badly needed oil and gas, get it out of the ground and on its way to heat our homes, fuel our communities and support our allies in europe. finally, the federal reserve itself kept interest rates too low for too long. while also purchasing trillions of dollars in government securities. now the fed is left playing catch-up in the hopes of beating inflation in the short run without damaging our economy in the long run. madam speaker, i have a better approach. earlier this year, alongside my friend and colleague, congressman daniels of florida, i introduced h.r. 7209, the price stability act. this legislation would ensure that our central bank focuses exclusively on its principle mandate of price stability. this bill repeals the 1970's so-called dual mandate whereby the fled is conflicted, supposedly focused on p

but let's remember that democrat economist larry summers warned us, and the majority, time and again, dismissed these warnings. aside from focusing on the damage these bills did to our economy, another concern of mine is how the administration is implementing laws congress has passed, including iija. this administration is not following the letter of the law and is instead using rules and guidance materials to impose partisan policies throughout the process. looking forward, my focus will be on oversight of iija as well as the transportation-related provisions in the arp and the ira to ensure taxpayer funding is spent wisely and according to the letter of the law. i look forward to hearing from the witnesses today. chair defazio: now i would like to welcome the witnesses. sara nelson from the association of flight attendants, greg regan , stephen gardner from amtrak, the general manager of trimet, dr. adam hersh from the economic policy institute. thanks for being here today. i think this is the first hearing where all the witnesses are actually here in person. i cannot think of anoth

summer. the other three will be drained slowly in 2024. larry: congress passing landmark legislation to protect same-sex marriage. an east bay mayor stepping up to help families. his last big act before leaving office. the gift of a hug, but not the touch of a human. kristen: don't be scared. [laughter] for back pain, i've always been a take two and call in the morning guy. but my new doctor recommended salonpas. without another pill upsetting my stomach, i get powerful, effective and safe relief. salonpas. it's good medicine. we've got our vision... ...and so much to choose from. but with free in-store design services our budget and our time are well spent. at floor and decor, with a wide selection of products all at everyday low prices, creating a space to match your taste has never been easier. discover floor and decor today! last week i stepped in a bear trap. creating a space to match your i should really get rid of it. but... i'll make do. just like i make do without home internet. besides, my phone gets the job done. sometimes. it's not t

works department told me -- and i thought this was interesting -- summer is when they see more graffiti because kids are out of school. larrys sense. supporting business obviously a good idea, but the reality is people are going to come tagged the buildings over and over again, so what is the city going to do to try to stop that? lyanne: exactly. it is not considered a criminal act to tag a building so you will not see people going to jail but in some cases when they are caught on camera or video, they are able to charge them for the cost for the damage. some businesses are attacked over and over again at that point, they are either encouraged to put lights with sensors, video cameras to try to deter people, but again, another cost to small businesses. larry: thank you. kristen: the city of san francisco has its first new chief of protocol in five years of -- in five years. charlotte felt held -- charlotte scholz held the position for 50 years. she died recently. the new officeholder grew up in san francisco and is a long time advocate. doordash is adding to tech layoffs as the bay area. they say they will lay off corporate

one of those three sons is larry, who was raised to work hard, spend summers working on poultry farms that are common this that part of our state. that hard work would later drive him and his 41-year career in public service. larry's career started as a young man in college at the university of delaware. he and i were introduced in 1982 by jim souls, legendary political science professor who we both greatly admired. who would later run for the united states house of representatives for our at-large seat. i had been delaware state treasurer, came out of the navy, moved from california to delaware at the end of the vietnam war. i got an mba and went to work and got elected state treasurer at 29. six years later, i was running for congress. we have one seat in the house of representatives. i needed a right-hand man who could not just keep up the pace of the campaign, but actually get behind my plymouth horizon and drive it all over the state, to be my driver and my body man in a campaign for u.s. house of representatives. when jim souls, professor of political science who had run unsucce

jason furman, for example, larry summers. they both happen to be smart economists who served president obama. they are suggesting that in order to get this high inflation down, if we just depend on the federal reserve alone, that we will have to have an unemployment rate of between 7.5% and 10% for a pretty long period of time. that's anywhere from eight to ten million americans out of work. and that's a lot of pain. now, what can congress do to help? if you look at the worst of those ten periods of inflation, most people, i do, think of the 1980's. and most people consider paul pl volcker to be a hero because the then-federal chairman got inflation down. a lot of people think that the chair of the federal reserve then did it all by himself by raising interest rates so high causing unemployment to go up so high causing a lot of pain, he didn't do it alone. congress helped him. when the reagan administration came in, the first thing it did, it cut taxes which was ininflationary -- inflationary. no question. but then the reagan