let's bring in lizzy burden who joins us from the labour party conference in liverpool. s been talk about the bank stepping in, how likely is that? lizzy: traders are pricing 120 basis points of hikes for november, which implies an interim meeting move. on friday, some were saying the bank of england needed to step in this week to regain credibility. you have a former bank of england policy maker saying the boe would step in if the pound fell. the chancellor said he would answer his economic gamble by adding even more tax cuts to the fiscal event he announced friday, which of course is funded by borrowing. that is the crucial point for the pound. even though jp morgan's allen meeks said he did not think an interim meeting move was likely, he expect more hawkish talk from governor andrew bailey to try and reassure markets. the reason they wouldn't step in is because they would not want to be seen to be reacting to more fiscal policy than inflation or adding to the panic. but the panic is already very much there. dani: if we don't get the interim meeting hike, where does it

lizzy burden joins us from buckingham palace. what is the atmosphere like at the moment and what is the plan over the next few weeks, especially as it pertains to politics and their ability to continue to handle with what is being laid out as an energy crisis in the u.k.? lizzy: the sun is just coming up at the king and pallas, but even before it did, people were here having a quiet moment of -- coming up at the king him palace, but even before it did, people were having a quiet moment of reflection here. liz truss pledged allegiance to the new king over the weekend, and she will accompany him on a tour of britain over the next week. tomorrow, the coffin will move here to buckingham palace and stay here through wednesday, when the state funeral will be on the 19th. the coffin will lie in state and to the public will be able to file past. some newspapers are estimating one million people will pay respects, filing past, creating queues, some say five miles long. that will pose security challenges. joe biden and his wife confirmed t

lizzy burden joint is from the labour party conference in liverpool, what has truss been saying over the weekend and what has been the response? lizzy: quieting has set over the weekend that he would add to the fiscal event announced friday with even more tax cuts funded by borrowing, and that is offensive to market since the fall in the pound this morning. he said markets will react as they well, that is what is happening, ignore at your peril. boe traders now seeing 150 basis points of hikes in november, which implies an intra-meeting hike. our forecast now sees 100 in november if we don't see an intra-meeting hike. it means the bank of england and treasury will be pulling in opposite directions. there is also the question of whether the bank of england will put the brakes on active gilts sales to stop an overwhelming of the market, but there worry for andrew bailey would be that it looks that he is responding to much to fiscal policy. deutsche bank on friday was saying it is going to be necessary for the bank of england to regain credibility and step in. this really is a gifted to

francine: let's bring in bloomberg's lizzy burden with the latest. ill the opposition leader, keir starmer's, line of attack do today? lizzy: he is likely to focus on energy because this is top of the list on liz truss' entry. she is planning 200 30 billion pounds worth of support for consumers and businesses, but throughout the campaign, truss has said she was against handouts and she would prefer tax cuts. starmer pointed that out and he can also try to open up the party division there. but also, he could go for her on leveling up. this is a key slogan in boris johnson's 2019 general election campaign. she is riding his mandates now, so she did not even mention those on downing street, although she did note and infrastructure commitment. the key is for liz truss to hold onto conservatives if she wants to stay prime minister. francine: boe officials will be meeting this morning, so what can we expect from that? lizzy: it is going to be an interesting session. liz truss is the prime minister because she said that she blames the bank of england for the

let's get to 10 downing street where lizzy burden has been there following the story. what are your main takeaways from the contest and her speech? lizzy: it was a narrower than expected victory, but liz truss will be britain's third female prime minister. in her acceptance speech she spoke to the tory party members who selected her as leaders. she thanked boris johnson and said her priority was tax cuts along with the energy crisis at the national health service. she is going to have to broaden her appeal to the general electorate if she wants to last longer than the bookies are saying she will. she will have to call a general election. it is due in 2024, the last deadline is 2025. the speech was scant on details but that is what millions of britons are after because they are facing energy poverty this winter. that is what is causing triple digit inflation in the u.k. and it is only set to climb. in the coming weeks we are expected more details. she is expected to announce a package of support on the scale of the covid furlough program. the trouble with that is it woul

lizzy burden joins us from the labour party conference in liverpool. what are you hearing about the bank of england and what it does next? lizzy: sky news reported earlier that the bank of england was going to be making a statement. it has not come yet. bloomberg has not have that confirmed that we can expect one today. what we could get is talks. jp morgan's allen monk says that's what he thought would happen rather than emergency hike and that is an option. the other alternative is they could put the brakes on active gilt sales. that is what we are expecting they could do in the thursday meeting but they decided to press ahead with quantitative tightening. we are waiting for the bank of england to reassure markets. even one of liz truss'economic advisors is saying kwasi kwarteng needs to do more to reassure markets. he said on friday markets will react as they will. i've been going through the archives. in 2012 george osborne as chancellor says he gets a daily verdict on the credibility of economic policy from bond investors, very much keeping an eye

chancellor, and lizzy burden at downing street. quickly, a couple of individual movers including ashtead. this is a company that rents out construction and industrial equipment. centrica moving up after the news from liz trust and volkswagen acquiring an ipo. more on that -- more is coming up. this is bloomberg. ♪ >> will deliver on the energy crisis dealing with people's energy bills but also the long-term

in the meantime, we turn to lizzy burden,

bloomberg's lizzy burden joins me now. the economic challenges that face the next trimester. >> to put in historical perspective, it is worse then theresa may got post-brexit, worse than david cameron got. you have to go back to the early 1970's to -- for historical comparison. you got double-digit inflation, goldman says it could hit 22% next year. it is driven by this energy crisis, there are warnings that more than half of u.k. households could face energy polity. people are asking for higher wages, they have some bargaining power is a but they are not feeling the benefit because inflation is swallowing them up. the bank of england is responding with rate rises, they could rise above 4%. this is painful for folks who thought they had locked in rock-bottom rates. the foundation said yesterday this could be the -- the boe thinks a recession is on the way , seeing two years of no economic growth. anna: a lot of economic challenges facing the new prime minister. if liz trust is -- >> she prefers tax cuts over what she calls

tom: lizzy burden at westminster, thank you for that interview.nt to get you up to speed with hong kong entering its third hotel quarantine from september 26. from three days' time they will be ending mandatory hotel quarantine. they are now focusing on ensuring international visitors and hong kong residents can get back to that city easily. the other headline, visitors that are not vaccinated can enter the city and hong kong will scrap pre-arrival pcr tests. a significant shift following for conan measures, and they have the blessing from beijing to go ahead with this. hotel quarantine ending step number 26 in hong kong. singapore overtaking hong kong, to become asia's top financial center, and third in the world. that story is next. this is bloomberg. ♪ francine: welcome back to the open, 52 minutes into the european trading day. we are looking at european stocks, but a a lot of commotion on fixed income, we are looking at the btp and bund spread, and a lot going on in currencies. european stocks are down some .4%. singapore has overtaken hong k

joining us now is lizzy burden, talk us through the next few days? zzy: francine, the protesters are here already. we're expecting the result at 12:30 london time. this will be the fourth prime minister in six years, and likely to be the third female prime minister in british history, liz truss. next, she will go to the queen's scottish estate to meet the queen. so wilt boris johnson. and then she will come back and give a speech here at downing street. it could actually be behind the black door this time. the expectation is you will focus on the urgency of the cost of living crisis. wednesday, she will meet with her cabinet to discuss how to deal with the crisis. she is expected to unleash a program on a similar scale of the covid furlough program, and then she will face prime minister's questions in the house of commons. but the challenge is staying there because she will have boris johnson and rishi sunak on the back bench. she will have to keep an eye out for a confidence vote. she will have to pivot from appealing to conservative party members, t

let's get out to bloomberg's lizzy burden.do we know about what will be in this fiscal package? >> a lot of it has been leaked. we are expecting measures centered around tax. liz truss has said that she wants simpler lower taxes. we are expecting a constellation of the tax or even a corporation tax. we are expecting a reversal of the pay rise tax. that has already been announced. we could see the property tax rise. we are expecting measures to boost budget. all of this is intended to boost growth. we are expecting parting at the growth target. the worry from economists is that this is not going to hit the growth target. it will lift inflation and will add to borrowing at a time when the pound is weak and interest rates are rising. dani: markets are pointing out that there will be an update from the debt management office. today, bloomberg says it will be some 60 billion pounds worth of issuance. this is all on the back of your very long day yesterday with a 50 point -- 50 point basis rise. how does this change everything? >> t

lizzy burden outside threat needle street. closing out the hour with reaction. looking at continued red, continued weakening in euro and a record dollar. more markets to come. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ >> good morning, welcome to bloomberg markets europe. i'm anna edwards

tom: bloomberg's lizzy burden outside threadneedle street. let's get to the cio at bluebay asset management who for some time now has been calling this startling bear -- sterling bearish bet. to some degree saved by the boe, but are you surprised we are not seeing more declines toward parity? mark: the thing to point out, we are in a situation where you either control where the pound goes for where interest rate goes. ultimately i think the pound is going to be moving weaker. fundamentally, the real issue is around interest rates. if we end up with mortgage rates going dramatically higher, it could end up having the reverse effect. i think an intra-meeting hike is when to be very likely. if you end up with the bank of england need to go to an inter-meeting hike you are looking at a loss of confidence in the truss government. this is a difficult situation but the silver economic -- sober economic analysis at this stage is not enough to cause the bank of england to step two an inter-meeting rate hike. i think we will be sliding back towards par

manus: let's bring in lizzy burden. she was watching that news conference. good to see you. the big question is, a lot of channels talking about the caps yesterday. it's the debate about who pays for this in terms of the energy intervention. isn't it? lizzy: indeed. this is her first big act as the new prime minister. dealing with the energy prices which is at the heart of the cost of the cost-of-living crisis. documents suggest it will cost 200 billion pounds in terms of helping consumers and businesses. as we heard from the boe officials yesterday, it could help to bring down inflation in the short term. the big question is how you will pay for this. she seemed to rule out a windfall tax. later on, it seemed that she would increase or extend it. that means it's going to require a huge amount of borrowing. what we heard as well from andrew bailey at the treasury select committee was that perhaps they are going to have to put the brakes on active quantitative tightening which brings us back to what the former chancellor told liz trust on bloomberg tv. the markets are watchin

dani: bloomberg's lizzy burden there. the bank of england's dramatic intervention took global bond traders by storm, and bounced stocks as well. let's get to bloomberg's executive editor for asian markets, paul, it seems like in trying to solve one stock we ignited a different stock? -- shock? paul: the biggest take away is how huge volatility in cross assets is. in the big bond markets, how easily prices have moved in both directions. we are all rates traders now, we are all beholden to these risk-free rates, but they have a lot of two-way risk. that is filtering across everything else in global markets, the boe increases in yields, denting currencies, then slamming it all back in the other direction. it raises -- for pushes down the tolerance levels, i suppose, for anyone that has a model for assessing their positions. it takes more liquidity out of the system and makes everything even more fragile. dani: which is terrifying considering liquidity in the bond market had all but evaporated. it sounds like what you're sayi

joining us is lizzy burden. walk us through the choreography of the next few days. >> we are going to find out who has won the contest at 12:30 p.m. today. this will be the fourth prime minister and the u.k. inside see years and it is likely to be the third british prime minister in history. over the weekend there has been a discernible shift in tone and the u.k. newspapers from what liz truss would do if she was prime minister what she will do and that is since voting closed on friday. tomorrow boris johnson and the winner will fly to bal moreal to see the queen after which liz truss will make a speech behind the black door or in front of it and address her priorities. it is expected to be the urgency of the cost of living crisis. on wednesday she will run her plans to deal with it past her new cabinet and have her first cabinet meeting before she goes to prime minister's questions. the report is that she will announce the package on the go of the covid furlough program. the challenge is going to be staying in

lizzy burden and julian jessup, thank you for your time. it was the biggest ipo in europe in a decade. the first day of trading for porsche. joining us is jefferies global auto analyst. this is bloomberg. ♪ >> we do not expect a slowdown because of the recession effects because we are well-positioned in the portfolio for the next years looks very stunning. so we are looking very positive to the future. guy: porsche ceo speaking outside the frankfurt stock exchange earlier. the company went public earlier on today and ipo valued at $73 billion and out the door at $82.50. coming in towards the end of the day. jefferies global auto analyst joining us now to give us his take, this seems on a day when the market is falling apart as it is it seems to have gone quite well. what is your take on the ipo and what should investors be doing. buying or if they haven't, selling. >> it's a difficult day to go to the market. seemed like they had shares in the beginning. i think what to do with shares. porsche is a fully formed business. we've known for a l

let's get straight to 10 downing street, where lizzy burden is standing by. main takeaways behind her victory and what she said? lizzy: she was very much still appealing to the tory voters who chose her as leader. she said she admires her friend boris johnson, a line which prompted a silence typical of her speeches. she also said her priorities were cutting taxes, dealing with energy, the national health service, so very much addressing that tory core. but she is going to have to pivot her message to the general public if she wants to stay in power because she is going to have to call a general election by january 2025 if she is to stay on. labour at the moment would win a general election. she is going to have to broaden her message because more than half of u.k. households face poverty at the moment. because of that got double-digit inflation at the moment. it hasn't even peaked. the bank of england is expecting two years of negative or zero economic growth. so what we are expecting to come up is a package on the scale of the furlough scheme in the covid pa

lizzy burden joining us from westminster. joining us to discuss more is a lecturer in law at langley university. he is an expert in u.k. constitutional law and politics with a focus on the monarchy and parliament. thank you for your time this afternoon. do you think the royal family, do you think the country, do you think the world will ever see a royal event like this again? >> i think it is quite doubtful. i think so much of our view of monarchy has been shaped by the reign of the queen, and this might be in some ways the old monarchy's last hurrah in that the international element of the monarchy might be likely to diminish in the years ahead, with some of the commonwealth realms choosing to be republics, and charles himself slimming down the monarchy. we will likely retain the monarchy in the years ahead, but it might be more of a european style where everything is down the down attach. -- dialed down a touch. something as spectacular as this may not happen again. alix: can you talk about what that would look like, a mona

lizzy burden starting out at the bank of england early on. very smart analysis prayed thank you very much indeed. we had this coming through. the shares of credit suisse under a little bit of pressure, we around 50 minutes away from the close. stocks moving sharply. their report to may be looking to exit the u.s. markets. there was basically a restructuring plan that's been formulated at credits west at the moment. a lot of things moving around at the moment. all kinds of plans it seems being potentially tested right now with the markets. we will talk about that later on. joining others by raising rates but only by 50 basis points. this is bloomberg. ♪ >> inflationary pressure increased. the inflationary forecast plus included the interest rate hike. we came to the conclusion to the right time to tighten monetary policy moving from negative to positive. guy: thomas jordan, the snb chair. raising 75 basis points today. the market seems like it wanted even more. other central banks being more cautious. we spoke with the central bank governor on

joining us now is lizzy burden.is the issue, the economic challenges that they will face once they enter office? >> this is a worse economic situation than theresa may inherited post-brexit, worse than david cameron has post financial crisis. you have to go back to the early 1970's. you have to find a decent historical comparison. it could go past 22% next year. you have got this largely driven by the energy shock which could be the new normal. energy bosses warning that more than half of households could be an energy property. they have got bargaining power because of the labor shortage is adding to the inflation but they cannot feel the benefits because the inflation is swallowing wage growth. the boe could hit 4.25% but it will be a nasty shock for anyone who is a borrower use a rock-bottom interest rate and then put it all together and the foundation told us yesterday that it could be the worst squeeze on living standards in a century and the boe is seeing two years of zero or negative economic growth. dani: we

let's get straight to anna edwards and lizzy burden, outside of westminster hall.e are watching videos of the last person going to the queens lying in state, after multiple days, multiple hours of folks waiting on line. tell us the significance of who we were watching and that part of the ceremony. anna: yes, bringing to a close days of lying in state, days and nights of lying in state during which hundreds of thousands of britons and tourists have paid respects. we just saw the last lady to pass by the coffin. we also saw the lady usher following the last person to bring the process to a close. she generally maintains order in the house of lords. that brings to a close the public display of emotion and commitment to the royal family. today we see more pomp and ceremony, a real future the past 10 days of morning. we expect upper session at about quarter to 11:00 london time, a procession to leave from the 500-year-old you to flee lit westminster hall where the body has been lying in state for some days, we expect that she will be carried in a carriage to westminste

lizzy burden joins us now.ere staked out right by the seemingly never-ending line snaking through to see the queen lion and state, capped off by her funeral in windsor. going through it all, what stood out to you in this period of mourning? lizzy: standing and listening to the organs from the funeral, you can hear it from where we were west of westminster abbey. what stood out to me from the funeral service was how much thought went into it. this was obviously years into planning and how much it said what meant most to her. she let the people in. this is the first fully televised euro of a british monarch ever. just as her coronation had been almost 70 years ago. it was interesting how she was honoring her people, in that she had people who had received the victoria and george crosses among all those foreign dignitaries from around the world. joe biden, the emperor of japan in westminster abbey. also, the huge not to the commonwealth with the procession from westminster abbey led by the canadian mountie. every

lizzy burden. from new york, this is bloomberg. ♪ joe: here's the first word.charles iii delivered his first address to the united kingdom and the nation. he paid tribute to his mother's queen elizabeth ii legacy and vowed to continue her service to the country. >> queen elizabeth's was a life well lived, the promise of destiny cap. he is mourned most deeply in her passing. that promise of lifelong service i renewed to all today. joe: he also expressed his love for princes william and harry.

now we are joined by bloomberg's lizzy burden. >> goldman sachs and bank of america now seeing 75 basis points. it is partly because of the inflation we had yesterday. a new all-time high for august. it implies that is broad-based. it could start to show you some raw data. this not just about what they have been saying. the fed has been very clear about their messaging in jackson hole. we have to be clear. it is a guideline, nice decision. the chief economist was still very cautious about his remarks this week. you should see that reflective in the market today. manus: thank you. that will go down with economics. stacking on the narrative. prepare for epic finale. those are the words of that legendary investor as smart tragedy looms over markets and how the bubble may bust. some here, equity markets arriving in numbers. some have seen a soft landing. it is a great piece. >> yes. if they are not going to go downward, the rally we have seen is a fantastic bear market rally. we indicated there is a lot more to go. a soft landing at 3400. we also have to factor in the fed stopping the hikin

we are joined by bloomberg's lizzy burden. what is the jobs report tell us? zzy: it is the lowest three-month unemployment rate since 1974, 3 .6%. economists have not predicted any change about tightness and the labor market persisting. the unemployment rate is something prime minister boris johnson, before he stood down, showed off about on the steps of downing street. he said it was the lowest pay what this means for business is it is putting pressure on wages and making it more expensive to do business, and it is more difficult. in reality this is not necessarily a good thing, and economists say because of the energy bailout, the risk of that overheating the economy will mean the bank of england has to keep rates higher for longer to take steam out of the labor market. francine: the treasury wants to .5% growth, and the limited scope of tax cuts. lizzy: this emergency mini budget we are expecting is separate from the energy bailout. this is an opportunity to for fill those promises that liz truss made through the campaign. the question is, how much will the

for more, we are joined by lizzy burden outside the boe for us today. 50 or 75, what is the boe going to be doing today? lizzy: i have to say, economists are not as hawkish as mark. they see only a half-point, i say only, it would be the biggest back-to-back increase since black wednesday. the reason they see only a half-point is because of all the week data -- weak data, may have had time to digest that because the meeting was delayed because of the sad news of the queens passing. but they also reckon liz truss' energy bailout will soften the long-term low if inflation. you might see that in the inflation forecast. officials will hit they see inflation weakening lower than the 13% they have seen in october. the flip side with the budget we are expecting tomorrow is they can necessitate so much borrowing, that the bank of england today puts the brakes on active quantitative tightening because officials have previously said they are not going to sell gilts in a time of market turmoil. we are watching the exchange of letters between the chancellor kwasi kwarteng and andrew bailey as to

lizzy burden is live from buckingham palace. what is the atmosphere like and what is the plan? y: good morning. people have been calling since before -- people have been coming by since before the sun came up to take a moment of reflection and pay their respects. later today king charles will travel to denver on gray service of reflection and tomorrow the coffin will be brought back to buckingham palace before on wednesday until the funeral confirmed for september 19. the queen will lie in state. people will be allowed to file past and pay their respects. the u.k. newspapers are estimating that three quarters of a million people will come by and do that. the cues could be hours long. thank diana and the queen mother -- think diana and the queen mother and multiply it by 10. francine: politics and the u.k. taking a step back. the be awa -- the boe has postponed their decision. lizzy: figure showing an increase in economic output in july. a technical bounceback from the decline we saw in june which had been hit by the bank holiday to celebrate the platinum jubilee. a sad reminder

lizzy burden was at downing street, how much of the energy bailout plan was leaked? omberg has got its hands on lots of the documents. they are going to cost to hundred billion pounds, this is support for consumers and businesses. we want to know how much is going to be targeted, how fiscally wasteful. and also, how is it going to be funded. liz truss in her first standoff with the opposition leader keir starmer yesterday. she was asked whether the windfall tax would be continued, another bloomberg scooper because treasury analysis we revealed showed that if the energy tax were to be continued. because of the excess profits and war in ukraine, you could rake in tens of billions of pounds. she seemed to rule out pmq's, but then a little bit of a roll back later in the day. but also, how much borrowing will this necessitate. francine: they have one plan for the economy and she needs to address cost-of-living. but the chancellor has gone full swing ahead, let's read -- let's deregulate. lizzy: also being much softer on the bank of england. he is seeing he sees independen

. >> joining us is lizzy burden. what will the new prime minister do tomorrow?can we concretely expect? >> the document seen by bloomberg suggests she is going to unveil an energy bailout to the tune of up to 200 billion pounds and this will be support for consumers and businesses to help them with their energy bills. the consumers at least are set to rise by 80% next month. what we are wondering is how is she going to spend it. the first prime ministers question their, keir starmer went in about the windfall tax and the scoop revealing the analysis that shows the current windfall tax were to continue because of the excess profit, it would bring in tens of billions of pounds to the treasury that can be used to help people to the cost-of-living crisis. so he was asking would you use that money for energy support and it sounded as though she was saying no she wouldn't. but we now understand she will continue. it's a bit of a head scratcher about not using the windfall tax issues not planning to increase or extend it to power generation. guy: details. so far i have

lizzy burden of bloomberg joining us.will come back to you later in the show for an up date as we wait for liz truss to speak. coming up, oil's brief rally really cooled off. janine way of senior barclays emp analyst will be joining us. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ alix: we got the ism services index at the top of the hour, yields higher, stocks down. abigail doolittle is tracking those moves. >> we have declines at this point. for the premarket, we are looking at decent increases. we have that first up monday since june, nasdaq real

for more on all of this, we are joined by bloomberg's lizzy burden.u look at the data that we had, it is also pretty weak, but today the pound levels are to what we saw prebudget. lizzy: the pound is more to do with the fact that the bank of england has showed it is willing to step in. the second quarter gdp figure is well construed, but what we are expecting is in the third quarter for the slump to begin because this is when we had the national bank holiday for the queen's funeral, the somber national news weighing. on the sentiment. and what we also had this morning from the house price data nationwide, showing no growth from september, so you are already starting to see the weight of inflation, rising interest rates, likely to rise even higher because the recession risks remain in the longer-term. tom: and this is having a political cost. we saw that remarkable poll yesterday in terms of the lead from the labour party versus the tories. what is the move when you speak to conservative mps leading up to the party conference next week? lizzy: this is

let's also bring in lizzy burden outside westminster hall where the queen lies in state.esterday, president biden paid his respects to the monarch. he will be among many looking at this unprecedented gathering of world leaders in the u.k. capital. anna: a huge gathering of world leaders. you mentioned president biden, he paid tribute to the queen talking about how she was just as you would expect to find her in reality. also saying that she reminded him of his own mother, which was seen as touching. it was thought he might have a meeting with prime minister liz truss, but that has been delayed until the united nations later this week. so the focus is very much on the business of the day. upbringing 10 days of mourning to an end, with the state funeral of queen elizabeth ii. the early arrivals are just starting to make their way. we still have a couple of hours until the start of funeral proceedings. attenders will have not just president biden but leaders from many countries around the world. not russia, myanmar, north korea nor belarus. but many european countries sendin

lizzy burden joining us from bloomberg. the skidmore with ray newton smith. what does this mean for british businesses? will we see the kind of reinvestments we need to see to help growth despite what is happening in the economy? >> look at, i think it is important that the government set out an ambitious target for growth in the u.k. but now we absolutely need to deliver that hand i think an important part of that was some of the incentives they set out for investments so keeping corporations tax at 19%, keeping the annual allowance at one million pounds per year. that will help drive investment and growth in the u.k. but i think this is only the beginning. there is more that needs to be done around skills, around the business rates, so many other parts. importantly we need to have some of the medium-term credibility around the fiscal rules and fiscal part. i think businesses will be looking for that over the coming weeks. guy: we have seen the cost of borrowing surging today and the pound collapsing. that cannot be good news for british business. rain i thi

with us now with the latest is lizzy burden. a lot, what do we know. >> we had the statement from buckingham palace which also did emphasize the queen's comfortable but if we read between the lines, of the queen's health is usually treated as a private matter so it seems to be a very serious moment. all of her children or grandchildren are at the castle in scotland where she is. at -- this week she received boris johnson and liz truss to accept boris johnson's resignation and bring in liz truss. that was a break with tradition. now we see perhaps why. the queen also yesterday condone -- convened a meeting of her counsel after being advised by the royal doctors to rest, that was another clue to what might be happening here. people around the world really had a moment of anxiety about britain's longest-serving monarch. >> we will be watching any headline reports as the situation does unfold. thank you. that wraps it up for me and guy. , coming up the governor from new jersey joint balance of david westin on bloomberg television an

that's bring in lizzy burden, who was with us. mood seems pretty grim heading into the conservative party conference. lizzy: grim, awkward, alarming. the pole that you mentioned is going to be worrying. it is the biggest poll lead any political party has had since the 1990's i think, more than 20 years. but this is because of the physical plan that fiscal plans. you have tory mps that he is pleading with to get them on the side behind them. some of them in fact calling on resignation after than less than a month in office, just to give the political cover to reverse their plans, but it doesn't look like he is going to do that. we have heard from clotting trust -- that they are digging in. they say that it will lead to growth. listen to this on bloomberg tv. >> we have seen markets be volatile before. sometimes these things can become a vicious circle where people unnecessarily when there is change or something unexpected. lizzy: it is an uncomfortable scene setter for the tory conference. some of the big political heavyweights will

lizzy burden joins us now from the labour party conference in liverpool. talk about what is happening. this is a government that is determined to be bold and brave, it is being both. the market response has been brutal. how is labor looking at this as an opportunity, how is british business thinking about the chaos that is raining -- reign ing? >> i could not quite hear you. what it seems, the labor party -- the chancellor, the business secretary, both of them on bloomberg tv today. the message is, the markets can trust them with the economy. rachel reeves emphasizing her record in the form of boe economists, emphasizing she understands why markets matter, including the cost of borrowing with the government. jonathan reynolds trying to make his pitch to business, why business would be supported under a labor government. it is a difficult pitch for him to make, the tories are dangling this big corporation tax cut. the labour party has got to separate itself from its reputation under jeremy corbyn, in terms of the relationship with business. this is the mess

lizzy burden, bloomberg news, westminster. haidi: next, we are counting down to the ethereum merch.search joins us to discuss just how big the stakes are. this is bloomberg. ♪ >> the ethereum merge is a really big story. it is finally here, and that gives energy to the space. >> growing proof of stake is a huge step for ethereum. it makes the network more secure, it is using less energy and ready to be much more scalable. >> ethereum's energy and consumption will go down so it will go from being a big problem to basically not a problem at all. >> whereby in the past you could hold your ethereum and use it but if you were an institution, now you can steak it and earn yield on it and that will definitely be a turning point for ethereum. >> we have been much more excited about ethereum in the last month or two than bitcoin. >> i am personally really in love with ethereum. >> i don't necessarily think proof-of-stake is a great thing in the short run. >> what i care about is that the merge is successful and that this upgrade does not have a technical glitch. >> it will be as smooth as if

lizzy burden has been covering this. she joins us now at westminster.us through the parts of the market objective to the most. there was a lot unveiled here. >> yes, you've got a massive tax cut. the chancellor trying to boost growth across the energy bailout had been announced. the reason this is such an economic downfall, first of all, because markets reckon it is going to -- inflation. traders are pricing for 100 basis points for the bank of england in november. it is clearly going to anticipate a lot of borrowing while it is going to add to borrowing, it won't necessarily stimulate growth significantly. they biggest/to tax cuts since -- slash to tax cut since 1972. it is a political gamble. this is happening in a cost-of-living crisis, two years away from an election. not a lot of time for liz truss to prove herself to her voters. a lot did not choose her. because of the tax cut, analysis -- if you earn more than 155,000 pounds a year, you earn -- you win. if you earn more than one million pounds a year, you will be 40,000 pounds a year better off b

jonathan: lizzy burden and maria tadeo, thank you. futures up .7%.this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ jonathon: the inflation report in america 60 minutes away. a rally in this equity market continues to build. over the last four days, higher by about 5%. yields are lower by about five basis points. let's call it 331 on a 10-year code -- 10-year. across the curve, yields are lower. in the market, once more, all that dollar strength. going softer, weaker, negative against the euro-dollar. tom: how rationalize 4200 spx? we are not a million miles away. dear member q2? we

lizzy burden, bloomberg news, westminster. >> take a look at how these are trading.ot of movement when it comes to the aussie and kiwi dollar. this as we had the dollar pretty mixed. we had the key leading the declines or the gains on the others. it little bit of weakness right now while the offshore you want is past that seven level. we continue to see the weakness. we are expecting to see the china yuan. today, after the pboc did a move this month, but they already cut in august. we are also watching the turkish lira. amidst the wrath of policy decisions from central banks, the turkish central bank is not expecting much change in the rate at 13% after the bank. surprise craig -- surprised rate cut last month. incredible inflation in turkiye. 's president erdogan unorthodox policy continues. that is leading the lira to close to record lows. haidi: coming up in the next hour, volatility will persist. we have more on that shortly. this is bloomberg. ♪ >> from the world of politics to the world of business, balance of power with david westin, news and analysis, insight

with us is lizzy burden in liverpool. you are at the labour party conference. n you tell me where sterling is trade -- if every mp has the bloomberg app on where sterling is trading? lizzy: everyone has asked me where the pound is out so they are certainly not ignoring the markets despite kwasi kwarteng saying markets will do what they will. the shadow chancellor rachel reeves has been making it clear that the labour party can be trusted if they are the next government. it is the same message from pat mcfadden, the shadow chief secretary to the treasury that they will be more credible. they are trying to set out their vision. we need to be convinced that they can afford all of the funds they are sending out as well of all the public spending. over the weekend, the labour party said they would carry on with the proposals from the tory government, including the cut to basic income tax and the reversal of the rise in the payroll tax. they have scrapped the top rate cuts but they are very expensive purchases. jonathan: given we also have the conservative party confe

right now the belly outside of the bank of england in london, lizzy burden joins us. -- lizzie joins the prime minister needs to quote unquote address the nation. how is she doing that on local radio this morning? >> it is her choice to go around to local broadcasters and speak to them. she is dodging difficult questions from financial globalists. she's going to talk to us but there is a lot of difference of local rates and they seem to be good -- doing a good job. in the she was asked how she slept last night, told all of the things that it going on in recent days and that she was asked where have you been? they are doing a good job of putting pressure on her. her answer has been, i believe in my tax cut and we need to keep going with them. that is not going to read -- reshore financial markets. jonathan: do they understand why financial markets work whipsawed -- more whipsawed in the last couple of days? lizzy: i can explain if they understand it. she seems to have a clear understanding of the impact of the gilt market not only on the government but ordinary people. but the whole p

we have to talk about the united kingdom and lizzy burden has been covering this.his is a package that is causing the complete reset in u.k. assets and creating a reset and some of the social landscape of this nation. what sticks out to you in this vast plan put out by liz truss's administration? lizzy: the truth, a whole lot of our viewers in the u.k. got a lot richer. you have kwasi kwarteng scrapping the top rate of income tax, he scrapped the cap on banker bonuses, 45 billion pounds worth of tax cuts. if you earn more than one million pounds a year you're getting a tax cut next year, which is twice what a typical earner earns in a year according to the resolution foundation. he is doing it while he is cutting benefits for people not doing enough to find a job in the middle of a cost-of-living crisis, all in the name of growth, which is a huge gamble. politically liz truss says she does not mind being unpopular but she has to be popular by the election in 2024 and it is an economic gamble as well. you talked about the tanking bonds, the tanking pounds. we spoke

jonathan: lizzy burden is coming back with us. ay to westminster hall. it is approaching whitehall. this is the queen sharing her old adage. she needs to seen to be believed. the coffin going to arrive at westminister hall and she will lie in state until monday when the funeral happens. people are going to be able to file past and pay their respects. they have been queuing for days despite the rain and the warnings of the 30 hour queue. the king is going to begin his reign with the sharing of the national outpouring of grief. you have got this king flanked by his children, his siblings on foot behind the coffin. it really is a symbolic moment. it brings back the memory of when william and harry walked behind their own mothers coffin 35 years ago. tom: the imagery is as you would expect. we are seeing generational imagery. this is the first time we have seen the generations of her descendants together. i think we are having some audio problems. tom: we have lost lizzy. jonathan: it is quite the moment for this country. the queen's c

am very pleased to say lizzy burden is standing by. what have we cardi? -- what have we heard?e said that they are giving 2500 pounds per year. this is going to be a huge relief to households. it is convenient that it is going to last for two years from october, when there is a general election do in 2024. but this is the new normal. we have the former chancellor on the program and he was saying that people need to change their behavior. the market needs to adapt. but the government is going in and subsidizing the wholesale cost. tom: is this bipartisan or is this the conservatives alone? >> i was having a discussion with an economist about this this morning. the parameters of the situation mean that this is probably the only likely outcome. we had the energy crisis at the heart of the cost-of-living crisis. they had to stop inflation going about 20%, as goldman sachs has predicted. the announcement from bloomberg economics is that this means inflation has peaked. lisa: there is a lot of agreement that there needs to be fiscal support for households. there is not necessarily ag