i'm ritika gupta. a policymaker in europe set further interest rate hikes may be needed.ders begging for u.s. data that could mean less tightening in the u.s.. this after their fastest pace of consumer price growth on record. twitter saying no to the latest elon musk effort to cancel buying the social network. they called his latest suit invalid and wrongful. the billionaire said company treatment of a whistleblower gave him another reason to walk away from the deal. cathie wood, warning about the risk of u.s. auto debt. saying that the problems meant that people wouldn't prioritize paying car loans if they went back to the 2008 2009 initial crisis. used car market finally softening after prices skyrocketed during pandemic. and a wall street tycoon plans to eliminate jobs this month. letting go employees based on performance every year, matching the banks need. they had paused of the pandemic. alix: thank you so much. i love that goldman sachs story. couple of things we have to understand with it. is it the normal culling of jobs? or is it the we don't see the deal market

i am ritika gupta.his is bloomberg. ♪ >> that could be necessary to move the fed funds rate up above 4% by the end of next year. i do not end his abate the fed cutting the fed funds rate target next year. jonathan: that was loretta mester but it could be anyone on the fit. alongside tom keene i'm jonathan ferro. bramo will be back on tuesday i am told. apparently it is long weekend stateside. anna edwards alongside us. on the nasdaq we are down a little more than 1%. the hits keep coming. we can talk about the chipmakers later. let's talk about the lockdown in a city in southwest china. 20.9 million residents. the hit the boards are taking every single morning. tom: right now in hong kong, they are even talking about blowing up what is an attempt of major meetings and their financial capital because of covid. jonathan: maybe they make a move there. i want to talk about sterling. a weaker pound sterling. here is the number. 1.1582. 1.15 after the weakest month for pound sterling going all the way back to

i am ritika gupta. this is bloomberg.nt to bring in bloomberg macro strategist, you can listen to him all day on the terminal. vincent, is this a function of the dollar being strong, or china being so weak? >> a function of china being -- dollar being stronger. you are seeing it across many different -- yield is $.99 this morning, other issues. pound is down, 116. dollar-yen, the strong dollar is having an impact on a lot of currencies. some, more than others, depending on your individual situation. china as you mentioned earlier, with 62 million people in lockdown is not helping, and that is putting pressure on the economy. guy: manage decline, that seems to be the process. manage decline to where? >> good question. it is months, weaker currency looking historically, we are approaching seven, likely to yield soon. i do not think the pboc is going to want to see the currency on that back handle. we do not know when exactly, that is a very, very big tool for a central bank to use. a more powerful tool to use then the centr

i am ritika gupta.eal valued at $20 billion, the biggest ever takeover of a private software company with an acquisition that will help the buyer expand tools for creative professionals. allowing customers to collaborate on software as they build. tennis star roger fedor is retiring from the sport. injuries and surgeries in the last few years taking their toll. he said that his appearance in london next week will be his last competitive match. a tentative deal to preserve what could have been -- prevent a damaging railroad strike in the u.s.. saying that railroad companies and unions representing 100,000 workers came to an agreement on 20 straight hours of negotiation. the governor said the deal balances the needs of workers and the national economy. they got one of their key demands. that is your latest business flash. alix: appreciate that. i want to go now to greenville yard with our correspondent on the ground. is this the real deal? kriti: it's interesting, but the deal started there was a lot of q

i'm ritika gupta. coming up, an executive director joining bloomberg tv. bloomberg. ♪ alix: -- ritika: keeping you up-to-date, here is "first word." it was the final moment for the woman who reigned over her country for 70 years. the funeral of queen elizabeth ii today. her cough and was transported by carriage to westminster abbey-- coffin was transported by carriage to wins mr. abby. hundreds waited for hours to pay respects. president biden said u.s. forces would defend taiwan if there were what he called an unprecedented attack a race of pledge of support as it seeks to counter china for pressure on taiwan. russia is hitting back in the u.s. over stalled negotiations on a preventer swap--prisoner swap involving wnba star brittney griner and another jailed american. in august the biden administration offered to exchange griner and former marine paul whelan for two questions jailed in the u.s. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am bristow group to

i am ritika gupta. this is bloomberg. alix: thanks a lot.t another aggressive rate hike next wednesday. economists predicting 75 basis points, a full percentage point. that could unleash more blood to. the markets. joining us now is the mizuho securities usa chief economist, steven ricchiuto. 25% of the market is betting on 100 basis points. steven: the economy is clearly suffering from the interest rate environment. on top of this, the federal reserve is planning to move a lot more by the end of the year and therefore exhilarating to get there when we are already seeing significant negative impacts, i think, is something people are just pushing the envelope a bit too far. i think the low probability is 50 or 100, much less than the 25% probability that the market is anticipating. guy: what do you think the language is going to be like, what is the communication strategy going to be around 75? aces-point hike? ? the communication steven: -- what do you think the language is going to be like, what is the communication strategy going to be aro

i am ritika gupta. this is bloomberg. ♪ >> we need to show we will deliver over the next two years. i will deliverable plan to cut taxes and grow our economy. i will deliver on the energy crisis, dealing with people's energy bills but also dealing with the long-term issues we have on energy supply. jonathan: we are striving to see the plans. that was liz truss. look at these numbers. 130 billion plus another 40 billion. for household energy bills. $40 billion for small businesses. that represents the annual nhs budget. that is a proposal from the prime minister. tom: the ratio analysis is important. finally the renminbi nears seven yuan. we are almost there. jonathan: interesting market this tuesday morning. futures up .8%. on the nasdaq up .9%. yields of four basis points. euro-dollar unchanged, up .1%. euro-dollar .90 938. tom: a common theme of labor day as -- how was your beer this weekend, joe? joe: we like to call it the bay waters where i come from. tom: we could go on. we do not have enough time

i am ritika gupta.resident biden has given a preview of what his campaign message will be in the run-up to the congressional election. last night he accused donald and republicans who back him as endangering democracy. pres. biden: donald trump and the people who represent him threatens the very foundation of our republic. ritika: kevin mccarthy accuse the president of slandering all republican voters. today, u.s. jobs report could tip the scale toward a third straight jumbo sized interest rate hike. according to a bloomberg survey, 290 thousand jobs in august and the jobless rate stayed at 3.5%. that matches the lowest in five decades. those figures could be enough to meet the fed to raise interest rates by 75 basis points to fight inflation. bloomberg learned the group of nations are preparing to back a price cap on global purchases of russian oil. the u.s. says that will eat energy market pressures and thrash overall revenues. finance ministers are expected to formally back the plan today. nasa will

i'm ritika gupta, this is bloomberg. guy: thank you very much indeed.itor what is happening. let's get back to some of the business news. amazon has breached america's television last big stronghold. the first service to obtain exclusive season-long rights to the nfl. with us now, media and advertising analyst for bloomberg intelligence. over here in the u.k. i've been watching football, tennis, rugby on amazon for quite some time. how big a step forward is this for amazon? >> amazon has had some streaming deals in the past with the nfl those were all really small. this is the first time they're getting access to a major football package, the thursday night football package and so it's really a watershed moment i think for the whole media landscape because they will now be broadcasting to an audience of about 20 million or so on average who watch these nfl games. so it's definitely a big deal. >> it is huge. what is amazon hope to get? are the good hope you will buy toilet paper on their website because of this or be a prima member. what's their endgame

. ♪ alyx: it is time to look at some of the biggest to start -- >> i'm ritika gupta.n -- the world's biggest tech investor is slashing a minimum of 100 positions earlier this year. south korea's new u.s. rules for american-made electric vehicles and batteries as a per trail. that is a -- a betrayal. that is according to an official in seoul. that could hurt korean brands like hyundai. they chipmaker that supplies some of the biggest companies in the tech industry have a strong report that suggests broadcom is sidestepping a downturn in chip demand. alyx: on the semi index,, the stocks got killed this week, falling as much as 10%, but some investors were contrarian. you look at this chart that shows three times chart -- you can see they declined we have seen, but the blue line on the bottom part of the chart has been taking backup. the moving average has been taking backup. it seems like investors were trying to catch a falling knife there. in broadcom world, that seems better than the likes of nvidia. tom: indeed. you had all that negative news around nvidia. broadcom

i'm ritika gupta. forces still control the so-called don ask -- as soon as this weekend. and its allies have denounced the referendums as illegal and few countries are likely to recognize the results. hurricane fiona has exposed puerto rico's fragile power grid area the storm caused a general blackout that affected the entire u.s. territory of 3.1 million people. the power outages hit just as puerto rico's electric our authority is dealing with a bankruptcy that has no clear end in sight. britain's new prime minister liz truss says a trade deal between the u.k. on the u.s. is unlikely in the short to medium-term. she says she will focus on alliances elsewhere. truss spoke to reporters whilst flying to the u.n. general simply josh -- general a simply. -- general assembly. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. alix: thanks very much. world leaders gathering this week in manhattan for the united nations general assembly high-level debate, the first entirely in person gener

i'm ritika gupta, this is bloomberg. looking at porsche because it's attracting so much demand for the landmark ipo that a must have the investors that put in orders were not allocated shares of the deal. one of the largest european ipo in over a decade. the president of -- capital management and manages assets under management. investors think porsche is a prize asset but on the other hand you have a sea of red looking european markets. why is more of the macro not spilling over into the concern porsche is today. >> because it spilling over. you can see those people selling the stocks. secondaries right now. i think it highlights where the value is and where people can look in the next three or four years which is asset rich businesses. it's been trapped in kind of a convoluted german corporate structure. at the same time if you look at the market caps, it's trading for a couple billion euro off of what volkswagen does as an entire entity. it's liquidity is disappearing and people are looking for cover. guy: why would y

i'm ritika gupta, this is bloomberg. alix: thanks.is spared as the semiconductor route continues. we've had warnings about demand, of the philadelphia semi index. outpaced the broader tech sector something over 10%. where's the bottom for the sector? joining us is paula from bloomberg intelligence. thanks for joining us. where's can you be the -- where's the bottom going to be for this? >> nvidia is situation shows the government is really helping regulations for the whole sector which is why the whole thing traded down. on top of that has more lockdowns in china. with the consumer declining, and now we are also seeing the more resilient side of the business which is the enterprise servers. tom: i'm looking to buy a car, they're still selling -- saying in the u.k. six to eight months. when's the glut we see become good news for the end demand. >> it's to take a few quarters, but the short answer is that the market is sort of bifurcated right now. on one side you have too much inventory like for instance in cpus for the consumer side w

i am ritika gupta.wagen will receive hundreds of millions of dollars in trading profits when it unloads a huge natural gas hedge. the european largest automaker will sell the natural gas it previously purchased back to the market. natural gas is trading much higher than it was when bw bought the supply. european new-car sales rose the first time in 13 months, they increased 3.4% in august. still, the good news for automakers may not last long, record inflation and an unprecedented energy crisis written to -- threaten suppliers. british airways will hold flights from heathrow airport on monday to minimize noise during could not as -- during queen elizabeth ii's funeral. that is your latest business flash. guy. guy: thank you very much indeed. there has been a huge outpouring of grief and people queuing for hours and hours here in the u.k. to pay their respects to the queen who is lying in state in westminster right now. there is also a growing sense of frustration about how big the economic shutdown has

i'm ritika gupta. this is bloomberg. sonali: thank you.ll stay with florida where ian is leaving behind floodwaters and tornadoes in its wake. commodity analyst for bloomberg intelligence joins us from miami. what are you keeping an eye on? mike: it's the significant from commodity standpoint with the major natural gas production going further out west. so that's been an issue, jumped a little bit and hasn't mattered much. it's more proudly signaling global recession. in miami specifically the micro not bad. just some flooding. a couple of trees down. i rode my bike in on tuesday, decided to work from home yesterday and wrote in no problem. not so bad here. guy: long-term is a something this regions can have to think about, adapt to and change the way it does business. or we can is see this -- are we going to have to see this shift to different area. will we see commodities more broadly rethinking this. >> i think you are right. all the storms are going up there the last 10 years. but what's happening here is orange production has been dec

i'm ritika gupta, this is bloomberg. alix: let's get more on president biden speech.tor of economic policy. is president biden to be on the defense or offense today and how is that different from the past year? >> i would say the democrats are in a sharp departure from where they were in disarray. they have secured wins of 18 points amongst the general electorate since february, driven first and foremost by the supreme court decision to overturn roe v. wade. but then compounded by a further eight point read nine point by the recent passage of the inflation reduction act improving gas prices. 334 on the way to school for me this morning way down from the highs of the summer and democrats are hoping to run with that into the election. you're seeing self inflict wounds from the republican candidates in key races from pennsylvania and georgia. republicans very much on defense and democrats on offense with president biden trying to hammer that home. >> the question of inflation. something republicans were running with at the front end of this year as something to bludgeon

i am ritika gupta. this is bloomberg.et more on the hurricane, joined by chuck, the guy you go to model certain disasters across the board. in particular, hurricane season is one of his busiest seasons. i guess the best question is, do we understand the path to understand what kind of damage we are looking at? >> there is a little uncertainty with this. it looks like we are worried most about tampa, but the focus is shifting south, the new forecast should come out and about 15 minutes. probably shift it towards sarasota or charlotte, that area. that means the tampa area is going to be on a fringe. the big fear of punching a big storm surge up tampa bay, that is a little less. the problem is, on this track, it is looking to go right up through some of the big citrus producing areas. there is phosphate mining facilities in the way. you've got a decaying storm costing disney or orlando through the i-4 cooridor, the lowest we will see is $30 billion in economic impacts. if it stays stronger inland, we could hit $60 billion. g

i am ritika gupta. alix: nasdaq 100 up 5.8%. this has been an insane couple of days.now is paul sankey. our question is, is this what a broken market looks like? you have been trading in the market for a long time, is this broken yet? >> i do not think so. the land war in europe has been since the second world war, an epic event going on there. a generational event. we have been looking at japanese debt markets for 30 years, saying, when is this going to break. it is breaking. you have might a mini budget from the u.k. that is created the pound, the speed of the moose is unprecedented. it looks like a tough set up, i have to say. guy: how much further do we have to go? you look at what is happening here, a whole series of evens unfolding around the world. from geopolitics to finance, there is a series of lines you can draw between them. i'm wondering where you think the lines go next. what is the next on that list? paul: the biggest concern, the toughest thing at the moment is low unemployment. sensibly, the global economic situation is quite good when you are walking

i am ritika gupta. this is bloomberg. guy: thank you. with the theme of what is happening in the iman day world. there is a long line of businesses facing problems with buyout. a much stickier market. mark cooper joins us now, specialist in iman day --- m&a. is this a. -- is this a period of resetting expectations after a clearing price, we can move on? is that too simplistic or is that what is happening? >> good morning. i would never say anything is simplistic. it is deeper than that. those are transactions that were made a while ago. the debt market has faulted dramatically. it is not a function of simply clearing the balance sheet of the banks so they can get into the market. it is a question of when we get to equilibrium, when do we get to a point where people are comfortable that there is a consistent view on what rates should be and the banks can absorb credit and sell that credit to the market with consistency? that will not happen for a while. alix: what does a while mean? marc: a while means, in my view, when we all believe we

i'm ritika gupta, this is bloomberg. alix: a trip conducted in strict secrecy. u.s.f state antony blinken makes a trip to kyiv, avoiding air travel in ukraine's potentially dangerous guys. what was the significance of this trip? >> it comes after the six-month mark we reached the end of august of how long the war has been going on as well as ukraine celebrating its independence day. this trip in itself, we also have at this moment the president of the united states conducting a virtual call. we haven't heard yet from the white house that that is over. also you of the defense secretary in germany with a group in this announcement talking about another drawdown of u.s. weapons in support of ukraine. i think it shows these three different activities regarding ukraine today from the administration is they are clearly trying to make sure that this still stays top of mind, especially for european partners as they go into a really difficult time. guy: is there a sense in washington that may be the potential for that to break? that the unity and solidarity will break. did th

i'm ritika gupta. this is bloomberg. alix: thank you.s saying, we are waiting to hear from liz trust. -- truss. lizzy burden is outside of 10 downing street. what will be here today? what kind of proposal will she be laying out? reporter: they are absolutely coming down downing street. she has been to see the queen and is officially now the prime minister. and the press is waiting for her now. her team has lined up to flank it. this is the moment where she will pivot her focus from the tories to the general public. we are due an election by 2024. you can expect both language on how she would deal with the immediate crises, the cost of living crisis, the energy crisis, but we also want to hear about her vision for the u.k. beyond those crises. and the u.k.'s position in the world. leaders will be listening to this speech. i wonder if she will have a message for financial markets. the news of her energy support plans, the billions of pounds for consumers and businesses. what of her broader economics? we have the former chancellor philip ha

. -- ritika gupta.he financial authority says it is not authorized to offer financial services or products in the u.k. if anything goes wrong, investors are unlikely to get their money back. no, yet from the company. european union is building on lessons learned during the pandemic, drawing on emergency powers to block audits. the vice president says the eu needs new tools that will allow it to act fast and collectively. volkswagen wants to raise $4 billion from the ipo of iconic sports carmaker porsche. it would be the largest listing this year globally. vw is seeking a valuation of $25 billion, blow with earlier top end goal. that is the latest business flash. guy: thank you very much indeed. let's continue the conversation with porsche's ipo and let's go to our munich bureau chief. let's talk the numbers, first of all. 85 to 75. is volkswagen being conservative or realistic? >> well, i think the evaluation is not like -- they don't seem to be pushing too hard on the price side of things. you mentione

i am ritika gupta. this is bloomberg. alix? alix: let's stick with the eu energy crisis.rg's rachel morrison joins us with the latest. my biggest take away from the meeting in brussels is nobody agrees on anything. what is the unity or disunity like? rachel: that is what we have seen, the reason why we have not got very much detail is because ministers knew they could not hold things up today. they cannot extent discussions for hours and hours because the pressure is on to keep this rolling. that is because the pressure is on and the timing, it will be hard to agree to something since all the countries they can all agree on, so that will be one of the main problems is trying to get that done quickly. guy: what are the biggest issues right now? where are they most divided? rachel: one is the possible cap on russian gas prices, on imports. that was probably not going to be discussed in great detail because they were expecting huge division. we were told in the detail we got that could be extended to other countries. that is going to be controversial as well. we have heard t

i am ritika gupta. this is bloomberg.ying with a theme, president biden address to the you win then roll a simile this week. he highlighted global food insecurity as russia's invasion of ukraine heightened fears of shortages. >> we are calling on all countries to refrain from banning food exports, importing grain while so many people are suffering. in every country of the world, no matter what else divides us, if parents cannot feed their children, nothing else matters. alix: let's get the view on the ground from someone responsible for transporting food and other products around the world. the president of cardell ocean transportation, one of the largest agricultural companies. this is important to get this perspective. as of now, give us insight. our ukraine's export core doors open to get grain out? >> thank you for having me. yes, the food is moving out of ukraine. the core doors -- corridors are moving. i think it comes -- guy: what do you think is next? jan: is geopolitics at the moment. that is something in that sp

i am ritika gupta. guy: more on the u.k.'lenges, european economic challenges, the inflation challenge we all face. alejandra grindal joins us now. we clearly have an inflation problem on both sides of the atlantic. let's talk a little bit about how the market is proceeding that inflation challenge. there is still this belief that inflation is going to roll over relatively quickly from here. did yesterday once and for all change that? alejandra: thank you for having me again. so, first, the good news. there are some elements that could explain that inflation, at least at a year over year rate, actually has peaked. so we have seen global demand grow significantly compared to last year, so like in the u.s. and other parts of the world, global supply chain pressures are easing. and then if you look at food and energy, which surged at the onset of the russian-ukraine war, it is down, as well. if you look at the headline number in u.s., and the headline in the u.k., it is plead the fifth, but the real problem came from core inflat