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    Fed Decision; UAW Strike Update

    enSeptember 20, 2023

    Podcast Summary

    • Bloomberg's Future Investor event discusses data's impact on investment decisions and enterprise constructionBloomberg's event explores how data influences investment choices and the creation of new businesses, while the economy, interest rates, and oil prices continue to shape headlines. The Fed's policy decision, UK inflation, and equity markets are sources of uncertainty and shifting forecasts.

      Data is playing an increasingly significant role in investment decisions and the construction of innovative enterprises, as highlighted in Bloomberg's Future Investor event series on May 7th. Meanwhile, the global economy and interest rates continue to dominate headlines, with the Federal Reserve's policy decision causing much anticipation and uncertainty. Inflation rates in the UK have unexpectedly dropped, leading to reined-in bets for further tightening from the Bank of England. The price of oil is on the rise, with Goldman Sachs forecasting a return to $100 a barrel. Equity markets are also in focus, with Bank of America raising its target for the S&P 500, and Instacart shares experiencing volatility in the premarket. Overall, the economic landscape is filled with uncertainty and shifting forecasts.

    • Instacart's IPO brings relief to equity markets, UAW strike continues, Ford avoids strike, Biden focuses on labor at UN, Drug case, American Dream lossesInstacart's IPO provides relief to equity markets, UAW strike enters sixth day, Ford reaches labor deal, Biden emphasizes labor at UN, Drug case unfolds, American Dream losses escalate

      Instacart's lowered valuation in its recent IPO, around $13 billion, is providing relief to equity capital markets after a prolonged drought. Elsewhere, the UAW's ongoing strike at automakers entered its sixth day, with the union setting a deadline for negotiations to progress. Meanwhile, Ford's Canadian unit reached a three-year labor contract with the Unifor union, avoiding a potential strike. President Biden is focusing on improved labor conditions and partnerships during the UN General Assembly, particularly regarding the gig economy and clean energy. Additionally, federal prosecutors have taken over a drug distribution case involving a Bronx daycare center, where children were exposed to Fentanyl and one child died. American Dream, the mega mall in New Jersey, has seen losses increase fourfold in a year, according to a draft securities filing.

    • New York City's Financial Challenges Amidst Rising Costs and Health ConcernsNew York City faces significant financial losses due to increased expenses, housing migrants, and potential health crises, impacting businesses and residents alike.

      The large shopping and entertainment complex in New York City faced significant financial losses in 2022 due to increased expenses. Meanwhile, New York state and city officials are warning about unsustainable costs related to housing migrants and are urging adjustments to budgets. Simultaneously, global health experts are predicting a challenging fall and winter season with potential outbreaks of COVID-19, RSV, and influenza. Residents and visitors in New York continue to deal with these challenges, as seen in the Yankees' disappointing baseball season and the Liberty's successful WNBA playoff advancement. Overall, these developments underscore the complex and multifaceted nature of the ongoing issues facing New York City and the broader world.

    • Fed's Interest Rates Expected to Remain Unchanged94.5% of economists predict the Federal Reserve will keep interest rates steady, signaling confidence in the economy's gradual recovery, while inflation concerns persist.

      The Federal Reserve is expected to maintain its current interest rates during their May 14th-16th meeting, according to a consensus of 94.5% of Bloomberg Economists. This decision is significant as it sets a tone of faith in the economy's gradual improvement, despite lingering inflation concerns. The Federal Reserve's stance may indicate a more hands-off approach, but this could change depending on Jay Powell's comments regarding wages and oil. Meanwhile, the Liberty football team is preparing for the semifinals, with Saquon Barkley's injury status uncertain, and global leaders are gathering for the Carter Economic Forum in Doha.

    • Economic Uncertainty: Auto Strikes, Inflation, and Oil PricesEconomic uncertainty continues to rise with ongoing auto strikes, inflation, and potential oil price increases, leading to potential disruptions for consumers and central banks' monetary policies.

      The current economic landscape is marked by rising inflation and uncertainty, with potential impacts on various sectors and global economies. The ongoing UAW strikes in the auto industry, coupled with increasing oil prices, could lead to significant consequences for consumers and central banks' monetary policies. The Bank of England, which had been expected to continue its hardline stance on inflation, now faces a potential pause or shift in strategy due to recent inflation data. Meanwhile, the UAW strike, though not expanding yet, continues to be a source of uncertainty for the auto industry. Goldman Sachs predicts oil prices could reach $100 a barrel within a year, which could exacerbate inflation and have ripple effects on everyday consumer costs. The potential for disruptions from the Bank of England's quantitative tightening policy adds another layer of complexity to the situation. Ultimately, the economic landscape is marked by uncertainty and the need for careful monitoring and adaptation.

    • Canadian Unions Make Progress, Khan Criticizes Sunak's Climate PoliciesCanadian unions are making progress in negotiations with Ford, while in the UK, Sadiq Khan criticized Rishi Sunak's weak climate policies and urged the creation of green jobs and a 'green new deal'.

      While the Federal Reserve is making decisions that will impact the economy, there are ongoing debates and actions happening in other parts of the world. In Canada, unions have made progress in negotiations with Ford, but the mayor of London, Sadiq Khan, criticized UK Prime Minister Rishi Sunak for not seizing the opportunity to address the climate crisis with green policies. Khan believes that governments should turn the climate crisis into an opportunity to create green jobs and a "green new deal," but Sunak's actions have been criticized as weak and ineffective. Khan also acknowledged the need to address people's concerns and concerns about political hot potatoes, but expressed hope for plans to address the climate emergency from the Labour Party and the US government. Khan's advice for Keir Starmer to win the general election was not shared in the discussion.

    • Labour Party Positioned as Business-Friendly and Pro-GrowthLabour Party leader Keir Starmer aims to rebrand Labour as business-friendly, focusing on creating a prosperous environment for businesses while addressing social injustices.

      Keir Starmer, the UK Labour Party leader, aims to position his party as business-friendly and pro-growth, contrasting it with the Conservative Party's perceived economic mismanagement. Starmer emphasizes Labor's commitment to supporting businesses, creating an environment for them to thrive, and addressing social injustices while maintaining economic competence. He acknowledges that politicians don't create jobs or wealth but can create an environment that fosters business growth and prosperity. London, despite Brexit, remains an attractive city for businesses due to its trends and resources. The Labor Party's reputation as being anti-growth and anti-prosperity is a concern, but Starmer and his team are working to reassure businesses by listening to their concerns and demonstrating their pro-business stance.

    • Going beyond surface level in sports industryThe Deal explores new angles and opens up opportunities in sports industry, available on podcasts and Bloomberg Originals.

      Producing a successful sports show involves more than just gathering well-known names. The discussion highlighted the importance of exploring new angles and opening up new opportunities. This is the philosophy behind the show "The Deal." Listeners can tune in to The Deal on their favorite podcast platforms, and viewers can watch it on Bloomberg Originals, Bloomberg Television, or BTV plus. This show goes beyond the surface level of sports, providing a deeper understanding of the industry. It's not just about stopping people out; it's about opening up new doors and providing valuable insights.

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