United sell it seats and helped many other nations with lower inflation futures up 22 this morning. The heart of Bloomberg Surveillance is a

quality of our guests always in every case. And as you spoke to Dr. Yardeni moments ago we speak now to

Jeffrey Sachs to say he’s economic professor at Columbia University barely describes his contribution. I want to make note that he was 10 years

out front on the collapse of American education and the struggle of two Americas. But Jeff I must digress to your take on

the war in Ukraine and on the Russia you knew so well under Yeltsin. You’re in the Atlantic this week and they’re equating you with Mearsheimer of

Chicago as the realists out there. What should be our response to Mr. Putin with your thoughts on war and aggression after the human atrocities

that are reported. Yeah I was attacked in the Atlantic for hanging on the sock on the side of peace and I confess I’m on the side of peace.

I am very worried that we are on a path of escalation to nuclear war not nothing

less than that. We have a essentially a war in which

Russia feels that this war is at the core of its security interests.

The United States insists that it will do anything to support Ukraine’s defeat

of Russia. Russia views this as a proxy war with the United States and whatever one thinks about this.

This is a path of extraordinarily dangerous escalation.

And I am very sure. Right. You left this with Yeltsin. You were there for Gorbachev and Yeltsin

and the rest. I remember when you got off the airplane at JFK essentially shattered over the collapse of that first experiment.

Do you have a feeling that Mr. Putin is alone. Is his military in support of him. A lot of the world is watching the

events in horror. And a lot of the world doesn’t like this. NATO’s expansion which they interpreted

as at the core of this they want to see compromise between the U.S.

and Russia. In vote after vote in the United Nations basically it’s been the Western countries that have been voting for

sanctions and denunciations and other actions whereas most of the world certainly most of the world counted by population is on the sidelines.

They just view this as a horrible clash between Russia and the United States. They don’t view this as we describe it in the media as an unprovoked attack by

Russia on Ukraine. That’s where anyone in the United

States. That’s him. What else is it. But that’s because the way that our media have been reporting this. This conflict goes back a long time but

didn’t start on February 24th. 2022 would go. In fact the the war itself started in 2014 not in 2022 when even that had

antecedents. And so most of the world doesn’t see it

the way we describe it. But most of the world is just terrified right now frankly because it’s unbelievable to be hearing on one side.

Well we’ll use nuclear weapons if we need to win the other side saying that you can’t frighten us. Well and Professor DAX I share that

concern. And I’ll be honest I spent the weekend also reading articles about the U.S. coming up with counter attacks and

proposals of what they would do in response to some of these attacks. You know it’s definitely a big concern. It’s also an issue as you see the sea

change in the economic trajectory in Europe and beyond. And some of this does come from the energy crisis.

But suddenly we’re talking about inflation that we have not seen since World War Two since potentially another time of incredible distress military

intervention. How close are we to some sort of I do want to say hyper inflation but persistent inflationary impulse well

above target in Germany in the euro area as they look to these alternative ways

to suppress the peripheral region from getting out of control as they raise rates in the front. Well Europe is in a very very sharp

economic downturn. The sharp decline of output in living

standards also shows up as a rise of prices. But the the main fact is that the European economy is getting hammered by

this by these sudden cut off of energy. And now to make it definitive.

The destruction of the Nord Stream pipeline which I I would bet was a U.S.

action perhaps U.S. and in Poland. This is going to .. Stop there. That’s that’s a quite a statement as

well. Why do you feel absolutely that that was a U.S. action? What evidence do you have of that? Well first of all there’s direct radar

evidence that U.S. helicopters military helicopters that are normally based in Gdansk were circling over this area.

We also had the threats from the United States earlier in this year that one way or another we are going to end Nord Stream.

We also have a remarkable statement by Secretary Blinken last Friday in a press conference. He says This is also a tremendous

opportunity. It’s a strange way that Asari it’s a strange way to talk if you’re worried about the piracy on international

infrastructure of vital significance. So I know this runs counter to our narrative. It runs.

You’re not allowed to say these things in. In the West. But the fact of the matter is all over

the world when I talk to people they think the US of it what you want.

And by the way even reporters on our papers that are involved tell me

privately you’re not. Well of course. It doesn’t show up in our our media ..  Professor.

But I want to get into tit for tat about what did or did not happen with RTS because I don’t have the evidence and we don’t have a counterbalance to this.

There is an issue though that’s at the heart of what you’re saying which is a lack of trust in the United States a lack of cohesion in allies in the midst

of incredible political as well as economic strife. I mean do you see the likelihood of working together at a time when there

are such disparate interests and feelings of distrust. The biggest problem is that we have major geopolitical conflict.

Not only U.S. and Russia but also U.S. and China. So I end again with a tremendous amount

of provocation coming from the U.S. side as well. So we’re breaking any sense of stability right now for the moment.

Many in Europe are saying well the U.S. is our closest ally. We need to hold on. But watch what’s happening politically.

There is an upheaval in Europe. Country after country right now we’re entering a period of enormous instability and word unstable in the

United States as well. We went through an insurrection where we’re still not past that. So we’re entering the most unstable

geopolitical era in many decades. We’re entering the first hyperinflation

in more than 40 years and we’re entering the first escalation to the nuclear

precipice in 60 years. 60 years. Exactly. This month was the Cuban Missile Crisis.

And this is the most dangerous moment since the Cuban Missile Crisis.

It’s an extraordinary overload. And we see no attempt to tamp this down

to quiet it down. Every day is about escalation. We’re going to defeat the other side. We have our rights.

We can stand up what we want. We have Speaker Pelosi flying to Taiwan. So many provocations in the midst of huge instability.

Jeffrey I’ll leave it there. Jeff Sachs thank you so much. Greatly greatly appreciate it John. We’re getting a fiery response from this

interview. Are you surprised. No I’m not. And you know this is what we do. It’s surveillance is a different opinion out there.

And I would call it small but there’s a considered opinion out there internationally along his line again about the expansion of NATO.

Too far too fast. I’ll be as diplomatic as I can. Can we clarify. What we do is surveillance.

We speak to experts about things that they are experts about. That’s an economist not a rant about international relations.

I will say it was a rant about international relations. But Jeff holds a special spot because he was the lead economic adviser to the

failed Yeltsin experience. He has a huge Russian study now. After that you’re right. We are in a lot of things there that are

controversial. I heard very little about the actions of Vladimir Putin. Yes I heard very little about the

rhetoric coming out of Russian leadership. I had very little about any of those things. And as for the article in The Atlantic the journalist at The Atlantic picked a

quote from Jeffrey Sachs and the quote was as follows Since 1980 the U.S. has been at at least 15 overseas wars of choice went through several of them.

While China has been a none and Russia only in wants Syria. Beyond the former Soviet Union. Now that of course excludes Georgia and

of course excludes what’s happened in Ukraine back in 2014 also and also in a sense opens the door to say well it wasn’t beyond the former Soviet Union.

So Georgia and Ukraine is okay. I think Tom incredibly incredibly

complex. Some of the accusations that The Economist is making about international relations without any of evidence behind

it whatsoever. The reason I’m deeply uncomfortable with someone like that saying those things is because they’re presenting no evidence

other than saying people don’t want to talk about it because it runs counter to the popular and to that to the Nord Stream.

Somehow that is right about the evidence was very if it turns out to be right then it turns out to be right. But as a journalist you don’t say those

things unless you have evidence to say that he’s not a journalist. And that’s why those things are not being said.

But he’s not a foreign policy expert either. And we shouldn’t dress him up as well. Coming up that he open with speak to a

bond market expert about Bonds belief on premise. FTSE. From New York this is Bloomberg.

Keeping you up to date with news from around the world with the first word and Lisa Mateo. It’s a humiliating reversal for British

Prime Minister Liz Truss. She has now dropped a plan to cut taxes for the UK’s highest earners. Just 10 days after it was announced the

move was Truss’s attempt to fend off a rebellion in her own Conservative Party. Chancellor of the Exchequer quasi Gauteng tank says the tax cut plan had

become a distraction. In a tweet he wrote We get it and we have listened. The European Union is hoping to reach a

preliminary deal today on a new sanctions package to punish Russia. Poland’s ambassador to the EU said it would likely include the political

backing for a price cap on Russian oil. Bloomberg’s learn that Hungary has been an obstacle in the talks. The death toll from Hurricane Ian

continues to rise. According to the Associated Press at least 68 people have been confirmed dead.

All but seven of those were in Florida. President Biden will visit the state on Wednesday. Ian was one of the strongest storms to

make landfall in the United States. That’s the latest attempt to consolidate the British telecom market. Vodafone says it’s in talks with S.K.

Hutchinson Holdings about a comic combination with rival three U.K..

Now the deal would involve a combination of the two companies UK businesses with Vodafone holding 51 percent Manhattans. Even charging sites now outnumber its

gas stations more than 10 to 1 according to data from the U.S. Department of Energy. The bureau has about 320 publicly

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Now gas pumps still dominate citywide global news 24 hours a day on air and on Bloomberg Quicktake powered by more than 2700 journalists and analysts.

I’m Lisa Mateo. This is Bloomberg.

He’s done a great job of reducing its short term dependence on Russian gas. And so I think that the added threats will create upward price pressure.

It will continue that. But the recessionary fears the rampant inflation that you all have been talking about that creates a downward price

pressure that keeps us more in balance. Virginia Mayor John Hughes global head of energy KPMG and really definitive on a race university and with their

military experience on international economics and politics of hydrocarbons

with futures up 32 Dow futures 231 the VIX comes in. Finally some optimism on the VIX thirty one point four five.

But it would you wouldn’t write home on at least help me here with the economic data that we see. It’s a it’s a deluge and we have some

numbers. Farrell tells me they’re important. They are important especially given what we have seen with services slowing down

in tandem with goods. We’ll get that later. We also get a bunch of housing data this week.

But obviously the main point of the week is going to be a labor market report that non-farm payrolls coming out on Friday.

How much does that really point to a slowing labor market. We heard there’s some stunning numbers from Bruce Kurzman. Thank you for that. The gentleman from J.P.

Morgan right now. No pack in our pack. Plus we go to World Kennedy who knows more than me.

And it’s real simple Will. It’s about as you Bjarne Biran Brunei Kazakhstan Malaysia Mexico Oman South Sudan Sudan and Russia is OPEC plus.

And yet everyone focuses on the path from Moscow to Riyadh. What does a path look like this morning. Well as you say there are 23 countries

in this big OPEC plus group Tom. But the two that matter have always been Saudi Arabia and Russia at its heart. It’s an alliance between Riyadh and

Moscow to the world’s two biggest oil exporters. And I think the fact that the meeting in person shows that it’s very important

for Saudi Arabia to keep this alliance going to keep the group together and to

really think about what policy is going to be in the year ahead as we have huge things in the backdrop that you know global slowdown tightening

monetary policy higher dollar which is putting huge pressure on oil prices. The development of the war in Ukraine. And it’s going to be very interesting to

see how radical a policy response we’re going to see at this meeting the first face to face meeting since the pandemic on Wednesday.

Well how much political pushback is there going to be if a big plus does go through with a million barrel production cut hike which is what we were talking

about just months ago in the face of still inflation concerns worldwide.

Wildfires are coming off a lot since the summer. And I think that’s a concern clearly to OPEC producers and there is there is

some worry that the world may be a little bit oversupplied but it’s a little hard to see that when you look at the numbers.

Demand is still fairly robust. But clearly

OPEC feel the need to get ahead of things. So it will be interesting to see how Washington reacts. A million barrels a day I think it’s worth pointing out it’s almost 10 times

the rate hike that came out of that meeting between Biden and Mohammed bin Salman earlier in the year. How much is Russia going to be a part of

this particular OPEC plus meeting. Well the Russian energy minister be in person with them for this meeting. We don’t know yet.

That’s not clear. We’re still trying to get a final list of those people that will participate in person and those people who will

participate virtually. He has been sanctioned by the U.S. but it’s important to note he is not under sanctions in the E.U..

So it’s very possible that he will be able to attend if he wants to. Well we are ever so fortunate to have you here with your team’s work in

Denmark and around the North Sea and over to the Baltic as well on Nord Stream and all of the upset of the rupture.

I don’t know if you’re aware Will. We just spoke to Jeffrey Sachs in a hugely controversial interview where he basically implied the innuendo that the

U.S. and Poland were involved in some form of rupture or damage to the pipeline. And it’s created a firestorm for

surveillance on Social. What is Bloomberg’s reporting on the damage of Nord Stream to. Well the reporting is that the damage is

so severe that it will be very hard to ever repair these pipelines although the Russians have said recently that it would be reparable.

We do not know for certain who did this. That’s the important thing to say. But we do know it is sabotage and it was

done deliberately. And it is hard to understand why those countries would want to would want to do that.

Beyond that I don’t think we know. I think we need to wait for people to investigate. And it’s interesting that I think

Sweden and other nearby countries are putting assets in play that may have a look at the pipeline and determine exactly what happened because beyond the

fact that this was done deliberately. We do not know how it was done until we know how it was done. We cannot say definitively who did it.

I’ve seen the reports of Sweden with. I’m going to call it undersea robots and

even divers going down to look as it may somewhat close. Yeah that’s right. And it’s possible it is.

That that’s where we can send people down that probes down there and. Right. You know if that happens we will quickly

be able to probably build a picture of how this was done. And as I say once we know how it is done we may get closer to knowing for sure

who did it. Although a lot of people have their views and many people in Europe including the Poles have pointed towards

Moscow. Will Kennedy thank you so much for your reporting into all of your team following this hugely controversial

story. What a firestorm we saw off of the conversation with a gentleman who was with Yeltsin years ago but has changed

over the years. Well it becomes very difficult. First of all it’s really important not to make any allegations without tangible

proof. If we do not have tangible proof which we do not then we should not be making this whole sessions. And I think that that’s full stop. And I think whoever we have on it

applies to them as well. There is an issue at this moment as you try to figure out who did it and what is behind it is the potential for

escalation and that kind of concern whether with respect particularly to Moscow. Right.

I mean especially with fingers pointing there of what kind of response this is and the fact that we’ve got energy ministers in the European Union speaking

in Luxembourg and talking about how do we deal with a very difficult winter. And the idea that we cannot rely on Russia anymore at all for energy needs.

I think you’ve brought it up really well. The calendar matters and it is the first business day of October and all of a

sudden winter is upon us. I’ve seen different reports. And you know they’re as good as the weather in New York City.

I’m really not sure other than it is frankly is Professor Sachs mentioned it’s a sobering time. We can all agree on that.

It’s a sobering time. And I think that you know his remit at least in terms of what he’s a professor in economics it’s a fund out for a very

interesting time in there as well. In a revolutionary time if you take a look at inflation rates unseen since what we have seen since World War Two at

least in Europe. How do you grapple with that after becoming accustomed to Federal Reserve intervention ECB intervention on the

other side on lowering rates further. And that has always been the playbook. And this is a totally new world playbook as a date is we go to the jobs report on

Friday. And what we can say is sterling with a bid continuing years through the morning we had a 111 Lisa now 112 25 stronger

sterling off the news closer and even yen is stronger as well against pretty

much flat dollars this morning. So here’s one big debate. How much will Japanese officials be willing to come in and keep that same

reporting. Yes. If it is it it was a 45 or is this just a controlled weakening in order to wait

to buy time for the dollar to depreciate. Going to go. We’ll talk about it tomorrow. But one calculation is the wealth of Japan is so great they’ve gotten many

tranches of intervention they could do if they choose to do it. The eventual move slow continues on radio and television on this Monday to

jobs day on Friday. Stay with us. This is Bloomberg.