1 00:00:02,440 --> 00:00:04,840 Speaker 1: This is Bloomberg day Break Weekend, our global look at 2 00:00:04,840 --> 00:00:06,840 Speaker 1: the top stories in the coming week from our day 3 00:00:06,840 --> 00:00:09,160 Speaker 1: Break anchors all around the world. And straight ahead on 4 00:00:09,200 --> 00:00:12,880 Speaker 1: the program, The Cavalcade of earnings continues on Wall Street 5 00:00:12,920 --> 00:00:16,280 Speaker 1: and we take a deep dive into two closely watched companies. 6 00:00:16,400 --> 00:00:17,880 Speaker 1: I'm Tom Busby in New York. 7 00:00:17,960 --> 00:00:20,440 Speaker 2: I'm Stephen Cawen in London, where we're taking the temperature 8 00:00:20,440 --> 00:00:22,599 Speaker 2: of the European oil and gas industry as we head 9 00:00:22,600 --> 00:00:25,360 Speaker 2: into another week of big name earnings reports. 10 00:00:25,680 --> 00:00:28,080 Speaker 3: I'm Doug Prissner looking at what the lunar New Year 11 00:00:28,200 --> 00:00:30,560 Speaker 3: festivities will mean for the Chinese economy. 12 00:00:31,320 --> 00:00:34,479 Speaker 1: That's all straight ahead on Bloomberg Daybreak Weekend. 13 00:00:34,760 --> 00:00:37,160 Speaker 4: The business news you need to wramp up your. 14 00:00:37,000 --> 00:00:41,000 Speaker 3: Week available on Apple, Spotify, the Bloomberg Business App, and 15 00:00:41,159 --> 00:00:42,960 Speaker 3: everywhere you get your podcasts. 16 00:00:47,280 --> 00:00:49,120 Speaker 1: Good day to you. I'm Tom Busby and we begin 17 00:00:49,200 --> 00:00:53,320 Speaker 1: today's program with the world's biggest media company, Disney, reporting 18 00:00:53,360 --> 00:00:57,200 Speaker 1: earnings this Wednesday, and boy, there's a lot to unpack there. 19 00:00:57,280 --> 00:01:00,720 Speaker 1: Production still catching up from last year's twin with strikes, 20 00:01:01,000 --> 00:01:04,319 Speaker 1: What to do about the ABC network and other non 21 00:01:04,400 --> 00:01:10,160 Speaker 1: core units unprofitable streaming TV services, activists, investor Nelson Peltz's 22 00:01:10,200 --> 00:01:13,360 Speaker 1: proxy battle with Disney's board, news that it's selling off 23 00:01:13,600 --> 00:01:17,080 Speaker 1: most of its Indian broadcasting unit, and a real setback 24 00:01:17,120 --> 00:01:20,720 Speaker 1: in Disney's feud with Florida Governor Ron DeSantis over control 25 00:01:20,800 --> 00:01:23,839 Speaker 1: of the municipal district in Florida that includes the cash 26 00:01:23,880 --> 00:01:27,920 Speaker 1: Cow theme park Disney World. It's a lot, and for answers, 27 00:01:28,000 --> 00:01:33,000 Speaker 1: we turn to Getha raganathin US media analyst with Bloomberg Intelligence, 28 00:01:33,440 --> 00:01:36,480 Speaker 1: and Getha, what is the headline? That's a lot? But 29 00:01:36,560 --> 00:01:38,880 Speaker 1: what do you expect to see in disney second quarter 30 00:01:38,920 --> 00:01:39,639 Speaker 1: earnings report? 31 00:01:40,440 --> 00:01:43,880 Speaker 5: Yeah, Disney is a very very complex story, thom as 32 00:01:43,920 --> 00:01:47,320 Speaker 5: you pointed out, and I think you know what we're 33 00:01:47,360 --> 00:01:51,680 Speaker 5: really looking to see. There's no one specific catalyst, per se, 34 00:01:52,080 --> 00:01:54,560 Speaker 5: but I think the sentiment for this talk has definitely 35 00:01:54,640 --> 00:01:57,240 Speaker 5: turned and there's there's there's a variety of factors that 36 00:01:57,320 --> 00:02:00,960 Speaker 5: play here. I think you have some real positive commentary 37 00:02:01,000 --> 00:02:03,600 Speaker 5: coming out from them. In terms of cost cutting. We 38 00:02:03,720 --> 00:02:07,720 Speaker 5: are seeing margin improvement and we're seeing improved profitability at 39 00:02:07,760 --> 00:02:10,320 Speaker 5: the streaming business. Now, remember that there's still losses going 40 00:02:10,360 --> 00:02:14,680 Speaker 5: on there, but they're better or they're less bad than feared, 41 00:02:15,919 --> 00:02:17,880 Speaker 5: and I think the one thing that really kind of 42 00:02:17,960 --> 00:02:22,000 Speaker 5: stood out and has investors kind of excited going into 43 00:02:22,080 --> 00:02:25,280 Speaker 5: fiscal twenty twenty four was their free cash flow guidance. 44 00:02:25,280 --> 00:02:28,480 Speaker 5: And they're guiding to whopping eight billion dollars in free 45 00:02:28,480 --> 00:02:30,800 Speaker 5: cash flow, which kind of takes them back to pre 46 00:02:30,919 --> 00:02:33,880 Speaker 5: pandemic levels and really supports the stock. 47 00:02:35,000 --> 00:02:37,960 Speaker 1: And that is good news streaming. I know they've been 48 00:02:37,960 --> 00:02:43,480 Speaker 1: counting on several properties, including ESPN, Hulu, Disney Plus. But 49 00:02:43,880 --> 00:02:45,040 Speaker 1: it's not all good news, is. 50 00:02:45,040 --> 00:02:47,959 Speaker 5: It for Disney Not at all. There are a lot 51 00:02:48,000 --> 00:02:51,640 Speaker 5: of challenges that remain and you alluded to this just 52 00:02:51,639 --> 00:02:53,280 Speaker 5: a short while ago in terms of at least the 53 00:02:53,320 --> 00:02:57,040 Speaker 5: linear TV networks. You know that there is secular pressure 54 00:02:57,160 --> 00:03:01,799 Speaker 5: on that part of the business. They are to you know, 55 00:03:02,160 --> 00:03:04,359 Speaker 5: dispose of some of the networks, and I think that's 56 00:03:04,520 --> 00:03:06,680 Speaker 5: that's the right thing that they're doing, especially as far 57 00:03:06,720 --> 00:03:08,840 Speaker 5: as their India unit is concerned. But they have to 58 00:03:08,960 --> 00:03:11,560 Speaker 5: kind of articulate a much better strategy for some of 59 00:03:11,560 --> 00:03:16,600 Speaker 5: the US properties, the most famous of them of course 60 00:03:16,639 --> 00:03:21,079 Speaker 5: being ESPN. Now this is you know, the juggernaut when 61 00:03:21,120 --> 00:03:25,520 Speaker 5: it comes to sports networks in the US, but it 62 00:03:25,600 --> 00:03:27,760 Speaker 5: is a cash cow it generates about three billion dollars 63 00:03:27,760 --> 00:03:29,960 Speaker 5: in EBITDA. But there has to be a clear strategy 64 00:03:30,000 --> 00:03:33,000 Speaker 5: from Disney in terms of the future of ESPN and 65 00:03:33,440 --> 00:03:35,600 Speaker 5: how and when it goes over the top. 66 00:03:35,920 --> 00:03:38,680 Speaker 1: Now, also there was talk last time, I think we 67 00:03:38,720 --> 00:03:42,240 Speaker 1: spoke about Byron Allen making a ten billion dollar bid 68 00:03:42,280 --> 00:03:45,720 Speaker 1: for the ABC network. Now that was obviously turned down, 69 00:03:45,760 --> 00:03:48,720 Speaker 1: but is there any movement in the selling of that 70 00:03:48,760 --> 00:03:50,920 Speaker 1: what is now a non core business for Disney. 71 00:03:51,000 --> 00:03:52,920 Speaker 5: It is definitely a non core business for Disney. But 72 00:03:52,920 --> 00:03:55,720 Speaker 5: actually after you know, there was initially some chatter about 73 00:03:55,760 --> 00:03:58,120 Speaker 5: Disney maybe wanting to sell out some of its linear networks, 74 00:03:58,160 --> 00:04:01,280 Speaker 5: including of course the ABC broadcast network. But after that, 75 00:04:01,640 --> 00:04:05,160 Speaker 5: Bob Iger has kind of walked back the talk on, 76 00:04:05,320 --> 00:04:07,240 Speaker 5: you know, the sale of the linear networks, and he 77 00:04:07,280 --> 00:04:10,880 Speaker 5: has to be I think, really careful as he orchestrates 78 00:04:11,280 --> 00:04:15,000 Speaker 5: any you know, any sale of assets, especially the linear networks, 79 00:04:15,000 --> 00:04:18,160 Speaker 5: because again, remember they do definitely want to hold on 80 00:04:18,200 --> 00:04:20,960 Speaker 5: to ESPN. That is a core property for them, a 81 00:04:21,000 --> 00:04:24,720 Speaker 5: core brand name for them, and most of ESPN's revenue 82 00:04:24,920 --> 00:04:26,960 Speaker 5: is tied to the linear networks. So they need to 83 00:04:27,000 --> 00:04:29,120 Speaker 5: do it in a very very careful way and it's 84 00:04:29,200 --> 00:04:32,760 Speaker 5: it's a very tricky balancing act for Bob Byger, and 85 00:04:32,800 --> 00:04:35,080 Speaker 5: so I think he realizes that he does need to 86 00:04:35,080 --> 00:04:37,320 Speaker 5: hold on to some of the linear networks for just 87 00:04:37,360 --> 00:04:40,279 Speaker 5: a little while longer before he can kind of figure 88 00:04:40,279 --> 00:04:43,640 Speaker 5: out a viable strategy for that entire TV network business. 89 00:04:44,120 --> 00:04:46,120 Speaker 1: Well, let's talk a little bit more about Bob Biger 90 00:04:46,120 --> 00:04:50,640 Speaker 1: and some of the challenges he's facing, especially from you know, 91 00:04:50,960 --> 00:04:54,960 Speaker 1: try and fund managements. Nelson Peltz and his proxy fight 92 00:04:55,040 --> 00:04:58,320 Speaker 1: with the board and in essence with Bob Iger is 93 00:04:58,440 --> 00:04:59,679 Speaker 1: not so triumphant return. 94 00:05:00,000 --> 00:05:03,080 Speaker 5: So I mean, this I think is a little bit 95 00:05:03,080 --> 00:05:05,600 Speaker 5: of a distraction, I would say for the company. I mean, yes, 96 00:05:05,640 --> 00:05:08,600 Speaker 5: we have Nelson Pelts, and he does make some fair 97 00:05:08,680 --> 00:05:12,159 Speaker 5: points in terms of the stock price being very challenged. 98 00:05:12,160 --> 00:05:13,760 Speaker 5: And of course there are a lot of things that 99 00:05:13,800 --> 00:05:16,720 Speaker 5: Disney has to do and they have done that. Of course, 100 00:05:16,720 --> 00:05:18,400 Speaker 5: one could argue that, you know, it maybe needs to 101 00:05:18,440 --> 00:05:21,400 Speaker 5: be done even faster, and maybe even more needs to 102 00:05:21,440 --> 00:05:25,120 Speaker 5: be done. But I don't necessarily see Pels having articulated 103 00:05:25,200 --> 00:05:28,760 Speaker 5: anything specific that Disney hasn't already come up with. So 104 00:05:28,839 --> 00:05:31,640 Speaker 5: he spoke about most recently spoke about you know, bundling 105 00:05:31,920 --> 00:05:35,000 Speaker 5: ESPN Plus with Netflix. I mean, the Disney bundle is 106 00:05:35,040 --> 00:05:38,039 Speaker 5: one of the most successful products out there in the 107 00:05:38,080 --> 00:05:41,000 Speaker 5: streaming market right now. So it's going to be really 108 00:05:41,080 --> 00:05:44,599 Speaker 5: interesting to see what exactly Pelts has to offer in 109 00:05:44,680 --> 00:05:46,960 Speaker 5: terms of suggestions for Disney that you know, they haven't 110 00:05:47,000 --> 00:05:50,440 Speaker 5: already that they're not already working on, or they haven't 111 00:05:50,440 --> 00:05:52,839 Speaker 5: already come up with. But I think otherwise kind of 112 00:05:52,880 --> 00:05:56,560 Speaker 5: having him, you know, lingering and having this this proxy 113 00:05:56,600 --> 00:05:59,760 Speaker 5: battle is just an unnecessary distraction for for Disney's management team, 114 00:05:59,839 --> 00:06:00,800 Speaker 5: right Yeah, and it. 115 00:06:00,839 --> 00:06:06,000 Speaker 1: Keeps going on. There's always something Nelson Beltz has to say. Boy, Well, 116 00:06:06,000 --> 00:06:07,320 Speaker 1: one thing I want to talk to you about, and 117 00:06:07,360 --> 00:06:09,360 Speaker 1: I don't think you and I and we've talked before, 118 00:06:09,440 --> 00:06:12,840 Speaker 1: have ever really talked about is the theme parks, which 119 00:06:13,440 --> 00:06:17,080 Speaker 1: seems to be just a constant source of income of 120 00:06:17,160 --> 00:06:20,560 Speaker 1: revenue theme parks and cruises. Does it still continue to 121 00:06:20,600 --> 00:06:22,800 Speaker 1: be the cash cow for the company that it has 122 00:06:22,880 --> 00:06:23,520 Speaker 1: always been? 123 00:06:23,839 --> 00:06:26,479 Speaker 5: It absolutely does, And this is where you know, one 124 00:06:26,560 --> 00:06:28,479 Speaker 5: really has to wonder, you know, if you just kind 125 00:06:28,480 --> 00:06:32,880 Speaker 5: of look at Disney's you know, income statement, sixty five 126 00:06:32,960 --> 00:06:36,719 Speaker 5: percent of this company's profits comes from the theme parks. 127 00:06:37,080 --> 00:06:41,400 Speaker 5: And yet investors continue to obsess over ESPN, continue to 128 00:06:41,400 --> 00:06:44,719 Speaker 5: obsess over the linear TV networks, you know, even though 129 00:06:44,720 --> 00:06:46,760 Speaker 5: they don't make up such a big portion of the 130 00:06:46,760 --> 00:06:49,600 Speaker 5: company's revenue or profits, and so that's kind of really baffling. 131 00:06:49,600 --> 00:06:52,560 Speaker 5: But anyway, going back to your point, you know, parks 132 00:06:52,640 --> 00:06:56,560 Speaker 5: absolutely are the key growth driver for Disney in the 133 00:06:56,560 --> 00:06:59,159 Speaker 5: coming years. They're planning to invest about sixty billion dollars 134 00:06:59,160 --> 00:07:01,920 Speaker 5: in their parks busines is over the next ten years 135 00:07:02,000 --> 00:07:04,119 Speaker 5: or so. And what we've seen is, of course, after 136 00:07:04,160 --> 00:07:07,919 Speaker 5: the pandemic, we saw this huge rebound in the domestic parks, 137 00:07:08,360 --> 00:07:11,280 Speaker 5: you know, so much of pent up demand, continued growth, 138 00:07:11,360 --> 00:07:15,560 Speaker 5: a lot of cost efficiencies, operating margins touching record high levels. 139 00:07:15,880 --> 00:07:17,680 Speaker 5: And now what we're seeing is we're seeing a lot 140 00:07:17,720 --> 00:07:20,960 Speaker 5: of tailwinds actually coming from international parks, so you know, 141 00:07:21,040 --> 00:07:22,920 Speaker 5: all of them are open and running right now. We've 142 00:07:22,920 --> 00:07:27,000 Speaker 5: seen price increases implemented across the board, and we're seeing 143 00:07:27,000 --> 00:07:30,200 Speaker 5: international revenue growth that is extremely strong as well as 144 00:07:30,240 --> 00:07:32,040 Speaker 5: of course you mentioned the cruise ships. So we have 145 00:07:32,120 --> 00:07:34,520 Speaker 5: five cruise ships right now for Disney that are in operation, 146 00:07:34,840 --> 00:07:37,080 Speaker 5: but you have three new cruise ships that are coming 147 00:07:37,080 --> 00:07:40,320 Speaker 5: on board from twenty twenty four through twenty twenty six, 148 00:07:40,400 --> 00:07:44,240 Speaker 5: and so that is going to contribute significantly to the 149 00:07:44,280 --> 00:07:45,840 Speaker 5: profit of this segment. 150 00:07:46,160 --> 00:07:49,080 Speaker 1: It just never seems to amaze me how many people 151 00:07:49,080 --> 00:07:51,080 Speaker 1: who will go to those parks and take those cruis 152 00:07:51,120 --> 00:07:54,600 Speaker 1: as well. Our thanks to Geetha raganathin US media analyst 153 00:07:54,680 --> 00:07:58,000 Speaker 1: with Bloomberg Intelligence. Geita, thank you so much. Next up 154 00:07:58,040 --> 00:08:01,280 Speaker 1: on the earnings calendar is Uber teen Technologies posting its 155 00:08:01,360 --> 00:08:03,840 Speaker 1: latest results this coming Wednesday, and for more on what 156 00:08:03,880 --> 00:08:08,800 Speaker 1: to expect, we welcome Bloomberg Intelligence Senior technology analyst Mandeep sing. 157 00:08:09,120 --> 00:08:09,320 Speaker 6: Now. 158 00:08:09,400 --> 00:08:12,320 Speaker 1: Uber has been on a roll demand for rides, up, 159 00:08:12,400 --> 00:08:15,440 Speaker 1: food delivery, up its share price more than doubling in 160 00:08:15,480 --> 00:08:17,760 Speaker 1: the last year. What do you expect to see in 161 00:08:17,800 --> 00:08:19,160 Speaker 1: its results this Wednesday? 162 00:08:19,560 --> 00:08:23,760 Speaker 7: Yeah, Look, the mobility segment, which is the driver of 163 00:08:24,280 --> 00:08:29,280 Speaker 7: profitability for Uber and it's driving all the optimism, continues 164 00:08:29,320 --> 00:08:32,440 Speaker 7: to do very well. We're talking about, you know, above 165 00:08:32,520 --> 00:08:35,960 Speaker 7: twenty five percent growth and that has been the case 166 00:08:36,400 --> 00:08:39,480 Speaker 7: for the last three quarters. It's going to be the 167 00:08:39,520 --> 00:08:43,080 Speaker 7: case in the holiday quarter, the four que that we 168 00:08:43,120 --> 00:08:47,160 Speaker 7: are talking about and going forward. Also, I feel Uber 169 00:08:47,240 --> 00:08:51,200 Speaker 7: mobility has an advantage in the sense it's gaining market 170 00:08:51,200 --> 00:08:54,480 Speaker 7: share from Lyft, which isn't executing very well and it's 171 00:08:54,520 --> 00:08:58,120 Speaker 7: actually struggling in terms of the supply side. So there 172 00:08:58,160 --> 00:09:02,360 Speaker 7: aren't as many drivers on list platforms as they are 173 00:09:02,400 --> 00:09:05,920 Speaker 7: on Uber right now. And we know with marketplaces, supply 174 00:09:06,080 --> 00:09:09,360 Speaker 7: growth really makes a difference. If your supply growth keeps 175 00:09:09,440 --> 00:09:12,280 Speaker 7: up with demand, that's very healthy for the marketplace. So 176 00:09:12,800 --> 00:09:16,520 Speaker 7: net net mobility should continue to do well even in 177 00:09:16,559 --> 00:09:18,800 Speaker 7: twenty twenty four, even though the comps get tougher. 178 00:09:19,120 --> 00:09:22,559 Speaker 1: Now, is this a return of the business consumer people 179 00:09:22,600 --> 00:09:26,040 Speaker 1: going back to work, needing rides all round? 180 00:09:26,280 --> 00:09:29,960 Speaker 7: I think the thing about Uber is because they are 181 00:09:30,040 --> 00:09:32,280 Speaker 7: a verb, and you know they have that one hundred 182 00:09:32,320 --> 00:09:36,439 Speaker 7: and fifty million monthly active users. They cater to both 183 00:09:36,559 --> 00:09:39,480 Speaker 7: airport rides, which are more business rides, but also the 184 00:09:39,520 --> 00:09:43,560 Speaker 7: consumer rides where people are just using that more and more. 185 00:09:43,600 --> 00:09:47,720 Speaker 7: And for a while, there was this kind of expectation 186 00:09:47,960 --> 00:09:51,520 Speaker 7: that with inflation, people are going to cut back on 187 00:09:51,600 --> 00:09:54,360 Speaker 7: the rights because there is that elasticity when it comes 188 00:09:54,360 --> 00:09:57,319 Speaker 7: to you know, prices going up, people will take fewer rides. 189 00:09:57,960 --> 00:10:01,920 Speaker 7: What that has done is really helped the inflationary aspect 190 00:10:02,000 --> 00:10:05,360 Speaker 7: has helped Uber on board, more drivers on the platform. 191 00:10:05,800 --> 00:10:08,880 Speaker 7: So in a sense, it's brought down the prices for 192 00:10:09,000 --> 00:10:12,200 Speaker 7: Uber rights because their supply growth has been so good 193 00:10:12,320 --> 00:10:16,200 Speaker 7: and people need supplemental income and Uber is one of 194 00:10:16,240 --> 00:10:19,320 Speaker 7: the best platforms out there. If you want to work 195 00:10:19,360 --> 00:10:21,360 Speaker 7: for two hours, you can earn decent money. 196 00:10:21,440 --> 00:10:24,920 Speaker 1: That gig economy really has boosted. Now let's talk about 197 00:10:25,440 --> 00:10:28,280 Speaker 1: something where there is a lot of competition, not just Uber, 198 00:10:28,480 --> 00:10:32,760 Speaker 1: but food delivery, and you're up against some pretty big 199 00:10:32,840 --> 00:10:36,200 Speaker 1: names when you're Uber eats, and what's the prospect there? 200 00:10:36,440 --> 00:10:36,640 Speaker 6: Yees? 201 00:10:36,760 --> 00:10:43,080 Speaker 7: So look, I think Uber delivery definitely is not a 202 00:10:43,120 --> 00:10:46,240 Speaker 7: category leader like the mobility side is I mentioned how 203 00:10:46,320 --> 00:10:48,520 Speaker 7: Uber is executing so much better than Lift on the 204 00:10:48,520 --> 00:10:52,439 Speaker 7: mobility side. On the delivery side, door Dash definitely has 205 00:10:52,480 --> 00:10:55,360 Speaker 7: an advantage in the suburbs. It has had that for 206 00:10:55,840 --> 00:10:58,439 Speaker 7: a while now a few years. And what Uber is 207 00:10:58,480 --> 00:11:01,679 Speaker 7: trying to do is to expand in multiple categories. So 208 00:11:01,720 --> 00:11:05,520 Speaker 7: they have added grocery convenience and all kinds of other 209 00:11:06,559 --> 00:11:11,120 Speaker 7: delivery that they could tag on to that online food delivery. 210 00:11:11,679 --> 00:11:14,760 Speaker 7: And to me, the value proposition is a bundle. So 211 00:11:14,960 --> 00:11:19,240 Speaker 7: Uber has really emphasized their Uber One subscription, which is 212 00:11:19,360 --> 00:11:24,280 Speaker 7: like mobility plus delivery plus anything convenience, and it all 213 00:11:24,480 --> 00:11:27,760 Speaker 7: comes with a nine to ninety nine subscription per month, 214 00:11:27,840 --> 00:11:30,880 Speaker 7: which is quite attractive. If I had to go for 215 00:11:31,040 --> 00:11:34,760 Speaker 7: a door Dash subscription that just does food delivery and 216 00:11:34,800 --> 00:11:38,800 Speaker 7: grocery delivery, or an Instacart subscription, Uber is more attractive 217 00:11:38,840 --> 00:11:41,600 Speaker 7: because it covers right sharing as well. So from a 218 00:11:41,640 --> 00:11:45,400 Speaker 7: bundling perspective, I definitely see that value proposition and it 219 00:11:45,480 --> 00:11:48,560 Speaker 7: is working. You can see the delivery take rates are 220 00:11:48,559 --> 00:11:52,280 Speaker 7: getting better because of this bundling aspect. And they're layering 221 00:11:52,440 --> 00:11:54,760 Speaker 7: ads as well on the platform. So the ads is 222 00:11:54,800 --> 00:11:57,840 Speaker 7: the other kind of profitability driver. 223 00:11:57,720 --> 00:11:59,600 Speaker 1: That looks like a big growth market the ads. 224 00:12:00,840 --> 00:12:05,120 Speaker 7: Yeah, and that's where scale matters for a marketplace like Uber. 225 00:12:05,640 --> 00:12:08,640 Speaker 7: As long as they maintain the scale through the supply 226 00:12:08,760 --> 00:12:11,720 Speaker 7: acquisition I mentioned, as well as you know the bundling 227 00:12:11,800 --> 00:12:15,520 Speaker 7: and the frequency of rides, they have an inherent advantage 228 00:12:15,559 --> 00:12:17,079 Speaker 7: over all the smaller players. 229 00:12:17,280 --> 00:12:20,760 Speaker 1: Thank you very much, our thanks to Bloomberg Intelligence Senior 230 00:12:20,840 --> 00:12:24,240 Speaker 1: technology analyst man Deep Sing and coming up on Bloomberg 231 00:12:24,320 --> 00:12:26,120 Speaker 1: Day Break weekend, we had to Europe for a look 232 00:12:26,120 --> 00:12:29,640 Speaker 1: at upcoming earnings from several energy giants and the possible 233 00:12:29,720 --> 00:12:33,320 Speaker 1: impact of the Israel Hamas war is having on the industry. 234 00:12:33,520 --> 00:12:47,040 Speaker 1: I'm Tom Busby and this is Bloomberg. This is Bloomberg 235 00:12:47,080 --> 00:12:49,240 Speaker 1: day Break weekend, our global look ahead at the top 236 00:12:49,280 --> 00:12:52,120 Speaker 1: stories for investors in the coming week. I'm Tom Busby 237 00:12:52,200 --> 00:12:54,760 Speaker 1: in New York. Up later in our program, a major 238 00:12:54,800 --> 00:12:57,280 Speaker 1: holiday kicks off this coming week and what that could 239 00:12:57,360 --> 00:13:01,040 Speaker 1: mean for China's economy. But first, after Shell kicked off, 240 00:13:01,080 --> 00:13:04,400 Speaker 1: earning season for the European oil majors will be focused 241 00:13:04,400 --> 00:13:08,280 Speaker 1: on totel energies and BP in the coming days. Apart 242 00:13:08,320 --> 00:13:12,000 Speaker 1: from their financial performances, questions remain about how the industry 243 00:13:12,040 --> 00:13:15,360 Speaker 1: will respond to growing efforts to meet net zero targets 244 00:13:15,760 --> 00:13:18,040 Speaker 1: and ongoing disruptions in the Middle East. 245 00:13:18,320 --> 00:13:18,640 Speaker 8: For more. 246 00:13:18,679 --> 00:13:21,080 Speaker 1: Now, let's go to London and bring in Bloomberg Daybreak 247 00:13:21,080 --> 00:13:23,080 Speaker 1: Europe banker Stephen Carroll. 248 00:13:23,120 --> 00:13:25,840 Speaker 2: Tom The big oil companies have spent much of the 249 00:13:25,880 --> 00:13:30,320 Speaker 2: past four years grappling with existential problems from geopolitics to 250 00:13:30,400 --> 00:13:34,280 Speaker 2: climate change. Record losses during the pandemic turned into record 251 00:13:34,320 --> 00:13:38,360 Speaker 2: profits two years later. Activist investors have come and gone. 252 00:13:38,760 --> 00:13:42,400 Speaker 2: Big oil's post pandemic playbook has been simple. Take cash 253 00:13:42,440 --> 00:13:45,960 Speaker 2: from rising oil prices and hand it right back to shareholders. 254 00:13:46,320 --> 00:13:50,280 Speaker 2: The challenge this earning season is to avoid missing expectations, 255 00:13:50,559 --> 00:13:53,520 Speaker 2: but crude prices were down twenty percent in the final 256 00:13:53,559 --> 00:13:57,920 Speaker 2: three months of last year, so that's easier said than done. 257 00:13:58,000 --> 00:14:00,640 Speaker 2: In Europe, Shell kicked off the season with a big 258 00:14:00,679 --> 00:14:03,720 Speaker 2: beat on adjusted net income, coming in a billion dollars 259 00:14:03,800 --> 00:14:06,920 Speaker 2: higher than had been expected. Add to that another three 260 00:14:06,960 --> 00:14:10,000 Speaker 2: and a half billion dollars of share buybacks. Here's what 261 00:14:10,120 --> 00:14:14,040 Speaker 2: the Shell CEO, Whales Sauan, told Bloomberg's Tom mackenzie about 262 00:14:14,040 --> 00:14:17,360 Speaker 2: the company's plans for further returns to shareholders. 263 00:14:17,840 --> 00:14:20,240 Speaker 4: What we're guided to is thirty to forty percent of 264 00:14:20,280 --> 00:14:24,320 Speaker 4: our cash flow from operations coming coming back to shareholders, 265 00:14:24,320 --> 00:14:28,160 Speaker 4: so shareholder distributions. What we saw in twenty twenty three 266 00:14:28,480 --> 00:14:30,520 Speaker 4: is we were slightly above the higher end of that 267 00:14:30,640 --> 00:14:33,680 Speaker 4: range at forty two percent. As we continue to deliver 268 00:14:33,760 --> 00:14:36,240 Speaker 4: the strategy, the whole point and the whole focus of 269 00:14:36,280 --> 00:14:38,880 Speaker 4: the strategy is creating more free cash flow per share, 270 00:14:39,240 --> 00:14:42,040 Speaker 4: So we will continue to stay within the thirty to 271 00:14:42,080 --> 00:14:45,280 Speaker 4: forty percent or thereabats through the cycle, but continue to 272 00:14:45,320 --> 00:14:48,240 Speaker 4: create the capacity to be able to reward our shareholders, 273 00:14:48,240 --> 00:14:50,120 Speaker 4: as we have done in twenty twenty three and as 274 00:14:50,120 --> 00:14:52,000 Speaker 4: we hope to continue to do in twenty twenty four. 275 00:14:52,320 --> 00:14:53,600 Speaker 9: Okay, so you have the cash flow, you have the 276 00:14:53,640 --> 00:14:55,880 Speaker 9: balance sheet. Many would look at that and say you 277 00:14:55,920 --> 00:14:59,120 Speaker 9: are ready, you are primed for more M and A activity. 278 00:14:59,160 --> 00:15:00,800 Speaker 9: Do you expect to be more active this year when 279 00:15:00,840 --> 00:15:02,200 Speaker 9: it comes to mergers and acquisitions? 280 00:15:02,480 --> 00:15:05,560 Speaker 4: Our focus is very much on delivering the first sprint 281 00:15:05,600 --> 00:15:08,680 Speaker 4: that we announced. We are essentially just over two quarters 282 00:15:08,720 --> 00:15:10,800 Speaker 4: into what is a ten quarter sprint, and what we 283 00:15:10,800 --> 00:15:15,680 Speaker 4: have identified is that actually the largest value opportunity for 284 00:15:15,760 --> 00:15:19,680 Speaker 4: us is in just unlocking the full potential of this company. 285 00:15:20,200 --> 00:15:22,760 Speaker 4: And so while we will continue to look at bought 286 00:15:22,840 --> 00:15:25,120 Speaker 4: onsto our current port for you, we expect to stay 287 00:15:25,120 --> 00:15:28,400 Speaker 4: within the twenty two to twenty five billion dollar capex 288 00:15:28,520 --> 00:15:31,480 Speaker 4: range that we have guided to, and we will continue 289 00:15:31,480 --> 00:15:35,040 Speaker 4: to look at preferentially going after buybacks because, if I'm 290 00:15:35,040 --> 00:15:38,480 Speaker 4: honest with you, Tom, the most attractive opportunity to allocate 291 00:15:38,560 --> 00:15:41,040 Speaker 4: capital too in the sector I think right now is 292 00:15:41,120 --> 00:15:43,520 Speaker 4: to buy back our shares at north to fifteen percent 293 00:15:43,560 --> 00:15:46,760 Speaker 4: free cash flow yield, and that is with a company 294 00:15:46,800 --> 00:15:49,080 Speaker 4: that is actually building the momentum that we have. It's 295 00:15:49,120 --> 00:15:51,040 Speaker 4: not about buy for us, and that's why we're focused 296 00:15:51,040 --> 00:15:52,360 Speaker 4: on ourselves from now. 297 00:15:53,360 --> 00:15:54,840 Speaker 9: Okay, let me get your view on the on the 298 00:15:54,840 --> 00:15:56,920 Speaker 9: oil price. We've seen gains and oil of about seven 299 00:15:56,960 --> 00:15:59,000 Speaker 9: percent through the month of January. There is this tension, 300 00:15:59,000 --> 00:16:03,240 Speaker 9: it seems, between the question whether that's softening and the geopolitics. 301 00:16:03,280 --> 00:16:05,520 Speaker 9: How do you see that evolving in the months and 302 00:16:05,560 --> 00:16:06,280 Speaker 9: quarters ahead. 303 00:16:06,480 --> 00:16:08,440 Speaker 4: What we see at the moment is the market is 304 00:16:08,640 --> 00:16:13,080 Speaker 4: well supplied. The demand has been remarkably resilient in twenty 305 00:16:13,120 --> 00:16:17,160 Speaker 4: twenty three despite multiple headwinds. The supply side is the 306 00:16:17,160 --> 00:16:21,680 Speaker 4: bigger question at the moment. Questions around ope cohesion, questions 307 00:16:21,680 --> 00:16:25,080 Speaker 4: around how sanctions might play up. You'll have picked up, 308 00:16:25,080 --> 00:16:29,400 Speaker 4: of course, a potential increase of sanctions against Venezuela and Iran, 309 00:16:29,840 --> 00:16:33,520 Speaker 4: potential enforcement or tightening the enforcement of sanctions against Russia. 310 00:16:34,800 --> 00:16:37,760 Speaker 4: All of that, I think is raising questions around the 311 00:16:37,760 --> 00:16:41,680 Speaker 4: supply side. Not to mention the slide slowdown in the 312 00:16:41,760 --> 00:16:44,600 Speaker 4: growth of the shales patch. All of that I think 313 00:16:44,760 --> 00:16:47,480 Speaker 4: is just creating a bit more of tightening in the 314 00:16:47,560 --> 00:16:50,160 Speaker 4: overall market, and we'll see how that plays at but 315 00:16:50,280 --> 00:16:52,440 Speaker 4: a lot of it will be based on geopolitics more 316 00:16:52,520 --> 00:16:53,320 Speaker 4: so than anything else. 317 00:16:53,360 --> 00:16:57,240 Speaker 9: At the moment, the gas trading desk once again knocking 318 00:16:57,320 --> 00:16:58,920 Speaker 9: it out of the park, doing very well, putting a 319 00:16:58,960 --> 00:17:01,720 Speaker 9: very good performance in Is there anything that derails the 320 00:17:01,800 --> 00:17:03,760 Speaker 9: strength that's coming through from the gas trading team. 321 00:17:04,480 --> 00:17:09,359 Speaker 4: I think the Q four was indeed an exceptional quarter 322 00:17:09,480 --> 00:17:13,320 Speaker 4: for our trading and optimization organization. We saw the opening 323 00:17:13,480 --> 00:17:17,160 Speaker 4: of east west ARBs through the quarter and we had 324 00:17:17,280 --> 00:17:20,480 Speaker 4: length as we typically do in the Northern Hemisphere winters, 325 00:17:21,160 --> 00:17:23,320 Speaker 4: and that allowed us to take opportunity to take those 326 00:17:23,359 --> 00:17:26,720 Speaker 4: opportunities and create real value. What you have seen so 327 00:17:26,920 --> 00:17:29,600 Speaker 4: far this year at the start of twenty twenty four 328 00:17:29,800 --> 00:17:33,119 Speaker 4: is the ARBs aren't as wide as they were, so 329 00:17:33,880 --> 00:17:36,880 Speaker 4: less running room there and prices. 330 00:17:36,520 --> 00:17:37,120 Speaker 2: Have come down. 331 00:17:37,720 --> 00:17:41,360 Speaker 4: I think with fundamentals being reasserted now as you see 332 00:17:41,440 --> 00:17:44,720 Speaker 4: a better storage balance in places like Europe and Asia 333 00:17:45,320 --> 00:17:46,520 Speaker 4: and a milder winter. 334 00:17:46,640 --> 00:17:49,280 Speaker 9: How do you see the lergy outlook or demand outlook 335 00:17:49,440 --> 00:17:53,280 Speaker 9: kind of evolving and changing as well? Given the economy's 336 00:17:53,320 --> 00:17:56,959 Speaker 9: growth is slowing, rates remain relatively high, the inventories are 337 00:17:57,040 --> 00:17:59,399 Speaker 9: well filled here in Europe, What does the picture look 338 00:17:59,480 --> 00:18:02,080 Speaker 9: like in terms of demand for LNG So far. 339 00:18:02,040 --> 00:18:04,640 Speaker 4: We're in balance from what we see, But the biggest 340 00:18:04,880 --> 00:18:08,520 Speaker 4: determinant of demand growth I think will come from China 341 00:18:08,600 --> 00:18:12,320 Speaker 4: and how China responds through twenty twenty four, early signs 342 00:18:12,640 --> 00:18:18,480 Speaker 4: are positive. While China hasn't essentially fulfilled with some people 343 00:18:18,520 --> 00:18:21,360 Speaker 4: had expected coming out of COVID, they continue to grow 344 00:18:21,440 --> 00:18:24,880 Speaker 4: and we see the LNG growth LNG import growth continue 345 00:18:24,920 --> 00:18:28,119 Speaker 4: in particular at these lower prices now that they are 346 00:18:28,200 --> 00:18:31,560 Speaker 4: able to buy at these levels, and so that's going 347 00:18:31,600 --> 00:18:35,119 Speaker 4: to be a big determinant. What's I think key in 348 00:18:35,160 --> 00:18:37,560 Speaker 4: twenty twenty four is there isn't a lot of new 349 00:18:37,640 --> 00:18:40,560 Speaker 4: supply coming into the market, and so as you go 350 00:18:40,760 --> 00:18:44,480 Speaker 4: back into stock refilling after the winter, I suspect you'll 351 00:18:44,480 --> 00:18:47,920 Speaker 4: see robust demand. So for the coming year year and 352 00:18:47,960 --> 00:18:50,240 Speaker 4: a half, I think there'll be some good demand. I 353 00:18:50,320 --> 00:18:52,560 Speaker 4: think one thing to keep in mind in the medium 354 00:18:52,680 --> 00:18:56,280 Speaker 4: term is China again will draw a lot of gas. 355 00:18:56,800 --> 00:18:59,040 Speaker 4: To give you a sense of that, just in twenty 356 00:18:59,119 --> 00:19:02,439 Speaker 4: twenty four and twenty twenty five, the volume of natural 357 00:19:02,480 --> 00:19:06,400 Speaker 4: gas power generation capacity that China is building is equivalent 358 00:19:06,440 --> 00:19:09,960 Speaker 4: to the entire installed capacity in the UK today, and 359 00:19:10,080 --> 00:19:12,639 Speaker 4: that's just China China's built out, so there will be. 360 00:19:12,920 --> 00:19:15,800 Speaker 9: A look at demand for energy is What is your 361 00:19:15,840 --> 00:19:18,719 Speaker 9: reaction to this decision by the Biden administration to pause 362 00:19:19,480 --> 00:19:22,920 Speaker 9: the build out the licenses, the approvals for export facilities 363 00:19:23,040 --> 00:19:26,000 Speaker 9: LNG export facilities in the US. What's your reaction. Does 364 00:19:26,040 --> 00:19:27,840 Speaker 9: it put any of your investment plans in the US 365 00:19:28,200 --> 00:19:28,640 Speaker 9: at risk? 366 00:19:29,400 --> 00:19:32,840 Speaker 4: I think the short medium term there will be very 367 00:19:32,880 --> 00:19:35,359 Speaker 4: little impact to the LNG markets. What it does is 368 00:19:35,520 --> 00:19:38,920 Speaker 4: it undermines confidence I think in the longer term when 369 00:19:38,960 --> 00:19:40,879 Speaker 4: it comes to US l G, which is which is 370 00:19:40,920 --> 00:19:44,680 Speaker 4: a real shame given the world demand for LNG is 371 00:19:44,720 --> 00:19:46,639 Speaker 4: going to continue to grow and the US is the 372 00:19:46,760 --> 00:19:50,760 Speaker 4: largest supplier of LNG today, So a pause like this 373 00:19:50,960 --> 00:19:53,920 Speaker 4: can can always create more uncertainty, in particular when you're 374 00:19:53,920 --> 00:19:58,760 Speaker 4: looking at long term investments. That and for example the 375 00:19:58,880 --> 00:20:02,280 Speaker 4: behavior of venture glid Global in the US to not 376 00:20:02,520 --> 00:20:05,520 Speaker 4: honor the contracts towards its off takers, all of that 377 00:20:06,320 --> 00:20:09,400 Speaker 4: just undermines confidence in USLNG at the time when the world, 378 00:20:09,520 --> 00:20:13,000 Speaker 4: including here in Europe, really need the stability of energy supplies. 379 00:20:13,280 --> 00:20:16,280 Speaker 2: That's Shell's CEO ay Al Sauan speaking to Tom mackenzie 380 00:20:16,320 --> 00:20:19,120 Speaker 2: discussing some of the big issues facing the sector as 381 00:20:19,160 --> 00:20:21,200 Speaker 2: we look ahead to the next set of results in 382 00:20:21,280 --> 00:20:25,080 Speaker 2: the coming days from BP and Total LG. Very interesting 383 00:20:25,119 --> 00:20:27,520 Speaker 2: to hear his comments on the Biden administration's move to 384 00:20:27,680 --> 00:20:31,880 Speaker 2: pause approving new LNG export facilities. That's something that came 385 00:20:31,960 --> 00:20:35,040 Speaker 2: up at an industry gathering in Florence in recent days 386 00:20:35,080 --> 00:20:38,360 Speaker 2: as well, the Begger Hughes Annual Conference. This year's theme 387 00:20:38,520 --> 00:20:43,560 Speaker 2: was Energizing Change, addressing themes of affordability and sustainability. Our 388 00:20:43,680 --> 00:20:46,560 Speaker 2: energy reporter Laura Hurst was there. I've been speaking to 389 00:20:46,640 --> 00:20:49,600 Speaker 2: her about the atmosphere at the conference and whether she 390 00:20:49,720 --> 00:20:52,880 Speaker 2: felt it was an industry that was ready for change all. 391 00:20:52,960 --> 00:20:55,960 Speaker 8: Certainly there was quite a lot of buzz around LNG 392 00:20:56,359 --> 00:21:02,000 Speaker 8: hydrogen and other new new low carbon rules, but there 393 00:21:02,080 --> 00:21:05,880 Speaker 8: was not much love for the Biden administrations announcement last 394 00:21:05,960 --> 00:21:10,160 Speaker 8: Friday that said there'd be moratorium on l G expert 395 00:21:10,320 --> 00:21:13,399 Speaker 8: so a lot of backlash. They're in the room and 396 00:21:13,880 --> 00:21:17,080 Speaker 8: basically a lot of the gas producers they're saying, this 397 00:21:17,280 --> 00:21:19,800 Speaker 8: is the transition field that we need, and this is well, 398 00:21:19,840 --> 00:21:23,920 Speaker 8: it's going to replace coal. So it essentially criticizing the 399 00:21:23,960 --> 00:21:26,760 Speaker 8: administration for what looks like a political move. 400 00:21:27,240 --> 00:21:29,960 Speaker 2: Yeah, Peny, you of focused on those policy shifts and 401 00:21:30,040 --> 00:21:32,960 Speaker 2: how they're affecting this sector as well. When we think 402 00:21:33,000 --> 00:21:38,159 Speaker 2: about the reporting that we've had from Shell around their earnings, 403 00:21:38,560 --> 00:21:40,639 Speaker 2: is that a strength that we're likely to see in 404 00:21:40,760 --> 00:21:43,480 Speaker 2: this earning seasons across the sector as we're looking ahead 405 00:21:43,560 --> 00:21:45,400 Speaker 2: to the next set of oil majors reporting. 406 00:21:45,800 --> 00:21:48,280 Speaker 8: Well, it really depends which company you're looking at. So 407 00:21:48,640 --> 00:21:51,720 Speaker 8: for example, Shell, much of their beat was thanks to 408 00:21:51,760 --> 00:21:54,600 Speaker 8: their gas trading. They had what the CEO called an 409 00:21:54,640 --> 00:21:59,040 Speaker 8: exceptional quarter on gas trading, and Shells Tears like BP 410 00:21:59,240 --> 00:22:01,600 Speaker 8: have quite a big, big trading unit as well, so 411 00:22:01,680 --> 00:22:03,879 Speaker 8: it could be reflected there. But there are a lot 412 00:22:03,920 --> 00:22:08,080 Speaker 8: of other areas which aren't looking so bright. So for example, chemicals, 413 00:22:08,280 --> 00:22:12,880 Speaker 8: chemicals for Shell was down almost by a billion dollars Excellon. 414 00:22:13,040 --> 00:22:15,840 Speaker 8: They've got a very big chemicals unit, so we're likely 415 00:22:15,880 --> 00:22:18,440 Speaker 8: to see weakness there. So it's a bit patchy, And 416 00:22:18,680 --> 00:22:21,439 Speaker 8: of course in general commodity prices are softer than they 417 00:22:21,480 --> 00:22:22,760 Speaker 8: were this time last year. 418 00:22:23,200 --> 00:22:27,000 Speaker 2: How are these companies when we think more broadly adapting 419 00:22:27,160 --> 00:22:30,720 Speaker 2: to the energy transition as well, Laura, this is something 420 00:22:30,800 --> 00:22:32,920 Speaker 2: that we look out for details of of how it 421 00:22:32,960 --> 00:22:35,360 Speaker 2: affects their business when we gets earnings updates. But I'm 422 00:22:35,440 --> 00:22:38,800 Speaker 2: keen given that you've been having those conversations at the 423 00:22:38,840 --> 00:22:41,400 Speaker 2: Baker Hughes conference as well as you're reading us where 424 00:22:41,480 --> 00:22:42,439 Speaker 2: the industry is now. 425 00:22:43,840 --> 00:22:46,560 Speaker 8: Well, so you've got, on the one hand, the American 426 00:22:46,640 --> 00:22:49,200 Speaker 8: majors that's on Chevron, who pretty much for the last 427 00:22:49,240 --> 00:22:51,720 Speaker 8: few years to have stuck to their guns of oil 428 00:22:51,760 --> 00:22:53,879 Speaker 8: and gas, saying, this is what we're good at, and 429 00:22:54,400 --> 00:22:56,200 Speaker 8: we're not going to, you know, go into ash or 430 00:22:56,280 --> 00:22:58,480 Speaker 8: win because that's where we're going to make money and 431 00:22:58,560 --> 00:23:01,840 Speaker 8: that's not where our competency lives now. Shell and BP 432 00:23:02,080 --> 00:23:05,080 Speaker 8: they both kind of went down the renewable route that 433 00:23:05,880 --> 00:23:09,000 Speaker 8: have pivoted back to oil and gas as of late, 434 00:23:09,400 --> 00:23:13,399 Speaker 8: so there's definitely a retreat there to Talentgy is probably 435 00:23:13,480 --> 00:23:16,760 Speaker 8: the one that has a little more of a footing 436 00:23:17,040 --> 00:23:19,480 Speaker 8: in the renewable side, with quite a big focus on 437 00:23:19,920 --> 00:23:23,520 Speaker 8: power generations as well as having a very big print 438 00:23:23,600 --> 00:23:24,679 Speaker 8: in the eland G market. 439 00:23:25,320 --> 00:23:27,159 Speaker 2: One of the other factors that these companies are all 440 00:23:27,200 --> 00:23:29,439 Speaker 2: having to deal with, as well as disruption to shipping 441 00:23:29,800 --> 00:23:32,959 Speaker 2: in the Red Sea. How much is that a factor 442 00:23:33,040 --> 00:23:35,120 Speaker 2: that we should be watching out for as we continue 443 00:23:35,119 --> 00:23:36,959 Speaker 2: to look through the season of earnings results. 444 00:23:37,840 --> 00:23:41,320 Speaker 8: Yes, absolutely, I mean it's an important trip point. At 445 00:23:41,359 --> 00:23:44,480 Speaker 8: the moment, the industry is managing that they're shipping around 446 00:23:44,520 --> 00:23:47,480 Speaker 8: the cape or rather the hon of Africa, and so 447 00:23:47,760 --> 00:23:51,080 Speaker 8: at the moment it's kind of being managed. And while 448 00:23:51,240 --> 00:23:54,240 Speaker 8: swan the video, Shehell said, they're also looking at other 449 00:23:54,320 --> 00:23:57,960 Speaker 8: things like swapping tankers from one region to another. So 450 00:23:58,520 --> 00:24:01,280 Speaker 8: at the moment it's manageable, but it's definitely something that 451 00:24:01,560 --> 00:24:05,520 Speaker 8: could overstill into the wider region and could become more 452 00:24:05,560 --> 00:24:06,119 Speaker 8: of a problem. 453 00:24:06,400 --> 00:24:08,280 Speaker 2: This is something, of course, we'll continue to be looking 454 00:24:08,359 --> 00:24:11,959 Speaker 2: for details of in these earnings reports as well as 455 00:24:12,280 --> 00:24:14,520 Speaker 2: we look ahead to you you've mentioned BP and some 456 00:24:14,640 --> 00:24:16,640 Speaker 2: of the sort of factors will be watching in their 457 00:24:16,720 --> 00:24:20,320 Speaker 2: results as well when it comes to total Energy or 458 00:24:20,400 --> 00:24:22,639 Speaker 2: other majors in the sector too. What are the other 459 00:24:22,760 --> 00:24:24,639 Speaker 2: themes that you're going to be watching for as we 460 00:24:24,680 --> 00:24:26,160 Speaker 2: get the next set of results. 461 00:24:26,520 --> 00:24:30,760 Speaker 8: Well, definitely anything that talks to demand, because demand is 462 00:24:30,760 --> 00:24:32,600 Speaker 8: looking a little bit weaker at the moment. We saw 463 00:24:32,680 --> 00:24:36,360 Speaker 8: that again this morning from Shells results that product results 464 00:24:36,440 --> 00:24:39,320 Speaker 8: were a lot softer than they were a few quarters ago. 465 00:24:39,440 --> 00:24:41,800 Speaker 8: So that's something that will definitely be looking out for 466 00:24:42,400 --> 00:24:45,879 Speaker 8: and on guess demand. You know, we've had since the 467 00:24:46,119 --> 00:24:50,760 Speaker 8: rest invasion of Ukraine's gases obviously had some very volatile 468 00:24:50,880 --> 00:24:53,760 Speaker 8: quarters and so far this winter has been quite soft. 469 00:24:53,960 --> 00:24:58,080 Speaker 8: We've had a mild winter, so inventary levels in Europe 470 00:24:58,119 --> 00:24:58,800 Speaker 8: were quite full. 471 00:24:58,920 --> 00:25:01,320 Speaker 2: That's our energy reporter Laura Hurst. And of course we 472 00:25:01,400 --> 00:25:04,760 Speaker 2: will have full coverage of those next set of earnings 473 00:25:04,800 --> 00:25:08,120 Speaker 2: from the big oil companies BP and Total next week 474 00:25:08,240 --> 00:25:11,399 Speaker 2: on Bloomberg Radio. I'm Stephen Carroll in London. You can 475 00:25:11,480 --> 00:25:14,639 Speaker 2: catch us every weekday morning here for Bloomberg Daybreak Europe, 476 00:25:14,680 --> 00:25:17,600 Speaker 2: beginning at six am in London and one am on 477 00:25:17,760 --> 00:25:18,359 Speaker 2: Wall Streets. 478 00:25:18,560 --> 00:25:21,119 Speaker 1: Tom, Thank you, Steven, and coming up on Bloomberg day 479 00:25:21,119 --> 00:25:23,240 Speaker 1: Break weekend. The Lunar New Year kicks off at the 480 00:25:23,320 --> 00:25:26,080 Speaker 1: end of the week. Could the holiday usher in a 481 00:25:26,160 --> 00:25:30,520 Speaker 1: new wave of consumption. I'm Tom Busby and this is Bloomberg. 482 00:25:40,800 --> 00:25:42,840 Speaker 1: I'm Tom Busby in New York with your global look 483 00:25:42,840 --> 00:25:45,280 Speaker 1: ahead at the top stories for investors in the coming week. 484 00:25:45,600 --> 00:25:48,040 Speaker 1: The Year of the Dragon is upon us. The Lunar 485 00:25:48,119 --> 00:25:51,639 Speaker 1: New Year falls on Saturday, February tenth, but it's the 486 00:25:51,800 --> 00:25:55,119 Speaker 1: pre festival spending patterns that will give some hints to 487 00:25:55,240 --> 00:25:57,760 Speaker 1: the state of China's economy, and for a preview, we 488 00:25:57,920 --> 00:26:00,800 Speaker 1: turn to Daybreak Asia co host Doug Isner, who spoke 489 00:26:00,840 --> 00:26:04,320 Speaker 1: with Shirley Joo, Bloomberg News reporter in Hong Kong. 490 00:26:04,720 --> 00:26:07,560 Speaker 3: Tom the travel rush for the Lunar New Year holiday 491 00:26:07,680 --> 00:26:11,159 Speaker 3: or Spring festival has already started. A key question is 492 00:26:11,240 --> 00:26:14,080 Speaker 3: whether Chinese consumers are confident enough to give a much 493 00:26:14,200 --> 00:26:17,800 Speaker 3: needed boost to the domestic economy. For a closer look, 494 00:26:17,800 --> 00:26:21,720 Speaker 3: we're joined by Bloomberg Shirley Joo, who covers Chinese conglomerates, 495 00:26:21,800 --> 00:26:26,880 Speaker 3: including companies focused on consumers, gaming, and telecommunication. Shirley, thanks 496 00:26:26,920 --> 00:26:28,600 Speaker 3: so much for taking time to chat with us. I 497 00:26:28,680 --> 00:26:30,600 Speaker 3: want to begin with the fact that as we enter 498 00:26:30,720 --> 00:26:32,879 Speaker 3: the Year of the Dragon, I'd like to know a 499 00:26:32,960 --> 00:26:34,720 Speaker 3: little bit more about the Year of the Dragon. What 500 00:26:34,880 --> 00:26:35,440 Speaker 3: is it known for. 501 00:26:36,840 --> 00:26:39,520 Speaker 6: Well, actually, the Year of the Dragon is supposed to 502 00:26:39,600 --> 00:26:43,000 Speaker 6: be a year of particularly good luck in China. So 503 00:26:43,160 --> 00:26:46,760 Speaker 6: you see more babies being born and you see people 504 00:26:48,240 --> 00:26:52,000 Speaker 6: typically spending more than usual in the Year of the Dragon. 505 00:26:52,160 --> 00:26:56,879 Speaker 6: So there is expectation that the recovery this year would 506 00:26:56,920 --> 00:26:58,360 Speaker 6: be faster than last year. 507 00:26:58,960 --> 00:27:01,000 Speaker 3: So a travel as we know, is obviously a big 508 00:27:01,080 --> 00:27:03,480 Speaker 3: part of the story when it comes to celebrating and 509 00:27:04,000 --> 00:27:07,600 Speaker 3: being with family and friends. Are the expectations pretty high 510 00:27:07,640 --> 00:27:08,000 Speaker 3: this year? 511 00:27:09,920 --> 00:27:13,359 Speaker 6: Well, I think for domestic travel in China, the expectation 512 00:27:13,520 --> 00:27:16,800 Speaker 6: is certainly high because we've seen last year, even though 513 00:27:17,000 --> 00:27:21,200 Speaker 6: you know, China's economy was slowing down and people spending 514 00:27:21,359 --> 00:27:25,840 Speaker 6: power has declined and the consumer sentiment wasn't that good, 515 00:27:26,520 --> 00:27:29,600 Speaker 6: travel was really one of the bright spots in China 516 00:27:29,760 --> 00:27:33,560 Speaker 6: last year. So the expectation is that the trend will 517 00:27:33,680 --> 00:27:37,640 Speaker 6: continue this year. People, you know, because they don't want 518 00:27:37,680 --> 00:27:41,560 Speaker 6: to spend on any big ticket items and the demand 519 00:27:41,720 --> 00:27:45,040 Speaker 6: for international travel is just starting to pick up but 520 00:27:45,520 --> 00:27:49,119 Speaker 6: still pretty weak, so people tend to you know, seek 521 00:27:50,080 --> 00:27:53,359 Speaker 6: entertainment and leisure for during domestic travel. 522 00:27:53,640 --> 00:27:56,240 Speaker 3: Yeah, the most recent data that we had on the 523 00:27:56,320 --> 00:27:59,880 Speaker 3: PMI services for China showed a bit of an improvement. 524 00:28:00,119 --> 00:28:02,080 Speaker 3: It was small, but it may have been kind of 525 00:28:02,119 --> 00:28:05,080 Speaker 3: a leading indicator that people are expecting some of the 526 00:28:05,160 --> 00:28:08,920 Speaker 3: services industries to do well during the holiday period. Is 527 00:28:08,960 --> 00:28:09,760 Speaker 3: that a fair statement. 528 00:28:10,640 --> 00:28:17,640 Speaker 6: Yes, services industry, especially experience led activities. For example, last year, 529 00:28:17,760 --> 00:28:20,520 Speaker 6: we saw the box office doing quite well and we 530 00:28:20,680 --> 00:28:24,720 Speaker 6: saw people typically spending on food and drinks, like they're 531 00:28:24,800 --> 00:28:28,600 Speaker 6: buying beer, going to restaurants, they're going to second tier 532 00:28:28,760 --> 00:28:34,040 Speaker 6: or thirdier cities for barbecue and yeah, people tend to 533 00:28:34,359 --> 00:28:37,520 Speaker 6: I think during an economic slowdown, when the outlook is 534 00:28:37,720 --> 00:28:40,719 Speaker 6: still not very certain for a lot of people, they 535 00:28:40,840 --> 00:28:44,680 Speaker 6: tend to splash out on just instant gratification activities. 536 00:28:44,800 --> 00:28:47,440 Speaker 3: So when you look at things like ticket prices or 537 00:28:47,880 --> 00:28:51,400 Speaker 3: movie tickets, are prices generally higher than they were a year. 538 00:28:51,280 --> 00:28:55,680 Speaker 6: Ago, well, definitely, if you you know, buy China standards, 539 00:28:56,480 --> 00:28:59,800 Speaker 6: movie ticket prices in China now would be higher than 540 00:29:00,320 --> 00:29:03,880 Speaker 6: a few years ago, but the increase isn't that much, 541 00:29:04,120 --> 00:29:07,720 Speaker 6: and generally ticket prices in China is still fairly low. 542 00:29:07,840 --> 00:29:12,000 Speaker 6: For example, we're talking about fifty yue for seeing a movie. 543 00:29:12,400 --> 00:29:15,480 Speaker 6: That's why a lot of people from Hong Kong, which 544 00:29:15,600 --> 00:29:19,520 Speaker 6: is neighboring you some inland Chinese cities like Shinjin. A 545 00:29:19,600 --> 00:29:22,080 Speaker 6: lot of people are going to Shinjin to watch movies 546 00:29:22,200 --> 00:29:23,320 Speaker 6: because it's so cheap. 547 00:29:23,920 --> 00:29:26,160 Speaker 3: When we looked at the latest activity data for the 548 00:29:26,280 --> 00:29:28,880 Speaker 3: month of December, I think the unemployment rate was around 549 00:29:28,960 --> 00:29:33,440 Speaker 3: five percent. So has there been an urge among companies 550 00:29:33,560 --> 00:29:36,239 Speaker 3: in the services industry to bring back workers. Now, at 551 00:29:36,320 --> 00:29:37,719 Speaker 3: least on a temporary basis. 552 00:29:38,320 --> 00:29:42,280 Speaker 6: I think the demand is certainly picking up, and I 553 00:29:42,440 --> 00:29:46,000 Speaker 6: think the reason why we've seen a lot of Hong 554 00:29:46,080 --> 00:29:50,440 Speaker 6: Kong people going to Shinjin to shop and spend on 555 00:29:50,720 --> 00:29:55,880 Speaker 6: entertainment partly is because the service industry there performs much 556 00:29:55,960 --> 00:29:59,800 Speaker 6: better than in Hong Kong. And I've heard that that's 557 00:30:00,200 --> 00:30:03,800 Speaker 6: cause because there because there were a lot of layoffs, 558 00:30:04,360 --> 00:30:08,360 Speaker 6: the youth unemployment was pretty high, so people just went 559 00:30:08,440 --> 00:30:12,400 Speaker 6: to Shinjen and started their started up their own businesses 560 00:30:12,600 --> 00:30:18,040 Speaker 6: like street food stalls and restaurants are able to hire 561 00:30:18,200 --> 00:30:24,320 Speaker 6: younger employees, and they typically are more creative and they 562 00:30:24,840 --> 00:30:29,760 Speaker 6: you know, provide better services to customers. And that's one 563 00:30:29,800 --> 00:30:32,400 Speaker 6: of the reasons why a lot of Hong Kong people 564 00:30:33,280 --> 00:30:37,640 Speaker 6: who are used to the sort of subpar service quality 565 00:30:37,720 --> 00:30:40,400 Speaker 6: in Hong Kong because you know, it's a very cut throw, 566 00:30:40,760 --> 00:30:44,920 Speaker 6: very fast paced city, they feel that the service quality 567 00:30:44,960 --> 00:30:48,160 Speaker 6: in Chinngin is much higher, so they all flocked to 568 00:30:48,280 --> 00:30:51,200 Speaker 6: Hinjin to shop and to entertain themselves. 569 00:30:51,280 --> 00:30:53,560 Speaker 3: Surely, one of the other destination points that I think 570 00:30:53,600 --> 00:30:56,640 Speaker 3: of is Macau. Obviously, gaming a big part of that story. 571 00:30:57,040 --> 00:30:59,840 Speaker 3: How do you think the gaming companies, the casinos will 572 00:30:59,840 --> 00:31:01,880 Speaker 3: do this year during the holiday period. 573 00:31:02,640 --> 00:31:05,280 Speaker 6: Well, last year for casinos it was a great year, 574 00:31:05,720 --> 00:31:09,720 Speaker 6: so people sort of expected, you know, the recovery would 575 00:31:09,800 --> 00:31:13,640 Speaker 6: do quite well. But actually the performance of Macau casinos 576 00:31:13,760 --> 00:31:18,200 Speaker 6: exceeded the expectation. And I think it's because Macau is 577 00:31:18,280 --> 00:31:23,240 Speaker 6: shifting to attract more, you know, mass market tourists after 578 00:31:23,360 --> 00:31:28,640 Speaker 6: Beijing's crapdown on the VIP gamblers. So we saw casinos 579 00:31:28,760 --> 00:31:33,960 Speaker 6: hosting more concerts and more conferences and more sports events 580 00:31:34,440 --> 00:31:37,160 Speaker 6: to draw in a lot of people to Macau. And 581 00:31:37,360 --> 00:31:40,720 Speaker 6: this year I think the growth will sort of start 582 00:31:40,840 --> 00:31:46,080 Speaker 6: to stabilize, maybe because the Penta travel demand among Chinese 583 00:31:46,200 --> 00:31:49,320 Speaker 6: to Macau could slow down at a certain point of 584 00:31:49,400 --> 00:31:53,440 Speaker 6: the year. And also, you know, casinos typically are spending 585 00:31:53,600 --> 00:31:58,240 Speaker 6: more to attract these people, so their earnings may you know, 586 00:31:58,320 --> 00:32:00,800 Speaker 6: the growth may not be as fast as last year, 587 00:32:00,880 --> 00:32:04,240 Speaker 6: but generally, I would say sentiment wise, it's still quite good. 588 00:32:04,360 --> 00:32:08,440 Speaker 6: People are still going to Macau to see concerts and 589 00:32:08,520 --> 00:32:11,320 Speaker 6: then they may just you know, drop by casinos to 590 00:32:11,440 --> 00:32:17,320 Speaker 6: gamble and shop luxury. So I think, so far, I 591 00:32:17,600 --> 00:32:20,000 Speaker 6: see Macau is still on the recovery track. 592 00:32:20,120 --> 00:32:22,120 Speaker 3: Well, that's a great transition because I want to talk 593 00:32:22,160 --> 00:32:25,520 Speaker 3: about gift giving next. Traditionally, aren't the red envelopes given? 594 00:32:25,560 --> 00:32:28,400 Speaker 3: And that's just basically giving cash, right, You're not giving 595 00:32:28,440 --> 00:32:28,840 Speaker 3: an item. 596 00:32:29,440 --> 00:32:33,880 Speaker 6: Yes, so that's a you know, long time Chinese New 597 00:32:33,960 --> 00:32:39,040 Speaker 6: Year traditions. So people just put very new newly either 598 00:32:39,120 --> 00:32:42,520 Speaker 6: iron them or you go to bank for new banknotes 599 00:32:42,600 --> 00:32:45,360 Speaker 6: and you put them in the red packets and you 600 00:32:45,520 --> 00:32:49,000 Speaker 6: give it to your security guards, to your relatives, to 601 00:32:49,600 --> 00:32:54,280 Speaker 6: any people seeing more junior to you, like you know, 602 00:32:54,560 --> 00:32:56,200 Speaker 6: children of your relatives. 603 00:32:56,400 --> 00:32:58,720 Speaker 3: So for friends and family members, And if you wanted 604 00:32:58,760 --> 00:33:00,520 Speaker 3: to spend a little bit more money and you were 605 00:33:00,640 --> 00:33:03,600 Speaker 3: interested in giving let's say, a particular item, whether it 606 00:33:03,720 --> 00:33:06,120 Speaker 3: was a luxury good or something else, do you have 607 00:33:06,200 --> 00:33:08,440 Speaker 3: a sense of kind of the price range that the 608 00:33:08,520 --> 00:33:12,320 Speaker 3: average person would spend giving a gift to a family member. 609 00:33:12,800 --> 00:33:14,840 Speaker 3: Is it less than fifty dollars us? 610 00:33:15,320 --> 00:33:19,320 Speaker 6: I will say it would be more than fifty dollars US? Okay? 611 00:33:19,400 --> 00:33:22,000 Speaker 3: And how might they spend that? Might they buy a 612 00:33:22,120 --> 00:33:24,320 Speaker 3: device of some kind. Might it be a piece of 613 00:33:24,440 --> 00:33:27,719 Speaker 3: technology or a piece of clothing. How would the average 614 00:33:27,800 --> 00:33:29,520 Speaker 3: consumer go about choosing a gift. 615 00:33:30,360 --> 00:33:33,600 Speaker 6: We saw the general trend last year is that people 616 00:33:34,360 --> 00:33:38,640 Speaker 6: just sort of you know, they prefer to spend on 617 00:33:39,440 --> 00:33:44,640 Speaker 6: less expensive items and they didn't spend as much on 618 00:33:44,920 --> 00:33:49,400 Speaker 6: luxury items as before. So we've seen like a decline 619 00:33:49,520 --> 00:33:55,800 Speaker 6: in spending over for example, jewelry, high fashion clothing, handbags, 620 00:33:56,880 --> 00:34:00,880 Speaker 6: and these are actually not for traditional Chinese New Year 621 00:34:01,000 --> 00:34:05,000 Speaker 6: gifting as well. So for Chinese New Year gifting, I 622 00:34:05,040 --> 00:34:09,480 Speaker 6: would say, really people would spend more on the sort 623 00:34:09,480 --> 00:34:16,480 Speaker 6: of healthcare products and medicine and you know, dried seafood. 624 00:34:16,840 --> 00:34:21,200 Speaker 6: These are more like preferred by Chinese families. 625 00:34:21,640 --> 00:34:23,640 Speaker 3: So the other question then that I have would be 626 00:34:23,840 --> 00:34:26,000 Speaker 3: how do you acquire these goods? Is it going to 627 00:34:26,080 --> 00:34:28,560 Speaker 3: a brick and mortar a physical store or is a 628 00:34:28,600 --> 00:34:30,480 Speaker 3: lot of commerce being conducted online? 629 00:34:31,040 --> 00:34:34,440 Speaker 6: A lot of commerce would be conducted online. So in China, 630 00:34:34,600 --> 00:34:38,040 Speaker 6: e commerce is everything. That's why we've seen a lot 631 00:34:38,120 --> 00:34:41,960 Speaker 6: of luxury brands they even though they want to maintain 632 00:34:42,280 --> 00:34:47,160 Speaker 6: their very high and exclusive image, they have to set 633 00:34:47,239 --> 00:34:51,640 Speaker 6: up shops on some of China's biggest e commerce platforms 634 00:34:51,760 --> 00:34:55,719 Speaker 6: because they know that's the best access to Chinese consumers, 635 00:34:56,160 --> 00:34:59,880 Speaker 6: especially after COVID, you know, during COVID. People just did 636 00:35:00,200 --> 00:35:04,840 Speaker 6: everything online, and delivery in China is so fast and convenient. 637 00:35:05,320 --> 00:35:09,080 Speaker 6: If you order, for example, at ten am this morning, 638 00:35:09,520 --> 00:35:12,799 Speaker 6: it's likely that your products will be delivered by noon. 639 00:35:13,160 --> 00:35:17,000 Speaker 6: So people just find it so convenient and you can 640 00:35:17,080 --> 00:35:21,759 Speaker 6: find everything online. So e commerce is really a dominating 641 00:35:21,920 --> 00:35:24,680 Speaker 6: force in China. That's why you've seen a lot of 642 00:35:24,840 --> 00:35:28,799 Speaker 6: the mid range or low range shopping malls in decline. 643 00:35:28,960 --> 00:35:31,759 Speaker 6: So if you go to China, chances are that you 644 00:35:31,800 --> 00:35:34,920 Speaker 6: will see some shopping malls that have no people in 645 00:35:35,400 --> 00:35:38,320 Speaker 6: and sometimes you know, maybe the lights aren't on because 646 00:35:38,480 --> 00:35:39,279 Speaker 6: nobody's going. 647 00:35:39,760 --> 00:35:41,960 Speaker 3: One of the things that's popular here in the US 648 00:35:42,000 --> 00:35:45,920 Speaker 3: around holiday time and gift giving gift cards, where the 649 00:35:46,239 --> 00:35:49,000 Speaker 3: gift giver doesn't actually have to purchase an item. They 650 00:35:49,080 --> 00:35:52,680 Speaker 3: simply purchase a card with a dollar value that they 651 00:35:52,760 --> 00:35:55,360 Speaker 3: can give the recipient, and then the recipient would in 652 00:35:55,440 --> 00:35:59,000 Speaker 3: turn decide what they want to purchase with that card. 653 00:35:59,400 --> 00:36:02,320 Speaker 3: Is that way of gift giving popular at all or 654 00:36:02,560 --> 00:36:05,680 Speaker 3: is there the kind of the obligation to come up 655 00:36:05,719 --> 00:36:07,200 Speaker 3: with a gift per se? 656 00:36:08,239 --> 00:36:11,759 Speaker 6: I think the red packets would really cover a lot 657 00:36:11,840 --> 00:36:15,600 Speaker 6: of that. So as we discuss just now, cash giving 658 00:36:15,920 --> 00:36:20,759 Speaker 6: is a big thing, and particularly nowadays in China, cash 659 00:36:20,840 --> 00:36:24,600 Speaker 6: giving on social media. For example, we chat is one 660 00:36:24,640 --> 00:36:28,400 Speaker 6: of China's biggest social media platforms. It's actually got a 661 00:36:28,600 --> 00:36:33,600 Speaker 6: virtual red packet giving service, so you can just you know, 662 00:36:33,880 --> 00:36:38,920 Speaker 6: send your relative or your friends ten bucks or one 663 00:36:39,040 --> 00:36:40,680 Speaker 6: hundred or even one thousand. 664 00:36:40,880 --> 00:36:41,080 Speaker 3: Wow. 665 00:36:41,840 --> 00:36:45,319 Speaker 6: Yeah, and you can spend you know, and they can 666 00:36:45,400 --> 00:36:46,120 Speaker 6: spend anything. 667 00:36:46,760 --> 00:36:48,680 Speaker 3: Surely, before I let you go, can you just tell 668 00:36:48,760 --> 00:36:50,960 Speaker 3: me share with me how you're planning to spend the holiday. 669 00:36:51,000 --> 00:36:52,080 Speaker 3: Are you planning to travel? 670 00:36:52,640 --> 00:36:53,239 Speaker 1: Yes, I do. 671 00:36:53,640 --> 00:36:56,440 Speaker 6: I'm planning to go back to England, China where my 672 00:36:56,600 --> 00:36:57,200 Speaker 6: parents live. 673 00:36:57,520 --> 00:36:59,759 Speaker 3: And when you get together with them, what's kind of 674 00:36:59,800 --> 00:37:02,320 Speaker 3: the typical way that the family would celebrate the Lunar 675 00:37:02,360 --> 00:37:02,680 Speaker 3: New Year? 676 00:37:03,280 --> 00:37:07,320 Speaker 6: So first we would just have a big dinner and 677 00:37:07,520 --> 00:37:10,840 Speaker 6: we will watch this you know, annual it's a big tradition, 678 00:37:11,120 --> 00:37:17,800 Speaker 6: annual spring festival gala organized by state media, the quality 679 00:37:17,880 --> 00:37:22,239 Speaker 6: of which I would say has been in decline every year. 680 00:37:22,600 --> 00:37:27,400 Speaker 6: And the younger generation are you know, starting to not 681 00:37:27,560 --> 00:37:30,800 Speaker 6: want to watch it anymore, but out of filial piety 682 00:37:31,000 --> 00:37:34,080 Speaker 6: and out of family duty, because your parents are all 683 00:37:34,160 --> 00:37:36,000 Speaker 6: watching that, you have to watch with them. 684 00:37:36,200 --> 00:37:38,840 Speaker 3: Shirley, thank you so much for helping us preview the 685 00:37:39,040 --> 00:37:41,800 Speaker 3: lunar New Year festivities. It's the Year of the Dragon 686 00:37:41,960 --> 00:37:46,360 Speaker 3: coming up, surely. Jiao covers Chinese conglomerates, including companies focused 687 00:37:46,400 --> 00:37:50,360 Speaker 3: on consumers, gaming, and telecommunications. I'm Doug Prisner. You can 688 00:37:50,480 --> 00:37:53,560 Speaker 3: join Brian Curtis and myself weekdays here for Bloomberg day 689 00:37:53,600 --> 00:37:57,560 Speaker 3: Break Asia beginning at nine am in Hong Kong, eight 690 00:37:57,680 --> 00:37:58,680 Speaker 3: pm on Wall Street. 691 00:37:58,880 --> 00:38:01,520 Speaker 1: Tom Our thanks to Doug, Anne Shirley, and that does 692 00:38:01,600 --> 00:38:04,160 Speaker 1: it for this edition of Bloomberg day Break Weekend. Join 693 00:38:04,239 --> 00:38:06,399 Speaker 1: us again Monday morning at five am Wall Street time 694 00:38:06,440 --> 00:38:08,560 Speaker 1: for the latest on the market's overseas and the news 695 00:38:08,680 --> 00:38:11,680 Speaker 1: you need to start your day. I'm Tom Buzzby. Stay 696 00:38:11,719 --> 00:38:14,560 Speaker 1: with us. Top stories and global business headlines are coming 697 00:38:14,680 --> 00:38:15,520 Speaker 1: up right now.