WEBVTT - Bloomberg Daybreak Weekend: The Fed, The King, The President 0:00:02.960 --> 0:00:06.040 This is Bloomberg day Break Weekend, our global look at 0:00:06.080 --> 0:00:08.879 the top stories in the coming week from our Daybreak 0:00:08.920 --> 0:00:12.240 anchors all around the world. Straight ahead on the program, 0:00:12.320 --> 0:00:15.720 here comes the FED meeting. I'm Amy Morris in Washington. 0:00:15.960 --> 0:00:17.520 I'm Ryan Courtesy in Hong Kong. 0:00:17.680 --> 0:00:21.120 So what's next for the Reserve Bank of Australia continuing 0:00:21.160 --> 0:00:22.720 the pause on interest rates? 0:00:23.120 --> 0:00:23.479 Or Hi? 0:00:23.960 --> 0:00:26.279 I'm Kaylee Liones in Washington, where it looks like the 0:00:26.320 --> 0:00:29.160 twenty twenty four election season is already heating up. 0:00:29.280 --> 0:00:32.159 I'm Stephen Kralen London, where final preparations are being made 0:00:32.200 --> 0:00:34.280 for the coronation of King Charles the Third. 0:00:35.440 --> 0:00:38.720 That's all straight ahead on Bloomberg day Break Weekend on 0:00:38.880 --> 0:00:41.720 Bloomberg E Love the three own New York, Bloomberg ninety 0:00:41.800 --> 0:00:45.400 nine to one, Washington, DC, Bloomberg one O six one, Boston, 0:00:45.440 --> 0:00:50.240 Bloomberg nine sixty, San Francisco, DAB Digital Radio London, Sirius 0:00:50.400 --> 0:00:53.640 XM one nineteen and around the world on Bloomberg Radio 0:00:53.720 --> 0:00:56.040 dot Com and via the Bloomberg Business App. 0:01:00.200 --> 0:01:02.480 To you, I'm anymore. As we begin today's program with 0:01:02.520 --> 0:01:05.200 a look at the FED, a key index of underlying 0:01:05.200 --> 0:01:08.440 inflation that's closely followed by the Federal Reserve remained elevated 0:01:08.560 --> 0:01:11.040 last month. Joining us now to talk about it and 0:01:11.120 --> 0:01:13.160 some of the other data we've seen in the past week, 0:01:13.160 --> 0:01:17.520 Bloomberg's Michael McKee, our Global Economics and Policy editor, Michael, 0:01:17.560 --> 0:01:19.840 it is a pleasure. Thank you for joining us. We 0:01:19.959 --> 0:01:22.720 had a lot of data out on inflation this past week. 0:01:23.280 --> 0:01:25.840 How does this overall tilt things for you in terms 0:01:25.920 --> 0:01:29.039 of what the Fed does at the upcoming meeting. Let's 0:01:29.040 --> 0:01:31.120 just start with the inflation data that came out Friday. 0:01:31.520 --> 0:01:32.520 Well, basically, I don't. 0:01:32.400 --> 0:01:34.479 Think it changes a whole lot about what they're going 0:01:34.520 --> 0:01:37.120 to do in the market reaction sort of reflects that 0:01:37.280 --> 0:01:39.800 because they had signaled they were going to do another 0:01:39.840 --> 0:01:43.440 twenty five basis points because inflation's too high, and though 0:01:43.720 --> 0:01:48.760 headline inflation in the PCE numbers which they watch came 0:01:48.840 --> 0:01:52.160 down significantly, it's still more than double what the target is. 0:01:52.400 --> 0:01:55.040 So the Federal raised twenty five basis points. We did 0:01:55.120 --> 0:01:59.880 get as sort of flat reading on personal spending. Consumers 0:02:00.000 --> 0:02:03.800 spending in March, and the FEDA will have to decide 0:02:03.840 --> 0:02:11.480 if we're really seeing a whole lot of the previous 0:02:11.800 --> 0:02:14.400 tightenings that they've done hitting the economy and whether there's 0:02:14.440 --> 0:02:17.799 a risk that we go into recession or not. So 0:02:18.480 --> 0:02:20.560 the question will be what they say about what they 0:02:20.600 --> 0:02:22.720 do next, not so much what they're going to do 0:02:23.480 --> 0:02:24.200 on Wednesday. 0:02:24.600 --> 0:02:29.000 A sidebar here, personal spending is unchanged. Personal income rose. 0:02:29.080 --> 0:02:32.120 You mentioned personal spending, So what's happening there when the 0:02:32.120 --> 0:02:34.960 personal income goes up but spending is lower or unchanged. 0:02:35.320 --> 0:02:36.080 Well, it's interesting. 0:02:36.800 --> 0:02:38.680 As long as incomes are going up, people have the 0:02:38.720 --> 0:02:41.120 money to spend, and the savings rate went up, so 0:02:41.160 --> 0:02:44.560 they were socking away some of what they were getting. 0:02:45.360 --> 0:02:47.360 And there has been a theory that they would start 0:02:47.360 --> 0:02:49.480 to run out of money because they would have spent 0:02:49.560 --> 0:02:52.160 down all the stimulus checks they got last year. That 0:02:52.240 --> 0:02:55.280 hasn't happened yet. But we did see a big rise 0:02:55.480 --> 0:02:59.840 in spending in January, a smaller rise in February, and 0:03:00.000 --> 0:03:02.679 now a flat reading for the month of March, which 0:03:02.720 --> 0:03:05.240 suggests consumers are pulling back now. Is that because of 0:03:05.280 --> 0:03:08.760 inflation or just because they bought everything they wanted to 0:03:08.919 --> 0:03:09.960 back in January. 0:03:10.200 --> 0:03:10.760 We don't know. 0:03:11.639 --> 0:03:15.359 So we'll be watching the months to come, as will 0:03:15.400 --> 0:03:17.360 the FED. One thing that happens is we had a 0:03:17.400 --> 0:03:21.400 late easter this year, and usually that affects spending numbers. 0:03:21.760 --> 0:03:23.799 They get moved from one month to another. So let's 0:03:23.800 --> 0:03:26.520 see what happens with April and whether we really have 0:03:26.560 --> 0:03:29.239 a slow down or whether the FED has more work 0:03:29.280 --> 0:03:29.520 to do. 0:03:29.919 --> 0:03:32.200 Is that what the GDP data told you as well? 0:03:32.639 --> 0:03:37.360 Yes, GDP was heavily skewed to improvements in January, and 0:03:37.400 --> 0:03:40.480 things slowed down as the months went on. GDP also 0:03:40.560 --> 0:03:45.720 told us that businesses had stopped investing almost and that 0:03:45.840 --> 0:03:48.080 was a first sign that maybe what the FED has 0:03:48.120 --> 0:03:52.080 done is starting to have an effect on decision making. 0:03:53.120 --> 0:03:54.960 Now, we had a lot of on air guests here 0:03:55.000 --> 0:03:58.880 at Bloomberg over the week that saw recession signs pretty 0:03:58.920 --> 0:04:02.640 much everywhere they looked. They are looking at forward data. 0:04:02.640 --> 0:04:04.400 They claim. The data the FED is looking at is 0:04:04.480 --> 0:04:09.240 backward looking data. Is there validity to that? What say you, Well, there. 0:04:09.080 --> 0:04:11.320 Is validity to it. Most of the data, just by 0:04:11.400 --> 0:04:14.600 its very nature is backward looking because it's compiled what's 0:04:14.640 --> 0:04:18.919 already happened. But some of the data that people focus on, 0:04:19.000 --> 0:04:22.840 including employment, is even more backward looking in the sense 0:04:22.880 --> 0:04:25.320 that the last thing companies want to do is get 0:04:25.400 --> 0:04:28.200 rid of people, and that's especially true now after they 0:04:28.240 --> 0:04:31.039 had a hard time hiring people back after the pandemic. 0:04:31.640 --> 0:04:36.039 So the last sign you're going to get perhaps of 0:04:36.520 --> 0:04:40.200 recession is a change in the labor market. That said, 0:04:40.240 --> 0:04:44.120 the labor market is still remaining very strong. We'll see 0:04:44.360 --> 0:04:47.800 next Friday whether we get a strong reading for the 0:04:48.279 --> 0:04:51.279 April jobs report, But what we've seen in terms of 0:04:52.560 --> 0:04:57.200 jobless claims, things like that have shown that right now 0:04:57.720 --> 0:04:59.720 we are not seeing companies back off. 0:05:00.920 --> 0:05:04.520 This is your wheelhouse watching everything the FED says and does. 0:05:05.160 --> 0:05:08.599 Are you noticing any subtle shifts slightly that would tee 0:05:08.680 --> 0:05:11.120 us up for what they might be thinking about doing 0:05:11.240 --> 0:05:12.640 next after the meeting? 0:05:13.120 --> 0:05:13.720 Not really. 0:05:13.960 --> 0:05:16.880 Those who think they should do more have basically said 0:05:16.880 --> 0:05:19.039 they should do more, people like Jim Bullard of Saint 0:05:19.080 --> 0:05:23.560 Louis suggesting that we need to go above five and 0:05:23.560 --> 0:05:29.119 a half to get restrictive enough monetary policy. But most 0:05:29.160 --> 0:05:32.480 have stayed with the idea that five point one percent 0:05:32.560 --> 0:05:35.640 as an effective rate, which they put into the dot plot, 0:05:36.080 --> 0:05:39.440 is going to be good enough. And five point one 0:05:39.800 --> 0:05:42.920 as an effective rate would imply that the range would 0:05:42.920 --> 0:05:44.640 be from five to five and a quarter, So that 0:05:44.680 --> 0:05:48.120 would mean one more rate increase and then they could 0:05:48.200 --> 0:05:49.200 decide whether they. 0:05:49.320 --> 0:05:50.440 Need any more or not. 0:05:50.839 --> 0:05:54.960 And the suspicion, basically among analysts is that we're going 0:05:55.000 --> 0:05:59.560 to see the FED on hold because they've gotten close 0:05:59.640 --> 0:06:04.160 enough to a restrictive level and there are concerns about 0:06:04.200 --> 0:06:07.280 going too far, so they'd like to wait and see 0:06:07.279 --> 0:06:10.440 what happens in the economy before they get before they 0:06:10.480 --> 0:06:11.640 would do anything more. 0:06:12.400 --> 0:06:15.159 And we are talking with Bloomberg's Michael McKee, our Global 0:06:15.200 --> 0:06:19.200 Economics and Policy editor, and let's build a little bit 0:06:19.240 --> 0:06:22.440 about what you were talking about just now. Any sign 0:06:22.520 --> 0:06:25.279 the FED might be thinking about the split economy, wealthier 0:06:25.320 --> 0:06:28.039 people doing pretty well, those on the lower end of 0:06:28.120 --> 0:06:31.000 the pay scale struggling to make ends meet. We've seen 0:06:31.279 --> 0:06:34.680 plenty of surveys that show quite a number of people 0:06:34.720 --> 0:06:37.880 of all ages living hand to mouth, a lot of millennials, 0:06:38.120 --> 0:06:40.720 by the way, in a recent study that shows that 0:06:40.880 --> 0:06:42.520 generation gap is growing. 0:06:43.040 --> 0:06:44.240 I was going to ask you, can you lend me 0:06:44.279 --> 0:06:45.200 ten dollars for lunch? 0:06:46.520 --> 0:06:50.480 No, the FED would say, there isn't much they can 0:06:50.480 --> 0:06:53.719 do about it. What they can do is try to 0:06:53.800 --> 0:06:57.120 set the economic conditions that would provide for maximum employment. 0:06:57.520 --> 0:06:59.120 Because if you have a job, you have a much 0:06:59.160 --> 0:07:02.040 better chance of having enough money to at least eat on. 0:07:02.400 --> 0:07:03.440 And that was. 0:07:03.400 --> 0:07:07.760 Their policy leading up to the pandemic, that they would 0:07:07.880 --> 0:07:12.840 keep rates low because they wanted to spread the good 0:07:12.960 --> 0:07:16.119 labor market conditions to those who were at the lower 0:07:16.200 --> 0:07:18.680 end of the income scale. And coming out of the pandemic, 0:07:18.720 --> 0:07:24.160 we did see that wages for people on a percentage 0:07:24.200 --> 0:07:26.640 comparison basis, wages for people at the lower ends went 0:07:26.720 --> 0:07:29.640 up faster than for people at the higher end. Now 0:07:29.680 --> 0:07:32.760 that started to change some, but the Fed can't do 0:07:32.880 --> 0:07:36.480 a whole lot about it. Their first priority is inflation, 0:07:36.600 --> 0:07:39.280 so they're going to keep interest rates high, and that 0:07:39.360 --> 0:07:43.880 will hurt people who would like to borrow and can't 0:07:43.920 --> 0:07:46.880 afford higher interest rates. So to that extent, there is 0:07:47.280 --> 0:07:51.160 a problem. But as long as unemployment remains very close 0:07:51.240 --> 0:07:54.440 to the levels it is now, people are still doing okay. 0:07:55.040 --> 0:07:57.600 But inflation is a tax, and if you spend most 0:07:57.600 --> 0:08:01.600 of your money on food or energy, it's gonna really 0:08:01.680 --> 0:08:02.000 hurt you. 0:08:02.120 --> 0:08:04.760 We saw some housing numbers as well this past week. 0:08:04.920 --> 0:08:09.280 What about the housing market is happening? What's that tell you? 0:08:09.920 --> 0:08:12.240 Well, the housing market is usually one of the first 0:08:12.360 --> 0:08:15.360 and I think this time was as well to respond 0:08:15.440 --> 0:08:20.480 to higher increase in interest rates, because that's the cost 0:08:20.520 --> 0:08:21.160 of buying. 0:08:20.880 --> 0:08:22.880 A house, is what we pay for your mortgage. 0:08:23.280 --> 0:08:26.080 So we did see a real drop off in home 0:08:26.200 --> 0:08:30.960 sales and a drop in the number of homes that 0:08:31.120 --> 0:08:32.040 were for sale. 0:08:32.640 --> 0:08:33.400 That seems to. 0:08:33.360 --> 0:08:38.120 Be starting to turn a little bit, which is hard 0:08:38.160 --> 0:08:40.160 for the FED to figure out. This has taken a 0:08:40.800 --> 0:08:43.200 long time for it to play out in the economy. 0:08:43.200 --> 0:08:46.560 It's a weird post pandemic situation, but we're starting to 0:08:46.559 --> 0:08:51.280 see housing be less of a drag. It's not it's 0:08:51.320 --> 0:08:54.240 not healed, it's not better, it's not a thing you 0:08:54.280 --> 0:08:57.439 want to go rushing out to invest in, but it 0:08:57.480 --> 0:08:59.720 is starting to be less of a drag, which could 0:08:59.760 --> 0:09:03.920 mean good news for the FED because a lot revolves 0:09:03.920 --> 0:09:07.120 around housing and the economy, not only just the cost 0:09:07.160 --> 0:09:11.040 of construction and that sort of thing, but also when 0:09:11.040 --> 0:09:13.840 you buy house, buy new carpets or new furniture or 0:09:13.880 --> 0:09:16.160 things like that. It can make a big difference when 0:09:16.160 --> 0:09:18.680 housing is significantly growing. 0:09:18.960 --> 0:09:21.120 What's the key factor for you? What piece of data 0:09:21.200 --> 0:09:24.160 really tells the whole story or does that even exist? 0:09:24.640 --> 0:09:26.920 There's nothing that tells the whole story, but I think 0:09:27.080 --> 0:09:29.760 the things that you're looking at are a combination of 0:09:30.200 --> 0:09:30.959 the jobs report. 0:09:31.040 --> 0:09:35.160 You want to see the economy. What the FED wants. 0:09:34.960 --> 0:09:39.360 To see is that we create fewer jobs each month. 0:09:39.800 --> 0:09:43.120 We want to create enough jobs to give one to 0:09:43.160 --> 0:09:46.559 everybody who's looking for one, but not so many that we. 0:09:46.600 --> 0:09:50.040 Have trouble attracting workers. 0:09:50.880 --> 0:09:53.560 And the same time, then we are looking at the 0:09:53.600 --> 0:09:57.480 inflation data, and you picked your indicator, but basically you 0:09:57.520 --> 0:10:01.400 want to see inflation continuing to come down month over month, 0:10:01.480 --> 0:10:04.400 so the progress is being made. Those are the two 0:10:04.440 --> 0:10:07.000 things that sort of signal what the FED is going 0:10:07.080 --> 0:10:10.480 to do and where the economy is now. For the 0:10:10.520 --> 0:10:12.719 next meeting and a couple of meetings after that, we're 0:10:12.720 --> 0:10:15.000 also going to be looking at the Senior Loan Officers 0:10:15.080 --> 0:10:17.200 Survey to see if all the problems that we have 0:10:17.320 --> 0:10:22.720 had in the banking system turn into lack of credit. 0:10:22.760 --> 0:10:26.000 If banks pull back on lending because they're nervous about 0:10:26.000 --> 0:10:28.880 all this, that could hurt the economy. That could slow 0:10:28.880 --> 0:10:33.520 the economy even more. It could affect what the FED does. 0:10:33.679 --> 0:10:36.160 They may not feel like they have to raise rates 0:10:36.160 --> 0:10:40.160 as high if banks are tightening credit significantly. But we 0:10:40.280 --> 0:10:42.560 just don't know at this point yet, and that will 0:10:42.559 --> 0:10:45.840 come out the week after next, so we still have 0:10:45.880 --> 0:10:46.280 to wait. 0:10:46.400 --> 0:10:49.480 That was our Global Economics and Policy editor Michael McKee, 0:10:49.480 --> 0:10:52.320 coming up on Bloomberg day Break weekend. In the UK, 0:10:52.480 --> 0:10:55.960 the final preparations are underway for the coronation of King 0:10:56.080 --> 0:10:59.760 Charles the Third and maybe more. As this is Bloomberg, 0:11:12.520 --> 0:11:15.760 this is Bloomberg Daybreak weekend, our global look ahead at 0:11:15.800 --> 0:11:18.679 the top stories for investors in the coming week. I'm 0:11:18.720 --> 0:11:22.120 Amy Morris in Washington. Up later in our program. It's 0:11:22.200 --> 0:11:25.080 not even summer yet, but the November twenty twenty four 0:11:25.240 --> 0:11:29.280 US presidential election is coming right at us, fast and furious. 0:11:29.280 --> 0:11:32.959 But first, in the UK, the final preparations are underway 0:11:33.080 --> 0:11:36.559 for the coronation of King Charles the Third. The event 0:11:36.640 --> 0:11:38.760 will be marked with a church service and an extra 0:11:38.800 --> 0:11:42.000 holiday in the UK, and an expected influx of visitors 0:11:42.040 --> 0:11:44.560 from around the world. For more, let's head to London 0:11:44.600 --> 0:11:47.319 and bring in Bloomberg Daybreak Europe anchor Stephen Carroll. 0:11:47.440 --> 0:11:49.920 Amy. It's been almost eight months since Queen Elizabeth the 0:11:49.960 --> 0:11:52.839 Second passed away and King Charles the Third was elevated 0:11:52.880 --> 0:11:55.600 to the throne. Next weekend, we'll see the formal events 0:11:55.679 --> 0:11:58.840 marking his coronation, an event that hasn't happened in the 0:11:58.920 --> 0:12:02.720 UK in seven years. To discuss what is planned, I'm 0:12:02.760 --> 0:12:05.760 joining Studio Bio UK correspondent Lizzie Burden and by Bloomberg 0:12:05.760 --> 0:12:09.720 Pursuits reporter Sarah Rappaport as well. Welcome to you both. Lizzie, 0:12:09.920 --> 0:12:12.240 can you talk us through exactly what events are planned 0:12:12.240 --> 0:12:13.800 for the coronation, or at least what we know about 0:12:13.800 --> 0:12:14.480 them at this stage. 0:12:14.520 --> 0:12:16.760 So it's expected to be about half the length and 0:12:16.800 --> 0:12:19.920 a quarter of the guest list of the Queen Elizabeth's 0:12:19.960 --> 0:12:22.679 coronation back in nineteen fifty three, so about an hour 0:12:22.679 --> 0:12:25.800 and a half long and two two hundred guests. You're 0:12:25.840 --> 0:12:29.080 going to have the service at Westminster Abbey on May 0:12:29.120 --> 0:12:31.880 the sixth. It'll start about eleven am London time, or 0:12:31.920 --> 0:12:35.440 probably precisely. Knowing these kind of events and at the 0:12:35.480 --> 0:12:39.120 time of recording with you now, the Royal family hasn't 0:12:39.160 --> 0:12:42.360 officially released the order of service, but we do know 0:12:42.400 --> 0:12:45.640 that the day begins with the King's procession from Bookingham 0:12:45.640 --> 0:12:49.880 Palace to Westminster Abbey. You'll likely hear the Archbishop of Canterbury, 0:12:49.960 --> 0:12:52.400 just In well be presenting the new king to the 0:12:52.440 --> 0:12:56.640 people and inviting them to say God Save King Charles. 0:12:57.160 --> 0:13:00.400 Then he'll receive holy communion. He'll be anointed with oil. 0:13:00.600 --> 0:13:03.600 Anyone who watches the crown will know that that's the 0:13:03.640 --> 0:13:06.120 bit that might not be televised because it's holy. It's 0:13:06.160 --> 0:13:09.319 a tradition that can be traced back to the Old Testament. 0:13:09.600 --> 0:13:13.679 It symbolizes the divine blessing of the monarch. And you'll 0:13:13.720 --> 0:13:16.000 be pleased to hear that the oil isn't made anymore 0:13:16.080 --> 0:13:19.800 of whale's stomach lining as it was in nineteen fifty three. 0:13:20.160 --> 0:13:23.440 The new recipe is made of oil's harvested. 0:13:23.760 --> 0:13:24.800 Green for the new king. 0:13:26.040 --> 0:13:29.160 He's under that from the mount of Olives, and they've 0:13:29.200 --> 0:13:33.800 been pressed just outside Bethlehem. They've been perfumed with essential oils. 0:13:33.840 --> 0:13:36.840 Lovely, Okay, Well your painting has the floral picture. 0:13:36.840 --> 0:13:39.200 Well, it's not over yet. Then he's going to be 0:13:39.320 --> 0:13:43.240 invested with his regalia, his crown, his ring, his scepter, 0:13:43.880 --> 0:13:46.880 and then he'll be crowned by the archbishop, rise from 0:13:46.880 --> 0:13:50.160 the coronation chair and sit on the throne. And that's 0:13:50.240 --> 0:13:52.960 usually the point at which the aristocracy would pay homage 0:13:53.000 --> 0:13:56.240 to him. By touching the crown, kissing his hand. But 0:13:56.280 --> 0:13:58.640 that bit again is likely to be slimmed down because 0:13:58.800 --> 0:14:01.440 the number of hereditary pays in the House of Lords, 0:14:01.480 --> 0:14:03.920 of course has been cut. And then you'll have the 0:14:04.040 --> 0:14:07.080 King and the Queen Consort Camilla going back to Bookingham 0:14:07.120 --> 0:14:09.760 Palace in an even bigger procession than they arrived in. 0:14:09.960 --> 0:14:13.199 You'll have thousands of armed forces personnel. And then when 0:14:13.200 --> 0:14:15.839 they get to the palace only the working royals will 0:14:15.840 --> 0:14:18.000 stand on the balcony for the wave. Should we practice 0:14:18.000 --> 0:14:18.400 our wave? 0:14:19.720 --> 0:14:23.200 Okay, So a lot of preparation clearly has gone into this, and. 0:14:23.480 --> 0:14:25.320 Don't forget the Golden State coach. 0:14:25.760 --> 0:14:28.040 Very true, very import something to watch out for. 0:14:28.400 --> 0:14:29.680 Notoriously uncomfortable. 0:14:30.200 --> 0:14:32.480 Right, you haven't been in it, I have. 0:14:32.480 --> 0:14:35.480 To say to Buckingham Palace, Lizzie. 0:14:35.520 --> 0:14:38.600 So some of the details still yet to be publicly announced, 0:14:38.640 --> 0:14:40.680 but we do There has been a lot of discussion 0:14:40.680 --> 0:14:42.760 about who's going to this event. 0:14:42.840 --> 0:14:43.280 What do we know. 0:14:43.400 --> 0:14:46.760 Yeah, we're expecting an array of foreign royals, heads of 0:14:46.800 --> 0:14:50.760 state and politicians and that's actually new because previously the 0:14:50.840 --> 0:14:52.880 ceremony was meant to be between the monarch and their 0:14:52.960 --> 0:14:56.560 people in the presence of God. But King Charles is 0:14:56.560 --> 0:14:59.359 said to be inviting the likes of the Sultan of Brunei, 0:14:59.560 --> 0:15:02.320 the King of Jordan. They're friends of his and it's 0:15:02.320 --> 0:15:06.000 also a gesture of soft power and diplomacy. You're also 0:15:06.120 --> 0:15:10.200 likely to get lots of politicians. Originally we're told it 0:15:10.320 --> 0:15:12.880 was expected to be about twenty MP's and twenty peers, 0:15:12.880 --> 0:15:15.760 but the Telegraph newspapers reporting that those numbers have more 0:15:15.800 --> 0:15:19.120 than doubled now because everybody's been jostling for an invitation, 0:15:19.840 --> 0:15:21.560 and of course all his life the king has been 0:15:21.640 --> 0:15:23.720 very involved with charity work. So there'll be lots of 0:15:23.760 --> 0:15:27.960 representatives of as many causes. But who isn't coming is 0:15:28.080 --> 0:15:30.840 probably going to get as much attention as who is. 0:15:30.920 --> 0:15:31.040 So. 0:15:31.200 --> 0:15:34.080 Joe Biden, the US President, has already confirmed that he's 0:15:34.120 --> 0:15:38.000 sending his wife Jill instead. That's maybe a sign of 0:15:38.120 --> 0:15:41.440 Britain's diminished place in the world since nineteen fifty three. 0:15:42.280 --> 0:15:45.400 The American presidents never go right, I mean, historically they've 0:15:45.400 --> 0:15:48.040 never been to a coronation. I mean, Jill's going, but 0:15:48.440 --> 0:15:51.720 it's not as a snob, it's just well, he's been 0:15:51.760 --> 0:15:55.280 at pain. Look great for American presidents. You're having the 0:15:55.320 --> 0:15:57.920 way American about to actually got a coronation. 0:15:57.600 --> 0:15:59.960 Right, He's been at pains to say that it isn't 0:16:00.080 --> 0:16:03.320 to snow. Yeah, so that's the official line, and I 0:16:03.320 --> 0:16:06.240 shouldn't like to descend into royal tittle tuttle Stephen. But 0:16:06.520 --> 0:16:09.120 even though it's a slimed down version compared to Queen 0:16:09.200 --> 0:16:13.960 Elizabeth's second coronation, you'll still see almost the whole royal 0:16:14.000 --> 0:16:17.160 family except the Duchess of Sussex, indeed. 0:16:17.000 --> 0:16:20.080 Of which much much ink has been spilled. So, Sarah, 0:16:20.160 --> 0:16:23.080 those are some of the invited guests. But there's a 0:16:23.080 --> 0:16:25.560 lot of people who are coming to the UK for 0:16:25.640 --> 0:16:27.600 this event. This is something that you've been writing about. 0:16:27.680 --> 0:16:29.960 Tell us about what the expectations are around tourism. 0:16:30.400 --> 0:16:33.400 Well, a lot of Americans are coming. Funnily enough, there's 0:16:33.400 --> 0:16:36.600 a study saying Americans will be outspending Brits by a 0:16:36.640 --> 0:16:40.080 great deal at London hotels over the long weekend. 0:16:39.720 --> 0:16:42.040 Don't you always yes. 0:16:41.880 --> 0:16:44.000 But in this case there's more so than usual, by 0:16:44.040 --> 0:16:46.720 a good eight percent in the data. So they're going 0:16:46.760 --> 0:16:49.240 to account for thirty two percent of all revenue in 0:16:49.320 --> 0:16:52.240 London hotels over the coronation weekend. Normally we account for 0:16:52.280 --> 0:16:54.680 twenty four, so it's a nice, a nice big jump. Okay, 0:16:54.800 --> 0:16:57.160 you know, Americans don't have a royal family, as we're 0:16:57.200 --> 0:17:00.160 all aware, maybe the Kardashes or the Kennedys, but not 0:17:00.200 --> 0:17:02.800 an official royal family. We're going to come. All the 0:17:02.840 --> 0:17:06.400 hotels are really jumping on the bandwagon. The Dorchester brought 0:17:06.440 --> 0:17:09.040 out their nineteen fifty three decour It looks amazing. If 0:17:09.080 --> 0:17:10.359 you want to go to Park Lane and have a look. 0:17:10.960 --> 0:17:12.920 All the hotels have more tea than you can Chuck 0:17:12.920 --> 0:17:18.800 and Buck in Boston, Harbor King themed cocktails, teas, royal stays. 0:17:19.200 --> 0:17:20.280 So there's real business in this. 0:17:21.200 --> 0:17:24.000 Business, and the hotels are getting booked up. The Goring, 0:17:24.040 --> 0:17:27.000 which famously Cape Middleton State app before she got married, 0:17:27.280 --> 0:17:29.639 is fully booked and that's one of the closest hotels 0:17:29.680 --> 0:17:33.000 to Buckingham Palace. So there's a lot of business in 0:17:33.040 --> 0:17:36.359 there for tourists and it is largely Americans wanting to 0:17:36.400 --> 0:17:39.040 come and splash the cash. With the week pound as well, 0:17:39.080 --> 0:17:40.560 it's easier for them to come and do that. 0:17:40.720 --> 0:17:42.840 Should happy to be my flat too? 0:17:44.640 --> 0:17:47.120 What about then the offerings that have been put on 0:17:47.160 --> 0:17:48.840 for toys. You talk about some of the food and 0:17:48.920 --> 0:17:52.600 drink options. There sarah that that have been laid out 0:17:52.600 --> 0:17:55.359 for the visitors who are coming, But what about activities? 0:17:55.359 --> 0:17:57.280 Are the things that are going on in London that people. 0:17:57.080 --> 0:18:01.360 Can for a very rich visitors. Royal Salute is launching 0:18:01.359 --> 0:18:04.639 a twenty five thousand dollars bottle of whiskey for the 0:18:04.720 --> 0:18:05.880 King Charles, a third edition. 0:18:06.080 --> 0:18:06.359 Wow. 0:18:06.520 --> 0:18:09.560 I actually went to the launch party was at Westminster Abbey, 0:18:09.560 --> 0:18:11.399 so an after hours tour. I got to see the 0:18:11.440 --> 0:18:14.720 place where Charles will be crowned, and out of dinner 0:18:14.760 --> 0:18:17.000 and tried this whiskey. 0:18:17.440 --> 0:18:17.680 Yeah. 0:18:17.720 --> 0:18:19.439 I mean it's print on a cards the listed company, right, 0:18:19.480 --> 0:18:22.720 and they're putting on a King Charles edition. And yeah, 0:18:22.720 --> 0:18:25.080 twenty five thousand dollars. If you don't have that, there's 0:18:25.080 --> 0:18:27.639 plenty of other fun places to get cocktails or drinks 0:18:27.760 --> 0:18:30.400 or do walking tours and get the history right. Because 0:18:30.400 --> 0:18:32.800 the city's not seen a coronation in seventy years. You 0:18:32.840 --> 0:18:34.240 don't have to be a royalist to think it's a 0:18:34.240 --> 0:18:36.800 little bit exciting for a historical event to watch it. 0:18:36.920 --> 0:18:38.639 Yeah, and for many people it's a one cent a 0:18:38.680 --> 0:18:41.200 lifetime chance to be in the city where it's happening. 0:18:41.520 --> 0:18:43.680 Most people wereun around the last time there was one. 0:18:43.800 --> 0:18:47.240 Indeed, like, broadly speaking, is this expects to be a 0:18:47.240 --> 0:18:49.320 big boost for UK tourism. 0:18:49.880 --> 0:18:50.280 It isn't. 0:18:50.320 --> 0:18:53.200 It isn't. UK tourism is actually doing quite well already. 0:18:53.600 --> 0:18:55.280 There's a lot of pent up demand and like I 0:18:55.280 --> 0:18:57.960 said about Americans already here, they're aready spending a lot 0:18:57.960 --> 0:18:58.760 of money. 0:18:58.840 --> 0:19:01.600 And Lizzie, let's let's talk a bit about the the 0:19:01.640 --> 0:19:04.280 backdrop to all of this economically, I mean, could this 0:19:04.359 --> 0:19:06.560 actually be an important boost to the UK economy. 0:19:06.800 --> 0:19:09.840 Well, certain sectors will hopefully get a boost, So UK 0:19:09.960 --> 0:19:13.000 Hospitality reckons that pubs and restaurants will get a three 0:19:13.080 --> 0:19:17.280 hundred and fifty million pound boost to sales. But usually 0:19:17.320 --> 0:19:20.560 on balanced bank quality days actually dent the economy because 0:19:20.760 --> 0:19:23.679 the extra spending on pubs is worth less than the 0:19:23.920 --> 0:19:27.640 reduced output in factories, the productive parts of the economy. 0:19:27.680 --> 0:19:31.159 So last year's Platinum Jubilee bank holiday was estimated to 0:19:31.200 --> 0:19:34.200 have hit the economy by two point four billion pounds. 0:19:34.480 --> 0:19:37.399 But it's really really hard to calculate this stuff, and 0:19:37.440 --> 0:19:40.160 often you get a bounce back the following month, so 0:19:40.560 --> 0:19:43.560 you see people catching upon the work they otherwise would 0:19:43.560 --> 0:19:45.920 have done, so you could say that economic activity is 0:19:46.000 --> 0:19:49.880 just displaced and not totally lost. And the good news 0:19:49.920 --> 0:19:52.880 really is that it's not expected to tip us into recession. 0:19:53.040 --> 0:19:53.919 Yes, so Drinker. 0:19:54.040 --> 0:19:56.919 Indeed, thank you to Bloomberg Pursuits reporter Sayah Rappaport and 0:19:56.960 --> 0:19:59.960 to our UK correspondent Lizzie Burden. I'm Stephen carolln London. 0:20:00.040 --> 0:20:02.240 You can catch us every weekday morning here for Bloomberg 0:20:02.320 --> 0:20:04.840 Daybreak Europe, beginning at six am in London and one 0:20:04.880 --> 0:20:05.960 am on Wall Street. 0:20:06.200 --> 0:20:09.560 Amy, Thank you, Steven, and coming up on Bloomberg day Break. Weekend, 0:20:09.800 --> 0:20:12.439 we returned to Washington as the battle lines for the 0:20:12.440 --> 0:20:16.399 twenty twenty four US presidential election are becoming clear. I M. 0:20:16.400 --> 0:20:18.760 Amy Morris. This is Bloomberg. 0:20:27.960 --> 0:20:31.760