1 00:00:02,240 --> 00:00:05,120 Speaker 1: This is Bloomberg Daybreak Weekend, our global look at the 2 00:00:05,200 --> 00:00:07,440 Speaker 1: top stories in the coming week from our Daybreak anchors 3 00:00:07,520 --> 00:00:09,479 Speaker 1: all around the world. And just to hand on the 4 00:00:09,520 --> 00:00:12,520 Speaker 1: program with all the layoffs, how much is the job 5 00:00:12,560 --> 00:00:16,000 Speaker 1: market really weakening? I'm John Tucker in New York. I'm 6 00:00:16,000 --> 00:00:18,320 Speaker 1: Stephen carl in London, where the shops and restaurants are 7 00:00:18,320 --> 00:00:20,680 Speaker 1: full of festive chair but the wider picture for the 8 00:00:20,720 --> 00:00:24,200 Speaker 1: consumer sector is looking what's gloomier. I'm Duck Chrissener. We'll 9 00:00:24,200 --> 00:00:27,680 Speaker 1: look at the many challenges facing the Chinese consumer. I'm 10 00:00:27,680 --> 00:00:30,400 Speaker 1: Amy Morris in Washington, will look at the career and 11 00:00:30,560 --> 00:00:36,479 Speaker 1: legacy aboutgoing House speaker Nancy Pelosi. That's all straight ahead 12 00:00:36,520 --> 00:00:40,480 Speaker 1: on Bloomberg Daybreak Weekend on Bloomberg eleven three, on New York, 13 00:00:40,640 --> 00:00:45,240 Speaker 1: Bloomberg one, Washington d C, Bloomberg one oh six one, Boston, 14 00:00:45,360 --> 00:00:49,680 Speaker 1: Bloomberg nine sixties, San Francisco d A B, Digital Radio, London, 15 00:00:49,880 --> 00:00:53,360 Speaker 1: Sirius XM one nineteen and around the world on Bloomberg 16 00:00:53,440 --> 00:00:58,800 Speaker 1: Radio dot com and via the Bloomberg Business at Hi, Everybody, 17 00:00:58,800 --> 00:01:01,440 Speaker 1: I'm John Tucker. An let'st today's program with a look 18 00:01:01,440 --> 00:01:03,600 Speaker 1: at the jobs market. Joining us now to talk about 19 00:01:03,600 --> 00:01:08,640 Speaker 1: at Bloomberg Global Economics and Policy editor Michael McKee. You know, 20 00:01:08,680 --> 00:01:10,920 Speaker 1: we've had tens of thousands of job cuts in the 21 00:01:10,959 --> 00:01:14,160 Speaker 1: past few weeks, a lot of them in technology. What 22 00:01:14,600 --> 00:01:17,679 Speaker 1: are we expecting to see in this week's jobs report? 23 00:01:17,720 --> 00:01:19,480 Speaker 1: Any of the is gonna show up in this report. 24 00:01:19,760 --> 00:01:22,720 Speaker 1: We're not expecting it. Uh. We may see some declines 25 00:01:22,720 --> 00:01:26,160 Speaker 1: in tech employment, but it appears most people are finding 26 00:01:26,160 --> 00:01:28,560 Speaker 1: new jobs fairly quickly, at least according to the jobless 27 00:01:28,560 --> 00:01:33,520 Speaker 1: claims numbers, and so tech is a very small part 28 00:01:33,560 --> 00:01:38,120 Speaker 1: of the overall labor market. There are hundred forty six 29 00:01:38,200 --> 00:01:41,480 Speaker 1: million jobs in America, and so tens of thousands is 30 00:01:41,520 --> 00:01:44,760 Speaker 1: still a very small percentage. Is the employment report? The 31 00:01:44,840 --> 00:01:49,600 Speaker 1: jobs reports still the mother of all economic reports? Well, 32 00:01:49,680 --> 00:01:51,960 Speaker 1: it may be the mother of all economic reports. The 33 00:01:52,000 --> 00:01:54,680 Speaker 1: c p I s maybe the mother in law of 34 00:01:55,200 --> 00:01:58,040 Speaker 1: all economic reports because the FED is kind of focused 35 00:01:58,120 --> 00:02:02,640 Speaker 1: more on prices these days. But the Jobs report is 36 00:02:02,640 --> 00:02:05,000 Speaker 1: always going to be there because it's a sign of 37 00:02:05,040 --> 00:02:07,720 Speaker 1: the strength of the economy. And we're moving into a 38 00:02:07,760 --> 00:02:11,760 Speaker 1: period now where we've had the FED focused on how 39 00:02:11,880 --> 00:02:14,640 Speaker 1: fast it was going to move and how high it 40 00:02:14,760 --> 00:02:17,680 Speaker 1: was going to move. And now the question that seems 41 00:02:17,680 --> 00:02:19,840 Speaker 1: to be developing in the markets is, Okay, if we 42 00:02:19,960 --> 00:02:22,720 Speaker 1: buy your idea that you go to five cent and 43 00:02:22,800 --> 00:02:26,040 Speaker 1: you do it more gradually, when you're gonna start cutting, 44 00:02:26,400 --> 00:02:29,640 Speaker 1: and that will depend on the economy. If the jobless 45 00:02:29,720 --> 00:02:32,840 Speaker 1: rate starts to rise significantly, then the Fed is going 46 00:02:32,880 --> 00:02:36,239 Speaker 1: to have to think about it. They insist they'll live 47 00:02:36,320 --> 00:02:38,959 Speaker 1: with a higher jobless rate, but if it goes too far, 48 00:02:39,520 --> 00:02:43,880 Speaker 1: then they might start thinking about a rate reduction. So 49 00:02:44,080 --> 00:02:46,120 Speaker 1: that's gonna be the way the debate plays out in 50 00:02:47,560 --> 00:02:50,600 Speaker 1: how tight is the labor market right now? Well, by 51 00:02:50,600 --> 00:02:54,519 Speaker 1: all standard indicators, it's very tight. Still, the number of 52 00:02:54,600 --> 00:02:59,079 Speaker 1: job openings is still very high, and the unemployment rate 53 00:02:59,160 --> 00:03:03,480 Speaker 1: is still very low. The participation rate is not going 54 00:03:03,600 --> 00:03:07,360 Speaker 1: up significantly, so there aren't enough workers to fill all 55 00:03:07,400 --> 00:03:09,880 Speaker 1: the jobs. Is when it comes down to now, you 56 00:03:09,919 --> 00:03:12,399 Speaker 1: may have a labor mismatch where the people who are 57 00:03:12,440 --> 00:03:16,360 Speaker 1: available to work don't have the skills necessary for the 58 00:03:16,440 --> 00:03:19,080 Speaker 1: jobs that are open. That's hard to prove, but it 59 00:03:19,240 --> 00:03:21,560 Speaker 1: is a theory for part of why we see such 60 00:03:21,600 --> 00:03:26,200 Speaker 1: a high rate of job openings. But the other situation 61 00:03:26,320 --> 00:03:29,520 Speaker 1: is this is totally unusual because everybody lost their job 62 00:03:29,560 --> 00:03:31,040 Speaker 1: at once, and then a lot of people decided to 63 00:03:31,040 --> 00:03:33,400 Speaker 1: not to come back into the labor force and to 64 00:03:34,040 --> 00:03:36,480 Speaker 1: perhaps retire. So there are a lot of jobs going 65 00:03:36,600 --> 00:03:39,440 Speaker 1: unfilled that may never be filled. It probably is the 66 00:03:39,520 --> 00:03:42,360 Speaker 1: FED and economists don't really know how that's going to 67 00:03:42,400 --> 00:03:44,600 Speaker 1: play out. Okay, So if I'm a business owner and 68 00:03:44,680 --> 00:03:47,360 Speaker 1: I need a worker and I can't find anybody out there, 69 00:03:47,440 --> 00:03:50,240 Speaker 1: I'm going to offer more and more pay and maybe 70 00:03:50,280 --> 00:03:53,160 Speaker 1: pay the workers that I do have to keep them, 71 00:03:53,160 --> 00:03:56,160 Speaker 1: going to pay them more, and that's going to feed 72 00:03:56,160 --> 00:03:58,960 Speaker 1: into inflation because then I have to raise my end 73 00:03:59,000 --> 00:04:01,880 Speaker 1: prices that I try to consumers. Does that make sense? 74 00:04:02,040 --> 00:04:05,040 Speaker 1: That makes sense, and it it's what's been happening, particularly 75 00:04:05,080 --> 00:04:07,600 Speaker 1: on the service industry side. We saw it happen in 76 00:04:07,600 --> 00:04:13,160 Speaker 1: manufacturing that's weakened some Now that demand has weakened for goods, 77 00:04:13,240 --> 00:04:16,760 Speaker 1: people spending more on services, and services industries were the 78 00:04:16,839 --> 00:04:19,960 Speaker 1: last to recoup some of the workers that they lost, 79 00:04:20,160 --> 00:04:24,880 Speaker 1: particularly things like restaurants and bars and many retail stores. 80 00:04:25,160 --> 00:04:28,040 Speaker 1: So they have had to raise their pay rates and 81 00:04:28,080 --> 00:04:30,599 Speaker 1: they have had to raise prices to pay for it. 82 00:04:30,640 --> 00:04:33,080 Speaker 1: The question is how many more workers are they going 83 00:04:33,120 --> 00:04:36,599 Speaker 1: to be hiring and then uh those many of those jobs, 84 00:04:36,640 --> 00:04:40,680 Speaker 1: particularly in restaurants and bars, are transitory. People don't stay 85 00:04:40,680 --> 00:04:44,760 Speaker 1: in them very long. They're taking them as a springboard 86 00:04:44,760 --> 00:04:49,040 Speaker 1: to something else, or they're uh going to be looking 87 00:04:49,080 --> 00:04:52,200 Speaker 1: for something else because the job itself is very hard. 88 00:04:52,880 --> 00:04:56,960 Speaker 1: So once you get back to a rough ability to 89 00:04:57,000 --> 00:04:59,920 Speaker 1: serve your customers, do you then need to keep raising 90 00:05:00,080 --> 00:05:04,640 Speaker 1: rates or do you need can you say, well, maybe 91 00:05:05,000 --> 00:05:07,440 Speaker 1: that's it, I'm done, or I'm not going to pay 92 00:05:07,440 --> 00:05:10,039 Speaker 1: as much to the next round of people because now 93 00:05:10,080 --> 00:05:12,760 Speaker 1: I'm backstaffed where I need to be. What's the lag 94 00:05:12,839 --> 00:05:16,680 Speaker 1: time between enacting policy by the Federal Reserve and the 95 00:05:16,720 --> 00:05:19,920 Speaker 1: time it shows up in something like the labor market? Traditionally, 96 00:05:20,320 --> 00:05:23,200 Speaker 1: as Milton Friedman put in, it's long and variable legs 97 00:05:23,680 --> 00:05:29,120 Speaker 1: with no with no timing on it. Estimates by researchers 98 00:05:29,160 --> 00:05:32,960 Speaker 1: have suggested somewhere between twelve and eighteen months, although it 99 00:05:33,120 --> 00:05:36,520 Speaker 1: is kind of accepted wisdom now and certainly at the FED, 100 00:05:36,839 --> 00:05:39,240 Speaker 1: that it's faster than that now because we have so 101 00:05:39,279 --> 00:05:43,200 Speaker 1: many transmission channels that are so quick. You have instantaneous 102 00:05:43,279 --> 00:05:46,200 Speaker 1: payments for things, and you can One of the examples 103 00:05:46,200 --> 00:05:49,200 Speaker 1: always used was restaurants were slow to change prices because 104 00:05:49,200 --> 00:05:51,120 Speaker 1: then they would have to reprint all their menus. But 105 00:05:51,160 --> 00:05:54,080 Speaker 1: now you're just doing it as a PDF that people 106 00:05:54,120 --> 00:05:56,600 Speaker 1: are scanning their phones on, so you can raise prices 107 00:05:56,680 --> 00:06:00,520 Speaker 1: very quickly, so you can see much quicker move into 108 00:06:00,560 --> 00:06:03,760 Speaker 1: the economy. But nevertheless, the feeling is we're only six 109 00:06:03,800 --> 00:06:06,880 Speaker 1: months into this. Seems like forever, but only six months 110 00:06:06,920 --> 00:06:11,400 Speaker 1: into this, and that we may start to see some 111 00:06:11,480 --> 00:06:14,719 Speaker 1: of it really start to hit coming fairly soon. The 112 00:06:15,080 --> 00:06:18,320 Speaker 1: Photo Reserve chairman Jerome pal is going to also speak 113 00:06:18,400 --> 00:06:21,080 Speaker 1: in some format this coming week. What's he expected to 114 00:06:21,120 --> 00:06:23,000 Speaker 1: say will be a check the box kind of thing. 115 00:06:23,000 --> 00:06:26,039 Speaker 1: They'll ask him, we presume how high are you going 116 00:06:26,120 --> 00:06:29,120 Speaker 1: to raise it at this meeting? And the betting is 117 00:06:29,160 --> 00:06:32,200 Speaker 1: he's going to push people to fifty basis points half 118 00:06:32,200 --> 00:06:34,520 Speaker 1: a presentage point, and then how high do you think 119 00:06:34,600 --> 00:06:37,080 Speaker 1: we need to go? And the consensus of the FED 120 00:06:37,160 --> 00:06:40,279 Speaker 1: speakers over the last couple of weeks has been around 121 00:06:40,360 --> 00:06:44,279 Speaker 1: five percent Summer four, seventy five, summer five, somewhere in 122 00:06:44,320 --> 00:06:47,400 Speaker 1: that range. Then the question is how long are you 123 00:06:47,400 --> 00:06:49,280 Speaker 1: going to keep it there? And what are you going 124 00:06:49,320 --> 00:06:51,800 Speaker 1: to look for? And that's what Wall Street wants to 125 00:06:51,839 --> 00:06:54,960 Speaker 1: know Mike as always a pleasure. Michael McKee And just 126 00:06:55,040 --> 00:06:58,760 Speaker 1: to hit on Bloomberg Daybreak weekend, waning consumer confidence in 127 00:06:58,800 --> 00:07:06,840 Speaker 1: the UK. I'm John Tucker and this is Bloomberg. This 128 00:07:07,240 --> 00:07:09,800 Speaker 1: is Bloomberg Daybreak weekend. Are glob to look ahead at 129 00:07:09,840 --> 00:07:11,960 Speaker 1: the top stories for investors in the coming week. I'm 130 00:07:12,040 --> 00:07:14,480 Speaker 1: John Tucker in New York. Up later in the program 131 00:07:14,520 --> 00:07:18,920 Speaker 1: consumers and the economy in China, But first, the UK 132 00:07:19,120 --> 00:07:22,040 Speaker 1: headed toured the holiday season with a recession looming and 133 00:07:22,120 --> 00:07:25,840 Speaker 1: consumer competence lower than it was during the financial crisis. 134 00:07:26,320 --> 00:07:29,160 Speaker 1: Consumers spending is held up so far, but how long's 135 00:07:29,200 --> 00:07:31,480 Speaker 1: that gonna last? For more? Let's hit to London and 136 00:07:31,520 --> 00:07:36,080 Speaker 1: bringing Bloomberg Daybreak europancher Stephen Carol, John Nathan. The lights 137 00:07:36,080 --> 00:07:38,440 Speaker 1: and decorations are up in London and it's as hard 138 00:07:38,480 --> 00:07:40,640 Speaker 1: as ever to get a restaurant booking here. But the 139 00:07:40,800 --> 00:07:43,520 Speaker 1: visible cheer from some is coming at a time as 140 00:07:43,760 --> 00:07:47,800 Speaker 1: deep economic gloom. Overall inflation is at forty year high 141 00:07:47,800 --> 00:07:50,120 Speaker 1: in the UK. We've got rising interest rates at a 142 00:07:50,200 --> 00:07:53,000 Speaker 1: crippling jump in rents and mortgage costs for many. So 143 00:07:53,040 --> 00:07:57,000 Speaker 1: how resilient are Britain's consumers looking in this crucial end 144 00:07:57,040 --> 00:07:59,800 Speaker 1: of year shopping period. Let's bring in our opinion economist 145 00:07:59,840 --> 00:08:03,320 Speaker 1: and afl Stad and Are Bloomberg, Pursuits Reporters, Serrapaport as 146 00:08:03,320 --> 00:08:06,960 Speaker 1: well Andrea. The last retail sales figures showed a little 147 00:08:07,000 --> 00:08:10,400 Speaker 1: bit of growth in October. Consumer confidence surveys still very 148 00:08:10,480 --> 00:08:12,600 Speaker 1: much on the duldrum. What is the picture going to 149 00:08:12,640 --> 00:08:14,840 Speaker 1: be like going into this really important period of the 150 00:08:14,880 --> 00:08:19,040 Speaker 1: year for consumers. Well, the most remarkable thing is despite 151 00:08:19,160 --> 00:08:22,119 Speaker 1: all the doom and gloom and the cost of living 152 00:08:22,200 --> 00:08:25,800 Speaker 1: crisis and all the issues that are consumers are facing, 153 00:08:26,200 --> 00:08:30,600 Speaker 1: they are being remarkably resilient. We've seen a little bit 154 00:08:30,640 --> 00:08:34,960 Speaker 1: of distress. We had made dot com and jewels collapse, 155 00:08:35,240 --> 00:08:39,520 Speaker 1: but aside from that, there is very little distress. The 156 00:08:39,559 --> 00:08:44,240 Speaker 1: most remarkable thing is that nothing's really happened yet. Oh 157 00:08:44,360 --> 00:08:47,120 Speaker 1: yet is the key word, And that we we had 158 00:08:47,200 --> 00:08:49,080 Speaker 1: updates and the likes of you know, high Street Staples here, 159 00:08:49,120 --> 00:08:51,280 Speaker 1: Marks and Spencer's next people like that. What did we 160 00:08:51,360 --> 00:08:54,400 Speaker 1: learn from from their results? We learned that things were 161 00:08:54,440 --> 00:08:59,520 Speaker 1: taking along. Okay, I think this Christmas will be fine. 162 00:09:00,120 --> 00:09:03,440 Speaker 1: I think this will be the last hurrah The important 163 00:09:03,480 --> 00:09:06,480 Speaker 1: thing is that this is the first year for three 164 00:09:06,920 --> 00:09:10,680 Speaker 1: that it will be a relatively normal Christmas. People will 165 00:09:10,720 --> 00:09:13,840 Speaker 1: be out visiting friends of family. When they do so, 166 00:09:14,040 --> 00:09:19,200 Speaker 1: they tend to buy gifts for them. The hospitality industry 167 00:09:19,400 --> 00:09:24,640 Speaker 1: is seeing bookings return, particularly things like office Christmas parties, 168 00:09:25,000 --> 00:09:28,120 Speaker 1: office nights out that really haven't happened for the last 169 00:09:28,240 --> 00:09:32,240 Speaker 1: two years. So I think this Christmas will be fine. 170 00:09:32,880 --> 00:09:37,280 Speaker 1: What we them face is a very nasty hangover in 171 00:09:37,320 --> 00:09:39,720 Speaker 1: the new year, so it could be the next set 172 00:09:39,720 --> 00:09:41,880 Speaker 1: of results before we get that clearer picture of us 173 00:09:42,000 --> 00:09:46,559 Speaker 1: and Sarah some consumers feeling very resilient. Indeed, and you've 174 00:09:46,600 --> 00:09:50,000 Speaker 1: been writing about luxury spas for Bloomberg Pursuits. First of all, 175 00:09:50,000 --> 00:09:51,880 Speaker 1: what did you find out? And secondly, how what's the 176 00:09:51,920 --> 00:09:54,920 Speaker 1: demand looking like for for services like that? Well, like 177 00:09:54,960 --> 00:09:57,600 Speaker 1: andreas Son, you know, luxury is doing great. Luxury is 178 00:09:57,640 --> 00:10:00,560 Speaker 1: doing absolutely fine. People who have money to spend our 179 00:10:00,640 --> 00:10:03,560 Speaker 1: spending it because, like she said, over the past three years, 180 00:10:03,559 --> 00:10:05,840 Speaker 1: you couldn't you couldn't book a five star hotel at 181 00:10:05,880 --> 00:10:09,000 Speaker 1: Christmas to travel from the US without tests or you know, 182 00:10:09,080 --> 00:10:11,960 Speaker 1: vaccines or anything. Now you can in the exchange rate 183 00:10:12,000 --> 00:10:14,160 Speaker 1: is great for Americans and they're coming over here and 184 00:10:14,200 --> 00:10:17,680 Speaker 1: they're spending and what I found in the luxury spot industry. 185 00:10:17,760 --> 00:10:19,480 Speaker 1: So there's a bit of an arms race right now 186 00:10:19,520 --> 00:10:23,120 Speaker 1: within the top hotels, the Bulgari, Spa, Clarridges, the Corinthia 187 00:10:23,559 --> 00:10:25,760 Speaker 1: Claria just just had a huge revamp. Now there's a 188 00:10:25,760 --> 00:10:27,960 Speaker 1: pool when they've read it blows a pool. Now you 189 00:10:28,000 --> 00:10:30,760 Speaker 1: can also get the full celebrity experience with the six 190 00:10:31,160 --> 00:10:34,360 Speaker 1: pound manicure by a celebrity manicurist. Um. I have not 191 00:10:34,440 --> 00:10:39,360 Speaker 1: sampled it, but there's all kinds of really competitive offers 192 00:10:39,400 --> 00:10:42,319 Speaker 1: trying to get the whole v I P experience for 193 00:10:42,360 --> 00:10:45,000 Speaker 1: the one person consumer that they're looking for. Okay, I 194 00:10:45,000 --> 00:10:46,880 Speaker 1: mean there's a good question as to whether or not 195 00:10:46,920 --> 00:10:49,080 Speaker 1: you might have the best job about Bloomberg, Sarah. I 196 00:10:49,120 --> 00:10:51,240 Speaker 1: think I do. I think I think competing with you 197 00:10:51,280 --> 00:10:53,360 Speaker 1: will be our colleague Manus Cranny, who was speaking to 198 00:10:53,360 --> 00:10:56,560 Speaker 1: the CEO of Mode Hennessey Phillips Go and talking about 199 00:10:56,600 --> 00:10:59,120 Speaker 1: the demand that they're seeing for Champagne. Let's take a 200 00:10:59,120 --> 00:11:02,480 Speaker 1: listen in we talked about the roaring twenties in the 201 00:11:02,640 --> 00:11:06,720 Speaker 1: twenty two will be fabulous here for Champagne without giving 202 00:11:06,760 --> 00:11:09,840 Speaker 1: any numbers. We are running all of stock on on 203 00:11:10,000 --> 00:11:14,000 Speaker 1: most of our best trimpains. So I think as people 204 00:11:14,000 --> 00:11:17,160 Speaker 1: have been coming out of COVID, it's been just spent 205 00:11:17,400 --> 00:11:22,520 Speaker 1: up demand for luxury, enjoyment, traveling and all that running 206 00:11:23,080 --> 00:11:26,200 Speaker 1: of stock. How close to the end of the champagne 207 00:11:26,240 --> 00:11:29,480 Speaker 1: stock are we? Well this every year you stop coming fortunately, 208 00:11:29,840 --> 00:11:32,240 Speaker 1: so there will be more to come for next year. 209 00:11:32,400 --> 00:11:35,600 Speaker 1: And that's the SEEO of Mode. Tannessey speaking to Manus Cranny. So, Sarah, 210 00:11:35,640 --> 00:11:38,480 Speaker 1: we've been talking about this boom then in the hospitality sector. 211 00:11:38,640 --> 00:11:41,040 Speaker 1: So we're still, as Andre was telling us, you know, 212 00:11:41,240 --> 00:11:45,200 Speaker 1: still seeing reasonable amount of resilience and consumers when they're 213 00:11:45,240 --> 00:11:48,760 Speaker 1: spending on things, what about what they're spending on going out. Well, 214 00:11:48,760 --> 00:11:51,160 Speaker 1: there might be a nasty hangover in January, as there 215 00:11:51,160 --> 00:11:53,760 Speaker 1: always is, but for now London is fully booked. It's 216 00:11:53,880 --> 00:11:56,080 Speaker 1: very hard to get a table at a top restaurant 217 00:11:56,200 --> 00:11:59,320 Speaker 1: right now. The bars are packed, the West End is packed, 218 00:11:59,520 --> 00:12:02,319 Speaker 1: theater eater is booming. They need this Christmas season to 219 00:12:02,360 --> 00:12:04,840 Speaker 1: be a success. And I'll say there are problems, like 220 00:12:05,000 --> 00:12:07,480 Speaker 1: their gas bills are are very high and they didn't 221 00:12:07,520 --> 00:12:11,080 Speaker 1: have the previous seasons. But right now business is booming 222 00:12:11,080 --> 00:12:13,400 Speaker 1: in the West End in hospitality. People are coming over 223 00:12:13,480 --> 00:12:16,000 Speaker 1: and and they're spending, and of course it's a chance 224 00:12:16,040 --> 00:12:18,559 Speaker 1: for many people to have a blowout after a few 225 00:12:18,559 --> 00:12:22,240 Speaker 1: difficult years. There's that sort of yolo mentality after like 226 00:12:22,360 --> 00:12:24,840 Speaker 1: the lockdown and code. People want to have a big Christmas. 227 00:12:24,840 --> 00:12:26,800 Speaker 1: They want to see their friends and family, they want 228 00:12:26,840 --> 00:12:29,319 Speaker 1: to get back to normality. And even though things are 229 00:12:29,320 --> 00:12:32,000 Speaker 1: more expensive than they were in people are putting it 230 00:12:32,040 --> 00:12:34,760 Speaker 1: on credit cards or they're deciding, you know what, for me, 231 00:12:34,840 --> 00:12:36,400 Speaker 1: this is worth worth it. This year. They're going to 232 00:12:36,480 --> 00:12:38,520 Speaker 1: go out and they'll they'll spend. So yeah, it's going 233 00:12:38,559 --> 00:12:40,960 Speaker 1: to be a big Christmas for hospitality in London. You're 234 00:12:40,960 --> 00:12:43,559 Speaker 1: making me excited about the coming weeks, although I'm quite 235 00:12:43,559 --> 00:12:45,679 Speaker 1: worried about where I'm gonna go for dinner anyway, Andrea, 236 00:12:45,760 --> 00:12:48,480 Speaker 1: let's talk about the consumer luxury sector, which is I 237 00:12:48,520 --> 00:12:52,160 Speaker 1: suppose in that space of the Champagne and the high 238 00:12:52,240 --> 00:12:54,160 Speaker 1: end spas that Sarah was telling us about, what does 239 00:12:54,160 --> 00:12:57,120 Speaker 1: the picture look like, They're it's very similar. What we're 240 00:12:57,160 --> 00:12:59,839 Speaker 1: seeing in luxury is we're seeing the very top end 241 00:13:00,040 --> 00:13:05,160 Speaker 1: to continue to spend on her Mayor's Hamburgs our Hamburgs. 242 00:13:05,200 --> 00:13:07,800 Speaker 1: What we're just starting to see this is more in 243 00:13:07,840 --> 00:13:11,560 Speaker 1: the US than in Europe. Yet, is that that more 244 00:13:11,720 --> 00:13:16,680 Speaker 1: marginal luxury consumer, the consumer that perhaps spent stimulus checks 245 00:13:16,760 --> 00:13:20,400 Speaker 1: on a new Hamburg or a new pair of sneakers 246 00:13:20,440 --> 00:13:26,679 Speaker 1: in one they haven't been so exuberant this year and 247 00:13:26,760 --> 00:13:29,320 Speaker 1: they are just starting to rain in their spending. So 248 00:13:29,400 --> 00:13:32,000 Speaker 1: I would say that is a bit of a warning 249 00:13:32,080 --> 00:13:35,800 Speaker 1: sign for the luxury industry as we go into next year. 250 00:13:36,080 --> 00:13:39,000 Speaker 1: What about this idea of you know, the cheap pound 251 00:13:39,080 --> 00:13:41,640 Speaker 1: has been a big advantage for people who are traveling, 252 00:13:41,679 --> 00:13:44,520 Speaker 1: particularly from the US into the UK and looking to 253 00:13:44,559 --> 00:13:47,760 Speaker 1: go shopping. Is that playing out in the boost for 254 00:13:48,000 --> 00:13:51,720 Speaker 1: UK luxury brands. It's more playing out in Europe because 255 00:13:51,920 --> 00:13:55,240 Speaker 1: they still have the tax free benefit that we no 256 00:13:55,360 --> 00:13:59,480 Speaker 1: longer have in London, and brands have been saying Burbery 257 00:13:59,520 --> 00:14:02,400 Speaker 1: said la this week that they are not seeing so 258 00:14:02,559 --> 00:14:05,880 Speaker 1: many tourists coming to London. They're going to Paris or 259 00:14:05,920 --> 00:14:10,040 Speaker 1: milamb because of that, you know, not having that tax breaks. 260 00:14:10,080 --> 00:14:13,800 Speaker 1: So the the luxury industry, the Bridge luxury industry is 261 00:14:13,960 --> 00:14:17,080 Speaker 1: lobbying to try and find a way forward so that 262 00:14:17,120 --> 00:14:21,920 Speaker 1: they can encourage more overseas tourists to come to the 263 00:14:22,040 --> 00:14:25,040 Speaker 1: UK and get that benefit, of course, because I mean 264 00:14:25,080 --> 00:14:28,400 Speaker 1: we've been reporting and various parts of Bloomberg about the 265 00:14:28,760 --> 00:14:31,000 Speaker 1: all of the things that Americans are able to buy 266 00:14:31,080 --> 00:14:33,760 Speaker 1: more easily, property being one of them in the UK 267 00:14:33,960 --> 00:14:37,480 Speaker 1: as well. Cominian columnist Andrea Felstead and our Pursuits reporter 268 00:14:37,560 --> 00:14:40,160 Speaker 1: Sara Appaport. Thank you so much to both of you 269 00:14:40,240 --> 00:14:42,920 Speaker 1: for your insights. I'm Stephen, Caroline, London. You can catch 270 00:14:43,040 --> 00:14:45,800 Speaker 1: us every weekday morning here for Bloomberg Daybreak Europe, beginning 271 00:14:45,800 --> 00:14:48,480 Speaker 1: at six am in London and one am on wall Streece. 272 00:14:48,640 --> 00:14:51,280 Speaker 1: John Nathan Stephen, thanks a lot. Here just to hit 273 00:14:51,320 --> 00:14:55,680 Speaker 1: on Bloomberg Daybreak, weekend consumers spending in China. I'm John Tucker. 274 00:14:55,800 --> 00:15:13,800 Speaker 1: This is Bloomberg broadcasting live from the Bloomberg Interactive Broker 275 00:15:13,920 --> 00:15:17,320 Speaker 1: Studio in New York. Bloomberg Even three oh to Washington, 276 00:15:17,400 --> 00:15:21,440 Speaker 1: d C, Bloomberg to Boston, Bloomberg one O six one 277 00:15:21,640 --> 00:15:25,760 Speaker 1: to San Francisco, Bloomberg to the Country, Sirius XM Cho 278 00:15:25,840 --> 00:15:29,120 Speaker 1: one nine to London d A B Digital Radio, and 279 00:15:29,160 --> 00:15:32,520 Speaker 1: around the globe. The Bloomberg Business Act and Bloomberg Radio 280 00:15:32,600 --> 00:15:42,480 Speaker 1: dot Com. This is Bloomberg day Break Weekend. I'm John 281 00:15:42,520 --> 00:15:44,560 Speaker 1: Tucker in New York with your global look ahead of 282 00:15:44,600 --> 00:15:47,280 Speaker 1: the top stories for investors in the coming week. Holiday 283 00:15:47,280 --> 00:15:49,720 Speaker 1: spending is in the spotlight this week as we head 284 00:15:49,720 --> 00:15:54,400 Speaker 1: into the winter holiday season. Spending also in focus in China, Amoral. 285 00:15:54,480 --> 00:15:57,520 Speaker 1: Let's go to Bloomberg day Break Asia host Doug Chrisner. 286 00:15:57,840 --> 00:16:00,400 Speaker 1: John with a holiday season now underway in the US, 287 00:16:00,480 --> 00:16:03,800 Speaker 1: the focus for markets is on the strength of the consumer. 288 00:16:03,840 --> 00:16:07,280 Speaker 1: We have seen exceptional resilience so far in spite of 289 00:16:07,280 --> 00:16:12,160 Speaker 1: stubbornly high inflation, although given uncertainty around the outlook, the 290 00:16:12,280 --> 00:16:15,640 Speaker 1: risk is overcautious buying now. It was interesting that the 291 00:16:15,680 --> 00:16:19,080 Speaker 1: South China Morning Post has already reported on a decline 292 00:16:19,200 --> 00:16:22,920 Speaker 1: in Chinese exports to the U S. What does that 293 00:16:22,960 --> 00:16:26,920 Speaker 1: speak to Meantime in China, domestic consumer spending has already 294 00:16:26,920 --> 00:16:31,000 Speaker 1: been slowing. The primary factor, obviously has been beijing strict 295 00:16:31,240 --> 00:16:33,720 Speaker 1: zero COVID policy. We want to take a closer look 296 00:16:33,760 --> 00:16:36,720 Speaker 1: now at the outlook for Chinese consumers as we approached 297 00:16:36,720 --> 00:16:38,240 Speaker 1: the end of the year, and we are joined by 298 00:16:38,360 --> 00:16:42,680 Speaker 1: end to Current Bloomberg's Chief Asia Economics correspondent, and thank 299 00:16:42,680 --> 00:16:45,480 Speaker 1: you for joining us. One of the things that struck 300 00:16:45,520 --> 00:16:48,400 Speaker 1: me was the retail sales data for the month of 301 00:16:48,400 --> 00:16:52,000 Speaker 1: October negative seven tenths of one percent, which was really 302 00:16:52,680 --> 00:16:54,560 Speaker 1: much weaker than the market was looking for. I think 303 00:16:54,600 --> 00:16:57,320 Speaker 1: the forecast was for a gain of one point two 304 00:16:58,080 --> 00:17:00,680 Speaker 1: What is happening underneath the hood here in the Chinese 305 00:17:00,720 --> 00:17:03,800 Speaker 1: economy where the consumer is concerned. It's a pretty downbeat 306 00:17:03,880 --> 00:17:06,679 Speaker 1: story for the Chinese consumer. Two things are going on 307 00:17:06,720 --> 00:17:09,880 Speaker 1: in China. On the one side, China is going through 308 00:17:09,920 --> 00:17:13,679 Speaker 1: a big real estate slump. House prices continue to fall 309 00:17:14,119 --> 00:17:17,200 Speaker 1: and demand for new homes continues to weaken. That's obviously 310 00:17:17,240 --> 00:17:21,720 Speaker 1: eroding everybody's net worth and sense of you know, upbeat 311 00:17:22,119 --> 00:17:24,000 Speaker 1: or or well being, so to speak. So that's one 312 00:17:24,000 --> 00:17:26,080 Speaker 1: side of what's going on. The other side of what's 313 00:17:26,119 --> 00:17:29,040 Speaker 1: going on, which we all know, is the very aggressive 314 00:17:29,080 --> 00:17:33,320 Speaker 1: measures to contain COVID which continue to roll around the 315 00:17:33,400 --> 00:17:37,240 Speaker 1: country in either the form of restrictions or mass testing 316 00:17:37,680 --> 00:17:39,720 Speaker 1: or maybe even in some cases of broader lockdown. So 317 00:17:39,760 --> 00:17:41,960 Speaker 1: all of that combined is really weighing on the consumer. 318 00:17:42,000 --> 00:17:45,119 Speaker 1: And you mentioned the October consumer data. October is a 319 00:17:45,119 --> 00:17:47,000 Speaker 1: month in the year when there's a big week long 320 00:17:47,040 --> 00:17:49,399 Speaker 1: holiday in China, It's meant to be a month of 321 00:17:49,440 --> 00:17:51,960 Speaker 1: the year when there's big spending on you know, on 322 00:17:52,000 --> 00:17:55,560 Speaker 1: tourism related and travel related activities. That didn't happen. It 323 00:17:55,680 --> 00:17:59,600 Speaker 1: went into negative territory. There is broad based weakness across 324 00:17:59,680 --> 00:18:02,520 Speaker 1: all of the main gauges of retail spending, from household 325 00:18:02,600 --> 00:18:05,359 Speaker 1: goods through to eating out and the like, and there's 326 00:18:05,400 --> 00:18:08,359 Speaker 1: no sign of that turning around. And that's a critical point. 327 00:18:08,359 --> 00:18:11,160 Speaker 1: The consumer, which had become the engine of China's economy 328 00:18:11,359 --> 00:18:14,240 Speaker 1: in recent years, remains stuck in the indulgence. Do we 329 00:18:14,359 --> 00:18:17,800 Speaker 1: know or can we delineate between let's say, sales at 330 00:18:17,840 --> 00:18:21,919 Speaker 1: physical stores versus e commerce. Is there any way to 331 00:18:22,040 --> 00:18:26,640 Speaker 1: understand how consumer behavior has adjusted relative to what we're 332 00:18:26,640 --> 00:18:29,760 Speaker 1: talking about, particularly as it relates to COVID. There is 333 00:18:29,840 --> 00:18:33,480 Speaker 1: evidence of declining even declining online demand in terms of 334 00:18:33,520 --> 00:18:36,560 Speaker 1: the online annual shopping brands is dog There's no doubt 335 00:18:36,560 --> 00:18:38,320 Speaker 1: about it. But I should go back one step to 336 00:18:38,400 --> 00:18:41,800 Speaker 1: one of your points that remember China's economy. In China's 337 00:18:41,800 --> 00:18:46,119 Speaker 1: the consumers had it pretty good in one because the 338 00:18:46,200 --> 00:18:49,880 Speaker 1: disease the disease was controlled pretty well and the level 339 00:18:49,920 --> 00:18:52,159 Speaker 1: of disruption was nothing like what's happening this year, and 340 00:18:52,160 --> 00:18:54,760 Speaker 1: now the consumer remains subdued overall. You are right, but 341 00:18:55,040 --> 00:18:58,200 Speaker 1: the economy had a pretty good two has been the 342 00:18:58,200 --> 00:19:01,360 Speaker 1: big game changer because the arrival of om CON has 343 00:19:01,400 --> 00:19:04,640 Speaker 1: made it's so much more difficult control, and by extension, 344 00:19:04,680 --> 00:19:07,800 Speaker 1: that's impeding on people's daily working on recreational lives in 345 00:19:07,800 --> 00:19:10,479 Speaker 1: ways that hasn't before. So school closures have become much 346 00:19:10,520 --> 00:19:13,840 Speaker 1: more routine, daily testing requirems have become much more routine. 347 00:19:14,160 --> 00:19:16,200 Speaker 1: All of that is of course impacting what people are 348 00:19:16,200 --> 00:19:19,240 Speaker 1: spending and had their spending in that result of the 349 00:19:19,280 --> 00:19:23,359 Speaker 1: consumption story has is very much indulgence as a growth driver. 350 00:19:23,760 --> 00:19:25,640 Speaker 1: You and I were talking before we went to air 351 00:19:25,760 --> 00:19:29,240 Speaker 1: about the difficulty and measuring a consumer sentiment in China. 352 00:19:29,320 --> 00:19:34,080 Speaker 1: There are no surveys for that kind of sentiment per se, 353 00:19:34,600 --> 00:19:37,800 Speaker 1: but I would imagine that employment, to the extent that 354 00:19:37,840 --> 00:19:40,560 Speaker 1: you are employed and are earning an income, that's going 355 00:19:40,600 --> 00:19:44,040 Speaker 1: to have a very positive correlation. I know that youth 356 00:19:44,080 --> 00:19:49,000 Speaker 1: employment though in China is what running right now, so demographically, 357 00:19:49,080 --> 00:19:53,240 Speaker 1: I think that there are probably pockets of the economy 358 00:19:53,240 --> 00:19:57,160 Speaker 1: in terms of demographics where sentiment is maybe a little 359 00:19:57,200 --> 00:19:59,520 Speaker 1: weaker than another's right, it is it's it is tough 360 00:19:59,560 --> 00:20:02,760 Speaker 1: to send tally gage sentiments in China, both because of 361 00:20:02,800 --> 00:20:05,240 Speaker 1: the political system and of course an economy of that 362 00:20:05,359 --> 00:20:08,560 Speaker 1: size dog. But we do get snap shuts off, especially 363 00:20:08,600 --> 00:20:10,719 Speaker 1: in social media. It is often the case that there 364 00:20:10,760 --> 00:20:14,800 Speaker 1: can be a you know, a series of outrage amongst 365 00:20:14,800 --> 00:20:17,719 Speaker 1: residents over some COVID related policy that gets censored. That's 366 00:20:17,720 --> 00:20:20,360 Speaker 1: an indication that people are unhappy. There was, of course, 367 00:20:20,400 --> 00:20:23,800 Speaker 1: the mortgage boycott earlier this year because of an unhappiness 368 00:20:23,800 --> 00:20:26,400 Speaker 1: forwards government policy. Those are all indications there have been 369 00:20:26,920 --> 00:20:29,120 Speaker 1: There have been ways a sense that the Chinese consumer 370 00:20:29,200 --> 00:20:31,440 Speaker 1: is not happy at the moment. We do know that, 371 00:20:31,880 --> 00:20:34,600 Speaker 1: and I think though going forward a lot will depend 372 00:20:34,640 --> 00:20:37,520 Speaker 1: on just where these government policy pivots do go. And 373 00:20:37,680 --> 00:20:40,159 Speaker 1: always a pleasure. Thanks for making time to chat with 374 00:20:40,240 --> 00:20:43,919 Speaker 1: us and the current Bloomberg's Chief Asia Economics correspondent, I'm 375 00:20:44,000 --> 00:20:46,200 Speaker 1: that prisoner in New York. You can join us weekdays 376 00:20:46,200 --> 00:20:49,160 Speaker 1: for Bloomberg Daybreak Asia beginning at seven am in Hong 377 00:20:49,240 --> 00:20:53,040 Speaker 1: Kong six pm on Wall Street, John Doug thanks a lot, 378 00:20:53,240 --> 00:20:55,760 Speaker 1: and just they had on Bloomberg Daybreak Weekend. Women on 379 00:20:55,800 --> 00:20:59,119 Speaker 1: the US political stage as HOW Speaker Nancy Pelosi steps 380 00:20:59,160 --> 00:21:02,240 Speaker 1: down from the lead ship position. I'm John Tucker, and 381 00:21:02,440 --> 00:21:15,359 Speaker 1: this is Bloomberg. This is Bloomberg Daybreak Weekend, our global 382 00:21:15,359 --> 00:21:17,439 Speaker 1: look ahead of the top stories for investors in the 383 00:21:17,480 --> 00:21:20,679 Speaker 1: coming week. I'm John Tucker in New York. Women in 384 00:21:20,800 --> 00:21:24,320 Speaker 1: US politics the focus as HOW Speaker Nancy Pelosi's legacy 385 00:21:24,440 --> 00:21:27,520 Speaker 1: is remembered as she prepares to hand the reins over 386 00:21:27,600 --> 00:21:29,960 Speaker 1: as the House Speaker. And for more, let's head to 387 00:21:30,000 --> 00:21:36,040 Speaker 1: our Bloomberg newsroom in Washington and Amy Morris, Amy, thank you, John. 388 00:21:36,080 --> 00:21:39,280 Speaker 1: Nancy Pelosi has been HOW Speaker for almost two decades, 389 00:21:39,320 --> 00:21:41,960 Speaker 1: and as the first female Speaker of the House, she's 390 00:21:42,040 --> 00:21:45,160 Speaker 1: open doors for more women. Joining us now to talk 391 00:21:45,200 --> 00:21:48,680 Speaker 1: about Pelosi in her unique style of leadership. Bloomberg News 392 00:21:48,680 --> 00:21:51,480 Speaker 1: Congressional reporter at Laura let Van. Laura want to thank 393 00:21:51,520 --> 00:21:54,040 Speaker 1: you for joining us. Thanks for having me now. I 394 00:21:54,080 --> 00:21:58,960 Speaker 1: think what's important to establish is your relationship with Nancy 395 00:21:59,000 --> 00:22:03,600 Speaker 1: Pelosi is that you've covered her for years. Um, were 396 00:22:03,640 --> 00:22:06,280 Speaker 1: you at all surprised when she announced that she would 397 00:22:06,320 --> 00:22:08,880 Speaker 1: not be seeking the leadership. I have been thinking she 398 00:22:08,960 --> 00:22:11,480 Speaker 1: would make that announcement because she had promised a couple 399 00:22:11,480 --> 00:22:15,040 Speaker 1: of years ago to get the votes to become speaker again, 400 00:22:15,080 --> 00:22:18,520 Speaker 1: that she would be prepared to clear the path for others, 401 00:22:18,840 --> 00:22:22,560 Speaker 1: younger leaders to have their turn. So I was not 402 00:22:22,760 --> 00:22:25,639 Speaker 1: deeply surprised, but there there was some sense of suspense. Now, 403 00:22:25,720 --> 00:22:28,359 Speaker 1: let's talk a bit about what you have seen in 404 00:22:28,400 --> 00:22:31,960 Speaker 1: the years that you've covered her. I mean, you've seen 405 00:22:32,000 --> 00:22:34,480 Speaker 1: her on the House floor, you've seen her at the 406 00:22:34,520 --> 00:22:36,960 Speaker 1: White House. Tell us a little bit about the woman 407 00:22:37,000 --> 00:22:39,320 Speaker 1: who is Nancy Pelosi. I covered her for about ten 408 00:22:39,400 --> 00:22:44,080 Speaker 1: years starting h I covered her around the time she 409 00:22:44,200 --> 00:22:47,520 Speaker 1: was starting to rise up in politics and through part 410 00:22:47,560 --> 00:22:51,800 Speaker 1: of her first speakership. And uh, it's worth noting that 411 00:22:51,880 --> 00:22:54,240 Speaker 1: you know she had come onto the scene in the 412 00:22:54,240 --> 00:22:59,480 Speaker 1: House and uh in two thousand one she ran against 413 00:22:59,560 --> 00:23:01,960 Speaker 1: any hooy Or for the whip job, and everyone knew 414 00:23:02,000 --> 00:23:04,560 Speaker 1: this was the stepping stone moment that could set up 415 00:23:04,600 --> 00:23:08,000 Speaker 1: who would be the next speaker because everyone knew, uh 416 00:23:08,040 --> 00:23:10,840 Speaker 1: that the following year, decap Part was probably going to 417 00:23:10,920 --> 00:23:13,840 Speaker 1: step down as the Democratic leader, and when he did, 418 00:23:14,040 --> 00:23:17,800 Speaker 1: she very quickly lined up the votes to replace him, 419 00:23:17,840 --> 00:23:19,880 Speaker 1: and that put her in line. She was a minority leader. 420 00:23:19,920 --> 00:23:22,080 Speaker 1: But if they picked up the House, which they did 421 00:23:22,160 --> 00:23:24,920 Speaker 1: in the two thousand six elections. That was that was 422 00:23:24,960 --> 00:23:27,280 Speaker 1: the history making moment that she was in line to 423 00:23:27,320 --> 00:23:29,880 Speaker 1: become the first female speaker of her and she then 424 00:23:29,920 --> 00:23:33,600 Speaker 1: took the gavel. I remember that historic moment on the 425 00:23:33,600 --> 00:23:37,320 Speaker 1: House floor. Let's look at another historic moment on the 426 00:23:37,320 --> 00:23:39,879 Speaker 1: House floor, and that was when Nancy Pelosi announced that 427 00:23:39,920 --> 00:23:43,400 Speaker 1: she'd be stepping down from House leadership with great confidence 428 00:23:43,680 --> 00:23:46,639 Speaker 1: in our caucus, I will not seek re election to 429 00:23:46,760 --> 00:23:50,400 Speaker 1: Democratic leadership in the next Congress. Now, we also heard 430 00:23:50,400 --> 00:23:53,720 Speaker 1: from a pioneer for women in politics, Vice President Kamala Harris. 431 00:23:53,760 --> 00:23:56,560 Speaker 1: She has been historic in so many ways, not only 432 00:23:56,880 --> 00:23:59,119 Speaker 1: as a first but because of the work that she 433 00:23:59,240 --> 00:24:02,840 Speaker 1: has done and um and the benefit that has resulted 434 00:24:02,880 --> 00:24:05,520 Speaker 1: from her work. Okay, so Laura, let's talk a little 435 00:24:05,520 --> 00:24:08,400 Speaker 1: bit about Nancy Pelosi's legacy and the work that she's 436 00:24:08,440 --> 00:24:12,400 Speaker 1: done with the White House, her relationships with the different presidents. 437 00:24:12,440 --> 00:24:15,520 Speaker 1: Of course, uh Donald Trump made it very clear he 438 00:24:15,560 --> 00:24:17,879 Speaker 1: was happy, of course that Republicans had regained the majority 439 00:24:17,920 --> 00:24:20,359 Speaker 1: in the House, but he seemed to have some specific 440 00:24:20,440 --> 00:24:24,600 Speaker 1: sentiment for Nancy Pelosi. We have taken over Congress. Nancy 441 00:24:24,640 --> 00:24:30,920 Speaker 1: Pelosi has been fired. Now, that was as he was 442 00:24:30,960 --> 00:24:35,160 Speaker 1: announcing his own run for president and still managed to 443 00:24:35,200 --> 00:24:37,880 Speaker 1: invoke Nancy Pelosi's name. Let's talk a little bit about 444 00:24:38,040 --> 00:24:41,240 Speaker 1: Nancy Pelosi's relationship with Donald Trump. Well, it was a 445 00:24:41,359 --> 00:24:45,919 Speaker 1: very tense relationship and involved uh in many cases one 446 00:24:46,000 --> 00:24:48,000 Speaker 1: or the other then walking out of White House meetings. 447 00:24:48,520 --> 00:24:53,639 Speaker 1: One of the most famous moments was uh. In May. Uh, 448 00:24:53,880 --> 00:24:57,400 Speaker 1: she had a meeting with Trump on infrastructure, and and 449 00:24:57,600 --> 00:24:59,400 Speaker 1: she seemed to realize that she could kind of get 450 00:24:59,480 --> 00:25:02,840 Speaker 1: under his in and as a powerful woman and and 451 00:25:02,960 --> 00:25:05,080 Speaker 1: kind of throw him off track. And this was one 452 00:25:05,080 --> 00:25:07,679 Speaker 1: of the big examples. But at this meeting kind of 453 00:25:07,720 --> 00:25:12,840 Speaker 1: devolved into a discussion about Democrat House Democrats investigations of him, 454 00:25:12,880 --> 00:25:14,960 Speaker 1: and she at one point accused him of a cover 455 00:25:15,040 --> 00:25:20,600 Speaker 1: up on their investigations, and um, he ended up leaving 456 00:25:20,600 --> 00:25:22,680 Speaker 1: the meeting, and she wrote a letter to all House 457 00:25:22,760 --> 00:25:26,159 Speaker 1: Democrats the following day that said, uh, he Trumpet had 458 00:25:26,160 --> 00:25:28,679 Speaker 1: a tempered tantrum for all of us to see. So 459 00:25:28,720 --> 00:25:31,560 Speaker 1: the next day he's holding a meeting or a press 460 00:25:31,600 --> 00:25:34,520 Speaker 1: conference to talk about a multibillion dollar farm made package, 461 00:25:34,720 --> 00:25:36,840 Speaker 1: and instead of talking about that, he spent a full 462 00:25:36,880 --> 00:25:39,720 Speaker 1: half hour talking about House Democrats and how unfair it 463 00:25:39,800 --> 00:25:43,200 Speaker 1: was that they were investigating him and referring to crazy Nancy. 464 00:25:43,480 --> 00:25:46,000 Speaker 1: Now you had mentioned that she you know, I know 465 00:25:46,040 --> 00:25:48,480 Speaker 1: a temper tantrum when I see one, because she's a 466 00:25:48,600 --> 00:25:52,199 Speaker 1: mother of five grandchildren, to so many grandkids. Let me 467 00:25:52,240 --> 00:25:55,639 Speaker 1: ask you about how she has managed the Democratic side 468 00:25:55,640 --> 00:25:58,720 Speaker 1: of things, because she's had to hold that coalition together, 469 00:25:58,760 --> 00:26:01,879 Speaker 1: she's had to hold that caucus to other between the 470 00:26:02,600 --> 00:26:06,359 Speaker 1: more progressive Democrats and the more moderate or more traditional 471 00:26:06,400 --> 00:26:10,560 Speaker 1: type Democrats. Making sure that that vote didn't split, that 472 00:26:10,640 --> 00:26:13,920 Speaker 1: party didn't split. Not an easy task, No it's not. 473 00:26:14,080 --> 00:26:17,000 Speaker 1: And there were, you know, quite a few moments, especially 474 00:26:17,040 --> 00:26:20,879 Speaker 1: you know under Biden, she's had some moments where she 475 00:26:21,000 --> 00:26:23,679 Speaker 1: was obviously struggling to keep progressives in line on the 476 00:26:23,680 --> 00:26:27,280 Speaker 1: infrastructure package and letting that move on its own, and 477 00:26:27,400 --> 00:26:30,600 Speaker 1: before trying to work on Biden's economic package, she would 478 00:26:30,680 --> 00:26:32,720 Speaker 1: use a variety of tactics. You talk about her being 479 00:26:32,760 --> 00:26:35,879 Speaker 1: a mother, one thing she's over the years, I've noticed 480 00:26:35,880 --> 00:26:38,760 Speaker 1: sometimes you would hear about these negotiating sessions in her 481 00:26:38,800 --> 00:26:41,920 Speaker 1: office with no food, all going on all night, trying 482 00:26:41,960 --> 00:26:45,399 Speaker 1: to post force the conversation. But but more often than not, 483 00:26:46,240 --> 00:26:49,399 Speaker 1: she wasn't operating so much as a parent or a 484 00:26:49,480 --> 00:26:52,359 Speaker 1: parent figure. She was engaging in very tough tactics to 485 00:26:52,480 --> 00:26:55,800 Speaker 1: consolidate her own power. And I'll point to the best 486 00:26:56,000 --> 00:26:57,680 Speaker 1: One of the best examples might be what she did 487 00:26:57,920 --> 00:27:00,159 Speaker 1: the moment she got in a speaker into that and 488 00:27:00,200 --> 00:27:04,119 Speaker 1: seven she without the knowledge of other House members, at 489 00:27:04,119 --> 00:27:06,440 Speaker 1: the very last minute, in the rules package that passes 490 00:27:06,920 --> 00:27:09,679 Speaker 1: to convene the Congress, uh the first day, which is 491 00:27:10,160 --> 00:27:12,479 Speaker 1: includes all kinds of routine things, there was a sentence 492 00:27:12,480 --> 00:27:14,520 Speaker 1: in there saying that committee chairman could only serve for 493 00:27:14,600 --> 00:27:18,520 Speaker 1: six years. And everyone voted for this without realizing that 494 00:27:18,520 --> 00:27:21,200 Speaker 1: that was in there, and uh, it consolidated her power 495 00:27:21,240 --> 00:27:25,800 Speaker 1: because there were these three Democratic chairman called the old bulls, 496 00:27:25,880 --> 00:27:29,000 Speaker 1: John Dingle on Energy and Commerce, John Conyers on Judiciary, 497 00:27:29,160 --> 00:27:31,840 Speaker 1: Charlie Rangle on Ways and Means that wanted to rifle 498 00:27:31,880 --> 00:27:34,000 Speaker 1: her power and could stay in these jobs forever. And 499 00:27:34,040 --> 00:27:36,320 Speaker 1: they didn't realize they voted for it, and they were furious. 500 00:27:36,640 --> 00:27:39,360 Speaker 1: And then just two weeks later, John Dingle finds out 501 00:27:39,400 --> 00:27:42,920 Speaker 1: that she um he's connected with the auto industry and 502 00:27:43,119 --> 00:27:46,560 Speaker 1: isn't wasn't as big into climate change proposals, as some 503 00:27:46,640 --> 00:27:49,720 Speaker 1: other progressive Democrats were, and he finds out that she 504 00:27:49,840 --> 00:27:52,679 Speaker 1: is encroaching on his committee' jurisdiction by creating a select 505 00:27:52,760 --> 00:27:55,800 Speaker 1: committee on climate change and putting Ed Markey, who's very 506 00:27:55,840 --> 00:27:58,840 Speaker 1: progressive on these issues, in charge of that. So that 507 00:27:58,880 --> 00:28:01,440 Speaker 1: would be her legacy and wouldn't it. How the way 508 00:28:01,440 --> 00:28:05,360 Speaker 1: that she was able to use her wiles and use 509 00:28:05,560 --> 00:28:10,000 Speaker 1: the other guys maybe UM mistakes, and use that to 510 00:28:10,040 --> 00:28:13,760 Speaker 1: help consolidate power. That's one of them. But another example, though, 511 00:28:13,760 --> 00:28:16,160 Speaker 1: there's a there's another side to which is her ability 512 00:28:16,200 --> 00:28:19,000 Speaker 1: to unify them all when she really needed to. And 513 00:28:19,080 --> 00:28:21,679 Speaker 1: you can credit the Democratic takeover in two thousand seven 514 00:28:22,359 --> 00:28:28,880 Speaker 1: and UM again in with her keeping everyone together on 515 00:28:29,200 --> 00:28:32,560 Speaker 1: in the first instance, everyone every Democrat in the House 516 00:28:32,960 --> 00:28:37,680 Speaker 1: against President Bush's pushed to privatized Social Security accounts, which 517 00:28:37,680 --> 00:28:40,920 Speaker 1: she could see would be politically unpopular, and he had been. 518 00:28:41,320 --> 00:28:44,120 Speaker 1: He had a very high approval ratings, and by tacking 519 00:28:44,120 --> 00:28:46,600 Speaker 1: this program again and again and again, it helped to 520 00:28:46,680 --> 00:28:48,800 Speaker 1: drive down his approval ratings and set the stage for 521 00:28:48,880 --> 00:28:54,320 Speaker 1: their campaigns. And then UH with UH the lead up 522 00:28:54,360 --> 00:28:57,560 Speaker 1: to the elections, it was the repeal of Obamacare again 523 00:28:57,640 --> 00:29:00,760 Speaker 1: she held all House Democrats together against that. She also 524 00:29:00,880 --> 00:29:04,920 Speaker 1: changed the whole idea about being a working mother because 525 00:29:04,920 --> 00:29:08,040 Speaker 1: she launched her career in politics quite late. She did. 526 00:29:08,280 --> 00:29:11,120 Speaker 1: She didn't even run for Congress until her last child 527 00:29:11,160 --> 00:29:13,560 Speaker 1: was going off to college. But she had been very 528 00:29:13,600 --> 00:29:18,160 Speaker 1: involved in politics, attracting attention many years earlier as a 529 00:29:18,320 --> 00:29:23,120 Speaker 1: leading fundraiser for her party. She um actually rose up 530 00:29:23,160 --> 00:29:26,520 Speaker 1: to become the chairwoman of the California Democratic Party and 531 00:29:26,640 --> 00:29:30,640 Speaker 1: later was the finance chair for the Democratic Senatorial Campaign Committee. 532 00:29:31,000 --> 00:29:35,200 Speaker 1: And it was those fundraising skills that then attracted attention. 533 00:29:35,520 --> 00:29:40,200 Speaker 1: She ran for Congress, but she was when she was 534 00:29:40,240 --> 00:29:43,200 Speaker 1: moving into leadership. It was her ability to raise money 535 00:29:43,200 --> 00:29:46,120 Speaker 1: for the party that helped her excel and become that 536 00:29:46,160 --> 00:29:49,040 Speaker 1: whip in two thousand one. That set the stage for 537 00:29:49,080 --> 00:29:52,240 Speaker 1: her rise. So she was fifty close to fifty forty 538 00:29:52,280 --> 00:29:55,120 Speaker 1: seven at the time. And it's also worth noting, you know, 539 00:29:55,720 --> 00:29:58,960 Speaker 1: women used to wear pinstripes, you know, in dressing charcoal 540 00:29:59,000 --> 00:30:02,960 Speaker 1: gray and tried a look like they were similar dressed 541 00:30:02,960 --> 00:30:05,520 Speaker 1: to men in the workplace. They didn't talk about their children. 542 00:30:05,520 --> 00:30:09,600 Speaker 1: She always surrounded herself in uh when she was being 543 00:30:09,640 --> 00:30:12,400 Speaker 1: sworn in a speaker with her grandchildren or other children 544 00:30:12,400 --> 00:30:15,320 Speaker 1: of other members. UM. She would talk about being a 545 00:30:15,360 --> 00:30:18,960 Speaker 1: mother often and a grandmother. She has nine grandchildren. Uh, 546 00:30:19,120 --> 00:30:22,520 Speaker 1: she's wearing bright colors, pink and and and other things 547 00:30:22,560 --> 00:30:25,240 Speaker 1: and just showing a more feminine side. Is that where 548 00:30:25,240 --> 00:30:26,920 Speaker 1: the white pants it comes from? Is that more of 549 00:30:26,920 --> 00:30:30,600 Speaker 1: a suffrage thing, that's more of a suffragette symbolism. She 550 00:30:30,680 --> 00:30:33,520 Speaker 1: and she was very good at these intentional wardrobe choices, 551 00:30:33,560 --> 00:30:35,800 Speaker 1: you know, the white When she showed up last week 552 00:30:35,920 --> 00:30:38,880 Speaker 1: in the capital wearing the white pants suit, it created 553 00:30:39,000 --> 00:30:40,720 Speaker 1: and this was the day she was going to say 554 00:30:40,760 --> 00:30:42,959 Speaker 1: that whether she was going to seek the Democratic leadership 555 00:30:42,960 --> 00:30:45,680 Speaker 1: position again, and everyone was wondering. They knew it was 556 00:30:45,760 --> 00:30:47,840 Speaker 1: a big moment that she has that suit on the 557 00:30:47,840 --> 00:30:50,800 Speaker 1: white was was worn by women in the women's movement 558 00:30:50,840 --> 00:30:52,920 Speaker 1: dating back to the early nineteen hundreds. And we've seen 559 00:30:53,000 --> 00:30:56,560 Speaker 1: Hillary Clinton when she accepted the nomination the Democratic presidential 560 00:30:56,600 --> 00:31:01,560 Speaker 1: nomination in wearing a white pants suit. Nancy Pelosi were 561 00:31:01,600 --> 00:31:05,360 Speaker 1: it UH during Trump's impeachment trials when she announced that 562 00:31:05,360 --> 00:31:08,680 Speaker 1: they were going to pursue articles of impeachment. She wore 563 00:31:08,760 --> 00:31:12,480 Speaker 1: them during both of Trump's UH State of the Union addresses, 564 00:31:12,520 --> 00:31:16,560 Speaker 1: including the time when in UH twenty nineteen when she 565 00:31:16,680 --> 00:31:20,440 Speaker 1: tore his speech in half on television. Now, Laura, one 566 00:31:20,480 --> 00:31:22,400 Speaker 1: of the things that you're doing now is following the 567 00:31:22,440 --> 00:31:26,200 Speaker 1: Senate very closely. We always do these interviews looking forward, 568 00:31:26,280 --> 00:31:28,920 Speaker 1: looking ahead to the coming week. What are you watching 569 00:31:28,960 --> 00:31:30,680 Speaker 1: for from here that's going to be coming up? It's 570 00:31:30,720 --> 00:31:33,120 Speaker 1: kind of on your radar. Well. A big question is 571 00:31:33,120 --> 00:31:35,320 Speaker 1: whether or not Congress is going to address the dead 572 00:31:35,400 --> 00:31:38,000 Speaker 1: ceiling in the lame duck session. It's looking like maybe 573 00:31:38,040 --> 00:31:41,240 Speaker 1: they won't, which will be uh setting up stage for 574 00:31:41,280 --> 00:31:46,880 Speaker 1: a big conflict in UH in Because Republicans will have 575 00:31:46,920 --> 00:31:49,760 Speaker 1: the House, there's still the opportunity if Democrats wanted to 576 00:31:49,760 --> 00:31:52,080 Speaker 1: while they still have control, to try to raise it. Now, 577 00:31:52,200 --> 00:31:55,080 Speaker 1: Bloomberg News congressional reporter Laura lit Van, thank you so 578 00:31:55,160 --> 00:31:57,960 Speaker 1: much for shedding some light on the legacy of Nancy 579 00:31:58,000 --> 00:32:00,000 Speaker 1: Pelosi and what's going to be coming up in Congress. 580 00:32:00,000 --> 00:32:02,800 Speaker 1: We appreciate it. That's what's going on in the nation's capital. 581 00:32:02,840 --> 00:32:05,120 Speaker 1: For more of our political news coverage, you can tune 582 00:32:05,120 --> 00:32:07,840 Speaker 1: into Balance of Power with David weston weekdays at noon, 583 00:32:07,920 --> 00:32:10,880 Speaker 1: Wall Street Time and Sound On with Joe Matthew weekdays 584 00:32:10,880 --> 00:32:13,480 Speaker 1: at five pm Wall Street Time. That's here on Bloomberg Radio. 585 00:32:13,840 --> 00:32:16,720 Speaker 1: I'm Amy Morris and this is Bloomberg John. Amy Morris 586 00:32:16,760 --> 00:32:21,200 Speaker 1: reporting from our Bloomberg room in Washington. Thanks Amy, And 587 00:32:21,240 --> 00:32:24,040 Speaker 1: that does it for it this edition of Bloomberg Daybreak Weekend. 588 00:32:24,160 --> 00:32:27,040 Speaker 1: Join us again Monday morning at five am Wall Street 589 00:32:27,080 --> 00:32:30,400 Speaker 1: Time for the latest on markets overseas and news you 590 00:32:30,440 --> 00:32:33,080 Speaker 1: need to start your day. I'm John Tucker and this 591 00:32:33,560 --> 00:32:34,200 Speaker 1: is Bloomberg