Speaker 1: This is Bloomberg Daybreak Weekend, our global look at the
Speaker 1: top stories in the coming week from our Daybreak anchors
Speaker 1: all around the world. And just to hand on the
Speaker 1: program with all the layoffs, how much is the job
Speaker 1: market really weakening? I'm John Tucker in New York. I'm
Speaker 1: Stephen carl in London, where the shops and restaurants are
Speaker 1: full of festive chair but the wider picture for the
Speaker 1: consumer sector is looking what's gloomier. I'm Duck Chrissener. We'll
Speaker 1: look at the many challenges facing the Chinese consumer. I'm
Speaker 1: Amy Morris in Washington, will look at the career and
Speaker 1: legacy aboutgoing House speaker Nancy Pelosi. That's all straight ahead
Speaker 1: on Bloomberg Daybreak Weekend on Bloomberg eleven three, on New York,
Speaker 1: Bloomberg one, Washington d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties, San Francisco d A B, Digital Radio, London,
Speaker 1: Sirius XM one nineteen and around the world on Bloomberg
Speaker 1: Radio dot com and via the Bloomberg Business at Hi, Everybody,
Speaker 1: I'm John Tucker. An let'st today's program with a look
Speaker 1: at the jobs market. Joining us now to talk about
Speaker 1: at Bloomberg Global Economics and Policy editor Michael McKee. You know,
Speaker 1: we've had tens of thousands of job cuts in the
Speaker 1: past few weeks, a lot of them in technology. What
Speaker 1: are we expecting to see in this week's jobs report?
Speaker 1: Any of the is gonna show up in this report.
Speaker 1: We're not expecting it. Uh. We may see some declines
Speaker 1: in tech employment, but it appears most people are finding
Speaker 1: new jobs fairly quickly, at least according to the jobless
Speaker 1: claims numbers, and so tech is a very small part
Speaker 1: of the overall labor market. There are hundred forty six
Speaker 1: million jobs in America, and so tens of thousands is
Speaker 1: still a very small percentage. Is the employment report? The
Speaker 1: jobs reports still the mother of all economic reports? Well,
Speaker 1: it may be the mother of all economic reports. The
Speaker 1: c p I s maybe the mother in law of
Speaker 1: all economic reports because the FED is kind of focused
Speaker 1: more on prices these days. But the Jobs report is
Speaker 1: always going to be there because it's a sign of
Speaker 1: the strength of the economy. And we're moving into a
Speaker 1: period now where we've had the FED focused on how
Speaker 1: fast it was going to move and how high it
Speaker 1: was going to move. And now the question that seems
Speaker 1: to be developing in the markets is, Okay, if we
Speaker 1: buy your idea that you go to five cent and
Speaker 1: you do it more gradually, when you're gonna start cutting,
Speaker 1: and that will depend on the economy. If the jobless
Speaker 1: rate starts to rise significantly, then the Fed is going
Speaker 1: to have to think about it. They insist they'll live
Speaker 1: with a higher jobless rate, but if it goes too far,
Speaker 1: then they might start thinking about a rate reduction. So
Speaker 1: that's gonna be the way the debate plays out in
Speaker 1: how tight is the labor market right now? Well, by
Speaker 1: all standard indicators, it's very tight. Still, the number of
Speaker 1: job openings is still very high, and the unemployment rate
Speaker 1: is still very low. The participation rate is not going
Speaker 1: up significantly, so there aren't enough workers to fill all
Speaker 1: the jobs. Is when it comes down to now, you
Speaker 1: may have a labor mismatch where the people who are
Speaker 1: available to work don't have the skills necessary for the
Speaker 1: jobs that are open. That's hard to prove, but it
Speaker 1: is a theory for part of why we see such
Speaker 1: a high rate of job openings. But the other situation
Speaker 1: is this is totally unusual because everybody lost their job
Speaker 1: at once, and then a lot of people decided to
Speaker 1: not to come back into the labor force and to
Speaker 1: perhaps retire. So there are a lot of jobs going
Speaker 1: unfilled that may never be filled. It probably is the
Speaker 1: FED and economists don't really know how that's going to
Speaker 1: play out. Okay, So if I'm a business owner and
Speaker 1: I need a worker and I can't find anybody out there,
Speaker 1: I'm going to offer more and more pay and maybe
Speaker 1: pay the workers that I do have to keep them,
Speaker 1: going to pay them more, and that's going to feed
Speaker 1: into inflation because then I have to raise my end
Speaker 1: prices that I try to consumers. Does that make sense?
Speaker 1: That makes sense, and it it's what's been happening, particularly
Speaker 1: on the service industry side. We saw it happen in
Speaker 1: manufacturing that's weakened some Now that demand has weakened for goods,
Speaker 1: people spending more on services, and services industries were the
Speaker 1: last to recoup some of the workers that they lost,
Speaker 1: particularly things like restaurants and bars and many retail stores.
Speaker 1: So they have had to raise their pay rates and
Speaker 1: they have had to raise prices to pay for it.
Speaker 1: The question is how many more workers are they going
Speaker 1: to be hiring and then uh those many of those jobs,
Speaker 1: particularly in restaurants and bars, are transitory. People don't stay
Speaker 1: in them very long. They're taking them as a springboard
Speaker 1: to something else, or they're uh going to be looking
Speaker 1: for something else because the job itself is very hard.
Speaker 1: So once you get back to a rough ability to
Speaker 1: serve your customers, do you then need to keep raising
Speaker 1: rates or do you need can you say, well, maybe
Speaker 1: that's it, I'm done, or I'm not going to pay
Speaker 1: as much to the next round of people because now
Speaker 1: I'm backstaffed where I need to be. What's the lag
Speaker 1: time between enacting policy by the Federal Reserve and the
Speaker 1: time it shows up in something like the labor market? Traditionally,
Speaker 1: as Milton Friedman put in, it's long and variable legs
Speaker 1: with no with no timing on it. Estimates by researchers
Speaker 1: have suggested somewhere between twelve and eighteen months, although it
Speaker 1: is kind of accepted wisdom now and certainly at the FED,
Speaker 1: that it's faster than that now because we have so
Speaker 1: many transmission channels that are so quick. You have instantaneous
Speaker 1: payments for things, and you can One of the examples
Speaker 1: always used was restaurants were slow to change prices because
Speaker 1: then they would have to reprint all their menus. But
Speaker 1: now you're just doing it as a PDF that people
Speaker 1: are scanning their phones on, so you can raise prices
Speaker 1: very quickly, so you can see much quicker move into
Speaker 1: the economy. But nevertheless, the feeling is we're only six
Speaker 1: months into this. Seems like forever, but only six months
Speaker 1: into this, and that we may start to see some
Speaker 1: of it really start to hit coming fairly soon. The
Speaker 1: Photo Reserve chairman Jerome pal is going to also speak
Speaker 1: in some format this coming week. What's he expected to
Speaker 1: say will be a check the box kind of thing.
Speaker 1: They'll ask him, we presume how high are you going
Speaker 1: to raise it at this meeting? And the betting is
Speaker 1: he's going to push people to fifty basis points half
Speaker 1: a presentage point, and then how high do you think
Speaker 1: we need to go? And the consensus of the FED
Speaker 1: speakers over the last couple of weeks has been around
Speaker 1: five percent Summer four, seventy five, summer five, somewhere in
Speaker 1: that range. Then the question is how long are you
Speaker 1: going to keep it there? And what are you going
Speaker 1: to look for? And that's what Wall Street wants to
Speaker 1: know Mike as always a pleasure. Michael McKee And just
Speaker 1: to hit on Bloomberg Daybreak weekend, waning consumer confidence in
Speaker 1: the UK. I'm John Tucker and this is Bloomberg. This
Speaker 1: is Bloomberg Daybreak weekend. Are glob to look ahead at
Speaker 1: the top stories for investors in the coming week. I'm
Speaker 1: John Tucker in New York. Up later in the program
Speaker 1: consumers and the economy in China, But first, the UK
Speaker 1: headed toured the holiday season with a recession looming and
Speaker 1: consumer competence lower than it was during the financial crisis.
Speaker 1: Consumers spending is held up so far, but how long's
Speaker 1: that gonna last? For more? Let's hit to London and
Speaker 1: bringing Bloomberg Daybreak europancher Stephen Carol, John Nathan. The lights
Speaker 1: and decorations are up in London and it's as hard
Speaker 1: as ever to get a restaurant booking here. But the
Speaker 1: visible cheer from some is coming at a time as
Speaker 1: deep economic gloom. Overall inflation is at forty year high
Speaker 1: in the UK. We've got rising interest rates at a
Speaker 1: crippling jump in rents and mortgage costs for many. So
Speaker 1: how resilient are Britain's consumers looking in this crucial end
Speaker 1: of year shopping period. Let's bring in our opinion economist
Speaker 1: and afl Stad and Are Bloomberg, Pursuits Reporters, Serrapaport as
Speaker 1: well Andrea. The last retail sales figures showed a little
Speaker 1: bit of growth in October. Consumer confidence surveys still very
Speaker 1: much on the duldrum. What is the picture going to
Speaker 1: be like going into this really important period of the
Speaker 1: year for consumers. Well, the most remarkable thing is despite
Speaker 1: all the doom and gloom and the cost of living
Speaker 1: crisis and all the issues that are consumers are facing,
Speaker 1: they are being remarkably resilient. We've seen a little bit
Speaker 1: of distress. We had made dot com and jewels collapse,
Speaker 1: but aside from that, there is very little distress. The
Speaker 1: most remarkable thing is that nothing's really happened yet. Oh
Speaker 1: yet is the key word, And that we we had
Speaker 1: updates and the likes of you know, high Street Staples here,
Speaker 1: Marks and Spencer's next people like that. What did we
Speaker 1: learn from from their results? We learned that things were
Speaker 1: taking along. Okay, I think this Christmas will be fine.
Speaker 1: I think this will be the last hurrah The important
Speaker 1: thing is that this is the first year for three
Speaker 1: that it will be a relatively normal Christmas. People will
Speaker 1: be out visiting friends of family. When they do so,
Speaker 1: they tend to buy gifts for them. The hospitality industry
Speaker 1: is seeing bookings return, particularly things like office Christmas parties,
Speaker 1: office nights out that really haven't happened for the last
Speaker 1: two years. So I think this Christmas will be fine.
Speaker 1: What we them face is a very nasty hangover in
Speaker 1: the new year, so it could be the next set
Speaker 1: of results before we get that clearer picture of us
Speaker 1: and Sarah some consumers feeling very resilient. Indeed, and you've
Speaker 1: been writing about luxury spas for Bloomberg Pursuits. First of all,
Speaker 1: what did you find out? And secondly, how what's the
Speaker 1: demand looking like for for services like that? Well, like
Speaker 1: andreas Son, you know, luxury is doing great. Luxury is
Speaker 1: doing absolutely fine. People who have money to spend our
Speaker 1: spending it because, like she said, over the past three years,
Speaker 1: you couldn't you couldn't book a five star hotel at
Speaker 1: Christmas to travel from the US without tests or you know,
Speaker 1: vaccines or anything. Now you can in the exchange rate
Speaker 1: is great for Americans and they're coming over here and
Speaker 1: they're spending and what I found in the luxury spot industry.
Speaker 1: So there's a bit of an arms race right now
Speaker 1: within the top hotels, the Bulgari, Spa, Clarridges, the Corinthia
Speaker 1: Claria just just had a huge revamp. Now there's a
Speaker 1: pool when they've read it blows a pool. Now you
Speaker 1: can also get the full celebrity experience with the six
Speaker 1: pound manicure by a celebrity manicurist. Um. I have not
Speaker 1: sampled it, but there's all kinds of really competitive offers
Speaker 1: trying to get the whole v I P experience for
Speaker 1: the one person consumer that they're looking for. Okay, I
Speaker 1: mean there's a good question as to whether or not
Speaker 1: you might have the best job about Bloomberg, Sarah. I
Speaker 1: think I do. I think I think competing with you
Speaker 1: will be our colleague Manus Cranny, who was speaking to
Speaker 1: the CEO of Mode Hennessey Phillips Go and talking about
Speaker 1: the demand that they're seeing for Champagne. Let's take a
Speaker 1: listen in we talked about the roaring twenties in the
Speaker 1: twenty two will be fabulous here for Champagne without giving
Speaker 1: any numbers. We are running all of stock on on
Speaker 1: most of our best trimpains. So I think as people
Speaker 1: have been coming out of COVID, it's been just spent
Speaker 1: up demand for luxury, enjoyment, traveling and all that running
Speaker 1: of stock. How close to the end of the champagne
Speaker 1: stock are we? Well this every year you stop coming fortunately,
Speaker 1: so there will be more to come for next year.
Speaker 1: And that's the SEEO of Mode. Tannessey speaking to Manus Cranny. So, Sarah,
Speaker 1: we've been talking about this boom then in the hospitality sector.
Speaker 1: So we're still, as Andre was telling us, you know,
Speaker 1: still seeing reasonable amount of resilience and consumers when they're
Speaker 1: spending on things, what about what they're spending on going out. Well,
Speaker 1: there might be a nasty hangover in January, as there
Speaker 1: always is, but for now London is fully booked. It's
Speaker 1: very hard to get a table at a top restaurant
Speaker 1: right now. The bars are packed, the West End is packed,
Speaker 1: theater eater is booming. They need this Christmas season to
Speaker 1: be a success. And I'll say there are problems, like
Speaker 1: their gas bills are are very high and they didn't
Speaker 1: have the previous seasons. But right now business is booming
Speaker 1: in the West End in hospitality. People are coming over
Speaker 1: and and they're spending, and of course it's a chance
Speaker 1: for many people to have a blowout after a few
Speaker 1: difficult years. There's that sort of yolo mentality after like
Speaker 1: the lockdown and code. People want to have a big Christmas.
Speaker 1: They want to see their friends and family, they want
Speaker 1: to get back to normality. And even though things are
Speaker 1: more expensive than they were in people are putting it
Speaker 1: on credit cards or they're deciding, you know what, for me,
Speaker 1: this is worth worth it. This year. They're going to
Speaker 1: go out and they'll they'll spend. So yeah, it's going
Speaker 1: to be a big Christmas for hospitality in London. You're
Speaker 1: making me excited about the coming weeks, although I'm quite
Speaker 1: worried about where I'm gonna go for dinner anyway, Andrea,
Speaker 1: let's talk about the consumer luxury sector, which is I
Speaker 1: suppose in that space of the Champagne and the high
Speaker 1: end spas that Sarah was telling us about, what does
Speaker 1: the picture look like, They're it's very similar. What we're
Speaker 1: seeing in luxury is we're seeing the very top end
Speaker 1: to continue to spend on her Mayor's Hamburgs our Hamburgs.
Speaker 1: What we're just starting to see this is more in
Speaker 1: the US than in Europe. Yet, is that that more
Speaker 1: marginal luxury consumer, the consumer that perhaps spent stimulus checks
Speaker 1: on a new Hamburg or a new pair of sneakers
Speaker 1: in one they haven't been so exuberant this year and
Speaker 1: they are just starting to rain in their spending. So
Speaker 1: I would say that is a bit of a warning
Speaker 1: sign for the luxury industry as we go into next year.
Speaker 1: What about this idea of you know, the cheap pound
Speaker 1: has been a big advantage for people who are traveling,
Speaker 1: particularly from the US into the UK and looking to
Speaker 1: go shopping. Is that playing out in the boost for
Speaker 1: UK luxury brands. It's more playing out in Europe because
Speaker 1: they still have the tax free benefit that we no
Speaker 1: longer have in London, and brands have been saying Burbery
Speaker 1: said la this week that they are not seeing so
Speaker 1: many tourists coming to London. They're going to Paris or
Speaker 1: milamb because of that, you know, not having that tax breaks.
Speaker 1: So the the luxury industry, the Bridge luxury industry is
Speaker 1: lobbying to try and find a way forward so that
Speaker 1: they can encourage more overseas tourists to come to the
Speaker 1: UK and get that benefit, of course, because I mean
Speaker 1: we've been reporting and various parts of Bloomberg about the
Speaker 1: all of the things that Americans are able to buy
Speaker 1: more easily, property being one of them in the UK
Speaker 1: as well. Cominian columnist Andrea Felstead and our Pursuits reporter
Speaker 1: Sara Appaport. Thank you so much to both of you
Speaker 1: for your insights. I'm Stephen, Caroline, London. You can catch
Speaker 1: us every weekday morning here for Bloomberg Daybreak Europe, beginning
Speaker 1: at six am in London and one am on wall Streece.
Speaker 1: John Nathan Stephen, thanks a lot. Here just to hit
Speaker 1: on Bloomberg Daybreak, weekend consumers spending in China. I'm John Tucker.
Speaker 1: This is Bloomberg broadcasting live from the Bloomberg Interactive Broker
Speaker 1: Studio in New York. Bloomberg Even three oh to Washington,
Speaker 1: d C, Bloomberg to Boston, Bloomberg one O six one
Speaker 1: to San Francisco, Bloomberg to the Country, Sirius XM Cho
Speaker 1: one nine to London d A B Digital Radio, and
Speaker 1: around the globe. The Bloomberg Business Act and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg day Break Weekend. I'm John
Speaker 1: Tucker in New York with your global look ahead of
Speaker 1: the top stories for investors in the coming week. Holiday
Speaker 1: spending is in the spotlight this week as we head
Speaker 1: into the winter holiday season. Spending also in focus in China, Amoral.
Speaker 1: Let's go to Bloomberg day Break Asia host Doug Chrisner.
Speaker 1: John with a holiday season now underway in the US,
Speaker 1: the focus for markets is on the strength of the consumer.
Speaker 1: We have seen exceptional resilience so far in spite of
Speaker 1: stubbornly high inflation, although given uncertainty around the outlook, the
Speaker 1: risk is overcautious buying now. It was interesting that the
Speaker 1: South China Morning Post has already reported on a decline
Speaker 1: in Chinese exports to the U S. What does that
Speaker 1: speak to Meantime in China, domestic consumer spending has already
Speaker 1: been slowing. The primary factor, obviously has been beijing strict
Speaker 1: zero COVID policy. We want to take a closer look
Speaker 1: now at the outlook for Chinese consumers as we approached
Speaker 1: the end of the year, and we are joined by
Speaker 1: end to Current Bloomberg's Chief Asia Economics correspondent, and thank
Speaker 1: you for joining us. One of the things that struck
Speaker 1: me was the retail sales data for the month of
Speaker 1: October negative seven tenths of one percent, which was really
Speaker 1: much weaker than the market was looking for. I think
Speaker 1: the forecast was for a gain of one point two
Speaker 1: What is happening underneath the hood here in the Chinese
Speaker 1: economy where the consumer is concerned. It's a pretty downbeat
Speaker 1: story for the Chinese consumer. Two things are going on
Speaker 1: in China. On the one side, China is going through
Speaker 1: a big real estate slump. House prices continue to fall
Speaker 1: and demand for new homes continues to weaken. That's obviously
Speaker 1: eroding everybody's net worth and sense of you know, upbeat
Speaker 1: or or well being, so to speak. So that's one
Speaker 1: side of what's going on. The other side of what's
Speaker 1: going on, which we all know, is the very aggressive
Speaker 1: measures to contain COVID which continue to roll around the
Speaker 1: country in either the form of restrictions or mass testing
Speaker 1: or maybe even in some cases of broader lockdown. So
Speaker 1: all of that combined is really weighing on the consumer.
Speaker 1: And you mentioned the October consumer data. October is a
Speaker 1: month in the year when there's a big week long
Speaker 1: holiday in China, It's meant to be a month of
Speaker 1: the year when there's big spending on you know, on
Speaker 1: tourism related and travel related activities. That didn't happen. It
Speaker 1: went into negative territory. There is broad based weakness across
Speaker 1: all of the main gauges of retail spending, from household
Speaker 1: goods through to eating out and the like, and there's
Speaker 1: no sign of that turning around. And that's a critical point.
Speaker 1: The consumer, which had become the engine of China's economy
Speaker 1: in recent years, remains stuck in the indulgence. Do we
Speaker 1: know or can we delineate between let's say, sales at
Speaker 1: physical stores versus e commerce. Is there any way to
Speaker 1: understand how consumer behavior has adjusted relative to what we're
Speaker 1: talking about, particularly as it relates to COVID. There is
Speaker 1: evidence of declining even declining online demand in terms of
Speaker 1: the online annual shopping brands is dog There's no doubt
Speaker 1: about it. But I should go back one step to
Speaker 1: one of your points that remember China's economy. In China's
Speaker 1: the consumers had it pretty good in one because the
Speaker 1: disease the disease was controlled pretty well and the level
Speaker 1: of disruption was nothing like what's happening this year, and
Speaker 1: now the consumer remains subdued overall. You are right, but
Speaker 1: the economy had a pretty good two has been the
Speaker 1: big game changer because the arrival of om CON has
Speaker 1: made it's so much more difficult control, and by extension,
Speaker 1: that's impeding on people's daily working on recreational lives in
Speaker 1: ways that hasn't before. So school closures have become much
Speaker 1: more routine, daily testing requirems have become much more routine.
Speaker 1: All of that is of course impacting what people are
Speaker 1: spending and had their spending in that result of the
Speaker 1: consumption story has is very much indulgence as a growth driver.
Speaker 1: You and I were talking before we went to air
Speaker 1: about the difficulty and measuring a consumer sentiment in China.
Speaker 1: There are no surveys for that kind of sentiment per se,
Speaker 1: but I would imagine that employment, to the extent that
Speaker 1: you are employed and are earning an income, that's going
Speaker 1: to have a very positive correlation. I know that youth
Speaker 1: employment though in China is what running right now, so demographically,
Speaker 1: I think that there are probably pockets of the economy
Speaker 1: in terms of demographics where sentiment is maybe a little
Speaker 1: weaker than another's right, it is it's it is tough
Speaker 1: to send tally gage sentiments in China, both because of
Speaker 1: the political system and of course an economy of that
Speaker 1: size dog. But we do get snap shuts off, especially
Speaker 1: in social media. It is often the case that there
Speaker 1: can be a you know, a series of outrage amongst
Speaker 1: residents over some COVID related policy that gets censored. That's
Speaker 1: an indication that people are unhappy. There was, of course,
Speaker 1: the mortgage boycott earlier this year because of an unhappiness
Speaker 1: forwards government policy. Those are all indications there have been
Speaker 1: There have been ways a sense that the Chinese consumer
Speaker 1: is not happy at the moment. We do know that,
Speaker 1: and I think though going forward a lot will depend
Speaker 1: on just where these government policy pivots do go. And
Speaker 1: always a pleasure. Thanks for making time to chat with
Speaker 1: us and the current Bloomberg's Chief Asia Economics correspondent, I'm
Speaker 1: that prisoner in New York. You can join us weekdays
Speaker 1: for Bloomberg Daybreak Asia beginning at seven am in Hong
Speaker 1: Kong six pm on Wall Street, John Doug thanks a lot,
Speaker 1: and just they had on Bloomberg Daybreak Weekend. Women on
Speaker 1: the US political stage as HOW Speaker Nancy Pelosi steps
Speaker 1: down from the lead ship position. I'm John Tucker, and
Speaker 1: this is Bloomberg. This is Bloomberg Daybreak Weekend, our global
Speaker 1: look ahead of the top stories for investors in the
Speaker 1: coming week. I'm John Tucker in New York. Women in
Speaker 1: US politics the focus as HOW Speaker Nancy Pelosi's legacy
Speaker 1: is remembered as she prepares to hand the reins over
Speaker 1: as the House Speaker. And for more, let's head to
Speaker 1: our Bloomberg newsroom in Washington and Amy Morris, Amy, thank you, John.
Speaker 1: Nancy Pelosi has been HOW Speaker for almost two decades,
Speaker 1: and as the first female Speaker of the House, she's
Speaker 1: open doors for more women. Joining us now to talk
Speaker 1: about Pelosi in her unique style of leadership. Bloomberg News
Speaker 1: Congressional reporter at Laura let Van. Laura want to thank
Speaker 1: you for joining us. Thanks for having me now. I
Speaker 1: think what's important to establish is your relationship with Nancy
Speaker 1: Pelosi is that you've covered her for years. Um, were
Speaker 1: you at all surprised when she announced that she would
Speaker 1: not be seeking the leadership. I have been thinking she
Speaker 1: would make that announcement because she had promised a couple
Speaker 1: of years ago to get the votes to become speaker again,
Speaker 1: that she would be prepared to clear the path for others,
Speaker 1: younger leaders to have their turn. So I was not
Speaker 1: deeply surprised, but there there was some sense of suspense. Now,
Speaker 1: let's talk a bit about what you have seen in
Speaker 1: the years that you've covered her. I mean, you've seen
Speaker 1: her on the House floor, you've seen her at the
Speaker 1: White House. Tell us a little bit about the woman
Speaker 1: who is Nancy Pelosi. I covered her for about ten
Speaker 1: years starting h I covered her around the time she
Speaker 1: was starting to rise up in politics and through part
Speaker 1: of her first speakership. And uh, it's worth noting that
Speaker 1: you know she had come onto the scene in the
Speaker 1: House and uh in two thousand one she ran against
Speaker 1: any hooy Or for the whip job, and everyone knew
Speaker 1: this was the stepping stone moment that could set up
Speaker 1: who would be the next speaker because everyone knew, uh
Speaker 1: that the following year, decap Part was probably going to
Speaker 1: step down as the Democratic leader, and when he did,
Speaker 1: she very quickly lined up the votes to replace him,
Speaker 1: and that put her in line. She was a minority leader.
Speaker 1: But if they picked up the House, which they did
Speaker 1: in the two thousand six elections. That was that was
Speaker 1: the history making moment that she was in line to
Speaker 1: become the first female speaker of her and she then
Speaker 1: took the gavel. I remember that historic moment on the
Speaker 1: House floor. Let's look at another historic moment on the
Speaker 1: House floor, and that was when Nancy Pelosi announced that
Speaker 1: she'd be stepping down from House leadership with great confidence
Speaker 1: in our caucus, I will not seek re election to
Speaker 1: Democratic leadership in the next Congress. Now, we also heard
Speaker 1: from a pioneer for women in politics, Vice President Kamala Harris.
Speaker 1: She has been historic in so many ways, not only
Speaker 1: as a first but because of the work that she
Speaker 1: has done and um and the benefit that has resulted
Speaker 1: from her work. Okay, so Laura, let's talk a little
Speaker 1: bit about Nancy Pelosi's legacy and the work that she's
Speaker 1: done with the White House, her relationships with the different presidents.
Speaker 1: Of course, uh Donald Trump made it very clear he
Speaker 1: was happy, of course that Republicans had regained the majority
Speaker 1: in the House, but he seemed to have some specific
Speaker 1: sentiment for Nancy Pelosi. We have taken over Congress. Nancy
Speaker 1: Pelosi has been fired. Now, that was as he was
Speaker 1: announcing his own run for president and still managed to
Speaker 1: invoke Nancy Pelosi's name. Let's talk a little bit about
Speaker 1: Nancy Pelosi's relationship with Donald Trump. Well, it was a
Speaker 1: very tense relationship and involved uh in many cases one
Speaker 1: or the other then walking out of White House meetings.
Speaker 1: One of the most famous moments was uh. In May. Uh,
Speaker 1: she had a meeting with Trump on infrastructure, and and
Speaker 1: she seemed to realize that she could kind of get
Speaker 1: under his in and as a powerful woman and and
Speaker 1: kind of throw him off track. And this was one
Speaker 1: of the big examples. But at this meeting kind of
Speaker 1: devolved into a discussion about Democrat House Democrats investigations of him,
Speaker 1: and she at one point accused him of a cover
Speaker 1: up on their investigations, and um, he ended up leaving
Speaker 1: the meeting, and she wrote a letter to all House
Speaker 1: Democrats the following day that said, uh, he Trumpet had
Speaker 1: a tempered tantrum for all of us to see. So
Speaker 1: the next day he's holding a meeting or a press
Speaker 1: conference to talk about a multibillion dollar farm made package,
Speaker 1: and instead of talking about that, he spent a full
Speaker 1: half hour talking about House Democrats and how unfair it
Speaker 1: was that they were investigating him and referring to crazy Nancy.
Speaker 1: Now you had mentioned that she you know, I know
Speaker 1: a temper tantrum when I see one, because she's a
Speaker 1: mother of five grandchildren, to so many grandkids. Let me
Speaker 1: ask you about how she has managed the Democratic side
Speaker 1: of things, because she's had to hold that coalition together,
Speaker 1: she's had to hold that caucus to other between the
Speaker 1: more progressive Democrats and the more moderate or more traditional
Speaker 1: type Democrats. Making sure that that vote didn't split, that
Speaker 1: party didn't split. Not an easy task, No it's not.
Speaker 1: And there were, you know, quite a few moments, especially
Speaker 1: you know under Biden, she's had some moments where she
Speaker 1: was obviously struggling to keep progressives in line on the
Speaker 1: infrastructure package and letting that move on its own, and
Speaker 1: before trying to work on Biden's economic package, she would
Speaker 1: use a variety of tactics. You talk about her being
Speaker 1: a mother, one thing she's over the years, I've noticed
Speaker 1: sometimes you would hear about these negotiating sessions in her
Speaker 1: office with no food, all going on all night, trying
Speaker 1: to post force the conversation. But but more often than not,
Speaker 1: she wasn't operating so much as a parent or a
Speaker 1: parent figure. She was engaging in very tough tactics to
Speaker 1: consolidate her own power. And I'll point to the best
Speaker 1: One of the best examples might be what she did
Speaker 1: the moment she got in a speaker into that and
Speaker 1: seven she without the knowledge of other House members, at
Speaker 1: the very last minute, in the rules package that passes
Speaker 1: to convene the Congress, uh the first day, which is
Speaker 1: includes all kinds of routine things, there was a sentence
Speaker 1: in there saying that committee chairman could only serve for
Speaker 1: six years. And everyone voted for this without realizing that
Speaker 1: that was in there, and uh, it consolidated her power
Speaker 1: because there were these three Democratic chairman called the old bulls,
Speaker 1: John Dingle on Energy and Commerce, John Conyers on Judiciary,
Speaker 1: Charlie Rangle on Ways and Means that wanted to rifle
Speaker 1: her power and could stay in these jobs forever. And
Speaker 1: they didn't realize they voted for it, and they were furious.
Speaker 1: And then just two weeks later, John Dingle finds out
Speaker 1: that she um he's connected with the auto industry and
Speaker 1: isn't wasn't as big into climate change proposals, as some
Speaker 1: other progressive Democrats were, and he finds out that she
Speaker 1: is encroaching on his committee' jurisdiction by creating a select
Speaker 1: committee on climate change and putting Ed Markey, who's very
Speaker 1: progressive on these issues, in charge of that. So that
Speaker 1: would be her legacy and wouldn't it. How the way
Speaker 1: that she was able to use her wiles and use
Speaker 1: the other guys maybe UM mistakes, and use that to
Speaker 1: help consolidate power. That's one of them. But another example, though,
Speaker 1: there's a there's another side to which is her ability
Speaker 1: to unify them all when she really needed to. And
Speaker 1: you can credit the Democratic takeover in two thousand seven
Speaker 1: and UM again in with her keeping everyone together on
Speaker 1: in the first instance, everyone every Democrat in the House
Speaker 1: against President Bush's pushed to privatized Social Security accounts, which
Speaker 1: she could see would be politically unpopular, and he had been.
Speaker 1: He had a very high approval ratings, and by tacking
Speaker 1: this program again and again and again, it helped to
Speaker 1: drive down his approval ratings and set the stage for
Speaker 1: their campaigns. And then UH with UH the lead up
Speaker 1: to the elections, it was the repeal of Obamacare again
Speaker 1: she held all House Democrats together against that. She also
Speaker 1: changed the whole idea about being a working mother because
Speaker 1: she launched her career in politics quite late. She did.
Speaker 1: She didn't even run for Congress until her last child
Speaker 1: was going off to college. But she had been very
Speaker 1: involved in politics, attracting attention many years earlier as a
Speaker 1: leading fundraiser for her party. She um actually rose up
Speaker 1: to become the chairwoman of the California Democratic Party and
Speaker 1: later was the finance chair for the Democratic Senatorial Campaign Committee.
Speaker 1: And it was those fundraising skills that then attracted attention.
Speaker 1: She ran for Congress, but she was when she was
Speaker 1: moving into leadership. It was her ability to raise money
Speaker 1: for the party that helped her excel and become that
Speaker 1: whip in two thousand one. That set the stage for
Speaker 1: her rise. So she was fifty close to fifty forty
Speaker 1: seven at the time. And it's also worth noting, you know,
Speaker 1: women used to wear pinstripes, you know, in dressing charcoal
Speaker 1: gray and tried a look like they were similar dressed
Speaker 1: to men in the workplace. They didn't talk about their children.
Speaker 1: She always surrounded herself in uh when she was being
Speaker 1: sworn in a speaker with her grandchildren or other children
Speaker 1: of other members. UM. She would talk about being a
Speaker 1: mother often and a grandmother. She has nine grandchildren. Uh,
Speaker 1: she's wearing bright colors, pink and and and other things
Speaker 1: and just showing a more feminine side. Is that where
Speaker 1: the white pants it comes from? Is that more of
Speaker 1: a suffrage thing, that's more of a suffragette symbolism. She
Speaker 1: and she was very good at these intentional wardrobe choices,
Speaker 1: you know, the white When she showed up last week
Speaker 1: in the capital wearing the white pants suit, it created
Speaker 1: and this was the day she was going to say
Speaker 1: that whether she was going to seek the Democratic leadership
Speaker 1: position again, and everyone was wondering. They knew it was
Speaker 1: a big moment that she has that suit on the
Speaker 1: white was was worn by women in the women's movement
Speaker 1: dating back to the early nineteen hundreds. And we've seen
Speaker 1: Hillary Clinton when she accepted the nomination the Democratic presidential
Speaker 1: nomination in wearing a white pants suit. Nancy Pelosi were
Speaker 1: it UH during Trump's impeachment trials when she announced that
Speaker 1: they were going to pursue articles of impeachment. She wore
Speaker 1: them during both of Trump's UH State of the Union addresses,
Speaker 1: including the time when in UH twenty nineteen when she
Speaker 1: tore his speech in half on television. Now, Laura, one
Speaker 1: of the things that you're doing now is following the
Speaker 1: Senate very closely. We always do these interviews looking forward,
Speaker 1: looking ahead to the coming week. What are you watching
Speaker 1: for from here that's going to be coming up? It's
Speaker 1: kind of on your radar. Well. A big question is
Speaker 1: whether or not Congress is going to address the dead
Speaker 1: ceiling in the lame duck session. It's looking like maybe
Speaker 1: they won't, which will be uh setting up stage for
Speaker 1: a big conflict in UH in Because Republicans will have
Speaker 1: the House, there's still the opportunity if Democrats wanted to
Speaker 1: while they still have control, to try to raise it. Now,
Speaker 1: Bloomberg News congressional reporter Laura lit Van, thank you so
Speaker 1: much for shedding some light on the legacy of Nancy
Speaker 1: Pelosi and what's going to be coming up in Congress.
Speaker 1: We appreciate it. That's what's going on in the nation's capital.
Speaker 1: For more of our political news coverage, you can tune
Speaker 1: into Balance of Power with David weston weekdays at noon,
Speaker 1: Wall Street Time and Sound On with Joe Matthew weekdays
Speaker 1: at five pm Wall Street Time. That's here on Bloomberg Radio.
Speaker 1: I'm Amy Morris and this is Bloomberg John. Amy Morris
Speaker 1: reporting from our Bloomberg room in Washington. Thanks Amy, And
Speaker 1: that does it for it this edition of Bloomberg Daybreak Weekend.
Speaker 1: Join us again Monday morning at five am Wall Street
Speaker 1: Time for the latest on markets overseas and news you
Speaker 1: need to start your day. I'm John Tucker and this
Speaker 1: is Bloomberg