1 00:00:00,880 --> 00:00:03,760 Speaker 1: This is Bloomberg Daybreak Weekend, our global look at the 2 00:00:03,760 --> 00:00:06,640 Speaker 1: top stories in the coming week from our Daybreak anchors 3 00:00:06,640 --> 00:00:09,040 Speaker 1: all around the world, and straight ahead on the program. 4 00:00:09,119 --> 00:00:12,760 Speaker 1: A big week coming for US retailers. I'm Tom Busby 5 00:00:12,880 --> 00:00:13,440 Speaker 1: in New York. 6 00:00:13,480 --> 00:00:16,040 Speaker 2: I'm Stephen Carolyn London, where a major business conference could 7 00:00:16,040 --> 00:00:18,320 Speaker 2: see tough questions asked of the Bank of England, governor, 8 00:00:18,400 --> 00:00:20,040 Speaker 2: the government and the man who wants to be the 9 00:00:20,160 --> 00:00:21,320 Speaker 2: UK's next Prime Minister. 10 00:00:21,520 --> 00:00:24,600 Speaker 3: I'm Brian Curtis in Hong Kong. The Chinese economic data 11 00:00:24,640 --> 00:00:27,280 Speaker 3: have been all over the map. Are we recovering there 12 00:00:27,640 --> 00:00:28,560 Speaker 3: or falling back? 13 00:00:28,680 --> 00:00:31,240 Speaker 4: I'm Kaylee Lyons in Washington, where we have not one 14 00:00:31,360 --> 00:00:34,160 Speaker 4: but two bank failure hearings on death in the Senate. 15 00:00:37,000 --> 00:00:40,879 Speaker 5: That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 16 00:00:40,960 --> 00:00:44,400 Speaker 5: Eleve Them free own New York, bloombergon ninety nine to one, Washington, 17 00:00:44,479 --> 00:00:48,120 Speaker 5: d C Bloomberg one oh six one, Boston, Bloomberg nine sixty, 18 00:00:48,240 --> 00:00:52,720 Speaker 5: San Francisco, DAB Digital Radio London, Sirius XM one nineteen 19 00:00:52,960 --> 00:00:55,680 Speaker 5: and around the world on Bloomberg Radio dot com and 20 00:00:55,760 --> 00:00:57,360 Speaker 5: via the Bloomberg Business App. 21 00:00:58,720 --> 00:01:00,680 Speaker 1: Well, Good day to you. I'm Tom Bus. We begin 22 00:01:00,760 --> 00:01:03,760 Speaker 1: today's program with the state of the US retail industry, 23 00:01:03,800 --> 00:01:06,720 Speaker 1: with earnings this week from some of the sector's biggest names. 24 00:01:07,120 --> 00:01:09,600 Speaker 1: Two thirds of the economy is consumer spending, and a 25 00:01:09,640 --> 00:01:12,760 Speaker 1: big chunk of that is spent at retailers. But because 26 00:01:12,800 --> 00:01:16,160 Speaker 1: of stubbornly high inflation, consumers are now paying the highest 27 00:01:16,160 --> 00:01:20,640 Speaker 1: prices ever, as retailers pass along higher costs, also borrowing costs, 28 00:01:20,680 --> 00:01:23,440 Speaker 1: including credit card rates the highest in sixteen years. And 29 00:01:23,560 --> 00:01:26,560 Speaker 1: joining us now for how that is affecting those chains. 30 00:01:26,920 --> 00:01:30,080 Speaker 1: Bloomberg retail reporter Brendan Case. Brendan, thank you so much 31 00:01:30,080 --> 00:01:30,559 Speaker 1: for being. 32 00:01:30,400 --> 00:01:32,360 Speaker 6: Here, Thanks for having me all right now, before. 33 00:01:32,160 --> 00:01:34,240 Speaker 1: We look ahead at what you expect to see from 34 00:01:34,280 --> 00:01:38,039 Speaker 1: those individual retailers, let's talk about the industry as a whole, 35 00:01:38,520 --> 00:01:41,880 Speaker 1: its challenges, as well as what's going pretty well. You know, 36 00:01:41,959 --> 00:01:44,000 Speaker 1: retail sales. They fell for a second month in a 37 00:01:44,080 --> 00:01:46,640 Speaker 1: row in March. Is that an indication that those high 38 00:01:46,640 --> 00:01:49,800 Speaker 1: prices and higher interest rates have really slowed spending. 39 00:01:50,160 --> 00:01:53,320 Speaker 6: Yes, it is, and that's pretty much in line with 40 00:01:53,440 --> 00:01:57,000 Speaker 6: what the big retailers have been expecting. Both Target and 41 00:01:57,080 --> 00:02:02,160 Speaker 6: Walmart issued profit forecasts and their outlooks for comparable sales 42 00:02:02,200 --> 00:02:06,640 Speaker 6: this year back in February, and both companies came in 43 00:02:07,600 --> 00:02:11,040 Speaker 6: pretty well below wall streets expectations for a lot of 44 00:02:11,040 --> 00:02:13,680 Speaker 6: those key metrics. And if you look at what they're 45 00:02:13,720 --> 00:02:19,400 Speaker 6: expecting in terms of comparable sales and in terms of revenue, 46 00:02:20,240 --> 00:02:25,560 Speaker 6: what you're seeing is a pretty muted outlook with you know, 47 00:02:26,440 --> 00:02:30,560 Speaker 6: consumer spending at least as they see it, poised to 48 00:02:30,639 --> 00:02:33,600 Speaker 6: sort of have trouble keeping up with inflation, and so 49 00:02:33,880 --> 00:02:38,200 Speaker 6: in real terms kind of looking for flat to maybe 50 00:02:38,240 --> 00:02:42,639 Speaker 6: even slightly down, and so you know, both companies are 51 00:02:42,720 --> 00:02:46,720 Speaker 6: kind of setting expectations in a pretty cautious way for 52 00:02:46,760 --> 00:02:49,600 Speaker 6: this year, and I do think that that reflects some 53 00:02:50,320 --> 00:02:52,240 Speaker 6: weakness and consumer spending. 54 00:02:52,919 --> 00:02:55,799 Speaker 1: And speaking of which a parrel sales, they fell for 55 00:02:56,040 --> 00:02:59,079 Speaker 1: the first couple of weeks of April versus March five 56 00:02:59,080 --> 00:03:02,720 Speaker 1: point seven percent versus six point nine percent as easter 57 00:03:02,840 --> 00:03:05,520 Speaker 1: warmer weather early in the month, just not enough to 58 00:03:05,520 --> 00:03:08,720 Speaker 1: boost people into the malls and into stores. Transactions down 59 00:03:08,760 --> 00:03:11,359 Speaker 1: more than five percent average amount slipped. This is all 60 00:03:11,360 --> 00:03:14,119 Speaker 1: five served point of sales data. But not looking good, 61 00:03:14,200 --> 00:03:14,440 Speaker 1: is it? 62 00:03:15,000 --> 00:03:18,400 Speaker 6: Yeah, that's exactly right. And this gets us into one 63 00:03:18,440 --> 00:03:22,040 Speaker 6: of the big stories from last year that is certainly 64 00:03:22,080 --> 00:03:25,160 Speaker 6: going to carry over to this year. And obviously, looking 65 00:03:25,160 --> 00:03:27,760 Speaker 6: at apparel sales, you know, across the board, we're going 66 00:03:27,840 --> 00:03:32,040 Speaker 6: to see varying results from the apparel specialists, depending on 67 00:03:32,560 --> 00:03:34,520 Speaker 6: each particular company. But if you look at the big 68 00:03:34,520 --> 00:03:39,000 Speaker 6: mass market retailers like Walmart and Target, last year, apparel 69 00:03:39,240 --> 00:03:42,720 Speaker 6: was a real source spot in terms of the goods 70 00:03:43,120 --> 00:03:45,800 Speaker 6: that they couldn't move and they had to discount pretty heavily. 71 00:03:45,840 --> 00:03:47,480 Speaker 6: And if you just sort of take a step back, 72 00:03:48,040 --> 00:03:51,160 Speaker 6: what happened last year is that both of those companies 73 00:03:51,200 --> 00:03:56,200 Speaker 6: and many others misjudged a shift in demand pretty dramatically, 74 00:03:56,400 --> 00:04:01,560 Speaker 6: and the shift was away from perchase of discretionary goods, 75 00:04:01,600 --> 00:04:07,160 Speaker 6: including apparel, but also electronics, patio furniture, kitchen appliances. People 76 00:04:07,200 --> 00:04:11,840 Speaker 6: started spending a lot less on that than before, and 77 00:04:12,040 --> 00:04:16,800 Speaker 6: they started spending more on groceries, which partly reflected price increases. 78 00:04:16,800 --> 00:04:20,040 Speaker 6: They were forced to spend more on the essentials, and 79 00:04:20,080 --> 00:04:25,120 Speaker 6: it also partly reflected greater spending on services with restaurants 80 00:04:25,160 --> 00:04:28,960 Speaker 6: and travel kind of coming back as the pandemic was abating, 81 00:04:29,520 --> 00:04:32,560 Speaker 6: and so looking at apparel, that is going to be 82 00:04:32,720 --> 00:04:35,960 Speaker 6: another area this year where probably a lot of consumers 83 00:04:36,000 --> 00:04:38,080 Speaker 6: are going to say, you know, maybe I can wait 84 00:04:38,120 --> 00:04:41,720 Speaker 6: another few months before buying that pair of genes or 85 00:04:41,760 --> 00:04:45,480 Speaker 6: buying that blouse. Apparel is going to be a weak spot, 86 00:04:45,560 --> 00:04:50,720 Speaker 6: and probably so will electronics and all those other kind 87 00:04:50,760 --> 00:04:53,880 Speaker 6: of home goods that people spent so heavily on in 88 00:04:53,920 --> 00:04:57,800 Speaker 6: the early stages of the pandemic and now they either 89 00:04:57,880 --> 00:05:00,960 Speaker 6: don't need those goods as much or they're kind of 90 00:05:00,960 --> 00:05:04,760 Speaker 6: willing to wait a while before before buying them. 91 00:05:04,800 --> 00:05:06,800 Speaker 1: All right, well, Brenda, let's talk about some of the 92 00:05:06,839 --> 00:05:09,600 Speaker 1: individual companies that are reporting this week to kick things 93 00:05:09,600 --> 00:05:12,400 Speaker 1: off in the sector. And up on Tuesday is Dow 94 00:05:12,480 --> 00:05:16,480 Speaker 1: Component Home Depot. Now spring the busiest season of the 95 00:05:16,560 --> 00:05:18,640 Speaker 1: year for the chain, are we expecting to hear that 96 00:05:18,760 --> 00:05:22,440 Speaker 1: people are still spending on those home improvement projects, upgrading 97 00:05:22,480 --> 00:05:25,760 Speaker 1: their lawns, doing the driveway? I mean, are we looking 98 00:05:25,760 --> 00:05:26,799 Speaker 1: good at Home Depot? 99 00:05:27,279 --> 00:05:29,520 Speaker 6: You know, it's going to be a really interesting test. 100 00:05:29,720 --> 00:05:34,600 Speaker 6: There were some indications in the last report that home 101 00:05:34,640 --> 00:05:39,240 Speaker 6: improvement spending was showing some weakness, and so the first 102 00:05:39,240 --> 00:05:42,360 Speaker 6: thing we're going to be looking for is any evidence 103 00:05:42,440 --> 00:05:49,479 Speaker 6: that that trend is continuing or worsening. Now, sales themselves 104 00:05:49,560 --> 00:05:53,000 Speaker 6: have actually done okay thanks to higher prices, but the 105 00:05:53,120 --> 00:05:55,080 Speaker 6: unit sales have been down, and so in other words, 106 00:05:55,080 --> 00:05:58,360 Speaker 6: people are buying fewer things, but they're paying more for them. 107 00:05:59,080 --> 00:06:02,679 Speaker 6: And then one of the big questions to watch with 108 00:06:02,680 --> 00:06:06,160 Speaker 6: with Home Depot, especially in terms of the commentary of 109 00:06:06,200 --> 00:06:09,280 Speaker 6: the executives, is kind of what they're seeing in the 110 00:06:09,400 --> 00:06:13,960 Speaker 6: US housing market and how that's filtering through to their results. Traditionally, 111 00:06:14,640 --> 00:06:17,440 Speaker 6: their sales, at least in the eyes of many analysts, 112 00:06:17,520 --> 00:06:21,359 Speaker 6: have been tied to US home sales, which have been 113 00:06:21,600 --> 00:06:25,760 Speaker 6: very choppy but you know, clearly showing some signs of weakness. 114 00:06:26,200 --> 00:06:28,520 Speaker 6: At the same time, the company has been at pains 115 00:06:28,520 --> 00:06:33,080 Speaker 6: to emphasize recently that it's home prices that can justify 116 00:06:33,080 --> 00:06:34,800 Speaker 6: a lot of spending in terms of like do it 117 00:06:34,839 --> 00:06:39,760 Speaker 6: yourself home improvement projects, and so what they say about that, 118 00:06:40,160 --> 00:06:42,039 Speaker 6: what the latest trends are they're seeing in terms of 119 00:06:42,040 --> 00:06:45,240 Speaker 6: their drivers of sales, especially related to the housing market. 120 00:06:45,320 --> 00:06:47,680 Speaker 6: That'll be a big watch item for Wall Street and 121 00:06:47,960 --> 00:06:48,520 Speaker 6: for the rest of. 122 00:06:48,560 --> 00:06:52,320 Speaker 1: US Wednesday is target among I think among the most 123 00:06:52,440 --> 00:06:55,080 Speaker 1: nimble of retailers, and what are we expecting there, and 124 00:06:55,480 --> 00:06:58,719 Speaker 1: particularly I know, the emphasis on groceries. They've moved things 125 00:06:58,760 --> 00:07:01,000 Speaker 1: around in the store near you know, to really put 126 00:07:01,040 --> 00:07:03,839 Speaker 1: an emphasis on that part of their business. 127 00:07:04,160 --> 00:07:06,120 Speaker 6: Yeah, very much so. And what they're trying to do 128 00:07:06,160 --> 00:07:09,600 Speaker 6: there is to tap into the increased spending on just 129 00:07:09,640 --> 00:07:13,480 Speaker 6: the basic goods, kind of put those, put those very 130 00:07:13,560 --> 00:07:17,160 Speaker 6: much front of mind for consumers, and harvest as much 131 00:07:17,160 --> 00:07:20,960 Speaker 6: of that spending on the basics as they can. You know, 132 00:07:21,040 --> 00:07:24,280 Speaker 6: for Target, they get about twenty percent of their sales 133 00:07:24,360 --> 00:07:27,840 Speaker 6: from food and beverage. If you define grocery a little more, 134 00:07:28,000 --> 00:07:31,240 Speaker 6: a little more broadly to include you know, non consumable 135 00:07:31,240 --> 00:07:34,120 Speaker 6: items that were you know, constantly buying paper products, you know, 136 00:07:34,160 --> 00:07:37,800 Speaker 6: cleaning supplies. You get to a higher percentage of their sales, 137 00:07:37,840 --> 00:07:41,080 Speaker 6: but it's still well below fifty percent, and so they're 138 00:07:41,080 --> 00:07:45,400 Speaker 6: trying to reposition themselves to serve that demand and to 139 00:07:45,480 --> 00:07:48,600 Speaker 6: sort of adjust to the fact that a lot of 140 00:07:48,640 --> 00:07:52,960 Speaker 6: their signature goods or sort of their signature strength over 141 00:07:53,000 --> 00:07:56,400 Speaker 6: the years has been in the more discretionary items. You know, 142 00:07:56,440 --> 00:07:59,520 Speaker 6: they've got the reputation for the you know, the cheap 143 00:07:59,640 --> 00:08:02,960 Speaker 6: chic kind of positioning in the market. They get a 144 00:08:03,000 --> 00:08:05,720 Speaker 6: lot of people into the stores looking at clothes, looking 145 00:08:05,760 --> 00:08:09,120 Speaker 6: at you know, bedlinens, you name it. That's where there 146 00:08:09,200 --> 00:08:12,080 Speaker 6: was a lot of weakness in sales last year, and 147 00:08:12,840 --> 00:08:17,680 Speaker 6: probably that weakness will continue, especially in the earlier part 148 00:08:17,720 --> 00:08:21,480 Speaker 6: of this year. It gets a little cloudier as we 149 00:08:21,600 --> 00:08:24,320 Speaker 6: get into the second half of the year. We'll just 150 00:08:24,360 --> 00:08:28,120 Speaker 6: have to see. But Target will certainly be wanting to 151 00:08:28,120 --> 00:08:32,640 Speaker 6: emphasize it's food and beverage and grocery sales, but it'll 152 00:08:32,640 --> 00:08:38,439 Speaker 6: be a big question mark what their discretionary goods sales 153 00:08:38,679 --> 00:08:41,439 Speaker 6: look like. And you know, last time we heard from 154 00:08:41,440 --> 00:08:44,520 Speaker 6: them in February, the CFO just came right out and 155 00:08:44,559 --> 00:08:46,520 Speaker 6: said that the biggest question mark for them is just 156 00:08:46,640 --> 00:08:48,480 Speaker 6: the path of the US consumer. 157 00:08:48,679 --> 00:08:50,760 Speaker 1: And we could say the same thing about the biggie 158 00:08:51,040 --> 00:08:54,000 Speaker 1: Walmart earnings out on Thursday. Is it going to be 159 00:08:54,080 --> 00:08:54,880 Speaker 1: the same as Target? 160 00:08:54,960 --> 00:08:55,240 Speaker 3: You think? 161 00:08:55,360 --> 00:08:57,240 Speaker 6: And then you get the big one, and I think 162 00:08:57,280 --> 00:09:00,480 Speaker 6: the dynamics there are a little different. Look at the 163 00:09:00,600 --> 00:09:07,480 Speaker 6: last two really three quarters for Walmart, they're comparable sales. 164 00:09:07,720 --> 00:09:10,840 Speaker 6: They've just been hitting the cover off the ball, and 165 00:09:10,920 --> 00:09:15,600 Speaker 6: a big part of the demand they've been getting has 166 00:09:15,640 --> 00:09:18,800 Speaker 6: been coming from wealthier consumers, people with household incomes of 167 00:09:18,840 --> 00:09:21,679 Speaker 6: more than one hundred thousand dollars. And what you're seeing 168 00:09:21,720 --> 00:09:27,040 Speaker 6: there is you're seeing Walmart's strength in grocery, which accounts 169 00:09:27,080 --> 00:09:30,800 Speaker 6: for you know, fifty five percent of their total sales. 170 00:09:32,080 --> 00:09:38,840 Speaker 6: You're seeing their lower income customers, middle income customers, you know, 171 00:09:38,960 --> 00:09:41,840 Speaker 6: spending more on those goods simply because they have to 172 00:09:42,120 --> 00:09:45,400 Speaker 6: prices rising, and then you're seeing some of the higher 173 00:09:45,440 --> 00:09:50,319 Speaker 6: income households switching over to Walmart in search of bargains, 174 00:09:50,360 --> 00:09:54,320 Speaker 6: search of lower prices. Despite that strength the last few quarters, 175 00:09:54,840 --> 00:09:58,920 Speaker 6: Walmart came out with a pretty sober outlook for sales 176 00:09:59,120 --> 00:10:03,439 Speaker 6: and co perable sales this year. There was some debate 177 00:10:04,000 --> 00:10:08,040 Speaker 6: among analysts about, you know, are they really that worried 178 00:10:08,080 --> 00:10:12,560 Speaker 6: about consumer spending after so much strength recently, you know, 179 00:10:12,679 --> 00:10:14,040 Speaker 6: or could it be more a case where they just 180 00:10:14,080 --> 00:10:15,680 Speaker 6: wanted to sort of err on the side of caution 181 00:10:16,040 --> 00:10:19,360 Speaker 6: if you ask, If you ask the company, they kind 182 00:10:19,360 --> 00:10:22,640 Speaker 6: of echo what Target said about uncertainty, And you know, 183 00:10:22,720 --> 00:10:25,719 Speaker 6: they've they've said that it's really hard to predict right 184 00:10:25,760 --> 00:10:29,439 Speaker 6: now and they want to be realistic with their assumptions. 185 00:10:29,440 --> 00:10:31,560 Speaker 6: But what we're going to see next week will be 186 00:10:31,600 --> 00:10:34,000 Speaker 6: a big update on that, and we'll also see whether 187 00:10:34,080 --> 00:10:38,920 Speaker 6: their first quarter results are more in line with the 188 00:10:38,960 --> 00:10:41,280 Speaker 6: strengths they've had the last few quarters, or if there's 189 00:10:41,280 --> 00:10:43,880 Speaker 6: a noticeable shift and you know, you see a lot 190 00:10:43,920 --> 00:10:45,400 Speaker 6: of a lot more weakness creeping in. 191 00:10:45,640 --> 00:10:48,160 Speaker 1: Oh boy, a lot to look forward to. Brendan, thank 192 00:10:48,160 --> 00:10:51,320 Speaker 1: you so much. That's Bloomberg Retail reporter Brendan Case. And 193 00:10:51,400 --> 00:10:55,000 Speaker 1: coming up on Bloomberg day Break weekend, big annual gatherings 194 00:10:55,040 --> 00:10:59,400 Speaker 1: of movers and shakers on the UK political and economic scenes. 195 00:10:59,480 --> 00:11:08,600 Speaker 1: I'm Tom and this is Bloomberg. This is Bloomberg Daybreak Weekend, 196 00:11:08,720 --> 00:11:11,199 Speaker 1: our global look ahead at the top stories for investors 197 00:11:11,200 --> 00:11:13,600 Speaker 1: in the coming week. I'm Tom Busby in New York. 198 00:11:13,640 --> 00:11:16,320 Speaker 1: And up later in our program hearings on what went 199 00:11:16,360 --> 00:11:19,800 Speaker 1: wrong at US regional banks. But first, in the UK, 200 00:11:19,960 --> 00:11:22,679 Speaker 1: political and business leaders will be gathering for the annual 201 00:11:22,679 --> 00:11:25,880 Speaker 1: conference of the British Chambers of Commerce. They'll include the 202 00:11:25,880 --> 00:11:27,920 Speaker 1: Governor of the Bank of England and the man who 203 00:11:27,920 --> 00:11:31,240 Speaker 1: could be the next Prime Minister for more. Lets head 204 00:11:31,280 --> 00:11:34,760 Speaker 1: to London and bring in Bloomberg Daybreak Europe banker Stephen Carroll. 205 00:11:35,240 --> 00:11:37,439 Speaker 2: Tom. This event is happening at a time when the 206 00:11:37,520 --> 00:11:40,959 Speaker 2: UK economy is facing all kinds of challenges. Inflation is 207 00:11:41,000 --> 00:11:44,120 Speaker 2: still in double digits, growth as flatlined, and the possibility 208 00:11:44,280 --> 00:11:47,439 Speaker 2: of a recession remains close. All the more reason that 209 00:11:47,480 --> 00:11:49,520 Speaker 2: businesses will want to hear from the likes of Andrew 210 00:11:49,520 --> 00:11:51,880 Speaker 2: Bailey from the Bank of England and the Opposition leader 211 00:11:52,040 --> 00:11:54,400 Speaker 2: cair Starmer as well to discuss what we should expect 212 00:11:54,440 --> 00:11:57,240 Speaker 2: from the British Chambers of Commerce event. Is our UK 213 00:11:57,280 --> 00:12:01,680 Speaker 2: correspondent Lizzyburden, who'll be covering it for Bloomberg TV and Radio. Lizzie, 214 00:12:01,679 --> 00:12:03,840 Speaker 2: this is an organization that represents tens of thousands of 215 00:12:03,840 --> 00:12:06,800 Speaker 2: firms in Britain, all sorts of sizes. Set the scene 216 00:12:06,800 --> 00:12:08,839 Speaker 2: for us about what the big issues are that they'll 217 00:12:08,840 --> 00:12:10,640 Speaker 2: want to be discussing at this event. 218 00:12:11,240 --> 00:12:13,800 Speaker 7: Well, Stephen, the consensus among business leaders that I speak 219 00:12:13,840 --> 00:12:16,200 Speaker 7: to is that the one thing Liz trust got right 220 00:12:16,440 --> 00:12:19,040 Speaker 7: is that the UK needs better growth. So part of 221 00:12:19,080 --> 00:12:21,240 Speaker 7: that does come down to plugging the holes in the 222 00:12:21,320 --> 00:12:24,199 Speaker 7: labor market. Of course, in the latest budget, the Chancellor 223 00:12:24,240 --> 00:12:28,559 Speaker 7: announced the childcare reforms the pension reforms, both to try 224 00:12:28,559 --> 00:12:31,800 Speaker 7: to entice people back into the labor market. The question 225 00:12:31,960 --> 00:12:35,640 Speaker 7: is are they enough to reduce the tightness in the 226 00:12:35,679 --> 00:12:37,960 Speaker 7: labor market and that to have an impact on inflation, 227 00:12:38,000 --> 00:12:40,280 Speaker 7: which of course we know is still in double digits 228 00:12:40,280 --> 00:12:43,640 Speaker 7: here in the UK. They may also businesses want the 229 00:12:43,720 --> 00:12:46,240 Speaker 7: Chancellor to loosen immigration rules more. 230 00:12:46,400 --> 00:12:47,040 Speaker 8: Of course, it's a. 231 00:12:47,000 --> 00:12:52,240 Speaker 7: Toxic issue post Brexit, and at the CBI annual conference 232 00:12:52,679 --> 00:12:55,960 Speaker 7: in the autumn last year, the Opposition leader Kir Starmer 233 00:12:56,040 --> 00:12:59,720 Speaker 7: actually was talking tougher on immigration, so it'll be interesting 234 00:12:59,720 --> 00:13:04,800 Speaker 7: to see see how the two parties frame that one. 235 00:13:05,360 --> 00:13:05,760 Speaker 6: Now. 236 00:13:06,240 --> 00:13:08,839 Speaker 7: The other question is how to make the UK more investible. 237 00:13:08,880 --> 00:13:11,959 Speaker 7: Of course recently we've heard the Financial Conduct Authority looking 238 00:13:12,000 --> 00:13:16,440 Speaker 7: at changing listing requirements for the UK. Really the question 239 00:13:16,559 --> 00:13:19,720 Speaker 7: is how do you help businesses grow and then keep 240 00:13:19,760 --> 00:13:23,080 Speaker 7: them here once they've reached a certain size, because it's 241 00:13:23,120 --> 00:13:25,280 Speaker 7: been a real blow for the government to lose arm 242 00:13:25,480 --> 00:13:28,720 Speaker 7: CRH and Flutter all to other bosses. 243 00:13:28,840 --> 00:13:31,040 Speaker 2: You mentioned the CBI conference as also this question of 244 00:13:31,040 --> 00:13:33,640 Speaker 2: the sort of beauty pageant that politicians have at events 245 00:13:33,720 --> 00:13:35,360 Speaker 2: like this, where they want to show up and be 246 00:13:35,440 --> 00:13:38,439 Speaker 2: popular and liked. And because we are in a very 247 00:13:38,520 --> 00:13:40,960 Speaker 2: long countdown to a general election in the UK, that's 248 00:13:41,000 --> 00:13:44,680 Speaker 2: a really important pitch for Keir Starmer, the Opposition leader, 249 00:13:45,160 --> 00:13:47,520 Speaker 2: because he really wants to be able to confirm his 250 00:13:47,640 --> 00:13:50,480 Speaker 2: pitch as being, you know, Labor being a party that's 251 00:13:50,520 --> 00:13:52,240 Speaker 2: going to be a pro business. 252 00:13:52,360 --> 00:13:52,560 Speaker 6: Yeah. 253 00:13:52,559 --> 00:13:55,200 Speaker 7: We don't have a date for the next election at 254 00:13:55,200 --> 00:13:57,640 Speaker 7: the moment, we're expecting it to be at the latest 255 00:13:57,760 --> 00:14:02,400 Speaker 7: autumn twenty twenty four. Businesses want are specifics. They want 256 00:14:02,400 --> 00:14:05,520 Speaker 7: things that are temporary to be made permanent so that 257 00:14:05,559 --> 00:14:09,600 Speaker 7: they can make that investment. In particular, they want to 258 00:14:09,640 --> 00:14:12,480 Speaker 7: know what's coming in terms of tax cuts. That's going 259 00:14:12,520 --> 00:14:14,599 Speaker 7: to be a key battleground in the run up to 260 00:14:14,640 --> 00:14:18,440 Speaker 7: the next election. Can the government afford to cut taxes? 261 00:14:18,559 --> 00:14:22,080 Speaker 7: Where is it going to make tax cuts? Labor really 262 00:14:22,160 --> 00:14:24,240 Speaker 7: needs to present itself, as you say, as the party 263 00:14:24,280 --> 00:14:27,280 Speaker 7: of businesses. I do think as well that it's significant 264 00:14:27,360 --> 00:14:31,040 Speaker 7: that Labor is sending its leader, Kir Starmer. The government 265 00:14:31,240 --> 00:14:34,200 Speaker 7: so far we know, is only sending a Treasury minister. 266 00:14:34,320 --> 00:14:37,280 Speaker 7: So in terms of signaling how important business is, it 267 00:14:37,360 --> 00:14:40,400 Speaker 7: looks like Kiir Starmer's taking it a bit more seriously. 268 00:14:40,640 --> 00:14:40,880 Speaker 1: Yeah. 269 00:14:40,920 --> 00:14:43,360 Speaker 2: Interesting. Now industrial policy is something on the minds at 270 00:14:43,480 --> 00:14:46,720 Speaker 2: least some of the businesses at this conference. On Bloomberg Radio, 271 00:14:46,760 --> 00:14:49,360 Speaker 2: we've been discussing this with Ben Fletcher from make UK, 272 00:14:49,520 --> 00:14:55,320 Speaker 2: which represents manufacturers here speaking to Caroline Hepger on Bloomberg Radio, 273 00:14:55,680 --> 00:14:58,960 Speaker 2: and they're called for an independent inquiry into the British 274 00:14:59,000 --> 00:15:00,600 Speaker 2: government's industrial policy. 275 00:15:01,160 --> 00:15:02,000 Speaker 8: The things I think. 276 00:15:01,840 --> 00:15:04,320 Speaker 9: That is really important is that we look around the 277 00:15:04,320 --> 00:15:06,680 Speaker 9: world and see which countries do it better than us. 278 00:15:06,880 --> 00:15:08,440 Speaker 8: And I think if you look at Germany, if you 279 00:15:08,480 --> 00:15:11,080 Speaker 8: look at France, you've got a very very long term 280 00:15:11,080 --> 00:15:11,840 Speaker 8: sustained plan. 281 00:15:11,880 --> 00:15:14,080 Speaker 9: If you look at America, you look at a number 282 00:15:14,080 --> 00:15:16,520 Speaker 9: of places in the Far East, they've all got really 283 00:15:16,520 --> 00:15:19,160 Speaker 9: clear plans and they've all got a real investment in 284 00:15:19,240 --> 00:15:22,960 Speaker 9: skills and a focus on what this is going to 285 00:15:22,960 --> 00:15:24,400 Speaker 9: achieve over the next ten years. 286 00:15:24,640 --> 00:15:26,520 Speaker 8: And if you compare that to where we are now. 287 00:15:26,840 --> 00:15:29,280 Speaker 9: Jeremy Hunt made some really positive steps forward in the 288 00:15:29,280 --> 00:15:33,440 Speaker 9: budget last autumn, some clearly defined areas that he wants 289 00:15:33,480 --> 00:15:36,400 Speaker 9: to invest in, but we really need to scale up 290 00:15:36,400 --> 00:15:38,280 Speaker 9: from that and we need a huge amount more flesh 291 00:15:38,280 --> 00:15:39,560 Speaker 9: on the bone in terms of detail. 292 00:15:39,640 --> 00:15:41,280 Speaker 10: What of the Labor Party, I mean, we have an 293 00:15:41,320 --> 00:15:45,200 Speaker 10: election general election looming that not that long away, and 294 00:15:45,240 --> 00:15:48,360 Speaker 10: that the polling is very positive for the Labor Party 295 00:15:48,400 --> 00:15:50,640 Speaker 10: if they were to get in. Do you think this 296 00:15:50,720 --> 00:15:52,120 Speaker 10: is something that would appeal to them. 297 00:15:52,560 --> 00:15:54,800 Speaker 8: We certainly hope that both parties look at it seriously 298 00:15:54,840 --> 00:15:55,720 Speaker 8: and take it seriously. 299 00:15:55,800 --> 00:15:58,680 Speaker 9: To directly address your question, you know, we've had some 300 00:15:58,760 --> 00:16:02,240 Speaker 9: positive signs coming up. The Sounac government and Hunt's budget 301 00:16:02,640 --> 00:16:05,640 Speaker 9: set out that ambition, and we strongly welcome that. The 302 00:16:05,680 --> 00:16:09,600 Speaker 9: opposition party's labor in particular has said that an industrial 303 00:16:09,640 --> 00:16:12,160 Speaker 9: strategy is critical and they would want to. 304 00:16:12,120 --> 00:16:14,040 Speaker 8: Produce one and deliver one in government. 305 00:16:14,120 --> 00:16:16,320 Speaker 9: What we're trying to do, I think, is to be 306 00:16:16,360 --> 00:16:18,320 Speaker 9: a bit of a catalyst for all of that thinking. 307 00:16:18,800 --> 00:16:21,040 Speaker 8: It's really critical that we get this right. 308 00:16:21,600 --> 00:16:24,080 Speaker 9: We've learned some lessons from COVID I think about the 309 00:16:24,120 --> 00:16:26,400 Speaker 9: impact if we don't have a lot. 310 00:16:26,280 --> 00:16:27,560 Speaker 8: Of domestic capability. 311 00:16:27,600 --> 00:16:30,360 Speaker 9: We're seeing the focus on net zero, We're seeing the 312 00:16:30,360 --> 00:16:34,440 Speaker 9: focus on industrial growth in our big competitors, and at 313 00:16:34,480 --> 00:16:38,400 Speaker 9: the moment our plan isn't fully functional, isn't fully worked, 314 00:16:38,440 --> 00:16:41,600 Speaker 9: and isn't fully resourced. So what we see is a 315 00:16:41,600 --> 00:16:44,480 Speaker 9: receptive audience on both sides of the house. What really 316 00:16:44,680 --> 00:16:46,240 Speaker 9: we want to do is to put a turbo charger 317 00:16:46,360 --> 00:16:48,880 Speaker 9: underneath that thinking and get people to realize that this 318 00:16:48,960 --> 00:16:50,880 Speaker 9: isn't something you can just talk about you really have 319 00:16:50,960 --> 00:16:51,240 Speaker 9: to do. 320 00:16:51,400 --> 00:16:51,480 Speaker 5: So. 321 00:16:51,560 --> 00:16:55,880 Speaker 2: That was Ben Fletcher from Make UK speaking to Caroline 322 00:16:55,920 --> 00:16:59,600 Speaker 2: Hepger on Bloomberg Radio. The labor market, Lizzie's also going 323 00:16:59,640 --> 00:17:01,400 Speaker 2: to be in front in the coming days, we're going 324 00:17:01,440 --> 00:17:04,680 Speaker 2: to get an update on wages and unemployment for the UK. 325 00:17:04,760 --> 00:17:05,879 Speaker 2: What should we be watching out for. 326 00:17:06,240 --> 00:17:08,840 Speaker 7: Tightness in the labor market has been driving up inflation, 327 00:17:08,960 --> 00:17:11,359 Speaker 7: so that's why these numbers are so crucial for the 328 00:17:11,400 --> 00:17:13,639 Speaker 7: Treasury as well as the Bank of England. In the 329 00:17:13,720 --> 00:17:17,280 Speaker 7: last data it was tighter than expected. People were still 330 00:17:17,320 --> 00:17:20,040 Speaker 7: demanding wage rises to try to keep up with inflation, 331 00:17:20,240 --> 00:17:23,520 Speaker 7: but then inflation has been swallowing up wage rises in 332 00:17:23,600 --> 00:17:27,119 Speaker 7: real terms. This data is for March and April. I 333 00:17:27,160 --> 00:17:29,359 Speaker 7: would really keep an eye on the employment rate, the 334 00:17:29,440 --> 00:17:33,040 Speaker 7: unemployment rate, I should say, wage growth, and the number 335 00:17:33,040 --> 00:17:35,639 Speaker 7: of days that have been lost to strike action, because 336 00:17:35,640 --> 00:17:38,280 Speaker 7: we know that in the latest GDP data, which of 337 00:17:38,320 --> 00:17:41,840 Speaker 7: course you said, growth had flatlined. One of the big 338 00:17:41,880 --> 00:17:46,160 Speaker 7: reasons was because strikes were weighing on services output. And finally, 339 00:17:46,400 --> 00:17:49,920 Speaker 7: looking at economic inactivity because as I say, we've got 340 00:17:49,920 --> 00:17:52,760 Speaker 7: this huge these holes in the labor market that need 341 00:17:52,800 --> 00:17:53,320 Speaker 7: to be plugged. 342 00:17:53,440 --> 00:17:56,480 Speaker 2: Yeah, the tightness in the labor market is helping those 343 00:17:56,480 --> 00:17:59,200 Speaker 2: who are changing jobs in England, though they're securing pay 344 00:17:59,240 --> 00:18:01,480 Speaker 2: rises of varient ten percent, according to data from the 345 00:18:01,480 --> 00:18:06,000 Speaker 2: recruitment company Read analyzed by Bloomberg. Here's Read's CEO James 346 00:18:06,040 --> 00:18:07,680 Speaker 2: Reid speaking to us on Bloomberg Radio. 347 00:18:07,960 --> 00:18:10,359 Speaker 11: A lot of employers are struggling to find the people 348 00:18:10,400 --> 00:18:14,240 Speaker 11: they need and so they're paying a premium. They're paying 349 00:18:14,280 --> 00:18:19,480 Speaker 11: a premium to attract new applicants, so the wages have 350 00:18:19,560 --> 00:18:22,080 Speaker 11: been going up. I suppose what's interesting about this data 351 00:18:23,160 --> 00:18:26,240 Speaker 11: is it's a much more forensic analysis that we've done 352 00:18:26,280 --> 00:18:29,280 Speaker 11: with Bloomberg than we've ever done before, over five years 353 00:18:29,359 --> 00:18:33,400 Speaker 11: worth of pay data, and it's showing some very interesting 354 00:18:33,520 --> 00:18:37,639 Speaker 11: variations and it does raise some interesting questions, doesn't it 355 00:18:37,680 --> 00:18:40,399 Speaker 11: about the future of the labor market and what the 356 00:18:40,440 --> 00:18:42,880 Speaker 11: Bank of England might do, et cetera. So I think 357 00:18:42,920 --> 00:18:45,960 Speaker 11: this data is fascinating and I would urge people to 358 00:18:46,000 --> 00:18:46,560 Speaker 11: have a look at it. 359 00:18:46,680 --> 00:18:49,880 Speaker 2: That was James Reid, the CEO of the recruitment company 360 00:18:50,200 --> 00:18:53,560 Speaker 2: Read on Bloomberg Radio. Lizzie. Another question that I wanted 361 00:18:53,560 --> 00:18:56,160 Speaker 2: to circle back to in relation to the British Chambers 362 00:18:56,200 --> 00:18:59,400 Speaker 2: of Commerce conference is this idea of who represents business 363 00:18:59,440 --> 00:19:02,320 Speaker 2: in the UK when they're speaking to politicians. The biggest 364 00:19:02,359 --> 00:19:05,199 Speaker 2: business lobby group in this country, the Confederation of British Industry, 365 00:19:05,240 --> 00:19:08,639 Speaker 2: has paused operations because of allegations of sexual misconduct and 366 00:19:08,680 --> 00:19:13,080 Speaker 2: harassment among staff. The CBI is effectively in limbo. Who 367 00:19:13,160 --> 00:19:15,879 Speaker 2: is the government and other politicians speaking to when they 368 00:19:15,920 --> 00:19:17,080 Speaker 2: want to speak to business. 369 00:19:17,320 --> 00:19:21,080 Speaker 7: Well, I actually interviewed one of his Treasury ministers, the 370 00:19:21,119 --> 00:19:23,680 Speaker 7: City Minister, Andrew Griffith, and I asked him this very 371 00:19:23,760 --> 00:19:28,159 Speaker 7: question and he said that the Treasury is always talking 372 00:19:28,200 --> 00:19:30,960 Speaker 7: to business. There's a plethora of lobby groups out there 373 00:19:31,200 --> 00:19:35,840 Speaker 7: for that community. You've got the British Chambers of Commerce, 374 00:19:36,200 --> 00:19:39,240 Speaker 7: who's hosting this conference. There's also the Federation of Small Business, 375 00:19:39,240 --> 00:19:42,960 Speaker 7: the FSB, and the Institute of Directors the IOD. So 376 00:19:43,119 --> 00:19:45,639 Speaker 7: all of them are trying to fill this void that's 377 00:19:45,880 --> 00:19:48,920 Speaker 7: been left by the CBI when the government has said 378 00:19:49,520 --> 00:19:52,040 Speaker 7: that it's so problematic that I think the Chancellor himself 379 00:19:52,080 --> 00:19:55,200 Speaker 7: said there's no point engaging with the CBI when their 380 00:19:55,240 --> 00:19:58,240 Speaker 7: own members have deserted them in droves. 381 00:19:58,440 --> 00:20:00,760 Speaker 2: Okay, something to watch out for as we look ahead 382 00:20:00,840 --> 00:20:02,720 Speaker 2: to the events of the coming week. Thank you to 383 00:20:02,720 --> 00:20:06,000 Speaker 2: Bloomberg's UK correspondent Lizzie Burden. I'm Stephen Kroen in London. 384 00:20:06,040 --> 00:20:08,520 Speaker 2: You can catch us every weekday morning here for Bloomberg 385 00:20:08,560 --> 00:20:11,280 Speaker 2: Daybreak Europe, beginning at six am in London on one 386 00:20:11,320 --> 00:20:13,200 Speaker 2: am on Wall Streets. Tom. 387 00:20:13,200 --> 00:20:16,320 Speaker 1: Thank you, Stephen, and coming up on Bloomberg day Break weekend, 388 00:20:16,359 --> 00:20:19,959 Speaker 1: some big hearings on what went wrong with US regional banks. 389 00:20:20,400 --> 00:20:22,400 Speaker 1: I'm Tom Busby and this is. 390 00:20:22,320 --> 00:20:30,120 Speaker 5: Bloomberg broadcasting live from the Bloomberg it aactive brokers studio 391 00:20:30,240 --> 00:20:33,399 Speaker 5: in New York. Bloomberg elemon three oh to Washington d C, 392 00:20:33,520 --> 00:20:36,920 Speaker 5: Bloomberg ninety nine one to Boston, Bloomberg one O six 393 00:20:37,000 --> 00:20:40,280 Speaker 5: one to San Francisco, Bloomberg nine sixteen to the country, 394 00:20:40,320 --> 00:20:44,600 Speaker 5: Sirius XM Channel one nineteen to London DAB Digital radio, 395 00:20:44,680 --> 00:20:47,760 Speaker 5: and around the globe the Bloomberg Business app in Bloomberg 396 00:20:47,840 --> 00:20:51,320 Speaker 5: Radio dot Com. This is Bloomberg Daybreak Weekend. 397 00:20:57,520 --> 00:20:59,639 Speaker 1: I'm Tom Busby in New York with your global look 398 00:20:59,680 --> 00:21:02,200 Speaker 1: ahead at the top stories for investors in the coming week. 399 00:21:02,560 --> 00:21:05,680 Speaker 1: The regional bank turmoil still haunting us as we move 400 00:21:05,760 --> 00:21:07,920 Speaker 1: into the new trading week, and for more, let's add 401 00:21:07,960 --> 00:21:10,440 Speaker 1: to our Bloomberg ninety nine to one newsroom in Washington 402 00:21:10,800 --> 00:21:15,200 Speaker 1: and Bloomberg Sound On co host Kaylee lines, Kaylee. 403 00:21:15,160 --> 00:21:17,960 Speaker 4: That's right, Tom. It's still not fully clear if regional 404 00:21:18,000 --> 00:21:20,080 Speaker 4: banks are completely out of the woods yet, after a 405 00:21:20,119 --> 00:21:22,960 Speaker 4: series of failures this year. It of course began in March. 406 00:21:23,000 --> 00:21:25,639 Speaker 4: Silvergate had to wind down, Then Silicon Valley Bank and 407 00:21:25,680 --> 00:21:28,640 Speaker 4: Signature Bank collapsed and were put into receivership by the FDIC, 408 00:21:29,119 --> 00:21:32,320 Speaker 4: and then First Republic followed earlier this month, and here 409 00:21:32,359 --> 00:21:35,119 Speaker 4: in Washington, they're still trying to pick apart exactly what 410 00:21:35,320 --> 00:21:38,080 Speaker 4: happened and what should be done so it doesn't happen again. 411 00:21:38,520 --> 00:21:40,879 Speaker 4: This coming week, we have two big hearings before the 412 00:21:40,920 --> 00:21:44,440 Speaker 4: Senate Banking Committee. The first is Tuesday, where Committee Chairman 413 00:21:44,560 --> 00:21:47,280 Speaker 4: Senator Shared Brown is about to get this wish which 414 00:21:47,280 --> 00:21:49,560 Speaker 4: he shared with me back in March, to come true. 415 00:21:49,600 --> 00:21:51,960 Speaker 3: We could move more quickly if the bank CEOs got 416 00:21:52,000 --> 00:21:54,440 Speaker 3: out of their ivory towers and actually came and talked 417 00:21:54,480 --> 00:21:54,800 Speaker 3: to us. 418 00:21:54,960 --> 00:21:57,919 Speaker 4: That's right. On Tuesday, more than two months after the 419 00:21:57,920 --> 00:22:01,119 Speaker 4: failures of their respective banks, for executives from SVB and 420 00:22:01,200 --> 00:22:04,960 Speaker 4: Signature will testify before the committee. Then on Thursday, it 421 00:22:05,000 --> 00:22:07,080 Speaker 4: will be the bank regulators in the hot seat, with 422 00:22:07,119 --> 00:22:09,760 Speaker 4: FED Vice Chriff Supervision Michael Barr and fdi C Chair 423 00:22:09,800 --> 00:22:13,000 Speaker 4: Marity Grenberg set to testify once again, along with several 424 00:22:13,000 --> 00:22:16,159 Speaker 4: other witnesses from regulatory bodies, and in an interview with 425 00:22:16,160 --> 00:22:19,399 Speaker 4: Bloomberg this past week, the CEO of JP Morgan Jamie 426 00:22:19,440 --> 00:22:21,800 Speaker 4: Diamond had this message for them, we. 427 00:22:21,720 --> 00:22:24,199 Speaker 12: Need to finish the bank crisis. We've had uncertain policy 428 00:22:24,280 --> 00:22:26,840 Speaker 12: on mergers as first Arizon deal. I think we have 429 00:22:26,880 --> 00:22:28,960 Speaker 12: to assume they'll be a little bit more so, you know, 430 00:22:28,960 --> 00:22:32,359 Speaker 12: whatever the FDIC, the OCC, the Fellow Reserve or whatever 431 00:22:32,359 --> 00:22:36,000 Speaker 12: they need to do to make it better, they should 432 00:22:36,000 --> 00:22:39,000 Speaker 12: do be thoughtful, be very forward looking. You'll not be 433 00:22:39,080 --> 00:22:41,520 Speaker 12: surprised constantly because some of these things have been known 434 00:22:41,520 --> 00:22:42,520 Speaker 12: about for quite a while. 435 00:22:42,720 --> 00:22:45,679 Speaker 4: So will we get progress toward making it better? What 436 00:22:45,800 --> 00:22:49,800 Speaker 4: answers from regulators, congressional leaders, former bank executives are we 437 00:22:49,960 --> 00:22:52,920 Speaker 4: likely to get this coming week? Joining us now hopefully 438 00:22:52,920 --> 00:22:55,080 Speaker 4: to help answer those questions? Or Zacho And he's a 439 00:22:55,119 --> 00:22:58,040 Speaker 4: congressional reporter for Bloomberg Government as well as Ben bay And, 440 00:22:58,040 --> 00:23:01,760 Speaker 4: who heads up Bloomberg's financial regulation coverage here in Washington, 441 00:23:01,920 --> 00:23:04,720 Speaker 4: Zach Ben, thank you both so very much for joining us. 442 00:23:04,720 --> 00:23:06,720 Speaker 4: And Zach, I'd like to start with you first. On 443 00:23:06,800 --> 00:23:09,639 Speaker 4: the first hearing on Tuesday, we've got Greg Becker, the 444 00:23:09,640 --> 00:23:12,920 Speaker 4: former Silicon Valley Bank CEO, Scott Shay, the former chair 445 00:23:12,960 --> 00:23:15,399 Speaker 4: and co founder of Signature Bank, and Eric Howe, the 446 00:23:15,400 --> 00:23:18,760 Speaker 4: former president of Signature Bank. Are these three essentially just 447 00:23:18,800 --> 00:23:22,240 Speaker 4: going to get scolded and reprimanded by senators for several 448 00:23:22,400 --> 00:23:25,320 Speaker 4: hours or does the committee actually just want to glean 449 00:23:25,600 --> 00:23:28,520 Speaker 4: some new information from this hearing or ultimately just get 450 00:23:28,520 --> 00:23:29,800 Speaker 4: some clips for campaign ads. 451 00:23:30,119 --> 00:23:32,480 Speaker 13: Probably a little bit of both. You know, these executives 452 00:23:32,480 --> 00:23:34,440 Speaker 13: don't really have a lot of friends left in Washington, 453 00:23:35,200 --> 00:23:37,000 Speaker 13: so and this is really the first time that they're 454 00:23:37,040 --> 00:23:39,200 Speaker 13: going to be able to talk directly to these lawmakers, 455 00:23:39,200 --> 00:23:41,439 Speaker 13: at least in a public setting. Previous hearings have all 456 00:23:41,520 --> 00:23:44,000 Speaker 13: been with these regulators, like you mentioned with Michael Barr 457 00:23:44,040 --> 00:23:46,320 Speaker 13: and Marty Grunberg, and so this will be the first 458 00:23:46,320 --> 00:23:48,640 Speaker 13: time where lawmakers will be able to say, we've brought 459 00:23:48,640 --> 00:23:50,800 Speaker 13: these executives in. These are the questions we have, These 460 00:23:50,800 --> 00:23:52,480 Speaker 13: are the scoldings that we want to give to them, 461 00:23:52,720 --> 00:23:54,879 Speaker 13: and then to move on and say, what did happen, 462 00:23:54,960 --> 00:23:57,239 Speaker 13: what could have been done to prevent these failures, and 463 00:23:57,280 --> 00:24:00,840 Speaker 13: what could be done to prevent further failures of these 464 00:24:01,160 --> 00:24:03,680 Speaker 13: midsize banks. And so I expect you'll see a little 465 00:24:03,680 --> 00:24:06,520 Speaker 13: bit of politics, a little bit of more substantive probing, 466 00:24:06,560 --> 00:24:09,560 Speaker 13: depending on who on the panel is at the microphone. 467 00:24:09,640 --> 00:24:11,919 Speaker 4: There's always politics act. But I do wonder if this 468 00:24:12,000 --> 00:24:14,960 Speaker 4: might actually be really bipartisan. Are we likely to see 469 00:24:15,000 --> 00:24:17,880 Speaker 4: a difference in tone between the Democratic and Republican members 470 00:24:17,920 --> 00:24:19,639 Speaker 4: of the committee or are they mostly in line on 471 00:24:19,760 --> 00:24:22,199 Speaker 4: this specific issue when it comes to bank executives. 472 00:24:22,480 --> 00:24:24,840 Speaker 13: I think everybody that we've talked to and that they've said, 473 00:24:24,960 --> 00:24:27,800 Speaker 13: you know, Chairman Sharon Brown, ranking Member Tim Scott, the 474 00:24:28,000 --> 00:24:30,480 Speaker 13: top Republican have all said that the bank executives are 475 00:24:30,520 --> 00:24:33,520 Speaker 13: at least partially to blame for these bank failures. And so, yeah, 476 00:24:33,560 --> 00:24:36,480 Speaker 13: we do expect a bipartisan thrashing to a certain extent 477 00:24:36,560 --> 00:24:39,119 Speaker 13: of these executives who are going to come in and 478 00:24:39,160 --> 00:24:42,000 Speaker 13: try to defend what happened at these banks and the 479 00:24:42,080 --> 00:24:43,080 Speaker 13: lead up to their failure. 480 00:24:43,359 --> 00:24:44,960 Speaker 4: So it sounds like there's definitely going to be some 481 00:24:45,000 --> 00:24:47,840 Speaker 4: fireworks on Tuesday, and Ben I wonder if there's also 482 00:24:47,880 --> 00:24:50,399 Speaker 4: going to be some fireworks on Thursday when the regulators 483 00:24:50,920 --> 00:24:53,920 Speaker 4: are the ones that are in the hot seat there, 484 00:24:54,040 --> 00:24:57,280 Speaker 4: of course, Marty Grunberg, the FDIC, the FEDS, Michael Barr. 485 00:24:57,280 --> 00:25:00,200 Speaker 4: They have already been before the committee on the issue 486 00:25:00,520 --> 00:25:03,399 Speaker 4: bank failures. So what's going to be different this time around? 487 00:25:03,600 --> 00:25:05,800 Speaker 4: What are we likely to hear that we haven't heard already? 488 00:25:06,880 --> 00:25:09,120 Speaker 14: Well, I think we're you know, fast forward a couple 489 00:25:09,080 --> 00:25:12,800 Speaker 14: of weeks from the last time they appeared, and the 490 00:25:12,880 --> 00:25:15,639 Speaker 14: situation still hasn't been fully resolved, and we're going to 491 00:25:15,720 --> 00:25:19,200 Speaker 14: hear from former Silicon Valley Bank and former Signature Bank 492 00:25:19,280 --> 00:25:22,360 Speaker 14: CEOs and those banks have failed. But in the meanwhile, 493 00:25:22,400 --> 00:25:25,919 Speaker 14: there's still several you know, mid sized regional banks that 494 00:25:26,160 --> 00:25:29,640 Speaker 14: the market seems quite concerned about, and you know, there 495 00:25:29,760 --> 00:25:33,639 Speaker 14: still is this angst out there about potentially other shoes 496 00:25:33,720 --> 00:25:36,000 Speaker 14: to drop. So I think there's gonna be a lot 497 00:25:36,000 --> 00:25:40,520 Speaker 14: of questioning about whether bigger fixes need to happen policy wise. Now, 498 00:25:40,720 --> 00:25:44,439 Speaker 14: the fti C has come out with a recommendation a 499 00:25:44,520 --> 00:25:46,399 Speaker 14: thought of, you know, kind of what they'd like to 500 00:25:46,440 --> 00:25:49,719 Speaker 14: do in terms of the Deposit Insurance Fund, which was 501 00:25:50,040 --> 00:25:52,640 Speaker 14: certainly in the spotlight because that was used to make 502 00:25:53,080 --> 00:25:56,320 Speaker 14: really everyone whole who was who had money in those 503 00:25:56,359 --> 00:25:59,280 Speaker 14: two failed banks. But they need Congress to step in. 504 00:25:59,520 --> 00:26:02,919 Speaker 14: So it's kind of this, you know, interesting moment where 505 00:26:03,200 --> 00:26:06,359 Speaker 14: the regulators saying, Hey, we actually need Congress to do 506 00:26:06,440 --> 00:26:08,560 Speaker 14: something and write a new law here to be able 507 00:26:08,600 --> 00:26:11,480 Speaker 14: to to kind of come in the way that we 508 00:26:11,600 --> 00:26:13,919 Speaker 14: might want to. And you have a situation in Congress 509 00:26:13,960 --> 00:26:16,560 Speaker 14: where we're really not much is passing in terms of legislation, 510 00:26:17,240 --> 00:26:20,000 Speaker 14: legislation at all in this area or any other. 511 00:26:20,720 --> 00:26:24,040 Speaker 4: Yeah, the pace of the congressional response clearly has been 512 00:26:24,119 --> 00:26:26,399 Speaker 4: quite slow, at least in comparison to the speed with 513 00:26:26,440 --> 00:26:30,959 Speaker 4: which the crisis has moved. But these regulators been do 514 00:26:31,080 --> 00:26:34,280 Speaker 4: have a certain degree of discretion here in terms of 515 00:26:34,280 --> 00:26:36,880 Speaker 4: what they would like to do with their existing authority. Right, 516 00:26:36,920 --> 00:26:39,600 Speaker 4: how quickly could we see them actually tighten things on 517 00:26:39,640 --> 00:26:41,520 Speaker 4: their own, I mean there's. 518 00:26:41,320 --> 00:26:44,000 Speaker 14: Certainly things they can do. I mean they can you know, 519 00:26:44,160 --> 00:26:49,240 Speaker 14: these banks that failed and other banks are highly regulated entities, 520 00:26:49,280 --> 00:26:52,359 Speaker 14: so you know, they're constantly going back and forth with 521 00:26:52,440 --> 00:26:56,480 Speaker 14: their regulators over and getting various levels of scrutiny depending 522 00:26:56,520 --> 00:27:00,000 Speaker 14: on which business activity we're talking about. So there are 523 00:27:00,119 --> 00:27:02,840 Speaker 14: there are certainly things that regulators can do to dial 524 00:27:02,920 --> 00:27:06,480 Speaker 14: up that scrutiny, and there were you know, a hole 525 00:27:06,520 --> 00:27:08,840 Speaker 14: shown in terms of what was actually being looked at 526 00:27:08,880 --> 00:27:12,400 Speaker 14: in you know, there's regulars, there's regulators on a regular basis, 527 00:27:12,520 --> 00:27:14,399 Speaker 14: they can they can on their own go ahead and 528 00:27:14,440 --> 00:27:17,240 Speaker 14: make those tweaks, but for the big kind of holistic 529 00:27:17,320 --> 00:27:19,879 Speaker 14: changes that they might want, you know, they're going to 530 00:27:19,960 --> 00:27:22,720 Speaker 14: probably need lawmakers to do something that all said. The 531 00:27:22,720 --> 00:27:25,320 Speaker 14: Federal Reserve has been doing a review of a lot 532 00:27:25,359 --> 00:27:29,040 Speaker 14: of you know, kind of oversight of banks and some 533 00:27:29,080 --> 00:27:31,840 Speaker 14: of the rules, and that's happened. That's in the backdrop 534 00:27:31,880 --> 00:27:35,320 Speaker 14: that was that was occurring before you know, this crisis, 535 00:27:35,520 --> 00:27:39,000 Speaker 14: and I'm certain, I'm certain that what has transpired over 536 00:27:39,000 --> 00:27:41,480 Speaker 14: the past two months are certainly can inform you know, 537 00:27:41,520 --> 00:27:44,000 Speaker 14: whatever new rule proposals they come out with. So there 538 00:27:44,040 --> 00:27:47,520 Speaker 14: are things regulators can do, but you know, ultimately, like 539 00:27:47,640 --> 00:27:50,960 Speaker 14: many things, you know in Washington, it's Congress kind of 540 00:27:50,960 --> 00:27:53,200 Speaker 14: needs to step in to do the big, big things. 541 00:27:54,080 --> 00:27:56,920 Speaker 4: Zach, Will Congress do the big things? Do you think 542 00:27:57,040 --> 00:27:59,440 Speaker 4: is there actual momentum toward that, because as I said, 543 00:27:59,480 --> 00:28:01,280 Speaker 4: I mean, these banks failed two months ago, and we're 544 00:28:01,320 --> 00:28:03,720 Speaker 4: still holding hearings that are kind of backwards. 545 00:28:03,320 --> 00:28:05,400 Speaker 13: Looking, right, And I think part of that might be 546 00:28:05,840 --> 00:28:09,320 Speaker 13: maybe a lack of urgency. As you've heard from from 547 00:28:09,440 --> 00:28:12,119 Speaker 13: Yellen and Diamond. I think there's some confidence that maybe 548 00:28:12,119 --> 00:28:15,080 Speaker 13: the crisis is abating or at least, you know, not 549 00:28:15,160 --> 00:28:17,080 Speaker 13: quite finished, but at least you know, this isn't a 550 00:28:17,080 --> 00:28:20,159 Speaker 13: two thousand and eight really fast paced crisis, so to speak. 551 00:28:20,280 --> 00:28:22,679 Speaker 13: You know, other than these you know, these small regional banks, 552 00:28:23,280 --> 00:28:25,280 Speaker 13: and so there's a couple of things that they probably 553 00:28:25,280 --> 00:28:28,679 Speaker 13: won't do. The twenty eighteen rollback of Dodd frank On, 554 00:28:28,920 --> 00:28:31,879 Speaker 13: you know, that lowered the liquidity requirements for some of 555 00:28:31,880 --> 00:28:34,440 Speaker 13: these mid sized banks. That's not going anywhere. There's really 556 00:28:34,480 --> 00:28:37,760 Speaker 13: no interest in the Republican controlled House or among Senate 557 00:28:37,800 --> 00:28:40,640 Speaker 13: Republicans to work with Democrats and something like that. There's 558 00:28:40,640 --> 00:28:43,960 Speaker 13: by parties an interest in things like clawing back pay 559 00:28:44,000 --> 00:28:46,520 Speaker 13: to some of these executives, maybe to recoup costs, or 560 00:28:46,560 --> 00:28:50,200 Speaker 13: maybe increasing the cap on uninsured, increasing the cap on 561 00:28:50,240 --> 00:28:53,480 Speaker 13: insured deposits. And so maybe we see something along those lines. 562 00:28:53,560 --> 00:28:56,960 Speaker 13: But I think lawmaker's role here is not so much 563 00:28:56,960 --> 00:29:01,040 Speaker 13: in legislating, but in pressuring regulators to enact the kind 564 00:29:01,040 --> 00:29:03,240 Speaker 13: of more strict requirements that they've been looking for in 565 00:29:03,280 --> 00:29:06,680 Speaker 13: the kind of oversight that maybe was missing during these failures. 566 00:29:07,080 --> 00:29:09,400 Speaker 4: Yeah, and of course we're talking here about the failures 567 00:29:09,440 --> 00:29:11,400 Speaker 4: we have seen. But Ben, I feel like there is, 568 00:29:11,440 --> 00:29:14,120 Speaker 4: and you were alluding to this earlier, still some fear 569 00:29:14,240 --> 00:29:17,400 Speaker 4: in the market that there could be more failures to come. 570 00:29:17,560 --> 00:29:20,240 Speaker 4: Are we likely to see more banks collapse before anyone 571 00:29:20,280 --> 00:29:21,959 Speaker 4: can get around to making real changes? 572 00:29:22,240 --> 00:29:22,640 Speaker 11: Well, I don't. 573 00:29:22,680 --> 00:29:25,040 Speaker 14: I don't think, you know, we quite know the answer 574 00:29:25,040 --> 00:29:26,920 Speaker 14: to that. I mean, there are it's been it's been 575 00:29:27,080 --> 00:29:29,640 Speaker 14: you know, kind of days of while trading some of 576 00:29:29,680 --> 00:29:31,960 Speaker 14: the Some some days, you know, these these shares are 577 00:29:32,000 --> 00:29:34,920 Speaker 14: getting getting pounded down, you know, in the double digits. 578 00:29:35,000 --> 00:29:37,520 Speaker 14: Other days that you know they'll kind of come roaring back. 579 00:29:37,920 --> 00:29:40,640 Speaker 14: It does seem like there is in some instances, a 580 00:29:40,760 --> 00:29:45,320 Speaker 14: disconnect between, you know, what the market is doing and 581 00:29:45,560 --> 00:29:48,960 Speaker 14: what maybe the bank is saying about its business. 582 00:29:49,440 --> 00:29:53,200 Speaker 4: Ben Bain, regulatory team leader for Bloomberg News and Zach 583 00:29:53,200 --> 00:29:55,680 Speaker 4: co And a congressional reporter for Bloomberg Government, Thank you 584 00:29:55,720 --> 00:29:58,480 Speaker 4: both so much. Really looking forward to the coverage of 585 00:29:58,520 --> 00:30:00,840 Speaker 4: both of these hearings next week and we'll send it 586 00:30:00,880 --> 00:30:01,240 Speaker 4: back to you. 587 00:30:01,480 --> 00:30:02,240 Speaker 3: Thank you, Kaylee. 588 00:30:02,320 --> 00:30:05,520 Speaker 1: Kaylee Lines reporting from our Bloomberg ninety nine one newsroom 589 00:30:05,520 --> 00:30:07,960 Speaker 1: in Washington, and you can hear Kaylee and co host 590 00:30:08,040 --> 00:30:11,400 Speaker 1: Joe Matthew on sound on weekdays one to three pm 591 00:30:11,560 --> 00:30:14,960 Speaker 1: right here on Bloomberg Radio. Coming up here on Bloomberg 592 00:30:15,000 --> 00:30:18,760 Speaker 1: day Break weekend, looking ahead to some key Chinese economic 593 00:30:18,840 --> 00:30:22,720 Speaker 1: data coming our way. I'm Tom Busby, and this is Bloomberg. 594 00:30:27,000 --> 00:30:29,400 Speaker 1: This is Bloomberg day Break Weekend, our global look ahead 595 00:30:29,400 --> 00:30:31,720 Speaker 1: at the top stories for investors in the coming week. 596 00:30:31,880 --> 00:30:35,840 Speaker 1: I'm Tom Busby in New York. China's economy bouncing back 597 00:30:36,000 --> 00:30:39,280 Speaker 1: now that COVID measures have eased, But just how big 598 00:30:39,360 --> 00:30:41,520 Speaker 1: of a bounce? For more, Let's go to Hong Kong 599 00:30:41,560 --> 00:30:45,160 Speaker 1: and Bloomberg Daybreak Asia host Brian Curtis and his colleague 600 00:30:45,160 --> 00:30:45,920 Speaker 1: Doug Krisner. 601 00:30:46,600 --> 00:30:50,760 Speaker 3: Tom, It's a simple question, is the Chinese economy sputtering 602 00:30:51,120 --> 00:30:54,680 Speaker 3: or recovering? But the answer may be much more complicated. 603 00:30:55,000 --> 00:30:56,960 Speaker 3: We'll get a slew of data in the coming week 604 00:30:57,040 --> 00:30:59,320 Speaker 3: that will no doubt shed some light on the issue. 605 00:30:59,400 --> 00:31:01,920 Speaker 15: Now, in the past week, we had some shocking data 606 00:31:01,960 --> 00:31:05,880 Speaker 15: for the month of April. Producer prices fell further into deflation. 607 00:31:06,440 --> 00:31:11,080 Speaker 15: Consumer prices at the same time barely positive, and imports plummeted. 608 00:31:11,320 --> 00:31:14,560 Speaker 3: That might change with the retail sales and industrial production 609 00:31:14,800 --> 00:31:18,400 Speaker 3: in the coming week. There are significant cross currents in 610 00:31:18,440 --> 00:31:21,000 Speaker 3: the economy and to try to sort through them, we 611 00:31:21,040 --> 00:31:25,200 Speaker 3: asked James Meger, Bloomberg Economics editor for Greater China and Mongolia, 612 00:31:25,320 --> 00:31:28,760 Speaker 3: to join us. So, James, thank you. We understand that 613 00:31:28,880 --> 00:31:33,120 Speaker 3: the base effect from last year is distorting the picture. 614 00:31:33,240 --> 00:31:35,880 Speaker 3: In the case of exports, for instance, it made the 615 00:31:35,960 --> 00:31:40,720 Speaker 3: data perhaps look better than they what the reality is. However, 616 00:31:40,920 --> 00:31:43,880 Speaker 3: in the case of imports, it's actually worse. I mean, 617 00:31:43,920 --> 00:31:46,760 Speaker 3: if imports were worse this year, down seven point nine 618 00:31:46,840 --> 00:31:50,440 Speaker 3: percent from last year when we were in lockdown, well 619 00:31:50,640 --> 00:31:52,560 Speaker 3: that tells you they were pretty bad. 620 00:31:52,640 --> 00:31:55,440 Speaker 16: I mean, obviously the base effects from last year in 621 00:31:55,440 --> 00:31:57,760 Speaker 16: April of last year, Shanhaio, as you said, was in lockdown, 622 00:31:57,800 --> 00:32:01,120 Speaker 16: your lockdowns across the country, and so that's seriously going 623 00:32:01,160 --> 00:32:02,800 Speaker 16: to undercut the amount of that time. It's going to 624 00:32:02,880 --> 00:32:04,400 Speaker 16: make a lot of the numbers look better. So, as 625 00:32:04,440 --> 00:32:07,160 Speaker 16: you said, exports were a lot better than expected, we 626 00:32:07,240 --> 00:32:10,200 Speaker 16: expect retail sales to jump by like twenty percent or 627 00:32:10,240 --> 00:32:14,320 Speaker 16: something in this April. But I know if you try 628 00:32:14,320 --> 00:32:17,960 Speaker 16: and remove those from what we're looking at, the economy 629 00:32:17,960 --> 00:32:20,160 Speaker 16: does seem to be really struggling at this time. Obviously, 630 00:32:20,240 --> 00:32:22,560 Speaker 16: imports are very weak. Commodity and that's not just a 631 00:32:22,560 --> 00:32:25,320 Speaker 16: commodity price thing. You know, the use of coal in 632 00:32:25,320 --> 00:32:29,640 Speaker 16: the economy is falling. Deal companies are cutting prices because 633 00:32:29,680 --> 00:32:33,320 Speaker 16: of weak demand for steel. We saw the excavated companies 634 00:32:33,360 --> 00:32:36,400 Speaker 16: that sell you know, excavators for construction sales are down 635 00:32:36,520 --> 00:32:39,719 Speaker 16: forty forty one percent in April for them. If you're 636 00:32:39,720 --> 00:32:42,400 Speaker 16: looking across the whole economy, the industrial sector seems to 637 00:32:42,400 --> 00:32:45,040 Speaker 16: be very weak. Exports don't seem to be particularly strong. 638 00:32:45,400 --> 00:32:48,640 Speaker 16: Construction isn't really rebounding. Even though the housing sector seems 639 00:32:48,640 --> 00:32:50,920 Speaker 16: to be stabilizing, You're not seeing a rebound in construction. 640 00:32:51,000 --> 00:32:53,440 Speaker 16: You're not seeing a rebound in new home sales. So 641 00:32:53,920 --> 00:32:57,760 Speaker 16: on all these critical sectors, the Chinese economy looks very 642 00:32:57,760 --> 00:32:58,440 Speaker 16: weak at this time. 643 00:32:58,760 --> 00:33:01,280 Speaker 15: In the coming months, we're hearing that China is expected 644 00:33:01,320 --> 00:33:04,160 Speaker 15: to roll out some policies to address this growth issue 645 00:33:04,680 --> 00:33:08,720 Speaker 15: away from applying direct fiscal stimulus. When you think about 646 00:33:08,720 --> 00:33:12,160 Speaker 15: things like protecting supply chains or boosting the birth rate. 647 00:33:12,600 --> 00:33:15,479 Speaker 15: Is there something more the government can be doing away 648 00:33:15,560 --> 00:33:17,280 Speaker 15: from applying more money. 649 00:33:17,360 --> 00:33:19,480 Speaker 16: So there's been a there's a real effort right now 650 00:33:19,480 --> 00:33:22,200 Speaker 16: to attract more foreign investment into the economy. You know, 651 00:33:22,280 --> 00:33:25,720 Speaker 16: you just have officials from across China, like cities, provinces, 652 00:33:25,800 --> 00:33:28,880 Speaker 16: even the central governments, spreading out countries in Asia and 653 00:33:28,920 --> 00:33:31,600 Speaker 16: more more widely to the Middle East for example, to 654 00:33:31,680 --> 00:33:34,320 Speaker 16: try and get foreign investment to return to China. And 655 00:33:34,320 --> 00:33:37,160 Speaker 16: there was a real slump in foreign investment during the pandemic, 656 00:33:37,280 --> 00:33:41,480 Speaker 16: especially last year, and the aim is for this money 657 00:33:41,520 --> 00:33:43,840 Speaker 16: to help drive growth this year. You know, the question 658 00:33:43,920 --> 00:33:45,720 Speaker 16: is whether that's going to happen or night. And so 659 00:33:45,840 --> 00:33:48,000 Speaker 16: far there hasn't been any sign of like a really 660 00:33:48,040 --> 00:33:51,080 Speaker 16: bullish return of foreign investors to the Chinese economy. That's 661 00:33:51,400 --> 00:33:53,920 Speaker 16: whether that's in greenfield investment in sort of new factories 662 00:33:53,920 --> 00:33:56,840 Speaker 16: and new production here, or whether that's in portfolio flows 663 00:33:56,880 --> 00:33:59,000 Speaker 16: and people buying into the stock in the bond market. 664 00:33:59,280 --> 00:34:01,400 Speaker 16: There hasn't been the sort of an inflow of money 665 00:34:01,440 --> 00:34:04,120 Speaker 16: that would help boost the economy, and so the government's 666 00:34:04,160 --> 00:34:07,520 Speaker 16: really left with things like fiscal spending. You know, if 667 00:34:07,840 --> 00:34:10,520 Speaker 16: export demand is weak. If foreign investment is not coming in, 668 00:34:11,880 --> 00:34:14,640 Speaker 16: all you really have is there the domestic leavers for 669 00:34:15,160 --> 00:34:18,680 Speaker 16: driving growth, whether that's more subsidies for the electric vehicle market, 670 00:34:19,040 --> 00:34:21,759 Speaker 16: or whether it's you know, things like more subsidies for 671 00:34:21,800 --> 00:34:23,640 Speaker 16: people to encourage them to have more children. 672 00:34:23,760 --> 00:34:26,960 Speaker 15: James, thanks for helping out and helping us understand what's 673 00:34:27,000 --> 00:34:29,320 Speaker 15: going on in China's economy as we look ahead to 674 00:34:29,360 --> 00:34:33,080 Speaker 15: the retail sales and industrial production data in the coming week. 675 00:34:33,200 --> 00:34:36,799 Speaker 15: James Mager, who is a Bloomberg Economics editor for Greater 676 00:34:36,920 --> 00:34:38,200 Speaker 15: China and Mongolia. 677 00:34:38,680 --> 00:34:41,480 Speaker 3: James, thank you. I'm Brian Curtis, along with Doug Krisner. 678 00:34:41,480 --> 00:34:44,800 Speaker 3: You can catch us every weekday here for Bloomberg Daybreak Asia, 679 00:34:45,080 --> 00:34:47,960 Speaker 3: beginning at six am in Hong Kong and six pm 680 00:34:47,960 --> 00:34:49,320 Speaker 3: on Wall Street. Tom. 681 00:34:49,560 --> 00:34:51,719 Speaker 1: Thank you, Brian and Doug. And that does it for 682 00:34:51,760 --> 00:34:54,960 Speaker 1: this edition of Bloomberg Daybreak Weekend. Join us again Monday 683 00:34:54,960 --> 00:34:57,280 Speaker 1: morning at five am Wall Street time for the latest 684 00:34:57,320 --> 00:35:00,160 Speaker 1: on markets overseas and the news you need to start 685 00:35:00,160 --> 00:35:03,600 Speaker 1: your day. I'm Tom Buzzby. Stay with us. Top stories 686 00:35:03,600 --> 00:35:06,200 Speaker 1: and global business headlines are coming up right now.