WEBVTT - Daybreak Weekend: US Jobs, Winter Olympics, Japan Election 0:00:02.080 --> 0:00:05.080 This is Bloomberg Daybreak Weekend, our global look at the 0:00:05.080 --> 0:00:07.720 top stories in the coming week from our Daybreak anchors 0:00:07.760 --> 0:00:10.399 all around the world. Straight Ahead on the program, we'll 0:00:10.400 --> 0:00:13.000 look to the January jobs report and how that could 0:00:13.039 --> 0:00:16.040 affect fed policy. I'm Nathan Hager in Washington. 0:00:16.160 --> 0:00:19.640 I'm callin Hepga in London, where we're discussing snow, ice 0:00:19.760 --> 0:00:23.880 and geopolitics the twenty twenty six Winter Olympics in Italy. 0:00:24.000 --> 0:00:26.560 I'm Doug Prisner looking ahead to the snap election in 0:00:26.640 --> 0:00:30.000 Japan and what the outcome means for the Japanese economy. 0:00:30.400 --> 0:00:34.400 That's all straight ahead on Bloomberg Daybreak Weekend. I'm Bloomberg 0:00:34.440 --> 0:00:38.160 eleven three year, New York, Bloomberg ninety nine to one, Washington, DC, 0:00:38.640 --> 0:00:43.800 Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Syrias 0:00:43.960 --> 0:00:47.480 XM one twenty one, and around the world on Bloomberg Radio, 0:00:47.520 --> 0:00:53.680 dot Com and the Bloomberg Business Appo. 0:00:54.560 --> 0:00:57.080 Good day to you. I'm Nathan Hager. Let's take a 0:00:57.080 --> 0:00:59.440 look now at some stocks making news in the week ahead. 0:00:59.520 --> 0:01:02.360 I'm Nathan Hagar with Mandeep Saying, Global head of Tech 0:01:02.400 --> 0:01:05.800 Research at Bloomberg Intelligence. Great to have you on is 0:01:05.840 --> 0:01:07.640 we're going to be looking ahead to a lot more 0:01:07.720 --> 0:01:11.000 big tech stocks in the week ahead. What are we 0:01:11.040 --> 0:01:15.080 expecting when it comes to earnings from Google parent Alphabet? Mandy? 0:01:15.920 --> 0:01:19.760 Look, I mean what we saw with Meta was you know, 0:01:20.120 --> 0:01:24.600 accelerating top line growth, and in the case of Google, 0:01:24.760 --> 0:01:27.959 both the search business as well as the YouTube business 0:01:28.200 --> 0:01:31.840 have I would say modest expectations going in the quarter, 0:01:32.160 --> 0:01:35.960 you know, low to mid teens growth. So, I mean 0:01:36.000 --> 0:01:39.959 we've felt double digit growth for Alphabet over the last 0:01:39.959 --> 0:01:43.000 few quarters, what was very impressive given you know, the 0:01:43.120 --> 0:01:47.200 threat from Chat GPT, But I think Meta has really 0:01:47.319 --> 0:01:51.920 raised the bar in terms of digital ad growth in 0:01:52.000 --> 0:01:56.080 the fourth quarter. So I would be looking for accelerating 0:01:56.160 --> 0:01:59.120 top line growth at least high teens growth for YouTube 0:01:59.200 --> 0:02:02.640 and you know, low to maintains growth for the core 0:02:02.680 --> 0:02:04.360 search business of Alphabet. 0:02:04.560 --> 0:02:08.120 Since you mentioned meta platforms, we should say that the 0:02:08.400 --> 0:02:11.880 AI spend from Microsoft seemed to spook a lot of 0:02:11.960 --> 0:02:17.720 investors last week. Given that Alphabet has its Google Cloud business, 0:02:17.800 --> 0:02:20.320 could that be a concern for investors there when it 0:02:20.360 --> 0:02:22.400 comes to AI spend in the cloud? 0:02:23.280 --> 0:02:26.720 You're right, I mean what Microsoft Sprint has shown is 0:02:26.840 --> 0:02:30.240 you can't really miss the cloud growth numbers. So in 0:02:30.280 --> 0:02:34.360 the case of alphabet expectations, our Google Cloud will have 0:02:34.440 --> 0:02:37.360 at least thirty five percent growth. And based on the 0:02:37.360 --> 0:02:40.560 work that we have done, I mean, Google really has 0:02:40.680 --> 0:02:46.160 had some very impressive, impressive deal wins this quarter in 0:02:46.240 --> 0:02:49.960 their cloud segments, so chances are they should do better. 0:02:50.040 --> 0:02:53.840 And remember Google has their TPUs, so they shouldn't be 0:02:54.080 --> 0:02:58.640 as supply constrained as Microsoft probably was in the quarter 0:02:58.880 --> 0:03:03.400 with the GPU situation. So my guess is Google Cloud 0:03:03.440 --> 0:03:07.440 segment would see sequential acceleration and they should be the 0:03:08.000 --> 0:03:09.760 consensus number handedly And. 0:03:09.840 --> 0:03:14.280 How do you see Google's TPU processors fairing compared to 0:03:14.360 --> 0:03:16.680 the GPUs that we get from Nvidia. 0:03:17.280 --> 0:03:19.840 I mean, if there's one theme that we have heard 0:03:19.880 --> 0:03:24.200 so far this earning season is AI infrastructure demand remains 0:03:24.400 --> 0:03:28.239 insatiable and all these companies are wanting to get as 0:03:28.400 --> 0:03:33.720 much you know, compute capacity as they can. So Google's TPUs, 0:03:34.360 --> 0:03:38.480 you know, are used both internally for Google overviews and 0:03:38.560 --> 0:03:42.400 across their family off apps as well as they're used 0:03:42.400 --> 0:03:46.000 on Google Cloud. And so from that perspective, I do think, 0:03:46.480 --> 0:03:49.440 you know, Google should be able to show the most 0:03:49.760 --> 0:03:53.160 efficiency when it comes to AI infrastructure and that should 0:03:53.200 --> 0:03:56.240 get reflected in their growth margins, which I expect to 0:03:56.280 --> 0:03:58.920 be better than the rest of the hyperscalers. 0:03:59.200 --> 0:04:01.600 We're also going to hear from Amazon this week they 0:04:01.640 --> 0:04:05.120 report their earnings. What are you expecting from their cloud 0:04:05.280 --> 0:04:06.680 unit aws? 0:04:07.040 --> 0:04:10.880 Yeah, I mean you want to see all these cloud 0:04:10.920 --> 0:04:16.000 companies show sequential acceleration. It didn't happen with Microsoft, hence 0:04:16.040 --> 0:04:19.839 we saw that negative reaction, and in the case of Atablus, 0:04:19.920 --> 0:04:23.120 I would say expectations again are like for low twenty 0:04:23.120 --> 0:04:27.200 percent growth. So given they are the largest cloud provider, 0:04:28.120 --> 0:04:32.000 I mean they should be able to beat those numbers. 0:04:32.120 --> 0:04:35.840 But look what we have heard so far is supply 0:04:36.000 --> 0:04:39.600 constraints are real when it comes to AI compute capacity 0:04:39.680 --> 0:04:43.400 and that may have a bearing on whether ada BLUs 0:04:43.520 --> 0:04:46.360 ends up beating those consensus numbers or not. 0:04:46.760 --> 0:04:50.080 Is low twenty percent enough to wow investors? 0:04:50.520 --> 0:04:53.960 No, but you want to see that sequential acceleration. So 0:04:54.600 --> 0:04:58.240 I mentioned about the size of Atablus, So that's almost 0:04:58.279 --> 0:05:01.080 one hundred and thirty five billion dollar dollar rundrate business 0:05:01.240 --> 0:05:05.680 for Amazon. Contrast that with Microsoft, which is more one 0:05:05.760 --> 0:05:09.200 hundred billion, and Google Cloud is like sixty billion rund 0:05:09.240 --> 0:05:12.840 rates so given their size, I mean, low twenty percent 0:05:13.480 --> 0:05:16.080 would be in line, but anything more than that would 0:05:16.279 --> 0:05:19.799 be impressive, and I think that would help those dock. 0:05:20.040 --> 0:05:24.960 And along with Amazon and Alphabet. Another a in big 0:05:25.040 --> 0:05:29.120 tech reports this week advanced micro devices. How's the computer 0:05:29.279 --> 0:05:31.119 chip business looking right now? Mandy? 0:05:31.480 --> 0:05:34.800 I mean, look, Meta just told us they plan to 0:05:34.880 --> 0:05:37.920 spend up to one hundred and thirty five billion dollars 0:05:37.960 --> 0:05:42.320 in CAPEX, which is a seventy percent increase from what 0:05:42.360 --> 0:05:46.760 they spent in twenty twenty five. So we were modeling 0:05:46.880 --> 0:05:51.040 like fifty percent increase in CAPEX from hyperscalers going into 0:05:51.080 --> 0:05:55.760 twenty twenty six. Chances are that number will be revised upward, 0:05:56.240 --> 0:05:59.440 and so it will trickle down to the likes of AMD, 0:05:59.600 --> 0:06:04.040 which is is the you know, the second biggest GPU 0:06:04.360 --> 0:06:09.000 provider after Nvidia, and so to my mind, AMDs deal 0:06:09.080 --> 0:06:11.680 with open ai and some of the other business that 0:06:11.720 --> 0:06:16.320 they have won over the last few months should help, 0:06:16.440 --> 0:06:21.080 you know, exceed expectations when they print their results. 0:06:21.520 --> 0:06:24.719 Does a m D need to show more market share 0:06:24.960 --> 0:06:26.120 compared to Nvidia. 0:06:27.000 --> 0:06:30.039 I think this is such a big market that everyone 0:06:30.160 --> 0:06:33.880 is realizing that you don't need to, you know, win 0:06:34.000 --> 0:06:37.120 market share from Nvidia as long as you have a 0:06:37.160 --> 0:06:41.159 good product that you know companies are interested in buying, 0:06:41.200 --> 0:06:44.480 and open Ai has that deal with a m D. 0:06:44.680 --> 0:06:48.520 Now that is a big leap of faith in terms 0:06:48.560 --> 0:06:53.000 of MD's capabilities to supply you know, six gigawatts of 0:06:53.160 --> 0:06:56.960 power that has all a m D chips, and I 0:06:57.320 --> 0:07:01.360 think that should help them win more prize business over time. 0:07:01.839 --> 0:07:05.320 Appreciate this man deep as always. That's Mandeep Saying, Global 0:07:05.320 --> 0:07:08.919 head of Tech Research at Bloomberg Intelligence. We move next 0:07:08.960 --> 0:07:12.000 to some key economic data in the US. Our first 0:07:12.080 --> 0:07:14.720 full look at the labor market for twenty twenty six 0:07:14.800 --> 0:07:17.680 so far comes out this Friday at eight thirty Wall 0:07:17.720 --> 0:07:21.000 Street time, and we get non farm payrolls for January. 0:07:21.360 --> 0:07:24.640 Ahead of that. We're joined by Michael McKee, our international 0:07:24.680 --> 0:07:28.240 economics and policy correspondent for Bloomberg Radio and Television. 0:07:28.640 --> 0:07:28.840 Mike. 0:07:28.880 --> 0:07:31.240 The theme we keep hearing from the data leading up 0:07:31.280 --> 0:07:33.600 to this report is this is a low, higher, low 0:07:33.680 --> 0:07:36.840 fire labor market. So are we expecting to see that 0:07:36.920 --> 0:07:39.640 reflected in the Big Daddy report coming out this week? 0:07:40.320 --> 0:07:44.320 That is what we are expecting to see. The interesting 0:07:44.400 --> 0:07:46.320 thing about this report, of course, is it's the first 0:07:46.360 --> 0:07:49.480 one since the government shutdown ended. That isn't going to 0:07:49.520 --> 0:07:52.360 be distorted by the government shutdown. It's a full month 0:07:52.360 --> 0:07:57.600 of data collected and the normal processing time. So to 0:07:57.640 --> 0:08:00.480 the extent that it tells us something about where the 0:08:00.520 --> 0:08:05.080 labor market is, it should be relatively accurate. The Fed 0:08:05.440 --> 0:08:08.560 last week, in their assessment of the economy at their 0:08:08.600 --> 0:08:13.080 meeting said that while we were still seeing low hiring, 0:08:13.240 --> 0:08:17.000 the unemployment rate seems to have stabilized, so they seem 0:08:17.040 --> 0:08:19.440 to think that things are getting a little bit better. 0:08:19.720 --> 0:08:22.760 Okay, so how could we see that reflected in the 0:08:22.840 --> 0:08:27.120 data itself. Where are we seeing signs of studying in 0:08:27.160 --> 0:08:27.840 the labor market. 0:08:28.560 --> 0:08:30.640 Well, the biggest is in the unemployment rate. It fell 0:08:30.920 --> 0:08:35.040 last time last month for the December number to four 0:08:35.040 --> 0:08:37.640 point four percent, and we're not expecting that to change. 0:08:37.640 --> 0:08:40.480 According to the economists survey by Bloomberg stays at four 0:08:40.520 --> 0:08:43.840 point four percent, so a sign of stability there. And 0:08:43.880 --> 0:08:47.160 the interesting thing is the December payrolls report was only 0:08:47.160 --> 0:08:50.920 fifty thousand. Obviously we will get some sort of revision, 0:08:51.440 --> 0:08:55.280 but right now we're looking at seventy thousand is the 0:08:55.320 --> 0:08:58.719 forecast by economists for January, so that would be a 0:08:58.760 --> 0:09:02.040 little bit stronger and we saw in the month before. 0:09:01.760 --> 0:09:05.640 But still pretty subdued compared to where we've been historically. 0:09:05.760 --> 0:09:10.359 So what could this mean for the Federal Reserve going forward? 0:09:10.720 --> 0:09:13.280 Well, the FAT doesn't know, and that's one of the 0:09:13.280 --> 0:09:16.280 things that they're going to be looking at. The whole 0:09:16.360 --> 0:09:20.120 question surrounds all of these low numbers. Is it because 0:09:20.240 --> 0:09:23.240 companies don't want to hire right now? Or is it 0:09:23.240 --> 0:09:25.880 because they don't have people to hire? In other words, 0:09:25.960 --> 0:09:32.000 has the administration's cracked down on immigration and the ejection 0:09:32.160 --> 0:09:37.439 of people from the economy and scaring people into staying 0:09:37.520 --> 0:09:40.520 home from work. Does that mean that there are fewer 0:09:40.559 --> 0:09:42.760 people to hire? And that's one of the big reasons 0:09:42.800 --> 0:09:46.200 that we're not seeing the same kind of payroll growth, 0:09:46.240 --> 0:09:48.199 and it's going to take a while to figure that out. 0:09:48.520 --> 0:09:54.559 We do, however, Nathan, get an update on the population estimates. 0:09:54.600 --> 0:09:58.400 This comes once a year in January, and that should 0:09:58.520 --> 0:10:01.760 change that should that will make December and January numbers 0:10:01.840 --> 0:10:05.280 not quite comparable, and it does figure to change the 0:10:05.400 --> 0:10:11.120 labor force participation rate perhaps a little bit. So we'll 0:10:11.160 --> 0:10:14.880 be starting fresh, but also having some sort of idea 0:10:14.880 --> 0:10:15.840 of what's going on. 0:10:16.040 --> 0:10:19.319 Yeah, there's also the big question about whether artificial intelligence 0:10:19.400 --> 0:10:22.360 is playing a role in labor market dynamics as well. 0:10:22.400 --> 0:10:25.800 We've heard that from a number of Federal Reserve speakers. 0:10:25.960 --> 0:10:28.000 Where's the thinking on that right now? 0:10:28.240 --> 0:10:31.280 Well, the thinking is is that artificial intelligence will take 0:10:31.320 --> 0:10:34.000 a larger and larger share of the labor force, but 0:10:34.960 --> 0:10:38.160 we're not completely clear on where it is. The logical 0:10:38.200 --> 0:10:42.000 answer is that we'll see lower paid, lower skilled people 0:10:42.120 --> 0:10:45.400 lose their jobs to computers. But of course people are 0:10:45.440 --> 0:10:50.040 talking about folks in the finance industry or folks in law, 0:10:50.760 --> 0:10:55.679 especially at the lower ends, the beginning, the interns, they 0:10:55.720 --> 0:10:58.800 would lose their jobs because then the computer can do 0:10:58.920 --> 0:11:02.960 it all. So we are expecting some sort of change, 0:11:03.480 --> 0:11:07.360 but the question is how fast. And that's where some 0:11:07.400 --> 0:11:10.240 people at the Fed are concerned that maybe we're getting 0:11:10.280 --> 0:11:15.959 ahead of ourselves in terms of the in terms of 0:11:16.000 --> 0:11:21.160 the impact on today's jobs reports, because companies are starting 0:11:21.200 --> 0:11:24.360 to adopt this stuff, but they haven't had a lot 0:11:24.400 --> 0:11:27.000 of time to figure out who they don't need anymore. 0:11:27.440 --> 0:11:29.880 And of course there's a lot of question, a lot 0:11:29.880 --> 0:11:33.760 of focus at the White House on job growth, the 0:11:34.120 --> 0:11:37.480 whole idea of trade policy coming out of the Trump 0:11:37.520 --> 0:11:41.120 administration is that it's going to boost manufacturing jobs. Are 0:11:41.120 --> 0:11:43.720 we seeing any signs that that is starting to take hold? 0:11:44.400 --> 0:11:44.480 No. 0:11:45.160 --> 0:11:48.400 Since the president came to office, we've lost manufacturing jobs, 0:11:48.440 --> 0:11:51.080 and that's been one of the flaws in their whole argument. 0:11:51.720 --> 0:11:54.360 We are not seeing manufacturing payrolls go up. Now, we 0:11:54.400 --> 0:11:58.199 don't have an estimate yet for the change in manufacturing payrolls. 0:11:58.200 --> 0:11:59.960 That'll come later in the week as we get close 0:12:00.240 --> 0:12:03.960 to the release. But in December we lost eight thousand 0:12:04.600 --> 0:12:09.240 manufacturing jobs. So there's still a lot of concern about 0:12:09.320 --> 0:12:13.760 where this all goes and whether or not we're going 0:12:13.800 --> 0:12:17.320 to see an increase in manufacturing jobs, because what tends 0:12:17.360 --> 0:12:21.079 to happen is that if a company builds a new factory, 0:12:21.120 --> 0:12:23.160 they put a lot of machines and robots and things 0:12:23.240 --> 0:12:25.880 in there, and so you don't get the additional jobs 0:12:26.200 --> 0:12:27.120 that you thought you might. 0:12:27.600 --> 0:12:30.520 Thanks for this, Mike, As always, that's Michael McKee, Bloomberg 0:12:30.559 --> 0:12:34.040 International Economics and Policy correspondent, head of the non farm 0:12:34.040 --> 0:12:37.000 Payrolls Report for January. This Friday at eight thirty Wall 0:12:37.040 --> 0:12:40.000 Street Time, and coming up on Bloomberg Day Break weekend, 0:12:40.000 --> 0:12:43.040 we'll look ahead to the twenty fifth Winter Olympic Games 0:12:43.160 --> 0:12:58.640 in Italy. I'm Nathan Hagert, and this is Bloomberg. This 0:12:58.679 --> 0:13:01.240 is Bloomberg day Break weekend, our global look ahead at 0:13:01.280 --> 0:13:03.720 the top stories for investors in the coming week. I'm 0:13:03.800 --> 0:13:06.760 Nathan hager in Washington. Up later in our program, we'll 0:13:06.760 --> 0:13:09.720 look ahead to a general election in Japan and we'll 0:13:09.720 --> 0:13:13.280 focus on a policy decision from the Reserve Bank of Australia. 0:13:13.360 --> 0:13:16.840 But first, the twenty fifth Winter Olympic Games kickoff in 0:13:17.000 --> 0:13:19.960 Italy in the next few days. Though the event promises 0:13:20.000 --> 0:13:23.679 fireworks on the sporting stage, could diplomatic tensions between the 0:13:23.800 --> 0:13:27.480 US and Europe threaten to upstage the proceedings for more. 0:13:27.679 --> 0:13:30.079 Let's go to London and bring in Bloomberg Daybreak europe 0:13:30.080 --> 0:13:31.280 Banker Caroline Hepger. 0:13:31.640 --> 0:13:34.840 Nathan, I'm tempted to say that delivering the Milano Cortina 0:13:34.960 --> 0:13:38.880 twenty twenty six Winter Olympics maybe as tricky as pulling 0:13:38.880 --> 0:13:42.080 off one of those wild stunts in the freestyle big 0:13:42.120 --> 0:13:46.200 air competition. The Olympics is meant to be unifying, of course, 0:13:46.320 --> 0:13:50.440 but it can also serve to highlight geopolitical tensions between 0:13:50.600 --> 0:13:55.520 countries with concerns often about sportswashing. Then there's the issue 0:13:55.520 --> 0:13:59.000 of delivering the event, including all the venues in the Alps, 0:13:59.080 --> 0:14:03.400 on time and in some ways sustainably. For this Olympics, 0:14:03.440 --> 0:14:06.720 which begins on the sixth of February, followed by the 0:14:06.760 --> 0:14:11.239 Paralympics a month later in March, there has been considerable 0:14:11.240 --> 0:14:15.000 attention and protests by Italian officials over US plans to 0:14:15.080 --> 0:14:19.720 deployed some ICE staff to this year's event. Bloomberg understands 0:14:19.880 --> 0:14:22.240 that ICE agents will be in Italy as part of 0:14:22.280 --> 0:14:25.840 the security details for the Vice President JD Vance and 0:14:25.880 --> 0:14:29.720 Secuy of State Marco Rubio, according to an official from 0:14:29.760 --> 0:14:33.760 the US Secret Service, but the agency's role in an 0:14:33.800 --> 0:14:37.479 immigration crackdown at home is stirring opposition overseas. 0:14:38.240 --> 0:14:38.440 Now. 0:14:38.480 --> 0:14:41.600 This year's Olympics is also said against the backdrop of 0:14:41.680 --> 0:14:45.800 increasing division between the United States and Europe. Recently, the 0:14:45.920 --> 0:14:50.760 NATO Secretary General Mark Rutter told the European Parliament that 0:14:50.800 --> 0:14:55.160 the Transatlantic Alliance is vital to the region's survival. 0:14:55.800 --> 0:14:58.120 So when President Trump is doing good stuff IV operation, 0:14:59.240 --> 0:15:02.840 and I don't mind him publishing text messages, and if 0:15:02.880 --> 0:15:06.400 anyone thinks here again that the European Union or europerson 0:15:06.440 --> 0:15:09.680 Hall can dissent itself as out to us, keep on dreaming. 0:15:09.960 --> 0:15:12.480 You count, we count, We need each other. 0:15:12.800 --> 0:15:16.880 That was NATO's Mark Rutter speaking there so well. Italy's 0:15:16.920 --> 0:15:21.720 Winter Olympics feature more ice than they bargained for. Joining 0:15:21.760 --> 0:15:25.040 me now to discuss is Bloomberg's Milan bureau chief Tomaso 0:15:25.240 --> 0:15:29.080 eb Haarts. Tomaso, let's start by thinking about these Winter 0:15:29.200 --> 0:15:32.840 Olympics taking place in the Alps in the next few days. 0:15:33.040 --> 0:15:35.880 I suppose the first big question, and maybe it's always 0:15:35.960 --> 0:15:40.240 the case for the Olympics, are all the venues going 0:15:40.320 --> 0:15:41.040 to be ready? 0:15:41.640 --> 0:15:45.440 So those games will be spread all over the north 0:15:45.520 --> 0:15:49.400 of Italy, not just on the Alpso the main city 0:15:49.440 --> 0:15:53.440 where the opening ceremony will be Friday is Milana. And 0:15:53.480 --> 0:15:56.920 then you're going to have the different sports to be 0:15:57.000 --> 0:16:00.320 held in different locations. Fortina where you're going to have 0:16:00.760 --> 0:16:05.479 the women's ski races, You're going to have in Lombardy, Bormeo, 0:16:06.040 --> 0:16:10.560 You're going to have games also in the Suti Role region. 0:16:10.920 --> 0:16:15.080 So what is interesting is that somehow to reduce the 0:16:15.160 --> 0:16:18.680 cost of the Olympics, they have been spread ref location 0:16:18.840 --> 0:16:23.040 where essentially most of the venues were already built and ready. 0:16:23.760 --> 0:16:28.480 For example, the Vietnam will be held in anter Holz, 0:16:28.640 --> 0:16:31.880 which is already one of the most famous locations in 0:16:31.920 --> 0:16:33.920 the Alps for this kind of sport. There are some 0:16:34.000 --> 0:16:37.040 new venues, especially one Milan for highs hockey, which was 0:16:37.200 --> 0:16:41.480 just completed. There were just some criticism about how is 0:16:41.520 --> 0:16:43.720 it built, about the quality of the eyes, but it 0:16:43.800 --> 0:16:47.200 looks like it's almost ready. If you walk around the 0:16:47.240 --> 0:16:50.800 city in Milan, you see a lot of temporary building 0:16:50.880 --> 0:16:53.760 that will be used for the Olympics. While what I'm hearing, 0:16:53.800 --> 0:16:57.800 for example that in Cortina Adam Pazza on the Alps, 0:16:57.840 --> 0:17:00.920 not all everything that was meant to be built for 0:17:01.000 --> 0:17:05.600 the Olympic is rady, but for sure the infrastructure there 0:17:05.680 --> 0:17:08.480 was a huge investment in infrastructure. This is what probably 0:17:09.000 --> 0:17:12.400 was the most important investment for those Olympics. 0:17:12.440 --> 0:17:15.960 It's also really interesting Olympics because it's one of the 0:17:15.960 --> 0:17:18.880 first times in a long time that a Winter Olympics 0:17:19.000 --> 0:17:22.919 is going to be sort of within easy reach of 0:17:23.200 --> 0:17:27.760 US scheduling. And yet maybe a lot of the build 0:17:27.880 --> 0:17:30.960 up to the Winter Olympics is going to have been 0:17:30.960 --> 0:17:40.240 dominated by this spat, this disagreement around ice agents maybe 0:17:40.560 --> 0:17:44.959 or staff being involved in the Winter Olympics somehow, maybe 0:17:45.040 --> 0:17:47.879 just to protect high ranking US officials who are going 0:17:47.920 --> 0:17:50.320 to be visiting. But there's been quite a lot of 0:17:50.520 --> 0:17:54.200 pushback about it. Can you describe how the Italian government's 0:17:54.200 --> 0:17:55.080 been handling it? 0:17:55.560 --> 0:17:57.960 In the last week was a high hab on the 0:17:58.000 --> 0:18:02.760 debate in Italy the involvement of ICE in the Olympics. 0:18:03.280 --> 0:18:07.440 There were some Italian official or protested but vigorously, including 0:18:07.520 --> 0:18:12.760 Milian Mayor Giusepe Sala who, following the latest involvement of 0:18:12.840 --> 0:18:16.600 ICE in the US I, said they're not welcome in Milan. 0:18:16.920 --> 0:18:22.439 Then for days Italian official somehow tried to keep the 0:18:22.480 --> 0:18:26.480 situation under control until there was a meeting between the 0:18:26.520 --> 0:18:30.560 Italian Interior Minister and the US embassy in Rome. After 0:18:30.600 --> 0:18:35.280 that it was clear that ICE agents will be involved 0:18:35.920 --> 0:18:40.280 just within their domestic offices, so that means they will 0:18:40.320 --> 0:18:44.800 be deployed in the US consulate and this somehow as 0:18:44.920 --> 0:18:45.760 a calme a. 0:18:45.760 --> 0:18:46.560 Little bit attention. 0:18:47.680 --> 0:18:52.040 Some Italians are protesting clearly, and the Italian government had 0:18:52.200 --> 0:18:55.960 larified which will be the involvement of ice in the 0:18:56.119 --> 0:18:58.879 in the Olympics, And I have to say that clearly. 0:18:59.200 --> 0:19:02.840 The news great a lot of attention. 0:19:03.560 --> 0:19:06.560 Yeah, and Georgia Maloney of course, that the Prime Minister 0:19:07.000 --> 0:19:12.120 is often seen as a Trump ally. I suppose there's 0:19:12.160 --> 0:19:16.920 also maybe a question that whilst the Olympic officials want 0:19:17.040 --> 0:19:20.119 to present this, want to present sports, as is so 0:19:20.200 --> 0:19:23.640 often the case, as a kind of unifying message, there's 0:19:23.680 --> 0:19:27.479 a danger that it will highlight the divisions between Europe 0:19:27.520 --> 0:19:31.480 and the US that we've seen, you know, geopolitically. That's 0:19:31.560 --> 0:19:34.160 going to be surely quite hard to handle. 0:19:34.720 --> 0:19:38.439 Clearly, Maloney is seen as one of the European leader 0:19:38.520 --> 0:19:42.480 closer to Trump. She is a key figure at the 0:19:42.520 --> 0:19:49.439 moment in europea also because of the hair closer ties 0:19:49.480 --> 0:19:52.520 and other with the Trump. That doesn't mean that they 0:19:52.560 --> 0:19:55.840 are always on the same bench. For example, on Greenland, 0:19:56.320 --> 0:19:59.560 Maloney was aligned with the rest of the European leaders 0:20:00.760 --> 0:20:04.000 while answering to Trump's request. I think that what you 0:20:04.040 --> 0:20:08.360 said is clearly an interesting aspect during Olympics, not only 0:20:08.400 --> 0:20:10.720 the Olympic committee, but you know, the buzz should be 0:20:10.800 --> 0:20:14.720 on sport and not on a geopolitical tension. But you know, 0:20:14.760 --> 0:20:19.160 we're living quite i would say, a very interesting time 0:20:19.200 --> 0:20:21.720 in terms of geopolitical news. If you want to call 0:20:21.760 --> 0:20:24.760 them interesting and so clearly this is part of the 0:20:24.800 --> 0:20:27.440 public debate and will be also during the Olympics. For sure, 0:20:27.560 --> 0:20:31.080 the eyes of the world will be on Milan for 0:20:31.320 --> 0:20:35.040 the opening ceremony and then on the out for the Olympics. 0:20:34.840 --> 0:20:37.200 No doubt, I'm sure people are also getting very excited 0:20:37.240 --> 0:20:40.800 about it to watch. I mean, what are usually just 0:20:40.880 --> 0:20:45.240 spectacular events, aren't they The acrobatics and the kind of 0:20:45.320 --> 0:20:48.600 area display snowboarding and skiing and so on, which sort 0:20:48.640 --> 0:20:53.840 of brings me to snow. The other aspect of this 0:20:54.400 --> 0:20:58.640 is that climate change is affecting the Alps so deeply, 0:20:58.800 --> 0:21:01.680 and there's been a lot of anticipation about how much 0:21:01.720 --> 0:21:06.080 snowfall has been arriving. You know that there's been in 0:21:06.119 --> 0:21:09.120 the days leading up to this, and the creation obviously 0:21:09.119 --> 0:21:12.440 of fake snow you know where you kind of generate 0:21:12.480 --> 0:21:15.479 it for the ski slopes. Climate change is also huge 0:21:16.080 --> 0:21:16.760 good news. 0:21:16.840 --> 0:21:20.800 In the last couple of week there has been heavy 0:21:21.440 --> 0:21:24.680 snow falls on the Alps and on the Dolomites that 0:21:24.800 --> 0:21:30.200 were still start in summer mood until a few days ago, 0:21:30.440 --> 0:21:33.199 So there will be white Olympics. It's quite happy, but 0:21:33.320 --> 0:21:37.720 for sure, as it happens nowadays quite often in the 0:21:37.760 --> 0:21:41.800 Alps that most of the snow which was prepared for 0:21:41.880 --> 0:21:46.920 the Olympics was the snow that is also been prepared 0:21:47.200 --> 0:21:50.280 for tourists, because you know, the ski industry and the 0:21:50.320 --> 0:21:55.720 tourist industry is crucial. The atmosphere is changing, the altitude, 0:21:56.160 --> 0:21:59.800 snow is usually expected and it has some costs because 0:21:59.800 --> 0:22:01.960 if you want to ski and the reason not no, 0:22:02.200 --> 0:22:04.359 then you have to make the investment. And this is 0:22:04.400 --> 0:22:08.399 clearly a consequence of the higher temperatures we are seeing 0:22:08.800 --> 0:22:09.840 lastly Tomas. 0:22:09.840 --> 0:22:13.120 So what do you expect in terms of the economic 0:22:13.280 --> 0:22:19.159 impact of the games. There's also been this idea of sustainability. 0:22:19.200 --> 0:22:21.960 How do you make the Olympics every four years, whether 0:22:22.040 --> 0:22:25.479 it's frankly winter all summer, a bit more sustainable. You've 0:22:25.520 --> 0:22:28.080 sort of talked about that with the reuse or the 0:22:28.240 --> 0:22:31.960 using of current venues, but the economic impacts, what do 0:22:32.000 --> 0:22:32.479 you think? 0:22:33.440 --> 0:22:36.719 So one of the main aspects of these Olympic Games, 0:22:37.200 --> 0:22:42.920 this winter edition is that to avoid building new venues 0:22:43.040 --> 0:22:46.240 just for the Olympics that you won't be used anymore. 0:22:46.400 --> 0:22:51.600 That's why the games will be held in almost ten 0:22:51.640 --> 0:22:56.639 different locations where you already had the infrastructure ready in Italy. 0:22:56.680 --> 0:22:59.080 We headed the Olympics, the Winter Olympics in two thousand 0:22:59.119 --> 0:23:03.080 and six in a Turin and the Piedmont region, and 0:23:03.119 --> 0:23:06.320 there are some venues, especially one for the bob was 0:23:06.680 --> 0:23:11.280 not being used since those Olympics. So the plan has 0:23:11.359 --> 0:23:14.480 been since the beginning to avoid this reason. That's why 0:23:14.840 --> 0:23:17.520 you're going to have the games in very different locations, 0:23:17.520 --> 0:23:19.960 so the cost will go down, and there is also 0:23:19.960 --> 0:23:22.640 a matter of sustainability. The impact of the games. We're 0:23:22.640 --> 0:23:26.679 talking about five billion euros revenue and investment for the Games. 0:23:26.760 --> 0:23:31.040 The impact in this country is that essentially the Games 0:23:31.320 --> 0:23:35.720 were used to create new infrastructure, for example, road infrastructure 0:23:35.760 --> 0:23:38.479 to go to Cortinada and pets. A couple of new 0:23:38.520 --> 0:23:41.080 chunnels were just in agreat a few days before the 0:23:41.119 --> 0:23:46.080 Olympics are starting. So it's a way somehow to boost 0:23:46.119 --> 0:23:48.760 infrastructure in Italy, which is one of the main issues 0:23:48.800 --> 0:23:49.600 of the country. 0:23:50.840 --> 0:23:55.119 Yeah, absolutely great. Britain sending fifty three athletes the United 0:23:55.160 --> 0:23:58.080 States more than two hundred. Italy has actually got close 0:23:58.160 --> 0:24:00.000 to two hundred athletes are going to be going there. 0:24:00.080 --> 0:24:02.800 But as you say, tourism numbers will be something that 0:24:02.840 --> 0:24:06.639 will be watched closely. It's a huge platform, isn't it 0:24:06.680 --> 0:24:09.040 for Italy. Tomaso, thank you so much for being with 0:24:09.119 --> 0:24:13.320 me being interesting few weeks. Thank you, Jow Bloomberg's Milan 0:24:13.359 --> 0:24:16.960 Buia chief Tamaso Ebhart, and we'll be bringing you any 0:24:17.080 --> 0:24:20.399 interesting news stories from the Olympics sixth of February to 0:24:20.440 --> 0:24:23.479 the twenty second of February, of course, in the coming 0:24:23.640 --> 0:24:26.479 few days. I'm Caroline Hepka here in London. You can 0:24:26.520 --> 0:24:29.560