1 00:00:03,600 --> 00:00:06,160 Speaker 1: This is Bloomberg day Break Weekend, our global look at 2 00:00:06,160 --> 00:00:08,799 Speaker 1: the top stories in the coming week from our day 3 00:00:08,800 --> 00:00:10,959 Speaker 1: Break anchors all around the world, and straight ahead on 4 00:00:11,000 --> 00:00:14,520 Speaker 1: the program. Another big week coming for bank earnings. I'm 5 00:00:14,520 --> 00:00:15,920 Speaker 1: Tom Busby in New York. 6 00:00:16,000 --> 00:00:18,239 Speaker 2: I'm Stephen Carolin London with a Prime Minister and the 7 00:00:18,280 --> 00:00:20,200 Speaker 2: Bank of England. We'll be hoping there won't be another 8 00:00:20,280 --> 00:00:22,680 Speaker 2: unpleasant inflation surprise in store. 9 00:00:22,760 --> 00:00:24,880 Speaker 3: I'm Brian Curtis in Hong Kong. We look ahead the 10 00:00:24,960 --> 00:00:27,920 Speaker 3: Tesla's earnings and the company's progress in China. 11 00:00:28,040 --> 00:00:30,720 Speaker 4: I'm Kayleie Lyones in Washington, where we're getting ready for 12 00:00:30,800 --> 00:00:34,040 Speaker 4: Congress to come back to the capital after two week recess. 13 00:00:34,360 --> 00:00:36,360 Speaker 4: Watch for fireworks when they return. 14 00:00:37,200 --> 00:00:40,479 Speaker 5: That's all straight ahead on Bloomberg day Break Weekend on 15 00:00:40,640 --> 00:00:43,480 Speaker 5: Bloomberg Eleve Them three OW New York, Bloomberg In ninety 16 00:00:43,560 --> 00:00:47,120 Speaker 5: nine to one, Washington, d C, Bloomberg one O six one, Boston, 17 00:00:47,200 --> 00:00:52,000 Speaker 5: Bloomberg nine sixty, San Francisco, DAB Digital Radio, London, Sirius 18 00:00:52,120 --> 00:00:55,400 Speaker 5: XM one nineteen and around the world on Bloomberg Radio 19 00:00:55,480 --> 00:00:57,760 Speaker 5: dot com and via the Bloomberg Business App. 20 00:01:01,280 --> 00:01:03,240 Speaker 1: Good day to you. I'm Tom Busby, and we begin 21 00:01:03,280 --> 00:01:06,440 Speaker 1: today's program with all the first quarterbank earnings that began 22 00:01:06,560 --> 00:01:09,800 Speaker 1: this past Friday and continue in the coming week. Bloomberg 23 00:01:09,840 --> 00:01:13,720 Speaker 1: Wall Street reporter Shanalie Basic joining me now for some insight. Hello, 24 00:01:13,760 --> 00:01:16,800 Speaker 1: shanale I, am all right. Well, let's start with some 25 00:01:16,800 --> 00:01:19,760 Speaker 1: of the good news that we heard on Friday, particularly 26 00:01:20,040 --> 00:01:23,480 Speaker 1: upside earning surprises from the biggies, JP Morgan, Chase and 27 00:01:23,560 --> 00:01:24,080 Speaker 1: City Group. 28 00:01:24,520 --> 00:01:27,360 Speaker 6: Yeah, there are a few things. For JP Morgan in particular, 29 00:01:27,560 --> 00:01:30,600 Speaker 6: not only did they beat on revenue, they also had 30 00:01:30,640 --> 00:01:34,600 Speaker 6: some really interesting items within different lines of the banks. So, 31 00:01:34,720 --> 00:01:37,040 Speaker 6: for example, they said they were going to make billions 32 00:01:37,120 --> 00:01:41,640 Speaker 6: of dollars more in net interest income than was initially expected. 33 00:01:42,120 --> 00:01:44,400 Speaker 6: Another thing that happened though, was that they beat on 34 00:01:44,520 --> 00:01:48,000 Speaker 6: fixed income trading, and so you also saw an institutional 35 00:01:48,080 --> 00:01:51,560 Speaker 6: business do very well here relative to what was expected. 36 00:01:52,080 --> 00:01:55,200 Speaker 6: That was similar for Citygroup as well. Remember, the markets 37 00:01:55,200 --> 00:01:57,480 Speaker 6: are still very volatile, so the fact that they're still 38 00:01:57,520 --> 00:02:01,440 Speaker 6: making money from institutional clients are a big deal as 39 00:02:01,480 --> 00:02:03,640 Speaker 6: we watch some of the cracks in the market and 40 00:02:03,680 --> 00:02:06,560 Speaker 6: how they affect both the consumer and institutional clients. 41 00:02:07,200 --> 00:02:10,200 Speaker 1: Now, speaking of those cracks, JP Morgan, Chase CEO Jamie 42 00:02:10,200 --> 00:02:13,240 Speaker 1: Dimond told investors, you can count the number of troubled 43 00:02:13,280 --> 00:02:16,560 Speaker 1: banks on your hands. What does that tell us? 44 00:02:16,639 --> 00:02:19,040 Speaker 6: You know, nobody wants to be in a banking crisis. 45 00:02:19,120 --> 00:02:21,440 Speaker 6: Or you can use what Muhammad Alarian would say, and 46 00:02:21,480 --> 00:02:24,200 Speaker 6: he says it's a banking tremor, not a banking crisis. 47 00:02:24,639 --> 00:02:27,720 Speaker 6: And even with the struggles we're seeing with the likes 48 00:02:27,720 --> 00:02:30,200 Speaker 6: of Silicon Valley Bank, a lot of questions still around 49 00:02:30,200 --> 00:02:32,800 Speaker 6: for as Republic. But JP Morgan and City Group are 50 00:02:32,800 --> 00:02:37,000 Speaker 6: telling you that this is fairly contained. Now. JP Morgan 51 00:02:37,120 --> 00:02:41,120 Speaker 6: banks hundreds of banks in America as well. They're more 52 00:02:41,120 --> 00:02:44,680 Speaker 6: than four thousand of them. And there's a consensus here 53 00:02:44,680 --> 00:02:47,240 Speaker 6: among even the largest banks which have benefited a lot 54 00:02:47,360 --> 00:02:50,399 Speaker 6: from this kind of banking tremor crisis, whatever you want 55 00:02:50,400 --> 00:02:53,880 Speaker 6: to call it. The thing here is those regional banks 56 00:02:53,880 --> 00:02:56,080 Speaker 6: are really what touches a lot of America. They have 57 00:02:56,120 --> 00:02:58,679 Speaker 6: a lot of exposure to commercial real estate, for example, 58 00:02:58,960 --> 00:03:02,880 Speaker 6: small businesses which employ a lot of the American economy. 59 00:03:03,120 --> 00:03:05,280 Speaker 6: So if those regional banks face a lot of pressure, 60 00:03:05,280 --> 00:03:06,760 Speaker 6: which is really what we're going to see the bulk 61 00:03:06,800 --> 00:03:08,639 Speaker 6: of in terms of their earning cycle, the next couple 62 00:03:08,720 --> 00:03:12,520 Speaker 6: of weeks there could be ripple effects to any pains 63 00:03:12,560 --> 00:03:14,240 Speaker 6: those banks, the smaller banks would feel. 64 00:03:15,280 --> 00:03:17,680 Speaker 1: And in the earnings that we that we just had 65 00:03:17,720 --> 00:03:21,040 Speaker 1: on Friday, do we see the movement of a lot 66 00:03:21,080 --> 00:03:23,320 Speaker 1: of money, a lot of deposits coming out of those 67 00:03:23,360 --> 00:03:24,880 Speaker 1: regional banks and into the biggiaest. 68 00:03:25,000 --> 00:03:27,280 Speaker 6: It was most notable at JP Morgan, where they supposed 69 00:03:27,440 --> 00:03:31,040 Speaker 6: they posted a surprise increase in deposits. They had been 70 00:03:31,480 --> 00:03:34,639 Speaker 6: drawing down for the last couple of quarters here because 71 00:03:34,720 --> 00:03:37,720 Speaker 6: interest rates are still very high, people moving into money 72 00:03:37,720 --> 00:03:40,760 Speaker 6: market funds instead. JP Morgan is telling you that don't 73 00:03:40,800 --> 00:03:44,040 Speaker 6: expect this kind of increase in deposits to continue, even 74 00:03:44,080 --> 00:03:46,000 Speaker 6: what they took in in the wake of kind of 75 00:03:46,040 --> 00:03:49,360 Speaker 6: the Silicon Valley bank issue. They say that these are 76 00:03:49,400 --> 00:03:52,040 Speaker 6: not necessarily sticky deposits. They can go out the door 77 00:03:52,200 --> 00:03:54,200 Speaker 6: just as easily as they've come in. Of course, we 78 00:03:54,240 --> 00:03:57,080 Speaker 6: don't worry about deposits at JP Morgan. You know, I 79 00:03:57,080 --> 00:03:59,800 Speaker 6: want to say that their deposit base is probably bigger 80 00:03:59,840 --> 00:04:02,960 Speaker 6: here than the GDP of France. It's two point three 81 00:04:03,080 --> 00:04:06,280 Speaker 6: seven trillion dollars we're talking about in deposits at JP Morgan. 82 00:04:06,520 --> 00:04:10,440 Speaker 6: But again, you know, does that deposit movement cause fragilities 83 00:04:10,480 --> 00:04:13,040 Speaker 6: in the smaller banks. That's where it becomes more of 84 00:04:13,080 --> 00:04:13,560 Speaker 6: a question. 85 00:04:14,480 --> 00:04:16,640 Speaker 1: Now I want to touch on something you spoke about, 86 00:04:16,680 --> 00:04:19,719 Speaker 1: and that is higher interest rates and how these banks 87 00:04:20,000 --> 00:04:22,840 Speaker 1: benefited from the what's it been nine in a row 88 00:04:22,839 --> 00:04:26,279 Speaker 1: of increases from the Federal Reserve and maybe one or 89 00:04:26,320 --> 00:04:27,080 Speaker 1: two more to come. 90 00:04:27,360 --> 00:04:30,200 Speaker 6: The interesting thing about this is that if you look 91 00:04:30,200 --> 00:04:32,359 Speaker 6: at City Group and if you look at JP Morgan, 92 00:04:32,600 --> 00:04:36,000 Speaker 6: a lot of this is coming from their credit card portfolios. 93 00:04:36,279 --> 00:04:39,880 Speaker 6: So they're really getting more because people are borrowing more 94 00:04:40,040 --> 00:04:42,679 Speaker 6: from on their credit card debt. That's not the same, 95 00:04:42,760 --> 00:04:44,359 Speaker 6: by the way, as we know for a lot of 96 00:04:44,360 --> 00:04:47,640 Speaker 6: the regionals and for Wells Fargo, which is more heavily 97 00:04:47,680 --> 00:04:50,960 Speaker 6: tilted towards, for example, the mortgage market, which has been 98 00:04:50,960 --> 00:04:53,359 Speaker 6: facing a lot of pressures in this higher interest rate environment. 99 00:04:53,560 --> 00:04:56,920 Speaker 1: Oh yeah, and we just saw, speaking of credit cards, 100 00:04:57,360 --> 00:05:03,200 Speaker 1: retail sales dipping last last month. But still it's a 101 00:05:03,200 --> 00:05:05,800 Speaker 1: big pot that you know, we're spending a lot of money. 102 00:05:05,560 --> 00:05:07,400 Speaker 6: Americans, and it makes total sense. You see them in 103 00:05:07,400 --> 00:05:10,240 Speaker 6: the bank numbers. Also you see card spending up at 104 00:05:10,240 --> 00:05:13,800 Speaker 6: these banks. How long that continues for remember a couple 105 00:05:13,880 --> 00:05:16,640 Speaker 6: times this year. Jamie Diamond has said that the consumer 106 00:05:16,680 --> 00:05:18,040 Speaker 6: will start to hit a cliff at the end of 107 00:05:18,040 --> 00:05:21,159 Speaker 6: this year. So you have city groups saying that you 108 00:05:21,200 --> 00:05:24,480 Speaker 6: can expect kind of a soft or shallow recession, if 109 00:05:24,520 --> 00:05:26,440 Speaker 6: you will, maybe in the second half of this year. 110 00:05:26,880 --> 00:05:28,880 Speaker 6: But then you also have to take into account what 111 00:05:28,920 --> 00:05:32,080 Speaker 6: Jamie Diamond and JP Morgan has said about the uncertainties 112 00:05:32,080 --> 00:05:34,839 Speaker 6: that bake into twenty twenty four into next year. So 113 00:05:34,880 --> 00:05:37,360 Speaker 6: we're talking about a long horizon of uncertainty here. 114 00:05:37,839 --> 00:05:42,480 Speaker 1: So so despite the upbeat earnings, they are very cautious. 115 00:05:42,520 --> 00:05:45,440 Speaker 1: They are being cautious. They're telling investors it's not over. 116 00:05:45,360 --> 00:05:49,000 Speaker 6: Yet, certainly not. And even in their numbers alone, you 117 00:05:49,120 --> 00:05:52,599 Speaker 6: see them really preparing with higher provisions for credit losses, 118 00:05:53,000 --> 00:05:56,000 Speaker 6: even higher charge offs. The ninety day delinquency rate on 119 00:05:56,120 --> 00:05:58,320 Speaker 6: for example, JP Morgan's credit card book has ticked a 120 00:05:58,320 --> 00:05:59,080 Speaker 6: little higher. 121 00:05:59,200 --> 00:06:00,280 Speaker 7: They're well blow. 122 00:06:01,320 --> 00:06:05,240 Speaker 6: Levels we've seen that would be considered alarming. They're well 123 00:06:05,240 --> 00:06:08,760 Speaker 6: below that. JP Morgan calls it a normalization. We're getting 124 00:06:08,839 --> 00:06:11,480 Speaker 6: back to more normal levels. You're going to get more 125 00:06:11,560 --> 00:06:14,520 Speaker 6: losses as you're lending more. But all in all, I 126 00:06:14,560 --> 00:06:18,560 Speaker 6: mean JP Morgan is very profitable. In fact, in terms 127 00:06:18,560 --> 00:06:21,720 Speaker 6: of revenue, they just had a record corridor. So that 128 00:06:21,880 --> 00:06:26,520 Speaker 6: is pretty incredible considering all the worries that we had 129 00:06:26,560 --> 00:06:27,680 Speaker 6: gone into the quarter with. 130 00:06:28,120 --> 00:06:33,119 Speaker 1: Right, and now the cavalcade of earnings continues this coming 131 00:06:33,160 --> 00:06:36,799 Speaker 1: week and we hear from some the rest of the biggies, 132 00:06:37,200 --> 00:06:39,320 Speaker 1: a lot of the regional banks, even the small ones. 133 00:06:39,400 --> 00:06:42,400 Speaker 1: So what are we expecting to hear from Bank of America, 134 00:06:42,440 --> 00:06:45,640 Speaker 1: from Golden Sechs, from Morgan Stanley on the Bank. 135 00:06:45,520 --> 00:06:47,280 Speaker 6: Of of America front. I think it'll be interesting to 136 00:06:47,320 --> 00:06:49,480 Speaker 6: see what they say on that interesting income, given that 137 00:06:49,480 --> 00:06:52,000 Speaker 6: there's such a big lender to the American economy. Do 138 00:06:52,040 --> 00:06:53,960 Speaker 6: they say the same things as JP Morgan that they 139 00:06:54,080 --> 00:06:57,440 Speaker 6: expect more? Remember City Group didn't really change their outlook 140 00:06:57,480 --> 00:07:01,000 Speaker 6: for the year, and also JP Morgan City Group in particular, 141 00:07:01,040 --> 00:07:04,400 Speaker 6: their headcount has risen over the past year. How about 142 00:07:04,480 --> 00:07:08,279 Speaker 6: Bank of America Wages have risen also, so we know 143 00:07:08,360 --> 00:07:11,840 Speaker 6: that expenses tied to pay are rising, but how much 144 00:07:11,840 --> 00:07:14,400 Speaker 6: can banks really take on with that much uncertainty ahead? 145 00:07:14,720 --> 00:07:17,960 Speaker 6: There's also Schwab on Monday. Remember Schwab will be very 146 00:07:18,000 --> 00:07:21,320 Speaker 6: interesting because they've had a large sell off. They you know, 147 00:07:21,400 --> 00:07:24,960 Speaker 6: are very concerned and their investors rather are concerned about 148 00:07:24,960 --> 00:07:28,160 Speaker 6: people moving from deposits to money market funds. It's not 149 00:07:28,200 --> 00:07:31,000 Speaker 6: a question of viability of the firm necessarily, it's a 150 00:07:31,080 --> 00:07:34,680 Speaker 6: question of profitability and what will cause more pressures at 151 00:07:34,680 --> 00:07:38,200 Speaker 6: a place like Schwab. You also have Goldman, Zachs and 152 00:07:38,240 --> 00:07:40,960 Speaker 6: Morgan Stanley in the coming days after that. Like I said, 153 00:07:41,000 --> 00:07:45,120 Speaker 6: the institutions invest in banking fees are way down, but 154 00:07:45,760 --> 00:07:49,480 Speaker 6: Goldman in particular, if they find the same fixed income 155 00:07:49,560 --> 00:07:53,480 Speaker 6: trading figures or beats that JP Morgan and Citygroup had, 156 00:07:54,040 --> 00:07:56,960 Speaker 6: you know, their bankers are just fine. Let's put it 157 00:07:57,000 --> 00:07:57,400 Speaker 6: that way. 158 00:07:58,840 --> 00:07:59,000 Speaker 7: Now. 159 00:07:59,240 --> 00:08:02,760 Speaker 1: Some of the others, though, so that have truest is 160 00:08:02,800 --> 00:08:05,160 Speaker 1: one that we just heard news from them last week. 161 00:08:05,560 --> 00:08:08,040 Speaker 1: Fifth third key corpse, some of the second level or 162 00:08:08,080 --> 00:08:11,200 Speaker 1: third level of banks, and are we seeing a similar thing. 163 00:08:11,440 --> 00:08:13,320 Speaker 1: That's what you talked about. The ones that are the 164 00:08:13,360 --> 00:08:16,240 Speaker 1: regional banks that are really vital to smaller communities. 165 00:08:16,320 --> 00:08:18,320 Speaker 6: This is where it gets so stressful. The big banks 166 00:08:18,400 --> 00:08:20,960 Speaker 6: this quarter are they're very easy stories more or less. 167 00:08:21,160 --> 00:08:25,920 Speaker 6: But the regional banks, line by line number my number, 168 00:08:26,040 --> 00:08:28,040 Speaker 6: if I take a look at P and C all 169 00:08:28,080 --> 00:08:30,560 Speaker 6: through Friday had been kind of up and down in 170 00:08:30,600 --> 00:08:33,720 Speaker 6: the stock market. They were up, they were down, and 171 00:08:33,800 --> 00:08:37,800 Speaker 6: remember they were stable in their actual numbers. When you 172 00:08:37,840 --> 00:08:40,640 Speaker 6: looked at the deposit flows, they actually did better than 173 00:08:40,640 --> 00:08:44,200 Speaker 6: what Wallstreet had expected. So do we see the same 174 00:08:44,240 --> 00:08:46,120 Speaker 6: from M and T and Fifth Third and all of 175 00:08:46,120 --> 00:08:49,280 Speaker 6: these other regionals or did they for whatever reason face 176 00:08:49,640 --> 00:08:54,680 Speaker 6: stiffer outputs and deposits from their clients? You know, P 177 00:08:54,760 --> 00:08:56,560 Speaker 6: and C is based in Pittsburgh, some of them. Some 178 00:08:56,600 --> 00:08:59,600 Speaker 6: people say that these are regional differences. It tended to 179 00:08:59,600 --> 00:09:01,760 Speaker 6: be a lot of the California banks. People were concerned 180 00:09:01,800 --> 00:09:05,000 Speaker 6: about the concentration and some of those you know, First 181 00:09:05,040 --> 00:09:08,360 Speaker 6: Republic and Silicon Valley Bank kind of stories and their 182 00:09:08,720 --> 00:09:11,720 Speaker 6: balance sheets. But do you see those same pressures really 183 00:09:11,760 --> 00:09:14,760 Speaker 6: start to come across from the client base, at least 184 00:09:14,960 --> 00:09:17,760 Speaker 6: from a lot of these regionals. And then you have 185 00:09:17,800 --> 00:09:19,840 Speaker 6: to add the other question of what did their loan 186 00:09:19,840 --> 00:09:23,480 Speaker 6: books look like, which is another question that will continue 187 00:09:23,520 --> 00:09:26,760 Speaker 6: to be a worry throughout the year. Is if you're 188 00:09:26,800 --> 00:09:30,079 Speaker 6: worried about credit quality deteriorating, and some. 189 00:09:30,040 --> 00:09:33,400 Speaker 1: Of those regional banks obviously maybe on Jamie Diamond's list. 190 00:09:33,880 --> 00:09:37,640 Speaker 1: You know, we saw wild fluctuations at PacWest, a big 191 00:09:37,720 --> 00:09:40,840 Speaker 1: lender in the Los Angeles area, you know, which it 192 00:09:40,880 --> 00:09:43,880 Speaker 1: could be spillover from Silicon Valley Bank. But do we 193 00:09:43,920 --> 00:09:46,400 Speaker 1: have any idea what some of these where some of 194 00:09:46,400 --> 00:09:49,440 Speaker 1: these banks are are? Which banks he may be referring to. 195 00:09:49,840 --> 00:09:51,960 Speaker 6: Eh, which ones know? And you don't want to say 196 00:09:51,960 --> 00:09:53,959 Speaker 6: them either, because you don't want to cause any alarm. 197 00:09:54,040 --> 00:09:56,920 Speaker 6: But you know, it's interesting you named pac West. Something 198 00:09:56,960 --> 00:10:00,240 Speaker 6: interesting about PacWest was one thing they did to kind 199 00:10:00,240 --> 00:10:03,480 Speaker 6: of cooled down the market was they said that they 200 00:10:04,240 --> 00:10:06,200 Speaker 6: instead of going out to the market and raising money, 201 00:10:06,240 --> 00:10:10,440 Speaker 6: they got essentially, you know, credit facility from a private 202 00:10:11,040 --> 00:10:14,160 Speaker 6: firm named Atlas sp. This is a firm those started 203 00:10:14,160 --> 00:10:16,679 Speaker 6: by Apollo in the wake of credit sue and they 204 00:10:16,720 --> 00:10:19,760 Speaker 6: basically lent the money against a series of assets to 205 00:10:19,880 --> 00:10:22,480 Speaker 6: weather the storm. And so you know, we could see 206 00:10:22,480 --> 00:10:24,560 Speaker 6: more deals like that. It was a very interesting deal 207 00:10:24,600 --> 00:10:27,680 Speaker 6: that I know that a lot of investors wanted to model. 208 00:10:28,200 --> 00:10:31,480 Speaker 6: And it also showed you another thing that if these 209 00:10:31,520 --> 00:10:34,120 Speaker 6: banks want to tap the capital markets, if they want 210 00:10:34,160 --> 00:10:37,400 Speaker 6: to raise money. You know, when Silicon Valley Bank happened, 211 00:10:37,880 --> 00:10:41,359 Speaker 6: that wasn't possible. The market was closed to these banks. 212 00:10:41,679 --> 00:10:45,679 Speaker 6: But now they're finding other folks comes at a cost, 213 00:10:46,000 --> 00:10:48,040 Speaker 6: but they could raise money to make it through this 214 00:10:48,080 --> 00:10:49,560 Speaker 6: difficult environment if they need to. 215 00:10:49,679 --> 00:10:52,600 Speaker 1: An alternative means of raising money. Yeah from the past, 216 00:10:52,760 --> 00:10:55,840 Speaker 1: Thank you, Shanali. That was Bloomberg Wall Street reporter Shanali 217 00:10:55,920 --> 00:10:58,600 Speaker 1: Bassic And coming up on Bloomberg day Break weekend in 218 00:10:58,679 --> 00:11:02,000 Speaker 1: the UK, some key data coming our way ahead of 219 00:11:02,040 --> 00:11:05,840 Speaker 1: the Bank of England's next interest rate decision. I'm Tom Busby. 220 00:11:06,120 --> 00:11:16,400 Speaker 1: This is Bloomberg. This is Bloomberg Daybreak weekend, our global 221 00:11:16,440 --> 00:11:18,600 Speaker 1: look ahead at the top stories for investors in the 222 00:11:18,640 --> 00:11:21,480 Speaker 1: coming week. I'm Tom Busby in New York. Up later 223 00:11:21,520 --> 00:11:24,240 Speaker 1: in our program, watch for a lot of drama as 224 00:11:24,280 --> 00:11:26,760 Speaker 1: members of Congress get ready to return to Capitol Hill. 225 00:11:27,040 --> 00:11:29,800 Speaker 1: But first in the UK, we'll get some key data 226 00:11:29,840 --> 00:11:32,080 Speaker 1: in the coming days which will factor into the Bank 227 00:11:32,120 --> 00:11:35,280 Speaker 1: of England's next interest rate decision. Like the FED, the 228 00:11:35,360 --> 00:11:37,679 Speaker 1: UK Central Bank is thought to be close to ending 229 00:11:37,760 --> 00:11:41,720 Speaker 1: a hiking cycle, although the economic situation in Britain does 230 00:11:41,960 --> 00:11:44,640 Speaker 1: look quite different. Now for more, let's head to London 231 00:11:44,640 --> 00:11:48,479 Speaker 1: and bring in Bloomberg Daybreak Europe Banker Stephen Carroll, Stephen Tom. 232 00:11:48,280 --> 00:11:51,040 Speaker 2: The Prime Minister Iscisinak named halving the race of inflation 233 00:11:51,080 --> 00:11:53,400 Speaker 2: as one of his five key priorities for this year. 234 00:11:53,440 --> 00:11:56,200 Speaker 2: He'll be hoping that the CPI print from March starts 235 00:11:56,200 --> 00:11:58,640 Speaker 2: to show that trend after we had a surprise uptake 236 00:11:58,720 --> 00:12:01,640 Speaker 2: to ten point four percent in February. To discuss this 237 00:12:01,920 --> 00:12:03,760 Speaker 2: and some more of the data points we'll be unpacking 238 00:12:03,920 --> 00:12:06,160 Speaker 2: from the UK in the coming days, I'm joined by Boomberg, 239 00:12:06,320 --> 00:12:09,360 Speaker 2: senior UK economist Dan Hansen, and our UK correspondent Lizzi 240 00:12:09,360 --> 00:12:12,840 Speaker 2: Burdeness in studio with us as well. Dan, this February 241 00:12:12,840 --> 00:12:16,160 Speaker 2: CPI number was a shocker. Remind us what drove that? 242 00:12:17,559 --> 00:12:19,520 Speaker 8: Yeah, so we had we had to pick up in 243 00:12:20,360 --> 00:12:22,800 Speaker 8: a little well quite a big pickup actually. The surprising 244 00:12:22,920 --> 00:12:25,560 Speaker 8: core goods inflation, so clothing and footwear and also in 245 00:12:25,679 --> 00:12:29,080 Speaker 8: food inflation as well. They were the sources of surprises. 246 00:12:30,920 --> 00:12:33,760 Speaker 8: And we were expecting a reading of nine point nine percent. 247 00:12:34,080 --> 00:12:36,040 Speaker 8: It came in ten point four percent. The Bank of 248 00:12:36,040 --> 00:12:37,920 Speaker 8: England was expecting a reading of nine point nine percent. 249 00:12:37,960 --> 00:12:42,000 Speaker 8: So you're right, it was a big surprise. Looking ahead, 250 00:12:43,160 --> 00:12:46,160 Speaker 8: I think it will probably be seen as a blip. 251 00:12:47,880 --> 00:12:50,560 Speaker 8: And there are sort of two parts of this. One 252 00:12:50,640 --> 00:12:53,960 Speaker 8: part is you're just going to get these what economists 253 00:12:54,000 --> 00:12:57,120 Speaker 8: called base effects. So these these effects, these big price 254 00:12:57,200 --> 00:12:59,520 Speaker 8: rises last year falling out of the annual comparison, and 255 00:12:59,559 --> 00:13:01,800 Speaker 8: that's going to be part of the story in March. 256 00:13:01,840 --> 00:13:05,280 Speaker 8: It's going to become a more significant story in April 257 00:13:05,320 --> 00:13:07,120 Speaker 8: and later in the year when we get the falls 258 00:13:07,400 --> 00:13:11,119 Speaker 8: the rises in gas prices falling out of the annual comparison. 259 00:13:11,280 --> 00:13:13,480 Speaker 8: But I think looking to the March number we're going 260 00:13:13,520 --> 00:13:15,520 Speaker 8: to we think we're going to see drop back from 261 00:13:15,559 --> 00:13:17,280 Speaker 8: ten point four percent. We actually think we're going to 262 00:13:17,360 --> 00:13:21,120 Speaker 8: fall a little bit beneath ten percent. So it looks 263 00:13:21,160 --> 00:13:23,280 Speaker 8: like it's going to be a temporary blit a February figure. 264 00:13:23,400 --> 00:13:25,839 Speaker 2: Okay, And you mentioned the energy prices there, of course 265 00:13:25,920 --> 00:13:27,840 Speaker 2: one of the big drivers that pushed inflation up to 266 00:13:27,880 --> 00:13:31,520 Speaker 2: these levels in the end towards the end of last year. 267 00:13:32,080 --> 00:13:35,600 Speaker 2: Where is inflation looking stickier now or where within the 268 00:13:35,600 --> 00:13:37,360 Speaker 2: detail of the numbers should we be thinking about it? 269 00:13:37,440 --> 00:13:39,679 Speaker 8: Yes, I mean this is I mean it goes to 270 00:13:39,760 --> 00:13:42,120 Speaker 8: the Bank of England's thinking as well. So you've got 271 00:13:42,480 --> 00:13:44,480 Speaker 8: you've got this, You're right, you've got this energy component. 272 00:13:44,520 --> 00:13:46,839 Speaker 8: And over the course of this year, if wholesale energy 273 00:13:46,840 --> 00:13:49,880 Speaker 8: prices stay where they are at the moment, over the 274 00:13:49,880 --> 00:13:51,920 Speaker 8: course of this year, you're going to get about four 275 00:13:51,920 --> 00:13:55,240 Speaker 8: and a half percentage points off the headline rate of inflation, 276 00:13:55,320 --> 00:13:56,959 Speaker 8: So you're at ten point four at the moment. That's 277 00:13:56,960 --> 00:14:00,560 Speaker 8: going to get you to six, partly mechanically through base effects, 278 00:14:00,600 --> 00:14:03,319 Speaker 8: partly because we've had this fall in gas wholesale gas 279 00:14:03,360 --> 00:14:07,400 Speaker 8: prices since the start of the year. Where the stickiness 280 00:14:07,480 --> 00:14:09,960 Speaker 8: then comes, I think there are actually two bits of it. 281 00:14:10,040 --> 00:14:12,520 Speaker 8: One is is services inflation, and that's what the Bank 282 00:14:12,520 --> 00:14:15,719 Speaker 8: has said it's very focused on. But actually what has 283 00:14:15,800 --> 00:14:19,600 Speaker 8: probably been a bit stickier than most, including us, have 284 00:14:19,800 --> 00:14:23,320 Speaker 8: expected is the good side of the basket and where 285 00:14:23,480 --> 00:14:28,520 Speaker 8: the supply chain disruption really was the source of that inflation. 286 00:14:28,680 --> 00:14:31,960 Speaker 8: But actually it hasn't come down as quickly as we'd 287 00:14:32,000 --> 00:14:34,200 Speaker 8: been expecting all the Bank of England has been expecting, 288 00:14:34,320 --> 00:14:36,920 Speaker 8: So there is some stickiness there which is cause for concern. 289 00:14:37,600 --> 00:14:39,520 Speaker 8: But I think the really key area to watch in 290 00:14:39,600 --> 00:14:42,040 Speaker 8: terms of persistence, and going to your question, is services 291 00:14:42,040 --> 00:14:45,680 Speaker 8: and services inflation, which again jump back up in February. 292 00:14:46,480 --> 00:14:48,520 Speaker 8: We think it's going to ease slightly in March. 293 00:14:49,160 --> 00:14:50,880 Speaker 2: I mentioned as you see an max premise of having 294 00:14:50,920 --> 00:14:53,080 Speaker 2: inflation by the end of the year. Your colleague Jamie 295 00:14:53,120 --> 00:14:54,520 Speaker 2: Ross is scincly put it that you could put a 296 00:14:54,520 --> 00:14:56,960 Speaker 2: suttling pig in charge of the economy and inflation would 297 00:14:56,960 --> 00:14:58,720 Speaker 2: still fall by half by the end of the year. 298 00:14:59,160 --> 00:15:01,800 Speaker 2: How does the pig look a little bit further out 299 00:15:02,480 --> 00:15:03,480 Speaker 2: in terms of inflation. 300 00:15:03,680 --> 00:15:05,280 Speaker 8: Well, Jamie's got a much better wife of words. 301 00:15:06,200 --> 00:15:07,840 Speaker 2: I think he was a bit embarrassed after that. 302 00:15:08,080 --> 00:15:12,640 Speaker 8: Actually should be. It's not very becoming. But look, I 303 00:15:12,680 --> 00:15:15,080 Speaker 8: think I think he's going to get He's going to 304 00:15:15,120 --> 00:15:18,240 Speaker 8: meet his target. So I think Jamie's right, You're going 305 00:15:18,280 --> 00:15:21,640 Speaker 8: to get there predominantly through these base effects as as 306 00:15:21,640 --> 00:15:25,240 Speaker 8: we've mentioned, but I think there's going to be there 307 00:15:25,320 --> 00:15:28,800 Speaker 8: is going to be somewhat of a slowdown in other components. 308 00:15:28,840 --> 00:15:31,600 Speaker 8: So I think core goods will continue to ease in 309 00:15:31,680 --> 00:15:32,440 Speaker 8: terms of inflation. 310 00:15:32,560 --> 00:15:32,800 Speaker 5: There. 311 00:15:33,440 --> 00:15:35,520 Speaker 8: Food inflation I think will come off a little bit. 312 00:15:35,600 --> 00:15:37,960 Speaker 8: It's it's extremely high at the moment, and it's probably 313 00:15:37,960 --> 00:15:40,800 Speaker 8: going to pick up again in the March report. But 314 00:15:40,800 --> 00:15:42,960 Speaker 8: I think it's going to come off and on our 315 00:15:43,000 --> 00:15:46,160 Speaker 8: forecast you get to three percent by the end of 316 00:15:46,160 --> 00:15:49,520 Speaker 8: the year headline inflation. But I think what that masks 317 00:15:50,040 --> 00:15:53,040 Speaker 8: is core inflation, which we think is going to end 318 00:15:53,040 --> 00:15:55,680 Speaker 8: the year about four and a half percent, so significantly higher. 319 00:15:56,080 --> 00:15:59,400 Speaker 8: And that again reflects this mainly reflects services inflation, but 320 00:15:59,440 --> 00:16:01,360 Speaker 8: also what I'm on the good side as well. 321 00:16:01,560 --> 00:16:03,520 Speaker 2: Another piece of the economic puzzle that we're going to 322 00:16:03,560 --> 00:16:05,880 Speaker 2: learn more about next week is the labor market. We've 323 00:16:05,880 --> 00:16:08,240 Speaker 2: got jobs data out the UK's had a particular problem 324 00:16:08,320 --> 00:16:11,680 Speaker 2: with participation post the pandemic as well. Are we likely 325 00:16:11,720 --> 00:16:13,240 Speaker 2: to see any improvement in that front? 326 00:16:13,800 --> 00:16:15,320 Speaker 8: So I think what you're going to see from the 327 00:16:15,400 --> 00:16:19,040 Speaker 8: jobs the job's data is a steady unemployment rate. So 328 00:16:19,400 --> 00:16:21,480 Speaker 8: this has been a bit of a theme this year 329 00:16:21,600 --> 00:16:23,880 Speaker 8: of the economy doing a little bit better, the labor 330 00:16:23,920 --> 00:16:26,560 Speaker 8: market's staying a little bit tighter than people thought and 331 00:16:26,680 --> 00:16:32,120 Speaker 8: not cooling as quickly. But the sort of the interesting 332 00:16:32,160 --> 00:16:34,280 Speaker 8: side of this is how quickly wage growth seems to 333 00:16:34,280 --> 00:16:36,480 Speaker 8: be cooling. So if you look on if you look 334 00:16:36,520 --> 00:16:39,680 Speaker 8: at the headline measures of wage growth, we think private 335 00:16:39,720 --> 00:16:42,280 Speaker 8: sector regular pay is going to fall from seven percent 336 00:16:42,520 --> 00:16:44,600 Speaker 8: to six and a half percent, which is a big 337 00:16:44,680 --> 00:16:47,440 Speaker 8: drop down. But actually if you look on an underlying basis, 338 00:16:47,480 --> 00:16:50,240 Speaker 8: so the headline measures a year on year three months 339 00:16:50,320 --> 00:16:52,160 Speaker 8: moving average. It takes a long time for the numbers 340 00:16:52,200 --> 00:16:54,720 Speaker 8: to sort of call and fall off. But if you 341 00:16:54,760 --> 00:17:00,760 Speaker 8: look at sort of more timely time, more timely picture 342 00:17:00,880 --> 00:17:04,520 Speaker 8: of the underlying wage picture, actually it's actually calling very quickly. 343 00:17:04,760 --> 00:17:07,159 Speaker 8: Now that's obviously not consistent with a title what you 344 00:17:07,200 --> 00:17:10,840 Speaker 8: would expect in a tight labor market and with expectations 345 00:17:10,840 --> 00:17:15,159 Speaker 8: inflation expectations, pay expectations up at sort of five percent 346 00:17:15,280 --> 00:17:17,800 Speaker 8: mark at least in the near term. But there is 347 00:17:17,840 --> 00:17:20,919 Speaker 8: a story there that is really important, particularly for the 348 00:17:21,280 --> 00:17:23,639 Speaker 8: Bank of England, and that's something that we're going to 349 00:17:23,680 --> 00:17:26,600 Speaker 8: be really focused on in the next jobs release. 350 00:17:26,880 --> 00:17:30,720 Speaker 2: Yeah, At Lizziebriddan, you've been waiting patiently to listening into 351 00:17:30,720 --> 00:17:32,639 Speaker 2: this conversation as well. But I know the story that 352 00:17:32,640 --> 00:17:34,639 Speaker 2: you've been following is that the change in the makeup 353 00:17:34,680 --> 00:17:37,000 Speaker 2: of the Bank of Englands Monetary Policy Committee won't affect 354 00:17:37,040 --> 00:17:40,040 Speaker 2: the next meeting. But tell us about Meghan Green who's 355 00:17:40,080 --> 00:17:40,800 Speaker 2: joining the NPC. 356 00:17:41,080 --> 00:17:44,199 Speaker 9: Yeah, not the meeting after that. It's the replacement for 357 00:17:44,280 --> 00:17:48,280 Speaker 9: Silvana ten Reiro. She is currently Global Chief Economist at 358 00:17:48,320 --> 00:17:51,760 Speaker 9: the Crawl Institute. She's got a background in financial services, 359 00:17:51,800 --> 00:17:55,760 Speaker 9: also in academia, and you know, it's a difficult, delicate 360 00:17:55,800 --> 00:17:59,680 Speaker 9: moment to be joining the MPC because we're nearing the 361 00:17:59,760 --> 00:18:02,200 Speaker 9: end of the tightening cycle. You've had eleven straight hikes 362 00:18:02,240 --> 00:18:06,800 Speaker 9: so far. And this debate currently is between Silvana Tanrairo, 363 00:18:07,040 --> 00:18:10,120 Speaker 9: who Green's replacing, and Swatti Dingra at the duvish end, 364 00:18:10,200 --> 00:18:12,200 Speaker 9: and then at the hawkish end of the spectrum Catherine 365 00:18:12,280 --> 00:18:15,600 Speaker 9: Mann about whether it's time to pause. As Dan says, 366 00:18:16,560 --> 00:18:19,359 Speaker 9: Dan I noted putting a foot in both camps, whether 367 00:18:19,640 --> 00:18:24,320 Speaker 9: it's going to be a hold or a hike. But 368 00:18:24,480 --> 00:18:27,920 Speaker 9: fortunately Megan Green is a regular on Bloomberg TV and radio, 369 00:18:28,000 --> 00:18:29,639 Speaker 9: so we've had a bit of an insight into her 370 00:18:29,680 --> 00:18:33,800 Speaker 9: thoughts already. Recently she's said that she's concerned about the 371 00:18:33,840 --> 00:18:37,719 Speaker 9: impact of tightening monetary policy on the banking system, and 372 00:18:37,760 --> 00:18:39,719 Speaker 9: she said it more in the context of the US, 373 00:18:40,080 --> 00:18:42,600 Speaker 9: but it's very applicable in the UK as well, because 374 00:18:42,640 --> 00:18:44,800 Speaker 9: of course we've had the fallout of Credit Swee and 375 00:18:44,920 --> 00:18:48,440 Speaker 9: Silicon Valley Bank. This was a question that was raised 376 00:18:48,440 --> 00:18:50,800 Speaker 9: around the last meeting at the Bank of England. Have 377 00:18:51,119 --> 00:18:53,520 Speaker 9: financial conditions tightened so much that the work of the 378 00:18:53,520 --> 00:18:56,119 Speaker 9: Bank of England has been done for it and so 379 00:18:56,520 --> 00:18:59,800 Speaker 9: it's interesting that she has already had this view out there, 380 00:19:00,560 --> 00:19:03,240 Speaker 9: and given her financial services background, we know that she's 381 00:19:03,359 --> 00:19:04,040 Speaker 9: very aware of it. 382 00:19:04,720 --> 00:19:08,040 Speaker 2: How will her appointment affect the balance then on the committee? 383 00:19:08,280 --> 00:19:11,639 Speaker 9: I mean it's hard. I think as Dan's colleague Anna 384 00:19:11,960 --> 00:19:17,520 Speaker 9: noted to be more dubvish than Silvana Tenreiro. She's voted 385 00:19:17,560 --> 00:19:19,840 Speaker 9: to hold at the past three meetings. She's even been 386 00:19:19,880 --> 00:19:23,919 Speaker 9: talking about cutting rates before she leaves the committee. So 387 00:19:24,320 --> 00:19:27,480 Speaker 9: it seems that this appointment can be nothing but a 388 00:19:27,560 --> 00:19:31,240 Speaker 9: tilt to the hawkish side, no matter how duvish Meghan. 389 00:19:31,000 --> 00:19:31,600 Speaker 8: Green may be. 390 00:19:32,240 --> 00:19:34,160 Speaker 9: But the reality is she isn't going to take her 391 00:19:34,200 --> 00:19:36,959 Speaker 9: seat until two meetings time. As I say, the hiking 392 00:19:37,000 --> 00:19:41,080 Speaker 9: cycle could be over by then. More interesting perhaps for 393 00:19:41,440 --> 00:19:46,360 Speaker 9: our UK listeners then is her open criticism of Brexit 394 00:19:46,720 --> 00:19:51,200 Speaker 9: on Twitter, and she might have to rein that in 395 00:19:51,480 --> 00:19:53,840 Speaker 9: if she joins the now that she's joining the MPC. 396 00:19:54,200 --> 00:19:56,680 Speaker 2: Okay, Lizzie Burden, thank you very much, a UK correspondent 397 00:19:56,760 --> 00:19:59,800 Speaker 2: under senior UK economist Dan Hansen as well. I'm Stephen 398 00:19:59,800 --> 00:20:02,320 Speaker 2: CA in London. You can catch us every weekday morning 399 00:20:02,320 --> 00:20:04,840 Speaker 2: here for Bloomberg Daybreak. You're at beginning at six am 400 00:20:04,840 --> 00:20:07,000 Speaker 2: in London and one am on Wall Streets. 401 00:20:07,119 --> 00:20:09,719 Speaker 1: Tom, thank you Steven, and coming up on Bloomberg day 402 00:20:09,720 --> 00:20:13,160 Speaker 1: Break weekend. Could be a contentious week on Capitol Hill, 403 00:20:13,200 --> 00:20:16,480 Speaker 1: and we'll tell you why. I'm Tom Busby and this is. 404 00:20:16,440 --> 00:20:29,400 Speaker 5: Bloomberg Broadcasting live from the Bloomberg It a active brokers 405 00:20:29,440 --> 00:20:32,840 Speaker 5: studio in New York. Bloomberg e levon free oh to Washington, 406 00:20:32,960 --> 00:20:36,240 Speaker 5: d C, Bloomberg ninety nine one to Boston, Bloomberg one 407 00:20:36,280 --> 00:20:39,520 Speaker 5: O six one to San Francisco, Bloomberg nine sixty to 408 00:20:39,600 --> 00:20:43,360 Speaker 5: the country, Sirius XM Channel one nineteen to London DAB 409 00:20:43,640 --> 00:20:46,960 Speaker 5: Digital radio, and around the globe the Bloomberg Business app 410 00:20:47,040 --> 00:20:56,919 Speaker 5: in Bloomberg Radio dot Com. This is Bloomberg Daybreak Weekend. 411 00:20:57,400 --> 00:20:59,560 Speaker 1: I'm Tom Busby in New York with your global look 412 00:20:59,560 --> 00:21:02,080 Speaker 1: ahead at the top stories for investors in the coming week. 413 00:21:02,720 --> 00:21:05,040 Speaker 1: A lot of travel this weekend for many Senators and 414 00:21:05,080 --> 00:21:08,240 Speaker 1: representatives as they make their way back to Capitol Hill 415 00:21:08,440 --> 00:21:11,520 Speaker 1: after more than two weeks of spring and Easter break. 416 00:21:11,560 --> 00:21:13,720 Speaker 1: The House and Senate will be back this week for 417 00:21:13,840 --> 00:21:16,880 Speaker 1: what could be a ten session. Now for more, let's 418 00:21:16,880 --> 00:21:19,480 Speaker 1: head to our Bloomberg ninety nine One newsroom in Washington 419 00:21:19,880 --> 00:21:22,760 Speaker 1: and Bloomberg Sound on host Kaylee Lines. 420 00:21:22,960 --> 00:21:27,879 Speaker 4: Kaylee, thanks Tom, that's right. Guess who's back back again? Almost. 421 00:21:28,160 --> 00:21:29,879 Speaker 4: Congress is going to get back to work here in 422 00:21:30,000 --> 00:21:33,240 Speaker 4: Washington next week after a two week hiatus around the 423 00:21:33,240 --> 00:21:36,640 Speaker 4: Easter and Passover holidays. But as we well know, there 424 00:21:36,640 --> 00:21:40,000 Speaker 4: are a lot of issues that Republicans and Democrats don't 425 00:21:40,160 --> 00:21:42,880 Speaker 4: agree on, so there remains a question of how much 426 00:21:42,920 --> 00:21:46,480 Speaker 4: work really can get done. We're joined now by Bloomberg 427 00:21:46,480 --> 00:21:49,080 Speaker 4: Government reporter Emily Wilkins for a look at the top 428 00:21:49,119 --> 00:21:52,520 Speaker 4: priorities as we get back to business on the Hill. 429 00:21:52,800 --> 00:21:54,760 Speaker 4: And Emily, I say the Hill, and I'm talking about 430 00:21:54,840 --> 00:21:58,240 Speaker 4: lawmakers being back in DC. But actually we're going to 431 00:21:58,280 --> 00:22:00,760 Speaker 4: start the week with one key lawmaker in New York. 432 00:22:00,880 --> 00:22:03,480 Speaker 4: How Speaker Kevin McCarthy getting said to give a speech 433 00:22:03,480 --> 00:22:06,680 Speaker 4: to the New York Stock Exchange at ten am on Monday. 434 00:22:07,000 --> 00:22:11,000 Speaker 7: Why so, I think with the debt limit coming up, 435 00:22:11,040 --> 00:22:13,800 Speaker 7: it is certainly the biggest news in Washington, and I 436 00:22:13,800 --> 00:22:16,520 Speaker 7: think McCarthy is really trying to make that clear connection 437 00:22:16,920 --> 00:22:19,720 Speaker 7: to Wall Street and to Washington to say, hey, look, 438 00:22:20,080 --> 00:22:22,800 Speaker 7: this thing's coming up. Republicans are going to hold firm. 439 00:22:22,880 --> 00:22:25,639 Speaker 7: We absolutely demand that's spending be cut, and that's the 440 00:22:25,680 --> 00:22:27,880 Speaker 7: only way that we're going to move a deal forward. 441 00:22:27,920 --> 00:22:29,679 Speaker 7: So this is him kind of doing a little bit 442 00:22:29,680 --> 00:22:33,080 Speaker 7: of expectations setting really kind of think going up to 443 00:22:33,119 --> 00:22:35,640 Speaker 7: Wall Street, because sometimes I think Wall Street and DC 444 00:22:35,840 --> 00:22:38,360 Speaker 7: don't always communicate as well as they could with each other, 445 00:22:38,680 --> 00:22:40,800 Speaker 7: and I think McCarthy is really trying to make a 446 00:22:40,840 --> 00:22:44,920 Speaker 7: statement here by delivering this speech up in New York. 447 00:22:45,600 --> 00:22:47,760 Speaker 7: At the same point. You know, we learned last week 448 00:22:47,960 --> 00:22:51,240 Speaker 7: that Republicans are planning on putting out a more detailed 449 00:22:51,280 --> 00:22:54,879 Speaker 7: debt limit proposal. It'll be packed with conservative priorities. We 450 00:22:54,920 --> 00:22:56,879 Speaker 7: certainly don't think that this is going to be the 451 00:22:56,920 --> 00:22:59,760 Speaker 7: thing that actually winds up raising the debt limit. But 452 00:23:00,080 --> 00:23:02,680 Speaker 7: Republicans say, hey, we're going to put something together. We'll 453 00:23:02,680 --> 00:23:04,840 Speaker 7: put it out there, and then the ball is in 454 00:23:05,000 --> 00:23:07,760 Speaker 7: the White House's court. They really want Biden and Kevin 455 00:23:07,840 --> 00:23:10,879 Speaker 7: McCarthy to sit down again and begin negotiating, and the 456 00:23:10,880 --> 00:23:13,320 Speaker 7: White House said, hey, if you want to negotiate, we 457 00:23:13,359 --> 00:23:15,719 Speaker 7: need an actual plan. And so this is the Republicans 458 00:23:15,760 --> 00:23:17,000 Speaker 7: working to deliver on that. 459 00:23:17,800 --> 00:23:22,040 Speaker 4: Okay, so maybe maybe a first step forward I will 460 00:23:22,080 --> 00:23:25,080 Speaker 4: bring the focus to Washington, specifically Emily, I promise, but 461 00:23:25,119 --> 00:23:26,800 Speaker 4: we have to talk about the other thing that's going 462 00:23:26,840 --> 00:23:29,399 Speaker 4: to happen in New York. Also at the beginning of 463 00:23:29,480 --> 00:23:32,879 Speaker 4: the week, Jim Jordan and House Judiciary Republicans holding a 464 00:23:32,920 --> 00:23:37,080 Speaker 4: field hearing in Manhattan, talking in theory about the crime 465 00:23:37,160 --> 00:23:40,880 Speaker 4: policies of District Attorney Alvin Bragg. But this is basically 466 00:23:40,880 --> 00:23:43,360 Speaker 4: about the Trump indictment, right, This. 467 00:23:43,400 --> 00:23:46,159 Speaker 7: Is absolutely about the Trump indictment. Alvin Bragg was not 468 00:23:46,240 --> 00:23:49,560 Speaker 7: something that Jim Jordan was interested in before the indictment 469 00:23:49,600 --> 00:23:52,960 Speaker 7: came down. And this is really what Republicans strategy has 470 00:23:53,080 --> 00:23:56,200 Speaker 7: been in terms of how they are addressing the fact 471 00:23:56,280 --> 00:23:59,680 Speaker 7: that one of the leading nominees for their party's presidential 472 00:23:59,720 --> 00:24:02,840 Speaker 7: can and it is currently under the process of being indicted. 473 00:24:03,280 --> 00:24:05,840 Speaker 7: And so with that, they've they've really honed in on 474 00:24:05,920 --> 00:24:09,040 Speaker 7: Alvin Bragg. They've really honed in on his policies. And 475 00:24:09,080 --> 00:24:12,080 Speaker 7: it's also interesting to note, Kayley, the strategy that Republicans 476 00:24:12,119 --> 00:24:15,200 Speaker 7: have taken up of doing these field hearings. This is 477 00:24:15,240 --> 00:24:18,080 Speaker 7: the thought that Republicans have had sort of making sure 478 00:24:18,119 --> 00:24:21,399 Speaker 7: that they are going out to various communities and places 479 00:24:21,440 --> 00:24:24,760 Speaker 7: around the country that they're kind of getting FaceTime with voters, 480 00:24:24,760 --> 00:24:27,280 Speaker 7: that they're able to have these events. This is kind 481 00:24:27,280 --> 00:24:29,280 Speaker 7: of a way, you know, Republicans, they're not going to 482 00:24:29,280 --> 00:24:31,280 Speaker 7: be able to move a lot of their priorities through 483 00:24:31,320 --> 00:24:33,800 Speaker 7: with the Democratic Senate and of course Biden in the 484 00:24:33,800 --> 00:24:35,920 Speaker 7: White House, and so this is a way for them 485 00:24:36,000 --> 00:24:37,920 Speaker 7: to kind of almost in a way, hit the campaign 486 00:24:37,960 --> 00:24:41,200 Speaker 7: trail early. And of course New York is absolutely key 487 00:24:41,280 --> 00:24:45,240 Speaker 7: for Republicans. Republicans would not have the majority that they 488 00:24:45,280 --> 00:24:48,520 Speaker 7: have right now if a number of Republicans representing New 489 00:24:48,600 --> 00:24:51,640 Speaker 7: York had flipped seats, and so it's really a key 490 00:24:51,680 --> 00:24:54,480 Speaker 7: state for them. It's not surprising that that they picked 491 00:24:54,480 --> 00:24:57,639 Speaker 7: to go there, and certainly with Alvin Bragg, that plays 492 00:24:57,720 --> 00:24:59,920 Speaker 7: right into the narrative that Republicans are trying to put, 493 00:25:00,000 --> 00:25:02,919 Speaker 7: which is kind of lots of a focus on what 494 00:25:03,000 --> 00:25:05,760 Speaker 7: Trump did and more of a focus on what Alvin 495 00:25:05,800 --> 00:25:08,439 Speaker 7: Bragg has done and whether or not he should have 496 00:25:08,520 --> 00:25:09,960 Speaker 7: pressed those charges to be in with. 497 00:25:10,760 --> 00:25:14,119 Speaker 4: Okay, so if the House Judiciary Committee is focused on 498 00:25:14,240 --> 00:25:16,760 Speaker 4: Alvin Bragg and the Trump issue, let's talk about what 499 00:25:16,800 --> 00:25:19,480 Speaker 4: the Senate Judiciary Committee may be focused on as well, 500 00:25:19,480 --> 00:25:22,840 Speaker 4: and whether or not that really translates to the House. 501 00:25:23,240 --> 00:25:27,040 Speaker 4: While Congress was away, the pro publica peace on Supreme 502 00:25:27,040 --> 00:25:31,680 Speaker 4: Court Justice Clarence Thomic ethics around him and his dealings 503 00:25:31,760 --> 00:25:35,639 Speaker 4: with a billionaire. We know that the Senate Judiciary is 504 00:25:35,680 --> 00:25:37,479 Speaker 4: saying they want to hold hearings about it. They are 505 00:25:37,560 --> 00:25:40,520 Speaker 4: highly engaged with this, it seems, but the House is 506 00:25:40,600 --> 00:25:44,040 Speaker 4: under different leaderships, so could anything really happen there. 507 00:25:45,600 --> 00:25:47,080 Speaker 7: I'm not really sure we're going to see a big 508 00:25:47,119 --> 00:25:50,040 Speaker 7: focus on this in the House. Republicans have plenty of 509 00:25:50,080 --> 00:25:52,199 Speaker 7: other things that they'd like to focus on at this 510 00:25:52,280 --> 00:25:55,680 Speaker 7: point in time, and I just don't really see what motivation, 511 00:25:55,840 --> 00:25:58,679 Speaker 7: if any, they would have now. Certainly that kind of 512 00:25:59,040 --> 00:26:02,919 Speaker 7: when we're talking in terms of hearings an official legislation 513 00:26:03,000 --> 00:26:05,760 Speaker 7: moving on the floor, I would not be surprised at 514 00:26:05,760 --> 00:26:08,200 Speaker 7: all if Democrats tried to make this a talking point, 515 00:26:08,240 --> 00:26:12,399 Speaker 7: if you saw them reintroduce legislation that deals with transparency 516 00:26:12,560 --> 00:26:16,800 Speaker 7: and reporting for judges in terms of what donations they're getting, 517 00:26:17,720 --> 00:26:20,120 Speaker 7: kind of trying to bring some more transparency there. There 518 00:26:20,160 --> 00:26:22,919 Speaker 7: was something that was discussed in the previous Congress. It 519 00:26:22,960 --> 00:26:25,880 Speaker 7: didn't wind up go moving through, partly because there are 520 00:26:25,880 --> 00:26:28,840 Speaker 7: just so many other priorities at this point, but it 521 00:26:28,880 --> 00:26:31,639 Speaker 7: certainly could be something that we wind up hearing more about. 522 00:26:31,720 --> 00:26:34,119 Speaker 7: I just think at this time, between the debt limit, 523 00:26:34,160 --> 00:26:37,000 Speaker 7: between border security, between nominees that need to go through 524 00:26:37,040 --> 00:26:40,919 Speaker 7: the Senate, between just other issues in general, this is 525 00:26:40,960 --> 00:26:43,760 Speaker 7: one that I can easily see falling through the cracks. 526 00:26:44,240 --> 00:26:46,520 Speaker 4: Yeah, it's a very good point on how there's all 527 00:26:46,560 --> 00:26:50,120 Speaker 4: these competing priorities here potentially. But it strikes me as well, Emily, 528 00:26:50,200 --> 00:26:53,000 Speaker 4: that the piece about Clarence Thomas was just one of 529 00:26:53,040 --> 00:26:56,119 Speaker 4: the real kind of news making events that happened while 530 00:26:56,640 --> 00:27:00,479 Speaker 4: we While Congress was on recess, you also had a 531 00:27:00,520 --> 00:27:04,440 Speaker 4: meeting between McCarthy and Taiwan's president saying Wang. You had 532 00:27:05,080 --> 00:27:08,879 Speaker 4: another mass shooting in Louisville, Kentucky. You had the expelling 533 00:27:08,920 --> 00:27:11,880 Speaker 4: of lawmakers in the Tennessee House, who of course now 534 00:27:11,920 --> 00:27:17,120 Speaker 4: have returned. There has been so many things, including competing 535 00:27:17,320 --> 00:27:20,919 Speaker 4: court rulings on abortion pills as well. Is any of 536 00:27:20,960 --> 00:27:23,880 Speaker 4: that likely to get immediate attention in Congress or are 537 00:27:23,920 --> 00:27:27,000 Speaker 4: these bigger, overarching issues that have been hanging over their 538 00:27:27,040 --> 00:27:29,240 Speaker 4: heads for a while going to take priority. 539 00:27:30,800 --> 00:27:32,840 Speaker 7: I think at this point, when we look at what 540 00:27:32,920 --> 00:27:34,960 Speaker 7: we know that the House that Senate are going to 541 00:27:34,960 --> 00:27:37,880 Speaker 7: be handling next week. They're kind of almost picking up 542 00:27:37,960 --> 00:27:41,160 Speaker 7: where they left off several weeks ago. So these are 543 00:27:41,200 --> 00:27:44,119 Speaker 7: things where the House they're planning on doing a vote 544 00:27:44,160 --> 00:27:48,000 Speaker 7: on a bill about transgender student athletes, trying to ban 545 00:27:48,160 --> 00:27:51,840 Speaker 7: them from playing sports and schools that receive federal funding 546 00:27:52,160 --> 00:27:54,560 Speaker 7: or at least you know, not on the it would 547 00:27:54,560 --> 00:27:56,560 Speaker 7: have to be to the team to the gender that 548 00:27:56,600 --> 00:28:00,000 Speaker 7: they were born rather than the gender that they identif 549 00:28:00,119 --> 00:28:03,159 Speaker 7: fi as, And you know, that's something that you know 550 00:28:03,359 --> 00:28:06,159 Speaker 7: isn't really you know, one of the big things that 551 00:28:06,280 --> 00:28:09,040 Speaker 7: happened over the last two weeks. I mean, we know 552 00:28:09,119 --> 00:28:11,440 Speaker 7: that the Senate is going to be holding some hearings 553 00:28:11,520 --> 00:28:14,280 Speaker 7: on trained derailment bills. They still have to deal with 554 00:28:14,359 --> 00:28:17,600 Speaker 7: that from a couple months ago. And we know that 555 00:28:17,640 --> 00:28:21,439 Speaker 7: they're taking a look at authorization for military funding. So 556 00:28:21,600 --> 00:28:24,199 Speaker 7: a lot of this stuff, I think sometimes with the 557 00:28:24,200 --> 00:28:27,520 Speaker 7: House and the Senate just Congress in general, it takes 558 00:28:27,520 --> 00:28:30,960 Speaker 7: a while to get up and running, especially since everyone 559 00:28:31,000 --> 00:28:32,919 Speaker 7: wants to go through regular orders. So they hold the 560 00:28:32,920 --> 00:28:35,000 Speaker 7: hearings and the bills go through committee and then they 561 00:28:35,000 --> 00:28:37,199 Speaker 7: come to the floor. It just takes a little bit 562 00:28:37,240 --> 00:28:39,840 Speaker 7: of time, So I don't think we can count out 563 00:28:39,880 --> 00:28:42,320 Speaker 7: that we're not going to be seen or hearing anything 564 00:28:42,320 --> 00:28:46,120 Speaker 7: about some of these issues. I think, particularly in terms 565 00:28:46,240 --> 00:28:50,000 Speaker 7: of the pristone pill, the pill that is used in 566 00:28:50,040 --> 00:28:53,160 Speaker 7: some medically induced abortions, that might be something that we 567 00:28:53,160 --> 00:28:56,280 Speaker 7: well see taken up by Democrats in the Senate and 568 00:28:56,400 --> 00:29:00,000 Speaker 7: potentially becomes a rallying point for Democrats in the House 569 00:29:00,200 --> 00:29:00,680 Speaker 7: as well. 570 00:29:01,240 --> 00:29:02,880 Speaker 10: But just in terms of what we're going to. 571 00:29:02,920 --> 00:29:05,520 Speaker 7: See with the next couple weeks, I think, you know, 572 00:29:05,560 --> 00:29:07,840 Speaker 7: the priorities that we're already on the play are going 573 00:29:07,920 --> 00:29:08,240 Speaker 7: to be big. 574 00:29:08,280 --> 00:29:09,960 Speaker 10: And I think of course the dead limit too. 575 00:29:10,040 --> 00:29:12,400 Speaker 7: You know, Republicans are serious that they want to move 576 00:29:12,440 --> 00:29:13,800 Speaker 7: something within the coming month. 577 00:29:14,160 --> 00:29:17,160 Speaker 10: They have vowed to do so via regular order. That's 578 00:29:17,160 --> 00:29:19,840 Speaker 10: going to take a couple of weeks to get legislation together, 579 00:29:20,000 --> 00:29:22,200 Speaker 10: move it through the process, get it to the floor, 580 00:29:22,240 --> 00:29:25,200 Speaker 10: do the amendments like that, that's really going to have 581 00:29:25,240 --> 00:29:28,520 Speaker 10: to be their main focus rather than a number of 582 00:29:28,560 --> 00:29:30,080 Speaker 10: the news events that we've seen. 583 00:29:30,440 --> 00:29:33,360 Speaker 4: But on the subject of the dead limit, Emily, I mean, 584 00:29:33,480 --> 00:29:36,560 Speaker 4: really we're not quite at crunch time in theory right 585 00:29:36,600 --> 00:29:38,719 Speaker 4: If we're talking about an X state in the summer. 586 00:29:38,800 --> 00:29:41,720 Speaker 4: So does that take some of the pressure off or 587 00:29:41,880 --> 00:29:43,680 Speaker 4: is this just self inflicted pressure Now? 588 00:29:43,800 --> 00:29:46,040 Speaker 7: I think to a certain extent, some of the pressure 589 00:29:46,080 --> 00:29:48,280 Speaker 7: is not on yet, And I wonder if that's kind 590 00:29:48,280 --> 00:29:50,440 Speaker 7: of why McCarthy is headed up to New York when 591 00:29:50,440 --> 00:29:53,360 Speaker 7: he is. Because Congress they love to move at the 592 00:29:53,400 --> 00:29:55,880 Speaker 7: last minute, they love to move on a deadline. But 593 00:29:55,960 --> 00:29:58,840 Speaker 7: McCarthy knows, and I think Biden knows that that's not great. 594 00:29:59,120 --> 00:30:01,240 Speaker 7: That when we've moved too close to the deadline in 595 00:30:01,280 --> 00:30:03,640 Speaker 7: the past on raising the debt limit, that's when the 596 00:30:03,720 --> 00:30:06,760 Speaker 7: US credit gets hit and gets impacted. 597 00:30:06,880 --> 00:30:10,160 Speaker 4: All right, Emily Wilkins of Bloomberg Government, thank you so much. 598 00:30:10,200 --> 00:30:13,200 Speaker 4: We're excited for the next week coming up here in Washington, Tom, 599 00:30:13,200 --> 00:30:14,440 Speaker 4: and I'll send it back over to you. 600 00:30:14,840 --> 00:30:17,720 Speaker 1: Kaylee Lines, reporting from our Bloomberg ninety nine one news 601 00:30:17,760 --> 00:30:20,880 Speaker 1: room in Washington. Thanks Kaylee, And coming up on Bloomberg 602 00:30:20,920 --> 00:30:24,800 Speaker 1: day Break weekend, Tesla's coming earnings and how Elon Musk's 603 00:30:24,800 --> 00:30:28,520 Speaker 1: company is faring in China. I'm Tom Busby, and this 604 00:30:28,720 --> 00:30:43,200 Speaker 1: is Bloomberg. This is Bloomberg day Break weekend, our global 605 00:30:43,200 --> 00:30:45,320 Speaker 1: look ahead at the top stories for investors in the 606 00:30:45,360 --> 00:30:48,200 Speaker 1: coming week. I'm Tom Busby in New York. Some of 607 00:30:48,200 --> 00:30:50,840 Speaker 1: the focus is going to be on Tesla's earnings in 608 00:30:50,880 --> 00:30:55,080 Speaker 1: the company's big opportunities and challenges in China. For more, 609 00:30:55,200 --> 00:30:57,840 Speaker 1: let's go to Hong Kong and Bloomberg Daybreak Asia host 610 00:30:57,880 --> 00:31:00,800 Speaker 1: Brian Curtis and his colleague Doug Tom. 611 00:31:00,880 --> 00:31:03,720 Speaker 3: We look forward to Tesla's earnings in the coming week, 612 00:31:03,800 --> 00:31:06,680 Speaker 3: with at least part of the focus on China. The 613 00:31:06,720 --> 00:31:09,560 Speaker 3: numbers of the commentary from executives will be coming after 614 00:31:09,640 --> 00:31:12,240 Speaker 3: a slew of recent developments involving the company. 615 00:31:12,400 --> 00:31:15,880 Speaker 11: Yes, we've seen big price cuts by Tesla and its competitors. 616 00:31:15,880 --> 00:31:19,880 Speaker 11: We've also seen relentless gains in the share price of 617 00:31:19,920 --> 00:31:23,640 Speaker 11: Tesla and recently the announcement of a new megapac battery 618 00:31:23,680 --> 00:31:27,360 Speaker 11: plant in Shunghai. Now this will build seals for grid 619 00:31:27,440 --> 00:31:29,000 Speaker 11: scale energy storage. 620 00:31:29,280 --> 00:31:32,200 Speaker 3: In addition, the Biden administration is in the process of 621 00:31:32,280 --> 00:31:35,280 Speaker 3: rolling out the toughest ever curbs in the United States 622 00:31:35,320 --> 00:31:38,800 Speaker 3: on car pollution. Joining US now is Dana Hull, senior 623 00:31:38,800 --> 00:31:43,320 Speaker 3: reporter in San Francisco covering Tesla and its chief Elon 624 00:31:43,440 --> 00:31:46,680 Speaker 3: musk So. Dana Doug mentioned the price cuts and the 625 00:31:46,720 --> 00:31:49,600 Speaker 3: stock price gains there are trying to put those two together. 626 00:31:49,640 --> 00:31:53,040 Speaker 3: On the one hand, the cuts make the cars more 627 00:31:53,080 --> 00:31:57,280 Speaker 3: competitive and more affordable, particularly in places like China, But 628 00:31:57,360 --> 00:32:01,480 Speaker 3: then on the other hand, it speaks to perhaps weaker demand. 629 00:32:01,760 --> 00:32:04,080 Speaker 3: How badly will these price cuts hit margins. 630 00:32:04,200 --> 00:32:06,320 Speaker 12: The fact that they've cut prices, you know, so much 631 00:32:06,360 --> 00:32:09,160 Speaker 12: in the first quarter and then again just last Thursday, 632 00:32:09,680 --> 00:32:12,480 Speaker 12: does kind of spook people about the demand question, like 633 00:32:12,560 --> 00:32:14,720 Speaker 12: how much farther are they going to go down? And 634 00:32:14,760 --> 00:32:18,360 Speaker 12: if you're a consumer thinking of buying a Tesla, I mean, 635 00:32:18,360 --> 00:32:19,680 Speaker 12: are you going to buy one now? Or are you 636 00:32:19,680 --> 00:32:21,400 Speaker 12: going to wait to see if they lop off another 637 00:32:21,600 --> 00:32:23,720 Speaker 12: one or five thousand dollars? I mean, that's that's sort 638 00:32:23,720 --> 00:32:27,560 Speaker 12: of a big question for the consumer, like why, you know, 639 00:32:27,640 --> 00:32:29,800 Speaker 12: I don't want to buy a car if Elon Musk 640 00:32:29,880 --> 00:32:31,480 Speaker 12: is going to turn around and cut the prices again 641 00:32:31,520 --> 00:32:31,960 Speaker 12: next week. 642 00:32:32,080 --> 00:32:34,680 Speaker 11: One of the things that was also interesting in this 643 00:32:34,800 --> 00:32:36,760 Speaker 11: note that I read is that the move here on 644 00:32:36,800 --> 00:32:40,200 Speaker 11: the part of Tesla may be about expediting the demise 645 00:32:40,240 --> 00:32:42,800 Speaker 11: of gasoline vehicles. And when I read that, I was 646 00:32:43,280 --> 00:32:45,800 Speaker 11: reminded of what happened with some of these ride sharing 647 00:32:45,880 --> 00:32:49,560 Speaker 11: companies where they were purposely under cutting the market for 648 00:32:49,720 --> 00:32:51,960 Speaker 11: taxis as a way of pushing them out of business. 649 00:32:52,120 --> 00:32:52,280 Speaker 3: Yeah. 650 00:32:52,320 --> 00:32:55,200 Speaker 12: I mean, when you're when you're aggressively chasing volume, you 651 00:32:55,280 --> 00:32:57,600 Speaker 12: will pull out all the stops to kind of gain 652 00:32:57,640 --> 00:33:00,560 Speaker 12: as many customers as you can. And you know, policy 653 00:33:00,600 --> 00:33:03,600 Speaker 12: incentives are on Tesla's side. I mean, the world is 654 00:33:04,440 --> 00:33:07,760 Speaker 12: transitioning away from gas powered cars. Tesla doesn't make a 655 00:33:07,800 --> 00:33:11,240 Speaker 12: gas powered car, so there's only sort of upside for them. 656 00:33:11,320 --> 00:33:14,360 Speaker 12: And you know, at their investor day in March, they 657 00:33:14,400 --> 00:33:17,080 Speaker 12: made a huge show of how they're going to relentlessly 658 00:33:17,120 --> 00:33:21,200 Speaker 12: focus on costs across their supply chain in their operations, 659 00:33:21,480 --> 00:33:24,840 Speaker 12: and you know, their average transaction price has been kind 660 00:33:24,840 --> 00:33:27,760 Speaker 12: of you know, coming down over the years, and they 661 00:33:27,800 --> 00:33:30,760 Speaker 12: and they really feel like that's the path that they're 662 00:33:30,840 --> 00:33:32,280 Speaker 12: on and it's a part of their whole mission. 663 00:33:32,440 --> 00:33:35,720 Speaker 3: I mentioned China in the intro. Byd is out selling 664 00:33:35,760 --> 00:33:38,080 Speaker 3: a Tesla in China. How's that competition going. 665 00:33:38,240 --> 00:33:41,760 Speaker 12: Certainly BYD is a formidable competitor in China, and you're 666 00:33:41,800 --> 00:33:45,440 Speaker 12: seeing Tesla cut prices in China as well. I mean, 667 00:33:45,560 --> 00:33:49,000 Speaker 12: Tesla does have kind of this aspirational brand allure in 668 00:33:49,880 --> 00:33:52,240 Speaker 12: the country, and the fact that they just announced that 669 00:33:52,240 --> 00:33:55,720 Speaker 12: they're building this megapac facility in Shanghais is a sign 670 00:33:55,760 --> 00:33:57,920 Speaker 12: that they're really kind of doubling down on their investment. 671 00:33:58,120 --> 00:34:01,080 Speaker 3: We did see some political pressure coming from Mike Gallagher, 672 00:34:01,200 --> 00:34:04,800 Speaker 3: the congressman, on Tesla and its commitment to China. You 673 00:34:04,840 --> 00:34:10,000 Speaker 3: mentioned that commitment earlier with this megapack factory. Is that 674 00:34:10,120 --> 00:34:14,000 Speaker 3: something that investors will be paying close attention to or 675 00:34:14,040 --> 00:34:14,640 Speaker 3: not so much? 676 00:34:14,880 --> 00:34:17,920 Speaker 12: Yeah, I mean the Gallagher's comment was that he was concerned. 677 00:34:18,000 --> 00:34:21,120 Speaker 12: I don't know how much pressure that really, you know, holds. 678 00:34:21,160 --> 00:34:23,240 Speaker 12: But China has always been a big part of Tesla's 679 00:34:23,280 --> 00:34:26,960 Speaker 12: business model, and they just announced that Tom Ju, who 680 00:34:27,120 --> 00:34:30,120 Speaker 12: kind of led operations in China, is now an executive officer. 681 00:34:30,239 --> 00:34:33,520 Speaker 3: Dan, we mentioned the pollution curbs coming from the Biden administration. 682 00:34:33,680 --> 00:34:35,040 Speaker 3: What can you tell us on that front? 683 00:34:35,120 --> 00:34:37,240 Speaker 12: It's great for Tesla. I mean, you have a Biden 684 00:34:37,280 --> 00:34:40,880 Speaker 12: administration that is trying to accelerate EV adoption. Then you 685 00:34:40,880 --> 00:34:44,080 Speaker 12: have Tesla, which is like the pure player EV carmaker. 686 00:34:44,320 --> 00:34:47,680 Speaker 12: There's a sort of only there's only upside from policies 687 00:34:47,760 --> 00:34:49,200 Speaker 12: kind of designed to accelerate this. 688 00:34:49,600 --> 00:34:51,799 Speaker 11: Danna, thanks for helping us look at Tesla as we 689 00:34:51,880 --> 00:34:54,399 Speaker 11: prepare for the earnings in the coming week. Dana Hall 690 00:34:54,640 --> 00:34:59,200 Speaker 11: is senior reporter in San Francisco covering Tesla and Elon Musk. 691 00:34:59,520 --> 00:35:02,200 Speaker 11: I'm Doug Prisoner along with Brian Curtis. He's in Hong 692 00:35:02,280 --> 00:35:04,520 Speaker 11: Kong and you can catch us weekdays here for Bloomberg 693 00:35:04,600 --> 00:35:07,640 Speaker 11: day Break Asia beginning at six am in Hong Kong 694 00:35:07,800 --> 00:35:09,240 Speaker 11: six pm on Wall Street. 695 00:35:09,560 --> 00:35:12,080 Speaker 1: Tom, thank you, Brian and Doug. And that does it 696 00:35:12,160 --> 00:35:14,759 Speaker 1: for this edition of Bloomberg day Break Weekend. Join us 697 00:35:14,800 --> 00:35:17,480 Speaker 1: again Monday morning at five am Wall Street time for 698 00:35:17,520 --> 00:35:20,560 Speaker 1: the latest on markets overseas and the news you need 699 00:35:20,600 --> 00:35:23,600 Speaker 1: to start your day. I'm Tom Buzzby. Stay with us 700 00:35:23,680 --> 00:35:27,239 Speaker 1: top stories and global business headlines coming up right now.