WEBVTT - Bloomberg Daybreak Weekend: Retail, Scholz, Asia Travel 0:00:02.360 --> 0:00:05.360 This is Bloomberg Daybreak Weekend, our global look at the 0:00:05.360 --> 0:00:08.200 top stories in the coming week from our Daybreak anchors 0:00:08.280 --> 0:00:11.000 all around the world. Straight ahead on the program, A 0:00:11.280 --> 0:00:14.760 big parade of retail earnings on the way. I'm Tom 0:00:14.760 --> 0:00:17.720 Busby in New York. I'm Caroline Hetkee here in London. 0:00:17.760 --> 0:00:21.280 Where we're asking where are all the women money manages? 0:00:21.520 --> 0:00:25.200 Speaking to Fames investor Helena Marcy. I'm Brand Curtis in 0:00:25.280 --> 0:00:27.880 Hong Kong. More than nine out of ten people in 0:00:28.080 --> 0:00:31.280 China are planning to travel in the coming weeks. Where 0:00:31.320 --> 0:00:35.880 are they going and who stands to benefit? That's all 0:00:36.000 --> 0:00:40.160 straight ahead on Bloomberg Daybreak Weekend on Bloomberg eleven, FREEO 0:00:40.280 --> 0:00:44.279 New York, Bloomberg ninety nine one, Washington, DC, Bloomberg one 0:00:44.280 --> 0:00:48.280 oh six one, Boston, Bloomberg nine sixty, San Francisco, DAB 0:00:48.520 --> 0:00:52.199 Digital Radio London, Sirius XM one nineteen and around the 0:00:52.240 --> 0:00:55.320 world on Bloomberg Radio dot com and via the Bloomberg 0:00:55.360 --> 0:01:01.640 Business App. A day to you. I'm Tom Buzzby, and 0:01:01.680 --> 0:01:04.480 we begin today's program with a flood of earnings reports 0:01:04.520 --> 0:01:07.880 about to come out from some of the nation's biggest retailers. 0:01:07.920 --> 0:01:09.880 And joining me now to give us some insight into 0:01:09.920 --> 0:01:13.039 what to expect and what it all means for the economy. 0:01:13.319 --> 0:01:17.440 Bloomberg retail reporter Brendan Case. Brendan, thank you so much 0:01:17.480 --> 0:01:19.800 for joining us, Hey, thanks for having me on well. 0:01:19.800 --> 0:01:23.600 With inflation still rising, borrowing rates high and expected to 0:01:23.640 --> 0:01:25.880 move even higher, it has been a tough time for 0:01:25.920 --> 0:01:29.200 consumers and for retailers. And last week, boy, we got 0:01:29.200 --> 0:01:32.080 some pretty disappointing outlooks for the year ahead from two 0:01:32.240 --> 0:01:37.080 retail giants, both Dow components. So, Brendon, let's start with Walmart, 0:01:37.200 --> 0:01:40.720 the world's largest retailer. In Brendan, Walmart's CFO John Rainey 0:01:40.760 --> 0:01:44.640 told us this past week that value, proposition and convenience, 0:01:44.640 --> 0:01:48.080 as he calls it, is something consumers are liking. But 0:01:48.440 --> 0:01:50.680 and it's a big butt. There's a lot of macro 0:01:50.800 --> 0:01:55.720 uncertainty as as we look across the consumers across the globe, 0:01:55.760 --> 0:01:59.120 but certainly here in the US, balance sheets are getting thinner. 0:01:59.200 --> 0:02:01.760 You're seeing saving rates decline, and we really haven't been 0:02:01.800 --> 0:02:04.320 in a position where we've seen the fed titan at 0:02:04.320 --> 0:02:06.920 this rate. And so as we look forward and give 0:02:06.960 --> 0:02:09.840 guidance for the full year, we're adopting a cautious outlook, 0:02:09.840 --> 0:02:12.080 and we want to make sure that we're responsive to 0:02:12.120 --> 0:02:14.880 whatever environment that we're going to find ourselves. So Brended 0:02:14.919 --> 0:02:17.680 of Walmart is being cautious, as is Home Depot, the 0:02:17.680 --> 0:02:21.120 other big retailer that reported last week. Do other retailers 0:02:21.120 --> 0:02:24.720 share this caution and broader concerns about the economy right now? 0:02:24.720 --> 0:02:28.320 The ones that Rainy is talking about, Yes, they really do, 0:02:28.480 --> 0:02:30.959 Tom And just to hear that from Walmart, you know, 0:02:31.000 --> 0:02:33.320 if you think about the broad trends, the big picture 0:02:33.360 --> 0:02:35.679 out there is that if you're in retail, you want 0:02:35.680 --> 0:02:39.720 to be selling at very you know, the lowest possible 0:02:39.760 --> 0:02:43.639 prices and selling basic goods. Right now, Walmart has a 0:02:43.680 --> 0:02:47.720 reputation for doing both, and even it's taking such a 0:02:47.760 --> 0:02:49.960 cautious tone. When you think about some of the companies 0:02:50.000 --> 0:02:55.120 about to report, Target, Coal's, Macy's, you're talking a lot 0:02:55.160 --> 0:02:58.440 more about discretionary items, and I think we'll probably hear 0:02:59.080 --> 0:03:04.600 a similar tone of caution for their outlooks this year. Now. 0:03:04.600 --> 0:03:07.600 On another note, Millard Drexler, he's own proprietor of clothing 0:03:07.639 --> 0:03:11.840 retailer Alex mill told us consumers are stressed by inflation 0:03:11.880 --> 0:03:14.680 and higher prices. And despite the unemployment rate at more 0:03:14.720 --> 0:03:18.080 than fifty year low, right now, people should worry that 0:03:18.160 --> 0:03:20.880 the robust labor market is starting to change. Here's another 0:03:21.200 --> 0:03:23.839 monkey ranch. A lot more jobs may be at risk. 0:03:23.880 --> 0:03:27.160 Let's hear from Drexler. Now, they have jobs, but I 0:03:27.200 --> 0:03:32.400 think the huge amount of layoffs and the publicity and 0:03:32.600 --> 0:03:38.120 they get has to have people worried about their job security. 0:03:38.680 --> 0:03:42.200 And there's so many unknowns going on in the world today, 0:03:42.760 --> 0:03:46.800 you know, internationally in America. All right, So, Brendan, is 0:03:46.840 --> 0:03:49.840 this another big problem that's going to weigh on retailers? 0:03:49.840 --> 0:03:52.000 The ones you know that we're expecting to hear from 0:03:52.040 --> 0:03:54.440 this coming week time will tell. I think from the 0:03:54.480 --> 0:03:56.960 retailer's perspective, that's more of kind of a good news 0:03:57.000 --> 0:03:58.760 bad news kind of thing. You know. The bad news 0:03:58.920 --> 0:04:02.160 is that, certainly we've heard a lot of layoff announcements 0:04:02.200 --> 0:04:05.760 from tech companies, bang, some of the most powerful companies 0:04:05.760 --> 0:04:09.280 in the economy. It looks a little different from the 0:04:09.320 --> 0:04:15.240 retailer's perspective because you know, employment is still very high. 0:04:15.280 --> 0:04:18.080 You know, people have jobs and wages are going up. 0:04:18.200 --> 0:04:21.880 Both Walmart and home Depot over the last few weeks 0:04:21.880 --> 0:04:24.800 have said they're going to be raising wages, which are 0:04:24.839 --> 0:04:27.039 sort of a signal that they're having trouble hiring people 0:04:27.040 --> 0:04:30.400 at their at their current wages, and that they need 0:04:30.440 --> 0:04:33.080 to be boosting them just to be able to fill 0:04:33.160 --> 0:04:36.279 the jobs they have. Now, you know, if the Fed 0:04:36.400 --> 0:04:40.000 keeps tightening, is the economy going to get to a 0:04:40.000 --> 0:04:45.279 situation where overall unemployment starts to rise, people start losing jobs, 0:04:45.360 --> 0:04:49.120 you know, in across different industries. Time will tell if 0:04:49.120 --> 0:04:51.040 that happens, that's going to be a whole new ballgame 0:04:51.080 --> 0:04:53.960 for the retailers, all right, Brendon. Now, there's also the 0:04:54.120 --> 0:04:58.000 post pandemic reopening, a lot of pent ump demand for travel, 0:04:58.240 --> 0:05:02.000 for dining out, for experience, ential spending on concert, sporting events, 0:05:02.040 --> 0:05:05.400 the like. None of that comes cheaply. That means all 0:05:05.400 --> 0:05:08.760 those things are also competing with retailers for our money. 0:05:09.240 --> 0:05:10.800 Now at the same time, of course, you need to 0:05:10.800 --> 0:05:13.039 buy clothes, you have to eat, you have to go 0:05:13.040 --> 0:05:14.760 out every now and again. So where does this leave 0:05:14.800 --> 0:05:17.960 retailers right now? Given that, like we just heard Drexler say, 0:05:18.040 --> 0:05:24.560 people are worried. You know, the retailers last year they 0:05:24.600 --> 0:05:27.560 started struggling with this shift that you're talking about last year, 0:05:27.600 --> 0:05:29.960 and in fact, it happened a lot more quickly than 0:05:30.000 --> 0:05:34.720 they were expecting. The effect was that companies like Walmart, Target, 0:05:35.040 --> 0:05:38.560 they ended up with a whole lot more inventory than 0:05:38.640 --> 0:05:41.680 they thought they were going to need. You know, you're 0:05:41.720 --> 0:05:44.520 talking about home goods, you're talking about kitchen appliances. That 0:05:44.560 --> 0:05:47.480 stuff was just you know, stacking up in their warehouses 0:05:48.000 --> 0:05:51.599 and they ended up having to liquidate it market down, 0:05:52.560 --> 0:05:56.040 you know, pretty heavy discounts that took a big toll 0:05:56.120 --> 0:05:59.280 on profits last year, and this year it's a pretty 0:05:59.320 --> 0:06:02.680 similar outlook. Now, well, let's dig a little deeper into 0:06:02.760 --> 0:06:06.000 some of the names that are reporting, and some of 0:06:06.040 --> 0:06:08.640 them have navigated the pandemic better than others, some of 0:06:08.680 --> 0:06:11.400 them have bounced back better than others. But let's talk 0:06:11.839 --> 0:06:14.200 about some of the big use. We'll start with the 0:06:14.279 --> 0:06:18.560 discounters Dollar Tree, Dollar General. I mean, these stores have 0:06:18.640 --> 0:06:24.360 seen tremendous ups, tremendous downs. Where do they stand right now? Yeah, 0:06:24.400 --> 0:06:26.480 So Dollar Tree is going to be reporting next week, 0:06:26.520 --> 0:06:29.640 and that's going to be an interesting test because just 0:06:29.760 --> 0:06:36.440 on February twenty third, Dollar General issued a profit warning. 0:06:36.560 --> 0:06:38.960 It said it got hit pretty bad from the impact 0:06:39.000 --> 0:06:43.080 of the winter storms that we had right before Christmas. 0:06:43.440 --> 0:06:46.960 It also came out with a pretty underwhelming outlook for 0:06:47.240 --> 0:06:50.680 this year, and you know, one thing that they flagged 0:06:50.720 --> 0:06:54.080 was increased interest expense. But kind of lurking in the background, 0:06:54.160 --> 0:06:58.360 there is the concern that maybe lower income consumers, which 0:06:58.440 --> 0:07:00.560 is kind of their bread and butter, you know, maybe 0:07:00.560 --> 0:07:03.440 those people are really starting to you know, run out 0:07:03.440 --> 0:07:05.960 of gas in terms of their spending ability. They're getting 0:07:06.000 --> 0:07:11.360 squeezed by whole range of costs, and you know, are 0:07:11.360 --> 0:07:14.360 they going to be able to keep spending the way 0:07:14.400 --> 0:07:18.040 they've been spending For companies like Dollar Tree and Dollar 0:07:18.120 --> 0:07:22.760 General to you know, continue making the gains that they 0:07:22.800 --> 0:07:24.760 have been in terms of sales, that's a that's a 0:07:24.800 --> 0:07:28.680 big question going into these earnings reports. Let's talk about 0:07:28.720 --> 0:07:32.000 now the middle income, the targets, the coals, how do 0:07:32.040 --> 0:07:35.520 they stand. So Target is going to be the first 0:07:35.520 --> 0:07:38.280 one to report. They go on on Tuesday, and they 0:07:38.280 --> 0:07:40.960 actually have a whole investor day planned as well, so 0:07:41.000 --> 0:07:43.120 they're going to be getting into the details of their 0:07:43.480 --> 0:07:45.240 other outlook for this year, and that's going to be 0:07:45.280 --> 0:07:48.120 really interesting. You know, Target does sell a lot of 0:07:48.120 --> 0:07:52.480 food and basic goods, but the proportion of those goods 0:07:52.040 --> 0:07:54.720 as in terms of their total sales, it's much smaller 0:07:54.720 --> 0:07:58.040 than Walmart, and Target, you know, by contrast, is quite 0:07:58.080 --> 0:08:01.240 a bit stronger than Walmart in terms of the percentage 0:08:01.240 --> 0:08:05.320 of discretionary items itselves. And so its outlook is going 0:08:05.320 --> 0:08:07.640 to tell us a lot about what, by all accounts, 0:08:07.760 --> 0:08:10.520 is a very well managed retailer. What does a company 0:08:10.600 --> 0:08:13.720 like that see in terms of their demand trends for 0:08:13.800 --> 0:08:17.280 this year after being kind of upended last year and 0:08:17.600 --> 0:08:20.880 speaking of upended Cole's competitor in a lot of ways 0:08:20.880 --> 0:08:24.560 to Target, how does it look for Coals? Yeah? See, 0:08:24.560 --> 0:08:28.000 and there again with Coals, with Macy's, you're talking about 0:08:28.000 --> 0:08:31.840 all of the discretionary exposure that Target has, but with 0:08:32.040 --> 0:08:36.600 much less of the kind of basic essentials that Target 0:08:36.679 --> 0:08:38.360 also sells. So I think if you're looking at a 0:08:38.400 --> 0:08:42.400 company like Coals, you're looking at Macy's, you're talking about 0:08:42.400 --> 0:08:46.440 a company that is trying to convince customers that, you know, 0:08:46.520 --> 0:08:50.520 they should buy stuff. Do they really need it? You know, 0:08:50.679 --> 0:08:53.800 people's definition varies. You can't put off buy and clothes forever. 0:08:54.840 --> 0:08:57.080 But that's a real question mark, and I think there's 0:08:57.120 --> 0:09:00.000 a lot of concern about whether the outlook for those 0:09:00.040 --> 0:09:02.319 companies is going to be quite weak this year as 0:09:02.320 --> 0:09:05.560 consumers continue to struggle with inflation and just try to 0:09:06.120 --> 0:09:10.160 cut back on all of their non essential spending. And 0:09:10.240 --> 0:09:13.360 speaking of non essential, let's talk warehouse clubs. Now, we 0:09:13.480 --> 0:09:16.640 heard from Walmart and of course they own Sam's. But 0:09:16.880 --> 0:09:19.520 this week we hear from Costco the Biggie and after 0:09:19.559 --> 0:09:23.560 that BJ's. They have really had to be nimble and 0:09:23.720 --> 0:09:27.079 navigate through the pandemic. What's the outlook on Costco the Biggie? 0:09:28.240 --> 0:09:32.760 So Costco has been a big winner during the pandemic. 0:09:33.280 --> 0:09:37.680 This is a company with a clientele that skews higher 0:09:37.760 --> 0:09:42.280 income and it's a company with a reputation for selling 0:09:42.880 --> 0:09:46.640 very competitively priced goods. It also sells a lot of food, 0:09:47.080 --> 0:09:50.160 and so it's getting people in the door with food sales. 0:09:50.840 --> 0:09:52.679 And once they're in the door, you know, a lot 0:09:52.679 --> 0:09:55.720 of them, especially those higher income levels, maybe have a 0:09:55.720 --> 0:09:58.440 little more money to spend. They're finding a lot more 0:09:58.480 --> 0:10:01.400 to buy in Costco than they did before. And so 0:10:02.120 --> 0:10:05.959 Costco's comparable sales had a little gip in November. There 0:10:06.000 --> 0:10:07.800 was a lot of concern that that was that was 0:10:07.840 --> 0:10:10.800 a signal of a big slowdown, but since then December 0:10:10.880 --> 0:10:13.800 January have been quite good for Costco. We'll find out 0:10:13.840 --> 0:10:17.920 more about their outlook when they report earnings, but by 0:10:17.960 --> 0:10:20.359 all accounts, they've been a big winner from the pandemic 0:10:20.520 --> 0:10:23.440 and it would be a surprise if they come in 0:10:23.600 --> 0:10:26.640 with a particularly weak outlook. So that'll be a big 0:10:26.679 --> 0:10:29.880 watch item. Well, Brendon, that is a lot to digest, 0:10:29.920 --> 0:10:32.440 and I want to thank you. That's Bloomberg retail reporter 0:10:32.520 --> 0:10:35.480 Brendan Case. And coming up on Bloomberg Daybreak Weekend, we 0:10:35.520 --> 0:10:38.640 go to London to learn about veteran investor Helena Morrissey 0:10:38.720 --> 0:10:41.280 and how she is setting out to tackle the lack 0:10:41.320 --> 0:10:45.160 of female fund managers in the UK. I'm Tom Busby, 0:10:45.240 --> 0:10:58.480 and this is Bloomberg. This is Bloomberg Daybreak Weekend, our 0:10:58.520 --> 0:11:00.760 global look ahead at the top story for investors in 0:11:00.760 --> 0:11:03.920 the coming week. I'm Tom Busby in New York. Up 0:11:04.000 --> 0:11:05.560 later in our program and look at some of the 0:11:05.640 --> 0:11:08.920 challenges the Biden administration is facing right now. But first 0:11:09.200 --> 0:11:12.360 we go to London and Bloomberg daybreakhost Caroline Hepger to 0:11:12.440 --> 0:11:16.600 learn more about veteran investor Helena Morrissey and how she's 0:11:16.640 --> 0:11:19.920 setting out to tackle the lack of female fund managers 0:11:20.000 --> 0:11:24.480 in the UK Caroline Gender diversity efforts here in the 0:11:24.600 --> 0:11:28.480 UK have stalled. The proportion of female money managers is 0:11:28.520 --> 0:11:32.199 stuck at twelve percent that according to City was Alpha 0:11:32.240 --> 0:11:36.360 Female Report for twenty twenty two. Helena Morrissey is the 0:11:36.440 --> 0:11:40.240 chair of the diversity projects. She is hoping to change 0:11:40.280 --> 0:11:44.200 that with a new Pathway program training sixty women from 0:11:44.280 --> 0:11:49.040 thirty three companies to take their top jobs in money management. Now. 0:11:49.080 --> 0:11:52.199 I sat down with Morrissey to discuss the issue and firstly, 0:11:52.679 --> 0:11:56.160 just why the numbers are still so low for women 0:11:56.360 --> 0:11:59.320 at the top of finance is quite a mystery, to 0:11:59.320 --> 0:12:02.240 be honest, because as my own career suggests, you know, 0:12:02.280 --> 0:12:04.520 it's a great career for anybody who wants to be 0:12:04.840 --> 0:12:07.680 measured on results. I just spoke at a law firm 0:12:07.720 --> 0:12:09.440 where the women were saying, you know why they're so 0:12:09.520 --> 0:12:12.600 few female fum managers, and I said, it's it's particularly 0:12:12.640 --> 0:12:14.800 mystery when I'm talking to you where you've got fifty 0:12:14.840 --> 0:12:18.760 percent plus lawyers at the intake level anyway, and fund managers. 0:12:19.280 --> 0:12:22.560 You know, we've stayed very very though it's not really 0:12:22.600 --> 0:12:25.440 moved for the seven or eight years since people collected 0:12:25.480 --> 0:12:28.560 the data. I do think there's an image problem that 0:12:29.120 --> 0:12:31.120 people look and they think, oh, fun management, it's not 0:12:31.160 --> 0:12:34.120 for me. It would be very isolated to be a woman. 0:12:35.120 --> 0:12:37.360 It's kind of macho environment. And some of this is 0:12:37.400 --> 0:12:39.079 not really true. And we've got to get out more 0:12:39.120 --> 0:12:42.120 and explain that actually, fun management it's great career, you know, 0:12:42.200 --> 0:12:45.400 if you want to be judged on your ultimate results. 0:12:45.480 --> 0:12:50.120 If you like an analyst, you know, analysis, that's great 0:12:50.160 --> 0:12:53.240 for lots of women love analyzing companies and things. So 0:12:53.280 --> 0:12:54.920 we've got to just get out and tell the story. 0:12:55.320 --> 0:12:58.319 I think that's really interesting because I mean, surely, if 0:12:58.360 --> 0:13:01.880 all the industries, the finance industry, with all of its metrics, 0:13:01.960 --> 0:13:05.600 would be the most merited crack it. One might think 0:13:05.679 --> 0:13:09.200 that you would actually find the industry very obsessed with 0:13:09.679 --> 0:13:14.520 facts and figures and data that they we would promote 0:13:15.480 --> 0:13:19.040 beautiful performance. Well exactly. I mean I remember when I 0:13:19.120 --> 0:13:21.000 was you know, I have a lot of children, and 0:13:21.080 --> 0:13:23.280 when i'd come back from return to leave, you know, 0:13:23.320 --> 0:13:26.199 if I still had great performance numbers, then no one 0:13:26.240 --> 0:13:29.560 really could criticize. I mean, obviously I was investing for 0:13:29.600 --> 0:13:32.199 the long term as well. I didn't always have great numbers, 0:13:32.240 --> 0:13:34.679 of course, but that's not possible if you run Monday 0:13:34.720 --> 0:13:38.240 for many years. But it was a great testament to 0:13:38.640 --> 0:13:43.640 one's ability to have performance data that was completely indisputable, 0:13:43.800 --> 0:13:47.320 just completely objective. Do you still meet men, I know 0:13:47.360 --> 0:13:49.080 that you must meet so many people in the city 0:13:49.080 --> 0:13:50.920 of London. Do you still meet men in the city 0:13:50.920 --> 0:13:55.200 of London who don't believe that, who question whether women 0:13:55.360 --> 0:13:58.599 are as good at managing money as men? Well, I 0:13:58.600 --> 0:14:02.319 don't think anyone would ever admit at these days. And 0:14:02.800 --> 0:14:04.400 I think there is still though a bit of a 0:14:04.440 --> 0:14:08.480 sort of cultural impediment as well. I think men, many 0:14:08.520 --> 0:14:11.679 men now and especially in our industry, really are just 0:14:11.760 --> 0:14:13.920 as frustrated as the women that we're not seeing more 0:14:13.960 --> 0:14:16.920 progress on this. So there are great allies. But I 0:14:16.960 --> 0:14:19.920 do also know that some people think this is, you know, irrelevant, 0:14:20.040 --> 0:14:22.960 you know, it's all about you know, they just don't 0:14:22.960 --> 0:14:25.080 see it that actually women might actually bring something new 0:14:25.120 --> 0:14:27.000 to the table, that we might add something, And in 0:14:27.040 --> 0:14:31.760 fact the data does suggest that mixed gender teams are 0:14:31.760 --> 0:14:34.200 the best performing. I don't think that's any great shock 0:14:34.240 --> 0:14:37.000 to anybody. Really, we bring different things to the table. 0:14:37.800 --> 0:14:39.960 So I'm afraid yes, one or two, I don't think 0:14:39.960 --> 0:14:42.760 dinosaurs anymore, but certainly pockets where you're like, oh, I 0:14:42.760 --> 0:14:45.480 don't really think they're on board with this idea. Yeah, 0:14:45.520 --> 0:14:48.080 because certainly the story in private equity, for example, is 0:14:48.080 --> 0:14:49.920 that the case is still very much having to be 0:14:50.120 --> 0:14:53.960 made either to invest in women lead businesses. You know 0:14:54.000 --> 0:14:57.000 that the decision makers about where the money is allocated 0:14:57.080 --> 0:15:01.200 is often very skewed, and so you know that cases. Yeah, 0:15:01.720 --> 0:15:03.640 we think of it as being all fashioned, but it 0:15:03.720 --> 0:15:06.240 might not be. And I'm at this stage thinking, let's 0:15:06.240 --> 0:15:08.520 not put a business case because obviously we've had business 0:15:08.600 --> 0:15:11.440 cases going back decades now. You know, McKinsey did a 0:15:11.440 --> 0:15:13.240 great business case on why it would better to have 0:15:13.320 --> 0:15:15.360 more women on boards than not to have any, showing 0:15:15.360 --> 0:15:17.360 the financial impact. I think we now have to make 0:15:17.400 --> 0:15:20.200 a personal case, you know, actually say your team will 0:15:20.240 --> 0:15:22.920 be better, your business will be better, You'll have more 0:15:23.240 --> 0:15:26.800 connection with your clients. You know. It's it's more of 0:15:26.840 --> 0:15:29.200 a motive case. I'm actually want to win over hearts 0:15:29.200 --> 0:15:32.040 and minds now, because I see again I see people saying, oh, 0:15:32.040 --> 0:15:33.880 sure we'd love to have more women, but not actually 0:15:33.920 --> 0:15:39.000 doing things, for example, managing people inclusively, sort of assuming 0:15:39.000 --> 0:15:42.240 everybody's got the same sort of lives and we need 0:15:42.280 --> 0:15:45.000 to just shake that up completely, I think, and say 0:15:45.400 --> 0:15:48.320 as she's in your interest to encourage more women into 0:15:48.360 --> 0:15:50.760 the industry and to stay. I think that's really interesting 0:15:50.760 --> 0:15:53.640 to talk about winning over hearts and minds, because this 0:15:53.760 --> 0:15:57.840 project to me feels much more muscular. This feels like 0:15:58.000 --> 0:16:01.040 getting results on the ground. It feels like a more 0:16:01.160 --> 0:16:05.040 muscular diversity project than we've seen before, which has been 0:16:05.360 --> 0:16:08.800 talk maybe topped down. This is very much bottom up. 0:16:09.280 --> 0:16:11.480 It is. I mean, we have a great advisory council 0:16:11.520 --> 0:16:14.440 which is CEO level, and you know we need their 0:16:14.520 --> 0:16:16.440 leadership as well. We need them to say, actually, this 0:16:16.520 --> 0:16:19.119 is more than peripheral to our business. This is important. 0:16:19.480 --> 0:16:22.280 We need the regulators to be really pushing this agenda 0:16:22.320 --> 0:16:25.640 as well and saying actually it's important around conduct, around 0:16:25.640 --> 0:16:28.320 what it means to be a great person in the 0:16:28.360 --> 0:16:31.760 finance industry, about making sure our reputation sell that. But 0:16:31.840 --> 0:16:33.600 we do need bottom up and what we've seen at 0:16:33.600 --> 0:16:37.120 the Diversity Project and we now have fifteen different work streams. 0:16:37.480 --> 0:16:40.320 Our most recent is the fifty plus group. Not that 0:16:40.360 --> 0:16:42.480 I'm behind that even though it asson see to have that, 0:16:42.880 --> 0:16:45.720 but we have these groups that are really led by 0:16:45.760 --> 0:16:49.200 the underrepresented people. So you know, the talk about black 0:16:49.200 --> 0:16:52.000 group is led mainly by black people. Now, I think 0:16:52.200 --> 0:16:55.320 then you get the passion, you get the absolute drive, 0:16:55.960 --> 0:17:00.280 you get absolute determination. But we can't do it alone people. 0:17:00.360 --> 0:17:02.440 You know, I learned from the thirty percent Club experience 0:17:02.440 --> 0:17:05.879 that was an initiative to create better gender balance on 0:17:05.920 --> 0:17:09.120 boards at least thirty percent women. We only made headway 0:17:09.240 --> 0:17:12.399 when we involved men in that, and so we do 0:17:12.520 --> 0:17:15.720 need to be I love your expression, Karlin muscular, because 0:17:15.880 --> 0:17:17.919 you know, it should feel very robust. It should be 0:17:17.920 --> 0:17:20.800 like a You've got a business objective here, Let's improve 0:17:20.880 --> 0:17:24.440 diversity of talent. Let's make sure that people are included 0:17:24.480 --> 0:17:27.360 when they join if they're diverse, and let's achieve better 0:17:27.400 --> 0:17:30.520 results for our clients. That's a very business oriented approach, 0:17:30.960 --> 0:17:34.080 but yeah, it needs a bit of everybody involvement, nuts 0:17:34.119 --> 0:17:40.239 and bolts. You mentioned differing reports, so I'll clarify. It's 0:17:40.280 --> 0:17:42.440 either thirty two or thirty three or thirty four companies 0:17:42.440 --> 0:17:44.560 that are taking apart thirty three this year in the 0:17:44.600 --> 0:17:47.520 year thirty three? Got it clear? Is it the biggest 0:17:47.520 --> 0:17:51.719 fund managers? Is it the big players? Or are they 0:17:51.960 --> 0:17:55.680 smaller companies. It's actually at all sizes and there isn't 0:17:55.680 --> 0:17:57.520 really a theme. So first out the gates, I want 0:17:57.520 --> 0:18:00.080 to give them credit where it's due were Schroeder's. So 0:18:00.119 --> 0:18:02.639 Peter Harrison, CEO of Shrona, has gone in touch with 0:18:02.680 --> 0:18:04.920 me the day I just dropped an email to the 0:18:04.960 --> 0:18:07.600 Advisor Council saying we've got this idea of a pathway 0:18:07.640 --> 0:18:11.840 program female fund managers, just a very targeted intervention, he wrote. 0:18:12.119 --> 0:18:15.520 Within a minute, I think back saying that yes we 0:18:15.560 --> 0:18:18.800 need this, and the numbers are quite quite remarkable. I mean, 0:18:18.920 --> 0:18:22.719 currently in the UK's estimated fewer than two hundred women 0:18:23.359 --> 0:18:26.600 female fund managers in Britain as a whole. If you've 0:18:26.600 --> 0:18:29.600 got sixty people on the program, you know that's very 0:18:29.680 --> 0:18:33.800 very sizeable. Do you have targets specifically for the number 0:18:33.800 --> 0:18:36.640 of women that you would like to see become senior 0:18:36.680 --> 0:18:39.560 fund managers as a result of this? So yes, I'm 0:18:39.560 --> 0:18:41.040 going to take the word senior to mean you're a 0:18:41.160 --> 0:18:43.440 named fund manager on an account. And that's sometimes where 0:18:43.440 --> 0:18:45.440 the confusion lies because people think, oh, I'm part of 0:18:45.480 --> 0:18:48.399 a fund management team. I've got the job description fund manager, 0:18:48.440 --> 0:18:50.600 but I'm not named on an account, and that's the 0:18:50.680 --> 0:18:54.320 prestigious role. You've just summarized it, Karen. I mean, sixty women. 0:18:54.320 --> 0:18:56.719 They're not all going to make it, presumably, but if 0:18:56.720 --> 0:18:59.800 we run this program three or four years, we could 0:19:00.359 --> 0:19:03.360 double the proportion of female fund managers. I mean that's 0:19:03.359 --> 0:19:05.159 assuming we take all the jobs, which might not be 0:19:05.240 --> 0:19:07.720 quite plausible. But you know, if you add sixty to 0:19:07.800 --> 0:19:10.720 the numerator and the denominators, roughly three and a half 0:19:10.720 --> 0:19:14.040 percent increasing. So this is where I'm really excited about 0:19:14.080 --> 0:19:17.280 what the Pathway program can do. This is not just 0:19:17.320 --> 0:19:20.120 sort of you know, whistling in the dark or having 0:19:20.200 --> 0:19:22.400 some sort of vague hope. This is saying we'll put 0:19:22.440 --> 0:19:24.280 this number of women through it and we'll make sure 0:19:24.359 --> 0:19:28.040 that they get fund management roles. So Helena Morrissey Fair 0:19:28.160 --> 0:19:31.640 speaking to me at Bloomberg headquarters here in London. She's 0:19:31.680 --> 0:19:35.719 the chair of the Diversity Project, talking about her Pathway 0:19:35.760 --> 0:19:40.359 program initiative. If it is successful, it could in just 0:19:40.640 --> 0:19:45.440 three years double the number of female fund managers in Britain. 0:19:46.160 --> 0:19:48.359 I'm Carolyn Hebger here in London. You can catch us 0:19:48.400 --> 0:19:51.199 every weekday morning for Bloomberg Daybreak. You're at beginning at 0:19:51.200 --> 0:19:54.440 six am in London. That's one am on Wall Street. Tom, 0:19:54.720 --> 0:19:57.960 there you Carolina, coming up on Bloomberg Daybreak weekend. Are 0:19:58.080 --> 0:20:02.280 things getting even dicier for President Biden? Internationally? I'm Tom 0:20:02.280 --> 0:20:17.840 Busby and this is Bloomberg broadcasting live from the Bloomberg 0:20:17.920 --> 0:20:21.560 Interactive Broker Studio in New York. Bloomberg eleven three oh 0:20:21.760 --> 0:20:25.560 to Washington, DC, Bloomberg ninety nine one to Boston, Bloomberg 0:20:25.640 --> 0:20:28.919 one oh six one to San Francisco, Bloomberg nine sixteen 0:20:29.000 --> 0:20:32.320 to the country, Sirius XM Channel one nineteen to London 0:20:32.520 --> 0:20:36.240 DAB Digital Radio, and around the globe the Bloomberg Business 0:20:36.240 --> 0:20:39.960 app and Bloomberg Radio dot Com. This is Bloomberg day 0:20:39.960 --> 0:20:48.600 Break Weekend, hight Tom Busby in New York with your 0:20:48.640 --> 0:20:51.119 global look ahead at the top stories for investors in 0:20:51.160 --> 0:20:54.240 the coming week. Russia's invasion of Ukraine will continue to 0:20:54.280 --> 0:20:56.480 be in sharp focus this coming week with a state 0:20:56.600 --> 0:20:59.600 visit to the White House by Germany's Chancellor. For more, 0:20:59.680 --> 0:21:02.520 let's to our Bloomberg ninety nine one newsroom in Washington, 0:21:02.640 --> 0:21:05.879 our sound on host Joe Matthew. Tom. Thanks, it's a 0:21:05.960 --> 0:21:09.000 very high profile visit and the timing of Oloff Schultzon's 0:21:09.040 --> 0:21:11.560 trip is particularly important. Joining us now to talk about 0:21:11.560 --> 0:21:15.159 a Bloomberg Whitehouse reporter Josh Wingrove, Josh, it's great to 0:21:15.200 --> 0:21:17.320 see you. Thanks for joining us. Thank you. This is 0:21:17.359 --> 0:21:19.119 an important visit. But I want to back up to 0:21:19.320 --> 0:21:22.320 kind of set the foundation for why it's even happening. 0:21:22.320 --> 0:21:26.120 As President Biden returns from his trip to Ukraine marking 0:21:26.320 --> 0:21:31.320 the one year anniversary, the first anniversary of this war effort, 0:21:31.359 --> 0:21:33.600 how important was it for him to actually show up 0:21:33.640 --> 0:21:36.439 in person for this occasion, a big surprise trip. You know, 0:21:36.480 --> 0:21:38.800 they've sort of been suggesting he might not even be 0:21:38.840 --> 0:21:41.159 able to go, the security be too brutal. So he 0:21:41.280 --> 0:21:43.479 sort of popped up there out of nowhere, you know, 0:21:43.600 --> 0:21:47.160 a big show of support for Ukraine as well as 0:21:47.200 --> 0:21:51.160 for the president, mister Zelinski. And you know, Biden seemed 0:21:51.840 --> 0:21:54.359 we had a thrilled, candidly to be able to get there. 0:21:54.400 --> 0:21:56.600 And then he went for his previously planned trip to Poland, 0:21:56.640 --> 0:21:59.760 where he gave a speech trying to hold together solidarity. 0:21:59.760 --> 0:22:02.199 You know, what is clear is that Joe Biden is 0:22:02.240 --> 0:22:06.200 trying to head off sort of weakening knees or fatigue 0:22:06.240 --> 0:22:09.720 among NATO in the West more broadly when it comes 0:22:09.760 --> 0:22:12.960 to supporting Ukraine in this fight, and he's sort of 0:22:12.960 --> 0:22:15.639 warned in that Poland speech like, Hey, this is not 0:22:15.720 --> 0:22:18.040