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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: This is Bloomberg Daybreak Weekend, our global look at the

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Speaker 2: top stories in the coming week from our Daybreak anchors

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Speaker 2: all around the world. Straight Ahead on the program, we'll

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Speaker 2: look to some key economic data in the US, along

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Speaker 2: with more earnings in tech. I'm Nathan Hager in Washington.

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Speaker 3: I'm Caline Hepga here in London, where we're asking how

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Speaker 3: central banks should respond to growing global economic anxiety.

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Speaker 4: I'm Doug Krisner looking ahead to the latest reading on

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Speaker 4: consumer inflation for Australia.

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Speaker 1: That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg

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Speaker 1: eleven three yeh New York, Bloomberg ninety nine to one, Washington, DC,

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Speaker 1: Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Sirius

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Speaker 1: XM one twenty one, and around the world on Bloomberg Radio,

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Speaker 1: dot Com and the Bloomberg Business App.

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Speaker 2: Good day to you. I'm Nathan Hager. We begin today's

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Speaker 2: program with some key economic data in the US. The

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Speaker 2: Fed's preferred gauge for inflation, the PCE Price Index, comes

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Speaker 2: out this Thursday, along with April readings on personal income

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Speaker 2: and spending, for more on the numbers and what they

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Speaker 2: could mean for FED policy. We're joined by Stuart paul Us,

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Speaker 2: economist with Bloomberg Economics. Of course we saw those hot

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Speaker 2: April readings on consumer and producer prices. Are the PCE

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Speaker 2: numbers do you think going to be any different, Stuart?

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Speaker 5: Where they're also going to be hot. We're expecting about

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Speaker 5: zero point four percent month on month headline PCE inflation.

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Speaker 5: That'll push the year on year PCE inflation rate up

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Speaker 5: to about three point eight percent from three point five

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Speaker 5: percent in March. So still far too hot for comfort

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Speaker 5: for the FED, that's for sure.

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Speaker 2: Yeah. Is it just these elevated energy prices that are

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Speaker 2: driving things for this index?

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Speaker 5: You know, even in the core it's going to be hot.

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Speaker 5: Were expecting core inflation to inch up to about three

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Speaker 5: point three percent from three point two percent prior. Look,

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Speaker 5: there's some energy prices that bleed into the core, for

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Speaker 5: example in airfares. There's also a little bit of a

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Speaker 5: quirk this month where shelter price is basically jump. It's

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Speaker 5: all downstream of data collection issues during the government shutdown

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Speaker 5: last October. So it's going to be an elevated core reading.

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Speaker 5: The annual pace of core inflation also just still too

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Speaker 5: hot for comfort for the FED. And the bottom line

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Speaker 5: really is that spending is continuing a pace, despite the

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Speaker 5: fact that elevated energy prices are weighing on household and

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Speaker 5: are effectively bleeding bleeding household a little bit drier than

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Speaker 5: usual because they have to spend more at the pump.

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Speaker 5: Even though energy prices are really causing a little bit

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Speaker 5: of an issue for household, household spending is con inuing

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Speaker 5: a pace, so the FED can afford to weight, It

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Speaker 5: can afford to sort of keep its foot on the

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Speaker 5: brakes a little bit. It doesn't need to hike to

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Speaker 5: address energy induced inflation. Instead, it can afford to wait

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Speaker 5: to watch whether inflation pressures start to broaden. I don't

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Speaker 5: expect to see that in this personal income and outlayers

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Speaker 5: report and PC inflation report. But still just inflation too

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Speaker 5: high for comfort, spending continuing a pace, and that's all

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Speaker 5: reason for the Fed's remain on hold.

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Speaker 2: So is that going to be reflected in what we

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Speaker 2: get from the actual personal spending and income numbers as well?

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Speaker 2: And what's the trend right now? Are we seeing the

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Speaker 2: trend shift toward I don't want to say it persistent inflation.

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Speaker 5: Well, so the personal income element that we're going to

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Speaker 5: get in this report on Thursday is going to show

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Speaker 5: about zero point five percent month on month growth in

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Speaker 5: personal income. Remember, we had a very hot jobs report,

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Speaker 5: a lot of hiring, a lot of wage growth. That

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Speaker 5: personal income in tandem with elevated tax refunds, also paired

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Speaker 5: with positive wealth effects, those are all supporting spending right now.

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Speaker 5: So we're going to probably see spending on you know,

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Speaker 5: about a zero point five percent month over month pace

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Speaker 5: in the month of April. It's not as strong as

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Speaker 5: in March, which was mostly driven by gasoline prices and

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Speaker 5: gasoline spending, but it's still hot income, hot spending. Households

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Speaker 5: are weathering the storm created by higher energy prices, and

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Speaker 5: so the FED is going to be on pause for

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Speaker 5: the foreseeable future.

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Speaker 2: For the foreseeable future. You're not expecting that we could

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Speaker 2: see hikes anytime soon, then.

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Speaker 5: No, I don't think so. The FED has this balancing

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Speaker 5: act that it needs to deal with right now. It's

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Speaker 5: two different risks. The first is that low and even

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Speaker 5: negative real aggregate labor income growth means that there will

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Speaker 5: come a point in time where households do have to

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Speaker 5: tighten their belt. We will get to that point in

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Speaker 5: time at some point. The other risk that the FED

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Speaker 5: has to contend with is that low real interest rates

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Speaker 5: fuel a credit induced in expansion, So that would be inflationary.

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Speaker 5: That's exactly what the FED does not want to see.

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Speaker 5: I think that right now the FED is betting on

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Speaker 5: the former risk that a relatively cool labor market through

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Speaker 5: time will prevent inflation pressures from broadening. And that's really

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Speaker 5: what's going to matter. So the FED is going to

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Speaker 5: lean towards that risk and is going to I think,

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Speaker 5: stay on hold rather than try to tighten financial conditions. Remember,

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Speaker 5: financial conditions are already tightening a little bit, and for

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Speaker 5: every move that we see upward in interest rates in

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Speaker 5: the market, the FED can afford to wait a little

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Speaker 5: bit more because markets are doing the heavy lifting for

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Speaker 5: the FED by tightening financial conditions. The Fed doesn't have

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Speaker 5: to rush to tighten financial conditions itself. If the market

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Speaker 5: is already doing it, well, then what is.

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Speaker 2: The risk of a potential policy mistake if the Fed

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Speaker 2: does stay on hold for a long time.

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Speaker 5: Well, So it's exactly that that issue is that markets

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Speaker 5: don't do enough of the heavy lifting, and the FED

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Speaker 5: is too slow to move, and that we start to

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Speaker 5: see a relatively low real interest rate lead to a

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Speaker 5: credit induced expansion. That would really be the market. That

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Speaker 5: would really be the policy failure that the FED runs

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Speaker 5: the risk of dealing with. But I don't think that

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Speaker 5: that's something that we would expect to see the FED

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Speaker 5: trying to address or trying to get ahead of, perhaps

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Speaker 5: even this year.

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Speaker 2: Thanks for the Stuart, good having you on with us.

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Speaker 2: It's Stuart Paul, us economists for Bloomberg Economics. Let's take

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Speaker 2: a look now, add some stocks making news in the

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Speaker 2: week ahead. I'm Nathan Hager with Bloomberg Equities reporter, Avalon

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Speaker 2: Pernell even more tech earnings as the season winds down.

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Speaker 2: We're going to hear from Salesforce Wednesday. Avalon, Investor sentiment

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Speaker 2: doesn't look all that great for this stock. What's weighing

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Speaker 2: it down?

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Speaker 6: You're absolutely right, Ai, and future growth will definitely be

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Speaker 6: top of mind for investors as Salesforce heads into that

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Speaker 6: third quarter earnings report. Investors will be looking for greater

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Speaker 6: clarity on Salesforce's second half growth acceleration outlook. Many analysts

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Speaker 6: across the street we're saying that at this point, it

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Speaker 6: doesn't look like they're going to be able to reach

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Speaker 6: the very high bar that they've set for themselves, and

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Speaker 6: part of that is based on the question marks that

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Speaker 6: remain on how exactly their business is going to continue

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Speaker 6: as AI continues to get more sophisticated. They were definitely

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Speaker 6: an early victim of the sas apocalypse, as some of

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Speaker 6: our reporters were calling it, so definitely something that we'll

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Speaker 6: be keeping an eye on.

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Speaker 2: We'll talk a little bit more about how high the

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Speaker 2: bar is right now and why it might be so

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Speaker 2: tough for Salesforce to hit it.

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Speaker 6: Yes, absolutely so. Those gross margins for the second half

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Speaker 6: of the year are very much a key concern as

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Speaker 6: in increasing AI investments are expected to eat into operating margin.

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Speaker 6: Also important to note that Bank of America had a

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Speaker 6: great note out they reinstated coverage of the firm with

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Speaker 6: an underperform rating, noting that the company is facing an

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Speaker 6: AI driven reset as companies that typically would have gotten

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Speaker 6: contracts with them are either easing off or choosing to wait,

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Speaker 6: and that's also causing a lot of issues for Salesforce.

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Speaker 6: A lot of question marks about how exactly a slowdown

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Speaker 6: in new contracts as heightened geopolitical concerns driven by the

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Speaker 6: Iran war and also longer sales cycles are going to

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Speaker 6: impact companies like Salesforce.

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Speaker 2: So a little bit more of the software story to

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Speaker 2: be told this week, and a little bit more of

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Speaker 2: the broader tech story as well, because we're going to

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Speaker 2: hear from Dell on Thursday. After all, we've heard from

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Speaker 2: the computing names this quarter, what are we expecting from Dell?

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Speaker 6: Absolutely, Dell is also facing a very high bar heading

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Speaker 6: into earnings next Thursday. Investors will be looking for the

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Speaker 6: tech companies AI and server results to meet a fairly

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Speaker 6: high hurdle, noting ahead of the results, analysts at Morgan

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Speaker 6: Stanley and Bernstein have already boosted price targets, so clearly

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Speaker 6: some people on the street think that they're going to

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Speaker 6: be able to reach that high bar. Meanwhile, though, UBS

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Speaker 6: does have a great note stepping to the sidelines and

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Speaker 6: saying that they are going to go ahead and downgrade

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Speaker 6: the stock to neutral, saying that investors are largely already

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Speaker 6: pricing in Dell's AI server demand and they don't necessarily

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Speaker 6: see a ton more left to do. Bloomberg and Tellent

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Speaker 6: just had a really great note out as well, saying

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Speaker 6: that they expect a print to illustrate strong demand momentum

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Speaker 6: across all of Dell's business segments.

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Speaker 2: Well, even with that sort of divided investor sentiment going

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Speaker 2: into this print, this stock has had an amazing run

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Speaker 2: so far this year. Does that raise the bar even

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Speaker 2: more for Dell to sort of outperform for analysts and investors.

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Speaker 6: Absolutely, And I think that's really reflected in the options data,

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Speaker 6: which currently at the moment is implying an eleven percent

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Speaker 6: move after those results. Obviously that could be to the

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Speaker 6: upside or to the downside. But considering they've had a

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Speaker 6: lot of really good news even this past month, they

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Speaker 6: announced that they had added another one thousand customers for

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Speaker 6: their KEYAI product line in the past quarter, and now

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Speaker 6: that they're at around five thousand clients for its AI factory,

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Speaker 6: and they're counting companies like Eli, Lilly, which I cover

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Speaker 6: very extensively, Honeywell, and also Samsung among its customer base.

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Speaker 6: So that's definitely going to influence some investor sentiment and

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Speaker 6: continue to make the bar higher and higher.

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Speaker 2: Yeah, you got to think about so many of these

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Speaker 2: companies feeding into the AI story, whether it's pharma or

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Speaker 2: anything else. I don't know if we can say that

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Speaker 2: for Abercrombie and Fitch when they report on Wednesday, what

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Speaker 2: are we expecting going into their results.

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Speaker 6: It's a really good question because analysts remain fairly mixed

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Speaker 6: heading into that print. Raymond James has already trimmed its

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Speaker 6: price target on expectations based on their expectations that it's

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Speaker 6: going to have softening trends at Hollister, which, for those unfamiliar,

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Speaker 6: Abercrombie and Fitch does have a brand geared towards younger consumers,

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Speaker 6: those teens and tweens at Hollister. Jeffrey's also writing that

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Speaker 6: decelerating data has been a key concern fors and is

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Speaker 6: likely weighing on shares. Abercrombie and Fitch has been a

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Speaker 6: company that we've had in focus for the past couple

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Speaker 6: of years as they've been in the middle of a

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Speaker 6: wider turnaround. They very much got a lot of upside

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Speaker 6: as teens and tweens got really interested in the nineties

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Speaker 6: and early two thousands clothing styles. But now there's a

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Speaker 6: lot of question marks as fuel cost increase, whether those

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Speaker 6: customers are still going to be going to Abercrombie and

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Speaker 6: Fitch or if they're going elsewhere. It's definitely something investors

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Speaker 6: will be keeping in mind.

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Speaker 2: Making me feel old about the nineties trend coming back.

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Speaker 2: I remember when Abercrombie and Fitch was a for teens

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Speaker 2: and tweens. But at any rate, we're going to hear

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Speaker 2: from a lot of other retail names as well, not

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Speaker 2: just Abercrombie, but Gap is reporting in Dollar Tree. Could

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Speaker 2: they give us a different sense of what we can

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Speaker 2: expect from the consumer.

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Speaker 6: Absolutely, it's really going to be a question of how

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Speaker 6: is a consumer across a very wide spectrum of price

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Speaker 6: points like a Dollar Tree, like Gap and even Abercrombie

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Speaker 6: and Fitch, how exactly a US consumer faring. We already

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Speaker 6: know from Abercrombie and Fitch. Day were very early to

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Speaker 6: say that they are expecting those headwinds from the Iran

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Speaker 6: conflict on its business, from those extra fuel costs, and

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Speaker 6: also customers being pinching their dollars to say the least,

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Speaker 6: as gas prices increase. But it'll be really interesting to

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Speaker 6: see if companies that are geared more towards the lower

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Speaker 6: end of that price spectrum, like a Dollar Tree, we'll

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Speaker 6: see a little bit of upside.

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Speaker 2: Thank you for this, Avalon, great having you on with us.

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Speaker 2: That is a Bloomberg Equities reporter Avalon Parnell And coming

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Speaker 2: up on Bloomberg Daybreak weekend, we'll look at how central

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Speaker 2: banks should respond to growing global economic anxiety. I'm Nathan Hager,

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Speaker 2: and this is Bloomberg. This is Bloomberg Daybreak weekend, our

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Speaker 2: global look ahead at the top stories for investors in

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Speaker 2: the coming week. I'm Nathan Hager in Washington. Up later

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Speaker 2: in our program and will look to a key inflation

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Speaker 2: reading in Australia. But first in the coming days, Senior

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Speaker 2: policymakers and academic figures from the world of macroeconomics gather

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Speaker 2: in Iceland to discuss the evolving role of central banks

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Speaker 2: in today's landscape. This year, the Reykiavik Economic Conference is

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Speaker 2: set against the backdrop of geopolitical tensions and persistent inflation worries.

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Speaker 2: So how will central banks respond? For more, Let's go

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Speaker 2: to London and bring in Bloomberg Daybreak. You're a banker,

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Speaker 2: Caroline Hepker Nathan.

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Speaker 3: As a net importer of energy, Europe's economic growth for

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Speaker 3: carts have begun to be cut inflation is expected to

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Speaker 3: rise and governments have little ammunition to shield their citizens

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Speaker 3: and businesses from the Middle East shock. The Secretary General

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Speaker 3: of the OECD is just one voice raising concern. Mattirs Corman,

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Speaker 3: speaking on the sidelines of the recent Group of Seven meeting,

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Speaker 3: said the challenge for central banks will be to deal

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Speaker 3: with the combination of elevated inflation risks and weaker economic activity.

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Speaker 3: Is they weigh possible interest rate increases. The Paris based

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Speaker 3: OECD became the first major international institution to warn in

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Speaker 3: March that the Iran war would fuel price increases and

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Speaker 3: dampen economic activity. Since then, a bond market route has

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Speaker 3: injected urgency into the situation, forcing ministers and central bankers

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Speaker 3: to reckon with growing policy challenges from the shock of

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Speaker 3: rising oil prices. The increasing uncertainty is something at the

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Speaker 3: forefront of Iceland's central bank governor Alskier Johnson, who is

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Speaker 3: hosting the event.

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Speaker 7: We've seen inflation expectations rise, although the situation in Europe

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Speaker 7: is different. Market is cooler, slower growth, but the main

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Speaker 7: problem is that the old price development is very difficult

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Speaker 7: to focust.

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Speaker 8: You have a lot of central packers sampling here next week,

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Speaker 8: Can you just briefly tell me what's ahead, what you're

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Speaker 8: expecting from that meeting or from that conference.

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Speaker 7: My camp is just between you, you know, Europe and America.

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Speaker 7: And in this conference we have both academics, most in

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Speaker 7: the US and policymakers and now also tip economist from

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Speaker 7: the main bank's main Kumoto Banks.

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Speaker 3: That was Iceland Central Bank governor Asker Johnsen speaking to

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Speaker 3: Bloomberg's Wagna Hilda Sigur dar dott this ahead of the

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Speaker 3: Rekavic Economic Conference that is taking place in the next

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Speaker 3: few days and joining us now for more on the

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Speaker 3: event and the macroeconomic backdrop is Bloomberg's director of Global Economics,

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Speaker 3: Jamie Rush and our Iceland based reporter Wagna Hilder Cigar

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Speaker 3: Dar dotted Wragnahilder. What can we expect?

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Speaker 8: So the Reykavik Economic Conference is happening now for the

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Speaker 8: third time, and we will have central bank governors and

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Speaker 8: academics along with economic leaders from all over the world,

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Speaker 8: and they will gather and discuss the current economic situation

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Speaker 8: and its main challenges. Say, it does come against the

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Speaker 8: backdrop of major and sudden geopolitical shocks that have been

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Speaker 8: changing the inflation calculus for central banks globally, so that

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Speaker 8: will obviously be discussed, and there's a really high profile

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Speaker 8: lineup of central bank speakers, sploding multiple FED precedents. There's

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Speaker 8: the Governor of the Reserve Bank of India, Sanjai Malhotra,

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Speaker 8: and the Bank of England's Andrew Bailey, and and many

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Speaker 8: others including from Europe, Scandinavian countries and so.

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Speaker 3: On, Jamie. So the conference does come at a particularly

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Speaker 3: challenging time for the global economy, and as Wagner Hilde

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Speaker 3: is describing, there will be a lot of important central

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Speaker 3: bank leaders and economists there. So what do you think

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Speaker 3: are the kind of major hurdles that central bank governors

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Speaker 3: are thinking about right now?

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Speaker 9: Well, I think for all central bank governors that is

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Speaker 9: a difficult time because they're faced with the worst kind

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Speaker 9: of shock that they can have, one that makes the

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Speaker 9: economy weak and inflation highs. They ought to be trying

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Speaker 9: to support the economy through the shock, but they can't

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Speaker 9: because they're worried about inflation. And so for them, balancing

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Speaker 9: what to do in this sort of environment is extremely

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Speaker 9: uncomfortable that it'll be occupying all of their thoughts and

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Speaker 9: they'll be hoping to get the decision right because their

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Speaker 9: careers will be won or lost on this.

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Speaker 3: Yeah, Ragna Hilda, What do you think is going to emerge?

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Speaker 3: Do you think that there will be common themes? That's

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Speaker 3: a big question, isn't it. Europe, for example, is a

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Speaker 3: major energy importer. Other parts of the world it might

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Speaker 3: be a slightly different story. How much consensus. What are

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Speaker 3: people are going to be discussing.

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Speaker 8: The major topics are likely to revolve around the oil

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Speaker 8: price and geopolitical uncertainty. Tariffs will be discussed and as

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Speaker 8: well as currency and how monetary policy will need to

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Speaker 8: react to these varying factors. They will be I'm told

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Speaker 8: they will be talking about currencies, for instance, and how

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Speaker 8: they can both work as buffers and amplifiers of shocks,

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Speaker 8: and the process and cons of bigger currency areas, effects

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Speaker 8: of inter spread between different currency areas. One of the

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Speaker 8: things that will also be discussed is how tighter regulation

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Speaker 8: for financial institutions are leading to financial services being provided

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Speaker 8: outside of the banking sector, and there is currently a

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Speaker 8: concern over the growth of private credit and lending that's

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Speaker 8: happening away from the underwriting standards of the banks. Or

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Speaker 8: public bond markets. So this is a trend that can

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Speaker 8: essentially increase economic fluctuation rather than diminish it.

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Speaker 3: Yeah, okay, so lots then for people to think about, Jamie.

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Speaker 3: We seem to be at a pivotal moment also because

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Speaker 3: of the uncertainty around the inflation re shock around you

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Speaker 3: how that's going to be dealt with. We started to

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Speaker 3: see downgrades to European economic growth, deterioration in terms of

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Speaker 3: PMI type data, and the worry that inflation is going

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Speaker 3: to start rising. How much is that going to weigh

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Speaker 3: on central bank governors and how are they going to

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Speaker 3: try to respond to some of these threats.

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Speaker 9: Well, I think the initial feeling was, or the hope

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Speaker 9: was that the conflicts would be over quickly, the straight

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Speaker 9: would open and things would get back to normal, And

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Speaker 9: of course that just hasn't happened. So central bankers basically

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Speaker 9: started off by saying, we need time to assess the

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Speaker 9: data and see what the layer of the land is.

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Speaker 9: That's reasonable. Well, the layer of the land is becoming

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Speaker 9: clearer and it's not looking very good, and so they're

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Speaker 9: now moving towards acting, and so acting means trying to

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Speaker 9: signal that they are credible actors and probably hiking or

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Speaker 9: at least canceling any rate cuts that they'd had planned.

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Speaker 9: So I think that's how things were evolving.

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Speaker 3: Do you think that central bankers and economists are preparing

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Speaker 3: for a longer closure of the Strait of Homers, or

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Speaker 3: at least trying to signal anticipate that they might be

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Speaker 3: ready were that to happen.

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Speaker 9: Well, I really think they ought to be. If you

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Speaker 9: look at the negotiating position of Iran and the US,

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Speaker 9: they are very, very far apart. If you take into

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Speaker 9: account the views of Israel as well, who are not

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Speaker 9: at the negotiating table, but the Israeli view matters, then

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Speaker 9: they're even further apart. And of course Irani leverage just

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Speaker 9: increases as the midterm elections in the US get nearer,

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Speaker 9: so I don't think there's any particular incentive for them

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Speaker 9: to reach the deal. So yeah, central bankers should be

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Speaker 9: thinking this could be a prolonged conflict. Oil could be

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Speaker 9: missing from global markets, twenty percent of the world be missing.

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Speaker 9: How we're going to respond, and they should be thinking

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Speaker 9: about that in advance of time, not waiting for its

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Speaker 9: sharp and the data.

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Speaker 3: Ragna Hilda You've been speaking to the Icelandic Central Bank governor.

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Speaker 3: What are the particular issues for Iceland and his assessment

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Speaker 3: of the uncertainty around the backdrop Economically, well.

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Speaker 8: Iceland has been battling high inflation for quite a while

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Speaker 8: now that the central Bank has been struggling to bring down. So,

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Speaker 8: you know, Iceland being a small, open economy, we are

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Speaker 8: very dependent on what happens in the rest of the world.

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Speaker 8: We are dependent on decisions that are being made on

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Speaker 8: both sides of the Atlantic with the FAT and the ECB.

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Speaker 8: But obviously just all microeconomic developments also will factor in Iceland.

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Speaker 8: So I think they are just watching very closely. They

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Speaker 8: stand ready to hike if needed. I think this is

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Speaker 8: a very critical moment this summer for Iceland to bring

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Speaker 8: inflation down, So I would say they're stand ready to

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Speaker 8: react as needed.

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Speaker 3: Yeah, Jamie. In terms of that question, then about European policy,

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Speaker 3: how much will it be determined by the US Federal Reserve.

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Speaker 3: That's also been a major issue in bond markets, hasn't

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Speaker 3: it in terms of the recent run up in rates.

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Speaker 9: Yeah, I mean the answer is not much. I think.

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Speaker 9: I mean, first of all, the US is just in

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Speaker 9: a different position from Europe right as it's not an

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Speaker 9: exporter really, but it's neither an important or an exporter

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Speaker 9: of crude, so it doesn't have the same economic consequences.

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Speaker 9: There's politics happening in the US which isn't happening here

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Speaker 9: in Europe, so you wouldn't want to follow the FED

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Speaker 9: playbook if you think that that there's a political element

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Speaker 9: to the decision making. So I know, I don't think

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Speaker 9: there's a big reader cross from what's happening in the

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Speaker 9: US to ECB or Bank of England policy. But of

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Speaker 9: course global bond yields, they're determined globally, so we will

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Speaker 9: be seeing some of that co movement in bond pricing

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Speaker 9: and indeed tightening financial conditions.

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Speaker 3: That's interesting because we're going into a new era with

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Speaker 3: the Federal Reserve onto a new leadership. It's also noteworthy

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Speaker 3: when you mentioned politics that the US Treasury Sectory Scott Bessett,

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Speaker 3: you know, is very active. I wonder what you're thinking

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Speaker 3: is around you know, maybe those US Central Bank governors,

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Speaker 3: what might they be thinking about and discussing in what

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Speaker 3: will be their perspective as they visit Iceland.

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Speaker 9: It's a tricky one isn't it. So we don't know

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Speaker 9: very much about the new FED chair and exactly how

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Speaker 9: he's going to interact with the rest of the governors,

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Speaker 9: and that'll be the key relationship to follow. Will he

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Speaker 9: be able to persuade them that they shouldn't hike That

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Speaker 9: seems to be the question in markets at the moment. Meanwhile,

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Speaker 9: our US team think that actually, despite all the hor

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Speaker 9: moves related oil related inflation, that actually there's some reasons

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Speaker 9: to think that inflation may be coming down more on

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Speaker 9: a more sustained basis and that would actually argue for cuts.

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Speaker 9: So there's lots we'll see how it will unfold, but

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Speaker 9: we will certainly be monitoring that very closely.

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Speaker 3: How concerned are you about the kind of current picture

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Speaker 3: in terms of the deterioration of the economy in Europe?

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Speaker 3: If I can ask you that broad question about where

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Speaker 3: we are for consumers and businesses in Europe.

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Speaker 9: Well, the economy is not exactly going gangbusters. So coming

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Speaker 9: into this, the labor market wasn't all that strong. But

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Speaker 9: I think there are there are some reasons to be

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Speaker 9: optimistic because if you think back to twenty twenty one,

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Speaker 9: when oil prices, gas prices went up well even since then.

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Speaker 9: Actually a lot of resilience has been achieved in the

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Speaker 9: European energy sector and so our reliance on oil, our

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Speaker 9: reliance on gas has been falling over even over the

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Speaker 9: past few years, and so we're actually in a slightly

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Speaker 9: better position, I think to deal with the shop. Also,

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Speaker 9: because the labor market is weak, the ECB, the Bank

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Speaker 9: of England, they don't have to respond as forcefully as

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Speaker 9: they did in twenty twenty one because they already know

436
00:24:30,440 --> 00:24:32,080
Speaker 9: that they're not going to get loads of wage growth.

437
00:24:32,640 --> 00:24:34,760
Speaker 9: It's very unlikely to happen. So I think for a

438
00:24:34,760 --> 00:24:36,160
Speaker 9: couple of reasons, it's going to be a bit different

439
00:24:36,200 --> 00:24:37,080
Speaker 9: to what happened last time.

440
00:24:37,440 --> 00:24:41,680
Speaker 3: So my thanks there to Ragna Hilda Sigurder dotted and

441
00:24:41,760 --> 00:24:45,480
Speaker 3: to Bloomberg's Director of Global Economics Jamie Rush So we

442
00:24:45,560 --> 00:24:50,480
Speaker 3: learned something about economics and also about Iceland. Will have

443
00:24:50,640 --> 00:24:53,720
Speaker 3: more coverage of all the talking points from the Rekivic

444
00:24:53,840 --> 00:24:57,880
Speaker 3: Economic Conference on Bloomberg platforms. I'm Caroline Hepget. You can

445
00:24:57,920 --> 00:25:01,199
Speaker 3: catch us every weekday morning here Bloomberg Daybreak youre at

446
00:25:01,240 --> 00:25:04,119
Speaker 3: beginning at six am in London. That's one am on

447
00:25:04,280 --> 00:25:05,560
Speaker 3: Wall Street. Nathan.

448
00:25:06,160 --> 00:25:09,080
Speaker 2: Thanks Caroline and coming up on Bloomberg day Break weekend,

449
00:25:09,080 --> 00:25:11,600
Speaker 2: we'll look ahead to some key economic data down under.

450
00:25:11,760 --> 00:25:26,400
Speaker 2: I'm Nathan Hagar and this is Bloomberg. This is Bloomberg

451
00:25:26,440 --> 00:25:28,800
Speaker 2: day Break Weekend, our global look ahead at the top

452
00:25:28,800 --> 00:25:31,439
Speaker 2: stories for investors in the coming week. I'm Nathan Hagar

453
00:25:31,520 --> 00:25:35,199
Speaker 2: in Washington. We go to Australia next, where markets expect

454
00:25:35,200 --> 00:25:38,720
Speaker 2: an elevated reading on consumer inflation in the coming week.

455
00:25:38,960 --> 00:25:41,080
Speaker 2: For more, let's go to Doug Krisner, host of the

456
00:25:41,119 --> 00:25:43,040
Speaker 2: Bloomberg Daybreak Asia podcast.

457
00:25:43,720 --> 00:25:46,880
Speaker 4: Nathan, there has been no escaping the global worry over

458
00:25:46,960 --> 00:25:50,879
Speaker 4: higher inflation as the result of war in Iran. In Australia,

459
00:25:50,960 --> 00:25:53,679
Speaker 4: the Central Bank was quick to tighten policy after the

460
00:25:53,720 --> 00:25:57,240
Speaker 4: conflict began. Now in the week ahead, we'll get the

461
00:25:57,280 --> 00:26:00,760
Speaker 4: consumer inflation data for Australia. To help us preview these

462
00:26:00,840 --> 00:26:04,080
Speaker 4: numbers and what they mean for the RBA, Let's bring

463
00:26:04,080 --> 00:26:06,879
Speaker 4: in Bloomberg. Swati Pondi Swati is a member of the

464
00:26:06,920 --> 00:26:11,440
Speaker 4: ECOGUV team for Southeast Asia and Asion. Swati, thank you

465
00:26:11,520 --> 00:26:13,560
Speaker 4: so much for being here. Can you give me a

466
00:26:13,600 --> 00:26:16,920
Speaker 4: sense of what the market is expecting in terms of

467
00:26:17,040 --> 00:26:19,280
Speaker 4: the cost of living in Australia.

468
00:26:19,920 --> 00:26:24,040
Speaker 10: So Doug in Australia, we have had elevated inflation for

469
00:26:24,160 --> 00:26:28,520
Speaker 10: quite some time. Even before the war in Iran began,

470
00:26:29,160 --> 00:26:33,119
Speaker 10: the Reserve Bank of Australia was sounding quite worried about

471
00:26:33,920 --> 00:26:39,040
Speaker 10: a hi or strong domestic demand and strong inflationary impulse

472
00:26:39,119 --> 00:26:43,720
Speaker 10: across the economy, and the war in Iran, which has

473
00:26:43,840 --> 00:26:50,560
Speaker 10: caused an energy price shock, further exacerbated those concerns. So

474
00:26:51,119 --> 00:26:55,080
Speaker 10: the Reserve Bank targets inflation at the midpoint of its

475
00:26:55,080 --> 00:26:58,800
Speaker 10: two to three percent target, so that's two point five percent,

476
00:26:59,200 --> 00:27:03,280
Speaker 10: and we have had inflation overshooting not just two point

477
00:27:03,320 --> 00:27:06,000
Speaker 10: five but also the three percent the top of the band,

478
00:27:06,520 --> 00:27:13,240
Speaker 10: for quarter after quarter. And the RBA released latest forecasts

479
00:27:13,680 --> 00:27:18,120
Speaker 10: earlier this month and it's not looking like we will

480
00:27:18,119 --> 00:27:22,800
Speaker 10: be back hitting the midpoint until twenty twenty eight, So

481
00:27:22,880 --> 00:27:26,840
Speaker 10: that is the backdrop against which we get this monthly

482
00:27:27,119 --> 00:27:32,119
Speaker 10: report next week, which will be the first month of

483
00:27:32,200 --> 00:27:36,080
Speaker 10: the new quarter. And the RBA looks at the quarterly

484
00:27:36,200 --> 00:27:40,520
Speaker 10: data because the monthly report is still new for Australia

485
00:27:41,040 --> 00:27:45,560
Speaker 10: and it's not that reliable, so a lot of the

486
00:27:45,760 --> 00:27:48,560
Speaker 10: economists would look at the April data and try and

487
00:27:48,640 --> 00:27:56,160
Speaker 10: see whether inflationary impulse. Are strong getting stronger feeding into

488
00:27:56,320 --> 00:27:59,159
Speaker 10: services or other parts of the economy or is it

489
00:27:59,280 --> 00:28:01,080
Speaker 10: just restricted fuel prices?

490
00:28:01,240 --> 00:28:04,560
Speaker 4: So beyond fuel, are there certain components that you think

491
00:28:04,800 --> 00:28:08,720
Speaker 4: might represent sticky inflation. You and I were talking a

492
00:28:08,760 --> 00:28:11,760
Speaker 4: moment ago just about housing, and I'm wondering whether shelter

493
00:28:11,960 --> 00:28:16,400
Speaker 4: cost could be a contributor to this upward push and inflation.

494
00:28:17,560 --> 00:28:23,080
Speaker 10: Yes, housing is the biggest contributor for inflation in Australia

495
00:28:23,119 --> 00:28:25,760
Speaker 10: and it has been the case for many quarters now.

496
00:28:26,680 --> 00:28:31,719
Speaker 10: That includes electricity, so utility prices which are also elevated.

497
00:28:32,400 --> 00:28:36,879
Speaker 10: The cost of building a property is also quite high

498
00:28:36,920 --> 00:28:40,560
Speaker 10: because material costs have gone up and expected to go

499
00:28:40,680 --> 00:28:44,280
Speaker 10: up further right because of their supply chain issues as

500
00:28:44,280 --> 00:28:48,160
Speaker 10: a result of the war. And the other thing that

501
00:28:48,240 --> 00:28:52,800
Speaker 10: goes into the housing basket is rents, and even though

502
00:28:52,880 --> 00:28:56,520
Speaker 10: we are seeing some slow down in house price growth,

503
00:28:57,200 --> 00:29:03,120
Speaker 10: rents remain elevated. Rentals can see rates are near record

504
00:29:03,200 --> 00:29:07,080
Speaker 10: lows and there are still a lot of anecdotes around

505
00:29:07,480 --> 00:29:11,680
Speaker 10: the big cities like Sydney or Melbourne where people are

506
00:29:11,760 --> 00:29:16,840
Speaker 10: queuing up for rental inspections to find a place to live.

507
00:29:17,520 --> 00:29:20,120
Speaker 4: In the last week we had the Bloomberg Forum for

508
00:29:20,320 --> 00:29:23,720
Speaker 4: Investment Managers, and we had a chance to visit with

509
00:29:24,000 --> 00:29:27,680
Speaker 4: the Assistant Governor for the RBA, Sarah Hunter, and she

510
00:29:27,840 --> 00:29:33,240
Speaker 4: highlighted the danger of rising inflation expectations. And I'm wondering

511
00:29:33,560 --> 00:29:37,360
Speaker 4: away from the reading on CPI whether the RBA is

512
00:29:37,400 --> 00:29:42,040
Speaker 4: perhaps more concerned about what the expectations for inflation may

513
00:29:42,080 --> 00:29:43,080
Speaker 4: be in the future.

514
00:29:43,280 --> 00:29:49,520
Speaker 10: Absolutely, inflation expectations currently have been anchored, especially the long

515
00:29:49,600 --> 00:29:54,479
Speaker 10: term inflation expectations, and that has been the biggest reason

516
00:29:54,600 --> 00:30:00,240
Speaker 10: why the RBA was very cautious when it was using

517
00:30:00,360 --> 00:30:03,600
Speaker 10: interest rates just after the pandemic and the infrast cutting

518
00:30:03,640 --> 00:30:07,920
Speaker 10: interest rates and throughout it kept saying that we want

519
00:30:07,960 --> 00:30:12,000
Speaker 10: to make sure that inflation expectations are anchored, not just inflation,

520
00:30:13,080 --> 00:30:16,440
Speaker 10: and they also wanted to preserve the gains that we've

521
00:30:16,480 --> 00:30:20,040
Speaker 10: had in job market, so unemployment is quite low here.

522
00:30:21,160 --> 00:30:26,840
Speaker 10: But there are now worries that with inflation remaining elevated

523
00:30:26,920 --> 00:30:31,800
Speaker 10: for so many quarters, like it's probably been one and

524
00:30:31,800 --> 00:30:35,360
Speaker 10: a half years or so of elevated inflation, that they

525
00:30:35,360 --> 00:30:39,000
Speaker 10: are kind of getting worried that it may get entrenched.

526
00:30:39,400 --> 00:30:42,800
Speaker 10: And once that happens, then it starts to feed into

527
00:30:42,840 --> 00:30:49,240
Speaker 10: other things like people demanding higher wages or businesses feeling

528
00:30:49,240 --> 00:30:52,600
Speaker 10: more confident about passing on their costs and so on.

529
00:30:52,800 --> 00:30:55,560
Speaker 10: So when that happens and it becomes a vicious cycle,

530
00:30:55,680 --> 00:30:58,080
Speaker 10: that is a nightmare for any central banker.

531
00:30:58,360 --> 00:31:00,560
Speaker 4: Right now, I believe that money markets are pricing in

532
00:31:00,600 --> 00:31:03,360
Speaker 4: at least one more rate hike from the RBA this year.

533
00:31:03,520 --> 00:31:07,600
Speaker 4: Is there the possibility that we get a second Yes.

534
00:31:08,200 --> 00:31:13,280
Speaker 10: It definitely looks like that, especially because the RBA is

535
00:31:13,440 --> 00:31:17,560
Speaker 10: forecast which I mentioned a little while ago, which point

536
00:31:17,720 --> 00:31:22,200
Speaker 10: to inflation returning to target not before twenty twenty eight.

537
00:31:22,600 --> 00:31:27,200
Speaker 10: That is based on expectation that the cash rate would

538
00:31:27,240 --> 00:31:30,400
Speaker 10: go up to four point six percent, which is one

539
00:31:30,440 --> 00:31:35,040
Speaker 10: more interest rate hike, and their forecasts actually show four

540
00:31:35,040 --> 00:31:37,480
Speaker 10: point seven percent, which means there is a chance of

541
00:31:38,040 --> 00:31:42,760
Speaker 10: another one after this. So if they are not doing that,

542
00:31:42,840 --> 00:31:47,120
Speaker 10: then probably they may not reach there or meet their

543
00:31:47,120 --> 00:31:53,360
Speaker 10: inflation forecasts. And right now, one thing, the biggest thing

544
00:31:53,400 --> 00:31:56,520
Speaker 10: that they are really worried about is inflation, and against

545
00:31:56,520 --> 00:32:00,400
Speaker 10: the backdrop of the Iran war, they don't want a

546
00:32:00,440 --> 00:32:03,480
Speaker 10: situation where inflation gets out of hand.

547
00:32:04,040 --> 00:32:06,440
Speaker 4: What is this doing to the growth story? That the

548
00:32:06,560 --> 00:32:10,000
Speaker 4: risk that interest rates in Australia will be rising. Are

549
00:32:10,040 --> 00:32:15,400
Speaker 4: there concerns now that growth will be compromised as a result, Doug.

550
00:32:15,560 --> 00:32:19,640
Speaker 10: When we finished twenty twenty five, Australia's economy was on

551
00:32:19,680 --> 00:32:23,600
Speaker 10: a strong footing. The start of twenty twenty six also

552
00:32:23,760 --> 00:32:27,200
Speaker 10: looked pretty good and that was one of the reasons

553
00:32:27,200 --> 00:32:33,120
Speaker 10: that we had strong economy economic demand which was flaring

554
00:32:33,240 --> 00:32:36,920
Speaker 10: inflation as well, So the starting point for the economy

555
00:32:37,320 --> 00:32:43,400
Speaker 10: was good. However, there are increasing reports now of subdued

556
00:32:43,640 --> 00:32:49,120
Speaker 10: consumer sentiment, which basically means consumers will be a little

557
00:32:49,120 --> 00:32:53,000
Speaker 10: bit more reticent to spend, so we may probably see

558
00:32:53,000 --> 00:32:56,200
Speaker 10: a slow down there. We are seeing signs of slowdown

559
00:32:56,240 --> 00:32:59,720
Speaker 10: in the housing market, which is one of the biggest

560
00:32:59,720 --> 00:33:03,479
Speaker 10: countrybuty to economic growth in Australia. One thing that is

561
00:33:03,520 --> 00:33:09,720
Speaker 10: going well is resources exports. So Australia is one of

562
00:33:09,760 --> 00:33:14,800
Speaker 10: the biggest exporters in the world of LNG liquefied natural gas.

563
00:33:15,160 --> 00:33:18,600
Speaker 10: It's also the top exporter of cole and arnore and

564
00:33:18,640 --> 00:33:24,440
Speaker 10: we've seen commodity prices skyrocket in the aftermath of the

565
00:33:24,520 --> 00:33:29,760
Speaker 10: war in Iran and that is benefiting Australia. So the

566
00:33:29,840 --> 00:33:32,640
Speaker 10: trade side of things, the external demand side of things

567
00:33:32,720 --> 00:33:36,320
Speaker 10: remain good. The domestic side of things are starting to

568
00:33:36,360 --> 00:33:37,480
Speaker 10: look a little bit shaky.

569
00:33:37,680 --> 00:33:40,000
Speaker 4: Swati will leave it there. Thank you so very much

570
00:33:40,080 --> 00:33:42,760
Speaker 4: for helping us understand what's happening with the economy in

571
00:33:42,760 --> 00:33:46,240
Speaker 4: Australia as we look ahead to that CPI data in

572
00:33:46,280 --> 00:33:50,680
Speaker 4: the coming week. Bloomberg Swati Pondi from our bureau in Sydney.

573
00:33:51,040 --> 00:33:54,320
Speaker 4: We go to Shanghai next where the twenty second annual

574
00:33:54,400 --> 00:33:57,720
Speaker 4: JP Morgan Global China Summit happened in the last week,

575
00:33:58,080 --> 00:33:59,920
Speaker 4: and it was there that we had the opportunity to

576
00:34:00,080 --> 00:34:03,560
Speaker 4: catch up with JP Morgan chairman and CEO Jamie Diamond.

577
00:34:03,600 --> 00:34:06,320
Speaker 4: Diamond spoke with Bloomberg's hustling to Aman.

578
00:34:06,200 --> 00:34:09,040
Speaker 11: It's not just about markets, it's about AI, It's about tech.

579
00:34:09,080 --> 00:34:11,120
Speaker 11: I mean, you know, JP Morgan has come out to

580
00:34:11,120 --> 00:34:13,680
Speaker 11: say it is actually a tech company that just happens

581
00:34:13,719 --> 00:34:16,080
Speaker 11: to be a bank. You have a huge tech budget.

582
00:34:16,120 --> 00:34:18,920
Speaker 11: I think nine billion dollars three billion for twenty billion,

583
00:34:18,960 --> 00:34:21,400
Speaker 11: and then I think three billion for cybersecurity. Talk to

584
00:34:21,480 --> 00:34:24,880
Speaker 11: us about how you're mobilizing the capital. Where are your

585
00:34:24,880 --> 00:34:26,839
Speaker 11: areas of Priorah.

586
00:34:26,040 --> 00:34:28,239
Speaker 12: So we don't actually deploy capital by saying we'll put

587
00:34:28,280 --> 00:34:31,280
Speaker 12: capital there we and everywhere we do in every business

588
00:34:31,280 --> 00:34:33,920
Speaker 12: we grow in China like here, if you look at

589
00:34:33,920 --> 00:34:36,960
Speaker 12: just China, we've gone from banking ten companies to banking

590
00:34:37,160 --> 00:34:39,200
Speaker 12: I think it's two or three hundred. We've gone from

591
00:34:39,239 --> 00:34:43,000
Speaker 12: banking thirty multinationals coming here to banking six hundred multinationals

592
00:34:43,080 --> 00:34:45,799
Speaker 12: coming here. As we serve them. It deploys capital. So

593
00:34:45,920 --> 00:34:49,120
Speaker 12: deployment of capital, deployment loans are outcome of building the business.

594
00:34:49,120 --> 00:34:51,600
Speaker 12: That's true for every country. It's true we open branches

595
00:34:51,640 --> 00:34:53,920
Speaker 12: in the United States, it starts to demand capital as

596
00:34:53,920 --> 00:34:56,080
Speaker 12: people will give us deposits, we start to make loans,

597
00:34:56,280 --> 00:34:58,360
Speaker 12: and so we are pretty company. We can deploy capital

598
00:34:58,440 --> 00:35:02,160
Speaker 12: intelligently serving clim We don't deploy capitale and investor saying

599
00:35:02,160 --> 00:35:04,120
Speaker 12: oh this is the best place to put it. It's

600
00:35:04,280 --> 00:35:06,080
Speaker 12: kind of an outcome of how we kind of grow

601
00:35:06,080 --> 00:35:07,480
Speaker 12: with the business and always.

602
00:35:07,239 --> 00:35:10,439
Speaker 11: Give us AI though I mean how we invested absolutely AI.

603
00:35:10,520 --> 00:35:13,080
Speaker 12: If you any business meaning we have and we've been

604
00:35:13,080 --> 00:35:15,880
Speaker 12: doing it for thirteen years, and every business meaning you have,

605
00:35:15,920 --> 00:35:17,840
Speaker 12: we talk about how you can use technology do a

606
00:35:17,880 --> 00:35:20,440
Speaker 12: better job for your clients. What are the projects you have?

607
00:35:20,680 --> 00:35:25,719
Speaker 12: So we're using AI for risk, fraud, marketing, design, document management,

608
00:35:25,880 --> 00:35:28,600
Speaker 12: who you should call in the morning, salesforce type things,

609
00:35:28,960 --> 00:35:33,319
Speaker 12: branch location, hedging, And it's the type of iceberg. You know,

610
00:35:33,360 --> 00:35:36,920
Speaker 12: it's moving very very quick. Coding, it's moving very quickly.

611
00:35:36,960 --> 00:35:38,440
Speaker 12: So we want to just stay up there and use

612
00:35:38,480 --> 00:35:41,480
Speaker 12: AI to serve our clients. And we're going to do that.

613
00:35:41,680 --> 00:35:43,440
Speaker 12: How can I do a better job for our clients

614
00:35:43,719 --> 00:35:46,440
Speaker 12: using a technology called AI, just like we did it

615
00:35:46,440 --> 00:35:50,040
Speaker 12: with a technology called digital, a technology called cloud, and

616
00:35:50,120 --> 00:35:53,720
Speaker 12: way back at technology called mainframe, Like, it's no different.

617
00:35:54,040 --> 00:35:55,319
Speaker 12: We got to do a better job for a client

618
00:35:55,320 --> 00:35:56,360
Speaker 12: because that's how we compete.

619
00:35:56,640 --> 00:35:59,000
Speaker 11: So how will Jimmy mulgan look like in three to

620
00:35:59,040 --> 00:36:02,400
Speaker 11: five years on the lack of developments in aill what

621
00:36:02,600 --> 00:36:04,440
Speaker 11: how will Jimmie Walgin look like? I mean, how will

622
00:36:04,520 --> 00:36:05,120
Speaker 11: are you business?

623
00:36:05,320 --> 00:36:08,160
Speaker 12: I hope with thriving. But what's not going to change?

624
00:36:08,280 --> 00:36:11,280
Speaker 12: People have to hold money, movement and invest money, raise money.

625
00:36:11,560 --> 00:36:14,239
Speaker 12: I think how it happens will probably change. You know,

626
00:36:14,280 --> 00:36:16,600
Speaker 12: we use blockchain, there may be more blockshain being used

627
00:36:16,600 --> 00:36:18,719
Speaker 12: to do that. There may be more people in AI

628
00:36:18,840 --> 00:36:21,600
Speaker 12: jobs and less people in certain jobs, you know, so

629
00:36:21,680 --> 00:36:24,040
Speaker 12: it'll all morph. But that's our job to serve the client.

630
00:36:24,239 --> 00:36:25,920
Speaker 12: And of course, you know, I always point out that

631
00:36:26,040 --> 00:36:28,040
Speaker 12: we in the old days, we had you know, the

632
00:36:28,040 --> 00:36:30,279
Speaker 12: big banks who are big competitors, and the investment banks,

633
00:36:30,280 --> 00:36:32,759
Speaker 12: and that was global, different banks in every country. Now

634
00:36:32,800 --> 00:36:35,680
Speaker 12: it's fintech in every country, and they're good. You know

635
00:36:35,920 --> 00:36:38,280
Speaker 12: a lot of these people in Revolute, Stripe and Citadel,

636
00:36:38,440 --> 00:36:40,200
Speaker 12: they're quite good. So we have to compete with all

637
00:36:40,480 --> 00:36:43,160
Speaker 12: and a lot of that competition will be technology and AI.

638
00:36:43,680 --> 00:36:46,080
Speaker 12: So we are investing that money to be competitive, to

639
00:36:46,239 --> 00:36:48,120
Speaker 12: do a better job for our clients. And if we're

640
00:36:48,120 --> 00:36:49,480
Speaker 12: not fast and nimble, we'll lose.

641
00:36:49,920 --> 00:36:51,400
Speaker 11: And you're false and nimble, right.

642
00:36:51,880 --> 00:36:54,040
Speaker 12: Sometimes we're faster and nimbal Sometimes I feel like we're

643
00:36:54,239 --> 00:36:56,680
Speaker 12: I feel like we're a dinosaur and elephant riding a bronco.

644
00:36:57,120 --> 00:37:01,239
Speaker 11: It is about menpower in the end, with the Licena

645
00:37:01,560 --> 00:37:05,120
Speaker 11: women power, it's about the workforce. We had from Santa

646
00:37:05,200 --> 00:37:07,759
Speaker 11: Chata chatting about eight thousand jobs of a spread of

647
00:37:08,480 --> 00:37:11,200
Speaker 11: three years. We also had metas saying it's shutting the

648
00:37:11,200 --> 00:37:13,040
Speaker 11: same number of people. I mean, how are you looking

649
00:37:13,120 --> 00:37:15,839
Speaker 11: at menpower? Women power? How are you looking at the

650
00:37:15,960 --> 00:37:19,520
Speaker 11: workforce on the back of you know advances being made

651
00:37:19,560 --> 00:37:21,160
Speaker 11: in the I think the most.

652
00:37:21,040 --> 00:37:22,520
Speaker 12: Important thing is we do a good job for our

653
00:37:22,520 --> 00:37:25,960
Speaker 12: clients and use AI. Will it change the structured jobs?

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00:37:26,120 --> 00:37:26,359
Speaker 1: Yes?

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00:37:27,080 --> 00:37:27,319
Speaker 2: Will.

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00:37:27,760 --> 00:37:30,160
Speaker 12: I think there's been very few announcements are AI related.

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00:37:30,200 --> 00:37:32,160
Speaker 12: I think a lot of coming to too much bureaucracy,

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00:37:32,200 --> 00:37:34,520
Speaker 12: and they may use AI to cover up the fact

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00:37:34,560 --> 00:37:36,280
Speaker 12: that they should never hire those in the first place.

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00:37:36,440 --> 00:37:39,080
Speaker 12: But AI is going to change jobs, I don't know.

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00:37:39,239 --> 00:37:41,560
Speaker 12: I think we'll overdo some of our jobs down the road.

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00:37:41,800 --> 00:37:43,919
Speaker 12: I don't think you'll be all different types of jobs

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00:37:43,920 --> 00:37:46,000
Speaker 12: and you have to deploy it at a level like

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00:37:47,080 --> 00:37:49,120
Speaker 12: I think we'll be hiring more AI people and probably

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00:37:49,160 --> 00:37:53,120
Speaker 12: less bankers in certain categories, and it'll make them more productive.

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00:37:53,239 --> 00:37:57,040
Speaker 4: That was Jamie Diamond, JP Morgan, chairman and CEO, speaking

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00:37:57,040 --> 00:38:00,319
Speaker 4: with Bloomberg's Hustling to Ahman. I'm Doug Prisner. You can

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00:38:00,360 --> 00:38:04,000
Speaker 4: catch us weekdays for the Daybreak Asia podcast. It's available

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Speaker 4: wherever you get your podcast. Nathan.

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Speaker 2: Thanks Doug, and that does it for this edition of

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Speaker 2: Bloomberg Daybreak Weekend. Join us again Tuesday morning at five

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00:38:13,200 --> 00:38:16,120
Speaker 2: am Wall Street Time for the latest on markets overseas

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Speaker 2: and the news you need to start your day. I'm

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00:38:18,360 --> 00:38:21,440
Speaker 2: Nathan Hager. Stay with US. Top stories and global business

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Speaker 2: headlines are coming up right now