WEBVTT - Daybreak Weekend: Job Report, Earnings Season, DeepSeek 0:00:03.320 --> 0:00:05.560 This is Bloomberg day Break Weekend, our global look at 0:00:05.600 --> 0:00:07.640 the top stories in the coming week from our day 0:00:07.640 --> 0:00:10.360 Break anchors all around the world. Straight ahead on the program, 0:00:10.360 --> 0:00:12.840 and look ahead to the January jobs report here in 0:00:12.920 --> 0:00:16.200 the US how that may impact FED policy moving forward. 0:00:16.560 --> 0:00:19.360 I'm Caroline Hebcker here in London, where we're looking ahead 0:00:19.360 --> 0:00:21.759 to the Bank of England great decision and what the 0:00:21.920 --> 0:00:25.000 Chancellor's plans for growth might mean for them. 0:00:25.480 --> 0:00:28.440 I'm Doug Chrisner looking at what lies ahead for China's 0:00:28.520 --> 0:00:29.120 deep seek. 0:00:30.400 --> 0:00:34.400 That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 0:00:34.440 --> 0:00:38.160 eleven three year on New York, Bloomberg ninety nine to one, Washington, DC, 0:00:38.640 --> 0:00:42.920 Bloomberg ninety two to nine, Boston, DAB Digital Radio, London, 0:00:43.320 --> 0:00:46.479 Sirius XM one twenty one, and around the world on 0:00:46.600 --> 0:00:49.720 Bloomberg Radio, dot Com and the Bloomberg Business App. 0:00:54.760 --> 0:00:56.720 Good day to you. We begin today's program with the 0:00:56.880 --> 0:01:00.320 January jobs report. We get non farm pay year old 0:01:00.360 --> 0:01:03.200 numbers this Friday, eight thirty am Wall Street Time, and 0:01:03.280 --> 0:01:07.560 for more. We're joined by Michael McKee, Bloomberg International Economics 0:01:07.560 --> 0:01:11.720 and Policy correspondent. Well Michael twenty twenty four ended with 0:01:11.800 --> 0:01:15.280 a blowout December jobs report two hundred and fifty six 0:01:15.319 --> 0:01:19.000 thousand added, ending the year four point one percent unemployment 0:01:19.000 --> 0:01:23.520 of five decade low. Did the good times continue to January? 0:01:24.400 --> 0:01:27.640 Well, that's the question, and we aren't exactly sure. There 0:01:27.640 --> 0:01:29.600 seems to be a division on Wall Street about how 0:01:29.600 --> 0:01:32.399 this is all going to work out. Reversion to the 0:01:32.440 --> 0:01:35.880 mean is a sort of a well known phrase in economics, 0:01:35.880 --> 0:01:39.800 and that's what economists surveyed by Bloomberg see for the 0:01:40.200 --> 0:01:45.400 private payrolls number itself two hundred twenty three thousand last month, 0:01:45.560 --> 0:01:48.120 but for January, they're only at the moment thinking about 0:01:48.120 --> 0:01:53.000 one hundred and thirty thousand, which would fit the pattern 0:01:53.080 --> 0:01:58.720 we saw before that big December number. So that would 0:01:58.760 --> 0:02:01.480 suggest that the economy or the labor market at least, 0:02:01.520 --> 0:02:04.559 is slowing down some. But that four point one percent 0:02:04.640 --> 0:02:09.240 unemployment rate isn't expected to change. So what we have 0:02:09.480 --> 0:02:12.240 seen sort of in all the ancillary data like jobless 0:02:12.240 --> 0:02:15.639 claims and things, are that people aren't losing their jobs, 0:02:15.639 --> 0:02:18.600 but they're not getting hired. It's taking longer to find 0:02:18.639 --> 0:02:22.760 new jobs. Business seems to be putting new employment on hold, 0:02:23.320 --> 0:02:26.280 but they're not getting rid of people yet, And the idea, 0:02:26.360 --> 0:02:29.120 I guess, is that this report will ratify that. 0:02:29.880 --> 0:02:33.120 Now seasonal holiday jobs, we always see it to a 0:02:33.200 --> 0:02:36.359 decrease in January. Correct, Well, that's the way it used 0:02:36.360 --> 0:02:36.560 to be. 0:02:36.960 --> 0:02:39.760 It's a little bit less that way now, and it's 0:02:39.800 --> 0:02:42.040 a little bit harder to figure out exactly what the 0:02:42.080 --> 0:02:44.720 seasonal impact is going to be. We know that the 0:02:45.360 --> 0:02:48.360 seasonal employees were hired later this year. They showed up 0:02:48.400 --> 0:02:51.799 in December instead of November. Do they stay on a 0:02:51.880 --> 0:02:56.520 little bit longer? Do they slowly go away? I think 0:02:56.760 --> 0:02:58.640 one of the reasons we're looking at the one hundred 0:02:58.680 --> 0:03:03.680 and thirty thousand is that economists are anticipating those people 0:03:04.160 --> 0:03:07.840 will have left the jobs. But it's really hard to tell. 0:03:08.040 --> 0:03:10.200 The other impact is going to be from the Los 0:03:10.200 --> 0:03:14.640 Angeles fires because they took place during the survey week 0:03:14.800 --> 0:03:18.760 for the January payrolls, and we don't know exactly how 0:03:18.800 --> 0:03:21.160 many businesses were destroyed, but we know a lot from 0:03:21.200 --> 0:03:24.040 looking at the video, and so there are probably going 0:03:24.080 --> 0:03:28.079 to be a number of job losses. Some analysts have 0:03:28.120 --> 0:03:30.760 said as many as twenty thousand that would show up 0:03:30.840 --> 0:03:31.840 in the report. 0:03:32.120 --> 0:03:36.160 And for the economy, we saw Hollywood suddenly stopped some 0:03:36.240 --> 0:03:40.040 production of TV shows, movies, so it really had an impact, 0:03:40.360 --> 0:03:42.600 which will lessen over time. Of course, I think things 0:03:43.000 --> 0:03:46.920 are now weeks later getting back to normal. Well, let's 0:03:46.920 --> 0:03:50.160 talk about the Federal Reserve. The labor market pretty solid. 0:03:50.200 --> 0:03:52.160 As you said, we were looking at no change at 0:03:52.160 --> 0:03:56.040 a four point one unemployment rate. Economic growth we just 0:03:56.080 --> 0:03:59.880 saw this past week GDP growth fourth quarter a little 0:03:59.880 --> 0:04:01.040 stronger than expected. 0:04:01.240 --> 0:04:05.720 But inflation, that's always the kind of the butt out there. 0:04:05.760 --> 0:04:09.240 You don't even have to say anything beyond that inflation 0:04:09.680 --> 0:04:12.800 has sort of stalled out. The PCE numbers that the 0:04:12.880 --> 0:04:17.039 Fed released on Friday basically show that in December inflation 0:04:17.279 --> 0:04:22.400 was unchanged on a year year basis, and that's not 0:04:22.440 --> 0:04:26.919 what they want to see. What it does suggest that 0:04:27.000 --> 0:04:29.359 as long as that continues, the Fed's going to remain 0:04:29.400 --> 0:04:32.480 on hold. There is the reason that Jay Powell cited 0:04:32.560 --> 0:04:36.880 for not moving at last week's meeting. So I think 0:04:36.920 --> 0:04:40.400 at this point we're watching to see any indications of 0:04:40.440 --> 0:04:44.039 whether inflation comes down, and all of a sudden we'll 0:04:44.040 --> 0:04:46.920 be looking at things like home prices and rents even 0:04:47.040 --> 0:04:51.039 more closely, because that's really where the stickiness is. The 0:04:51.080 --> 0:04:54.360 Fed needs that to happen. But also we're looking at 0:04:54.360 --> 0:04:57.760 our average early earnings in the employment report because the 0:04:57.760 --> 0:05:01.000 FED says right now the labor market is not inflationary, 0:05:01.120 --> 0:05:03.720 so they don't want to see any changes there either. 0:05:04.200 --> 0:05:06.320 Well, let's talk about the rate. Two point eight percent? 0:05:06.360 --> 0:05:08.159 Is this almost a new normal? 0:05:08.600 --> 0:05:08.720 This? 0:05:09.080 --> 0:05:11.120 It really hasn't changed much in months. 0:05:10.880 --> 0:05:14.800 Right, That's the key question is can the FED get 0:05:14.839 --> 0:05:16.280 it down to the two percent target? 0:05:17.080 --> 0:05:18.160 Or is the. 0:05:18.080 --> 0:05:22.640 Economy growing at a faster pace than it had been. 0:05:22.920 --> 0:05:27.080 Is potential growth higher, which would mean inflation would be higher. 0:05:26.800 --> 0:05:28.560 It could support a two point Does. 0:05:28.440 --> 0:05:31.400 That mean that we need higher interest rates on a 0:05:31.440 --> 0:05:34.560 regular basis? Not necessarily raise them from here, but don't 0:05:34.600 --> 0:05:37.880 cut them. That's the debate within the FED, and that's 0:05:38.000 --> 0:05:40.640 the thing that they have to figure out between now 0:05:40.640 --> 0:05:44.080 and their next meeting on March nineteenth. And that should 0:05:44.120 --> 0:05:48.040 be relatively easy except for Donald Trump and his tariffs 0:05:48.120 --> 0:05:51.120 and everything else that's going to happen between now and then. 0:05:51.400 --> 0:05:53.919 Well, speaking of those tariffs, how do you think the 0:05:53.920 --> 0:05:56.560 FED has prepared for the threat of those twenty five 0:05:56.600 --> 0:06:00.360 percent tariffs? I mean, Canada, Mexico buy more American products 0:06:00.400 --> 0:06:03.280 and anybody else, So we know this is you know, 0:06:03.800 --> 0:06:06.279 it could be challenging. 0:06:07.480 --> 0:06:09.920 Indeed, well I know a lot of FED officials around 0:06:09.960 --> 0:06:13.040 the country at the various FED banks and then down 0:06:13.040 --> 0:06:16.640 in Washington at the Board of Governors have tasked their 0:06:16.680 --> 0:06:22.120 researchers to come up with what if scenarios. The problem 0:06:22.279 --> 0:06:25.680 is is without a lot of detail, it's been hard 0:06:25.680 --> 0:06:29.080 for them to come up with what if scenarios, and 0:06:29.560 --> 0:06:32.280 so now if they get some details, it takes them 0:06:32.600 --> 0:06:35.839 time to put to work through it all because there's 0:06:35.880 --> 0:06:37.839 a lot that goes into it. It's not just what 0:06:37.920 --> 0:06:40.720 the tariff level is, it's how long it's imposed for 0:06:41.720 --> 0:06:48.160 and how it's imposed over time or immediately, and then 0:06:48.200 --> 0:06:51.320 what are the tariff countries do? Do they put teriffs 0:06:51.360 --> 0:06:53.599 back on the US. So all of that has to 0:06:53.600 --> 0:06:55.800 be accounted for. So it'll be a little while before 0:06:55.839 --> 0:06:58.760 the PET has a clear idea of what it would mean. 0:06:58.920 --> 0:07:01.799 The January jobs are out This Friday morning, eight thirty 0:07:01.839 --> 0:07:04.720 am Wall Street Time our thanks to Michael McKee, Bloomberg 0:07:04.800 --> 0:07:08.680 International Economics and Policy correspondent, we turned out to earnings 0:07:08.720 --> 0:07:11.200 with two more members of the tech sector, so called 0:07:11.200 --> 0:07:15.280 Magnificent seven, posting fourth quarter results this coming week Alphabet 0:07:15.280 --> 0:07:18.360 on Tuesday and on Thursday, Amazon, and we want to 0:07:18.400 --> 0:07:21.200 focus on Amazon to see about sales over the holidays 0:07:21.520 --> 0:07:24.800 and it's cash cow cloud computing, an AI services unit, 0:07:25.080 --> 0:07:28.480 and any impact at all from China's deep seek chat 0:07:28.480 --> 0:07:30.840 pot Now for more where all of that were joined 0:07:30.840 --> 0:07:36.520 by anirag Rana, Bloomberg Intelligence technology analyst anarag We'll start 0:07:36.560 --> 0:07:39.120 with the earnings. What are you expecting to see in 0:07:39.200 --> 0:07:41.280 Thursday's earnings report from Amazon? 0:07:42.920 --> 0:07:45.440 You know, my colleague Punum and I we re published 0:07:45.440 --> 0:07:48.840 a preview for Amazon, and we think that the four 0:07:48.880 --> 0:07:50.720 Q sales could be at the high end of their 0:07:50.720 --> 0:07:55.280 guidance of seven to eleven percent, driven by AWS advertising 0:07:55.360 --> 0:07:58.160 retail sales over the holiday quarter, which were very strong. 0:07:58.480 --> 0:08:02.080 Frankly, so those are the areas. We also think advertising 0:08:02.120 --> 0:08:05.320 revenue could be in the high teens given the addition 0:08:05.400 --> 0:08:06.760 of Prime Video ads. 0:08:07.720 --> 0:08:11.800 So sales good, the ons, signature site ad sales. What 0:08:11.920 --> 0:08:15.960 about its cash cow Amazon web services and what is 0:08:16.000 --> 0:08:19.120 Amazon investing now in AI and infrastructure? 0:08:19.240 --> 0:08:22.520 And that's you know, you're right, that's probably the most 0:08:22.560 --> 0:08:26.400 important question right now. We're looking at Amazon, you know, 0:08:26.480 --> 0:08:30.880 sales growth of somewhere around nineteen percent excluding ethics impact. 0:08:32.000 --> 0:08:34.960 That's slight better than I would say what would have 0:08:35.240 --> 0:08:38.120 anticipated just a year ago, and a lot of that 0:08:38.240 --> 0:08:43.240 is driven by the improvement in workload consumption or people 0:08:43.320 --> 0:08:48.559 running more things on the platform. AI will contribute as well, 0:08:48.760 --> 0:08:53.880 although they don't disclose contribution from AI sales similar to Microsoft, 0:08:54.240 --> 0:08:56.760 but that's because they do not have you know, you 0:08:56.800 --> 0:09:01.640 could say the workloads coming from conserhum apps like chat, GPT. 0:09:01.960 --> 0:09:06.000 Most of their businesses, enterprise and enterprise and corporate clients 0:09:06.040 --> 0:09:10.959 are just starting the implementation of AI related products, so 0:09:11.000 --> 0:09:13.280 it's not as you know, you could say, that is 0:09:13.280 --> 0:09:16.080 not a mature market as some of the consumer apps 0:09:16.080 --> 0:09:16.439 have been. 0:09:16.800 --> 0:09:18.719 So a lot of room to grow for Amazon in. 0:09:18.720 --> 0:09:21.680 AI, absolutely, and a lot of room for everybody to grow, 0:09:21.720 --> 0:09:25.079 including you know, Microsoft and Google. In this case, what 0:09:25.360 --> 0:09:29.400 Amazon has done is they have a strong relationship. They've 0:09:29.440 --> 0:09:31.760 invested in a company called Anthropic, which is one of 0:09:31.800 --> 0:09:35.880 their you could say, preferred large language model providers. They 0:09:35.880 --> 0:09:38.840 also have their own model. They also let people use 0:09:39.240 --> 0:09:43.400 models from Mecca called Lama, So it's it's up to 0:09:43.440 --> 0:09:45.840 the client what kind of model they want to use. 0:09:47.040 --> 0:09:49.920 Amazon Web Services is just going to provide the platform 0:09:50.320 --> 0:09:53.120 and and you know, the basically the infrastructure to run 0:09:53.160 --> 0:09:54.960 those products. 0:09:55.679 --> 0:09:58.440 Now, Wall Street got a real wake up call last 0:09:58.520 --> 0:10:01.160 week with that low cost chat from the Chinese startup 0:10:01.280 --> 0:10:04.880 Deep Seek. Boy did it rattle the markets and rattle 0:10:04.920 --> 0:10:11.120 a lot of AI companies. How did Amazon react well in. 0:10:10.960 --> 0:10:13.680 The long run? So, first and foremost, we are not 0:10:13.800 --> 0:10:19.360 even sure whether we should see that as in a way, 0:10:19.360 --> 0:10:22.800 there are two scenarios whether we can continue to see 0:10:23.080 --> 0:10:26.640 large amount of improvements in these models without the use 0:10:26.679 --> 0:10:29.920 of expensive chips. And that's where the argument is right now. 0:10:30.280 --> 0:10:34.480 If we were to take that aside, if in reality 0:10:34.640 --> 0:10:38.240 we can come up with models at a much cheaper cost, 0:10:38.559 --> 0:10:41.400 that's really good for somebody like an Amazon because they 0:10:41.400 --> 0:10:44.720 don't have to spend that much in capital expenditures and 0:10:44.800 --> 0:10:47.760 the growth curve or the adoption curve off AI goes up. 0:10:48.040 --> 0:10:51.000 These guys benefit from that because they're providing the infrastructure. 0:10:51.240 --> 0:10:53.360 So I think in the long run it's good for 0:10:53.400 --> 0:10:56.640 the cloud providers like Amazon. But again I think we 0:10:56.679 --> 0:10:59.280 still have to see whether that really is the case 0:10:59.280 --> 0:11:01.199 that you can build models that. 0:11:01.280 --> 0:11:03.600 Cheaply consumer spending. I want to go back to that 0:11:03.640 --> 0:11:05.640 in the in the final quarter of last year up 0:11:06.040 --> 0:11:08.560 better than expected about four percent. A lot of that 0:11:08.960 --> 0:11:13.040 from Amazon dot Com. Obviously, it's like most consumers can't 0:11:13.040 --> 0:11:15.320 live without it. But something I want to bring up 0:11:15.480 --> 0:11:19.079 ups in its earnings just said that they're going to 0:11:19.160 --> 0:11:23.040 slash deliveries they do for Amazon in half by next year. 0:11:23.520 --> 0:11:26.199 That's because of the home deliveries just too costly. FedEx 0:11:26.280 --> 0:11:29.000 made the same decision five years ago. FedEx doesn't even 0:11:29.040 --> 0:11:31.560 deliver for Amazon. What do you think it could mean 0:11:31.920 --> 0:11:33.160 for their e commerce unit? 0:11:33.360 --> 0:11:35.880 Yeah, I think you know, one of the most important 0:11:35.920 --> 0:11:38.480 part of their e commerce business is really their logistics 0:11:38.520 --> 0:11:41.680 at this point. Frankly speaking, you know, when you think 0:11:41.720 --> 0:11:45.000 about it, what they did in COVID, they've really invested 0:11:45.080 --> 0:11:48.280 so much to improve their logistics network. So frankly speaking, 0:11:48.360 --> 0:11:51.080 I think, you know, you could argue that these guys 0:11:51.240 --> 0:11:53.440 really don't need anybody else. Now that's not true. They 0:11:53.440 --> 0:11:56.800 will outsource when they need extra capacity, but you know, 0:11:56.840 --> 0:11:59.679 their logistics are pretty impressive at this point, and in fact, 0:12:00.080 --> 0:12:03.280 this whole promise of delivering products within a few hours 0:12:03.720 --> 0:12:07.520 is really changing the way people buy. What used to happen, 0:12:07.640 --> 0:12:10.000 Tom was I used to go to Amazon because it 0:12:10.080 --> 0:12:13.120 was the low cost provider. That's no longer the case. 0:12:13.240 --> 0:12:16.880 You can find goods outside and other websites that are cheaper, 0:12:17.240 --> 0:12:20.840 but the reason you go to Amazon dot Com is 0:12:20.920 --> 0:12:23.640 because as a Prime member, you can get those products 0:12:23.640 --> 0:12:27.160 pretty quickly. It's happened to me several times that you 0:12:27.240 --> 0:12:29.720 need something right away and they will deliver it in 0:12:29.760 --> 0:12:33.080 four to five hours. So that level of service is 0:12:33.120 --> 0:12:36.480 what I think is the biggest differentiator for Amazon, and 0:12:36.520 --> 0:12:37.200 it's not price. 0:12:37.400 --> 0:12:40.840 Amazon Q four earnings out this coming Thursday are thanks 0:12:40.880 --> 0:12:44.800 to anirog Rana, Bloomberg Intelligence technology analyst and coming up 0:12:44.840 --> 0:12:47.240 on Bloomberg day Break weekend, a rate decision this week 0:12:47.280 --> 0:12:50.000 from the Bank of England. I'm Tom Busby and this 0:12:50.240 --> 0:13:03.079 is Bloomberger. This is Bloomberg Daybreak Weekend, our global look 0:13:03.080 --> 0:13:05.600 ahead at the top stories for investors in the coming week. 0:13:05.880 --> 0:13:08.520 I'm Tom Busby in New York. Up later in our 0:13:08.559 --> 0:13:12.320 program Deep Seek Move Markets. This past week we see 0:13:12.320 --> 0:13:16.280 what's next for China's Ai startup. But first, policymakers at 0:13:16.280 --> 0:13:18.400 the Bank of England are preparing to make their first 0:13:18.600 --> 0:13:22.000 interest rate decision of the year. A slumping currency and 0:13:22.120 --> 0:13:24.480 stagnant growth will be on the minds of officials as 0:13:24.520 --> 0:13:26.960 they make their choice. Now for more, let's go to 0:13:27.000 --> 0:13:30.600 London and bring in Bloomberg Daybreak Europe Banker Caroline. 0:13:30.040 --> 0:13:34.160 Hepgar Tom week Sterling is just the latest factor that 0:13:34.320 --> 0:13:36.840 Bank of England officials will have to think about when 0:13:36.880 --> 0:13:40.559 plotting the path for interest rates in twenty twenty five. 0:13:40.920 --> 0:13:44.760 Investors are still expecting a quarter point cut, one of 0:13:45.000 --> 0:13:48.760 just two fully priced in for this year, but stagnant 0:13:48.800 --> 0:13:52.120 economic growth, alongside the threat of a global trade war, 0:13:52.480 --> 0:13:56.280 has loomed large over the Central Bank's forecasts and could 0:13:56.360 --> 0:14:01.680 dampen the Bank of England's inflation projections in years this 0:14:02.000 --> 0:14:05.560 as moves in guilt yields and rate expectations since the 0:14:05.640 --> 0:14:10.360 budget in October have tightened fiscal conditions, a real headwind 0:14:10.559 --> 0:14:15.560 for the British economy. Enter Chancellor Rachel Reeves she's on 0:14:15.600 --> 0:14:20.280 a mission to revitalize the nation's economic health by going 0:14:20.360 --> 0:14:24.400 further and faster, she puts it for growth and potentially 0:14:24.520 --> 0:14:29.040 lifting some of the pressure on Andrew Bailey's Monetary Policy Committee. 0:14:29.280 --> 0:14:32.280 She has been speaking to Bloomberg about her proposals. 0:14:32.520 --> 0:14:35.240 Well, look at the reaction from business to the speech 0:14:35.280 --> 0:14:38.720 I gave two thirds of businesses and the instant reaction 0:14:39.040 --> 0:14:42.119 has said they now feel more confident about the government's 0:14:42.480 --> 0:14:46.200 growth plans. I make no apologies for putting our country 0:14:46.200 --> 0:14:49.640 bag on the right's path, and because of the planning 0:14:49.680 --> 0:14:54.480 reforms that we're making alongside the big announcements yesterday, it 0:14:54.560 --> 0:14:57.240 means what we can crack on and get these projects 0:14:57.280 --> 0:15:00.440 delivered quicker because they won't get clogged up in courts 0:15:00.520 --> 0:15:03.600 because we're reforming the way that you build stuff in Britain. 0:15:05.080 --> 0:15:06.840 Do not feel, though, Chancellor, that you need to deliver 0:15:06.920 --> 0:15:09.800 something that will deliver now that will give an uptick 0:15:09.880 --> 0:15:12.360 to growth. Now we're looking at the labor market, data, 0:15:12.720 --> 0:15:16.600 messages from recruiters, the purchasing managers' surveys, all of those 0:15:17.000 --> 0:15:19.720 telling us quite negative things about the labor market, saying 0:15:19.720 --> 0:15:22.080 that businesses are shedding jobs at the rate we haven't 0:15:22.080 --> 0:15:23.600 seen since the financial crisis. 0:15:24.880 --> 0:15:25.480 Well, if you. 0:15:25.480 --> 0:15:29.120 Look at the IMF forecast for the UK, they've revised 0:15:29.200 --> 0:15:32.800 up the UK's growth prospects for this year. The PwC 0:15:32.960 --> 0:15:35.720 survey released at the beginning of last week of global 0:15:35.760 --> 0:15:38.640 CEOs who see Britain as the second best place in 0:15:38.680 --> 0:15:41.520 the world to invest outside of the United States. The 0:15:41.560 --> 0:15:43.760 first time in twenty eight years have been at that 0:15:43.800 --> 0:15:47.800 position in the League table, and yesterday business is coming 0:15:47.800 --> 0:15:51.040 out and backing Labour's plans to grow the economy and 0:15:51.080 --> 0:15:53.400 making them feel more confident about the future. 0:15:53.520 --> 0:15:54.960 Can you give me a growth number by the end 0:15:55.000 --> 0:15:57.280 of the year, then, if you are more positive about 0:15:57.320 --> 0:15:59.160 what growth is going to deliver in the UK, what 0:15:59.200 --> 0:16:01.680 growth numbers we can expect. Do you have a number 0:16:01.720 --> 0:16:04.840 in mind, do you have a target for this year 0:16:05.200 --> 0:16:06.440 and can you share it with us. 0:16:06.880 --> 0:16:09.480 I'm not going to do growth forecasts. That's up to 0:16:10.160 --> 0:16:13.800 the Independent Office, the Budget Responsibility, the IMF and others 0:16:13.840 --> 0:16:17.680 to forecast the UK's growth prospects. But what I did 0:16:17.800 --> 0:16:20.760 was to set out some ambitious plans and to get 0:16:20.760 --> 0:16:23.840 our economy growing, to get spades in the ground, to 0:16:23.960 --> 0:16:28.040 deliver these infrastructure projects that in many cases have been 0:16:29.000 --> 0:16:33.040 available for years now but the previous government balked at. 0:16:33.240 --> 0:16:37.000 So whether it's the Oxcam Growth Corridor to create Europe's 0:16:37.120 --> 0:16:40.760 Silicon Valley here in the UK, or the third Runway 0:16:40.800 --> 0:16:44.960 at Heathrow, a new stadium at Old Trafford, the TransPennine routes, 0:16:45.080 --> 0:16:49.280 upgrade a new airport at Doncaster. All of these things 0:16:49.400 --> 0:16:53.320 are about a confidence in Britain, saying to investors, look 0:16:53.360 --> 0:16:56.280 again at Britain. This is a great place to invest, 0:16:56.320 --> 0:16:59.240 to start and grow a business, and this government has 0:16:59.280 --> 0:16:59.800 your back. 0:17:01.240 --> 0:17:03.760 When does the first spade go in the ground and 0:17:03.880 --> 0:17:09.040 any of those projects, Well, let's. 0:17:08.800 --> 0:17:11.480 Take Heathrow with our key throw to come forward with 0:17:11.560 --> 0:17:14.640 plans by this summer and we hope to be able 0:17:14.640 --> 0:17:17.960 to grant a development consent order in this parliament. So 0:17:18.080 --> 0:17:21.280 spades in the ground in this parliament. But other projects 0:17:21.320 --> 0:17:24.480 can get going sooner. We've committed to build one and 0:17:24.480 --> 0:17:27.880 a half million homes in this Parliament and we've made 0:17:27.880 --> 0:17:32.119 it easier to build, for example, around commuter railway stations, 0:17:32.400 --> 0:17:36.280 with the default answer for planning applications now being yes. 0:17:36.800 --> 0:17:40.240 So spades in the ground this parliament. One and a 0:17:40.280 --> 0:17:43.520 half million homes in this parliament, because we want to 0:17:43.560 --> 0:17:47.240 go further and faster to kickstart economic growth and to 0:17:47.320 --> 0:17:50.720 make our economy more competitive, to be a more attractive 0:17:50.760 --> 0:17:54.520 place for businesses to invest, and ultimately to make working 0:17:54.520 --> 0:17:55.440 people better off. 0:17:57.760 --> 0:18:00.720 Chancellor, we've heard a lot about growth over reseas and 0:18:00.720 --> 0:18:02.560 that do you think to be still some divisions amongst 0:18:02.600 --> 0:18:04.720 your team around what all of these will mean for 0:18:04.760 --> 0:18:07.600 the environment. Of course, businesses might be a little bit 0:18:07.640 --> 0:18:10.359 confused about what kind of reaction function we can expect 0:18:10.400 --> 0:18:13.400 you to have around green issues. Do you think that 0:18:13.680 --> 0:18:16.800 the green policies of this government, or the push towards 0:18:17.640 --> 0:18:20.159 electrification for example, all of these things are they a 0:18:20.200 --> 0:18:22.960 little harder to predict for business now than they were? 0:18:26.760 --> 0:18:29.439 Well, look at the record of this government. We've ended 0:18:29.480 --> 0:18:33.200 the moratorium on onshore wind and indeed have signed off 0:18:33.240 --> 0:18:37.480 planning applications in just six months for new onshore wind farms, 0:18:37.680 --> 0:18:41.600 has signed off planning applications for solar farms that the 0:18:41.640 --> 0:18:46.000 previous governments blocked. But we've invested alongside with BP and 0:18:46.160 --> 0:18:51.000 Equanal in carbon capture and storage in te Side and Merseyside, 0:18:51.359 --> 0:18:55.480 so we know that there are huge industrial and investment 0:18:55.520 --> 0:18:59.639 opportunities for the private sector in these jobs and industries 0:18:59.680 --> 0:19:03.720 of the and has unique strengths in this area because 0:19:03.720 --> 0:19:07.040 of our industrial heritage and because of our geography to 0:19:07.119 --> 0:19:08.840 reap the benefits of that investment. 0:19:10.800 --> 0:19:13.520 Okay, Chancellor, can I ask you just about the US 0:19:13.600 --> 0:19:16.800 Treasury Secretary Besant, who is now going to be your 0:19:16.800 --> 0:19:19.440 counterparty in the United States. I wonder what you plan 0:19:19.560 --> 0:19:21.720 to discuss with him, and do you have plans for 0:19:21.760 --> 0:19:22.720 a conversation soon. 0:19:23.160 --> 0:19:26.399 I'm really pleased that Scott Bessont was confirmed earlier this 0:19:26.440 --> 0:19:30.520 week as the next to the US Treasury's Secretary. I 0:19:30.680 --> 0:19:34.639 have written to him and I look forward to talking 0:19:34.680 --> 0:19:38.359 to him soon about how our two countries can work 0:19:38.400 --> 0:19:42.160 together and to grow our respective economies. And I look 0:19:42.200 --> 0:19:45.480 forward to having a close relationship with Scott Bessant and 0:19:45.560 --> 0:19:46.920 his team at the US Treasury. 0:19:47.600 --> 0:19:50.760 That was the Chancellor Rachel Reeves speaking to Bloomberg's Anna Edwards, 0:19:50.840 --> 0:19:54.520 Christy Gupta and Guy Johnson. So the government is going 0:19:54.600 --> 0:19:58.280 for growth, but our businesses coming along for the ride. 0:19:58.400 --> 0:20:00.879 We've been getting reaction from the back to General of 0:20:00.880 --> 0:20:04.560 the British Chambers of Commerce, Chevron Haviland, who was one 0:20:04.560 --> 0:20:07.159 of the first to turn critical in the wake of 0:20:07.200 --> 0:20:10.760 the budget last year as growth flatlined and we saw 0:20:10.800 --> 0:20:14.639 a dip in both consumer and business confidence. We spoke 0:20:14.720 --> 0:20:18.480 to her just after Rachel Reeves's big announcement. 0:20:18.880 --> 0:20:21.359 It will deliver it in the short term and lots 0:20:21.359 --> 0:20:25.760 of different places. Remember this is a really difficult time 0:20:26.000 --> 0:20:30.560 for business. Natal insurance increases are going, you know, coming 0:20:30.560 --> 0:20:33.600 in place in just a few weeks, so tax rises 0:20:33.960 --> 0:20:37.600 for all businesses. So it was really good to see 0:20:37.640 --> 0:20:44.600 the Chancellor focus on economic growth, Airport expansion, Heathrow, Doncaster, Sheffield, 0:20:45.240 --> 0:20:48.560 new road, rail low attempts crossing East West rail and 0:20:48.640 --> 0:20:52.080 rebalancing the planning system as you were outlined. So those 0:20:52.160 --> 0:20:55.960 things will have not just a there are a great 0:20:57.880 --> 0:21:01.960 signifier global signify far of confidence and the direction we're 0:21:02.000 --> 0:21:04.760 traveling in. You know, big infrastructure projects, as you say, 0:21:04.840 --> 0:21:06.800 take a long time, so you need to start now. 0:21:07.359 --> 0:21:10.399 But remember that indicator for the small and medium sized 0:21:10.400 --> 0:21:14.639 businesses in those supply chains will already give them confidence 0:21:14.720 --> 0:21:17.720 to think about investing now and growing their businesses now 0:21:18.440 --> 0:21:21.560 so they can supply those into those infrastructure projects. 0:21:21.960 --> 0:21:23.800 But Trevon, is it going to be enough. 0:21:23.920 --> 0:21:26.280 Those businesses are worried about how they're going to pay 0:21:26.320 --> 0:21:29.239 for the national insurance rise coming in a couple of 0:21:29.280 --> 0:21:32.000 months time. The budget has been very difficult and we've 0:21:32.040 --> 0:21:35.200 seen that reflected in both business and consumer confidence figures. 0:21:36.560 --> 0:21:39.920 The budget has been very difficult. It has, and especially 0:21:39.920 --> 0:21:43.600 if you have a business with a large employee base. 0:21:43.760 --> 0:21:46.680 It is going to be very hard. Our businesses are 0:21:46.720 --> 0:21:49.000 telling us they're going to have to put up prices 0:21:49.040 --> 0:21:51.000 if they can. A lot of them have already put 0:21:51.080 --> 0:21:53.239 up their prices. That's going to be tricky. They're going 0:21:53.280 --> 0:21:56.359 to take it in their margin, which means lower investment, 0:21:57.080 --> 0:21:59.919 or they're going to slow down recruitment. And all of 0:22:00.080 --> 0:22:02.200 that is good. But you remember, at the same time 0:22:02.400 --> 0:22:06.320 in the budget, the Chancellor also said to mitigate against 0:22:07.080 --> 0:22:10.720 those issues, we need more opportunity for business, and she 0:22:10.840 --> 0:22:16.200 talked about getting britten back to building homes, hospitals, energy, infrastructure, 0:22:16.640 --> 0:22:19.920 and so you know, the announcements yesterday are a really 0:22:19.920 --> 0:22:22.800 good step in that direction. They're a really good indicator 0:22:22.880 --> 0:22:26.879 for that. Okay, things that infrastructure projects. It's not just 0:22:27.000 --> 0:22:30.760 local supply chains and local economic development. Often supply chains 0:22:30.840 --> 0:22:37.280 run all over the country. Connectivity, airport expansion. That's fantastic 0:22:37.359 --> 0:22:39.840 for trade, you know, moving our goods around the world, 0:22:40.520 --> 0:22:42.240 and it also global competitiveness. 0:22:42.600 --> 0:22:45.199 Okay, but she did not reverse the tax increases on 0:22:45.320 --> 0:22:48.119