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Speaker 1: This is Bloomberg Daybreak Weekend, our global look at the

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Speaker 1: top stories in the coming week from our Daybreak anchors

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Speaker 1: all around the world. Straight ahead on the program, the

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Speaker 1: housing market and the economy. I'm Amy Morris in Washington.

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Speaker 1: I'm Stephen Carol in London. We're asking if things look

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Speaker 1: any better or worse for next year. I'm Brian Curtis

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Speaker 1: Bloomberg Daybreak a ship. We crack the code on the

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Speaker 1: biggest market trends expected in twenty three for Hong Kong

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Speaker 1: and China. I'm Joe Matthew in Washington. President Biden ends

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Speaker 1: a tough year on a high note. That's all straight

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Speaker 1: ahead on Bloomberg Daybreak Weekend on Bloomberg eleven three, on

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Speaker 1: New York Bloomberg one, Washington d C, Bloomberg one oh

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Speaker 1: six one Boston, Bloomberg nine sixties, San Francisco, d A

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Speaker 1: B Digital Radio, London, Sirius XM one nine ten, and

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Speaker 1: around the world on Bloomberg Radio dot com and via

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Speaker 1: the Bloomberg Business App. Good day to you. I'm Amy

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Speaker 1: more As we begin today's program with housing. A bunch

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Speaker 1: of housing data coming next week, including pending home sales

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Speaker 1: for November economists we've surveyed are forecasting another drop. You remember,

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Speaker 1: pending sales fell in October as buyers faced mortgage rates

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Speaker 1: pretty much at twenty year highs. Pending home sales are

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Speaker 1: a leading indicator, so we're watching that one closely for

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Speaker 1: you here this coming Wednesday, with live coverage breaking it

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Speaker 1: all down for you on Bloomberg Radio. Existing home sales

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Speaker 1: also fell in November, but it's interesting some are saying

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Speaker 1: home sales may not fall much more from here, including

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Speaker 1: Mark Zandy of Moody's Analytics. Yeah, I think in terms

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Speaker 1: of home sales, I think we're pretty close to the bottom,

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Speaker 1: pretty close to the bottom, and that reflects the peak

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Speaker 1: in mortgage rates, which we're back a couple of months

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Speaker 1: ago when they were significantly north of seven percent for

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Speaker 1: three year fix. Now we're down closer to six percent

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Speaker 1: and I don't think we're going back to over seven again.

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Speaker 1: So I think we're pretty close to the bottom and

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Speaker 1: sales now. Mark's Andy of Moody's Analytics also tells us

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Speaker 1: that home prices could fall more from here because mortgages

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Speaker 1: are still just taking up too much of people's paychecks

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Speaker 1: right now. You're right, I mean affordability has been completely

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Speaker 1: hammered here, and that's the fundamental issue. You know, you

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Speaker 1: mix the high mortgage rates with the high previously high

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Speaker 1: house prices, it's just too much to bear. I mean,

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Speaker 1: I think the average monthly payment for a typical for

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Speaker 1: American buying a typical priced home is up the seven

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Speaker 1: eight hundred bucks from where it was about a year ago.

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Speaker 1: And that's just not affordable. So we need a combination

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Speaker 1: to get restore affordability and get demand moving in the

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Speaker 1: right direction again. We need a combination of of lower

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Speaker 1: mortgage rates, lower house prices, and rising incomes. And my senses,

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Speaker 1: if mortgage rates come in back to you know, five

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Speaker 1: and a half percentag is, which is where I would

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Speaker 1: expect them in the long run, incomes continue to rise,

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Speaker 1: we don't go into recession. We need about a ten

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Speaker 1: percent decline in house prices to restore for affordability sufficiently.

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Speaker 1: That probably won't happen until late going into twenty I

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Speaker 1: think we've got a couple of years here before affordability

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Speaker 1: we'll get to a place where you know, demand will

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Speaker 1: start to improve again, significantly improve. Now. Mark Zany, chief

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Speaker 1: economist of Moodies Analytics, also tells us he thinks the

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Speaker 1: Fed does not need to go too much higher on

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Speaker 1: its benchmark interest rate, and one reason he thinks inflation

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Speaker 1: is abating is that rents are coming down. Market rents,

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Speaker 1: you know, the rents that are being charged people that

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Speaker 1: are signing leases today, they've suddenly gone week and down

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Speaker 1: for uh for in part because rents are so high

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Speaker 1: that people can't afford to rent. So you had so

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Speaker 1: called demand destruction and a lot more supply. The supply

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Speaker 1: chains are easing and builders can get appliances and building materials.

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Speaker 1: Labor markets are easing. For an Immigrants that work in

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Speaker 1: construction sites are getting on the job, getting a lot

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Speaker 1: more properties going across the finish line to completion. More

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Speaker 1: more supply less demand. Rents are weak, and that's gonna

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Speaker 1: show up in the cost of housing services over the

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Speaker 1: course of the next six, six and twelve months. And

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Speaker 1: that's one reason I feel reasonably confident that inflation's gonna

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Speaker 1: be coming in here pretty quickly. We're also going to

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Speaker 1: be getting the SNP Cora Logic Home Price Index this

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Speaker 1: coming Tuesday that is expected to show home prices fell

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Speaker 1: about one and a half percent monthly in October, but

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Speaker 1: still gained more than eight percent year on year. Michael

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Speaker 1: fred Antoni is chief economist at the Mortgage Bankers Association

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Speaker 1: and says, if mortgage rates stay lower than the October peak,

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Speaker 1: we could see a big wave of home buying starting

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Speaker 1: this coming March and April. If we can keep rates six,

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Speaker 1: maybe a little bit below stakes as we get into

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Speaker 1: the first quarter of next year, when we're at the

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Speaker 1: beginning of the spring buying season, that's really going to

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Speaker 1: be impactful. A lot of the folks have stepped away

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Speaker 1: from the market in two and May and June because

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Speaker 1: of that sticker shock and stayed away through the fall.

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Speaker 1: They still need to live somewhere. They're still seeing their

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Speaker 1: rent increase. So I'm not going to be surprised if

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Speaker 1: the market shifts a bit more towards sort of the

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Speaker 1: first time home buyer segment, because again, a lot of

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Speaker 1: the folks that would have planned to have bought last

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Speaker 1: year put it off. Give him this Vike and raid

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Speaker 1: swee had just a little bit of leite of relief

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Speaker 1: and mortgage rage, they could come back. Michael fred Antonia

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Speaker 1: is chief economist at the Mortgage Bankers Association, and he

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Speaker 1: also tells us he thinks that nationally home prices won't

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Speaker 1: fall too much more next year, maybe one down on

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Speaker 1: the year. We'll be getting more data on that from

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Speaker 1: the f hf A this coming Tuesday. As well. Housing

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Speaker 1: demand very affected by the ability to get a mortgage.

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Speaker 1: Another thing we're watching in the housing market how big

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Speaker 1: banks are doing on their promise to boost lending to

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Speaker 1: black homebuyers. Joining me now to talk about this very

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Speaker 1: important part of the housing story that's shaping the economic

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Speaker 1: health of housing and black Americans in the months and

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Speaker 1: years to come, Bloomberg Senior economics writer Sean Donnan. Sean,

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Speaker 1: it is always a pleasure. Thanks for taking the time

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Speaker 1: with us. Hey, thanks so much for having me. Now

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Speaker 1: set the stage for me here. You did a deep

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Speaker 1: five into a block in Baltimore. Um, and this actually

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Speaker 1: wound up being a feature story in a Bloomberg Big

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Speaker 1: take on the Bloomberg Terminal. It's really fascinating. Tell us

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Speaker 1: what you found. Yeah, what we dived into was really

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Speaker 1: one of the main causes of the racial wealth gap

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Speaker 1: in America. We have learned a lot about in recent

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Speaker 1: years about how there's this persistent gap in wealth between

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Speaker 1: black families and white families, and and how that kind

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Speaker 1: of nause at the economy. One of the main causes

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Speaker 1: of that is the home ownership gap. Black families, about

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Speaker 1: forty of them own the homes that they live in

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Speaker 1: versus about of white families. And that is a gap

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Speaker 1: that has persisted for years. And one of the things

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Speaker 1: we saw in recent years is the big banks in America,

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Speaker 1: alongside other companies, make some big promises to the black community,

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Speaker 1: to the USA economy to try and close that racial

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Speaker 1: wealth gap, that home ownership gap. And so we dove

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Speaker 1: into that, and that took us all the way down

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Speaker 1: to the block of Waber Captain. Now, when you got there,

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Speaker 1: when you dig when you were digging deep, let's say,

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Speaker 1: did you find that promises were made and well, not

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Speaker 1: kept necessarily, but at least the attempt was there. So

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Speaker 1: the promises that we looked at were some big, ambitious

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Speaker 1: promises made by the banks. Wells Fargo in made the

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Speaker 1: biggest of those. It said that it would lend sixty

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Speaker 1: billion dollars that's billion, not a million, sixty billion dollars

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Speaker 1: to create two hundred and fifty thousand black homeowners in

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Speaker 1: America within a decade and so we looked at the

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Speaker 1: data and what we found was that actually every year

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Speaker 1: since making that promise, Wells Fargo, which was the biggest

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Speaker 1: bank player was actually the biggest player in the mortgage

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Speaker 1: market in back in that every year since making that promise,

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Speaker 1: Wells Fargo has actually backed fewer mortgages to black home

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Speaker 1: buyers than it did the year before, and that it's

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Speaker 1: gone down to a point where actually the San Francisco

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Speaker 1: based lender underwrote forty fewer mortgages to black buyers than

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Speaker 1: it did in when it made that promise. It isn't

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Speaker 1: the only bank to have made such a promise. JP

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Speaker 1: Morgan in October twenty after that summer of racial reckoning

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Speaker 1: that we had in America, and made a promise to

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Speaker 1: create or originate mortgages to an additional forty thousand black

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Speaker 1: and Latino buyers over five years. Now it's much earlier

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Speaker 1: into delivering on its promise. But in one it originated

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Speaker 1: just two more mortgages to black comebuyers than it did

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Speaker 1: in the year it said as a benchmark, and it's

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Speaker 1: lending to Latino home buyers actually went down in Bank

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Speaker 1: of America has made some some slightly different promises. They're

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Speaker 1: they're they're broader, they're harder to measure, but it's pledged

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Speaker 1: thirty billion dollars in lending and down payment assistance to

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Speaker 1: minority and low income homeowners in America. All of this

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Speaker 1: matters because what we're seeing across the board and what

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Speaker 1: we've seen over the last fifteen years, it's been a

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Speaker 1: big dip in in originations and mortgages that are issued

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Speaker 1: to two black home buyers in America, and that hasn't

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Speaker 1: caught up with where we were back If you remember

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Speaker 1: the last financial crisis of the two thousand and eight

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Speaker 1: two thousand nine, the subprime crisis was the type of

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Speaker 1: lending we had back in the early two thousands that

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Speaker 1: beetn't caught up to those levels until actually in the

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Speaker 1: middle of the pandemic. And in that time, we've had

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Speaker 1: a huge housing boom of property boom in America, and

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Speaker 1: there's a lot of wealth that's been created for homeowners

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Speaker 1: in America that black families simply have missed out on

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Speaker 1: because they have that lower homeownership break. All Right, just

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Speaker 1: terrific reporting, Sean, Thank you so much for digging deep

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Speaker 1: into this issue. You can find it on Bloomberg's Big

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Speaker 1: Take and on the Bloomberg terminal. Thank you so much, Sean,

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Speaker 1: thanks for having me, Bloomberg Senior economics writer Sean Donn

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Speaker 1: And and coming up on Bloomberg Daybreak weekend, things aren't

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Speaker 1: exactly looking up for the UK economy in three more

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Speaker 1: on that just ahead. I'm Amy Morris. This is Bloomberg.

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Speaker 1: This is Bloomberg Daybreak week and our globe will look

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Speaker 1: ahead at the top stories for investors in the coming week.

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Speaker 1: I'm Ammy Morris in Washington. Up later in our program

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Speaker 1: as President Biden really finally hit his stride, but first

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Speaker 1: a roller coaster year for the UK economy, with political

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Speaker 1: upheaval adding to the already gloomy economic outlook. Things aren't

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Speaker 1: looking up in three either. The o E c D

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Speaker 1: is warning the UK is said to be the worst

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Speaker 1: performer in the G twenty Russia for the next two years.

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Speaker 1: For more, let's go to London and bring in Bloomberg

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Speaker 1: Daybreak Europe anchor Stephen Carroll. We've had three prime ministers,

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Speaker 1: four finance ministers, and one ill fated budget in the

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Speaker 1: UK this year, all of that dragging the pounds than

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Speaker 1: an inch of parity versus the US dollar at one point. Overall,

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Speaker 1: it's been quite the wild ride for the UK economy.

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Speaker 1: Now the Bank of England is expecting a prolonged recession

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Speaker 1: in twenty three. Joining us to discuss the year that

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Speaker 1: was and what's ahead our UK correspondent Lizzie Byrden and

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Speaker 1: our senior UK economist Dan Hansen. And Lizzie, let's start

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Speaker 1: with you. One measure of the volatile as we've seen

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Speaker 1: this year is in the pound. Talk us through what

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Speaker 1: were the highlights and low lights for sterling? And two,

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Speaker 1: I think it's very obvious what the low light would

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Speaker 1: have been, but you could say that this whole year

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Speaker 1: has been an annus horrible ifs for sterling. So we

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Speaker 1: started the year at one dollar thirty five and then

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Speaker 1: the pound dropped to a record low in September of

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Speaker 1: near adult the parity, and of course that was just

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Speaker 1: after the mini budget. And ultimately it was the chaos

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Speaker 1: in currency and FX markets that ousted Liz Trust. They

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Speaker 1: were the guardrails on the government in the end. Now

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Speaker 1: we've got Risci Snack in number ten. His fiscal plans

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Speaker 1: are obviously more austere than Lizz Truss. Is this Dullness

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Speaker 1: dividend has helped to recover the pound somewhat, but even

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Speaker 1: after the recent rebound, it's still sterling down almost ten

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Speaker 1: percent since the start of the year. Yes, dollar strength

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Speaker 1: has played in but to give it some historical context,

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Speaker 1: two has been the pound's worst ever apart from the

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Speaker 1: break sit vote, the financial crisis and Black Wednesday in

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Speaker 1: ninety two another collection of greatest hits. Don How is

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Speaker 1: the UK economy finishing the year compared to how it started? Well,

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Speaker 1: it started the year pretty strongly if you look at

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Speaker 1: the data, because if you if you remember back then,

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Speaker 1: it seems an awful long time ago. Now we had

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Speaker 1: we had the rebound from the homochron wave, so you

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Speaker 1: had a pretty strong GDP reading at the start of

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Speaker 1: the year, and since then things have really really slowed

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Speaker 1: down to the second quarter was there was growth in

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Speaker 1: the second quarter, but it was weak, and then we've

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Speaker 1: obviously had a fall in GDP in the third quarter,

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Speaker 1: and most forecasts are expecting a fall in GDP in

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Speaker 1: the final quarter. Though I think I know we've we're

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Speaker 1: gonna we're most likely going to have two consecutive quarters

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Speaker 1: of negative growth, which as we all know that will

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Speaker 1: signal the start of a technical recession, but I think

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Speaker 1: try and sort of put a positive spin on it. Actually,

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Speaker 1: those two quarters have been very, very mild in terms

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Speaker 1: of their drops. So you've had a point two drop

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Speaker 1: in the in the third quarter and the fourth quarter.

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Speaker 1: The Bank of England has said that it thinks that

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Speaker 1: the drop waby point one percent, So yeah, us it's

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Speaker 1: not good news. But when you put that in the

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Speaker 1: context of the living squeeze that is occurring here in

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Speaker 1: the UK, actually the economy is holding up relatively well. Yes,

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Speaker 1: we were probably heading into a recession of protractive recession,

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Speaker 1: but it's going, at least on our forecast, to be

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Speaker 1: relatively mild. So I know, those aren't Those aren't words

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Speaker 1: people want to hear, recession, downturn. But actually when you

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Speaker 1: look at the depth of it relative to his past

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Speaker 1: down turns, it doesn't look like it's going to be

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Speaker 1: as bad. Okay, Lizzie. In terms of Sterling, are we

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Speaker 1: over the worst of the upheaval that we've seen this

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Speaker 1: year when we look into three Yes, But says she trepidaciously,

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Speaker 1: if you look at the options market, there's currently a

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Speaker 1: fort chance that the plan is going to get stuck

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Speaker 1: between one dollar turn and one dollar thirty for the

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Speaker 1: next two years, and that's still it's weakest have a

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Speaker 1: trading range. And that's because of the factors Done talks about.

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Speaker 1: We've got a year of high inflation ahead rising interest

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Speaker 1: rates to combat it, housing slowdown, and this is a

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Speaker 1: content innuation of a long term downward trends. So the

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Speaker 1: five years before the Brexit vote in twenty sixteen, the

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Speaker 1: pounds average was about one dollar fifty nine. The five

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Speaker 1: years before that it was about one dollar seventy six.

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Speaker 1: But it's not just a Brexit thing. It's what Brexit

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Speaker 1: has created, more trade frictions with the EU, It's left

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Speaker 1: the labor market short of workers, it's undermined business investment.

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Speaker 1: Looking ahead Bank of America. I was there speaking to

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Speaker 1: the economists last week. They say that Sterling in three

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Speaker 1: is actually going to be dominated by Brexit and whether

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Speaker 1: this government can reach a compromise on Brexit, whether they

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Speaker 1: can find a sustainable solution on the Northern Ireland Protocol.

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Speaker 1: And I have to say, even though Rischie Sunac, probably

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Speaker 1: for the benefit of the Brexit wing of his party,

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Speaker 1: has talked tough on not wanting a Swiss style deal

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Speaker 1: as as was reported. Actually in the markets, people are

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Speaker 1: very optimistic that he will be pragmathematic on Brexit. So

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Speaker 1: for me, three is about feeling how much he's willing

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Speaker 1: to stand up to his party or in their eyes,

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Speaker 1: the degree to which he's a true Brexitter. Yeah, indeed,

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Speaker 1: And of course the deadline for that that everyone's notionally

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Speaker 1: aiming for is the anniversary of the Good Friday Agreement

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Speaker 1: in April of next year. Is the hope is that

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Speaker 1: they will have done a deal between the UK and

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Speaker 1: the EU by then that will resolve the issues and

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Speaker 1: allow there to be an official commemoration of that deal

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Speaker 1: without the ongoing political tensions that we've seen in Northern

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Speaker 1: Ireland on that issue. And optimistically all of this back

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Speaker 1: and forth is just choreography to show that everybody's trying

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Speaker 1: to defend their sides, but hopefully we'll get to something then. Yeah.

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Speaker 1: Let's take a listen now to what the Bank having

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Speaker 1: The Governor Andrew Bailey said that their last rate decision

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Speaker 1: about what he expects in terms of inflation next year.

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Speaker 1: We think we've seen, possibly this week, the first glimmer

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Speaker 1: that with the figures that were released this week that

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Speaker 1: it's not only beginning to come down, but it was

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Speaker 1: a little bit below where we thought it would be,

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Speaker 1: and that's obviously very good news, but it's a long

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Speaker 1: way to go, and there is and we expect that

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Speaker 1: to happen. By the way, we expect inflation to start

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Speaker 1: falling more rapidly, probably from the late spring onwards, but

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Speaker 1: there is a risk that it won't happen in that way,

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Speaker 1: particularly because the labor market and labor supply in this

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Speaker 1: country are so tight. Okay, So that's what Andrew Bailey

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Speaker 1: has to say about the outlook for the next year.

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Speaker 1: Dan Hansen, what are the particular pressure points you're watching

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Speaker 1: out for going into next year. Andrew Bailey seems to

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Speaker 1: think things are going to improve pretty soon an inflation, Yes,

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Speaker 1: so I think I think you can think of the

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Speaker 1: inflation path next year in sort of to two elements

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Speaker 1: to it. So over the winter and into the first

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Speaker 1: quarter of next year, we don't think inflation is going

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Speaker 1: to drop below ten per cent. I think our forecast

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Speaker 1: in March in fact, just has it dropping a little

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Speaker 1: bit low below ten per cent here to nine and

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Speaker 1: a half. So you've got pretty sticky inflation for the

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Speaker 1: next sort of four or five months. But then what

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Speaker 1: you'll we think at least and we hope you'll see,

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Speaker 1: is these base effects coming through um and the impact

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Speaker 1: of the energy price rises that we've seen this year

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Speaker 1: falling out of the annual comparison. And what the Governor

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Speaker 1: was a loud into there was the good news from

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Speaker 1: the latest inflation print was that core goods inflation. So

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Speaker 1: this is a bit of the inflation basket that's been

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Speaker 1: really impacted by supply constraints, and we've seen it coming

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Speaker 1: off very sharply in the US. We think those that

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Speaker 1: that part of the inflation basket is going to ease

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Speaker 1: quite sharply as well. So I think what you'll get

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Speaker 1: is is a pretty sharp fall in inflation. But the

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Speaker 1: key thing to remember here is that I think the

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Speaker 1: easy bid is getting from say ten to four or five,

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Speaker 1: the hard bid is getting from four or five to two.

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Speaker 1: And what that reflects is what's going on, as the

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Speaker 1: Governor mentioned there as well, is what's going on in

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Speaker 1: the labor market, and what's going on in with services inflation,

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Speaker 1: and before you get services inflation, what's going on in

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Speaker 1: pay So I think you'll see you'll see a pretty

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Speaker 1: sharp drop this year, but they're the sort of easy yards.

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Speaker 1: You've got the hardy yards to come. And that will

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Speaker 1: that will only really be revealed in the latter half

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Speaker 1: of three the sort of what's the residual bit of

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Speaker 1: inflation and that that's really what will that will focus

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Speaker 1: the bank next year as well, Lizzie, we are rattling

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Speaker 1: towards the end of the year in the UK and

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Speaker 1: amidst this massive wave of strikes. Is that going to

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Speaker 1: be a continuing theme when we think about the labor

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Speaker 1: Marcus next year. Well, my colleague Philip aldric Our, senior

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Speaker 1: UK Economics reporter, had a really interesting conversation with Charles Goodhart,

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Speaker 1: who's a former bankoving the policymaker, and he said that

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Speaker 1: it might not just be a winter of discontent, it

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Speaker 1: could be a year of discontent unless the government agrees

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Speaker 1: to a wage deal to end this industrial action. Labor's

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Speaker 1: point the opposition Labor Party is that you need to

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Speaker 1: treat it as a whole rather than strike by strike,

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Speaker 1: union by union. And if you think about what DNS

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Speaker 1: saying that this inflation is going to be sticky, it's

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Speaker 1: not going to drop below ten percent for four to

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Speaker 1: five months. That really keeps the pressure on the government. Okay,

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Speaker 1: thank you very much to Blomberg's UK corresponded Lizzie Burden,

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Speaker 1: and to our senior UK economist Dan Hansen as well.

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Speaker 1: I'm even Carl in London. You can catch us every

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Speaker 1: weekday morning here for Bloomberg Daybreak Europe, beginning at six

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Speaker 1: am in London and one am on Wall Streets. Thank you, Stephen.

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Speaker 1: Coming up on Bloomberg Daybreak weekend. President Biden continues to

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Speaker 1: chalk up successes. But can it last? We'll find out.

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Speaker 1: I'm Amy Morris. This is Bloomberg broadcasting live from the

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Speaker 1: Bloomberg in our active broker studio in New York. Bloomberg

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Speaker 1: Even three oh to Washington, d C, Bloomberg to Boston,

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Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine

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Speaker 1: sixty to the country Sirius XM Channel one nineteen to

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Speaker 1: London d A B Digital Radio, and around the globe

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Speaker 1: the Bloomberg Business Act and Bloomberg Radio dot Com. This

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Speaker 1: is Bloomberg day Break Weekend. I'm Amy Morris in Washington

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Speaker 1: with your global look ahead at the top stories for

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Speaker 1: investors in the coming week has does it in Biden

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Speaker 1: really finally hit his stride. Were more here in our

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Speaker 1: Bloomberg NY nine one newsroom in Washington. We go to

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Speaker 1: Bloomberg Sound On host Joe Matthew. Jo thank you Amy.

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Speaker 1: President Biden feeling good as he heads into the new

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Speaker 1: year after what was arguably the best mid term performance

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Speaker 1: by a sitting president in decades. The President saying, it's

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Speaker 1: clear Americans are committed to protecting and defending democracy, a

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Speaker 1: strong rejection of election deniers at every level, from those

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Speaker 1: seeking lead our states and those of seeking to serve

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Speaker 1: in Congress, and also those seeking to oversee the election.

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Speaker 1: Joining us now to talk about this, Bloomberg White House

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Speaker 1: reporter Josh wind Grove, Josh, happy holiday, is great to

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Speaker 1: see you. Thank you for being here as we talk

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Speaker 1: about this moment for Joe Biden. Uh, not only did

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Speaker 1: he outperform in the mid terms, your reporting shows that

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Speaker 1: he did a bit of an end run around his

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Speaker 1: own advisors by insisting that democracy itself beyond the ballot

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Speaker 1: as opposed to so many other issues that were in

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Speaker 1: the air. I guess his instincts were correct. Yeah, I think, Look,

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Speaker 1: this is a guy that likes to measure twice or

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Speaker 1: three times and four times, five times and then cut once. Right,

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Speaker 1: Like the knock on that strategy is sometimes they get

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Speaker 1: to be a little flat footed. But on the flip side,

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Speaker 1: you know he thinks that he keeps his eye on

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Speaker 1: the ball or you know, has a focus that he's

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Speaker 1: not distracted. Uh. You know, rewind to the start of

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Speaker 1: the year, right, you know, the inflation was really taking off,

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Speaker 1: the COVID's cases. We all remember the omicron start of

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Speaker 1: Jurga was insane. Of course, Russia was about to invade Ukraine.

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Speaker 1: Things were in installed in Congress, everything had collapsed with

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Speaker 1: Mansion and you know, things turned around. They got some

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Speaker 1: bills through Congress. The mid term performance are pretty happy

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Speaker 1: about and so on balance, you had Biden there being like,

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Speaker 1: how can I frame this? How do we avoid the

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Speaker 1: blood bath politically speaking that presidents usually see in the

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Speaker 1: middle of their first term. And you know he's been

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Speaker 1: sitting down and talking with historians that sort of thing.

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Speaker 1: So that's when you got this focus on we gotta

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Speaker 1: make it on democracy. We've gotta be like, vote for

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Speaker 1: anyone that will honor the result of the vote. Do

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Speaker 1: you remember he did that speech in Philly that kind

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Speaker 1: of bombed. It was like a weird background and like

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Speaker 1: red and very like you know, the seventies horror film

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Speaker 1: kind of like look. So he did sort of took

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Speaker 1: it a second kick at the can, a bit of

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Speaker 1: a haphazard one here in d C. But they think

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Speaker 1: that that was part of the message that resonated, of

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Speaker 1: course in the broader context about their messages as well,

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Speaker 1: you know, things like that moves on student loans for instance,

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Speaker 1: motivating young voters, things like that, you know, cocktail and stuff.

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Speaker 1: He's buoyant right now. You can tell, because he's a

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Speaker 1: little chippy with the press that he feels boldened a

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Speaker 1: little bit right now. I like new Gingrich's take in

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Speaker 1: your piece the former speaker basically referring to Joe Biden's

433
00:23:38,520 --> 00:23:43,439
Speaker 1: challenges that lead many Republicans to underestimate him, his speech impediment,

434
00:23:43,520 --> 00:23:46,760
Speaker 1: his memory lapses that lead new Gingrich to compare Joe

435
00:23:46,760 --> 00:23:49,560
Speaker 1: Biden to Eisenhower or even Ronald Reagan. Yeah. Well, Gingrich

436
00:23:49,640 --> 00:23:51,399
Speaker 1: just kind of put himself out on a limb, right

437
00:23:51,440 --> 00:23:53,920
Speaker 1: If you read his blog post, essentially what it is

438
00:23:54,280 --> 00:23:59,919
Speaker 1: he's he's enumerating a pretty sharp, grueling attack on Joe Bay.

439
00:24:00,119 --> 00:24:02,679
Speaker 1: But the headline is we keep underestimating. In other words,

440
00:24:02,960 --> 00:24:05,680
Speaker 1: he's trying to convince his fellow sort of Republican brethren

441
00:24:05,720 --> 00:24:10,000
Speaker 1: that that just sort of casting Biden is like, you know,

442
00:24:10,359 --> 00:24:12,800
Speaker 1: either extreme, which voters tend not to believe because he's

443
00:24:12,800 --> 00:24:15,719
Speaker 1: been around it kind of known quantity, or as you know,

444
00:24:15,800 --> 00:24:20,320
Speaker 1: bumbling grandpa, great grandpa or whatever. Um. Then um. Then

445
00:24:21,000 --> 00:24:23,800
Speaker 1: they sort of get away from the stuff that actually

446
00:24:23,840 --> 00:24:25,280
Speaker 1: might work more and being like we should attack him

447
00:24:25,280 --> 00:24:28,120
Speaker 1: for his policy. So you have you have Gingrich saying, look,

448
00:24:28,160 --> 00:24:30,080
Speaker 1: if we just write Joe Biden off because he's now

449
00:24:30,119 --> 00:24:32,000
Speaker 1: eighty years old and we think he's going to stumble

450
00:24:32,040 --> 00:24:35,320
Speaker 1: his way out of the presidency out of sixteen hundred Pennsylvania,

451
00:24:35,760 --> 00:24:38,320
Speaker 1: then he thinks that they should give their head a shake.

452
00:24:38,320 --> 00:24:40,280
Speaker 1: Because that's the argument from Gingris. You know, we reached

453
00:24:40,280 --> 00:24:42,679
Speaker 1: out to a lot of Republicans for their thoughts on

454
00:24:42,680 --> 00:24:44,439
Speaker 1: what new Gingridge is saying, we got a lot of

455
00:24:44,560 --> 00:24:46,720
Speaker 1: we got a lot of no responses. So you know,

456
00:24:47,080 --> 00:24:49,119
Speaker 1: it's not it's not a it's it's a pitch that

457
00:24:49,200 --> 00:24:51,680
Speaker 1: they're willing to let sail right by rather than thinking

458
00:24:51,720 --> 00:24:53,879
Speaker 1: a wing at So we'll see where whether Gingrich is

459
00:24:53,880 --> 00:24:56,280
Speaker 1: speaking for the sort of silent you know, chunk of

460
00:24:56,320 --> 00:24:58,800
Speaker 1: the party who might think that. But remember we're sitting here.

461
00:24:59,200 --> 00:25:01,399
Speaker 1: You know, Joe b and has not formally announced his

462
00:25:01,400 --> 00:25:04,359
Speaker 1: re election campaign, but gosh, all signs point yes, and

463
00:25:04,400 --> 00:25:06,200
Speaker 1: it's right. This is a guy that is not looking

464
00:25:06,240 --> 00:25:08,960
Speaker 1: for his exit, and he'll have inflation waiting for him

465
00:25:09,240 --> 00:25:11,040
Speaker 1: when he makes that decision and when he enters the

466
00:25:11,040 --> 00:25:13,800
Speaker 1: new year and the new Congress begins as he tries

467
00:25:13,840 --> 00:25:15,639
Speaker 1: to put a good face on all in the world

468
00:25:15,680 --> 00:25:18,560
Speaker 1: where inflation is rising a double digits, so many major

469
00:25:18,600 --> 00:25:21,800
Speaker 1: economies around the world. Inflation is coming down in America,

470
00:25:22,200 --> 00:25:24,800
Speaker 1: then again, ask Muhammadhill area. Inflation is not going to

471
00:25:24,880 --> 00:25:27,880
Speaker 1: come down in an orderly fashion. We're gonna get sticky inflation.

472
00:25:28,160 --> 00:25:33,280
Speaker 1: The Bloomberg opinion columnists on Bloomberg. Of course, sticky inflation.

473
00:25:33,800 --> 00:25:36,040
Speaker 1: It's come down a bit, the feed is still working,

474
00:25:36,080 --> 00:25:40,000
Speaker 1: and you've also got the prospect of breaking the job

475
00:25:40,080 --> 00:25:43,000
Speaker 1: market to fix the inflation issue. Josh, how do you

476
00:25:43,040 --> 00:25:46,320
Speaker 1: square that when you're starting a re election campaign? You know, Look, yeah,

477
00:25:46,920 --> 00:25:49,240
Speaker 1: the chances that even if it doesn't come down, you know,

478
00:25:49,320 --> 00:25:52,080
Speaker 1: Joe Biden could be facing a recession either a year

479
00:25:52,240 --> 00:25:53,920
Speaker 1: or even six months out of the next election. That

480
00:25:54,240 --> 00:25:59,360
Speaker 1: sucks for any for any president reelection technical term, right, yeah,

481
00:25:59,400 --> 00:26:01,760
Speaker 1: that's that's the that's the macro term. Um. So you

482
00:26:01,800 --> 00:26:05,480
Speaker 1: know he right now. I think that they are praying

483
00:26:05,640 --> 00:26:07,600
Speaker 1: that some of the stuff kicks in and in the meantime,

484
00:26:07,680 --> 00:26:09,560
Speaker 1: some of the stuff that they have done, which is

485
00:26:09,560 --> 00:26:11,480
Speaker 1: a little bit nibbling around the edges, were being honest,

486
00:26:11,520 --> 00:26:13,639
Speaker 1: but not for the people who it affects. It starts

487
00:26:13,640 --> 00:26:17,040
Speaker 1: to kicking things like Medicare capping the cost of insulin

488
00:26:17,480 --> 00:26:20,359
Speaker 1: for certain people starting in January. That's a big deal.

489
00:26:20,440 --> 00:26:24,080
Speaker 1: Biden's approach to inflation has essentially been we can try

490
00:26:24,119 --> 00:26:26,840
Speaker 1: to lower certain costs per month for certain people to

491
00:26:26,920 --> 00:26:29,240
Speaker 1: try to ease the pain across the board and cost

492
00:26:29,280 --> 00:26:31,239
Speaker 1: that everyone in America is facing. The thing is, if

493
00:26:31,280 --> 00:26:35,119
Speaker 1: he did get a recession, energy prices would fall, food

494
00:26:35,160 --> 00:26:38,919
Speaker 1: prices would fall. He enters the final year of a

495
00:26:38,960 --> 00:26:43,560
Speaker 1: presidential campaign, inflation is licked. We're going to fix the economy,

496
00:26:43,600 --> 00:26:46,160
Speaker 1: and the guy I'm running against it could be under

497
00:26:46,200 --> 00:26:49,919
Speaker 1: indictment by them. Yeah, I mean yeah, I don't know

498
00:26:49,960 --> 00:26:52,400
Speaker 1: that any president wants to see a bunch of people

499
00:26:52,440 --> 00:26:55,240
Speaker 1: losing their jobs, and right and then, like equity matters

500
00:26:55,280 --> 00:26:57,399
Speaker 1: to this administration. I mean, some people think it might

501
00:26:57,400 --> 00:27:00,320
Speaker 1: be virtue signaling here and there, but like the people

502
00:27:00,320 --> 00:27:02,600
Speaker 1: that will lose their jobs are the types of people

503
00:27:02,800 --> 00:27:06,879
Speaker 1: workers that Joe Biden at least rhetorically talks about a lot, Right,

504
00:27:06,920 --> 00:27:09,719
Speaker 1: There are people that that live paycheck to paycheck, hourly

505
00:27:09,760 --> 00:27:12,760
Speaker 1: wage workers, often minority, just like he grew up right

506
00:27:12,840 --> 00:27:16,040
Speaker 1: exactly so, like he genuinely seems to just believe that

507
00:27:16,160 --> 00:27:17,960
Speaker 1: he thinks that there has to be a third way,

508
00:27:18,000 --> 00:27:20,280
Speaker 1: There has to be a magical sort of landing here

509
00:27:20,760 --> 00:27:22,919
Speaker 1: where And you know, he might be right, I suppose,

510
00:27:22,960 --> 00:27:26,000
Speaker 1: I don't know, but that whereby the inplation can come

511
00:27:26,040 --> 00:27:28,520
Speaker 1: down and all those folks who so often are the

512
00:27:28,520 --> 00:27:31,080
Speaker 1: first ones to take it on the chin are the

513
00:27:31,119 --> 00:27:32,880
Speaker 1: ones that don't have to do it yet again, I think,

514
00:27:32,880 --> 00:27:34,439
Speaker 1: and that that is what he's sort of holding his

515
00:27:34,480 --> 00:27:37,000
Speaker 1: breath on. Spending time with Josh wind Growth here as

516
00:27:37,040 --> 00:27:39,520
Speaker 1: we slide into the new year, and I have to

517
00:27:39,560 --> 00:27:41,720
Speaker 1: ask you about Ukraine. What a performance this week in

518
00:27:41,760 --> 00:27:45,639
Speaker 1: an appearance to historic appearance from President Zelenski speaking to

519
00:27:45,680 --> 00:27:47,600
Speaker 1: a joint session of Congress. Course, he spent most of

520
00:27:47,600 --> 00:27:50,720
Speaker 1: his day with President Biden at the White House, and

521
00:27:50,760 --> 00:27:55,000
Speaker 1: there was one resounding message, Your money is not cheerity.

522
00:27:55,680 --> 00:28:00,119
Speaker 1: It's an investment in the global security, and dumont or

523
00:28:00,160 --> 00:28:03,920
Speaker 1: see that we handle in the most responsible way. So

524
00:28:04,040 --> 00:28:05,960
Speaker 1: in a remaining moment here, Josh, how much of a

525
00:28:06,040 --> 00:28:08,320
Speaker 1: challenge is it going to be for Joe Biden to

526
00:28:08,359 --> 00:28:11,679
Speaker 1: continue the money and the weapons flowing to Ukraine in

527
00:28:11,680 --> 00:28:15,000
Speaker 1: this new Congress? We don't know. There's one challenge that

528
00:28:15,040 --> 00:28:17,560
Speaker 1: he can control or has more control over, and there's

529
00:28:17,560 --> 00:28:20,119
Speaker 1: another he can First just to back up very quickly,

530
00:28:20,280 --> 00:28:22,320
Speaker 1: you know, this is a surprise. It is that Biden

531
00:28:23,000 --> 00:28:26,120
Speaker 1: is seems pretty jazz that he was that that Zelenski

532
00:28:26,240 --> 00:28:27,920
Speaker 1: is here, he seems to have gotten along well with him.

533
00:28:28,160 --> 00:28:31,919
Speaker 1: The takeaway is twofold number one, big standing ovations for Zelenski,

534
00:28:32,359 --> 00:28:35,760
Speaker 1: notable exceptions among top Republicans, or at least prominent Republicans.

535
00:28:35,960 --> 00:28:38,800
Speaker 1: The question is the billion or so that that that

536
00:28:38,960 --> 00:28:41,360
Speaker 1: that the OMNI carved out for Ukraine? Is that the

537
00:28:41,440 --> 00:28:46,360
Speaker 1: last bucket for Ukraine? Will Kevin McCarthy or whoever led

538
00:28:46,480 --> 00:28:49,160
Speaker 1: Republican House allowed another dollar to go at the door

539
00:28:49,360 --> 00:28:53,080
Speaker 1: very unclear. The second thing which got toward Zelenski publicly

540
00:28:53,160 --> 00:28:55,840
Speaker 1: asked for in Congress next to buy him wherever he could,

541
00:28:56,200 --> 00:28:59,880
Speaker 1: you know, shouting from the rooftops was more weaponry, more

542
00:29:00,000 --> 00:29:03,600
Speaker 1: band's weaponry, particularly offensive weaponry, and Biden has been hesitant

543
00:29:03,680 --> 00:29:05,880
Speaker 1: something that's a different story. I want to trigger something,

544
00:29:05,920 --> 00:29:07,920
Speaker 1: so that's real rob will Biden start ratching up the

545
00:29:07,920 --> 00:29:10,160
Speaker 1: type of gear he's willing to send. Lensky's already been

546
00:29:10,200 --> 00:29:12,680
Speaker 1: ratching it up, including the Patriot miss that he announced,

547
00:29:13,200 --> 00:29:16,920
Speaker 1: and will Congress might be a different conversation, different conversation

548
00:29:16,920 --> 00:29:19,520
Speaker 1: he certainly does not seem Keenanity's hinted that he thinks

549
00:29:19,600 --> 00:29:21,440
Speaker 1: NATO's support for the war would fall apart if you

550
00:29:21,480 --> 00:29:23,560
Speaker 1: did it. So, so Biden has his own reservations about

551
00:29:23,560 --> 00:29:26,280
Speaker 1: what to send. Congress has their own reservations about what

552
00:29:26,400 --> 00:29:29,320
Speaker 1: check to right. Those two things, you know, are are

553
00:29:29,400 --> 00:29:31,360
Speaker 1: hanging in the background, But the top line was Joe

554
00:29:31,360 --> 00:29:33,800
Speaker 1: Biden standing there and pledging Ukraine that US will be

555
00:29:33,800 --> 00:29:35,200
Speaker 1: there for them as long as they're in this war.

556
00:29:35,400 --> 00:29:38,320
Speaker 1: Historic moment. Josh wind Grove is the man that Joe

557
00:29:38,360 --> 00:29:40,360
Speaker 1: Biden looked at and said, if I had his voice

558
00:29:40,400 --> 00:29:43,440
Speaker 1: I would have been elected president a lot earlier. Yeah, yeah, great,

559
00:29:43,720 --> 00:29:45,040
Speaker 1: It's great to see what am I doing with my

560
00:29:45,080 --> 00:29:47,400
Speaker 1: life here. Well, you're talking on the radio. Everyone's listening

561
00:29:47,440 --> 00:29:51,120
Speaker 1: to your voice. Happy Holidays, Happy New Year, see twenty three.

562
00:29:51,200 --> 00:29:55,280
Speaker 1: Thank you, Bloomberg White House reporter Josh wind Grove. Amy,

563
00:29:55,680 --> 00:29:58,160
Speaker 1: All right, thank you, Joe. That was Joe Matthew, host

564
00:29:58,160 --> 00:30:00,800
Speaker 1: of Bloomberg Sound On from our Bloomberg Noddy nine one

565
00:30:00,840 --> 00:30:04,080
Speaker 1: news room here in Washington. And you can hear Sound

566
00:30:04,120 --> 00:30:07,200
Speaker 1: On with Joe Matthew weekdays at five pm Wall Street Time.

567
00:30:07,440 --> 00:30:09,920
Speaker 1: And for more political news coverage, you can tune into

568
00:30:09,920 --> 00:30:12,640
Speaker 1: Balance of Power with David weston weekdays at noon Wall

569
00:30:12,640 --> 00:30:15,800
Speaker 1: Street Time. All of that right here on Bloomberg Radio.

570
00:30:16,440 --> 00:30:19,320
Speaker 1: Coming up next on Bloomberg Daybreak Weekend to look at

571
00:30:19,400 --> 00:30:22,800
Speaker 1: market trends to watch out for in China. I'm Amy Morris,

572
00:30:22,840 --> 00:30:47,040
Speaker 1: and this is Bloomberg m This is Bloomberg Daybreak Weekend,

573
00:30:47,080 --> 00:30:50,280
Speaker 1: our global look ahead at the top stories for investors

574
00:30:50,320 --> 00:30:53,760
Speaker 1: in the coming week. I'm Amy Morris in Washington. COVID

575
00:30:53,960 --> 00:30:57,840
Speaker 1: is still very much hanging over China. Bloomberg Daybreak Asia

576
00:30:57,880 --> 00:31:00,600
Speaker 1: host Brian Curtis keeping track of all of it for US,

577
00:31:00,640 --> 00:31:04,280
Speaker 1: Brian Amy, China is reopening and Hong Kong is trying

578
00:31:04,320 --> 00:31:07,880
Speaker 1: to rest back the mantle of Asia's world city. As

579
00:31:07,880 --> 00:31:10,920
Speaker 1: a result, we're curious what new trends we might see

580
00:31:10,920 --> 00:31:14,360
Speaker 1: in markets in twenty twenty three for Hong Kong and

581
00:31:14,520 --> 00:31:18,280
Speaker 1: China joining US now, is Sofia Orte Costa, Bloomberg's chief

582
00:31:18,360 --> 00:31:22,800
Speaker 1: China Markets correspondent Sofia After a couple of very tough

583
00:31:22,920 --> 00:31:26,280
Speaker 1: years for these two markets, might we see better market

584
00:31:26,280 --> 00:31:29,760
Speaker 1: conditions in three? I think the living with COVID story

585
00:31:30,120 --> 00:31:32,840
Speaker 1: UM is the biggest theme going into next year. You know,

586
00:31:32,920 --> 00:31:35,040
Speaker 1: there's still a lot of questions over whether this is

587
00:31:35,080 --> 00:31:38,160
Speaker 1: reckless or not. Some people are calling it the big

588
00:31:38,360 --> 00:31:41,200
Speaker 1: U turn, but it's been so dramatic for China, it's

589
00:31:41,280 --> 00:31:45,160
Speaker 1: perhaps the big V turn on COVID zero. So UM.

590
00:31:45,360 --> 00:31:48,640
Speaker 1: The key thing here is data. You know, will China's

591
00:31:48,680 --> 00:31:53,120
Speaker 1: reopening be positive or negative on the economy? Will it

592
00:31:53,160 --> 00:31:55,560
Speaker 1: be good or bad for consumption? Is they're going to

593
00:31:55,600 --> 00:31:59,400
Speaker 1: be short term gain, short term pain, um for longer

594
00:31:59,520 --> 00:32:03,280
Speaker 1: term gain in terms of growth and also for the

595
00:32:03,320 --> 00:32:05,640
Speaker 1: rest of the world. You know, is it inflationary or

596
00:32:05,680 --> 00:32:09,200
Speaker 1: will it actually lead to deflation, So it will be

597
00:32:09,720 --> 00:32:12,200
Speaker 1: harder actually to track the effect of the outbreak on

598
00:32:12,280 --> 00:32:16,760
Speaker 1: China's economy because actually China releases after releasing December data,

599
00:32:17,200 --> 00:32:21,360
Speaker 1: it only then releases combined January and February data in March,

600
00:32:21,520 --> 00:32:24,080
Speaker 1: So it will be a while before we get any

601
00:32:24,160 --> 00:32:27,200
Speaker 1: kind of real sense of on the ground impact from this.

602
00:32:27,640 --> 00:32:30,160
Speaker 1: Do we have a sense that markets will get well

603
00:32:30,200 --> 00:32:34,640
Speaker 1: out in front of the economy or because the reopening

604
00:32:34,640 --> 00:32:38,480
Speaker 1: has been so uneven so far, will investors really wait

605
00:32:38,600 --> 00:32:41,080
Speaker 1: until they see the proof in the pudding. Investors have

606
00:32:41,200 --> 00:32:44,280
Speaker 1: kind of priced in the first leg of the reopening

607
00:32:44,320 --> 00:32:47,719
Speaker 1: story um at some some cull side analysts saying that

608
00:32:47,920 --> 00:32:52,560
Speaker 1: about forty has been priced in. I mean, also, Brian,

609
00:32:52,640 --> 00:32:56,720
Speaker 1: let's not forget the huge outflows that Chinese assets had

610
00:32:56,880 --> 00:33:01,560
Speaker 1: in It really didn't take much um to move to

611
00:33:01,680 --> 00:33:03,520
Speaker 1: move the needle when it came to markets, you know,

612
00:33:03,600 --> 00:33:06,920
Speaker 1: you only had to revert to the mean. Is already

613
00:33:07,080 --> 00:33:12,120
Speaker 1: a gain for for Chinese stocks. I'm curious whether investors

614
00:33:12,160 --> 00:33:15,800
Speaker 1: think the Party has done a flip flop on market

615
00:33:15,840 --> 00:33:20,680
Speaker 1: friendly and business friendly policies going forward and changing from

616
00:33:20,760 --> 00:33:23,680
Speaker 1: what used to be pretty restrictive policy over the past

617
00:33:23,800 --> 00:33:27,080
Speaker 1: eighteen to twenty four months. It's been perhaps the biggest

618
00:33:27,120 --> 00:33:31,320
Speaker 1: surprise um and in this year is the policy environments

619
00:33:31,360 --> 00:33:36,200
Speaker 1: turning really more friendly for for China China investing. We

620
00:33:36,280 --> 00:33:39,120
Speaker 1: tend to think that China cares cares more about the

621
00:33:39,160 --> 00:33:42,240
Speaker 1: economy than it does about markets, and now it's all

622
00:33:42,280 --> 00:33:46,280
Speaker 1: about creating a better environment and market confidence. Really taking

623
00:33:46,680 --> 00:33:49,840
Speaker 1: sense of stage, this is highly unusual. The last time

624
00:33:49,920 --> 00:33:52,520
Speaker 1: we heard any kind of wording around this was in

625
00:33:53,280 --> 00:33:57,880
Speaker 1: eighteen when the trade war was really hammering confidence in

626
00:33:57,960 --> 00:34:01,280
Speaker 1: Chinese markets. So what's that means? We still don't know.

627
00:34:01,720 --> 00:34:04,720
Speaker 1: Um A lot of support for a private enterprise seems

628
00:34:04,760 --> 00:34:09,560
Speaker 1: to be the focus. Also refinancing help for private developers.

629
00:34:09,920 --> 00:34:12,920
Speaker 1: You know, we're seeing a revival in in in financing

630
00:34:12,920 --> 00:34:16,640
Speaker 1: efforts for property companies. That is extremely different and a

631
00:34:16,719 --> 00:34:19,399
Speaker 1: complete one eighty to what to the trends we've seen

632
00:34:19,440 --> 00:34:21,959
Speaker 1: in in the past two years, Is there one big

633
00:34:22,000 --> 00:34:25,040
Speaker 1: mega trend we can identify for next year? One big

634
00:34:25,080 --> 00:34:29,719
Speaker 1: mega trend? I mean beyond the reopening story, um is,

635
00:34:30,000 --> 00:34:33,960
Speaker 1: I think decoupling, whether that's still a thing. Every single

636
00:34:34,640 --> 00:34:39,000
Speaker 1: geopolitical analyst was talking about that and freendch shoring whether

637
00:34:39,080 --> 00:34:42,600
Speaker 1: that's whether people are moving out of China and whether

638
00:34:42,840 --> 00:34:46,960
Speaker 1: you know, China really showing itself as a more friendly

639
00:34:47,000 --> 00:34:50,319
Speaker 1: actor in the global stage. We seem to get we

640
00:34:50,360 --> 00:34:53,080
Speaker 1: seem to be getting um some evidence of that now.

641
00:34:53,600 --> 00:34:58,400
Speaker 1: So is China aligning itself less with other actors like

642
00:34:58,400 --> 00:35:01,399
Speaker 1: like Russia and moving close to the West. That would

643
00:35:01,440 --> 00:35:05,360
Speaker 1: be a hugely positive development when it comes to investing

644
00:35:05,400 --> 00:35:09,720
Speaker 1: in China. Sophia, thanks so much. Always enjoy your insight.

645
00:35:09,840 --> 00:35:14,760
Speaker 1: Sophia Orte Costa, Bloomberg's chief China Markets correspondent. I'm Brian Curtis,

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Speaker 1: along with Doug Krisner. You can catch us every weekday

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Speaker 1: here for Bloomberg Daybreak Asia, beginning at seven am in

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Speaker 1: Hong Kong and six pm on Wall Street. Amy all right,

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Speaker 1: thank you, Brian, and that does it for this edition

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Speaker 1: of Bloomberg Daybreak Weekend. Join us again Monday morning at

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Speaker 1: five am Wall Street time, where the latest on markets

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Speaker 1: overseas and the news you being to start your day.

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Speaker 1: I'm Amy Morris. This is Bloomberg