WEBVTT - Bloomberg Daybreak Weekend: Fed, DeSantis, China EVs 0:00:02.040 --> 0:00:04.960 This is Bloomberg Daybreak Weekend or Global look at the 0:00:05.040 --> 0:00:07.200 top stories in the coming week from our day break 0:00:07.240 --> 0:00:09.760 anchors all around the world, and just to have on 0:00:09.800 --> 0:00:13.400 the program some insight into what the Reserve officials are 0:00:13.520 --> 0:00:15.840 really thinking. I'm John Tucker in New York. 0:00:16.200 --> 0:00:18.720 I'm Kaylee Lyones in Washington, where we're looking ahead to 0:00:18.760 --> 0:00:21.840 Tim Scott and Ron De Santis entering the presidential race. 0:00:22.200 --> 0:00:24.800 I'm Brian Curtis in Hong Kong. What might we learn 0:00:24.840 --> 0:00:28.920 about China's ev market through the prism of X Punk's earnings. 0:00:29.560 --> 0:00:31.920 I'm callin Heppy here in London. We're looking ahead to 0:00:32.040 --> 0:00:34.839 Bloomberg's cut our Economic forum in Doha. 0:00:35.479 --> 0:00:38.720 That's all straight ahead on Bloomberg day Break Weekend on 0:00:38.880 --> 0:00:42.000 Bloomberg Eleve them three O New York, Bloomberg ninety nine 0:00:42.000 --> 0:00:45.400 to one, Washington, d C, Bloomberg one O six one, Boston, 0:00:45.440 --> 0:00:50.240 Bloomberg nine sixty, San Francisco DAB, Digital Radio London, Sirius 0:00:50.400 --> 0:00:53.640 XM one nineteen and around the world on Bloomberg Radio 0:00:53.720 --> 0:00:56.000 dot com and via the Bloomberg Business App. 0:01:00.240 --> 0:01:02.840 Hi, everybody, I'm John Tucker. Let's start today's program with 0:01:02.880 --> 0:01:05.080 a federal Reserve Board, the US Center Bank will be 0:01:05.280 --> 0:01:08.800 releasing minutes of its last policy setting meeting, and for 0:01:08.880 --> 0:01:12.520 a look at that and more insight into everything to 0:01:12.560 --> 0:01:16.760 do with monetary policy. We're joined now by Bluebird's Mike McKee. 0:01:16.800 --> 0:01:20.720 I hope that captured everybody's attention there, Michael. But anyway, 0:01:21.160 --> 0:01:23.160 what are we expecting. 0:01:23.680 --> 0:01:25.479 Well, this is gonna be a little bit different minutes, 0:01:25.480 --> 0:01:27.959 and it may be a little bit more important. Usually 0:01:28.000 --> 0:01:30.560 we're pointing out that the minutes come out three weeks 0:01:30.600 --> 0:01:33.959 after a decision, and a lot changes in those three weeks, 0:01:33.959 --> 0:01:36.840 and Fed officials may have changed their views. But in 0:01:36.840 --> 0:01:39.759 this case, it doesn't look like much has changed. Inflation 0:01:40.200 --> 0:01:43.240 has come down just a little bit, but it's starting 0:01:43.280 --> 0:01:47.600 to slow at the rate of descent. Unemployment is still 0:01:47.840 --> 0:01:51.960 very very low, at a like forty to fifty year 0:01:53.000 --> 0:01:57.160 record low, and so the conditions are still about the same, 0:01:57.320 --> 0:01:59.920 which raises the question of is the Fed going to 0:02:00.120 --> 0:02:04.320 pause when it gets to June? And at this point 0:02:04.440 --> 0:02:07.120 the minutes may give us a real insight into a 0:02:07.160 --> 0:02:09.080 lot of their thinking. A lot of them have been 0:02:09.120 --> 0:02:13.240 talking lately and they all say pretty much the same thing. 0:02:13.280 --> 0:02:16.160 We don't want to decide yet because the data haven't 0:02:16.160 --> 0:02:17.960 been decisive and we're data dependent. 0:02:18.040 --> 0:02:19.880 Well, let me ask you that is really every It 0:02:20.080 --> 0:02:23.480 sounded to me like not everybody is on the same 0:02:23.600 --> 0:02:26.280 page at the Federal Reserve, and I'll harken back to 0:02:26.520 --> 0:02:30.359 Alan Greenspan, who seemed to rule the Federal Reserve with 0:02:30.440 --> 0:02:34.160 an iron fist. Everybody was on the same page. They 0:02:34.280 --> 0:02:36.639 better be or they were going to get slapped down 0:02:36.680 --> 0:02:37.320 by the chairman. 0:02:37.880 --> 0:02:41.000 Well that doesn't happen anymore. There's a little bit more 0:02:41.080 --> 0:02:47.880 democracy on the Fed board. But the overall impression you 0:02:47.960 --> 0:02:51.120 get is that some people are leaning towards a pause 0:02:51.240 --> 0:02:54.400 because they've gone up five hundred and twenty five basis 0:02:54.400 --> 0:02:57.160 points in the last year, and at some point you 0:02:57.280 --> 0:03:00.680 start to risk a recession. But they are all emphasize 0:03:00.680 --> 0:03:03.919 that they are very much locked on the idea of 0:03:04.040 --> 0:03:08.440 bringing down inflation, and inflation if it doesn't start to 0:03:08.560 --> 0:03:14.000 really drop soon could get them to continue raising rates 0:03:14.040 --> 0:03:16.720 at least one more time. And we have another CPI 0:03:16.840 --> 0:03:20.200 report and a PCEE inflation report before their meeting, So 0:03:20.440 --> 0:03:23.200 at this point people are going to be looking at 0:03:23.240 --> 0:03:26.600 the minutes to see what it is they are focused on, 0:03:26.680 --> 0:03:30.679 whether they think that the outlook for inflation is going 0:03:30.720 --> 0:03:33.760 to slow, or if they think the outlook for inflation 0:03:33.919 --> 0:03:36.640 is very mixed and maybe they need a little insurance. 0:03:36.960 --> 0:03:41.160 I found this quote from the late German economist Rudy Dormbusch. 0:03:41.280 --> 0:03:43.720 I think, you know it. Things take longer to happen 0:03:43.760 --> 0:03:47.120 than you think in economics than they will, and then 0:03:47.160 --> 0:03:50.560 they happen faster than you thought they could. So my 0:03:50.680 --> 0:03:55.080 question is when things turn. Are they turning in terms 0:03:55.120 --> 0:03:58.960 of the inflation front for the Federal Reserve? And when 0:03:59.000 --> 0:04:02.000 they turn? Today happened really fast. I mean, we've been 0:04:02.040 --> 0:04:06.600 waiting for these whatever long and variable lags, seems like forever. 0:04:08.280 --> 0:04:12.200 It's probably not going to barring some sort of outside shock, 0:04:13.560 --> 0:04:16.240 something with oil or energy, or the war in Ukraine 0:04:16.320 --> 0:04:19.160 or something like that. It's probably going to be a 0:04:19.200 --> 0:04:24.200 more gradual turn. Unemployment will start to go up. If 0:04:24.200 --> 0:04:29.359 it does slowly, then it could jump in a couple 0:04:29.360 --> 0:04:32.880 of months. But at this point the Fed is not 0:04:33.000 --> 0:04:35.880 expecting that to happen, so it's not going to be 0:04:36.839 --> 0:04:40.840 what their focus is in terms of short term economic policy. 0:04:40.880 --> 0:04:43.080 And even if it does go up. I talked to 0:04:43.200 --> 0:04:45.600 a number of them at the Atlanta Fed conference this 0:04:45.640 --> 0:04:48.120 past week, and they all said, we're not going to 0:04:48.880 --> 0:04:52.680 lower rates if unemployment starts to rise because we still 0:04:52.720 --> 0:04:56.800 need to bring inflation down. Now, inflation could start to 0:04:56.839 --> 0:05:00.400 fall relatively quickly because we've been waiting for over a 0:05:00.520 --> 0:05:05.320 year for dropping rents to bring down housing prices in 0:05:05.520 --> 0:05:09.320 the CPI and the PCE, and that hasn't really happened yet, 0:05:09.320 --> 0:05:11.520 but there are signals that could start happening, So we 0:05:11.560 --> 0:05:16.599 could see a relatively quick drop in overall inflation if 0:05:16.680 --> 0:05:20.039 that starts to happen. But again, FED wants to make 0:05:20.080 --> 0:05:23.640 sure that inflation is on its way down, so they're 0:05:23.680 --> 0:05:25.000 not going to be quick to move on it. 0:05:25.200 --> 0:05:28.160 All right, If you look at the market betting market participants, 0:05:28.279 --> 0:05:31.880 they're betting that they're going to be not just a 0:05:32.080 --> 0:05:35.279 pause at the Fed's meeting in June, but they're also 0:05:35.440 --> 0:05:38.479 betting that they're going to be actual interest rate counts 0:05:38.600 --> 0:05:42.279 by the Federal Reserve this year. Why is there such 0:05:42.320 --> 0:05:46.680 a disconnect, it seems, between what the market participants are 0:05:46.720 --> 0:05:50.200 thinking and what the Federal Reserve officials are actually saying. 0:05:50.600 --> 0:05:52.720 Well, there seem to be two reasons. One is that 0:05:52.760 --> 0:05:57.559 a lot of participants in the markets are using FED 0:05:57.800 --> 0:06:02.200 fun futures as a hedge in case we had a 0:06:02.279 --> 0:06:07.120 debt ceiling collapse. So that puts some weight on the 0:06:07.160 --> 0:06:11.039 FED cutting rate, Fed having to cut rates if the 0:06:11.160 --> 0:06:14.400 United States defaulted in June, and so that's one reason 0:06:14.440 --> 0:06:16.960 that we've seen some movement. The other is that there 0:06:17.080 --> 0:06:19.960 is a feeling in the markets perhaps that the FED 0:06:20.320 --> 0:06:24.360 is going to see inflation coming down quickly and cut rates, 0:06:25.000 --> 0:06:27.799 and the Fed's view is we're going to see inflation 0:06:27.920 --> 0:06:32.200 come down quickly and not cut rates. But that's going 0:06:32.240 --> 0:06:34.600 to be a face off for the coming months between 0:06:34.600 --> 0:06:35.719 the markets and the Fed. 0:06:36.040 --> 0:06:39.360 The FED has this dual mandate price stability. That's the 0:06:39.400 --> 0:06:42.840 part where you try to keep inflation somewhere near their 0:06:42.880 --> 0:06:46.680 target and the employment part of it. What's the employment 0:06:46.720 --> 0:06:47.880 part doing well. 0:06:47.920 --> 0:06:50.040 The employment part is not doing what the FED thought 0:06:50.040 --> 0:06:52.920 it would be doing. The FED thought, based on what's 0:06:52.920 --> 0:06:55.599 happened in the past, that they raise interest rates and 0:06:55.680 --> 0:06:58.960 businesses don't want to pay higher rates, so they stop investing, 0:07:00.000 --> 0:07:03.840 business goes down, and they end up cutting employees. That 0:07:03.880 --> 0:07:07.640 hasn't happened. This is an unusual situation coming out of 0:07:07.680 --> 0:07:11.800 the pandemic, where companies could not find workers. And again 0:07:12.360 --> 0:07:15.520 at the Atlanta FED conference, the FED people I talked 0:07:15.520 --> 0:07:17.800 to all said that the companies in their districts are 0:07:17.840 --> 0:07:20.320 telling them they're going to hoard workers for now. They're 0:07:20.320 --> 0:07:23.000 not going to let people go right away because it 0:07:23.120 --> 0:07:26.080 was so hard to find them before. So unemployment's been 0:07:26.160 --> 0:07:29.040 very sticky. As I mentioned, it's come down to the 0:07:29.080 --> 0:07:32.040 lowest since nineteen sixty nine at three point four percent, 0:07:32.560 --> 0:07:37.280 and it is it's an open question as to how 0:07:37.360 --> 0:07:38.840 fast that might move. 0:07:39.320 --> 0:07:42.480 Okay, how far away are we from the Fed's goal 0:07:42.560 --> 0:07:45.480 of what is a two percent rate of inflation in 0:07:45.560 --> 0:07:46.480 the United States? 0:07:47.320 --> 0:07:50.280 Well, it's an interesting question because we're a lot closer 0:07:50.280 --> 0:07:52.720 than we were. We're at four point nine percent on 0:07:52.880 --> 0:07:57.120 the CPI and we were at nine. So it's come 0:07:57.200 --> 0:08:02.640 down quickly given the FED restraint. But from here on 0:08:02.840 --> 0:08:05.760 it gets harder to do. We get into categories that 0:08:05.800 --> 0:08:09.160 are more sticky, harder for the FED to effect, and 0:08:09.240 --> 0:08:12.320 so they don't really know how fast it can come down. 0:08:12.400 --> 0:08:15.920 Their latest forecast, which was made at the March meeting, 0:08:16.280 --> 0:08:18.360 was that we would not get to two percent until 0:08:18.360 --> 0:08:21.280 twenty twenty five. We'll see if they change that when 0:08:21.280 --> 0:08:21.760 they get to. 0:08:21.760 --> 0:08:25.400 June is that carved in stone or can they amend that? 0:08:25.840 --> 0:08:29.000 They can amend that, they will amend it. And also 0:08:29.080 --> 0:08:31.520 we have to realize that these forecasts that we always 0:08:31.560 --> 0:08:35.440 talk about, it's not a forecast. I keep getting reminded 0:08:35.440 --> 0:08:40.040 of that by FED people. These are nineteen different outlooks 0:08:40.240 --> 0:08:45.920 for various economic indicators based on what these FED officials 0:08:45.960 --> 0:08:51.040 individually think is the proper monetary policy. So we tend 0:08:51.040 --> 0:08:56.760 to look at the sort of combined number and average 0:08:56.760 --> 0:08:59.040 it out and say this is the FED forecast, and 0:08:59.160 --> 0:09:02.360 it's it's not really a forecast, but it's the closest 0:09:02.360 --> 0:09:04.760 thing we have. So that's how the markets react. 0:09:04.960 --> 0:09:07.800 Well, let's get back to the projection, at least by 0:09:07.840 --> 0:09:12.559 the markets, that there could be rate cuts sometime this year. 0:09:13.000 --> 0:09:16.760 Does that if there were to be, doesn't that strike 0:09:16.840 --> 0:09:19.760 at the heart of the credibility of the Federal Reserve? 0:09:20.559 --> 0:09:23.960 In one turn they're raising rights and then a few 0:09:23.960 --> 0:09:28.600 months later they're cutting. That's like an admission of we 0:09:28.679 --> 0:09:29.200 blew it. 0:09:29.200 --> 0:09:33.840 It could be. But FED funds futures are only one 0:09:34.480 --> 0:09:35.240 small part. 0:09:35.040 --> 0:09:35.520 Of the market. 0:09:35.559 --> 0:09:38.280 It's not a very deep or liquid market. And what 0:09:38.360 --> 0:09:41.600 you also have is things like tip yields, tips shields 0:09:41.679 --> 0:09:46.000 and other inflation break even indicators that suggest the FED 0:09:46.080 --> 0:09:48.720 is going to be bringing down inflation. Inflation is going 0:09:48.760 --> 0:09:51.640 to fall off. So then it just becomes a question 0:09:51.720 --> 0:09:55.720 of does the FED keep rates high because it wants 0:09:55.760 --> 0:09:58.000 to make sure it's going to get to two percent 0:09:58.040 --> 0:10:01.720 and they don't think that will happen until twenty twenty five, 0:10:02.160 --> 0:10:06.400 or do they respond to falling inflation by saying we 0:10:06.480 --> 0:10:09.000 need to cut rates a little bit because otherwise we 0:10:09.080 --> 0:10:13.240 get too restrictive. Real rates will start to go up 0:10:13.280 --> 0:10:16.599 even farther. So at this point, again it's kind of 0:10:16.600 --> 0:10:19.280 an open question, which brings the minutes back into it 0:10:19.320 --> 0:10:22.679 in terms of being something that might actually provide us 0:10:22.720 --> 0:10:25.600 with some guidance on how they're thinking about this. 0:10:26.320 --> 0:10:29.079 As always, Bloomberg's Mike McKeith, thanks very much for stopping, 0:10:29.080 --> 0:10:31.480 but I appreciate it, and just to hend on Bloomberg 0:10:31.559 --> 0:10:36.160 Daybreak Weekend, the Middle Eastern Focus. Final preparations underway for 0:10:36.280 --> 0:10:41.599 Bloomberg's Guitar and Economic Forum. I'm John Tucker. This is Bloomberg. 0:11:01.960 --> 0:11:04.960 This is Bloomberg Daybreak Weekend, our global look ahead at 0:11:04.960 --> 0:11:07.679 the top stories for investors in the coming week. I'm 0:11:07.760 --> 0:11:10.280 John Tucker in New York. Up later in the program 0:11:10.360 --> 0:11:14.720 Florida Governorrohan DeSantis and the race for the Republican presidential nomination. 0:11:15.360 --> 0:11:19.400 But first, Bloomberg's Guitar Economic Forum taking place next week 0:11:19.720 --> 0:11:22.719 with newsmakers from the urgeoning Middle East, and for more, 0:11:22.920 --> 0:11:25.800 let's send to London and bring in Bloomberg Daybreak Europe 0:11:25.880 --> 0:11:27.839 anchor Caroline hepger. 0:11:27.640 --> 0:11:30.880 John Gulf nations like Cutter may be expected to grow 0:11:30.960 --> 0:11:34.040 more slowly in the short term with the oil prices down, 0:11:34.160 --> 0:11:37.720 but their ambition in recent years has soared. Remember Cutter 0:11:37.800 --> 0:11:40.960 hosted the World Cup in twenty twenty two is looking 0:11:41.040 --> 0:11:45.520 now to increase local stock trading to diversify its economy, 0:11:45.559 --> 0:11:48.720 as many other countries in the region are attempting to 0:11:48.760 --> 0:11:53.000 do so. A moment for unique perspectives from business and 0:11:53.040 --> 0:11:56.840 government leaders and Bloomberg anchor and editor at large Francine 0:11:56.880 --> 0:11:59.480 Lackwell will be in Doha force and he joined me 0:11:59.520 --> 0:12:03.640 now today discussed before the big trip. Look, first of all, 0:12:03.679 --> 0:12:06.720 I suppose this is a moment to think about cut 0:12:06.720 --> 0:12:10.239 on its role in the global economy, right, yes. 0:12:10.040 --> 0:12:12.920 And Ei, Caroline, I mean the question is that there 0:12:12.920 --> 0:12:15.480 are so many uncertainties. When it comes to global growth, 0:12:15.520 --> 0:12:18.800 it's of course the US China tensions, it's all the 0:12:18.800 --> 0:12:22.959 supply chain issues, it's inflation, and really China's reopening providing 0:12:23.040 --> 0:12:26.240 this welcome boost to global growth, off setting weakness in Europe, 0:12:26.280 --> 0:12:28.640 but we're not one hundred percent sure how long this lasts, 0:12:28.640 --> 0:12:31.960 and then this lingering recession risk in the US. So 0:12:32.160 --> 0:12:34.520 I think when we go to Doha and Qatar for 0:12:34.640 --> 0:12:37.800 the third annual Qatar Economic Forum, we'll try and take 0:12:37.800 --> 0:12:40.600 stock on what role the Middle East plays into all 0:12:40.640 --> 0:12:43.480 of this, not only geopolitical, of course, these are very 0:12:44.000 --> 0:12:47.760 energy intensive countries because of oil and gas, but really 0:12:47.920 --> 0:12:50.760 how they're capitalizing on this new world So the region's 0:12:50.800 --> 0:12:53.079 sovereign wealth funds, a lot of them, will be their 0:12:53.559 --> 0:12:56.120 flush with oil and gas revenue, and they're really trying 0:12:56.160 --> 0:12:59.120 to compete to fill the three trillion dollar liquidity gap 0:12:59.200 --> 0:13:02.200 left by Wall Street retreat. So if you look at 0:13:02.520 --> 0:13:06.040 you know, the warring World, so on geopolitics, US China 0:13:06.080 --> 0:13:08.840 with Europe somewhere in the middle you know, the Rush 0:13:08.920 --> 0:13:12.560 attentions because of the invasion of Ukraine. The real question 0:13:12.679 --> 0:13:16.079 is how do the oil rich nations behave going forward? 0:13:16.440 --> 0:13:18.160 Do they buy things up. I know there's a lot 0:13:18.160 --> 0:13:22.160 of speculation about, for example, the Katari's getting into British 0:13:22.160 --> 0:13:25.240 football and in general, like what role do they have 0:13:25.280 --> 0:13:27.040 to play in the next five ten years? Where do 0:13:27.120 --> 0:13:29.960 they deploy cash? Where did they see the best opportunities? 0:13:30.080 --> 0:13:33.120 Yeah? Absolutely, I mean look just at the Guitar Investment 0:13:33.160 --> 0:13:36.840 Authority with four hundred and fifty billion dollars in the 0:13:36.920 --> 0:13:40.080 Sovereign Wealth Fund. I mean this is a huge amount 0:13:40.160 --> 0:13:44.640 of money. But as you say, although these GCC and 0:13:44.800 --> 0:13:47.679 Middle Eastern countries are trying to diversify away from oil, 0:13:47.800 --> 0:13:50.800 the energy picture is so important. I mean I remember 0:13:50.800 --> 0:13:53.160 at the beginning of my career the idea of peak 0:13:53.160 --> 0:13:57.160 oil was kind of crack pots, right, And yeah, we 0:13:57.240 --> 0:14:00.440 have come so far since then, and this is the 0:14:00.480 --> 0:14:02.679 big issue, isn't it, the energy transition. 0:14:03.040 --> 0:14:05.120 I mean I've been a lot around so long. I 0:14:05.200 --> 0:14:07.080 used to go jogging. I used to cover Opek that 0:14:07.200 --> 0:14:09.120 was my first job at Bloomberg, and we used to 0:14:09.120 --> 0:14:13.000 go jogging with the Densaudi oil minister and he'd I 0:14:13.000 --> 0:14:15.080 mean he'd say one word and the old price would 0:14:15.080 --> 0:14:16.760 move by four or five dollars. I mean, there were 0:14:16.840 --> 0:14:18.800 kings and the complex has really changed. 0:14:19.480 --> 0:14:22.240 Yeah, and so I suppose they're role in terms of 0:14:22.680 --> 0:14:25.600 the energy picture. Then how do you think people at 0:14:25.600 --> 0:14:28.160 the forum are going to be thinking about this issue? 0:14:28.240 --> 0:14:30.000 So it'll be interesting, and we have a couple of 0:14:30.120 --> 0:14:33.920 energy ministers, including of course the guitar Energy Minister or 0:14:34.080 --> 0:14:38.960 Minister for State Affairs and Energy. He will probably talk 0:14:39.000 --> 0:14:42.040 about the energy trilemma. So this is the idea that 0:14:42.080 --> 0:14:45.080 they need to balance energy and reliability with security, affordability 0:14:45.080 --> 0:14:47.720 and sustainability. Again, this could be a long way off 0:14:47.760 --> 0:14:50.600 given how the price of oil has behaved. We did 0:14:50.640 --> 0:14:53.440 also have this really interesting report yesterday from the International 0:14:53.560 --> 0:14:56.960 Energy Agency, which we'll probably ask the energy ministers about, 0:14:56.960 --> 0:15:00.000 because they said global oil demand climb more strongly than 0:15:00.040 --> 0:15:04.200 previously estimated this year because of the post pandemic rebound 0:15:04.440 --> 0:15:07.960 from China. That beat expectations. But remember the IA we're 0:15:08.000 --> 0:15:10.440 really telling OPEK Plus of course, which Qatar is a 0:15:10.440 --> 0:15:14.040 member of, saying you should not cut production at this point. 0:15:14.080 --> 0:15:17.600 This is a mistake going forward, but if you look 0:15:17.600 --> 0:15:20.080 at the complex, maybe they were right to do so 0:15:20.120 --> 0:15:22.520 because they also had to readjust their demand for last year. 0:15:22.600 --> 0:15:26.400 So again, oil demand never walks in a simple line, 0:15:26.800 --> 0:15:28.600 and so it'll be interesting on the ground, I think 0:15:28.640 --> 0:15:32.120 to get some of the also hopes or fears for 0:15:32.160 --> 0:15:35.920 them to get more gas in Europe through various ways 0:15:36.080 --> 0:15:37.400 because of the invasion in Ukraine. 0:15:37.600 --> 0:15:40.440 Yeah, and also the changing picture in China of course, 0:15:40.480 --> 0:15:44.360 which is moving quite swiftly, has done certainly in the 0:15:44.440 --> 0:15:48.400 last bits of economic data around China's recovery not perhaps 0:15:48.400 --> 0:15:50.840 being as strong as we thought that so many factors. 0:15:51.600 --> 0:15:55.160 The region though, is also a very important in terms 0:15:55.160 --> 0:15:57.320 of demand for plane makers. We know some of the 0:15:57.320 --> 0:15:59.520 big names are going to be out the forum and 0:15:59.600 --> 0:16:02.960 supply chain issues. How does cutoff fits in with that? 0:16:03.520 --> 0:16:05.120 So I have a panel which I'm looking forward to 0:16:05.160 --> 0:16:07.800 with the Qatar Airways chief executive officer and the Boeing 0:16:07.880 --> 0:16:11.480 chief executive officer and now companies like you know, General Electric, 0:16:11.840 --> 0:16:14.440 Nike and Boeing have all had supply issues. So I 0:16:14.440 --> 0:16:16.600 think when we speak to Boeing it'll be one of 0:16:16.600 --> 0:16:18.800 the first times to really sit down after that massive 0:16:18.880 --> 0:16:21.520 order that he got from Ryanair and go through right 0:16:21.600 --> 0:16:24.840 you're getting the orders in. We understand that Katar also 0:16:25.320 --> 0:16:28.120 wants to impose new roots or get new roots because 0:16:28.160 --> 0:16:31.520 travel demand is back a what does that mean for sustainability? 0:16:31.840 --> 0:16:34.200 What does it mean for their green ambitions? But two, 0:16:34.240 --> 0:16:37.520 is Boeing going to see a supply chain issue exacerbated 0:16:37.640 --> 0:16:40.000 because these new orders are going to come through and 0:16:40.040 --> 0:16:42.000 will they be able to deliver on a lot of 0:16:42.040 --> 0:16:45.360 these supply chain issues? So I think again there, you 0:16:45.360 --> 0:16:48.320 know a lot of these big chief executives show up 0:16:48.480 --> 0:16:52.520 because they can get orders from these companies. Right, Katar 0:16:52.640 --> 0:16:56.320 is a very energy intensive country with a lot of 0:16:56.320 --> 0:16:58.880 money to spend, so the envy really of a lot 0:16:58.880 --> 0:17:01.960 of our G seven country And I think he'll probably 0:17:01.960 --> 0:17:05.160 speak quite candidly about how many orders they can get 0:17:05.240 --> 0:17:08.480 and how much they can deliver, and it'll be interesting 0:17:08.480 --> 0:17:11.520 to get his thoughts on how we change the way 0:17:11.680 --> 0:17:12.520 that we travel. 0:17:12.680 --> 0:17:16.760 Yeah, definitely. And then there are some other major chief 0:17:16.800 --> 0:17:19.920 executives that we have to think about and speaking to Bloomberg, 0:17:20.240 --> 0:17:22.879 one of whom, of course is the boss of TikTok. 0:17:23.040 --> 0:17:24.840 At a very pivotal moment. 0:17:24.840 --> 0:17:26.720 I'm so excited Caroline heid Is sitting down at the 0:17:26.800 --> 0:17:30.240 chief executive TikTok and this really has everything. It has, 0:17:30.320 --> 0:17:32.560 you know, the youth wanting to be on TikTok and 0:17:32.720 --> 0:17:35.679 has like the lawmakers in the US saying, how do 0:17:35.720 --> 0:17:38.399 we regulated. If we stamp it down completely, maybe we 0:17:38.480 --> 0:17:41.680 lose voters because people are so addicted to the product. 0:17:42.560 --> 0:17:45.240 One of TikTok's most senior officials in charge of ensuring 0:17:45.320 --> 0:17:49.119 safety also had left the company just a couple of 0:17:49.280 --> 0:17:51.479 months ago, and he's been one of the most prominent 0:17:51.480 --> 0:17:55.040 officials in this all out effort to convince skeptical lawmakers 0:17:55.040 --> 0:17:57.320 and policymakers that the app is safe in the US. 0:17:57.800 --> 0:18:00.680 So it'll be interesting to hear firsthand from the executive 0:18:00.720 --> 0:18:04.960 about what he's doing to speak to US lawmakers. Sometimes 0:18:05.000 --> 0:18:08.200 they don't speak, you know, with the same words. And again, 0:18:08.280 --> 0:18:10.679 Katar will be pivotal for that because we know that 0:18:10.720 --> 0:18:13.560 they're also helping Elon Musk for example on Twitter, so 0:18:13.760 --> 0:18:16.760 they're you know, they invest a lot in tech across 0:18:16.760 --> 0:18:19.200 the world and also in China. 0:18:19.680 --> 0:18:21.359 Yeah, and I think maybe it's not even just the 0:18:21.480 --> 0:18:24.880 US conversation. The European conversation is so important. UK lawmakers. 0:18:25.080 --> 0:18:27.840 They know I've got an or in this also. I mean, 0:18:27.880 --> 0:18:30.520 we had the gym Sharks CEO speaking to Bimberg Radio 0:18:30.520 --> 0:18:33.880 and TV just this week, a kind of he's one 0:18:33.880 --> 0:18:36.840 of the youngest billionaires in the UK, and he's built 0:18:36.880 --> 0:18:40.560 the business largely around these social media channels, including TikTok. So, yeah, 0:18:40.560 --> 0:18:42.359 it was kind of interesting to say, Tim, what happens 0:18:42.359 --> 0:18:45.480 if TikTok were to disappear, let's say, not totally out 0:18:45.480 --> 0:18:47.439 of the realms of possibility. 0:18:46.840 --> 0:18:50.160 And also what happens with AI and that transforms right, 0:18:50.200 --> 0:18:53.199 everything that we're seeing with with our social media channels. 0:18:53.240 --> 0:18:56.520 So what if the algorithm changes, even if lawmakers don't 0:18:56.520 --> 0:18:59.359 step in and stomp it out completely. I don't know 0:18:59.359 --> 0:19:01.200 how you find me if you have a personal friend 0:19:01.240 --> 0:19:03.040 like chat, GPT that you can just ask things. Do 0:19:03.080 --> 0:19:05.120 you spend less time on social media? And so many 0:19:05.200 --> 0:19:06.639 questions that we're going to try to get to the 0:19:06.640 --> 0:19:07.080 bottom of. 0:19:07.200 --> 0:19:10.359 Yeah, absolutely, and other big interviews that we have to 0:19:10.400 --> 0:19:13.680 watch out for them, thinking about the run down next 0:19:13.680 --> 0:19:15.199 week and the big names. 0:19:15.680 --> 0:19:16.520 It's eclectic. 0:19:16.760 --> 0:19:20.400 We like an eclectic forum. So we're speaking to Steve Schwartzman. 0:19:20.520 --> 0:19:23.040 He's the chairman, chief executive officer and founder of Blackstone. 0:19:23.320 --> 0:19:26.400 The other one that really caught my eyes general portray 0:19:26.520 --> 0:19:29.080 us now he's a KKR, but of course he was 0:19:29.359 --> 0:19:32.240 one of the most important generals for the US will 0:19:32.280 --> 0:19:34.119 be interesting to talk to him about foreign policy and 0:19:34.200 --> 0:19:37.240 national security. And then I have a third one Steve Munuchin, 0:19:37.800 --> 0:19:41.240 again a critical he was Treasury secretary under Donald Trump. 0:19:41.359 --> 0:19:44.800 He'll be critical, critical in trying to understand where he 0:19:44.880 --> 0:19:47.720 thinks the US debt scene. Conversation is going. 0:19:47.560 --> 0:19:49.879 Okay, Frosine, I wish you luck. I hope you have 0:19:49.920 --> 0:19:53.600 a fantastic trip. Lots of reporting for us on Bloomberg Radio. 0:19:53.760 --> 0:19:56.600 Report pack great. I'm going to beg for some live 0:19:56.680 --> 0:20:00.879 interviews in amidst all of these high level interviews that 0:20:00.880 --> 0:20:03.000 you're going to be doing. My thanks to Farci lackw 0:20:03.119 --> 0:20:06.320 of course, Bloomberg anchor and editor at large. I'm Caroline 0:20:06.320 --> 0:20:08.720 Hepge Here in London. You can catch us every weekday 0:20:08.760 --> 0:20:11.520 morning for Bloomberg Daybreak. You at beginning at six am 0:20:11.600 --> 0:20:13.680 in London. That's one am on Wall Street. 0:20:13.720 --> 0:20:16.440 John, Caroline, thanks a lot, just to hit on Bloomberg 0:20:16.520 --> 0:20:19.920 day Break weekend the race for the GOP presidential nomination. 0:20:20.280 --> 0:20:23.119 I'm John Tucker. This is Bloomberg. 0:20:26.920 --> 0:20:30.680 Broadcasting live from the Bloomberg it a active Brokers studio 0:20:30.800 --> 0:20:33.680 in New York. Bloomberg eleven three to oh to Washington, 0:20:33.760 --> 0:20:37.080 d C, Bloomberg ninety nine one to Boston, Bloomberg one 0:20:37.119 --> 0:20:40.359 O six one to San Francisco, Bloomberg nine sixteen to 0:20:40.440 --> 0:20:44.200 the country, Serrius XM Channel one nineteen to London DAB 0:20:44.480 --> 0:20:47.760 digital radio, and around the globe the Bloomberg Business app 0:20:47.840 --> 0:20:52.120 in Bloomberg Radio dot Com. This is Bloomberg Daybreak Weekend. 0:20:57.800 --> 0:21:00.200 I'm John Tucker in New York with your global Okay 0:21:00.200 --> 0:21:02.640 Ahead at the Tom Stories for investors in the coming week, 0:21:02.680 --> 0:21:05.120 a lot of talk about Florida Governor Ron DeSantis throwing 0:21:05.160 --> 0:21:07.240 his hat in the ring for the GOP nomination for 0:21:07.280 --> 0:21:10.680 president and for more on what DeSantis candidacy means for 0:21:10.720 --> 0:21:13.240 the GOP. Let's end to our Bloomberg ninety nine one 0:21:13.280 --> 0:21:17.040 newsroom in Washington and sound on co host Kaylee Lines. 0:21:17.160 --> 0:21:19.800 Kaylee, thank you, John. Yeah, We're gearing up for go time. 0:21:19.880 --> 0:21:23.040 Watching closely this coming week when Governor DeSantis will have 0:21:23.160 --> 0:21:26.840 multiple events and it's not just him either. Senator Tim Scott, 0:21:26.880 --> 0:21:29.680 the Republican from South Carolina, has a big one too. 0:21:30.200 --> 0:21:32.440 Joining me now to talk more about this is Nancy Cook, 0:21:32.480 --> 0:21:35.119 one of our national politics reporters who covers all things 0:21:35.160 --> 0:21:38.880 twenty twenty four for us. So, Nancy, let's start with DeSantis. 0:21:38.920 --> 0:21:41.800 It's a moment we've seen coming for a long time, 0:21:42.000 --> 0:21:45.000 him finally officially throwing his hat in the ring. I 0:21:45.040 --> 0:21:47.560 know you'll be making the trip down to Florida this 0:21:47.640 --> 0:21:50.800 coming week, So what exactly are we expecting is going 0:21:50.840 --> 0:21:51.320 to happen? 0:21:51.520 --> 0:21:55.240