1 00:00:02,960 --> 00:00:08,280 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:11,200 --> 00:00:13,600 Speaker 2: This is Bloomberg day Break Weekend, our global look at 3 00:00:13,600 --> 00:00:15,520 Speaker 2: the top stories in the coming week from our day 4 00:00:15,520 --> 00:00:18,600 Speaker 2: Break anchors all around the world. Straight Ahead on the program, 5 00:00:18,640 --> 00:00:21,360 Speaker 2: we look to the October jobs Report in the US, 6 00:00:21,680 --> 00:00:24,959 Speaker 2: along with some big name tech earnings. I'm Tom Busby 7 00:00:25,079 --> 00:00:25,680 Speaker 2: in New York. 8 00:00:26,000 --> 00:00:28,200 Speaker 1: I'm Caroline Heppi here in London, where we're shining a 9 00:00:28,280 --> 00:00:32,680 Speaker 1: light on equity and equality in the UK's financial services sector. 10 00:00:33,320 --> 00:00:35,640 Speaker 3: I'm dek Krisner looking ahead to the next meeting of 11 00:00:35,680 --> 00:00:38,720 Speaker 3: the Bank of Japan as well as the Fintech Summit 12 00:00:38,760 --> 00:00:39,479 Speaker 3: in Hong Kong. 13 00:00:45,200 --> 00:00:49,400 Speaker 4: That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 14 00:00:49,440 --> 00:00:53,360 Speaker 4: eleven three, on New York, Bloomberg ninety nine to one, Washington, DC, 15 00:00:53,760 --> 00:00:58,640 Speaker 4: Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Sirius 16 00:00:58,800 --> 00:01:02,160 Speaker 4: XM one twenty one, and around the world on Bloomberg Radio, 17 00:01:02,240 --> 00:01:05,600 Speaker 4: dot Com and The Bloomberg Business. 18 00:01:08,600 --> 00:01:09,160 Speaker 5: Good day to you. 19 00:01:09,240 --> 00:01:11,480 Speaker 2: I'm Tom Busby, and we begin today's program with the 20 00:01:11,520 --> 00:01:15,360 Speaker 2: October jobs Report. We get non farm payroll numbers this 21 00:01:15,520 --> 00:01:18,679 Speaker 2: coming Friday, eight thirty am Wall Street Time and for 22 00:01:18,800 --> 00:01:21,520 Speaker 2: more on what to expect and how this could impact 23 00:01:21,520 --> 00:01:25,839 Speaker 2: FED policy. We're joined by Michael McKee, Bloomberg International Economics 24 00:01:25,880 --> 00:01:30,120 Speaker 2: and Policy correspondent, Well Michael. The first of November, just 25 00:01:30,240 --> 00:01:34,039 Speaker 2: days before a contentious presidential election and a Federal Reserve 26 00:01:34,120 --> 00:01:37,399 Speaker 2: policy meeting, we get the October jobs report. What are 27 00:01:37,400 --> 00:01:38,480 Speaker 2: you expecting to see? 28 00:01:39,240 --> 00:01:44,640 Speaker 5: I don't know. I realized that that's not a satisfactory answer. 29 00:01:44,680 --> 00:01:47,840 Speaker 5: Here's the problem is, we've had the two hurricanes, and 30 00:01:48,120 --> 00:01:51,400 Speaker 5: we've had the Boeing strike ongoing, and the longer that 31 00:01:51,440 --> 00:01:55,160 Speaker 5: goes than suppliers to Boeing have to lay off people 32 00:01:55,240 --> 00:01:57,520 Speaker 5: because they're not buying their parts and things like that. 33 00:01:57,640 --> 00:02:01,160 Speaker 5: So there's some real unknowns of where this is going 34 00:02:01,240 --> 00:02:04,760 Speaker 5: to come down. And the distribution of forecasts so far 35 00:02:04,920 --> 00:02:08,680 Speaker 5: is very very wide, all the way from about zero 36 00:02:09,480 --> 00:02:12,000 Speaker 5: and there it's possible we could get a negative number 37 00:02:12,040 --> 00:02:14,400 Speaker 5: all the way up to another surprise like we got 38 00:02:14,520 --> 00:02:17,839 Speaker 5: last month over two hundred thousand. So it's really hard 39 00:02:17,840 --> 00:02:20,960 Speaker 5: to tell what's going to happen. Now. The Fed is 40 00:02:21,000 --> 00:02:25,320 Speaker 5: going to look past all of that external impacts on 41 00:02:25,400 --> 00:02:28,079 Speaker 5: the economy and they'll focus on the unemployment rate, which 42 00:02:28,080 --> 00:02:32,880 Speaker 5: would not be affected by the hurricanes or the strike, 43 00:02:33,400 --> 00:02:35,400 Speaker 5: and as long as that doesn't move too much, it 44 00:02:36,280 --> 00:02:39,640 Speaker 5: won't really impact what the FED thinks about the economy. 45 00:02:40,360 --> 00:02:45,119 Speaker 5: But certainly a headline that says zero jobs created or 46 00:02:45,720 --> 00:02:50,640 Speaker 5: two hundred and fifty thousand jobs created might influence some voters. 47 00:02:51,240 --> 00:02:54,160 Speaker 2: So the unemployment rate expected to hold steady no matter what. 48 00:02:54,280 --> 00:02:58,320 Speaker 2: Four point one percent. Let's talk about that varying number. 49 00:02:58,520 --> 00:03:02,919 Speaker 2: Because the hurricanes were Stating and Helene the really bad 50 00:03:02,960 --> 00:03:05,560 Speaker 2: one North Carolina that was actually in September, so it'll 51 00:03:05,639 --> 00:03:09,560 Speaker 2: really show up in the numbers here because the survey 52 00:03:09,680 --> 00:03:11,680 Speaker 2: ends mid October, right for all. 53 00:03:11,560 --> 00:03:17,320 Speaker 5: These Yeah, we didn't see a huge effect for September. 54 00:03:18,400 --> 00:03:20,160 Speaker 5: It was at the end of the month, so it 55 00:03:20,240 --> 00:03:23,640 Speaker 5: depends on how fast people got back to work. Which 56 00:03:23,680 --> 00:03:26,480 Speaker 5: is one of the issues with this is we don't 57 00:03:26,520 --> 00:03:28,240 Speaker 5: really have a good handle on it. Part of the 58 00:03:28,240 --> 00:03:31,799 Speaker 5: problem is all the damage in the Appalachians, in East 59 00:03:31,800 --> 00:03:36,360 Speaker 5: Tennessee and western North Carolina were for the most part, 60 00:03:36,400 --> 00:03:41,640 Speaker 5: in areas that are not heavily populated, and economists try 61 00:03:41,640 --> 00:03:44,240 Speaker 5: to go back and look at the impact of hurricanes 62 00:03:45,320 --> 00:03:48,960 Speaker 5: that have come before, but the ones we've seen in 63 00:03:49,200 --> 00:03:53,240 Speaker 5: recent years have been things like Harvey and Houston. Well, 64 00:03:53,240 --> 00:03:57,080 Speaker 5: that's a very populated area, and so maybe more people 65 00:03:57,120 --> 00:04:00,360 Speaker 5: were out of work for a while. In this case, 66 00:04:00,760 --> 00:04:05,560 Speaker 5: this was also much more destructive. Harvey flooded a lot, 67 00:04:06,360 --> 00:04:10,400 Speaker 5: but this wiped out entire towns. We've all seen the pictures, 68 00:04:10,680 --> 00:04:13,520 Speaker 5: and so those are jobs that may never come back. 69 00:04:14,200 --> 00:04:16,960 Speaker 5: And how do you count that. I mean, it's really 70 00:04:17,200 --> 00:04:20,880 Speaker 5: a rough model of how many people might live in 71 00:04:20,880 --> 00:04:23,000 Speaker 5: the area and have jobs. So it's going to be 72 00:04:23,080 --> 00:04:28,599 Speaker 5: really hard to know whether this is a huge impact 73 00:04:28,600 --> 00:04:32,240 Speaker 5: event or not. The BLS should tell us what it 74 00:04:32,400 --> 00:04:34,240 Speaker 5: thinks the impact was. 75 00:04:34,760 --> 00:04:37,640 Speaker 2: On the other hand, we have seen a bit of 76 00:04:37,640 --> 00:04:42,039 Speaker 2: an upside surprise in weekly jobless claims since that hurricane 77 00:04:42,080 --> 00:04:44,560 Speaker 2: correct the more destructive of the two. 78 00:04:44,720 --> 00:04:48,320 Speaker 5: Well, we've seen it. We saw an immediate bump, and 79 00:04:48,360 --> 00:04:51,560 Speaker 5: then in the last week it came down, but the 80 00:04:51,839 --> 00:04:54,920 Speaker 5: continuing claims have remained elevated, gone up a little bit 81 00:04:54,960 --> 00:04:57,960 Speaker 5: because people are still out of work in those areas, 82 00:04:57,960 --> 00:05:00,960 Speaker 5: but they're not filing new claims. It seems like the 83 00:05:01,120 --> 00:05:04,400 Speaker 5: unemployment offices for those states were very efficient at getting 84 00:05:04,400 --> 00:05:07,040 Speaker 5: people in and getting them on the rolls. But it 85 00:05:07,080 --> 00:05:11,120 Speaker 5: does mean that the jobless claims numbers are much more 86 00:05:11,200 --> 00:05:15,440 Speaker 5: volatile than they were, and that makes it also hard 87 00:05:15,680 --> 00:05:17,760 Speaker 5: to try to figure out what the job's numbers are 88 00:05:17,800 --> 00:05:18,160 Speaker 5: going to be. 89 00:05:18,520 --> 00:05:20,599 Speaker 2: Now, let's go back to what you discussed before. You 90 00:05:20,680 --> 00:05:25,599 Speaker 2: mentioned that strike, that massive crippling strike at Boeing. The 91 00:05:25,640 --> 00:05:29,320 Speaker 2: machinist union rejected a deal thirty five percent wage increase 92 00:05:29,360 --> 00:05:33,400 Speaker 2: over four years. But this thing, it could be a 93 00:05:33,440 --> 00:05:37,200 Speaker 2: long protracted strike. How will that impact the economy going forward? 94 00:05:37,520 --> 00:05:40,960 Speaker 5: Well, it'll have a huge impact in the data because 95 00:05:41,480 --> 00:05:46,640 Speaker 5: the Boeing is the major influence in durable goods just 96 00:05:46,680 --> 00:05:49,760 Speaker 5: because they're the most expensive durable good you can buy. 97 00:05:50,760 --> 00:05:54,760 Speaker 5: One airplane is a lot of money, so we will 98 00:05:54,800 --> 00:05:57,240 Speaker 5: see distortions in that. So you'll be looking at the 99 00:05:57,480 --> 00:06:03,719 Speaker 5: x transportation part of durable goods, the number of people 100 00:06:03,800 --> 00:06:08,200 Speaker 5: who are out of work. If you're on strike, you're 101 00:06:08,360 --> 00:06:13,560 Speaker 5: counted as employed but not at work, and so that 102 00:06:13,600 --> 00:06:17,120 Speaker 5: won't have a major effect. But where you would see 103 00:06:17,120 --> 00:06:20,840 Speaker 5: it is in the companies that make the parts that 104 00:06:20,920 --> 00:06:26,279 Speaker 5: go into Boeing planes. Boeing had been continuing to buy 105 00:06:26,600 --> 00:06:30,800 Speaker 5: its supplies and now they're cutting back on that. So 106 00:06:30,880 --> 00:06:34,360 Speaker 5: maybe we start to see some machine shops and things 107 00:06:34,400 --> 00:06:34,719 Speaker 5: like that. 108 00:06:34,839 --> 00:06:36,479 Speaker 2: Well, Spirit Aerosystems. 109 00:06:36,000 --> 00:06:41,000 Speaker 5: Spirit Aerosystems layoff people and those people may show up 110 00:06:41,040 --> 00:06:45,680 Speaker 5: as unemployed, and that could have an impact on the 111 00:06:45,760 --> 00:06:49,320 Speaker 5: jobless straight although the feeling is that it hasn't been 112 00:06:49,800 --> 00:06:53,400 Speaker 5: fast enough to effect this month, but it could next month. 113 00:06:53,640 --> 00:06:53,800 Speaker 1: Well. 114 00:06:54,120 --> 00:06:57,800 Speaker 2: October Jobs report coming out this coming Friday eight thirty 115 00:06:57,839 --> 00:07:00,640 Speaker 2: am Wall Street Time our thanks to Michael McKay, Bloomberg 116 00:07:00,680 --> 00:07:05,040 Speaker 2: International Economics and Policy correspondent. We move next to corporate earnings, 117 00:07:05,080 --> 00:07:08,240 Speaker 2: with much of the Magnificent seven reporting their latest results 118 00:07:08,320 --> 00:07:12,400 Speaker 2: this week, key names like Apple, Amazon, Alphabet, Microsoft, and 119 00:07:12,520 --> 00:07:15,640 Speaker 2: Meta Platforms. For more on some of what we can expect, 120 00:07:15,720 --> 00:07:20,320 Speaker 2: we're joined by Mandeep Singh, Bloomberg Intelligence Senior Tech industry analyst, 121 00:07:20,920 --> 00:07:23,400 Speaker 2: man Deep Thank you for joining us. Let's start with 122 00:07:23,520 --> 00:07:26,640 Speaker 2: what we already know this past week. Tesla the first 123 00:07:26,760 --> 00:07:29,160 Speaker 2: of the big tech names to post earnings, surprising Wall 124 00:07:29,240 --> 00:07:32,240 Speaker 2: Street with a profit and an upbeat outlook. Do you 125 00:07:32,320 --> 00:07:34,640 Speaker 2: expect this momentum to continue with some of the other 126 00:07:34,840 --> 00:07:38,240 Speaker 2: big names, Apple, Amazon, Meta, Microsoft, I think so. 127 00:07:38,840 --> 00:07:43,440 Speaker 6: And what they said was look, their demand for their 128 00:07:43,560 --> 00:07:46,480 Speaker 6: cars is strong, and on the AI front, they seemed 129 00:07:46,520 --> 00:07:49,840 Speaker 6: to be making a lot of progress where everyone was 130 00:07:49,960 --> 00:07:54,400 Speaker 6: questioning their ROBOTAXI timeline. After the event, I think some 131 00:07:54,560 --> 00:07:57,680 Speaker 6: of the fears went away with their earnings and they 132 00:07:57,800 --> 00:07:59,880 Speaker 6: had more clarity on the call in terms of what 133 00:08:00,120 --> 00:08:02,920 Speaker 6: they are doing on the AI front. And that really 134 00:08:03,040 --> 00:08:05,960 Speaker 6: bodes well for the big tech companies that are reporting 135 00:08:06,520 --> 00:08:13,920 Speaker 6: next week, whether it's Meta, Alphabet, Amazon, even Apple, simply 136 00:08:14,000 --> 00:08:16,960 Speaker 6: because Microsoft is obviously the big bell weather when it 137 00:08:17,080 --> 00:08:21,400 Speaker 6: comes to AI, and look when it comes to cloud. 138 00:08:22,080 --> 00:08:26,160 Speaker 6: There's been a big tailwind from AI spend because all 139 00:08:26,240 --> 00:08:29,080 Speaker 6: these companies that are raising their capex, that are setting 140 00:08:29,160 --> 00:08:33,240 Speaker 6: up AI infrastructure, they are able to monetize it through 141 00:08:33,320 --> 00:08:37,280 Speaker 6: their cloud. And we saw from Microsoft last quarter the 142 00:08:37,360 --> 00:08:42,240 Speaker 6: AI contribution to Azure verse seven percentage points. This quarter 143 00:08:42,320 --> 00:08:44,800 Speaker 6: will probably be higher at least nine to ten percent 144 00:08:44,880 --> 00:08:48,400 Speaker 6: if you ask me. And look if with Alphabet they 145 00:08:48,440 --> 00:08:51,640 Speaker 6: said it was multi billions, they didn't quantify the percentage 146 00:08:51,679 --> 00:08:56,080 Speaker 6: point contribution by I expect their cloud revenue Google Cloud revenue, 147 00:08:56,120 --> 00:08:59,280 Speaker 6: which is a forty billion dollar run lad business, will 148 00:08:59,320 --> 00:09:04,199 Speaker 6: get a lift AI. Same thing for Amazon. Amazon, given 149 00:09:04,520 --> 00:09:06,839 Speaker 6: its size on the cloud side, with over one hundred 150 00:09:06,840 --> 00:09:09,840 Speaker 6: billion dollar runder, it probably will not have the same 151 00:09:10,000 --> 00:09:13,480 Speaker 6: magnitude as Microsoft and Google, but clearly it will get 152 00:09:13,520 --> 00:09:16,720 Speaker 6: a lift from AI, so that's the common thread. And Meta, 153 00:09:16,920 --> 00:09:21,160 Speaker 6: we know they've done extremely well on the ad side 154 00:09:21,320 --> 00:09:25,400 Speaker 6: because of applying AI for recommendations and ads, so I 155 00:09:25,520 --> 00:09:28,719 Speaker 6: expect them to have a good quarter as well. 156 00:09:29,200 --> 00:09:29,360 Speaker 1: Well. 157 00:09:29,480 --> 00:09:34,360 Speaker 2: Yeah, the advertising mostly affects Meta and Amazon. Yeah, but 158 00:09:35,000 --> 00:09:37,880 Speaker 2: cloud computing, like you said, seems to almost all of 159 00:09:37,960 --> 00:09:41,760 Speaker 2: them have a hand in that as well as artificial intelligence, 160 00:09:41,800 --> 00:09:43,920 Speaker 2: some more than others though with artificial intelligence. 161 00:09:44,120 --> 00:09:47,760 Speaker 6: Yeah, and look, I mean, given these companies will raise 162 00:09:47,880 --> 00:09:50,520 Speaker 6: CAPEX again, it will be interesting to see how the 163 00:09:50,640 --> 00:09:56,240 Speaker 6: markets react, because for cloud companies like Microsoft and Google, 164 00:09:56,920 --> 00:10:00,480 Speaker 6: I think the reaction will be positive on CAPEX increases 165 00:10:00,600 --> 00:10:03,760 Speaker 6: simply because they are able to show the monetization in 166 00:10:03,880 --> 00:10:07,280 Speaker 6: their cloud segment. For someone like Meta, I mean, clearly, 167 00:10:07,400 --> 00:10:09,800 Speaker 6: their growth rates are way higher than some of the 168 00:10:09,880 --> 00:10:13,800 Speaker 6: smaller names like snap Interests, So I think that just 169 00:10:13,920 --> 00:10:16,719 Speaker 6: goes to show they are executing very well on the 170 00:10:16,800 --> 00:10:20,240 Speaker 6: AD side. But it's harder for investors to see how 171 00:10:20,360 --> 00:10:24,360 Speaker 6: much of that CAPEX increase is translating into real revenue. 172 00:10:24,760 --> 00:10:27,880 Speaker 6: It's helping their product, but it's not as separate line 173 00:10:27,960 --> 00:10:30,559 Speaker 6: as you have with Microsoft and Google and Amazon. And 174 00:10:30,679 --> 00:10:33,120 Speaker 6: I think that's where it'll be interesting to see how 175 00:10:33,559 --> 00:10:37,760 Speaker 6: investors react to Meta earnings, given expectations. 176 00:10:37,080 --> 00:10:37,640 Speaker 5: Have gone up. 177 00:10:37,920 --> 00:10:40,600 Speaker 6: But they'll probably come out and say you're raising their capex. 178 00:10:40,679 --> 00:10:44,400 Speaker 6: And I think in one queue the reaction was negative, 179 00:10:44,440 --> 00:10:48,800 Speaker 6: in two Q was positive. So I'm expecting it'll be 180 00:10:49,120 --> 00:10:49,960 Speaker 6: a mixed. 181 00:10:50,320 --> 00:10:52,840 Speaker 2: Are you expecting is Meta going to be the standout 182 00:10:52,880 --> 00:10:54,280 Speaker 2: this week out of those five? 183 00:10:54,600 --> 00:10:54,640 Speaker 7: No. 184 00:10:54,880 --> 00:10:56,960 Speaker 6: If I had to bet my money, I would say 185 00:10:57,040 --> 00:11:00,959 Speaker 6: expectations are lower for Alphabet. I mean, I would say 186 00:11:01,000 --> 00:11:05,520 Speaker 6: a lot of folks are investing Alphabet to disappoint given 187 00:11:05,600 --> 00:11:08,439 Speaker 6: the pressure on their search business from open Ai and 188 00:11:08,600 --> 00:11:13,440 Speaker 6: Perplexity and all these new companies. So it's always about 189 00:11:13,520 --> 00:11:16,559 Speaker 6: expectations and you have to frame it in accordance to 190 00:11:16,679 --> 00:11:21,439 Speaker 6: where investor expectations are. So investor expectations are lowest for Alphabet, 191 00:11:21,800 --> 00:11:23,480 Speaker 6: and that's where you know if they come out and 192 00:11:23,600 --> 00:11:26,800 Speaker 6: say search business is holding up and they are seeing 193 00:11:26,840 --> 00:11:29,920 Speaker 6: tailwind from YouTube and cloud, you will see a bigger 194 00:11:29,960 --> 00:11:32,920 Speaker 6: stock reaction there compared to a Meta or Microsoft, where 195 00:11:32,960 --> 00:11:34,280 Speaker 6: expectations are already high. 196 00:11:35,280 --> 00:11:38,920 Speaker 2: Interesting and of course, as you mentioned, advertising revenue is 197 00:11:39,000 --> 00:11:41,800 Speaker 2: going to be always a big revenue gainer. 198 00:11:42,160 --> 00:11:42,360 Speaker 1: Yeah. 199 00:11:42,400 --> 00:11:46,160 Speaker 6: I mean, and look AI has shown that you know, 200 00:11:46,760 --> 00:11:50,600 Speaker 6: you can get a lift in at targeting from application 201 00:11:50,720 --> 00:11:53,720 Speaker 6: of AI. The content recommendation is much better. So all 202 00:11:53,800 --> 00:11:57,040 Speaker 6: those things are there, but they're probably reflected in Meta's 203 00:11:57,480 --> 00:12:00,480 Speaker 6: estimates for Q and twenty twenty five. 204 00:12:00,559 --> 00:12:03,880 Speaker 2: At this point, well, let's talk about the last of 205 00:12:03,960 --> 00:12:07,000 Speaker 2: the Magnificent seven in Nvidia. We won't get Q three 206 00:12:07,040 --> 00:12:10,439 Speaker 2: earnings until November nineteenth, with its new line of Blackwell chips. 207 00:12:10,960 --> 00:12:13,600 Speaker 2: What are you expecting? Are you expecting more blowout news 208 00:12:13,679 --> 00:12:16,839 Speaker 2: from Nvidia or has that kind of subsided No? 209 00:12:17,040 --> 00:12:20,520 Speaker 6: I think if anything, what Jensen has told us so 210 00:12:20,679 --> 00:12:23,719 Speaker 6: far this quarter is demand is off the charts and 211 00:12:23,960 --> 00:12:28,520 Speaker 6: he is setting expectations for a blowout quarter. So if anything, 212 00:12:28,640 --> 00:12:32,600 Speaker 6: I expect all the maxiven to do very well beat 213 00:12:32,679 --> 00:12:34,840 Speaker 6: and raise. I think Tesla was the one who could 214 00:12:34,840 --> 00:12:37,000 Speaker 6: have disappointed, so we saw beat and rais from them. 215 00:12:37,280 --> 00:12:39,800 Speaker 6: I expect others to do the same. But with Nvidia, 216 00:12:39,920 --> 00:12:42,199 Speaker 6: the growth rate is we are talking about eighty percent 217 00:12:42,320 --> 00:12:45,079 Speaker 6: growth rate in the quarter and they'll probably blow it 218 00:12:45,240 --> 00:12:45,960 Speaker 6: out once again. 219 00:12:46,120 --> 00:12:48,600 Speaker 2: Wow, a lot to look forward to. Our thanks demand 220 00:12:48,640 --> 00:12:53,120 Speaker 2: deep sing Bloomberg Intelligence senior tech industry analyst, and coming 221 00:12:53,160 --> 00:12:55,160 Speaker 2: up on Bloomberg day Break weekend, we'll shine a light 222 00:12:55,240 --> 00:12:59,400 Speaker 2: on equity and inclusion efforts in the UK's financial services sector. 223 00:12:59,840 --> 00:13:14,720 Speaker 2: I'm Tom Busby and this is Bloomberg. This is Bloomberg 224 00:13:14,800 --> 00:13:16,839 Speaker 2: day Break weekend, our global look ahead at the top 225 00:13:16,880 --> 00:13:19,720 Speaker 2: stories for investors in the coming week. I'm Tom Busby 226 00:13:19,760 --> 00:13:22,319 Speaker 2: in New York. Up later in our program a look 227 00:13:22,320 --> 00:13:25,040 Speaker 2: ahead to this week's Bank of Japan meeting and monetary 228 00:13:25,160 --> 00:13:29,160 Speaker 2: policy decision. But first, as the UK celebrates Black History 229 00:13:29,240 --> 00:13:32,320 Speaker 2: Month this October, a spotlight has been placed on diversity 230 00:13:32,640 --> 00:13:36,400 Speaker 2: and inclusion efforts in the country's financial services sector. In 231 00:13:36,440 --> 00:13:38,760 Speaker 2: the wake of the Black Lives Matter movement. British companies 232 00:13:38,800 --> 00:13:42,720 Speaker 2: claim they wanted to seriously address racial disparities, but four 233 00:13:42,880 --> 00:13:46,040 Speaker 2: years later, have those commitments been honored for more. Let's 234 00:13:46,080 --> 00:13:48,040 Speaker 2: go to London and bring in Bloomberg day Break euro 235 00:13:48,160 --> 00:13:50,160 Speaker 2: banker Caroline Hepgar Tom. 236 00:13:50,400 --> 00:13:54,000 Speaker 1: Black workers and diversity practitioners in the City of London 237 00:13:54,080 --> 00:13:58,840 Speaker 1: have told Bloomberg that corporate priorities are shifting away from diversity. 238 00:14:00,040 --> 00:14:04,760 Speaker 1: Research from Bain Consultancy and the Black Talent Charter estimates 239 00:14:04,800 --> 00:14:08,280 Speaker 1: that at the current rate, it will take fifty years 240 00:14:08,400 --> 00:14:11,800 Speaker 1: for the proportion of black talent in financial and professional 241 00:14:11,920 --> 00:14:15,640 Speaker 1: services to get close to four point four percent, which 242 00:14:15,760 --> 00:14:19,840 Speaker 1: is the percentage of black employees in the UK's working 243 00:14:19,920 --> 00:14:24,200 Speaker 1: age population. Despite issues surrounding diversity coming to the four 244 00:14:24,320 --> 00:14:27,000 Speaker 1: in twenty twenty after the murder in the US of 245 00:14:27,160 --> 00:14:32,800 Speaker 1: George Floyd, black representation in financial services has not significantly 246 00:14:33,000 --> 00:14:37,960 Speaker 1: improved since then, and in some sectors it's worsened. Bloomberg 247 00:14:38,040 --> 00:14:42,040 Speaker 1: reporter Tia Adabayo has spent weeks investigating how firms in 248 00:14:42,120 --> 00:14:45,760 Speaker 1: the City of London have quietly rolled back on efforts 249 00:14:45,800 --> 00:14:50,680 Speaker 1: to diversify their workforce, a contrast to the public pledges 250 00:14:50,800 --> 00:14:55,920 Speaker 1: that global corporations made after the outcry that was sparked 251 00:14:56,040 --> 00:15:00,040 Speaker 1: by Floyd's murder in the US. Those that she we 252 00:15:00,120 --> 00:15:03,560 Speaker 1: spoke to said the city has quote given up on 253 00:15:03,720 --> 00:15:08,520 Speaker 1: inclusion efforts, leaving black workers feeling abandoned and quitting the 254 00:15:08,600 --> 00:15:12,040 Speaker 1: sector at a higher rate than their peers, but change 255 00:15:12,120 --> 00:15:15,640 Speaker 1: could be a foot. While reporting on the ethnicity pay 256 00:15:15,720 --> 00:15:19,080 Speaker 1: gap is not yet mandatory in Britain, the new Labor 257 00:15:19,160 --> 00:15:24,240 Speaker 1: government recently committed to introducing a draft bill mandating it 258 00:15:24,760 --> 00:15:29,560 Speaker 1: in this parliamentary session. Many finance firms have already started 259 00:15:29,640 --> 00:15:34,880 Speaker 1: publishing the data. Overall, DEI professionals say a more deliberate 260 00:15:35,000 --> 00:15:38,480 Speaker 1: approach needs to be taken. That was the opinion of 261 00:15:38,640 --> 00:15:42,280 Speaker 1: Mark Lomas, who is the head of culture at Lloyd's 262 00:15:42,280 --> 00:15:45,400 Speaker 1: of London, who spoke to tia Adebayo for the Peace. 263 00:15:45,720 --> 00:15:48,960 Speaker 8: I think we see this challenge across lots of employers, 264 00:15:49,440 --> 00:15:52,720 Speaker 8: and that is essentially making sure that your processes are 265 00:15:52,920 --> 00:15:55,880 Speaker 8: fit for purpose. You are deliberate in how you go 266 00:15:56,000 --> 00:16:00,440 Speaker 8: out to attract talent, you have inclusive recruitment practices, and 267 00:16:00,600 --> 00:16:04,960 Speaker 8: then you have the ability and the practices to retain talent. 268 00:16:05,360 --> 00:16:08,840 Speaker 8: I think at the Lloyd's market why we've been so 269 00:16:09,080 --> 00:16:13,480 Speaker 8: successful is because we've had a very deliberate approach to it. 270 00:16:13,960 --> 00:16:17,640 Speaker 8: It's not impossible, but it takes concerned, concentrated effort. 271 00:16:17,800 --> 00:16:20,640 Speaker 7: Can you tell me a bit more about what you're 272 00:16:20,720 --> 00:16:23,440 Speaker 7: doing in terms of retention, because when we look at 273 00:16:23,800 --> 00:16:27,760 Speaker 7: the statistics, it shows that black talent drops off at 274 00:16:27,800 --> 00:16:30,720 Speaker 7: a sort of mid to senior level, so they're coming 275 00:16:30,800 --> 00:16:34,240 Speaker 7: into the profession but they're not staying. Can you shed 276 00:16:34,280 --> 00:16:36,000 Speaker 7: some light as to why you think that might be 277 00:16:36,120 --> 00:16:37,560 Speaker 7: and what you're doing to combat it. 278 00:16:38,040 --> 00:16:41,480 Speaker 8: I think for every company it's a little different. The 279 00:16:41,560 --> 00:16:45,120 Speaker 8: reality is the further you go up the company structure, 280 00:16:45,160 --> 00:16:47,520 Speaker 8: the less jobs there are. So I think companies that 281 00:16:47,600 --> 00:16:51,360 Speaker 8: are very successful with retaining people do have a number 282 00:16:51,400 --> 00:16:55,120 Speaker 8: of support structures in place. So I think the key 283 00:16:55,240 --> 00:16:59,760 Speaker 8: to success is making sure that you've got diversity equity 284 00:17:00,040 --> 00:17:03,840 Speaker 8: assesses built in to your employee life cycle. Without that, 285 00:17:04,240 --> 00:17:09,200 Speaker 8: without the data to make informed intelligent interventions, progresses is slower. 286 00:17:09,480 --> 00:17:12,480 Speaker 8: And then you know, with the drop off in the 287 00:17:12,600 --> 00:17:16,639 Speaker 8: Lloyd's market, you know, the MPNP survey does say that 288 00:17:16,720 --> 00:17:20,199 Speaker 8: there's slightly higher attrition rates for black and ethnically diverse 289 00:17:20,240 --> 00:17:24,880 Speaker 8: groups and others. However, that is perhaps that talent moving 290 00:17:24,960 --> 00:17:29,560 Speaker 8: from job to job within the market, not necessarily leaving 291 00:17:29,640 --> 00:17:32,080 Speaker 8: the market. I hate to make a judgment call without 292 00:17:32,160 --> 00:17:35,000 Speaker 8: the facts, but I think the stats point to that. 293 00:17:35,400 --> 00:17:39,480 Speaker 7: Specifically, when thinking about the unders in your market, how 294 00:17:39,600 --> 00:17:43,080 Speaker 7: do you support them to ensure that their black employees 295 00:17:43,119 --> 00:17:45,679 Speaker 7: are not just there but having a good experience. How 296 00:17:45,760 --> 00:17:48,640 Speaker 7: do you build a culture that makes people want to stay? 297 00:17:48,920 --> 00:17:52,879 Speaker 8: So there is a wealth of support available, and you 298 00:17:52,920 --> 00:17:55,399 Speaker 8: know the reason for that is you know, one of 299 00:17:55,440 --> 00:17:59,160 Speaker 8: the aims of our culture strategy is to ensure inclusive 300 00:17:59,240 --> 00:18:02,560 Speaker 8: practices that enable high performance. And we are very clear 301 00:18:02,680 --> 00:18:05,159 Speaker 8: that the more inclusive it is, the more people have 302 00:18:05,280 --> 00:18:08,720 Speaker 8: an opportunity to speak up, to share their views, to 303 00:18:08,840 --> 00:18:12,480 Speaker 8: feel included, that is better for the end outcome. We 304 00:18:12,600 --> 00:18:14,320 Speaker 8: have a good focus on making that happen. 305 00:18:14,520 --> 00:18:21,080 Speaker 7: What about speaking out publicly compared to supporting internally. Can 306 00:18:21,160 --> 00:18:23,119 Speaker 7: you speak to the importance of doing that and is 307 00:18:23,160 --> 00:18:25,399 Speaker 7: that something you try to do at Lloyd's. 308 00:18:25,680 --> 00:18:28,840 Speaker 8: So I think that's very different for different companies. So, 309 00:18:29,200 --> 00:18:32,560 Speaker 8: you know, in George Floyd, during the kind of aftermath 310 00:18:32,800 --> 00:18:35,920 Speaker 8: of the George Floyd killing, lots of companies kind of 311 00:18:35,960 --> 00:18:39,280 Speaker 8: were very public and effusive about the statements around race equality. 312 00:18:39,880 --> 00:18:43,120 Speaker 8: Maybe some of that hasn't been followed through. I think 313 00:18:43,160 --> 00:18:45,520 Speaker 8: for each company it's important to do what's right and 314 00:18:45,680 --> 00:18:48,359 Speaker 8: what your employees are with their employees think is the 315 00:18:48,400 --> 00:18:52,600 Speaker 8: best thing. At Lloyd's we take an approach that we 316 00:18:52,760 --> 00:18:55,640 Speaker 8: listen to our employees and we respond in the most 317 00:18:55,680 --> 00:18:59,439 Speaker 8: appropriate manner, rather than having a blanket kind of approach 318 00:18:59,520 --> 00:19:02,320 Speaker 8: to it. But yes, it is very important that employees 319 00:19:02,440 --> 00:19:04,920 Speaker 8: have a voice. They're able to talk about what's important 320 00:19:04,960 --> 00:19:08,000 Speaker 8: to them, and that is something that we do consistently, 321 00:19:08,280 --> 00:19:12,200 Speaker 8: so it's not a case of just reacting to an event. 322 00:19:12,640 --> 00:19:16,080 Speaker 8: Consistently promoting people's stories, you know, these things are part 323 00:19:16,119 --> 00:19:19,639 Speaker 8: of the fabric of working for Lloyd's and increasingly throughout 324 00:19:19,640 --> 00:19:20,679 Speaker 8: the Lloyd's market as well. 325 00:19:20,920 --> 00:19:23,680 Speaker 7: I'd like to talk briefly about twenty twenty then and 326 00:19:23,800 --> 00:19:27,600 Speaker 7: that sort of ground swell of feeling. I know you 327 00:19:27,680 --> 00:19:31,000 Speaker 7: weren't at Lloyd's at the time, but as a D 328 00:19:31,080 --> 00:19:35,840 Speaker 7: and I professional, how did it feel to see issues 329 00:19:35,880 --> 00:19:38,240 Speaker 7: that you've been talking about for the length of a 330 00:19:38,320 --> 00:19:41,320 Speaker 7: career suddenly thrust into the forefront. 331 00:19:41,720 --> 00:19:45,359 Speaker 8: So, look, it's always good when there's a focus on 332 00:19:46,080 --> 00:19:48,800 Speaker 8: diverse talent, and you know, I would like it not 333 00:19:49,000 --> 00:19:52,200 Speaker 8: to have to be as a result of a horrendous situation, 334 00:19:52,480 --> 00:19:55,640 Speaker 8: regardless of the group that's affected by it. But look, 335 00:19:55,760 --> 00:19:59,119 Speaker 8: it's positive when there's a focus on these things. However, 336 00:20:00,040 --> 00:20:01,719 Speaker 8: it's more positive when this follow through. 337 00:20:02,080 --> 00:20:06,520 Speaker 1: That was Mark Lomas form the insurance marketplace Lloyd's of London. 338 00:20:06,880 --> 00:20:09,200 Speaker 1: So just how equal is the city of London and 339 00:20:09,520 --> 00:20:13,080 Speaker 1: are firms making any progress. It's something that I asked 340 00:20:13,119 --> 00:20:15,920 Speaker 1: Tiba about as she walked me through her in depth 341 00:20:16,040 --> 00:20:17,520 Speaker 1: reporting on the subject. 342 00:20:17,920 --> 00:20:21,040 Speaker 7: So, Caroline, one person actually summed it up really well, 343 00:20:21,080 --> 00:20:23,680 Speaker 7: and that person is Pauline Miller. She's got twenty years 344 00:20:24,040 --> 00:20:28,040 Speaker 7: of experience running DEI firms across the city, including State 345 00:20:28,119 --> 00:20:31,080 Speaker 7: Streets and Berkley's, And what she said to me is 346 00:20:31,160 --> 00:20:35,359 Speaker 7: that at the moment, we're experiencing this perfect storm of 347 00:20:35,680 --> 00:20:40,840 Speaker 7: economic headwinds, industry backlash, and also disappointing results from initiatives, 348 00:20:40,920 --> 00:20:44,040 Speaker 7: which is driving a real pullback from a lot of 349 00:20:44,160 --> 00:20:47,440 Speaker 7: city firms. And that's been reflected in the accounts of 350 00:20:47,480 --> 00:20:50,160 Speaker 7: black employees that I've spoken to, many of whom wanted 351 00:20:50,200 --> 00:20:54,800 Speaker 7: to keep their identities private. They've said they've noticed subtle changes, 352 00:20:55,000 --> 00:20:58,720 Speaker 7: so fewer Black History Month speakers, for example, fewer networking 353 00:20:58,760 --> 00:21:01,320 Speaker 7: events for people of color. So we're not seeing the 354 00:21:01,400 --> 00:21:05,840 Speaker 7: same regulatory pressure that is present in the States just yet, 355 00:21:06,520 --> 00:21:10,760 Speaker 7: but firms are reassessing their commitments and that's proven in 356 00:21:10,920 --> 00:21:13,320 Speaker 7: the data as well. I spoke to the Taylor Bennett Foundation, 357 00:21:13,840 --> 00:21:17,320 Speaker 7: which is an organization that operates across the communications landscape 358 00:21:17,359 --> 00:21:21,760 Speaker 7: placing diverse candidates in firms such as HSBC and Santander, 359 00:21:21,920 --> 00:21:24,880 Speaker 7: and they said that demand for their paid internship programs 360 00:21:25,040 --> 00:21:28,200 Speaker 7: has actually seen a twenty five percent decline year on 361 00:21:28,320 --> 00:21:31,040 Speaker 7: year since twenty twenty two, and that's despite seeing a 362 00:21:31,200 --> 00:21:35,200 Speaker 7: big uptick in interest in twenty twenty particularly following the 363 00:21:35,280 --> 00:21:38,440 Speaker 7: murder of George Floyd, and that drop in demand is 364 00:21:38,480 --> 00:21:42,120 Speaker 7: coming specifically from financial services and city firms. I also 365 00:21:42,200 --> 00:21:45,400 Speaker 7: spoke to Junior Garber, who founded a similar group called 366 00:21:45,440 --> 00:21:48,560 Speaker 7: Equity City, which works to get the minority candidates into 367 00:21:48,560 --> 00:21:50,359 Speaker 7: the city with a focus on insurance, and. 368 00:21:50,400 --> 00:21:51,280 Speaker 4: He said the same thing. 369 00:21:51,359 --> 00:21:54,240 Speaker 7: Budgets are dwindling and really at the heart of the 370 00:21:54,320 --> 00:21:58,720 Speaker 7: problem seems to be this lack of concerted effort from firms. 371 00:21:59,040 --> 00:22:01,560 Speaker 7: I spoke to one person, Mark Lomas, who's the head 372 00:22:01,600 --> 00:22:04,520 Speaker 7: of culture at Lloyd's of London, and he set out 373 00:22:04,560 --> 00:22:07,240 Speaker 7: the problem really during our conversation. He said, making real 374 00:22:07,359 --> 00:22:10,840 Speaker 7: change takes very deliberate and targeted effort, and not all 375 00:22:10,920 --> 00:22:11,960 Speaker 7: firms are willing to do that. 376 00:22:12,000 --> 00:22:13,040 Speaker 6: So here's a bit of what he said. 377 00:22:13,359 --> 00:22:16,600 Speaker 8: I think we see this challenge across lots of employers, 378 00:22:17,080 --> 00:22:20,199 Speaker 8: and that is essentially and making sure that your processes 379 00:22:20,240 --> 00:22:23,359 Speaker 8: are fit for purpose, you are deliberate and how you 380 00:22:23,480 --> 00:22:27,720 Speaker 8: go out to attract talent, you have inclusive recruitment practices 381 00:22:28,080 --> 00:22:31,800 Speaker 8: and then you have the ability and the practices to 382 00:22:31,960 --> 00:22:36,040 Speaker 8: retain talent. I think at the Lloyd's market why we've 383 00:22:36,080 --> 00:22:40,160 Speaker 8: been so successful is because we've had a very deliberate 384 00:22:40,440 --> 00:22:43,320 Speaker 8: approach to it, so it's not impossible. 385 00:22:43,560 --> 00:22:46,200 Speaker 1: So that was Mark Loma's head of culture at Lloyd's 386 00:22:46,200 --> 00:22:49,520 Speaker 1: of London that you spoke to. You also report on 387 00:22:49,760 --> 00:22:53,440 Speaker 1: black workers facing a ceiling at work or leaving. It 388 00:22:53,560 --> 00:22:56,639 Speaker 1: is having an impact on people in their working lives. 389 00:22:57,119 --> 00:23:00,360 Speaker 7: Yeah, from my conversations, it seems that an uninten did 390 00:23:00,680 --> 00:23:04,119 Speaker 7: consequence of this urgency to act on diversity felt by 391 00:23:04,160 --> 00:23:06,840 Speaker 7: a number of city firms in twenty twenty was that 392 00:23:07,000 --> 00:23:10,280 Speaker 7: some of the DEI strategies that were focused on recruiting 393 00:23:10,320 --> 00:23:13,440 Speaker 7: black talent were rushed and they did it without adjusting 394 00:23:13,560 --> 00:23:17,000 Speaker 7: company culture first. And that's really showing in the experiences 395 00:23:17,040 --> 00:23:20,080 Speaker 7: of black employees and crucially the number of them leaving. 396 00:23:20,240 --> 00:23:23,760 Speaker 7: So the data shows that black talent is leaving firms 397 00:23:23,840 --> 00:23:26,560 Speaker 7: in the city before reaching the top ranks. So at 398 00:23:26,640 --> 00:23:29,920 Speaker 7: UK law firms, black people are four times more likely 399 00:23:30,040 --> 00:23:32,760 Speaker 7: to leave than their white counterparts. And investment banking actually 400 00:23:33,000 --> 00:23:35,679 Speaker 7: the figure for representation at a more senior levels, it's 401 00:23:35,840 --> 00:23:38,480 Speaker 7: just zero point five percent. And we can see in 402 00:23:38,520 --> 00:23:42,119 Speaker 7: the ethnicity pay gap that's persisted too, particularly for black workers. 403 00:23:42,240 --> 00:23:46,440 Speaker 7: So that also suggests concentration at a junior level. But 404 00:23:46,560 --> 00:23:49,440 Speaker 7: employees that I've spoken to really speak to this phenomenon 405 00:23:49,560 --> 00:23:52,600 Speaker 7: of joining through a black focused recruitment scheme like the 406 00:23:52,680 --> 00:23:55,879 Speaker 7: Taylor Bennett Foundation all ten thousand black interns and then 407 00:23:55,920 --> 00:23:59,479 Speaker 7: feeling abandoned without a clear pathway to progression in their 408 00:23:59,520 --> 00:24:02,720 Speaker 7: career contributes to attrition to them leaving. So one of 409 00:24:02,800 --> 00:24:06,760 Speaker 7: those people was Karen Mupeiri. She's a former private equity 410 00:24:07,160 --> 00:24:10,600 Speaker 7: investment operations analyst and she's not a large UK bank 411 00:24:11,080 --> 00:24:13,439 Speaker 7: and she says that since twenty twenty there has been 412 00:24:13,560 --> 00:24:16,720 Speaker 7: divestment from DEI and it's hurting her experience. 413 00:24:17,240 --> 00:24:20,399 Speaker 9: Now it feels a bit more like that conversation has 414 00:24:20,440 --> 00:24:23,080 Speaker 9: almost sort of been put to the back burner, and 415 00:24:23,600 --> 00:24:27,720 Speaker 9: with the economic contraction and sort of companies having to 416 00:24:27,840 --> 00:24:32,119 Speaker 9: reconcile with overhead and challenges, I think THEE and I 417 00:24:32,359 --> 00:24:34,560 Speaker 9: was the first thing to go really and it was 418 00:24:34,600 --> 00:24:37,399 Speaker 9: subtle things like you know, maybe there wouldn't be as 419 00:24:37,480 --> 00:24:41,800 Speaker 9: many networking events for people from saying background, and maybe 420 00:24:42,240 --> 00:24:44,440 Speaker 9: for Black History Months, they wouldn't do quite so many 421 00:24:44,480 --> 00:24:47,159 Speaker 9: things and they wouldn't be quite so many speakers. But 422 00:24:47,320 --> 00:24:49,879 Speaker 9: bit by bit it does feel as though it's not 423 00:24:50,040 --> 00:24:52,159 Speaker 9: really as much of a priority as it used to be, 424 00:24:52,359 --> 00:24:55,160 Speaker 9: and I think that really trickles down into them your 425 00:24:55,240 --> 00:24:56,800 Speaker 9: working life as a black woman. 426 00:24:57,119 --> 00:25:00,480 Speaker 1: So that was Karen Mucpereiri, one of the people that 427 00:25:00,560 --> 00:25:03,359 Speaker 1: you spoke to in this investigation. You've also done some 428 00:25:04,000 --> 00:25:06,560 Speaker 1: granuur reporting. I mean you've talked a lot about the 429 00:25:06,680 --> 00:25:11,160 Speaker 1: data and data tracking is another issue, the BAME umbrella, 430 00:25:11,200 --> 00:25:14,160 Speaker 1: which in the UK refers to black Asian and minority 431 00:25:14,280 --> 00:25:18,200 Speaker 1: ethnic people. There's also an issue with this in the data. 432 00:25:18,640 --> 00:25:21,280 Speaker 7: Yeah, so that was actually one of the most interesting 433 00:25:21,359 --> 00:25:24,080 Speaker 7: parts of this reporting, the existence of this data gap 434 00:25:24,160 --> 00:25:27,080 Speaker 7: as it pertains to black talent in the city. Black 435 00:25:27,119 --> 00:25:32,000 Speaker 7: employees and other employees have to volunteer that ethnicity information 436 00:25:32,280 --> 00:25:36,080 Speaker 7: about themselves and it hurts the progress of DEI. 437 00:25:36,080 --> 00:25:39,960 Speaker 1: My thanks to Bloomberg's Tia adda bio. So is corporate 438 00:25:40,080 --> 00:25:43,840 Speaker 1: diversity a fading trend or an issue being brought to 439 00:25:43,920 --> 00:25:47,360 Speaker 1: the four once again? We shall perhaps have to wait 440 00:25:47,440 --> 00:25:50,480 Speaker 1: to see for more. You can listen to teamers conversations 441 00:25:50,920 --> 00:25:54,440 Speaker 1: in full about these issues on Bloomberg's In the City 442 00:25:54,520 --> 00:25:58,600 Speaker 1: podcast with Farci Laqua. I'm Caroline Hepkee here in London 443 00:25:58,680 --> 00:26:00,680 Speaker 1: and you can catch us every week day morning for 444 00:26:00,720 --> 00:26:03,840 Speaker 1: Bloomberg Daybreak. You're at beginning at six am in London. 445 00:26:04,200 --> 00:26:05,840 Speaker 1: That's one am on Wall Street. 446 00:26:06,160 --> 00:26:09,520 Speaker 2: Tom, Thanks Caroline, and coming up on Bloomberg day Break weekend, 447 00:26:09,600 --> 00:26:12,160 Speaker 2: what to expect from a monetary policy meeting this week 448 00:26:12,600 --> 00:26:15,359 Speaker 2: at the Bank of Japan. I'm Tom Busby, and this 449 00:26:15,720 --> 00:26:29,560 Speaker 2: is Bloomberg. This is Bloomberg day Break Weekend, our global 450 00:26:29,600 --> 00:26:31,520 Speaker 2: look ahead at the top stories for investors in the 451 00:26:31,560 --> 00:26:34,680 Speaker 2: coming week. I'm Tom Busby in New York. As the 452 00:26:34,800 --> 00:26:38,159 Speaker 2: yen weekends, there's growing speculation that Japan's Central Bank is 453 00:26:38,240 --> 00:26:40,800 Speaker 2: looking to raise interest rates in the coming months. Could 454 00:26:40,840 --> 00:26:44,639 Speaker 2: the BOJ start this week? Let's turn to Bloomberg Daybreak 455 00:26:44,680 --> 00:26:47,800 Speaker 2: Asia podcast host Doug Krisner for a closer look. 456 00:26:48,600 --> 00:26:51,240 Speaker 3: Tom. Last month, the Bank of Japan's signaled it will 457 00:26:51,320 --> 00:26:54,960 Speaker 3: slow walk its next great hike. That represents a significant 458 00:26:55,000 --> 00:26:58,800 Speaker 3: pivot from the boj's previous guidance. So what changed to 459 00:26:58,920 --> 00:27:02,359 Speaker 3: trigger that shift the boj's thinking. Joining me now is 460 00:27:02,440 --> 00:27:05,600 Speaker 3: Paul Jackson. He is Bloomberg team leader for Eco gov 461 00:27:05,720 --> 00:27:09,680 Speaker 3: in North Asia, joining us from our studios in Tokyo. Paul, 462 00:27:09,800 --> 00:27:12,680 Speaker 3: it's always a pleasure. I thought the BOJ was squarely 463 00:27:12,800 --> 00:27:17,040 Speaker 3: on a path toward normalizing policy. That would have increased 464 00:27:17,080 --> 00:27:20,320 Speaker 3: the possibility that we could have a rate hike in 465 00:27:20,400 --> 00:27:22,720 Speaker 3: the next week. But something changed. What do you think 466 00:27:22,760 --> 00:27:23,080 Speaker 3: it was. 467 00:27:24,280 --> 00:27:27,800 Speaker 10: Well, I think they are still on track to raise 468 00:27:28,000 --> 00:27:32,080 Speaker 10: interest rates at a gradual pace over the coming months, 469 00:27:32,160 --> 00:27:36,000 Speaker 10: but not at this particular meeting. I don't think we're 470 00:27:36,119 --> 00:27:40,680 Speaker 10: in for any Halloween surprise. I think what we saw 471 00:27:40,840 --> 00:27:46,000 Speaker 10: in July was a lot of market instability following the 472 00:27:46,160 --> 00:27:49,960 Speaker 10: rate hike decision. Then, of course it was largely influenced 473 00:27:50,000 --> 00:27:53,159 Speaker 10: by US data, but we saw the melt down in 474 00:27:53,320 --> 00:27:58,119 Speaker 10: markets in August and certainly in Japan. Some of the 475 00:27:58,200 --> 00:28:01,560 Speaker 10: blame was heaped upon the BOJ, although it was a 476 00:28:01,680 --> 00:28:05,520 Speaker 10: very small rate increase that they actually did. So I 477 00:28:05,600 --> 00:28:09,400 Speaker 10: think they're wanting to steer clear of any finger pointing 478 00:28:09,560 --> 00:28:14,400 Speaker 10: this time and take their time before making the next move. Now, 479 00:28:14,600 --> 00:28:18,600 Speaker 10: we did have the Deputy Governor speaking here at Bloomberg 480 00:28:18,960 --> 00:28:23,560 Speaker 10: in Tokyo recently, and he said, yeah, it's very complicated 481 00:28:23,680 --> 00:28:26,960 Speaker 10: when you look at the BOJ communications to try and 482 00:28:27,400 --> 00:28:31,600 Speaker 10: unpick what it means. But essentially, if the inflation outlook 483 00:28:31,680 --> 00:28:36,720 Speaker 10: continues as we expect, we are going to continue raising rates, 484 00:28:37,240 --> 00:28:40,280 Speaker 10: and so far it looks that's what they're going to do. 485 00:28:40,440 --> 00:28:42,920 Speaker 10: So it's a case of when do they move if 486 00:28:42,960 --> 00:28:43,960 Speaker 10: they don't go in October. 487 00:28:44,040 --> 00:28:47,360 Speaker 3: So you mentioned inflation there, Paul, and my recollection is 488 00:28:47,440 --> 00:28:50,320 Speaker 3: that core CPI is running at about a two point 489 00:28:50,400 --> 00:28:53,200 Speaker 3: four percent annual rate. Now we know that inflation in 490 00:28:53,320 --> 00:28:55,960 Speaker 3: Japan has been elevated for some time, and yet the 491 00:28:56,040 --> 00:29:00,160 Speaker 3: BOJ has been very very cautious. To Titan explain that, thinking. 492 00:29:00,560 --> 00:29:04,520 Speaker 10: Well, it's because it's been a national goal in Japan 493 00:29:04,800 --> 00:29:09,960 Speaker 10: to spur price growth that then feeds into wage growth 494 00:29:10,120 --> 00:29:13,520 Speaker 10: and high consumption and high growth for the economy. So 495 00:29:13,920 --> 00:29:17,080 Speaker 10: in a sense, in Japan, inflation has seen as a 496 00:29:17,200 --> 00:29:22,040 Speaker 10: kind of positive force among policymakers. I think the average 497 00:29:22,080 --> 00:29:24,560 Speaker 10: person on the street may have a different view about that, 498 00:29:25,560 --> 00:29:28,960 Speaker 10: but the central bank essentially has been wanting to be 499 00:29:29,200 --> 00:29:33,800 Speaker 10: very cautious about normalizing policy and raising interest rates because 500 00:29:34,120 --> 00:29:39,080 Speaker 10: it wants this innascent inflation trend to hold to dig in, 501 00:29:39,320 --> 00:29:41,800 Speaker 10: keep roots so that we have a kind of anchored 502 00:29:41,880 --> 00:29:45,680 Speaker 10: two percent inflation trend again and all the money in 503 00:29:45,840 --> 00:29:49,240 Speaker 10: Japan gets moving around again. I think that's the goal, 504 00:29:49,280 --> 00:29:50,760 Speaker 10: and that's why they've been cautious. 505 00:29:50,960 --> 00:29:53,800 Speaker 3: So you mentioned men on the street in Japan. I'm 506 00:29:53,960 --> 00:29:56,400 Speaker 3: thinking that a weaker currency is a part of that story. 507 00:29:56,480 --> 00:29:59,240 Speaker 3: And before we get to the performance of the Yan, 508 00:29:59,400 --> 00:30:02,120 Speaker 3: I want to get a sense of what market participants 509 00:30:02,120 --> 00:30:06,120 Speaker 3: are saying right now about the BOJ decision. Earlier I 510 00:30:06,200 --> 00:30:10,240 Speaker 3: spoke with Peter MacGuire. He is the CEO of XM Australia. 511 00:30:10,360 --> 00:30:12,760 Speaker 3: Let's listen in there seems to have been a little 512 00:30:12,760 --> 00:30:16,840 Speaker 3: bit of a policy pivot right now, perhaps the BOJ 513 00:30:17,040 --> 00:30:19,520 Speaker 3: slow walking the next rate hike. How are you feeling 514 00:30:19,560 --> 00:30:21,880 Speaker 3: about what the BOJ may deliver. 515 00:30:22,440 --> 00:30:24,720 Speaker 11: Well, I'm thinking that they won't do it. We won't 516 00:30:24,720 --> 00:30:27,000 Speaker 11: see a ray fike and it's just you know, I 517 00:30:27,120 --> 00:30:29,960 Speaker 11: might again push it out. You've got that yen has 518 00:30:30,040 --> 00:30:33,680 Speaker 11: been nearly one fifty one, so it's been incredibly volatile. 519 00:30:33,680 --> 00:30:36,239 Speaker 11: We've got a very strong stock market. The Nick guy 520 00:30:36,280 --> 00:30:39,120 Speaker 11: has performed extremely well over the last twelve the way months. 521 00:30:39,160 --> 00:30:41,280 Speaker 11: Everyone knows that it's a market you couldn't be with, 522 00:30:41,480 --> 00:30:42,720 Speaker 11: you know, not being involved in. 523 00:30:43,520 --> 00:30:44,400 Speaker 6: I think that. 524 00:30:44,800 --> 00:30:48,880 Speaker 11: Yeah, the situation in Japan is just it'll be a 525 00:30:48,960 --> 00:30:52,400 Speaker 11: push out and we're not expecting anything dramatic to happen, 526 00:30:52,480 --> 00:30:55,640 Speaker 11: but it's full of surprises and I'm not going to 527 00:30:55,680 --> 00:30:58,000 Speaker 11: say that it won't happen. But at the moment, I'm 528 00:30:58,080 --> 00:31:01,200 Speaker 11: more in the camp that won't happen then will happen. 529 00:31:01,440 --> 00:31:03,880 Speaker 3: So even though the boj is signaling it may push 530 00:31:03,920 --> 00:31:06,080 Speaker 3: out a raidhack, do we have to be worried about 531 00:31:06,400 --> 00:31:09,320 Speaker 3: maybe a little bit of intervention from the Ministry of 532 00:31:09,400 --> 00:31:12,320 Speaker 3: Finance when you're talking about a yen that's flirting with 533 00:31:12,400 --> 00:31:13,160 Speaker 3: one fifty one. 534 00:31:13,560 --> 00:31:15,720 Speaker 11: Yeah, I think so. I mean, you know it's been 535 00:31:16,840 --> 00:31:19,320 Speaker 11: it's always on the back of everyone's mind. If it 536 00:31:19,440 --> 00:31:22,240 Speaker 11: was to tick higher, then naturally, you know, if you 537 00:31:22,320 --> 00:31:24,520 Speaker 11: get that one fifty five, you could see some form 538 00:31:24,560 --> 00:31:26,640 Speaker 11: of intervention. And you can't rule that out because it 539 00:31:26,720 --> 00:31:28,080 Speaker 11: was only a couple of weeks back, or was it 540 00:31:28,160 --> 00:31:31,480 Speaker 11: running at that forty three one forty four, So it's 541 00:31:31,800 --> 00:31:36,880 Speaker 11: again an incredibly volatile trade yen dollar, and I wouldn't 542 00:31:36,880 --> 00:31:39,160 Speaker 11: be surprised that you see it, you know, edge up 543 00:31:39,240 --> 00:31:41,640 Speaker 11: even higher from here, maybe a one fifty three hand 544 00:31:41,720 --> 00:31:43,760 Speaker 11: or Doug, you might see even see a one fifty four. 545 00:31:43,840 --> 00:31:46,720 Speaker 11: But it's just it's got momentum at the moment and 546 00:31:47,440 --> 00:31:49,280 Speaker 11: you can't stand in the road of it because it'll 547 00:31:49,360 --> 00:31:49,800 Speaker 11: run you over. 548 00:31:50,040 --> 00:31:53,360 Speaker 3: He is Peter Maguire, the CEO of XM Australia, and 549 00:31:53,480 --> 00:31:58,280 Speaker 3: an earlier conversation on the Daybreak Asia podcast. Back to 550 00:31:58,360 --> 00:32:00,680 Speaker 3: Paul Jackson in Tokyo. Paul, do you think there's a 551 00:32:00,840 --> 00:32:02,600 Speaker 3: risk right now that we have to talk about it 552 00:32:02,760 --> 00:32:06,920 Speaker 3: as it relates to intervention to defend the currency a bit? 553 00:32:07,720 --> 00:32:11,400 Speaker 10: Well, I think we are getting into the territory where 554 00:32:12,040 --> 00:32:15,120 Speaker 10: officials at the Finance Ministry are going to be feeling nervous. 555 00:32:15,520 --> 00:32:19,280 Speaker 10: When we got into the one fifty mark, the top 556 00:32:19,440 --> 00:32:23,320 Speaker 10: FX official, you know, came out with warnings just saying 557 00:32:23,640 --> 00:32:25,920 Speaker 10: keeping an eye on it on his speculative moves, any 558 00:32:26,080 --> 00:32:30,600 Speaker 10: one sided moves. Those warnings haven't been ramped up, and 559 00:32:30,840 --> 00:32:32,840 Speaker 10: I don't expect they will be until we get much 560 00:32:33,000 --> 00:32:36,440 Speaker 10: closer to the one sixty mark. But I think an 561 00:32:36,480 --> 00:32:42,000 Speaker 10: interesting point here is we had former BOJ executive director 562 00:32:42,440 --> 00:32:47,280 Speaker 10: Momma on speaking at Bloomberg in Tokyo recently, and he 563 00:32:47,440 --> 00:32:50,840 Speaker 10: said he thought that the decision in July to raise 564 00:32:50,920 --> 00:32:55,800 Speaker 10: interest rates was eighty to ninety percent based on weakness 565 00:32:55,960 --> 00:32:59,400 Speaker 10: in the end at that time. And he said, if 566 00:32:59,480 --> 00:33:02,680 Speaker 10: they like, you know, one fifty one fifty five against 567 00:33:02,720 --> 00:33:05,800 Speaker 10: the dollar, then that is going to be putting pressure 568 00:33:05,840 --> 00:33:08,880 Speaker 10: on the BOJ to think about moving earlier. Now. I 569 00:33:08,960 --> 00:33:12,600 Speaker 10: think the context of his remarks suggests he's talking, okay, 570 00:33:12,760 --> 00:33:16,480 Speaker 10: maybe move in December rather than wait until January or 571 00:33:16,600 --> 00:33:17,320 Speaker 10: later next year. 572 00:33:17,400 --> 00:33:19,440 Speaker 3: The other thing that I think is interesting that the 573 00:33:19,600 --> 00:33:23,040 Speaker 3: Fed has kind of been speaking to this idea that 574 00:33:23,160 --> 00:33:27,280 Speaker 3: maybe it needs to modulate the rate at which it 575 00:33:27,440 --> 00:33:30,680 Speaker 3: intends to cut interest rates in the US. So if 576 00:33:30,800 --> 00:33:33,160 Speaker 3: rate cuts in the States get pushed out just a 577 00:33:33,200 --> 00:33:36,000 Speaker 3: little bit, what does it do to the yield curve 578 00:33:36,040 --> 00:33:39,200 Speaker 3: in a way that would influence the boj's thinking. 579 00:33:39,240 --> 00:33:43,240 Speaker 10: Do you think, Well, you know, the pushing out of 580 00:33:43,560 --> 00:33:48,400 Speaker 10: rate cuts by the FED that feeds straight into the 581 00:33:48,600 --> 00:33:52,840 Speaker 10: yen and you know, puts extra weakening pressure on So 582 00:33:53,760 --> 00:33:56,720 Speaker 10: you know, the longer it takes for the next cuts 583 00:33:56,760 --> 00:33:59,280 Speaker 10: to come in, or the more expectations and move back 584 00:34:00,000 --> 00:34:03,040 Speaker 10: the more pressure there is on the end. Now, if 585 00:34:03,080 --> 00:34:05,280 Speaker 10: you look at the meetings, We've got this meeting on 586 00:34:05,480 --> 00:34:09,200 Speaker 10: the thirty first of October. The next one isn't until December, 587 00:34:09,280 --> 00:34:12,560 Speaker 10: so that's quite a long time away, and a lot's 588 00:34:12,600 --> 00:34:15,200 Speaker 10: going to happen in that time. So can we rule 589 00:34:15,280 --> 00:34:18,200 Speaker 10: out intervention in that time? I don't think we can. 590 00:34:18,520 --> 00:34:20,719 Speaker 3: Paul, it's always a pleasure. Thanks so much for making 591 00:34:20,760 --> 00:34:24,000 Speaker 3: time to help us preview the BOJ meeting. He's Paul Jackson, 592 00:34:24,040 --> 00:34:27,560 Speaker 3: Bloomberg ecogov team leader for North Asia, joining us from 593 00:34:27,600 --> 00:34:30,840 Speaker 3: our studios in Tokyo. We turn next to Hong Kong's 594 00:34:30,960 --> 00:34:33,800 Speaker 3: Fintech Week. It will get underway in the days ahead. 595 00:34:34,239 --> 00:34:38,000 Speaker 3: Fintech Week is dedicated to exploring the future of digital 596 00:34:38,120 --> 00:34:42,520 Speaker 3: assets and at the same time fostering innovation within the community. 597 00:34:43,000 --> 00:34:47,160 Speaker 3: Thirty thousand attendees are expected from over one hundred different jurisdictions, 598 00:34:47,200 --> 00:34:50,160 Speaker 3: and organizers are saying the event can serve as a 599 00:34:50,239 --> 00:34:54,000 Speaker 3: platform for incubation. For a preview, now, I'm joined by 600 00:34:54,000 --> 00:34:57,719 Speaker 3: Bloomberg's Annabel Droolers, Bloomberg Tech reporter. She's based in Hong 601 00:34:57,800 --> 00:35:00,879 Speaker 3: Kong and she will be covering fintech Wiek. We thank 602 00:35:00,920 --> 00:35:02,759 Speaker 3: you for making time to chat with me about this. 603 00:35:03,120 --> 00:35:05,600 Speaker 3: Can we take the big picture here. You've got a 604 00:35:05,640 --> 00:35:07,840 Speaker 3: little bit of experience with what goes on here and 605 00:35:08,360 --> 00:35:09,600 Speaker 3: help me set the stage. 606 00:35:10,040 --> 00:35:12,279 Speaker 12: Well, I think it's a really interesting stage to set 607 00:35:12,360 --> 00:35:15,040 Speaker 12: because it comes at a kind of a pretty crucial 608 00:35:15,120 --> 00:35:18,480 Speaker 12: time for Hong Kong's crypto pivot. You think about where 609 00:35:18,600 --> 00:35:20,880 Speaker 12: Hong Kong is going with this and the sort of 610 00:35:20,960 --> 00:35:22,920 Speaker 12: inroads that it's made so far, and a lot of 611 00:35:22,960 --> 00:35:24,920 Speaker 12: people in Hong Kong would tell you it's probably not 612 00:35:25,040 --> 00:35:28,960 Speaker 12: panning out quite as have been expected. This conference that's 613 00:35:29,000 --> 00:35:30,640 Speaker 12: coming up this week, they're saying it's one of the 614 00:35:30,680 --> 00:35:33,440 Speaker 12: biggest in Asia. Of course, maybe some of the conferences 615 00:35:33,440 --> 00:35:35,320 Speaker 12: that are held in Singapore might beg to differ on 616 00:35:35,400 --> 00:35:38,560 Speaker 12: that front, but still there's a speaker lineup that really 617 00:35:38,680 --> 00:35:42,560 Speaker 12: speaks to perhaps the city's unique interpretation of crypto, because 618 00:35:42,560 --> 00:35:44,640 Speaker 12: on the one hand, you do have those sort of 619 00:35:44,760 --> 00:35:47,560 Speaker 12: more traditional pure crypto plays that are going to be attending. 620 00:35:47,640 --> 00:35:50,239 Speaker 12: So Bullish, for instance, that's a crypto exchange based in 621 00:35:50,280 --> 00:35:53,440 Speaker 12: the US. There's VARA, it's a regulatory authority from the 622 00:35:53,480 --> 00:35:55,920 Speaker 12: Middle East, from the UAE, and Chain link as well. 623 00:35:55,960 --> 00:35:58,120 Speaker 12: That's another one that's sort of more on the institutional side. 624 00:35:58,120 --> 00:36:01,640 Speaker 12: But still Hong Kong has a eavy host of fintech 625 00:36:01,760 --> 00:36:05,440 Speaker 12: in shure tech, traditional tech businesses vcs. They're also going 626 00:36:05,520 --> 00:36:06,279 Speaker 12: to be intendance. 627 00:36:06,480 --> 00:36:10,120 Speaker 3: What's the regulatory environment like in Hong Kong? Is there one? 628 00:36:10,239 --> 00:36:10,439 Speaker 5: Really? 629 00:36:10,840 --> 00:36:13,840 Speaker 12: Yeah, there's definitely a regulatary environment in Hong Kong. But again, 630 00:36:13,920 --> 00:36:15,920 Speaker 12: going back to that point I made twenty twenty two, 631 00:36:16,040 --> 00:36:17,839 Speaker 12: was when they signaled that they were wanting to start 632 00:36:17,960 --> 00:36:23,359 Speaker 12: licensing retail crypto exchanges. And fast forward a couple of years. Yes, 633 00:36:23,480 --> 00:36:26,279 Speaker 12: you've got three the license and some might say that's 634 00:36:26,360 --> 00:36:28,360 Speaker 12: enough because of Hong Kong. Of course it's only around 635 00:36:28,440 --> 00:36:30,839 Speaker 12: seven or eight million people. But at the same time, 636 00:36:30,920 --> 00:36:33,760 Speaker 12: there's maybe around thirteen that are deemed to be licensed. 637 00:36:33,800 --> 00:36:36,200 Speaker 12: That means have got sort of their initial approvals. We 638 00:36:36,320 --> 00:36:39,319 Speaker 12: haven't seen them being fully greenlit just yet. And then 639 00:36:39,360 --> 00:36:42,040 Speaker 12: it's the question, Okay, what exactly a regulator is planning 640 00:36:42,080 --> 00:36:44,759 Speaker 12: to do about it and will they really proceed full 641 00:36:44,800 --> 00:36:45,880 Speaker 12: steam ahead on this approach. 642 00:36:45,920 --> 00:36:48,520 Speaker 3: As well, we've got a presidential election coming up here 643 00:36:48,560 --> 00:36:51,400 Speaker 3: in the States, and both the Trump campaign and the 644 00:36:51,480 --> 00:36:55,239 Speaker 3: Harris campaign have kind of indicated a friendliness to the 645 00:36:55,320 --> 00:36:57,080 Speaker 3: crypto space. Do you think that's going to be a 646 00:36:57,160 --> 00:36:59,480 Speaker 3: factor in some of the conversations that happen in Hong 647 00:36:59,560 --> 00:37:01,000 Speaker 3: Kong during Fintech Week. 648 00:37:01,080 --> 00:37:03,799 Speaker 12: Yeah, without a doubt. I think pretty much everyone would 649 00:37:03,840 --> 00:37:07,560 Speaker 12: tell you where crypto heads is really based on what 650 00:37:07,760 --> 00:37:10,480 Speaker 12: the US does in terms of regulation. And it's been 651 00:37:10,520 --> 00:37:13,400 Speaker 12: really interesting to watch that trading activity ahead of the 652 00:37:13,520 --> 00:37:17,560 Speaker 12: US election because you've sort of seen bitcoin trading based 653 00:37:17,640 --> 00:37:20,959 Speaker 12: on the expectations of Donald Trump returning to the White House. 654 00:37:21,320 --> 00:37:24,480 Speaker 12: That sort of changed somewhat because Kamala Harris has signaled 655 00:37:24,560 --> 00:37:27,120 Speaker 12: more of an openness and at least in a willingness 656 00:37:27,160 --> 00:37:29,399 Speaker 12: to regulate the sector, and so you've sort of seen 657 00:37:29,440 --> 00:37:32,359 Speaker 12: that evening out somewhat. What's interesting is if you take 658 00:37:32,400 --> 00:37:34,760 Speaker 12: a look at what's happening in the options market, actually 659 00:37:34,800 --> 00:37:37,280 Speaker 12: there's a lot of bets that are building for crypto bitcoin, 660 00:37:37,320 --> 00:37:39,880 Speaker 12: in particular to reach eighty thousand dollars by the end 661 00:37:39,920 --> 00:37:42,680 Speaker 12: of November. That would be a record high for the token. 662 00:37:42,760 --> 00:37:46,200 Speaker 12: But again, it tells you that whoever enters the White House, 663 00:37:46,520 --> 00:37:48,480 Speaker 12: many in the crypto industry would tell you it's going 664 00:37:48,560 --> 00:37:49,920 Speaker 12: to be a positive for the industry. 665 00:37:50,080 --> 00:37:53,360 Speaker 3: So what's happening around stable coins and does that compare 666 00:37:53,440 --> 00:37:55,520 Speaker 3: in any way to what we're seeing in other areas 667 00:37:55,560 --> 00:37:56,480 Speaker 3: of the crypto space. 668 00:37:56,800 --> 00:37:59,239 Speaker 12: Stable coins has been really interesting, I think again it 669 00:37:59,360 --> 00:38:01,239 Speaker 12: kind of comes back to what does the US do 670 00:38:01,360 --> 00:38:03,840 Speaker 12: in this space, and we've actually just seen some inroads 671 00:38:03,880 --> 00:38:06,880 Speaker 12: on that because there was another reintroduction I guess the 672 00:38:06,920 --> 00:38:10,239 Speaker 12: Republican Senator Bill Haggerty. He's someone who's seen as being 673 00:38:10,320 --> 00:38:12,800 Speaker 12: very friendly with Trump, very pro crypto, but he's just 674 00:38:12,840 --> 00:38:16,000 Speaker 12: to introduce some amendments to the Payment stable Coins Act. 675 00:38:16,680 --> 00:38:18,960 Speaker 12: If that brings a regulatory clarity, we could see it 676 00:38:19,040 --> 00:38:22,560 Speaker 12: being adopted elsewhere, but in Asia itself. Actually, Japan has 677 00:38:22,719 --> 00:38:24,759 Speaker 12: seen as being one of the real standouts in this space. 678 00:38:24,800 --> 00:38:27,919 Speaker 12: They already introduced their own legislation more than a year ago, 679 00:38:28,320 --> 00:38:30,400 Speaker 12: and you're just seeing those sort of pilot programs that 680 00:38:30,440 --> 00:38:32,560 Speaker 12: are taking place in Singapore also in Hong Kong. 681 00:38:32,840 --> 00:38:35,000 Speaker 3: Annabelle, thanks so much for chatting with me on the 682 00:38:35,080 --> 00:38:37,840 Speaker 3: crypto space as we look forward to Fintech Week in 683 00:38:37,960 --> 00:38:41,440 Speaker 3: Hong Kong. She's Annabelle Driller's Bloomberg Tech reporter, and I'm 684 00:38:41,520 --> 00:38:44,280 Speaker 3: Doug Prisner in New York. You can join us weekdays 685 00:38:44,360 --> 00:38:49,040 Speaker 3: for the Daybreak Asia podcast, available wherever you get your podcast. Tom, 686 00:38:49,480 --> 00:38:50,160 Speaker 3: Thank you Doug. 687 00:38:50,440 --> 00:38:52,440 Speaker 2: And that does it for this edition of Bloomberg day 688 00:38:52,480 --> 00:38:54,960 Speaker 2: Break Weekend. Join us again Monday morning at five am 689 00:38:55,040 --> 00:38:57,920 Speaker 2: Wall Street Time for the latest on markets overseas and 690 00:38:58,040 --> 00:39:01,040 Speaker 2: the news you need to start your day. I'm Tom Buzby. 691 00:39:01,200 --> 00:39:01,759 Speaker 7: Stay with us. 692 00:39:02,080 --> 00:39:05,200 Speaker 2: Top stories and global business headlines are coming up right now.