# Daybreak Weekend: US CPI, Cannes Festival, Bessent Visits Japan

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 8 May 2026, 39 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/d15648c4-cee0-4e99-a5ca-af80014d921d/6dcea146-abb0-4860-8b72-b44401490a3d/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week. • In the US – a look ahead to U.S CPI, PPI, and Retail sales data, along with a focus on 3 stocks for the week ahead. • In the UK – a look ahead to the annual Cannes film festival. • In Asia – a look ahead to US Treasury Secretary Scott Bessent's Trip to Japan. See omnystudio.com/listener for privacy information.

## Transcript

[0:00] Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
[0:10] Speaker 2: This is Bloomberg Daybreak Weekend, our global look at the
[0:13] Speaker 2: top stories in the coming week from our Daybreak anchors
[0:16] Speaker 2: all around the world. Straight Ahead on the program, we
[0:19] Speaker 2: look to some key inflation data in the US. I'm
[0:22] Speaker 2: Nathan Hager in Washington.
[0:23] Speaker 3: I'm Caroline Hebgin London, where we discuss whether the Can
[0:27] Speaker 3: Film Festival can galvanize the business of cinema.
[0:31] Speaker 4: I'm Doug Prisner, looking ahead to US Treasury Secretary Scott
[0:34] Speaker 4: Besson's visit to Japan.
[0:38] Speaker 1: That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg
[0:42] Speaker 1: eleven three yeh New York, Bloomberg ninety nine to one, Washington, DC,
[0:46] Speaker 1: Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Syrias,
[0:51] Speaker 1: XM one twenty one, and around the world on Bloomberg Radio,
[0:55] Speaker 1: dot Com and the Bloomberg Business App.
[1:02] Speaker 2: Good day to you. I'm Nathan Hager. We begin today's
[1:05] Speaker 2: program with some key economic data in the US. The
[1:08] Speaker 2: April reading on consumer prices comes out on Tuesday. Then
[1:12] Speaker 2: we'll get a look at inflation pressures on business in
[1:15] Speaker 2: the Producer Price Index Wednesday and then we'll see how
[1:18] Speaker 2: the consumer is holding up when April retail sales come
[1:21] Speaker 2: out Thursday, a busy week for Edward Harrison, senior editor
[1:26] Speaker 2: for Bloomberg News and author of the Everything Risk newsletter.
[1:29] Speaker 2: Really pleased that Ed's got some time to join us here.
[1:33] Speaker 5: Now.
[1:34] Speaker 2: I'm sure I'm not the only one who sees inflation
[1:37] Speaker 2: pressure just driving by the gas station every day. Ed,
[1:41] Speaker 2: Is this the month we're going to see Iran war
[1:43] Speaker 2: impacts show up in the data?
[1:46] Speaker 6: Hey, Nathan, Yes, I think this is the month. The
[1:49] Speaker 6: real question is is whether or not it shows up
[1:52] Speaker 6: less or more than is expected. Because you know, if
[1:55] Speaker 6: you look at the numbers on the Bloomberg terminal, we
[1:58] Speaker 6: had three point three last month. Expected for this month
[2:02] Speaker 6: year over year for cpis three point seven percent, and
[2:06] Speaker 6: they also expect a two point six percent core number
[2:09] Speaker 6: to go up to two point seven percent. So it's
[2:12] Speaker 6: definitely baked into the cake, not only that gas prices
[2:15] Speaker 6: will cause a big jump in the CPI year or
[2:18] Speaker 6: a year, but that it will translate into something overall
[2:22] Speaker 6: in terms of the core CPI. And so ultimately the
[2:28] Speaker 6: question is do we get more or do we get
[2:30] Speaker 6: less than what's expected?
[2:32] Speaker 2: How much would you expect that something like energy prices
[2:35] Speaker 2: would feed into the core. It is something that can
[2:39] Speaker 2: have an overall impact, can it when you think about
[2:42] Speaker 2: diesel prices and the effect on shipping as.
[2:44] Speaker 6: Well, right, definitely. And you know, we see all sorts
[2:48] Speaker 6: of different effects of helium prices having an effect on
[2:53] Speaker 6: electronics because of the use of helium in large disk
[2:58] Speaker 6: drives that drive the AI build out. You know that
[3:03] Speaker 6: they use these disk drives potentially for AI and all
[3:07] Speaker 6: sorts of other things. What I would say is is
[3:10] Speaker 6: that if you look at PCE, which is based off
[3:13] Speaker 6: of personal consumption, the price increase there that index was
[3:18] Speaker 6: three point two percent year over year. We got that
[3:22] Speaker 6: a couple of weeks ago, and that's the number that
[3:25] Speaker 6: the FED looks at. Three point two percent is really high.
[3:29] Speaker 6: And so what it says is is that we're already
[3:31] Speaker 6: at a high level. If the increase in energy prices
[3:36] Speaker 6: adds to that, then it's going to be a very
[3:39] Speaker 6: tough road for the for the Federal Reserve ahead and
[3:41] Speaker 6: for interest rates overall.
[3:43] Speaker 2: And how do you expect that to feed into what
[3:45] Speaker 2: we could get from the producer price side as well?
[3:48] Speaker 2: When those numbers come out.
[3:51] Speaker 6: That's where where I think the market and I both
[3:54] Speaker 6: expect to see the big jumps. So the numbers were
[3:58] Speaker 6: pretty large already. You had three point eight percent in March.
[4:03] Speaker 6: They're expecting four point three percent core. This is not
[4:08] Speaker 6: including food and energy, so you can see those are
[4:10] Speaker 6: huge numbers even if you don't include food and energy,
[4:13] Speaker 6: and if you did include food and energy, then you've
[4:16] Speaker 6: got a four point zero going up to four point
[4:19] Speaker 6: eight percent to be expected. So almost five percent increase
[4:25] Speaker 6: in producer prices in the month of April.
[4:28] Speaker 2: So potentially even bigger price increases on the producer side
[4:32] Speaker 2: than on the consumer. Do you expect to see some
[4:35] Speaker 2: of that feeding in to what consumers see the idea
[4:39] Speaker 2: that producers might be able to pass along some of
[4:42] Speaker 2: their price pressures onto the consumer.
[4:45] Speaker 6: Yeah, I think. You know it's with the tariffs. It
[4:49] Speaker 6: was unknown whether or not they would be legal, and
[4:54] Speaker 6: we've seen that they've been struck down by various courts
[4:57] Speaker 6: now here. You you know that these even though it's temporary,
[5:02] Speaker 6: you know that the price pressures are for real and
[5:06] Speaker 6: you must pass them through. And so to the degree
[5:08] Speaker 6: that companies can pass them through, they're definitely going to
[5:11] Speaker 6: do that, and then the question becomes, you know, how
[5:14] Speaker 6: much can the consumer handle?
[5:17] Speaker 2: And I guess we'll get some answers on that potentially
[5:20] Speaker 2: in the Thursday retail sales print for the month of April.
[5:24] Speaker 2: Are you expecting to see any shifts in consumer behavior
[5:28] Speaker 2: reflected in those numbers?
[5:31] Speaker 6: Yes, I think that you know the expectation from the market.
[5:36] Speaker 6: In particular, the ultimate number to look for is the
[5:39] Speaker 6: control group. That's the number for retail sales that the
[5:43] Speaker 6: market uses to say this is the best number to
[5:45] Speaker 6: look at in terms of the go forward approach, and
[5:48] Speaker 6: that number is expected to decline to zero point four
[5:51] Speaker 6: percent from zero point seven percent. If you take out autos,
[5:56] Speaker 6: you go from zero point six percent also to zero
[5:58] Speaker 6: point four percent. Those are decent numbers, but when you
[6:03] Speaker 6: take away inflation, it really adds up on a year
[6:06] Speaker 6: of a year basis to you know, a mid lean economy.
[6:12] Speaker 6: Anything lower starts to become very difficult, and then you
[6:16] Speaker 6: start worrying about economic growth.
[6:19] Speaker 2: Well, again, really appreciate your insights ahead of all this data.
[6:22] Speaker 2: That is Edward Harrison, senior editor for Bloomberg News. Check
[6:25] Speaker 2: out all his work on the Everything Risk newsletter. You
[6:28] Speaker 2: can find it at Bloomberg dot com Slash newsletters. Let's
[6:32] Speaker 2: take a look now add some stocks making news in
[6:34] Speaker 2: the week ahead. I'm Nathan Hager, joined by Bloomberg Markets
[6:37] Speaker 2: Live Managing Editor Christine Aquino with more earnings on TEP
[6:41] Speaker 2: this week starting Monday with Hymns and Hers Health. Weren't
[6:44] Speaker 2: they going to beef with Nova Nordisk recently, Christine? How
[6:48] Speaker 2: are things in telehealth these days?
[6:50] Speaker 7: That beef though, is a thing of the past, because
[6:52] Speaker 7: they're cooperating with each other now, right, And so that
[6:56] Speaker 7: is one of the reasons why the likes of JP
[6:58] Speaker 7: Morgan initiated to stock with an overweight rating because of
[7:03] Speaker 7: that deal. So now before they had a beef, now
[7:05] Speaker 7: they have a partnership, and so Hyms and Hers will
[7:08] Speaker 7: be selling we govy on its platform, and JP Morgan
[7:12] Speaker 7: is saying that that deal could mark a turning point
[7:15] Speaker 7: and remove a significant legal overhang. So that bothes well
[7:18] Speaker 7: for its earnings potentially, and you know, we have options
[7:22] Speaker 7: of course, starting to price that potential move there, we
[7:26] Speaker 7: could see it potentially a thirteen percent move in the
[7:29] Speaker 7: share after the company reports earnings. And so if that
[7:33] Speaker 7: is all fine and dandy, they meet or beat estimates,
[7:36] Speaker 7: then that could be a thirteen percent share move higher,
[7:39] Speaker 7: but otherwise it could be a thirteen percent share move lower.
[7:41] Speaker 7: So we'll see about that.
[7:43] Speaker 8: Yeah.
[7:43] Speaker 2: Well, I mean this stock has already been doing pretty
[7:45] Speaker 2: well so far this year, hasn't it. I mean, where
[7:48] Speaker 2: is the bar when it comes to what investors want
[7:51] Speaker 2: to see from Hymns this time around?
[7:53] Speaker 7: Yeah? I mean, of course, the demand for the GLP
[7:57] Speaker 7: ones very much still sustaining the business model here. And
[8:02] Speaker 7: I think the fact that you know, they are able
[8:04] Speaker 7: to pivot because potentially, you know, they're now in cooperation
[8:08] Speaker 7: with Novo and so they're kind of turning themselves from
[8:12] Speaker 7: a competitor into a retailer in that space, and so,
[8:17] Speaker 7: you know, I think investors will want to see is
[8:19] Speaker 7: that business model working, how much kind of gains could
[8:23] Speaker 7: they expect from that sort of partnership. Is it something
[8:26] Speaker 7: that could potentially also open up opportunities with other GLP
[8:31] Speaker 7: one manufacturers and sellers in the market, Right, And so yeah,
[8:35] Speaker 7: for Hymns and Hers, it's going to be a question
[8:37] Speaker 7: of how well are they able to pivot after this
[8:40] Speaker 7: initial legal setback.
[8:41] Speaker 2: I guess we could call Hymns and Her sort of
[8:44] Speaker 2: tech adjacent, right, because this is going to be kind
[8:46] Speaker 2: of a busy week for tech earnings overall. We're going
[8:49] Speaker 2: to hear from Applied Materials on Thursday. This has been
[8:53] Speaker 2: a pretty crazy quarter for chip makers. Where are we
[8:56] Speaker 2: expecting chip equipment makers.
[8:59] Speaker 6: To stack well?
[9:00] Speaker 7: Based on the movement in the semicondaractor is index that
[9:03] Speaker 7: we've seen, I mean, I think it's all going to
[9:07] Speaker 7: be positive, So potentially high expectations for the earnings for
[9:11] Speaker 7: Applied Materials here, and you know the options data that
[9:15] Speaker 7: we're seeing at the moment implying about a six percent
[9:17] Speaker 7: move After those results, we have seen a spate of
[9:21] Speaker 7: analyst moves for the stock, ubs raising its price target
[9:25] Speaker 7: to four hundred and eighty from four hundred and thirty previously,
[9:28] Speaker 7: Seaport Global Securities giving Applied Materials a new by rating
[9:32] Speaker 7: and a five hundred dollars price target. So it looks
[9:34] Speaker 7: like a lot of expectations very positive, especially because of
[9:38] Speaker 7: all the optimism that we've seen in the chip space
[9:41] Speaker 7: and our own bloomering intelligence analysts weighing in as well,
[9:44] Speaker 7: and they're looking for sales and fiscal second quarter finishing
[9:48] Speaker 7: higher and also similar gains for operating profits. So it
[9:51] Speaker 7: looks like there's going to be a lot of positivity
[9:54] Speaker 7: baked in. We'll see if they can deliver on that.
[9:56] Speaker 2: I mean you could say that there's a lot of
[9:57] Speaker 2: positivity baked in already. I mean, this stock is serious
[10:02] Speaker 2: double digits on the year so far. Is it priced
[10:05] Speaker 2: to perfection?
[10:06] Speaker 7: I mean, that is definitely the worry every time we
[10:09] Speaker 7: see such big gains like these, Nathan, I mean, you
[10:12] Speaker 7: always have the naysayers in the market right saying that
[10:15] Speaker 7: this can possibly keep going at nauseum. But just you know,
[10:20] Speaker 7: if you look at kind of the plans of the
[10:21] Speaker 7: biggest hyper scalers when it comes to their cap x, right,
[10:24] Speaker 7: the likes of your alphabets, your Amazon's, your Apples, it
[10:28] Speaker 7: seems like there is never ending demand at the moment
[10:32] Speaker 7: for any equipment, any infrastructure related to AI and the
[10:37] Speaker 7: data center buildout, and so you know, in some ways
[10:39] Speaker 7: it could be priced perfection, but it may be a
[10:42] Speaker 7: while yet before we actually see that pullback in stock.
[10:45] Speaker 2: Speaking of the AI build out, we are going to
[10:48] Speaker 2: hear from another beneficiary of that phenomenon on Wednesday when
[10:53] Speaker 2: Cisco Systems reports. What are we expecting from Cisco.
[10:57] Speaker 7: Absolutely, Nathan, Well, you know, a similarly positive thing our
[11:00] Speaker 7: blooming intelligence analysts saying that they're focusing primarily on Cisco's
[11:05] Speaker 7: optical and high capacity networking products and that has benefited
[11:09] Speaker 7: from the AI infrastructure ramp up. As you've mentioned, the
[11:12] Speaker 7: expectation is for that to keep benefiting from that, and
[11:16] Speaker 7: specifically for Cisco, that could result in an increase to
[11:20] Speaker 7: about five billion dollars and its AI order outlooks so
[11:24] Speaker 7: not too shabby for the stock, and that's really helped
[11:27] Speaker 7: shield it as well from the software pessimism that we've
[11:32] Speaker 7: seen in the start of the year, right because they're
[11:36] Speaker 7: very much levered to that build out that we've seen
[11:39] Speaker 7: in Given the demand for anything related to that, both
[11:43] Speaker 7: hardware and software, seems like it could be a positive
[11:47] Speaker 7: season for Cisco once again.
[11:49] Speaker 2: I guess one other question is whether Cisco is shielded
[11:52] Speaker 2: from the hit we've seen from memory costs from so
[11:56] Speaker 2: many of these companies that have reported so far.
[11:58] Speaker 7: Yeah, absolutely, definitely something that investors are going to be
[12:01] Speaker 7: watching out for. You know, how much of their margins
[12:05] Speaker 7: are they going to be able to protect as costs
[12:08] Speaker 7: rise in whether that a shortage is set to continue.
[12:12] Speaker 7: Is there supply chain something that is relatively insulated from
[12:17] Speaker 7: that dynamic, or is it something that they're going to
[12:20] Speaker 7: have to contend with as well. So I'm sure that
[12:22] Speaker 7: investors going to be looking out for any comments from
[12:25] Speaker 7: the company from their CEO during the analysts call. For sure, the.
[12:29] Speaker 2: Tech earning story continues. Thanks Christine, great having you on
[12:33] Speaker 2: with us. That's Bloomberg Markets Live, Managing Editor Christine Aquino,
[12:37] Speaker 2: and coming up on Bloomberg Daybreak weekend, we'll look to
[12:40] Speaker 2: the con Film Festival whether it can galvanize the new
[12:43] Speaker 2: cinema business. I'm Nathan Hager. This is Bloomberg. This is
[12:58] Speaker 2: Bloomberg Daybreak. We ad our global look ahead at the
[13:01] Speaker 2: top stories for investors in the coming week. I'm Nathan
[13:04] Speaker 2: Hager in Washington. Up later in our program, we'll look
[13:07] Speaker 2: ahead to Treasury Secretary Scott Besson's visit to Japan. But first,
[13:11] Speaker 2: in the coming days, the great and good of the
[13:14] Speaker 2: entertainment world will descend on the south of France for
[13:16] Speaker 2: the annual Cahn Film Festival. It's a well established hallmark
[13:20] Speaker 2: of the industry calendar, but in an AI driven landscape,
[13:24] Speaker 2: is the business of film still lucrative for more, Let's
[13:27] Speaker 2: go to London and bring in Bloomberg Daybreak europe anker
[13:30] Speaker 2: Caroline hepger Nathan.
[13:32] Speaker 3: The Can Film Festival is known for glitz and glamour
[13:35] Speaker 3: amid the palm trees of the south of France. The
[13:38] Speaker 3: nearly two week long event features beach parties, black tie affairs,
[13:42] Speaker 3: and plenty of celebrities, but outside of those trappings, the
[13:46] Speaker 3: movies shown behind closed doors are typically quite intense. The
[13:50] Speaker 3: Can lineup favors challenging works from important oteurs, and for
[13:55] Speaker 3: the critics and journalists working at the festival, that means
[13:59] Speaker 3: wrestling with those efforts, often on sometimes very little sleep.
[14:04] Speaker 3: Throughout the festival, the focus is on who might win
[14:07] Speaker 3: the palmdor the top prize given by the jury, an
[14:11] Speaker 3: impossible award to predict, but one that often contains clues
[14:15] Speaker 3: about the upcoming Oscars race at this point relatively far
[14:20] Speaker 3: away on the calendar, but it is true that the
[14:23] Speaker 3: whole event gets you excited about what's on the horizon. However,
[14:27] Speaker 3: outside the sparkling world of the stars and the premieres,
[14:32] Speaker 3: audience interest in traditional cinema going has generally declined compared
[14:37] Speaker 3: to pre pandemic levels, with many blaming the cost and
[14:41] Speaker 3: the dominance of home streaming preserving the industry as a
[14:45] Speaker 3: key concern for insiders View CEO Timothy Richards has been
[14:50] Speaker 3: discussing that issue on Bloomberg Television recently, saying that demand
[14:55] Speaker 3: is returning.
[14:56] Speaker 9: The good news is business is back. The demand. Our
[15:01] Speaker 9: customer has never left us, but business is back right now.
[15:04] Speaker 9: And if you look at what happened with Michael opening
[15:06] Speaker 9: weekend two hundred and seventeen million dollars, Devilware's product is
[15:10] Speaker 9: going to be very, very similar in terms of how
[15:14] Speaker 9: for consolidation. It is fragmented, and it has been fragmented
[15:17] Speaker 9: for quite a while. And I think everyone's been waiting
[15:20] Speaker 9: for business to return before they actually took that first step.
[15:24] Speaker 9: The contrarian investors are too late. We're back, But.
[15:28] Speaker 10: Tim, I mean, you need content first and foremost. So
[15:30] Speaker 10: we'll talk about ticket pricing and AI and how you
[15:33] Speaker 10: manage cues and staff, but you need content. Do you
[15:35] Speaker 10: worry there's going to be less content out there, less
[15:38] Speaker 10: films being made because of the merger.
[15:39] Speaker 9: Yeah. Look, I think my biggest concern is demand, and
[15:43] Speaker 9: I think we've proven certainly in the last few years
[15:45] Speaker 9: that there is a massive demand for all movies of
[15:48] Speaker 9: all genres, for all demographics. We've broken records for all
[15:52] Speaker 9: kinds of movies. And if you look at Hamnet, Hannah
[15:56] Speaker 9: is going to do twenty million pounds in the UK.
[15:59] Speaker 9: So I worry about a man. Where there's a demand,
[16:00] Speaker 9: there's normally a supply will follow. If you look at
[16:03] Speaker 9: what's happened. And I'm fresh back from Las Vegas and
[16:06] Speaker 9: Cinema Coon and from meeting the studios in Los Angeles
[16:09] Speaker 9: after that, and the commitment to future filmmaking right now
[16:14] Speaker 9: with the Legacy studios is unprecedented. Then when you actually
[16:18] Speaker 9: look at the three biggest names in tech, Tim Cook,
[16:22] Speaker 9: Jeff Bezos, and David and Lariy Ellison, they've all now
[16:26] Speaker 9: embraced theatrical releases and film production. They're coming into our industry.
[16:32] Speaker 3: That was the view founder and CEO Timothy Richard speaking
[16:36] Speaker 3: there to Boomberg's frost sine laqua. So how are we
[16:39] Speaker 3: looking ahead to the upcoming can Film Festival? How can
[16:43] Speaker 3: the sector's leaders ensure the magic of La Croisette is
[16:47] Speaker 3: translated into the box office. Joining me now for more
[16:51] Speaker 3: is Bloomberg's Bunoir Bertolo, who is covering the festival this year, Well,
[16:56] Speaker 3: lucky you, Bunoir to be going to this big efferent
[17:00] Speaker 3: lots going on what normally happens at the can Film Festival.
[17:05] Speaker 11: So I guess the public facing side of the festival
[17:10] Speaker 11: is really the competition, So about twenty films that are
[17:14] Speaker 11: competing against each other to win the palmedor that's what
[17:18] Speaker 11: at the end of the festival. So it's really what
[17:21] Speaker 11: gets the attention because these are films that are carefully
[17:26] Speaker 11: selected that are going to be basically some of the
[17:28] Speaker 11: bigger films in the year to come when it comes
[17:32] Speaker 11: to release cinema, let's say, as an aard form. But
[17:37] Speaker 11: these are the most popular of the films that are
[17:40] Speaker 11: going to come out in the year to come. Yeah,
[17:43] Speaker 11: if we can sites blogbusters that are not typically shown
[17:46] Speaker 11: in gan So this is really the celebration of cinema
[17:51] Speaker 11: independent cinema as an aard form, and that's really the
[17:55] Speaker 11: main focus, let's say. But there is also a less
[17:58] Speaker 11: known side of the festival that's really the business side
[18:03] Speaker 11: really and it's to film market and it's happening underneath
[18:08] Speaker 11: the Pallete Festival in sort of an underground, very unglamorous
[18:13] Speaker 11: area where films are shown to movie professional distributors from
[18:18] Speaker 11: all over the world that are going to see films
[18:21] Speaker 11: yet to be released and decided they want to buy
[18:24] Speaker 11: it and show them in their countries. So it's really
[18:27] Speaker 11: the heart of the festival business wise, and it's also
[18:32] Speaker 11: a major thread of the festival because it's bringing tens
[18:35] Speaker 11: of thousands of film professionals to can every year.
[18:39] Speaker 1: Yeah.
[18:39] Speaker 3: Absolutely so in terms of the more glamorous side of things,
[18:44] Speaker 3: what are the big releases that perhaps we'll hear more
[18:47] Speaker 3: about for this year.
[18:50] Speaker 11: So it's an interesting year for the festival because for
[18:55] Speaker 11: while there was no US films selected in competing. Meanwhile,
[19:01] Speaker 11: one film has been added by James Gray, so that's
[19:05] Speaker 11: going to be a film that's going to be very expected,
[19:09] Speaker 11: I think, with Scarlett Johnson and Adam Driver featuring in
[19:16] Speaker 11: the film. We don't know a lot about it yet,
[19:19] Speaker 11: but that's going to be a point of attention. And
[19:21] Speaker 11: then there is this mix of filmmakers from all over
[19:24] Speaker 11: the world. Three films from Spain that I'm especially looking
[19:29] Speaker 11: forward to went by Rodegoyen, another one about the civil
[19:35] Speaker 11: war in Spain. It's a lot of films inspired by
[19:39] Speaker 11: the wars. Actually, the Second World War theme is going
[19:41] Speaker 11: to be very strong films from friends as well Asian
[19:48] Speaker 11: films like it. It's really a mix. And there are
[19:51] Speaker 11: some favorites of CAN that are coming every time the
[19:56] Speaker 11: selector film basically, and that's one of the criticism of
[19:59] Speaker 11: the fistival is you know they've got their favorites and
[20:04] Speaker 11: they would come whatever film the release. But truth is,
[20:08] Speaker 11: you know that they are carefully selected. And what's really
[20:11] Speaker 11: interesting is we don't know yet because these has not
[20:14] Speaker 11: been seen by anyone. We don't know yet which film
[20:18] Speaker 11: is going to create the buzz and which film is
[20:19] Speaker 11: going to come out with the big O L.
[20:22] Speaker 3: Yeah, that's the excitement, isn't it. And the paland'ah, as
[20:25] Speaker 3: you say, is the crown jewel of the proceedings and
[20:28] Speaker 3: who might clinch that? I mean, I noticed that it's
[20:30] Speaker 3: the old boy director Park Chan Wook, who is leading
[20:34] Speaker 3: the jury that makes the selection for who is awarded
[20:37] Speaker 3: the pandor what's it like then to win that accolade?
[20:41] Speaker 6: You know?
[20:42] Speaker 3: How important is it? I mean you say the criticism
[20:45] Speaker 3: is that there are sometimes favorites that CAN, but how
[20:48] Speaker 3: important is it to win the Panda.
[20:51] Speaker 11: It's absolutely major for a film because it's going to
[20:54] Speaker 11: launch that film into this season that's coming. Basically, Ken
[21:00] Speaker 11: is always seen at the first event of the year
[21:02] Speaker 11: in terms of awards and in terms of films that
[21:05] Speaker 11: are going to be seen for the full years. So
[21:08] Speaker 11: very often the films that are selected for the palmudor
[21:11] Speaker 11: but also the major top prices, right the best scenario,
[21:15] Speaker 11: best director or best actor. These films they are going
[21:18] Speaker 11: to be every year we see that they're going to
[21:22] Speaker 11: be launched into the award season and they can make
[21:26] Speaker 11: it to the Oscars in the end. And that's what
[21:28] Speaker 11: happened with The Substance, for example, that was a very
[21:32] Speaker 11: small film that made it to the Oscars and got
[21:36] Speaker 11: five nominations. I think with Demi Moore, comeback of Demi Moore,
[21:40] Speaker 11: I think that was extremely interesting and she's going to
[21:43] Speaker 11: be part of the jury this year.
[21:44] Speaker 3: Interestingly, I think that's really interesting. Also that I mean
[21:48] Speaker 3: Can is also the big you know, film festival in Europe,
[21:53] Speaker 3: even kind of bigger than Berlin and Venice. So interesting
[21:56] Speaker 3: that you say it's such a launch pad then maybe
[21:58] Speaker 3: into a bigger market into the US. But I have
[22:02] Speaker 3: to say that in the backdrop of this, you know,
[22:04] Speaker 3: talking about these individual movies, these small budget movies, maybe
[22:10] Speaker 3: that get bigger. The backdrop in the industry is surely
[22:14] Speaker 3: artificial intelligence and maybe movies that are emerging in that space.
[22:18] Speaker 3: Do you think CAN is going to be a buzz
[22:21] Speaker 3: with chatter about AI films?
[22:24] Speaker 11: It is every year and increasingly a topic in CAN,
[22:27] Speaker 11: of course, as it is across the industry. Really interestingly, interestingly,
[22:35] Speaker 11: there is one film that's that's using open eyes technology
[22:40] Speaker 11: that's going to be shown to bios in CAN this year.
[22:44] Speaker 11: It's called The Critters and it's an animation film that
[22:47] Speaker 11: we're not going to see yet, it's not finished yet,
[22:49] Speaker 11: but it's going to be shown to potential bios. So
[22:53] Speaker 11: that's one example of one film, a feature film that's
[22:56] Speaker 11: going to use AI a lot that we're going to
[22:59] Speaker 11: see in the coming months probably, And and of course
[23:03] Speaker 11: it's it's always a chatter in CAN. You would see
[23:07] Speaker 11: panels this year about what AI means for cinema as
[23:12] Speaker 11: a creative tool, what it means for the ip of
[23:16] Speaker 11: the actors and directors that are sort of prompted and
[23:22] Speaker 11: that are sort of used in AI prompts. So what
[23:26] Speaker 11: does it mean in terms of rights for them, So
[23:30] Speaker 11: it touches on the creative side, on the business side,
[23:33] Speaker 11: and all this also happening on the backdrop of the
[23:38] Speaker 11: sort of difficult moment, a moment of crisis really for
[23:41] Speaker 11: the cinema industry since COVID, the theaters have not seen
[23:46] Speaker 11: the same level of of tickets sold really doing during
[23:52] Speaker 11: the pandemic. People have grown us to see films on
[23:58] Speaker 11: their home screen a hole and so it's ataly also
[24:02] Speaker 11: one of the big thread every year. You can it's
[24:05] Speaker 11: really how well the industry is doing. We are talking
[24:10] Speaker 11: about these very art, outhouse films that can make it
[24:16] Speaker 11: two bigger markets sometimes. But there is also the huge
[24:20] Speaker 11: category is blockbusters. These are really carrying the cinema industry worldwide,
[24:25] Speaker 11: the big Hollywood blockbusters. Before the pandemic, you could see
[24:29] Speaker 11: one or two of these every month. It's really not
[24:32] Speaker 11: the case anymore. The studios are making less bets on
[24:36] Speaker 11: big films and we can see Devil were two currently
[24:41] Speaker 11: making big numbers, for example, But there are few words
[24:44] Speaker 11: of these films every year, and interestingly, no big blockbuster
[24:47] Speaker 11: will have a premiere in can this year. Last year
[24:51] Speaker 11: we saw Mission impossible premiering and it was a bigger
[24:55] Speaker 11: than than a big bus and this way this year,
[24:58] Speaker 11: it's kind of a snub for the big US studios
[25:01] Speaker 11: and none of these are going to show it. Befeling Kenn.
[25:04] Speaker 11: So it's also signed that there's no film that's ready
[25:08] Speaker 11: to be shown in ghen this year. So it's really
[25:13] Speaker 11: also the business backdrop of the festival, and it's how
[25:15] Speaker 11: well the industry is doing.
[25:18] Speaker 3: Yeah, it's going to be very interesting, isn't it. Have
[25:20] Speaker 3: a wonderful time. I'm looking forward to reading some of
[25:23] Speaker 3: your reporting and your insights into the movie industry. Bloomberg's
[25:27] Speaker 3: Bernoit Bertolo. We will have full coverage of the can
[25:30] Speaker 3: film festivals, twists and turns on Bloomberg platforms in the
[25:34] Speaker 3: coming days. I'm Caroline Hebgar here in London and you
[25:37] Speaker 3: can catch us every weekday morning for Bloomberg Daybreak. You
[25:41] Speaker 3: at beginning at six am in London, that's one am
[25:43] Speaker 3: on Wall Street.
[25:44] Speaker 2: Nathan, Thanks Caroline, and coming up on Bloomberg Daybreak weekend,
[25:49] Speaker 2: look at what you expect from Treasury Secretary Scott Besson's
[25:52] Speaker 2: visit to Japan. I'm Nathan Hagard and this is Bloomberg.
[26:07] Speaker 2: This is Bloomberg Daybreak Weekend, our global look ahead at
[26:10] Speaker 2: the top stories for investors in the coming week. I'm
[26:13] Speaker 2: Nathan Hager in Washington. Treasury Secretary Scott Bessant will spend
[26:17] Speaker 2: three days in Japan starting Monday. For a preview, Let's
[26:20] Speaker 2: get to Doug Krisner, host of the Bloomberg Daybreak Asia podcast.
[26:24] Speaker 4: Thanks. Nathan. Besant is reportedly expected to meet with Prime
[26:28] Speaker 4: Minister Sona etake Ichi, as well as Finance Minister Satsuki
[26:33] Speaker 4: Katayama and Bank of Japan Governor Kazu Awaita. Now the
[26:37] Speaker 4: NIKE is reporting these meetings will be held separately. For
[26:40] Speaker 4: a closer look at what Besant wants to address on
[26:42] Speaker 4: this trip, let's bring in Bloomberg's Molly Smith, who joins
[26:46] Speaker 4: us from our studio in the Japanese capital. Thank you
[26:49] Speaker 4: so much for making time. I understand that you're on
[26:51] Speaker 4: temporary assignment now as part of a Bloomberg News job swap,
[26:56] Speaker 4: and I know you're in the capital city. Before we
[26:58] Speaker 4: get into the stuff regarding the Treasury Secretary, I'm curious
[27:02] Speaker 4: to get your take on the overall economy right now
[27:04] Speaker 4: in Japan. I know inflation is a big issue. What's
[27:07] Speaker 4: the feeling right now?
[27:09] Speaker 8: You know, it's very interesting, Doug, coming from the US,
[27:13] Speaker 8: where I've been covering the economy for the last five
[27:15] Speaker 8: years to now being in Japan for a few months,
[27:19] Speaker 8: and as we know, inflation is, you know, really such
[27:23] Speaker 8: a deeply psychological phenomenon as much as it is a
[27:26] Speaker 8: financial one. And even though in the US, you know,
[27:30] Speaker 8: inflation was much more severe and long term than it
[27:35] Speaker 8: has been in Japan, I think it's still very much,
[27:39] Speaker 8: you know, it's very real here, and especially because the
[27:42] Speaker 8: country is coming off of really deflation for the last
[27:45] Speaker 8: thirty years, so to even have inflation of you know,
[27:49] Speaker 8: something in the one to two percent area like it
[27:51] Speaker 8: is now is still very meaningful after prices have been
[27:56] Speaker 8: falling for so long.
[27:57] Speaker 4: The three day Golden Week holiday just wrapped, and I'm
[28:00] Speaker 4: curious to get your take on how Japanese consumers responded,
[28:05] Speaker 4: whether they were engaged maybe doing a little bit of traveling,
[28:08] Speaker 4: spending a little bit at shops and restaurants, where they
[28:11] Speaker 4: engaged in activity at all.
[28:13] Speaker 8: I would say, anecdotally, from my perspective, it seemed that way.
[28:17] Speaker 8: You know, I'm fairly new to the country, so I
[28:19] Speaker 8: was trying to travel a bit in and around Tokyo
[28:22] Speaker 8: during that period where we had most of this past
[28:27] Speaker 8: week was a holiday as well as a day in
[28:29] Speaker 8: the previous week, so it definitely seems like people were
[28:33] Speaker 8: out and about and spending and engaging with shops and restaurants.
[28:38] Speaker 8: I haven't personally seen any high frequency data on it,
[28:42] Speaker 8: but definitely we'll be looking to when we get some
[28:45] Speaker 8: household spending figures in the next few months to confirm
[28:50] Speaker 8: that in the hard data for sure.
[28:52] Speaker 4: So let's get to Treasury Secretary Beson's visit in the
[28:55] Speaker 4: week ahead. Can you give me a sense of what
[28:58] Speaker 4: he is attempting to address here?
[29:00] Speaker 8: So so much has lately been about the yen weakness,
[29:04] Speaker 8: which authorities here are really trying to keep at bay
[29:09] Speaker 8: as much as they can. A lot of the speculative
[29:11] Speaker 8: trading in the currency market, and it seems like the
[29:14] Speaker 8: one sixty yen per dollar mark is really that unofficial
[29:19] Speaker 8: line in the sand of what they're trying to prevent
[29:22] Speaker 8: against it. That is really the test threshold of how
[29:25] Speaker 8: weak they're willing to let the end get or ideally
[29:29] Speaker 8: not to go beyond that. So we've had a few
[29:33] Speaker 8: suspected interventions in recent in about the past week here,
[29:40] Speaker 8: and it seems like that will definitely be a key
[29:43] Speaker 8: topic for Bessett to discuss, especially with the Finance minister
[29:49] Speaker 8: that they've been in very close contact because there are
[29:52] Speaker 8: these G seven agreements to keep your contacts abreast of
[29:58] Speaker 8: what is happening with your currencies so that you're not
[30:00] Speaker 8: labeled a currency manipulator. And also when a lot of
[30:04] Speaker 8: these interventions are carried out, it's usually done by selling
[30:09] Speaker 8: US treasuries in order to buy yet, so that's where
[30:13] Speaker 8: of course the US would have a vested interest in
[30:17] Speaker 8: how Japan is carrying out these moves.
[30:19] Speaker 4: So the other part of a stronger yen story would
[30:22] Speaker 4: obviously be a change in monetary policy. We were talking
[30:26] Speaker 4: a moment ago about inflation, and from what I understand,
[30:30] Speaker 4: real wages for Japanese workers in the month of March
[30:33] Speaker 4: rows for a third consecutive month, and I think the
[30:36] Speaker 4: numbers kind of would support the case for the BOJ
[30:40] Speaker 4: raising interest rates at the June meeting. Is that widely
[30:42] Speaker 4: expected and if we get a rate hike, is it
[30:46] Speaker 4: expected to have a meaningful impact on the currency.
[30:49] Speaker 8: So we are right now definitely expecting a hike at
[30:53] Speaker 8: the June meeting. Wouldn't say that that's because of the
[30:55] Speaker 8: wage data alone, though that definitely is a supporting factor
[31:00] Speaker 8: for it. And this is something that Uweita has you know,
[31:04] Speaker 8: at the meet that the BOJ meeting that policymakers just
[31:08] Speaker 8: wrapped up, he was a bit hesitant to send a
[31:11] Speaker 8: firmer signal that the June hike is coming. You know,
[31:15] Speaker 8: there were certainly some ways we could read into it.
[31:18] Speaker 8: You saw that the split in the vote. You know
[31:20] Speaker 8: that there were six policymakers who voted with the consensus
[31:25] Speaker 8: to hold rates steady, but there were three who dissented
[31:28] Speaker 8: in favor of raising interest rates. And also when the
[31:31] Speaker 8: bank laid out its projections for their outlook, a meaningful
[31:36] Speaker 8: increase in inflation expectations. So those two together would definitely
[31:41] Speaker 8: have signaled that there is reasonable belief that a hike
[31:45] Speaker 8: could be coming at the next meeting in June. And yes,
[31:48] Speaker 8: as you mentioned, the positive trend in real wages would
[31:51] Speaker 8: also be supportive of that.
[31:52] Speaker 4: So the elephant in the room, so to speak, when
[31:55] Speaker 4: Treasury Secretary Besant is in Tokyo is going to be
[31:59] Speaker 4: war in Iran. We know that Japan is a heavy
[32:02] Speaker 4: importer of crude oil and LNG, especially from the Middle East.
[32:08] Speaker 4: What's the feeling right now, what is the view that
[32:12] Speaker 4: people have in Japan on this conflict and what are
[32:15] Speaker 4: they having to deal with as a result of higher energy.
[32:18] Speaker 8: Cost Well, this is really one of the big reasons
[32:21] Speaker 8: why the yen is as weak as it is right now.
[32:24] Speaker 8: I mean, the other reason that you know, predated the
[32:27] Speaker 8: war and Iran is the interest rate differential, that that
[32:31] Speaker 8: US treasury yields are so much higher than Japanese government
[32:36] Speaker 8: bond yields are here, and that's also been contributing to
[32:39] Speaker 8: weakness in the end for a bit longer. But now
[32:42] Speaker 8: since Japan is such a heavy importer of crude oil
[32:46] Speaker 8: from the Middle East, that's also been weighing on the currency.
[32:50] Speaker 8: So it's really been just you know, more difficult adding
[32:54] Speaker 8: to like what's been you know, a real cost of
[32:57] Speaker 8: living increase here for the people of Japan, and that
[33:02] Speaker 8: there doesn't really seem to be much relief coming anytime
[33:05] Speaker 8: soon in that way, because the US hasn't really signaled
[33:08] Speaker 8: any interest in cutting interest rates anytime soon. If anything,
[33:13] Speaker 8: there seems to be more of a consensus growing out
[33:16] Speaker 8: of the Fed of policy makers who might be inclined
[33:19] Speaker 8: to raise interest rates as a next move. So we're
[33:22] Speaker 8: not going to get any help on the rate differential.
[33:26] Speaker 8: And even if the Bank of Japan does hike interest
[33:29] Speaker 8: rates here, there is still quite a meaningful gap to
[33:32] Speaker 8: claw that back and to help the end offset some
[33:35] Speaker 8: of this weakness.
[33:36] Speaker 4: So it's not just energy products that are imported. A
[33:39] Speaker 4: number of other resources. Is that showing up, particularly when
[33:43] Speaker 4: you look at certain areas like food that these costs
[33:47] Speaker 4: have also appreciated.
[33:49] Speaker 8: That's where, yeah, it's you know, interesting looking at different
[33:52] Speaker 8: measures of inflation here compared to what we look at
[33:55] Speaker 8: in the US, and one of them is, you know,
[33:58] Speaker 8: particularly for food prices for foods that are made with rice,
[34:03] Speaker 8: and that's really been one of the real sticking points
[34:06] Speaker 8: of where inflation has really been meaningful here.
[34:10] Speaker 4: Molly, we'll leave it there, thank you so very much,
[34:12] Speaker 4: and enjoy that temporary assignment for Bloomberg News in Tokyo,
[34:16] Speaker 4: Bloomberg's Molly Smith. We moved to China next, where the
[34:19] Speaker 4: government recently reported a surge in both the value and
[34:23] Speaker 4: the number of payment transactions from overseas visitors during the
[34:27] Speaker 4: recent five day Labor Day holiday, and that's where we
[34:30] Speaker 4: began our conversation with Kent Ju. Kent is CEO of
[34:34] Speaker 4: a Core Greater China, and he spoke with Bloomberg TV
[34:37] Speaker 4: host David Inglase and Ivon Mann.
[34:39] Speaker 5: Let me just get started if I could, with the
[34:41] Speaker 5: recent long weekend, could you give us maybe what were
[34:44] Speaker 5: the highlights for your group? What stood out to you
[34:47] Speaker 5: and equally what were the challenges?
[34:49] Speaker 12: Good morning. Indeed, the China hotels record a very strong
[34:54] Speaker 12: redpad growth over this past May holiday. While it is
[34:58] Speaker 12: that did experience the slightly softer demand in comparison with
[35:03] Speaker 12: Chinese New Year and the timming holidays. Uh, these I
[35:06] Speaker 12: would say attributed two main factors. One is this Chinese
[35:10] Speaker 12: New Year, we had a longer holiday and also a
[35:14] Speaker 12: later holiday, and this shifted the travel pattern slightly. And
[35:20] Speaker 12: number two, the air fare rise as a result of
[35:24] Speaker 12: the recent oil price increase. But nevertheless, the hotels generally
[35:29] Speaker 12: did very well as reported in other various different sources.
[35:34] Speaker 12: We are waiting for the official data in the next
[35:37] Speaker 12: couple of days, but I'm sure the picture will be
[35:40] Speaker 12: very robust.
[35:42] Speaker 13: You mentioned about the increase in jet fuel prices and
[35:45] Speaker 13: really obviously airfares have have really skyrocketed since this around
[35:51] Speaker 13: situation began. Can has it impacted anywhere your occupancy across
[35:55] Speaker 13: your hotels? Can you tell a little bit more the
[35:56] Speaker 13: impact that around more may have on the industry.
[36:00] Speaker 12: The Mini East crisis didn't really impact a Greater China
[36:03] Speaker 12: hotels performance that much, simply because Middle East is a
[36:08] Speaker 12: very small market for us. It's not on the top
[36:11] Speaker 12: ten list. It takes up a three percent of Greater
[36:14] Speaker 12: Chinese hotel revenue number two Q one and Q two
[36:19] Speaker 12: are not their traditional high travel season, so the hotel's
[36:23] Speaker 12: impact is quite a minimum.
[36:26] Speaker 6: Okay, I guess.
[36:27] Speaker 5: Can't just maybe including what we've seen so far in
[36:31] Speaker 5: the first few months of twenty twenty six, before of course,
[36:34] Speaker 5: but the war started in Iran and maybe also encapsulating
[36:38] Speaker 5: the recent weekend. Could you tell us more about where
[36:41] Speaker 5: you're seeing the growth in as far as is it
[36:43] Speaker 5: domestic travel that seems to be picking up if you
[36:45] Speaker 5: have the data on that, or are we seeing a
[36:48] Speaker 5: faster pickup in inbound travel into mainland China? Well?
[36:51] Speaker 12: Inbound extremely robust. In twenty twenty five, we saw a
[36:56] Speaker 12: thirty six percent increase for our Co hotels in Greater China,
[37:00] Speaker 12: and the first quarter of this year up until actually
[37:03] Speaker 12: end of March, we saw another increase of twenty five percent.
[37:08] Speaker 12: So this is this is a very strong sign that
[37:12] Speaker 12: China's visa free forest policy is is helping the industry
[37:18] Speaker 12: in Greater China. Number two, the leisure demound in domestic
[37:22] Speaker 12: markets is also very robust, particularly in markets in Greater China,
[37:28] Speaker 12: uh sorry, great Greater Bay Area, Sanya Yinland and also
[37:33] Speaker 12: great to for example Hong Kong and h and Going.
[37:36] Speaker 12: So these two cities literally ran full house for the
[37:40] Speaker 12: last ten ten days.
[37:42] Speaker 13: You mentioned rev PARW was actually pretty good during during
[37:45] Speaker 13: the holiday Candra, I think up until the end of
[37:48] Speaker 13: last year, rev part in China was still a negative
[37:52] Speaker 13: territory here and really, you know, underperforming a lot of
[37:55] Speaker 13: parts of the region. Do you have a sense of
[37:57] Speaker 13: demand picking up a bit more there and when you
[38:00] Speaker 13: think red Park can actually turn positive in China.
[38:03] Speaker 12: I think the love part negative rep part really was
[38:06] Speaker 12: in the mid scale and the economy scale hotels last year.
[38:10] Speaker 12: But if you look at the premium and luxury segments
[38:12] Speaker 12: actually outperformed two d twenty five. There was a five
[38:16] Speaker 12: percent to six percent of repil growth in the premium
[38:19] Speaker 12: and luxury segment. So in the Nashelle we see this
[38:23] Speaker 12: trend starting actually from Q three last year until year
[38:26] Speaker 12: to day this year. Luxury segment in particular has recorded
[38:30] Speaker 12: more than eight percent increase on you.
[38:32] Speaker 4: That was Kent ju CEO of a Core Greater China,
[38:35] Speaker 4: speaking with Bloomberg TV host David and Glaze and Vonne Mann.
[38:39] Speaker 4: I'm Derek Kristner. You can catch us weekdays for the
[38:41] Speaker 4: Daybreak Asia podcast. It's available wherever you get your podcast.
[38:45] Speaker 2: Nathan, Thanks Doug, and that does it for this edition
[38:49] Speaker 2: of Bloomberg Daybreak Weekend. Join us again Monday morning at
[38:52] Speaker 2: five am Wall Street Time for the latest on markets
[38:55] Speaker 2: overseas and the news you need to start your day.
[38:57] Speaker 2: I'm Nathan Hager. Stay with us, stop store worries and
[39:00] Speaker 2: global business headlines are coming up right now.

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