# Daybreak Weekend: Fed Preview & Tech Earnings, Bank of England Decision, Japan's Golden Week

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 24 Apr 2026, 38 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/d15648c4-cee0-4e99-a5ca-af80014d921d/634cbf5e-cceb-41d8-82d4-b43601440ccf/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 – we preview the Federal Reserve's rate decision and big tech earnings • In the UK – we look ahead to the Bank of England's upcoming rate decision • In Asia – we discuss the Golden Week holiday in 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
[0:15] Speaker 2: all around the world. Straight Ahead on the program, we'll
[0:18] Speaker 2: look ahead to the April rate decision from the Federal Reserve,
[0:21] Speaker 2: plus a big week for Magnificent seven earnings. I'm Nathan
[0:24] Speaker 2: Hager in Washington.
[0:25] Speaker 3: I'm Karin Hedg in London, where we're looking ahead to
[0:28] Speaker 3: the Bank of England's rate decision, as the Middle East
[0:30] Speaker 3: openn's Europe's plans for growth.
[0:33] Speaker 4: I'm Doug Krisner looking ahead to the Golden Week holiday
[0:36] Speaker 4: in Japan.
[0:38] Speaker 1: That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg
[0:42] Speaker 1: eleven three y oh New York, Bloomberg ninety nine to one, Washington, DC,
[0:46] Speaker 1: Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Sirius
[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 the Federal Reserve. The Central Bank's latest two
[1:08] Speaker 2: day policy meeting kicks off this Tuesday. For what may
[1:11] Speaker 2: be the final rate decision under Chairman Jerome Powell on Wednesday.
[1:16] Speaker 2: Bloomberg International Economics and Policy correspondent Michael McKee will be
[1:20] Speaker 2: in Washington, d C. For the decision and Powell news conference,
[1:24] Speaker 2: and Mike is here with me. Now, I always ask
[1:27] Speaker 2: you what your question the Chairman Powell is going to
[1:29] Speaker 2: be at the news conference? I dare to ask whether
[1:32] Speaker 2: it's going to be what are you going to do?
[1:34] Speaker 5: Jay?
[1:35] Speaker 2: Is that where you're going?
[1:37] Speaker 6: You know, I know you're gonna ask me what the
[1:41] Speaker 6: Fed's gonna do, and they're not gonna do anything. They're
[1:43] Speaker 6: not gonna raise ye.
[1:44] Speaker 2: Or lower in terms of policy, right, and.
[1:47] Speaker 6: There's no new economic projections and there's no new dot plot.
[1:51] Speaker 6: So it could very well be that that's the first
[1:54] Speaker 6: question somebody asks, where are you going from here? Powell
[1:59] Speaker 6: has already said said that he will stay on as
[2:02] Speaker 6: chairman pro tem of the Board of Governors, and he
[2:06] Speaker 6: would stay on as chair of the Open Market Committee,
[2:09] Speaker 6: which makes the interest rate decisions, because he was elected
[2:13] Speaker 6: by the Open Market Committee in January to a full
[2:16] Speaker 6: year term, so they don't have to do anything, they
[2:19] Speaker 6: just continue on, and so he would continue on in
[2:22] Speaker 6: that role until worsh is confirmed, and members of the
[2:27] Speaker 6: Open Market Committee and Board of Governors have said that
[2:30] Speaker 6: once Warsh is confirmed then they will elect him as
[2:36] Speaker 6: chair of the Open Market Committee.
[2:38] Speaker 2: All right, well, let's talk about the decision itself. On Wednesday,
[2:43] Speaker 2: you mentioned that there's probably not going to be any
[2:46] Speaker 2: change in policy, no changes to the outlook as well.
[2:49] Speaker 2: What is the policy environment for the FED right now,
[2:53] Speaker 2: given all the uncertainties around what's happening in the war
[2:56] Speaker 2: in the Middle East, what that could mean for inflation,
[2:59] Speaker 2: what it could mean for the labor market as well.
[3:01] Speaker 6: They will always tell you, under any circumstance that their
[3:04] Speaker 6: monetary policy is well positioned to handle whatever happens. That's
[3:09] Speaker 6: sort of a standard line, But in this case it's true.
[3:12] Speaker 6: There does seem to be a general consensus that there
[3:16] Speaker 6: is still tight. Monetary policy may not be very tight,
[3:21] Speaker 6: and there's disagreement over how tight, but if you're going
[3:25] Speaker 6: to have inflation, where they are now is not a
[3:28] Speaker 6: bad place to be to try to cut off as
[3:31] Speaker 6: much as you can. You can't do anyth about oil prices,
[3:34] Speaker 6: but getting into other parts of the economy, and the
[3:38] Speaker 6: economy seems to be moving along pretty well. We are
[3:42] Speaker 6: not seeing a lot of hiring, but we're not seeing
[3:44] Speaker 6: a lot of firing either. We're still seeing reasonable average
[3:50] Speaker 6: hourly earnings, and consumers are still spending, and of course
[3:53] Speaker 6: business spending on AI type stuff is very strong. So
[3:58] Speaker 6: at this point they're sort of bright where they want
[4:02] Speaker 6: to be, so they don't need to do anything one
[4:04] Speaker 6: way or another.
[4:06] Speaker 2: And given this as the last official policy decision under
[4:10] Speaker 2: Chairman Powell, how would you sum up the Powell legacy?
[4:13] Speaker 2: After all the fights of the president, the fights with inflation,
[4:16] Speaker 2: after the pandemic, and after tariffs, how do you sum
[4:19] Speaker 2: up a Powell FED?
[4:22] Speaker 6: I think he did a very good job of managing
[4:26] Speaker 6: the FED and following two very academic chairs who were
[4:33] Speaker 6: much more steeped in the economics that goes into these decisions.
[4:38] Speaker 6: But he is a consensus builder. He is a very
[4:43] Speaker 6: genial person to get along with, so he was able
[4:47] Speaker 6: to pull the committee together. We went for a very
[4:50] Speaker 6: very long period with no descents until we got into
[4:53] Speaker 6: the last year maybe of this, when they started moving
[4:57] Speaker 6: rates again. And so I think he'll be seen as
[5:00] Speaker 6: a fairly effective chair. Now there are some obviously blots
[5:04] Speaker 6: on his record. They were slow to recognize that inflation
[5:08] Speaker 6: was not transitory in twenty twenty one, and they did
[5:13] Speaker 6: move quickly after that. And they also have had a
[5:16] Speaker 6: difficulty with their communications. They switched to saying more than
[5:23] Speaker 6: just maximum employment, we want maximum and inclusive employment back
[5:28] Speaker 6: in twenty and twenty and that helped contribute to the
[5:32] Speaker 6: inflation because they let inflation get a little higher to
[5:36] Speaker 6: do that and it got out of control. And also
[5:39] Speaker 6: then they haven't really figured out how they want to
[5:43] Speaker 6: talk to the markets. The dot plot has a lot
[5:47] Speaker 6: of problems with it, and there is a lot of
[5:50] Speaker 6: Fed speak out there. Kevin Worsch wants to rain it
[5:53] Speaker 6: all in, But on balance, Powell gets very strong marks
[5:58] Speaker 6: from people, especially over the last year or so when
[6:00] Speaker 6: he's had to defend the FED against the President. He
[6:04] Speaker 6: gets a lot of praise from people within the FED
[6:07] Speaker 6: for doing that.
[6:08] Speaker 2: Thanks for this, Mike, looking forward to your coverage on Wednesday.
[6:11] Speaker 2: That's Bloomberg International Economics and Policy correspondent Michael mckeeth, head
[6:15] Speaker 2: of the April rate decision from the Fed Wednesday afternoon,
[6:19] Speaker 2: two pm Wall Street Time. Of course, we will have
[6:21] Speaker 2: complete coverage across Bloomberg Radio and television and on the
[6:24] Speaker 2: Bloomberg Business app. Let's take a look now, add some
[6:27] Speaker 2: stocks to watch in the week ahead. I'm Nathan Hager,
[6:29] Speaker 2: joined by Bloomberg Intelligence Global Head of Tech Research, Man Deep, saying,
[6:33] Speaker 2: because it really is all about tech this week, I
[6:37] Speaker 2: think we're hearing from what five of the mag seven
[6:39] Speaker 2: when it comes to earnings, and a lot of them
[6:42] Speaker 2: are just this Wednesday, right, Man Deep.
[6:46] Speaker 7: They are.
[6:46] Speaker 8: And look, I think what Tesla has shown us is,
[6:52] Speaker 8: you know, capex increases are still a big focus in
[6:56] Speaker 8: terms of what these companies are doing around the AI
[7:00] Speaker 8: infrastructure build out, and so that's a common thread across
[7:04] Speaker 8: all of them.
[7:04] Speaker 9: Yeah.
[7:05] Speaker 2: Absolutely, Well, let's start off with one of the biggest names.
[7:09] Speaker 2: Microsoft is one of them that's reporting on Wednesday. We
[7:13] Speaker 2: just heard this past week that they're offering voluntary buyouts
[7:16] Speaker 2: to a bunch of their workforce. What does that tell
[7:19] Speaker 2: you about what we could get when it comes to
[7:21] Speaker 2: the earnings.
[7:22] Speaker 8: Look, I think with Microsoft, clearly the stock has been
[7:26] Speaker 8: under pressure because of their open AI partnership and you
[7:30] Speaker 8: know just the way it's evolving, and when it comes
[7:34] Speaker 8: to the top line growth, I think what investors are
[7:38] Speaker 8: waiting for is what kind of lift they are going
[7:42] Speaker 8: to see in their Azure segment from all these AI workloads.
[7:47] Speaker 8: I mean last quarter Google had that ten percentage point
[7:52] Speaker 8: gap where Google grew forty eight percent and Microsoft's was
[7:55] Speaker 8: thirty eight percent growth. So Microsoft really needs that lift
[8:00] Speaker 8: in that Azure growth line and that's where I think
[8:06] Speaker 8: investors will be comparing them against the likes of Amazon
[8:10] Speaker 8: Aws and Google Cloud, and to me, that's what they
[8:15] Speaker 8: need to show that they can deliver on that Azure
[8:18] Speaker 8: growth numbers.
[8:20] Speaker 2: Are you expecting that we're going to hear much more
[8:22] Speaker 2: from Microsoft about their capex plans after what we heard
[8:25] Speaker 2: from Tesla. I mean, they were a big part of
[8:26] Speaker 2: that six hundred and fifty billion dollar number we heard
[8:29] Speaker 2: from the hyperscalers just a few months ago.
[8:32] Speaker 8: Yeah, I wouldn't be surprised if that number is revised upward. Now.
[8:36] Speaker 8: It won't be a big revision, but clearly, as things stand,
[8:42] Speaker 8: everyone seems to be compute constrained. That's what we have
[8:46] Speaker 8: heard from Anthropic and these leading labs and Microsoft. If
[8:51] Speaker 8: they are able to show that sequential acceleration and Azure growth,
[8:56] Speaker 8: that could be the justification to raise their capex. But otherwise,
[9:01] Speaker 8: I think the stock may react negatively if they end
[9:04] Speaker 8: up raising their capex.
[9:06] Speaker 2: Also Wednesday, we're going to hear from Google parent Alphabet.
[9:09] Speaker 2: They're a big part of this kapex story as well,
[9:12] Speaker 2: and they just came out with a new generation TPU chip.
[9:16] Speaker 2: Where is Google Cloud in the AI race, Mandy.
[9:20] Speaker 8: Yeah, Google Cloud clearly has seen an acceleration, and so
[9:25] Speaker 8: I expect, you know, this quarter to be the growth
[9:28] Speaker 8: and Google Cloud to be closer to fifty percent. And look,
[9:33] Speaker 8: they've just launched two new chips TPUs, one for training,
[9:39] Speaker 8: the other one for inferencing, and they signed that big
[9:42] Speaker 8: deal three point five gigabard deal with Anthropic and Broadcom.
[9:47] Speaker 8: So from that perspective, there is a lot of momentum
[9:50] Speaker 8: they have with their chips and cloud, and their margins
[9:54] Speaker 8: in the cloud business also seem to be expanding. The
[9:57] Speaker 8: only thing which I'm not sure about is their search business,
[10:01] Speaker 8: because there are puts and takes. I mean, clearly there
[10:05] Speaker 8: is some search volume pressure because these chat pots, whether
[10:09] Speaker 8: it's Open Ai or Nthropic Cloud, they are taking some
[10:13] Speaker 8: volume of search queries away from Google. At the same time,
[10:19] Speaker 8: they don't really have an AD's kind of surface to
[10:24] Speaker 8: their queries. So from that perspective, Google should be insulated,
[10:28] Speaker 8: but I would be curious to see how they end
[10:30] Speaker 8: up doing in their core search business in terms of
[10:33] Speaker 8: the top line growth.
[10:34] Speaker 2: I keep seeing Google Gemini try to sneak into my
[10:37] Speaker 2: search results as well. Where do they factor in when
[10:40] Speaker 2: it comes to some of the other chat pots.
[10:43] Speaker 8: Yeah, so Gemini will not show you any ads. It's
[10:47] Speaker 8: purely subscription driven. Although Gemini is what's powering their AI
[10:51] Speaker 8: overviews and that's where Google could show a lot more
[10:55] Speaker 8: engagement with their searches and so in turn that could
[11:00] Speaker 8: translate into better ADS growth. But clearly Gemini is the
[11:04] Speaker 8: model that's powering all of their llms across the family
[11:08] Speaker 8: of apps, so whether it's YouTube or search or any
[11:12] Speaker 8: other surface they have. So from that perspective, you know,
[11:15] Speaker 8: Gemini standalone contribution may not be that much, but clearly
[11:19] Speaker 8: it's influencing all the family of apps that Google has.
[11:23] Speaker 2: And also Wednesday we get earnings from meta platforms they're
[11:27] Speaker 2: guiding for what thirty percent revenue growth?
[11:30] Speaker 9: Is that right?
[11:31] Speaker 8: It's phenomenal that upward revisions we have seen on Meta,
[11:35] Speaker 8: partly because they have used their compute capacity for their
[11:40] Speaker 8: ad recommendation systems. So the expectation is that ad pricing
[11:45] Speaker 8: will probably be very strong for someone like Meta, which
[11:49] Speaker 8: is able to target the ads much better than anyone
[11:53] Speaker 8: else in that digital ad ecosystem, and that's what's driving
[11:57] Speaker 8: the expectation for thirty percent growth. But look, they raised
[12:00] Speaker 8: their cap bags. They've talked about how they're releasing a
[12:04] Speaker 8: new model and that will help improve the ad targeting
[12:08] Speaker 8: and engagement further. So high expectations, but they seem to
[12:13] Speaker 8: be doing quite well in terms of that top line
[12:15] Speaker 8: growth in digital ads compared to everyone else.
[12:19] Speaker 2: Happy Tech Wednesday, Man Deep, thanks so much. That's Man
[12:22] Speaker 2: Deep saying, Global head of Tech Research for Bloomberg Intelligence,
[12:26] Speaker 2: and coming up on Bloomberg day Break weekend, we'll look
[12:28] Speaker 2: to another big central bank decision this week from the
[12:31] Speaker 2: Bank of England. I'm Nathan Hager, and this is Bloomberg.
[12:46] Speaker 2: This is Bloomberg day Break Weekend, our global look ahead
[12:49] Speaker 2: at the top stories for investors in the coming week.
[12:51] Speaker 2: I'm Nathan Hager in Washington. Up later in the program,
[12:54] Speaker 2: we'll get you set for the Golden Week celebrations on
[12:57] Speaker 2: the way in Japan. But first, the economic shock spreading
[13:00] Speaker 2: from the Middle East is catching up with central bankers
[13:03] Speaker 2: across Europe. The Bank of England meets next week and
[13:06] Speaker 2: the Spider week jobs market and sluggish UK growth, people
[13:09] Speaker 2: suspect policymakers are turning hawkish. A renewed surge in oil prices,
[13:13] Speaker 2: driven by conflict between the US and Iran is what's
[13:16] Speaker 2: making rate setters worry. Let's get more from Bloomberg Daybreak.
[13:19] Speaker 2: You're a banker, Caroline Hepger in London.
[13:22] Speaker 3: Nathan Sarah Breden has said the UK may be in
[13:25] Speaker 3: for a rocky ride over the next few months. The
[13:27] Speaker 3: economist and Deputy Governor of the Bank of England thinks
[13:31] Speaker 3: the conflict in the Middle East could cause shocks to growth,
[13:34] Speaker 3: inflation and interest rates all at the same time. She's
[13:38] Speaker 3: not the only one. The hawkish shift in rhetoric from
[13:41] Speaker 3: Bank of England policymakers was so stark. At their last meeting,
[13:46] Speaker 3: Governor Andrew Bailey took to the press to directly talk
[13:49] Speaker 3: down the markets.
[13:51] Speaker 9: That's getting ahead of whether the commistee as frankly, the committee,
[13:54] Speaker 9: it was very clear and it was obviously unanimous vote
[13:56] Speaker 9: this time actually that the right thing to do was
[13:58] Speaker 9: to hold the right thing to do is to pause,
[14:01] Speaker 9: to take a very close you know, give a very
[14:03] Speaker 9: close watch on what's going on. But also this is
[14:06] Speaker 9: a very volatile situation. I think by the next time
[14:09] Speaker 9: we meet, which will be our next decision is at
[14:11] Speaker 9: the end of April, a lot will have happened and
[14:15] Speaker 9: I can't predict what I can't possibly none of us
[14:17] Speaker 9: can predict what it will be. But it is a
[14:19] Speaker 9: very volatile situation. So I would caution really against getting
[14:22] Speaker 9: ahead of that position, which is we held.
[14:25] Speaker 3: This time Andrew Bailey speaking there. But the UK's high
[14:28] Speaker 3: reliance on gas imports and difficult fiscal position means many
[14:33] Speaker 3: are wondering what the central bankers will say when they
[14:36] Speaker 3: meet next week. Joining us now is Bloomberg's chief UK economist,
[14:40] Speaker 3: Dan Hanson and Alice Gledhill are FX and Rates report
[14:44] Speaker 3: a based in London. Welcome to both of you and
[14:46] Speaker 3: thanks for your time.
[14:47] Speaker 7: Dan.
[14:48] Speaker 3: What is the state of the UK economy going into
[14:50] Speaker 3: this Bank of England meeting?
[14:52] Speaker 5: So we've had since the Bank last met, I mean
[14:54] Speaker 5: we have obviously had the meeting in March, since the
[14:57] Speaker 5: Bank last put together a forecast which is in FI
[15:00] Speaker 5: and obviously prior to the war. We've had quite a
[15:02] Speaker 5: lot of information. I would say it's been on it's
[15:05] Speaker 5: probably been on the hawkish side. So you've had You've
[15:08] Speaker 5: had some information about GDP that shown the economy is
[15:12] Speaker 5: growing a little bit faster. You've had some pmis that
[15:15] Speaker 5: showed the economy took a hit in March but perhaps
[15:18] Speaker 5: rebounded a little bit in April, which is obviously really
[15:21] Speaker 5: interesting against the backdrop of the war. And we've also
[15:26] Speaker 5: had data on the labor market that showed, I think
[15:30] Speaker 5: prior to the war that you could argue that the labor
[15:32] Speaker 5: market was stabilizing. There may have been a hit in March.
[15:36] Speaker 5: And finally, of course you've had CPI inflation, which has
[15:38] Speaker 5: picked up as many economists expected because of what we've
[15:42] Speaker 5: seen in oil prices. That has fed into fuel prices.
[15:45] Speaker 5: So going into the meeting the Bank of England, you're
[15:50] Speaker 5: looking at it and you're thinking the economy is probably
[15:53] Speaker 5: in okaysh shape. There's probably some slack in the labor market,
[15:59] Speaker 5: but we know there is this shot coming down the pipeline.
[16:02] Speaker 5: And the thing I would say about it, particularly thinking
[16:04] Speaker 5: about the demand side of the economy, is that we
[16:08] Speaker 5: know the hit is going to be felt most by households,
[16:12] Speaker 5: and the story of the past few years is that
[16:14] Speaker 5: households have experienced a lot of shocks, but they've also
[16:17] Speaker 5: been very cautious. So I think the Bank has got
[16:20] Speaker 5: this real challenge when it's putting together it's new forecast
[16:23] Speaker 5: between capturing this big inflation shock we know that's coming,
[16:27] Speaker 5: but also the demand side is the real uncertainty and
[16:30] Speaker 5: how big a hit the economy is going to take.
[16:33] Speaker 5: If you read our forecast, read the IMF forecast, it's
[16:36] Speaker 5: fairly substantial. And I think that's a really important framing
[16:39] Speaker 5: for how the bank would then respond to that to
[16:42] Speaker 5: the shock.
[16:43] Speaker 3: Yeah, and given all of that uncertainty, there's also the
[16:48] Speaker 3: other point that has to be made. Unlike the Federal Reserve,
[16:50] Speaker 3: the Bank of England doesn't have the kind of strict
[16:52] Speaker 3: dual mandate, but there is obviously a worry about the
[16:55] Speaker 3: impact on growth. If we get a much more hawkish
[16:58] Speaker 3: NPC that cancerned about the labor market, at what point
[17:02] Speaker 3: do they start to weigh on the Bank of England.
[17:06] Speaker 5: Yeah, that I mean that balance is crucial. So I
[17:09] Speaker 5: think if you think about how this shock might permeate
[17:13] Speaker 5: through the UK economy. We know we're going to get
[17:16] Speaker 5: a big rise in energy bills and also in fuel costs.
[17:20] Speaker 5: We're seeing that already. What will be most important for
[17:24] Speaker 5: the Bank of England to judge is whether those shocks
[17:28] Speaker 5: feed through into wage setting, into price setting. In the
[17:33] Speaker 5: Bank of England vernacular, it's second round effects, that's what
[17:36] Speaker 5: they call it. And the interesting point here is that
[17:41] Speaker 5: the extent to which those second round effects can materialize
[17:46] Speaker 5: stems or is very closely linked to the state of
[17:49] Speaker 5: the labor market. So if the labor market's type workers
[17:52] Speaker 5: can bid up wages, firms feel confident about passing on
[17:56] Speaker 5: higher prices, so they give those give it to those
[18:00] Speaker 5: higher wage demands. I think the situation we find ourselves
[18:03] Speaker 5: in at the moment, though, is a different situation where
[18:06] Speaker 5: you have a loose labor market, and particularly Governor Bailey
[18:10] Speaker 5: has been talking about firms telling him that they have
[18:13] Speaker 5: very limited pricing power. So I think actually that's a
[18:16] Speaker 5: very important consideration, and it goes back to my answer
[18:18] Speaker 5: to the first question is that this is looking very
[18:22] Speaker 5: much like a trade off for the Bank of England,
[18:25] Speaker 5: and I think the bar for hiking interest rate into
[18:28] Speaker 5: this shock is much much higher than it was, say
[18:31] Speaker 5: in twenty twenty two, when the labor market was tight.
[18:34] Speaker 5: Obviously the inflation shock was bigger, but the key point
[18:36] Speaker 5: was the labor market was tight and there was an
[18:38] Speaker 5: imbalance between supply and demand in the economy.
[18:41] Speaker 3: Let's turn our attention to the guilt market and what
[18:45] Speaker 3: investors and traders think about this. Alice, this is the
[18:48] Speaker 3: focus of your work. We know that guilt markets have
[18:52] Speaker 3: been very volatile and have reacted quite strongly to the
[18:56] Speaker 3: Ivan War. How do you see the setup for the
[18:58] Speaker 3: guilt market ahead of the Bank of England's meeting.
[19:02] Speaker 10: It's a fascinating one because there's been such a u
[19:04] Speaker 10: turn in terms of where the market was kind of
[19:06] Speaker 10: coming into March and before the war to where it
[19:10] Speaker 10: is now. So I think before for the start of March,
[19:12] Speaker 10: before the US struck Iran for the first time markets
[19:15] Speaker 10: for respecting I think around two interest rate cuts this
[19:18] Speaker 10: year and that was a key reason why people have
[19:20] Speaker 10: been piling into gilts. It was really popular trade before
[19:23] Speaker 10: the war. I think what we've seen since then and
[19:26] Speaker 10: this is really a global story. It's not just the UK,
[19:28] Speaker 10: but trade has flipped to pricing in interest rate hikes
[19:32] Speaker 10: because of the warriors around inflation, we've seen a pullback
[19:34] Speaker 10: from some of the more extream levels. So I think
[19:36] Speaker 10: at the worst of the route earlier in March, we
[19:38] Speaker 10: saw as much as for interest rate hikes priced from
[19:41] Speaker 10: the BOE this year back to about sort of fifty
[19:43] Speaker 10: or sixty basis points. There's sort of two maybe through
[19:46] Speaker 10: interest rate hikes this year starting from sort of the
[19:48] Speaker 10: middle of the year. I don't think anyone thinks they're
[19:50] Speaker 10: going to hike this coming week. For gilts, it's yeah,
[19:54] Speaker 10: it's an interesting one. I mean, we've seen a massive
[19:56] Speaker 10: sell off. Gilts have been hit worse than piers, US treasuries,
[20:01] Speaker 10: bins even and I think there's a few reasons for that.
[20:03] Speaker 10: I think partly there's sort of technical reasons. So they
[20:06] Speaker 10: were this really popular trade before the war, so I
[20:09] Speaker 10: think naturally you've seen more selling. But also guiltza just
[20:13] Speaker 10: what we call a high beater asset class, like they're
[20:15] Speaker 10: just particularly sensitive. They tend to sell off more compared
[20:19] Speaker 10: to you know, sort of boons or oats for example,
[20:23] Speaker 10: like French government bonds, So I think that's part of
[20:25] Speaker 10: it as well. I think right now the market is
[20:28] Speaker 10: just waiting to see sort of what the Bank of
[20:30] Speaker 10: England says on Thursday. You know, lots of the points
[20:34] Speaker 10: that Dan spoke to you there. So that's yeah, that's
[20:36] Speaker 10: definitely the next focal point for the market.
[20:39] Speaker 3: Okay. There's also the view about whether the Iran linked
[20:44] Speaker 3: inflation shop is really even something that the central Bank
[20:47] Speaker 3: can address, or whether actually the bigger issue is the
[20:50] Speaker 3: government's fiscal position, given that they are under pressure, will
[20:54] Speaker 3: surely continue maybe to be under pressure to support businesses
[20:58] Speaker 3: and households as energy prices go up.
[21:00] Speaker 10: Yeah, exactly. The market is so sensitive to the UK
[21:03] Speaker 10: fiscal story, and I think that's partly. You know, it
[21:06] Speaker 10: does have a lot of debt, it does need to
[21:07] Speaker 10: get it down. But I think it's also sort of
[21:09] Speaker 10: a spillover from the trust scenario back in twenty twenty two.
[21:14] Speaker 10: I think what's interesting this time round is not just
[21:17] Speaker 10: in the UK, but you've seen this across continental Europe
[21:20] Speaker 10: as well, is that governments are trying really hard to
[21:23] Speaker 10: be restrained in their fiscal response. Is kind of how
[21:26] Speaker 10: much they increase public spending. I think they're just trying
[21:30] Speaker 10: their best to try to try and ride the war out.
[21:33] Speaker 10: Because we saw back in twenty twenty two to twenty
[21:35] Speaker 10: three the inflationary impact of sort of heavy public spending
[21:39] Speaker 10: to support economies through an energy supply shock. So so
[21:43] Speaker 10: far we've seen the long end of the guilt YELK curve,
[21:46] Speaker 10: which is more sensitive to sort of fiscal pressures, hasn't
[21:50] Speaker 10: massively underperformed the short end. If anything. Actually it's been
[21:52] Speaker 10: the shorter dated bonds that have been hit worse, and
[21:55] Speaker 10: that's because of the repricing we've seen in terms of
[21:57] Speaker 10: interest rate hikes for this year. I think going forward,
[22:00] Speaker 10: if the government has to start announcing sort of more
[22:03] Speaker 10: fiscal support for households of businesses, if that indicates that
[22:06] Speaker 10: we might get more borrowing, then yes, I think we'll
[22:08] Speaker 10: start to see that at four three to guild markets more.
[22:11] Speaker 3: Okay, that's interesting, Alice Dan, A thought for you on
[22:14] Speaker 3: how you are thinking about the economic impact of the
[22:18] Speaker 3: Iran war. I suppose everybody is also looking to historic precedents.
[22:23] Speaker 3: I mean we've mentioned twenty twenty two, there are other
[22:25] Speaker 3: previous energy price shocks. How do you think about that
[22:29] Speaker 3: as you go about your analysis of the UK economy.
[22:33] Speaker 5: Yeah, so, I think you know twenty twenty two is
[22:35] Speaker 5: very sort of it's you know, it's the most recent
[22:39] Speaker 5: one we've had, and it's one that a lot of
[22:41] Speaker 5: a lot of people go back to is it the
[22:44] Speaker 5: right Is it the right one to look at? I'm
[22:47] Speaker 5: not sure, And it comes back to some of the
[22:50] Speaker 5: reasons we've sort of mentioned at the start. I mean,
[22:52] Speaker 5: first of all, the scale of the shock. I mean,
[22:54] Speaker 5: you only have to plot gas prices to see the
[22:58] Speaker 5: difference in the scale of the shop that we're facing.
[23:00] Speaker 5: It's much much smaller, and thankfully, thankfully it's much much
[23:02] Speaker 5: smaller at least so far. And that's you know, that's clearly,
[23:07] Speaker 5: that's clearly good news. And I think the other difference
[23:09] Speaker 5: is the backdrop of the labor market and the backdrop
[23:14] Speaker 5: for the economy generally. I mean, I said at the
[23:16] Speaker 5: start of the year, there seems to have been a
[23:17] Speaker 5: bit of a turnaround and the economy is sort of
[23:19] Speaker 5: holding up. But if you look at the level of
[23:22] Speaker 5: GDP rather than thinking about growth, you know, the economy
[23:25] Speaker 5: is below what we would call its potential level. So
[23:27] Speaker 5: there's spec capacity in the economy that again is very
[23:31] Speaker 5: different to twenty twenty two. So I think, you know,
[23:34] Speaker 5: there are sort of various channels through which this impacts
[23:38] Speaker 5: the economy, some of which we have a very I think,
[23:41] Speaker 5: I would say a very good handle on. So the
[23:43] Speaker 5: direct impact of higher energy prices on inflation. I think
[23:48] Speaker 5: for me, the big uncertainty is one how much of
[23:51] Speaker 5: this feed through, as I was talking about second round
[23:53] Speaker 5: effects feed through to wages. The sort of baseline is
[23:56] Speaker 5: that there isn't much feed through because of the state
[23:59] Speaker 5: of the And the other thing is about consumers and
[24:04] Speaker 5: how they respond to this, And it goes to what
[24:05] Speaker 5: Alice was saying, you know, if the government steps in
[24:07] Speaker 5: with fiscal support, it's going to change the dynamic. Again,
[24:11] Speaker 5: That's what changed the dynamic in twenty twenty two, where
[24:13] Speaker 5: there was this massive fiscal support not just in the
[24:15] Speaker 5: UK but all over Europe, and that changed the dynamic.
[24:19] Speaker 5: And I think that, you know, arguably staved off the
[24:21] Speaker 5: recession that everyone thought was coming. So I think that
[24:25] Speaker 5: there are a lot of things going on, but I
[24:28] Speaker 5: think for me, at least, the nature of this shock
[24:30] Speaker 5: and the shock that the Bank of England has to
[24:32] Speaker 5: think about, is one that presents a sharper trade off.
[24:36] Speaker 5: So it's yes, it's higher inflation, but I think that
[24:40] Speaker 5: there's not much been spoken about in terms of the
[24:41] Speaker 5: demand side of this and the growth impact of this,
[24:44] Speaker 5: and I think that that's just going to be just
[24:46] Speaker 5: as important as it thinks about how it responds.
[24:48] Speaker 3: Yeah, I think it's going to be very interesting meeting
[24:51] Speaker 3: from the Bank of England and also in the coming
[24:54] Speaker 3: few months to see how the Iran war price spike
[24:58] Speaker 3: in energy costs is going to affect everybody. Dan, thank
[25:01] Speaker 3: you so much for being with me. That is our
[25:03] Speaker 3: chief UK economist and Alice Gledhill, ore FX and rates
[25:06] Speaker 3: reporter based here in London. Thank you. I'm Caroline Hepkee
[25:09] Speaker 3: here in London. You can catch us every weekday morning
[25:12] Speaker 3: for Blueberg Daybreak. You're at the beginning at six am
[25:14] Speaker 3: in London. That's one am on Wall Street.
[25:17] Speaker 2: Nathan, Thanks Caroline, and coming up on Bloomberg day Break weekend,
[25:20] Speaker 2: we get you set for Golden Week in Japan. I'm
[25:23] Speaker 2: Nathan Hager and this is Bloomberg. I'm Nathan Hager in
[25:37] Speaker 2: Washington with your global look ahead of the top stories
[25:39] Speaker 2: for investors in the coming week. It's going to be
[25:41] Speaker 2: a Golden Week in Japan, that's what they call it.
[25:44] Speaker 2: With a stretch of national holidays on tap in the
[25:47] Speaker 2: upcoming days. For more, let's go to Doug Prisner, host
[25:49] Speaker 2: of the Bloomberg Daybreak Asia podcast.
[25:52] Speaker 4: Thanks Nathan. Golden Week is one of Japan's busiest and
[25:56] Speaker 4: longest holiday seasons. Think of it as several public holidays
[25:59] Speaker 4: over for a week long period. Now, consumer spending typically jumps,
[26:03] Speaker 4: and not surprisingly, travel also usually spikes. Will this year
[26:07] Speaker 4: be any different? For a closer look, let's bring in
[26:09] Speaker 4: Bloomberg's Alice French, who joins us from our studios in Tokyo.
[26:13] Speaker 4: Thank you for taking time. What are we expecting to see?
[26:16] Speaker 4: I think in terms of overall spending this year?
[26:19] Speaker 11: Hi, yeah, I mean, as you say, Golden Week is
[26:21] Speaker 11: always a very busy period for travel, not just outbound
[26:25] Speaker 11: travel but also inbound. You know, we know that we've
[26:28] Speaker 11: seen many years of increasing tourism, but particularly around this period.
[26:32] Speaker 11: I mean, the weather is good, it's sort of before
[26:34] Speaker 11: things get too hot and sweaty, but there should be
[26:37] Speaker 11: some nice sunny days. And obviously, of course the yen
[26:40] Speaker 11: is still down at those really low levels, sort of
[26:43] Speaker 11: you know, not far off the one sixty to the
[26:45] Speaker 11: dollar mark, which is making it very cheap to travel here.
[26:48] Speaker 7: So we do.
[26:49] Speaker 11: Expect strong spending, particularly you know in the touristy areas
[26:52] Speaker 11: of course, Tokyo and Kyoto. The department stores often do
[26:56] Speaker 11: very well out of these holidays from those tax free sales,
[27:00] Speaker 11: but also things like the one hundred yen stores, the
[27:02] Speaker 11: convenience stores, those kind of cheaper ends of the consumer
[27:05] Speaker 11: spectrum as well always get you know, a lot of
[27:08] Speaker 11: popularity at this time. But having said that, we do
[27:12] Speaker 11: know that for sort of going on six months now right,
[27:15] Speaker 11: Tokyo has this ongoing sort of spat with Beijing and
[27:19] Speaker 11: stemming from Takaichi's comments about Taiwan. So it will be
[27:23] Speaker 11: really interesting to see to what extent that kind of
[27:25] Speaker 11: weighs on inbound travel from China during this holiday.
[27:29] Speaker 4: So will most travel be domestic or will there be
[27:32] Speaker 4: some travelers that choose to go out of the country
[27:35] Speaker 4: to places like South Korea and Taiwan.
[27:39] Speaker 11: Well, I think that's the big question, right because as
[27:41] Speaker 11: I mentioned, we obviously have the week yen which is
[27:43] Speaker 11: making it more expensive for you know, Japanese residents to
[27:47] Speaker 11: travel elsewhere. I certainly feel it myself whenever I go
[27:50] Speaker 11: home to London, things are definitely a lot more expensive
[27:53] Speaker 11: and so I think, you know, increasingly Japanese residents are
[27:56] Speaker 11: choosing to stay domestically. Obviously, Japan has a lot of
[28:00] Speaker 11: great tourist spots, you know, coastal areas, hiking and things
[28:03] Speaker 11: all across from you know, Oki nowa down in the south,
[28:05] Speaker 11: up to Hokaido in the north, and so a lot
[28:07] Speaker 11: of people are opting to stay at home, just sort
[28:10] Speaker 11: of do a staycation. I think that those numbers of
[28:13] Speaker 11: outbound travel will be really interesting to see because, yeah,
[28:17] Speaker 11: we don't really know to what extent the week en.
[28:20] Speaker 11: Now that people have sort of got used to it
[28:21] Speaker 11: and settled into this extended period of yen weakness, perhaps
[28:25] Speaker 11: you know, people are starting to dip their toe back
[28:28] Speaker 11: into international travel again. But also, you know, it is
[28:31] Speaker 11: a busy time and everybody is very aware that people
[28:34] Speaker 11: are moving around, and this is kind of peak travel time.
[28:36] Speaker 11: So I think a lot of people actually deliberately stay
[28:38] Speaker 11: at home to sort of avoid the crowds. Right, So
[28:42] Speaker 11: let's see. But I think, you know, if people do
[28:43] Speaker 11: choose to go abroad, like you say, I think it's
[28:45] Speaker 11: more likely that it will be those sort of Asian
[28:48] Speaker 11: closer neighboring countries, not least because the flights are cheaper
[28:51] Speaker 11: as well, and of course everything that's going on globally
[28:54] Speaker 11: Gia politically, with flights, it makes it pretty tricky to
[28:56] Speaker 11: sort of get out of Asia.
[28:58] Speaker 4: Really well, I'm glad you brought that up, because we
[29:00] Speaker 4: can talk about a week currency, but we also have
[29:02] Speaker 4: to talk about higher energy prices. And even before the
[29:05] Speaker 4: war with Iran started, Japan was dealing with high inflation.
[29:09] Speaker 4: Is it much worse now?
[29:11] Speaker 11: One hundred percent? And you know, we know that Japan
[29:13] Speaker 11: and some of its Asian neighbors are the worst hit
[29:16] Speaker 11: by these higher oil prices, right And of course you know,
[29:20] Speaker 11: we actually had A and A one of the domestic
[29:23] Speaker 11: airlines this week saying that they might be increasing their
[29:26] Speaker 11: surcharges because of these oil prices. It's definitely hitting flight prices,
[29:30] Speaker 11: but like you say, it's also just hitting everyday life.
[29:33] Speaker 11: I certainly feel it here in Tokyo. As you mentioned,
[29:35] Speaker 11: we've of course had inflation here for you know, a
[29:38] Speaker 11: couple of years now, but it is really starting to bite.
[29:41] Speaker 11: And it's not just gasoline and things. It's you know,
[29:43] Speaker 11: it's hitting things like plastics. We're seeing shortages of things
[29:47] Speaker 11: like home goods. Because of obviously hold ups in in
[29:50] Speaker 11: the strait of home mus and yeah, it is. It
[29:52] Speaker 11: is really starting to bite, and I think that will
[29:54] Speaker 11: also probably affect people's travel plans and how they're spending
[29:57] Speaker 11: their time, right. People are trying to sort of cut
[29:59] Speaker 11: costs and save where they can.
[30:01] Speaker 4: Well, that's an interesting point as well, because you were
[30:03] Speaker 4: talking a moment ago about staycations and I'm wondering if
[30:06] Speaker 4: there's also kind of a growing preference for more savings.
[30:10] Speaker 11: Generally speaking, I think so, yeah, there's definitely a preference
[30:14] Speaker 11: for more savings. And also I think we have been
[30:17] Speaker 11: seeing more people getting into investment, right, I mean not
[30:20] Speaker 11: just since the war, but but previously too, but particularly
[30:23] Speaker 11: in the last few months and since we've come into
[30:25] Speaker 11: twenty twenty six. You know, the stock market is looking
[30:28] Speaker 11: quite attractive, and there is sort of, I think a
[30:30] Speaker 11: bit of a conflict, right of what you're seeing in
[30:32] Speaker 11: your everyday life with prices going up and you know
[30:35] Speaker 11: the word, you know, potential recession and things being flung around.
[30:38] Speaker 11: But then you look at the stock market and things
[30:41] Speaker 11: are doing pretty well.
[30:42] Speaker 12: Right.
[30:42] Speaker 11: We've seen the Nike up at another all time high
[30:44] Speaker 11: and in recent weeks and I do think a lot
[30:46] Speaker 11: of people are kind of starting to consider stock investment
[30:49] Speaker 11: as that one form of saving. We know that, you know,
[30:53] Speaker 11: wages have been rising here but not quite keeping pace
[30:56] Speaker 11: with inflation for a lot of workers, and so you know,
[30:59] Speaker 11: invest and savings are starting to look increasingly attractive, and
[31:03] Speaker 11: domestic stocks look like a good option for a lot
[31:05] Speaker 11: of people because of the valley that we've seen.
[31:07] Speaker 4: So when I think of holidays, I think of food.
[31:10] Speaker 4: What are food prices like right now in Japan?
[31:13] Speaker 11: Yeah, that's a good question. I mean, Japan is known
[31:16] Speaker 11: and a lot of Japanese brands are known for sort
[31:18] Speaker 11: of keeping their prices the same and keeping them cheap.
[31:22] Speaker 11: And interestingly, actually there's a very popular chain here which
[31:25] Speaker 11: actually sells Italian food, so they tell you know, they
[31:27] Speaker 11: sell pasta, pizza, wine, but with a bit of a
[31:30] Speaker 11: sort of Japanese twist. It's called size Edia. They do
[31:33] Speaker 11: have some shops in other countries too, but they're very
[31:36] Speaker 11: big here and they've been hitting headlines in recent weeks
[31:39] Speaker 11: because they've managed to somehow keep their prices low. I mean,
[31:43] Speaker 11: you can get a bowl of pasta there for four
[31:45] Speaker 11: hundred gm, which is maybe two dollars fifty, which is
[31:49] Speaker 11: pretty crazy and it's nice quality. So these companies kind
[31:52] Speaker 11: of trying to keep trying all they can to keep
[31:54] Speaker 11: the prices down because they know that that is what
[31:56] Speaker 11: consumers obviously have you been used to for so many
[31:59] Speaker 11: day decades, But certainly in the supermarkets, in the convenience stores,
[32:03] Speaker 11: we are seeing those prices go up, prices of kind
[32:06] Speaker 11: of raw fruits and vegetables, but also particularly imported goods, right,
[32:09] Speaker 11: And I think that's really hitting the supermarket providers too.
[32:12] Speaker 11: And I do think that some people, you know, I've
[32:14] Speaker 11: heard from just friends that people are sort of cutting
[32:16] Speaker 11: down on eating out, trying to you know, be a
[32:19] Speaker 11: little more cust cutting when it comes to the cooking.
[32:22] Speaker 11: And again, I think that will probably impact how people
[32:25] Speaker 11: make their their Golden Week plans this year.
[32:27] Speaker 4: So given these circumstances, I'm curious as to whether or
[32:29] Speaker 4: not the government is doing anything unusual to try to
[32:32] Speaker 4: stimulate maybe a little bit more positive sentiment or increase
[32:37] Speaker 4: consumer confidence in any way.
[32:40] Speaker 11: I mean, specifically around the war and obviously all of
[32:42] Speaker 11: these jitters that we're feeling around oil supply. Taekayuchi, the
[32:46] Speaker 11: Prime Minister, has been putting out, you know, a lot
[32:48] Speaker 11: of statements about don't worry, we do have these reserves,
[32:51] Speaker 11: we have enough, you know, oil reserves for however many months.
[32:53] Speaker 11: We do have reserves of naptha, this feedstock, which is
[32:56] Speaker 11: so important for plastic. I think she said we have
[32:58] Speaker 11: around four months work of supply. But you know, as
[33:01] Speaker 11: much as the government obviously tries to reassure people, when
[33:04] Speaker 11: you also have companies coming out publicly saying that they
[33:08] Speaker 11: are dealing with these shortages and having to raise prices,
[33:10] Speaker 11: that obviously does make people feel a bit worried. Now,
[33:13] Speaker 11: Takaichi did come to Pama with a promise to cut
[33:16] Speaker 11: the consumption tax temporarily to zero, which she has said
[33:20] Speaker 11: that she is going to move forward with, and I
[33:22] Speaker 11: think that was a big reason that she actually was elected. Now,
[33:25] Speaker 11: of course she did get that mandate before the war
[33:28] Speaker 11: broke out, but I think it's now even more relevant
[33:31] Speaker 11: and probably even more popular if she is able to
[33:33] Speaker 11: do that because of, you know, the rising cost of
[33:36] Speaker 11: living that people are really feeling bite them right now.
[33:39] Speaker 4: So when I think of Golden Week in China, I
[33:41] Speaker 4: think of a lot of gift giving as a part
[33:43] Speaker 4: of the celebrations, and I'm wondering whether the same is
[33:46] Speaker 4: true in Japan, where we will see whether or not
[33:49] Speaker 4: they're tokens or something a little bit more luxurious, whether
[33:52] Speaker 4: there is a little bit of exchange of gifts happening
[33:55] Speaker 4: during this holiday period.
[33:56] Speaker 7: Yeah.
[33:57] Speaker 11: I mean, look, everybody is going to be going home
[33:59] Speaker 11: to their pa, parents and their grandparents, particularly from the
[34:01] Speaker 11: big cities to the kind of more rural farming areas, right,
[34:05] Speaker 11: and of course they will be taking you know, it's
[34:07] Speaker 11: traditional to take and on my iya a souvenir from
[34:10] Speaker 11: where you live and bring it to your family. So
[34:12] Speaker 11: certainly those kind of souvenir providers, which particularly you know,
[34:15] Speaker 11: the fancy department stores in Tokyo, they know that this
[34:17] Speaker 11: period is coming up and they will be packaging up
[34:20] Speaker 11: you know, cookies and chocolates and things for people to
[34:23] Speaker 11: take home to their families. And I think that always
[34:25] Speaker 11: leads to a little spike in in that sort of spending.
[34:28] Speaker 11: We do also have Children's Day, of course, and I
[34:30] Speaker 11: think a lot of parents and grandparents like to spoil
[34:33] Speaker 11: the kids on that special day. So I think, you know,
[34:35] Speaker 11: we could see some uptick in spending there, but again
[34:38] Speaker 11: it will it'd be interesting to see how much the
[34:40] Speaker 11: cost cutting element comes in and whether we might see
[34:42] Speaker 11: perhaps a slightly smaller bump than we usually would do.
[34:45] Speaker 4: Alice will leave it there. Thank you so very much
[34:47] Speaker 4: for helping us preview Golden Week in Japan. Bloomberg's Alice
[34:50] Speaker 4: French from our studio in Tokyo. We go to China
[34:53] Speaker 4: next where the twenty twenty six Beijing International Automotive Exhibition
[34:57] Speaker 4: is underway, and that's where we caught up with Han
[35:00] Speaker 4: Ceo Jose Munos, who spoke with Bloomberg Steven Engel.
[35:04] Speaker 7: Are you still interested though a buying Momenta.
[35:06] Speaker 13: We are not talking about by Momenta. We are holders
[35:09] Speaker 13: of Momenta and utilizing their technology. We have some more meetings,
[35:12] Speaker 13: say going on.
[35:13] Speaker 7: How about other partnerships.
[35:14] Speaker 12: There was Korean media reports about possible partnering with x
[35:18] Speaker 12: Pound as well in using some of their clans driving.
[35:22] Speaker 7: We have ight Geobo Taxis.
[35:24] Speaker 13: Like all companies, we have a lot of explorations to
[35:27] Speaker 13: see how we can really take advantage. For the time being,
[35:30] Speaker 13: the official partnerships that we have announced so the partnership
[35:33] Speaker 13: with General Mottos.
[35:34] Speaker 7: We have a partnership with.
[35:35] Speaker 13: Way More so we're gonna launch this year. By Q four,
[35:39] Speaker 13: the robot taxis integrated fully in our HMGMA factory in Savannah, Georgia,
[35:47] Speaker 13: and then more more to follow. We have also a
[35:50] Speaker 13: partnership that we have announced with Amazon, and then we're
[35:53] Speaker 13: always exploring. So I'm sure that there some more things
[35:55] Speaker 13: will happen in the next few months.
[35:57] Speaker 7: I told you it's gonna be rapid fire questions.
[35:59] Speaker 12: Let's move on the Boston Dynamics, the Atlas Robotic Humanoid Robotics.
[36:04] Speaker 7: Obviously that's a big push here.
[36:06] Speaker 12: All the players, including xbang I mentioned going big into
[36:09] Speaker 12: their Iron Humanoid.
[36:10] Speaker 7: Robots, full scale rollout.
[36:13] Speaker 12: I think for you guys, for Boston Dynamics be twenty
[36:15] Speaker 12: twenty eight.
[36:15] Speaker 7: Can you give us an updake? Yes?
[36:17] Speaker 13: So, well, this is really key integral part of OWER
[36:22] Speaker 13: struggling because this is not about showing off what the
[36:25] Speaker 13: robot can do, et cetera. This is about having a
[36:28] Speaker 13: real physical AI and utilize the robots for a purpose. Right, So,
[36:33] Speaker 13: we are designing robots that have capabilities beyond humans, which
[36:36] Speaker 13: are helping humans, which are not substituting humans, and are doing.
[36:41] Speaker 7: Jobs that the humans cannot do.
[36:43] Speaker 13: Right, So the purpose is to increase productivity is to
[36:46] Speaker 13: increase quality and reduce course. We are working to help,
[36:51] Speaker 13: especially on the manufacturing area. We believe that our control company,
[36:57] Speaker 13: Boston Dynamics, is the best in new work in the technology.
[37:00] Speaker 13: We are one of the best, not the beast, in
[37:02] Speaker 13: the world. From manufacturing, we want to ensure that we're
[37:04] Speaker 13: able to produce robots in a mass produce basis, and
[37:09] Speaker 13: we have announced the intention to bruce about thirty thousand
[37:13] Speaker 13: before the end of twenty thirty.
[37:15] Speaker 12: A lot of market chatter about when an IPO for
[37:18] Speaker 12: that would happen.
[37:19] Speaker 7: Do you have any update for us. We're not going
[37:21] Speaker 7: to speculate.
[37:22] Speaker 13: What I can tell you is that the combination of
[37:24] Speaker 13: a solid fundamental say of our company performances plus the
[37:28] Speaker 13: presentation at CS of our real intention with Poston Dynamics
[37:33] Speaker 13: through the Humanoid Atlas has made our stock to grow
[37:37] Speaker 13: by one hundred and twenty percent on.
[37:40] Speaker 7: Just a few months.
[37:41] Speaker 13: These shows that we have really very strong foundations to
[37:45] Speaker 13: continue to grow in the future.
[37:46] Speaker 4: That's HANDI CEO Jose Munios, who spoke with Bloomberg Steven
[37:49] Speaker 4: Engel at the Beijing International Automotive Exhibition. I'm dok Kristner.
[37:54] Speaker 4: You can catch us weekdays for The Daybreak, AASI of podcast.
[37:57] Speaker 4: It's available wherever you get your podcast.
[37:59] Speaker 2: Nathan, Thanks Doug, and that does it for this edition
[38:02] Speaker 2: of Bloomberg Daybreak Weekend. Join us again Monday morning at
[38:05] Speaker 2: five am Wall Street Time for the latest sun markets,
[38:08] Speaker 2: overseas and the news you need to start your day.
[38:11] Speaker 2: I'm Nathan Hager.
[38:12] Speaker 7: Stay with us.
[38:13] Speaker 2: Top stories and global business headlines are coming up right
[38:16] Speaker 2: now

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