This is Bloomberg Daybreak Weekend, our global look at the top stories in the coming week from our daybreak anchors all around the world, and straight ahead on the program Inflation. I'm Tom Busby in New York.
I'm Karin Hety here in London, where we're looking ahead to Europe's insurers reporting earnings admit extreme weather.
I'm Brian Curtis in Hong Kong.
We look forward to Ali Baba's earnings and to see if the environment has really changed.
I'm Daily Liones in Washington, where we're thinking about libor strife and its impact on President Biden.
That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg Eleve them three on New York, Bloomberg ninety nine to one, Washington, DC, Bloomberg one O six one, Boston, Bloomberg nine sixty, San Francisco, DAB Digital Radio, London, Sirius XM one nineteen and around the world on Bloomberg Radio, dot Com and via the Bloomberg Business App.
Good day to you. I'm Tom Busby, and we begin today's program with Inflation, as we await July inflation data coming out this Thursday, and joining us to talk about what do you expect and so much more. Bloomberg's Global Economics and Policy editor Michael McKee. Michael, thanks for being here.
Great to be here again.
Well for starters, what are we expecting to see in the July consumer Prices report?
I hate to do this to you, but I'll start by being a little nerdy here. We are expecting inflation to rise because there was no inflation in July of last year. Inflation came in flat at zero percent change in July of twenty twenty two. So if we get a little inflation, and we're predicting a little inflation, it just is going to make inflation overall go up. So we're expecting at this point a two tenths percent gain for the month of July, which would push inflation up
to three point two percent from three percent. And obviously that is something the Fed is going to look through and analysts are going to look through and not think it's.
A MA your issue.
Well, the Fed last month in June three percent. That was very encouraging. Still, the Fed voted unanimously to hike ats benchmark lending grade twenty five basis points. That's after a slight pause in the previous meeting. What would it take in terms of CPI for the Fed to change up to pause again to know what would we they look for. J.
Powell was asked that question at his news conference after that FED decision, and basically he said it would.
Take several months of a trend.
In other words, if we saw inflation rising for several months, then they would start to think that we have a problem, that inflation is coming back and they need to crack down more. If inflation were to surprise to the downside this month and maybe another month, then the FED might be inclined when they get to the September meeting to hold off again.
And the next day we get producer prizes. What have we seen there there?
We've seen some disinflation.
Producer prices have come down, particularly for energy and food and some of the more basic numbers. The issue is that we have seen oil prices rise in the last couple of weeks, and that could catch It wasn't through much of July, but that could catch on to the end of the survey and we could see end up seeing a little bit of a rise in headline producer prices. We'll be watching the core to see if progress continues
to be made there. Producer prices and consumer prices are not directly linked because there are middlemen in the middle, but they give you a sort of trend idea of which way you're going.
Now, you talked about energy prices. Oil prices back to eighty bucks a barrel. We haven't seen that in several months. Gasoline up twenty five cents a gallon in just the past week. So now there are legitimate factors in this, the heat, opec plus. But is there any end is demand is actually down?
Yeah, the real problem has been time that we've had some refinery outages, especially down south, in part because of the heat, some unusual outages of refineries, and that's made gasoline more scarce. So the price has gone up, and there's a feeling that if and when things cool off down there. I feel lucky because we're in the Northeast where it's not been that hot, But if and when things cool off down there, then we should see the
refineries come back online and prices dropped. So sometime within the next month.
Now, obviously, as opek plus raises the price of the input to this oil, that's going to put some upward pressure on gasoline prices, but nothing to the extent that we have seen. And what would end up happening is gasoline prices would not rise by as much and so you'd see a down trend in headline.
And again, people are not filling up like they were before. People still working from home, don't need the gas, so it's confounding to see it keep going up even though demand has leveled off.
Well, it's been an unusual kind of situation. But what happened after this pandemic. Maybe people are flying more. People are I don't know about taking a train, but taking cruise ships, things like that. We've seen good reports from the airlines, so maybe it isn't a driving summer for a lot of people. And I guess with the heat the way it is, you can understand that.
Well people are traveling. Part of that consumer confidence has moved higher. Fears about a recession. We just had last week Bank of America squash the previous forecast for a recession, but there are signs consumers maybe pulling back on their spending. Let me give you a couple of examples that I saw on that is Altria, the maker of Marlborough saying people are cigarettes are so expensive, they're buying discount smokes.
Pepsi says, people want pepsi, but they're going to dollar stores, They're going to warehouse clubs trying to get a deal. So are we seeing that, you know, are there signs that consumers are being more conservative? Now?
We're kind of getting back to spending levels and spending patterns that we saw before the pandemic.
A lot of people.
Went to the walmarts and dollar stores and things like that, trying to save money in the past on groceries, et cetera.
And they're going back to that behavior.
But this is all kind of what you would expect in a world that's not overstimulated by the government and that is facing higher interest rates and cost of doing business, because if it is trying to tamp down on demand, the issue becomes when it crosses some sort of line and we get to the point where people start to worry about recession and then pull back even more and we get what results in a contraction.
And the clock is ticking on something that could really change that for forty million Americans. That's the looming restart of those federal student loan payments. And that's in October. That's coming up pretty quickly.
That is coming quickly, and it's going to be interesting to see what happens because for a lot of people, they just use that money to spend on other things and in theory still have it.
They just have to reprogram it to paying bills.
But a lot of people took out other loans and use the money they were saving on their student loan bills to pay the other loans. And now they're going to have two sets of bills and one set of payments. And then there's another group that kept paying throughout the entire time period because they figured, well, it's going to come back anyway, and I should make progress on bringing down my loan, especially when they're not charging me interest.
And so how that all plays out isn't going to be clear, but it isn't completely clear, but it is expected to have an impact.
Now I e.
Kondoms sort of extrapolate from the total number of people with loans and their average loan payment and come up with a number like a tenth or two tenths off GDP, so not a huge amount, but enough to make a difference.
Well, a huge amount for people in their twenties and thirties. I would think, well, let's talk a little bit more about the FED and their timeline the next meeting number twentieth right, correct, Well, what do we see between then and now that's going to influence the Fed's next decision as far as consumer spending, inflation, jobs, and more.
Well, I've got the couple of jobs reports like the one we just saw, and we have another one coming up which will give us the August payrolls at the beginning of September, and then the CPI report we're talking about in another CPI report before they meet again, and we'll have one more PCE inflation report along with consumer spending at the end of August. So the Fed will have a couple of months worth the data before they
meet again. And that goes back to the point I made about what jay Pal said that they want to see a couple of months trend to have an idea of where we're really going with this. Are we seeing inflation come down and demand soften? Are we seeing incipient signs of a recession because people are pulling back a lot, or is inflation coming back? Those are the questions that they hope a lot of this data will answer.
And it's not just our central bank, but in England and in the Eurozone they're dealing with very similar situations, but in a way a worse inflation problem over there. Is it influencing the US inflation or is it the opposite? Are we helping them.
At this point we are not helping Europe all that much because the dollar is strong, so their trade is not as vigorous with the US, but it does help the United States some now. Trade in this case, because we're in a post pandemic situation, is less important between the United States and these other countries than it is
among those countries. The European Union trades heavily among itself, and people there have done sort of the same thing that we have in terms of cutting back on goods spending, and companies have cut back on investments and that's hurting them. Manufacturing powers like Germany in France and Italy there because their economies are struggling with the lack of manufacturing, and we've seen that in the PMI numbers, and we see that in the industrial production numbers in the UK. It's
a combination of things. It's a little bit of that, but it's also the bureaucracy brought on by Brexit.
For trade has slowed trade.
And made it more expensive. They're still trying to negotiate new free trade agreements and they haven't had a lot of luck, certainly not with the United States yet, so they have the added costs from that as well. And then they've got a very strong labor market in the same way that the United States does, which also puts upward pressure on prices.
Well, thank you, Michael, And that was Bloomberg's Global Economics and Policy editor Michael McKee. Coming up on Bloomberg day Break weekend, Insurance companies attempt to change with climate change risk lurking. I'm Tom Busby and this is Bloomberg. This is Bloomberg day Break Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Up later in our program earnings from Chinese e commerce giant Ali Baba and the Chinese
government's role in tech in that country. But first, extreme weather gripping many parts of the world, with July likely to be announced as the world's hottest month on record. The impact on society is enormous and on the insurers who navigate climate change. For more, let's say to London and bring in Bloomberg Daybreak Europe anchor Caroline Hepgark Tom.
Europe's big insurers, from Alians to Generali, munich Ree and Zero Insurance, are reporting their earnings in the days ahead. But Europeans are among the least insured against certain types of extreme weather and other natural disasters, something that we've seen a lot of across the continent over the last few months. For more, I'm joined by Bloomberg's Germany correspondent
Oliver Crook. Oliver, great to have you with us. Extreme weather has hit Europe in the past few months in a way I think, I'm sure you'll agree that has made many people think about climate change in a totally new light.
Don't you think I would think so? But you know, obviously, as you know, this is an exceedingly polarized issue for some people. It's hard, though, when you see the kind of trend in terms of the temperatures rising over the last century to kind of not at least pose yourself the question, particularly when you see the ways that it touches, you know, human life in all this different way. We've talked about how it touches agriculture. Sometimes it's cooking food
right on the branch you have. You know, all these rivers drying up. The Rhine is one we've talked about a lot of the most important waterway in Europe. You know that moves just tons and tons and tons down, up and down every single day, and that basically becomes unnavigable at a certain point. We've seen it in France with the nuclear react they can't draw enough water to cool off, and obviously these wildfires in Greece. So I
think it's front of mine for everybody. I think the challenge that the market has is how do you price these risks and how do you think about these financially?
Yeah?
Absolutely, And you were speaking to someone very interesting Munich reads ernst Rauch about this, because they've got a whole climate center and they do big reporting not just on their own business, but kind of more broadly across the insurance sector. They've also Munich re itself has its earnings coming up in the days ahead. Is weather making certain things uninsurable?
So this is the this is the question. I asked him if it made things uninsurable? And so he gave a sort of interesting response that he said, listen, we're an insurance company. We will ensure anything. The problem is
you will not be able to afford it. And they look at a sort of simple equation about kind of the risk that is generated by kind of natural disasters, how vulnerable we know, how and what ways have you mitigated it, and the underlying value of the assets, and he says that even despite the latter two, so what he's seeing across the globe is a high higher risk
of basically weather related events. He says eighty to ninety percent is down to weather, and that a third of all of the losses in the first half of this year we're not down to actually a single weather event, but just more powerful storms over in the United States.
Yeah.
Absolutely, And the data that munich Re pulled together showing a near record year for losses due to natural disasters, so things like earthquakes in Turkey and Syria and the storms that you mentioned in the US. I mean, the numbers globally are quite staggering, aren't they.
Yeah. Absolutely, I mean one hundred and ten billion dollars in the first half of the year. And really, again I was very interested to speak to him because you know, in a topic that is polarized for many people, it's their business to understand what is going on in the world and to try to appraise that risk. So I asked him about kind of how he really thinks about climate change and how many you know, how much are these losses can we say are really attributable to climate change?
We observe up what of losses from weather related events in many parts of the world, and with many weather related perils, depending on the region, it is flooding, it can be what's called these convective storms of severe thunderstorms in the United States, or wildfires in some parts of
the world. So with this upward trend, we of course as a risk management company, we need to understand what are the drivers of this trend, and the first element of these drivers are socioeconomic factors, so increasing wealth and population and inflation of course today plays a major role in this as well. However, even after adjusting for inflation and wells, we do see in some regions upward trends with respect to losses which cannot be explained by these
socio economic factors. And here we analyze and also meteorological data. We collaborate with scientific organizations in order to understand whether they're a link between increasingly severe weathers it's understorms of flooding,
extreme rainfalls and others and the losses we observe. And the outcome is as of today, is that we have strong indications, not a scientific proof, but strong indications that part of the increase of losses is already driven by changing weather patterns, and they are by themselves driven by climate change, and.
Sort of regardless of the cause, if this is just proportionally and numerically going up, this obviously is going to bear on the price of ensuring things. Can you talk to me about how much more expensive insurance is going to get as a result of these changes.
Well, first of all, if the has a component of our analysis, so the probability of severe flooding or severe other weather events is increasing and or the intensity of these events, then yes, the overall risk increases and that drives the premium. Now the question is, of course, by how much, and there.
Is no simple answer, especially no uniform answer for all parts of the gold or parents.
I also want to talk to you about the risk not just of insurance prices going up, but basically parts of the world becoming uninsurable. We hear about this in Florida, you know, California possibly a risk. Now we see kind of weather patterns changing and how hot it's getting across Europe. What's the risk for the uninsurable portions of the world where you just cannot make an assessment or it's just too risky.
The challenge is much more if we look at the need to adjust our prices in line with increasing risks, and here climate change drives up the risks and as a consequent drives up the risk premium.
So that was answer Ralph ahead of Corporate Climate Center at Munich re speaking to you, Oliver. As we think then about you know, the financial consequences of this, how do we think about then the earnings that we're going to get from Munich read zero Insurance, General, Ali and the other big insurance names across Europe.
Yeah, so listen, I'll talk about Alians because they're sort of the biggest and they would released over on Thursday and so they you know, they've actually have had a pretty good run. And what's interesting is because Alliance also has this massive asset management unit, but actually this year it's the insurance that's done the heavy lifting. Their insurance side of the business has done very well and they may even raise you know, operating profit outlook, and so
things are looking very solid in the insurance sector. They've actually you know, they I don't know how big natural catastrophe will be in terms of their bottom line. We may see some more claims in Italy and Germany in the second quarter due to the floods, but they did not have huge natural catastrophe expenses over in the first quarter, and that is in part, perhaps, Caroline. Something that we I'm sure we will talk about is the lack of
insurance for natural disasters here in Europe. I was actually astounded by some of these numbers.
Yeah.
Absolutely, This, this idea of the underinsured in Europe is a big issue, especially as you say, you've highlighted well the wildfare is in Greece, but there've been drought conditions in Spain as well as along the River Rhine.
Yeah.
Absolutely. And when you look at a sort of global breakdown of kind of what is uninsured Asia Pacific, fifty seven percent of the direct losses are uninsured North America. That's only twenty four percent globally on average, it's sixty one percent. In Europe, it's almost ninety percent. So I mean that that to me came as a you know,
as a real shock. You think of a kind of more developed nations and richer nations are kind of more risk averse and more willing to ensure certain assets, and I was really stunned to discover that that's the sort of europe European figure.
Here absolutely, Oliver, thank you so much for joining me. We look ahead then and await the earnings in the next few days from the big insurance names hit in Europe Alians generally Munich Res Insurance and others, so there'll be a lot of focus on those results. Thank you so much for being with me. I'm Caroline hepgear here in London. You can catch us every weekday morning for bin Bag Daybreak you at the beginning at six am in London. That's one am on Wall Street.
John, Thank you, Caroline, and coming up on Bloomberg day Break weekend, Ali Baba earnings and the Chinese tech industry. I'm Tom Busby. This is Bloomberg. I'm Tom Busby in New York with your global look ahead at the top stories for investors in the coming week. What's next for tech companies in China following the end of a government crackdown. Chinese e commerce giant Ali Baba among those in focus
with an earnings report on tap and for more. Let's go to Hong Kong and Bloomberg Daybreak Asia host Brian.
Curtis Tom Ali Baba reports earnings in the coming week, and the results will be arriving at a time that the landscape is changing fast, especially for big platform companies in China. Ali Baba, May Twan and Peers make it an extra subsidy through twenty twenty four to speed up their business expansion. That's a step that Paul, as you make,
is hope will speed up consumption in the country. China has been making a number of efforts of late to stimulate the economy, and consumption is a very big part of that story. Joining us now is Sarah Jung, Bloomberg China Technology Reporter. So Sarah, let's talk about the earnings first, and then we'll take a look at the broader environment and see how that is changing. What are we expecting in terms of sales and profits from these earnings in this latest quarter.
We're expecting to see some of the recovery that you just talked about being reflected. Obviously, consumption has been more uneven than expected following China's reopening, but there have been new revenue growth factors that have been injecting momentum in
the various businesses. And that's because Ali Baba announced its historic reshuffling with a division into six individual business units earlier this year, and so that's given each of the units a chance to actually seek independent funding or public listings. So that, in addition to some of the latest leadership announcements and reshufflings that we've seen, are expected to bring more optimism for investors.
We understand that the consumption boom is lagging a little bit compared to what was expected. Is that the case at that end, at the sort of e commerce segment that Alibaba represents, or is it right across the board.
Yeah, we're expecting that to be reflected in terms of your on your growth, especially for their bread and butter business Talba and t Mal, and also in the international business. There's going to be some headwinds from just the broader macroeconomic environment for Ali Express, Lozada and Traniol, which is their businesses in Europe and Southeast Asia.
What about the cloud business is that something that will stand out in terms of the rest of the earnings.
So Cloud is very interesting because we saw that the CEO, so Daniel Jong, he's stepping down and he's going to focus just on heading up Cloud. Cloud is expected to be, it was expected to be a pillar of growth for Ali Baba in the years to come. It's been you know, lost making so far, and it's been losing a bit of market share to some of the government state backed
cloud providers. But because of the energy and the frenzy and excitement around AI in China's market right now, that is something that we're looking to see Ali Cloud now that it's separate and has its own operating environment where Daniel John can focus entirely on Cloud to give it some new energy.
So at the top, now, with Joe's High there, it seems like it's coincided with his being named to that position and Daniel Jong being moved to the Cloud exclusively that the stock has kind of caught fire. I'm not sure the two are connected, but if you could say a couple of words about what it means to have Joe's High back in that position.
Sure, So Joe's high. He's a known entity. He's been with Alibaba since the very beginning. Having him there as a reliable, you know, person at the helm of the company, that's something that investors are excited about. Same with the new CEO, Eddie Wu. He's also been a longtime veteran of the company. So these are people who have been with Jack Maw who's sort of still the spiritual leader
of the company from the very beginning. Again, known entities, known quantities who have been heading up some of the major units since the beginning. Eddie Wu, for example, he was the chief architect of some of Ali Baba's flagship products like Taba.
And t mal.
So we know that we know positive.
It's a positive.
That's right.
You mentioned Jack Maw is still the spiritual leader of Ali Baba, and I'm just curious about to what extent he's still involved in the running of the company.
It's interesting because earlier this year when he reappeared on campus, employees were so excited to see him, and that sort of speaks to the mantra and maxims that he has instilled in the company's culture from the beginning. Joe Tie and Eddie Woo. Like I mentioned, they both embody that
as well. He is not directly involved in the day to day operations from what we know anymore, given the regulatory scrutiny and the tech crackdown over the last two years, he's really been stepping back from the limelight, and there was a lot of speculation before about whether or not he could return to China. We did see him back in Honzo, so that's another positive sign from the regulatory side.
Now, I'm curious about the overall environment. We've had a little bit of a change in thinking in China, I think from policymakers, even to the extent that in the property market, what they've been saying now is they've sort of not repeated the old mantra that houses are for living in, not for investing in. I wonder if the attitude has changed for the big technology companies, the big
platform companies. It seems like ever since the ant IPO was pulled that big was bad and they wanted to support smaller companies, and I wonder whether or not that has changed right exactly.
It's really interesting we're seeing more and more signs from regulators that they want the big tech companies Tencent, Ali Baba by doing the rest to help them resuscitate what's really a flagging economy at the at the.
Moment, so so Big is okay.
Now, we won't see.
Them return to sort of the swaggering days of before COVID zero, before the tech crackdown in but we will see them slightly be unshackled to be able to pursue sort of tech sectors that Beijing sees as its primary priorities strategically, So for example, in AI, cloud, computing, chips, these are all strategic areas they need to compete with the US, and we're going to see them be able to move forward in those areas.
In the past, they snapped up a lot of smaller companies, startups and really used the energy there. And you know, the push in new technology areas is that likely to continue.
That it seems like is still being rained in to some extent. So we're not going to see them be the main drivers of venture capital and investment. So a lot of the startups we're talking to now they're not really looking for investments from Tensen and some of the big giants anymore. Now they're more focused on just like smaller level applications and working with maybe early stage kind of investors rather than trying to be acquired by the big giants.
And I wonder whether or not they're as successful as they were before in attracting talent.
Talent is a big problem. Like we've been sort of dancing around this issue of China's likeish economy and so youth unemployment. That's a really big issue. Another reason why Beijing wants these big tech companies to come back and revive some of that employment situation. But yeah, talent is
definitely a big issue. We were seeing some layoffs from some of these companies and just a lot of anecdotes about people leaving the industry or not being able to get the same kind of bonuses that they did before.
Now, we had an interesting moment recently where and wanted to buy back shares and wanted to buy back shares from all the shareholders, including the biggest one, Ali Baba, and Ali Baba chose not to sell. Now, some people interpreted that as a positive because it meant that Ali Baba wanted to retain, you know, more ownership and involvement in Ant, and others might have wondered whether or not that meant that there was a little bit of difference
in the management teams. Have we been able to explore that.
We have, So I think what Ali Baba said officially is that they decided not to sell any of their stake because and is still an important strategic partner to them. And what analysts say is that actually they're really hoping that, you know, as ant starts to come back, they're able to build up their business again they can help contribute to, for example, Ali Baba Cloud Ali Cloud's growth going forward.
They have been a really big contributor to their revenue, and now that they can build themselves back up again and expand, they can again be one of the highest contributors to that cloud revenue.
So we've seen Ali Baba split into six different parts, and that's as kind of slow in rolling out for the other big companies like ten Cent and may Twan and perhaps a few others, is it likely they'll take that path as well.
Olibaba actually is relatively unique in this aspect where we've when we talk to analysts, they say that splitting into six different units allows them to unlock different kinds of business potential of these individual units. So for example like Ali Clouds, Tau which is a logistics arm and uh International Digital Commerce so for example Ali Express, Lazada. They all have business models that can be spun off relatively independently.
Where it's different from a company like Tencent, which is built around we Chat, this everything app that everyone uses in China. It's a lot harder to break off parts of the Tencent, you know, business from that core ecosystem, so we're not expecting to see the same kinds of movement it's from competitors like Tencent.
Sarah Young, Bloomberg China Technology Reporter. I'm Brian Curtis along with Doug Christner. You can catch us every weekday here for Bloomberg day Break Asia, beginning at six am in Hong Kong and six pm on Wall Street.
Tom, thank you, Brian, And coming up here on Bloomberg day Break Weekend, we go to Washington and I'll look at all the union activity lately and what this means for the presidential race. I'm Tom Busby. This is Bloomberg. This is Bloomberg day Break Weekend, our global look ahead at the top stories for investors in the coming week. I'm Tom Busby in New York labor and politics and focus as we head to the twenty twenty four presidential election.
For more, let's head to our Bloomberg ninety nine one News from in Washington and Bloomberg Sound On. Co host Kaylee lines.
Tom, that's right, labor has been a hot button issue this summer. So joining me now to talk more about labor is Ian Colgran, who reports on the subject for us you're at Bloomberg. So first of all, let's just talk about ups. This deal with the Teamsters is just a handshake deal at this point, right, Is there any chance that it's not going to be ratified.
There's always a chance that a deal won't be ratified and that everybody is going to be surprised. At this point, it's looking, however, like the deal probably will get through. There was a near unanimous vote of the local chapters of the Teamsters that endorsed it. However, that doesn't mean there's not grassroots opposition to this deal, and in fact
there is. Just yesterday talked to one of the leaders of one of the vote No campaigns who is just starting to ramp up the campaign and holding webinars and getting the word out on Twitter and Instagram, other social media. So we'll see if some of this opposition metastasizes in the next couple of weeks as teamsters vote. But at this point it's looking fairly fairly safe to stay there won't be a strike.
And maybe we won't see a strike in that case, But what's the likelihood we will see more strikes this summer or later on this year? I'm thinking of the auto workers primarily here.
Strikes, as we've seen over the past few months, are events that tend to build on one another. You see all of the action going on in Hollywood right now. There is certainly a possibility that the auto workers could strike when their contract expires in September. It's something that they have not been shy to do in the past. In twenty nineteen, they went on a six week strike, which was the longest strike ever for the autoworker's longest
auto strike in the history of the United States. And now they have a fiery new leader who has promised to really take the companies to task, and that will be a whole different dynamic here as we get closer to the drop dead day for negotiation.
Speaking of leaders, Ian, how does all this play for President Biden, who has tried very hard to bill himself as a pro labor president.
All of these strikes put President Biden in a tough spot because it essentially forces him to choose between the union and the company, and that's not a choice that
he wants to make under any circumstance. He's somebody who has also tried very hard to champion manufacturing and American innovation under his administration, and it's just sort of a just sort of a no win situation for the president if he is to intervene in some of these strikes, because he's going to have to make somebody really unhappy.
And in the case of the rail deal late last year, he did have to make a lot of union members really unhappy by forcing a deal through Congress to a void a potentially crippling strike for the US to play chain.
So how do you think this will play in the twenty twenty four race, Considering he's not just sitting president, he's seeking reelection.
He's certainly risks alienating his base if he angers too many union members by siding against them in some of these negotiations. They're going to be watching closely to the whether his actions and his words match. It's something that no president really wants to deal with during a reelection campaign. It's a show of populist anger from the base that has very little chance of benefiting a moderate incmbent like President Vibe.
Well, looking forward to your continued coverage of the labor strife. Ian Kolgrin, who reports on labor for Bloomberg, thank you so much, and Tom back to you.
Thank you, Kaylee. That was Bloomberg's sound on co host Kaylee Lines, reporting from our Bloomberg ninety nine one newsroom in Washington, and you can hear sound on weekdays one to three pm on Bloomberg Radio. And that does for this edition of Bloomberg day Break Weekend. Join us again Monday morning at five am Wall Street Time for the latest on markets overseas and the news you need to start your day.
I'm Tom Busby.
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