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, Time for another big round of stress tests for the nation's big banks. I'm Tom Busby in New York.
I'm Stephen Carolyn London, who we're looking ahead at the gathering of many of the world's top central bankers in the Portuguese Hilltop ten of Centro.
I'm Brian Curtis in Hong Kong. What will it take to revive the animal spirits in China?
I'm palely Lyones in Washington, where the end of the second fundraising quarter is rapidly approaching for presidential candidates.
That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg Eleve Them three own 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.
If I'm Tom Busby, and we begin today's program with the nation's banks still emerging from this spring's banking crisis and the stress test they're about to face this week, and joining us now to talk about those tests and all things bank related. Bloomberg Wall Street reporter Shanali Basik. Now, Shanali, let's start by walking us through the history of these tests, when they started, how they started, and why they're being done.
The really important thing about these tests is that they started in the wake of the two thousand and eight financial crisis, and they were set up as a way for bank regulators to really test the health of the
financial system. And these are the big globally systemic financial institutions, the big banks that had to take bailout money in the wake of the financial crisis, as well as a broader array of financial institutions, you know, mid size banks really up to two hundred and fifty billion in assets or more that have to go through these tests to make sure that the financial system is safe and sound.
And how is the financial system.
Well, it's an interesting year, isn't it, because a lot of these tests were really formulated before the failure of three major banks in the United States, three major mid size banks in the United States, now all of those banks were in and around that two hundred and fifty billion dollars threshold and ended up failing for reasons that were much different than what was in the stress test themselves.
So it shows you that while the stress tests have really done a lot to make sure that most of the banking system is saving money, putting capital aside to cover any potential losses in the future, it's also showing you that there are certain things that the Federal Reserve has not tested for and just has not really seen as an issue until more recently.
So the question is with Silicon Valley Banks, Signature Bank, First Republic, what has the FED learned?
Well, a few things, and it's not just the Fed. The market has also learned that everyone thought that deposits were very, very sticky, that when people put money in the bank, that they would keep it there. And for a lot of history that was true, wasn't it. You enter your local bank, you put in your savings, you left it there and you didn't think about it. But in the age of mobile banking, we saw tens of
billions of dollars leave these banks essentially overnight. When people were worried about the strength of their banks, and that is one problem. The other problem is how these banks
have managed their interest rate risk. In most of these FED stress test scenarios, you see interest rates eventually decline, and the reason is in a time of severe stress, you would see the Federal Reserve lower interest rates to meet a market shock, not raise interest rates, Whereas in the last year we have seen a tremendous rise in interest rates that has impacted these banks and has caused some severe stresses on the banking system.
And that was not accounted for in these tests before to go up five percent in fifteen months.
Exactly, and in many cases just the opposite. There's only a few scenarios in which the FED has tested interest rates in this manner, and it is something that has been seen of something of a blind spot for regulators.
Now it means clearly that the FED has to make these tests a little tougher.
Well, this is interesting. There's a lot of debate around this. This year's tests are tougher. You have GDP falling in a scenario that is much more severe than what you saw last year. In the scenario that the FED is posing to the banks, you're also seeing home prices fall
pretty significantly. So there are certain things about this stress test that are showing you that there could be you know, severe stresses that these banks undergo, and the question is whether they are able to make it through those stresses. But like I said, there's other stresses, like those deposit runs that are not included in these stress tests, and so there's a lot of question about whether they're testing all the right things and all the right banks.
And one thing that came up this year an exploratory market shock they're testing for what so fighting.
It doesn't it doesn't it? Well, remember back in two thousand and eight, it was really the big trading desks that had ran into trouble. And now what the firms are doing here is they're trying to test the big investment banks in a harder way. Now, these are not tests that are likely going to you know, slap them with much higher rules after coming out of this exploratory market shock. It is a brand new test and it is not part of kind of the core things that
the FED is testing for. But what the implication is here is that the FED will most likely start to test these trading desks more and more in the future. Remember this is all happening in the backdrop of FED Chair Powell speaking to Congress and telling them that there will be bigger rules, much bigger rules for the biggest banks. He wants to raise capital requirements by maybe twenty percent for the eight biggest banks, and he wants to potentially
test those trading desks more rigorously in the future. But those are all things that will come up for public comment and it won't really be implemented at a greater scale for years to come.
Well, those capital requirements, as you said, he said, Chairman Powell, the eight biggest banks, but there are twenty three banks being tested, so some of them are not going to face that same kind of scrutiny. But will they also have to see their capital requirements rise.
It's not even just that they may potentially see capital requirements rise, it's also that there is likely to be a greater set of banks in the future. If you remember, I was talking about that two hundred and fifty billion dollars limit when it came to the asset base that the FED was testing for two fifty billion and above. Now the FED is saying that they want to really lower that bar to about one hundred billion and so that will include a much wider array of banks. Now
let's put that into the contacts. That's not happening this year. But if you look at what Mike Mayo saying, for example, the outcome that you'll see here is that the moving parts here, you'll see the jesups, these big globally systemic financials issutions, those eight big banks, they're likely to come out of this just fine and keep buybacks pretty robust and really reward Wall Street Bank investors. They'll be just fine, essentially.
But it's the regional banks that Mike Mayo believes may need to hold off on buybacks given the degree of uncertainty about the rules. And he's saying that and not expecting these banks to fail, but he is expecting the rules to disproportionately impact the mid size banks that are
currently in the process. And regulators are worried, and frankly, a lot of frankly more Republican lawmakers are very worried that putting more rules on these smaller and mid size banks will really constrain those banks in the future to do things like buybacks as well as lend more into the economy, and.
Will they have to issue more debt some of these banks.
That's the other thing. And the worry from Wall Street then becomes, if the banks have to issue more debt, then does their cost of capital start to rise?
Do they have to.
Pay more to bring more money in? It's a complicated equation here.
Now, another thing that has changed greatly is mobile banking. You hinted before that, you know when First Republic, within minutes of the troubles there, one quarter of their deposits on people's phones was just removed gone. I mean, has the Fed kept up with that evolution in banking? Do you think it's.
Interesting that you asked that too, because we were just talking about how the stress test doesn't really account for, you know, mass deposit flight, and you know, you don't really often see it either. I mean even some of the banks that investors were worried about, yes they saw a deposit flight, but that deposit flight was not necessarily this deposit flight that came from scares of bank runs. You know, I all use Jim Bianco, who is a research jannalyst that we speak to a lot here at Bloomberg.
He always called it a deposit walk, not a deposit run, because when interest rates started rising, people did start pulling their mind from banks and putting into higher yielding places like money market funds, and so you did see deposits slowly, slowly moving Internet or no Internet, right, they were moving because of the economics. But then you saw that crash with Silicon Valley Bank, with that sharp deposit flight, and so you can argue it in a lot of ways.
Probably the Internet made it a lot faster and easier to move your money. But also people would have moved their money anyways.
Yeah, they would have, and what it could have should have been. So much of this really is backward looking, though, isn't it.
Yeah, it is very backward looking, And I think that is always the big fear when it comes to these
stress tests. But I will say this, while people do argue about the scope and the scale of the stress tests, even bankers themselves believed that the stress tests overall were not positive to the banking system because at the end of the day, what it did was it forced a more prudent way to operate, and it forced regulators and the banks to step back and take a look at everything they're doing at all points in time across many
different scenarios. In a systematic way. You will have some of the biggest bankers in the world tell you they're happy they're there, they just don't need more of it.
And going into this week, is there a good feeling among the biggest banks.
There's a frustration knowing that these rules are going to get more stringent, especially because there are other rules that are also changing for the banks, like the FDIC, for example, Since the Federal Deposit Insurance Corporation have lost so much money with these bank failures, there's a sense that these banks are going to have to pay more already to the Deposit Insurance Fund, particularly the biggest banks that will have to pay the most.
Thank you very much, Bloomberg Wall Street reporter Shanali bask And coming up on Bloomberg Daybreak weekend, here comes that big annual forum of European Central bankers. I'm Tom Busby and 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.
Up later in our program, China's economy hits a rough patch, but first central bankers from all around the world will be heading to the Portuguese town of CenTra in the coming days for the annual forum hosted by the European Central Bank. It's happening at a time when policymakers are contemplating an end to their monetary tightening. For more, let's head to London and bring in Bloomberg Daybreak eurobanker Stephen Carroll.
Tom It's a fairytale setting for one of the most important global gatherings of central bankers. The town of CenTra and the hilltops outside Lesbon is dotted with brightly colored palaces worthy of a Disney film. The discussions, though, will be much more grounded, as the world's top monetary policymakers discuss their efforts to bring down inflation. For more on this joined biour Economics needs to be reporter yan Orando,
who's in Frankfurt ahead of the trip to Portugal. Yana, great to have you with us before we get to the very serious matters at hand, and I don't want to play them down, but I do want to talk a little bit about Cintra as a place. Can you describe it for us? I've tried my best. How would you describe CenTra?
Oh, it's gorgeous. I had the pleasure of spending a couple of days there last year, and let me tell you, it's definitely worth a trip. You have whimsical palaces, you have extravagant villas, you have ruins of a Moorish castle that go way back to the eighth, ninth or tenth century for good. But it's just it's colorful, it's mysterious, and you know, there is a reason why the Portuguese
kings chose shows that place as their summer retreat. And you know, while we're at it, I have to say what's also royal about Cintra is the view from cabud Rocca, which is the western most point of mainland. It's not far from CenTra. It's definitely worth going and and you know, it's it's certainly a nice view. So for those of you who of those of our listeners who haven't, who haven't gone, it's worth easy easy be retreat or not, you know, you should go. You should put it on your list.
It's always a good time to visit CenTra anyway. The theme of this year's EASYB Forum, taking place in Cinra is macroeconomic stabilization and a volatile inflation environment. It's quite a mouthful. What are the big themes that you'll be watching out for.
Yeah, it's certainly an agenda that's featuring many of the challenges central banks face today. So they have some really interesting papers they'll be discussing on, for example, inflation expectations and an economy facing supply shocks, obviously, you know, very very very relevant today, on the cost of inflation, on the future size of central bank balance sheets, on the
optimal mix between monetary and fiscal policy. There will be discussions on energy markets, on lessons learned from forecasting mistakes, so all of that highly highly relevant to the policy debate now. And of course the highlight of each CINRA conference is the policy panel that features the Governor of the Bank of England, the FED chair, the Governor of the Bank of Japan, and of course the ECB President Christine Lagarde.
Yeah, of course, it's a really fascinating moment to be discussing monetary policy as well, as we have global central banks shifting in many cases towards the end of their hiking cycle, or at least that's the current expectations the ECB, of course, given that they're the hosts out in force at this event. Are the Hawks and the Doves getting an equal share of time? Do you think here?
Well, we've certainly invited all of them to join us on TV for interviews, so it's.
Up to them, and they're WELLcom on radio as well well.
I will make sure to tell them. But jokes side, all of the ECB board members will make an appearance during the panel discussions and during the conference, and of course lots of Governing Council members will be in attendance. They are known to ask questions during the sessions, so we will hear from from a fair share of them, and I'm certainly looking forward to catching up with them, you know, one by one and in big groups. It's
a nice atmosphere there. You really get to spend some time with them and.
Get insights, of course, into those all important decisions coming up for central banks. The ECB's next meeting is in July. What's the current thinking about where the ECB is on its rate tightening path.
Well, certainly inflation is not going in the direction that the ECB wants to see it go, or at least not fast enough. They did revise up their inflation outlook at the last meeting, and that's certainly not you know, what you want to do in this situation. So they have been very determined in suggesting or even almost pre announcing that raids will will rise again in July, that
at least one more rate hike is coming. We are hearing from a lot of Governing Council members now about September whether that, you know, should be on the table, whether that should already be considered sort of a done deal. So so it's going to be very interesting to see where where they see monetary policy heading, but also where you know, how they see the monetary tightening in place already since since last July, actually how that is reaching
the economy. And you know, we've we've seen some transmission problems because of labor market strength and and a shortage of workers there. So they're really dealing with the situation they they haven't they haven't seen before. There is no textbook example of how to deal with their challenges we're facing, and that's interesting. So it's about where rates are heading and and but also how how you how you go beyond uh you know, once you're freege to peak, how how policy pans out after that?
Yeah, you want to stay with us. I want to get bring us in some of the market's perspective on this too. And a conversation that we had on Bloomberg Radio in the past few days with Sonia Martin is chief f extrastist at DZ Bank. We asked her about about her expectations for euro dollar given this shifting point in central bank policies on both sides of the Atlantic.
I think the.
Market's some overreacted to the c B a little bit. I mean, yes, they were hawkish, but so was the Fed. To be honest, if anything, and just really short term, I think there's a risk that we're going to see your doll trading lower again. I think the big turnaround has to come from the fundamentals. You know, when US goes into a recession and your zone performs better, which is like to happen as we move into the autumn.
I think that's going to be the point where your dollar has the potential to really go above one ten and move hired to support one fifteen is sort of our target, but I don't think the timing is right yet.
Which of the major center banks do you think is most at risk of a policy mistake. Then, given that delicate position therein that you outlined.
Well, there's always been just because of who's to judge whether it was a mistake or not, because we will never know what the alternative was. There's certainly a risk over shooting, I think definitely. When we're looking at the banks of England right now, I think ultimately the mistake or not will be determined by the ability of the central banks to then reverse course once the timing is right.
I mean, you may have hiked once so many times, that's not really going to hurt the economy and massively, I think to get the timing right to change course when inflation will still be kind of persistently high, that's going to be the real the real skill, and that's you know, that's not going to happen till next year.
I think that Sony Martin from DZ Bank jan Arande is still with us.
Jana.
You mentioned there are some of the special guests at this ECB event in CenTra Jerome pal from the Fed, Casure Away from the Bank of Japan, Andrew Bailey from the Bank of England. How much do these central bankers share the same challenges as the ECB When.
You look at the FED at the in the US, most of their problems are demand driven. So we had massive fiscal stimulus following the pandemic. A lot of a lot of what we see in the US is really demand driven, So in that sense, there is something the FED can do about about it with rate increases. When you look at the Bank of England, on the other hand, their problems have a lot to do with supply, and one factor that plays into the cards here is Brexit.
Of course massive impact on the labor market, but also on trade. So there the Bank of England really is in a tough position. And you know, with rates potentially having to go up all the way to six percent, there was certainly a big risk that it would crush the economy. So it's going to be very very interesting to have all these central bankers on one podium, having them respond and discuss. I'm certainly looking forward to that.
Yeah, some fascinating conversations ahead. Thank you Toomberg's ECB reporter Jana Randew and Yano're bringing us coverage of the CenTra ECB forum on Bloomberg Radio as well. I'm Stephen Carroll in London. You can catch us every weekday morning. Here for Bloomberg Daybreak Europe. Begetting at six am in London and one am on Wall Street.
Tom, thank you Steven, And coming up on Bloomberg day Break weekend to look at China's economy, at prospects for stimulus amid some key economic data. I'm Tom Busby, and this is Bloomberg.
Broadcasting live from the Bloomberg Interactive Brokers Studio in New York. Bloomberg elemon three to oh to Washington, d C, Bloomberg ninety nine to one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixteen to the Country, Serrius XM channel one to nineteen to London DAB Digital Radio, and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak Weekend.
I'm Tom Busby in New York with your global look ahead at the top stories for investors in the coming week. You know all the talk about how China's economy would come roaring back post pandemic, after all the COVID shutdowns eased. Well, the economy did pick up, but not nearly by as much as some expected. And now China is in the spotlight in the coming week with some key economic data
as economic growth falters. Now for more, let's go to Hong Kong and Bloomberg Daybreak Asia host Brian Curtis and his colleague Doug Krisner.
Tom will be getting China's PMIS in the coming week, and the early indicators are not particularly great. In the last reading, the official PMI came in at forty eight point eight. China's overall economic activity has now reclaimed its pre COVID levels, but it doesn't seem all that sustainable.
Investors are getting a steady stream of more promises of stimulus from policymakers, but the effects so far appear negligible. Consumption is sluggish and exports have been declining.
Joining us now to try to chart a path forward for the economy is David Chu from Bloomberg Economics. David, thanks very much for joining us in our studios here in Hong Kong. Have policy makers done enough to kind of light the fire under the economy?
Nope, not yet. What I can say is that yes, they are considering some stimulus package and the market is also expecting for that. But I have to say that there is a risk that the market that may have overpriced in the potential stimulus. I mean, maybe investors are too much optimistic about the size of the package.
David, do you have a sense of why the government is being so careful here so as not to roll out a strong stimulus package.
I think two main reasons. One is that the policy rooms are now more limited than before, because if you look at the monetary policy, if you look at the base rates or the policy rates, and if you look at the devisit in the in the fiscal site, you would see that, you know, the room is smaller than before.
The second thing is that I think the government is still concerned about the high debt level in China because according to the bs NOW, China's led to GDP racial is almost three hundred percent, so it's a huge amount of debt, so that the government to make concern that aggressive stimulus may lead to more accumulation of the debt.
In the past few days, we heard from even Wang hu Ning, who is the number four official in the Communist Party, really stressing how they needed to boost consumption. Would they consider do you think handing out cash to citizens that's something that they have avoided in the past, but it has worked elsewhere, including right here in Hong Kong.
Well, I think this is something ambiguous because yes, people have been calling about vosure or cash to citizen, just like what is happening in Hong Kong. But there is also some concern that maybe this money, if it is allocated to people, people may not spend it at all, They may save it in bank so that it won't be transferred into consumption. And another view is that because China relies on government investment for more than two decades, so that it is a belief that the government can
make investment directly that may form demand. So in the view of some government officials, this can be a more effective way to lift up the economy or in the in the demand side, which is more directly than giving money to to people.
We know that the ailing property market, the housing market has been a very big problem. There may have been some disappointment in the last week when the five year loan prime rate was only reduced by ten basis points. Some economists that we're looking for a larger cut as a way of kind of engendering a little bit more enthusiasm for housing. It's interesting to me that Bloomberg Economics is saying that new home prices could gradually recover this year by the second half of the year. How is
this going to happen. How are consumers in China going to begin to feel differently about the property market?
Well, I think I agree that ten biebs cut in the rate may not play a lot to the housing market. What we were expecting was that the government can do something more in the monetary side, so that to give more confidence to people, not only because of the rig cut itself, but also because of the confidence that can be lifted by such kind of easing or by this
signal effect. Uh So, based on this, we think that ten PEPs cut is just the start of the whole procedure in the monetary side, and we are now looking for a more cut in both the policy rates and also the triple are in the next half of the year. So we we are you can see that we are
expecting more. But on the other hand, I have to say that it may be a very optimistic view that the housing prices can recover in the next half of the of the year, because we what we see in the market is that the confidence is still fragile, and the sentiment in the housing in the household sector is still weak, so that we don't see any silver bullet to boost the confidence in the short term.
So so I wonder if if consumption is still weak, it may be that some people are not even confident in the stability of the jobs. I know you've been looking at search engine data just as a means of kind of trying to understand how people feel about their jobs and what are you seeing.
Yeah, I totally agree with that, because we also look at the search engine data to see how many people were searching for the word unemployment or loose drop. The level it's still similar as in the pandemic area. It tells us that even China reopened from the pandemic, people are still as cultuous as before. So it is about forty percent higher than the pre pandemic level. It means that it means that, you know, the concern in the in the labor market is still very strong.
Yeah, and I think the latest reading on youth unemployment is twenty point eight percent. At a time when universities in China are graduating about a million students a year, this is particularly difficult. I would imagine where the young people are concerned.
Yes, I think that is also a signal, especially for the weak confidence in the private sector, because usually the young people are hired, used to be hired by private sector, by the servicing sector, but now they have a high drop less ratio. It means that these sectors, uh, they are slowing and uh the private entrepreneurs that are not willing to uh to invest to to expand their business. So that is a concern.
If it was one thing, David that you think they could do to try to stoke a renewal and confidence, because that's obviously, I mean, both businesses and consumers are lacking confidence.
What might it be, Well, people have been talking about giving money directly to people. Another view I think is that the government can consider to reduce the cost for hiring. Because you know that China has the cost of for a company to hire each person, you know, two thousand and three thousand a month. So I mean the cost the cost giving to the government in the forms of
pension fund, social security fund or tax. So I think the government can do something to reduce this part of cost so that to make the employer more active to hire new employees.
It's going to be very interesting to see where we go from here, not just in more fiscal stimulus, but more stimulus on the monetary side. David, thank you so much for being with us. David Chew from Bloomberg Economics. I'm Doug Krisner along with Brian Curtis in Hong Kong, and you can catch us weekdays here for Bloomberg Daybreak Asia beginning at six am in Hong Kong six pm on Wall Street.
Tom, thank you, Brian and Doug, and coming up here on Bloomberg day Break Weekend. The fundraising race to be nominee for US president is intensifying as November twenty twenty four gets closer. Lots of activity right now as we bump up against the end of the quarter. I'm Tom Busby and 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. The fundraising scramble is on for those hoping to be
elected president in twenty twenty four. For more, let's head to our Bloomberg ninety nine one newsroom in Washington and Bloomberg Sound on co host Kaylee Lines.
Yeah, Tom, the dash for cash is on in a major way. Is it's the last week of June that's coming up upon us, and that means the end of the second fundraising quarter, So candidates are rushing to get their campaign coffers as full as possible before that June thirtieth day hits. Here to talk more about this with us is Bloomberg's national politics reporter Nancy Cook. So Nancy, just talk to us about why it's important to, you know,
raise all this money into the end of the quarter. Anyway, why do quarterly numbers matter.
Well, so basically we have not seen fundraising numbers yet for many of these candidates. You know, President Joe Biden really just jumped into the election this spring, Florida Governor
Ron de Santis really just jumped in. And so the quarterly Federal Election Commission fundraising reports, which are due by July fifteenth, really will be the first snapshot we have of both the Democratic field and the Republican field and how people are doing it raising money both from like big donors like billionaires, but also you know people who give like ten dollars or twenty dollars.
So do we have an idea of what these filings ultimately may look like. Who is being successful at raising money right now?
So I would say that all the candidates are out there doing a ton of fundraising right now. Joe Biden just did a swing through California. Ron DeSantis just did a swing through California. He did a swing through Texas, and so like everybody's going to places where there are big money, like New York, California, Texas, like the big
money places. I would say I spoke with a source who told me that we can expect the Biden numbers to be good, not like President obama reelection good, but that he is, you know, having a fine time raising money. I think that there is a sense that a lot of Democrats feel sort of lukewarm about the idea of a second Biden term. However, they are very motivated by the threat of another term for former President Donald Trump, and I think donors really are motivated to give to
keep Donald Trump out of office. With Trump, what I will be looking for is, you know, he does not have a lot of support among the donor class. A lot of billionaires don't want to get involved with him again. They think he's a chaotic president. They don't like his rhetoric, they think he's decisive, but he still has a ton of support amongst small dollar people who send in like ten or twenty dollars, And we've really seen his fundraising
surge after these last two indictments. And then finally the third sort of major candidate, the second runner up so far in the GOP primary, Ron DeSantis. You know, he I think it remains to be seen whether he can master retail politics like meeting and greeting voters in Iowa, New Hampshire, but he is not having problems raising money. You know, he raised over eight million dollars in the
first twenty four hours after he announced his campaign. What I will be looking for specifically with that report is is he raising money both from rich people and from everyday people or is it concentrated in one or the other, Because if he is not raising money from the small dollar donors, that means there's just a lack of grassroots support and that will really hurt him in those early primary states.
So this could kind of help us as journalists, but also the American people understand who's really gaining traction among the American population and I wonder too how this filters in as we look ahead, Yes, the end of the quarter this coming week on June thirtieth, and you have to file by July fifteenth, but looking ahead to August twenty third, in the first GOP primary debate, ultimately, how
do the kinds of donation numbers? And that idea factor into that, considering you need to have a certain number of donors to even make the debate stage you do, and.
So I think the threshold is forty thousand donors, and so you have to have just a certain amount of support to enter the debate. So that's a key criteria. But the other thing is is that really to last through the fall, you're going to have a certain amount of money. There are so many Republicans in the field now, it is such a wide GOP field.
Bloomberg's national politics reporter Nancy Cook, thank you so much, and Tom, we'll send it 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 it for this edition of Bloomberg day Break Weekend. Join us again Monday morning at Wall Street Time for the latest on markets overseas and the news you need to start your day. I'm Tom Buzzby. Stay with us. Top stories and global business headlines are coming up right now.