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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, and straight ahead on the program, look ahead to the April jobs report here in the US how that may impact FED policy moving forward. I'm Tom Busby in New York.
I'm Carolin Hetger here in London, where we're keeping you up to date as the UK heads to the polls.
I'm deg Krissner looking ahead to China's PMI data, the first reading since those higher US tariffs took effect.
That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg eleven three zero, New York, Bloomberg ninety nine to one, Washington, DC, Bloomberg ninety two to nine, Boston, DAB Digital Radio, London, Sirius XM one twenty one, and around the world on Bloomberg Radio, dot Com and the Bloomberg Business App.
Good day to you. I'm Tom Busby, and we begin today's program with a look ahead to the April jobs report, with non farm payroll numbers out this Friday eight thirty am. Wall Street Time Now for more on the strength of the US labor market how Friday's numbers may impact FED policy, were joined by Michael McKee, Bloomberg International Economics and Policy correspondent. Well, Michael, what do you expect to see this Friday in the April jobs report?
Well, we expect to see a slowing in hiring, but we don't really have a good idea good handle on what the overall number is going to be, because we're not really sure at this point how companies are reacting to all of the news that we have seen about
tariffs and the economy. The Base Book, which was out last Wednesday, used the word uncertainty eighty times and mentioned that companies didn't seem to be laying off people, but seem to be making plans to do so if the tariffs go into effect and start to hurt their business prospects. So we may see a ratcheting down, but the expectation is we won't fall off the cliff, and we're not
expecting at this point. According to economists, a big change in the unemployment rate is still supposed to stay at four point two percent, So.
By all appearances, until now, the labor market has remained pretty resilient, but that uncertainty caused by the Trump tariffs. I guess the question really is how long can that last? I mean, the Independence day from President Trump was this month in April, So we probably won't see any damage or much damage reflected in this report.
Correct, that's correct. We may see some increased unemployment or increased job losses in some of the defense contractor consultants that will lose jobs because of the DOSEE firings. It isn't clear how many actual government workers we'll see fall off the pay rolls because it isn't clear how many have been let go. So it's all kind of up in the air, and we won't know necessarily what the full impact of the tariffs are until del first, because
Trump put a ninety day hold on that. And I think you go back to the basebook, and it suggests that companies are waiting to see the impacts because of course it was hard for them to hire workers coming out of the pandemic, so they're reluctant to let them go. They will if they need to to retain their margins, but they just don't know yet. So I don't think we see much change.
Yeah, even though all the ingredients are there. We've seen consumer sentiment decline, consumers and businesses pulling back spending. But it's almost like a hurry up and wait, We've got to see what happens with these tariffs and the impact on companies.
It's a little bit like you know, when you'd be out playing on the sidewalk and mom would say, don't step into the street. I mean, you're right on the curb there and we could could fallen into the street. And that's what worries everybody. That's what worries the folks
at the FED. I spoke with Chris Waller, FED governor on Thursday, and he said they can only model scenarios a possibility of a lot of tariffs, the possibility of lower tariff, but if unemployment starts to rise, they will have to react.
You know, I heard that interview put another way, he said, tariffs are a tax, and you know the fear is higher taxes will lead to a slow.
Down in hiring, lead to a slowdown in hiring, and lead to higher prices. And as prices go up, people tend to spend less. So you have an impact on demand as well as the supply talk that people are talking about. So the general consensus is any level of tariff are going to be disruptive. It's only a question of how disruptive they are. And then there's a kind
of psychological aspect to it. If people have heard all this, we've seen consumer confidence collapse, do they react more quickly to the tariff that we do get, whether they're large or small, or do they think, well, we can manage our way through it, we can muddle through it. Governor Waller thinks that small tariffs, maybe we just get the ten percent tariffs would enable people, enable companies to find
ways to survive it and keep going. But anything larger than that would probably cause people to pull back fairly quickly because they were scarred by the inflation coming out of the pandemic.
Well, the April jobs report out this Friday, eight thirty am Wall Street Time our thanks to Michael McKee, Bloomberg International Economics and Policy correspondent. With the first quarter earning season in full swing, we move now to some key earnings this week from some of big tech's magnificent seven meta platforms and Microsoft on Wednesday, Apple and Amazon coming
on Thursday. For more and what to expect, we're joined by Mandeep Singh Bloomberg Intelligence senior tech industry analyst Mandy Well, it was just a quarter ago. I think the big concern for those megacap tech firms was how much they're spending on AI when they expect all that investment to start paying off. But that was then. Now it looks like the Trump tariffs and all the uncertainty they bring putting AI kind of on a back burner along with
regulatory pressures. I mean, is that what it looks like right now?
Yes, Because all the MAC seven companies are global companies. More than fifty to fifty five percent of their revenue comes from outside the US. So when you think about the international revenue exposure they have, I mean, tariffs will clearly play into that. There could be some retaliation in terms of, you know, other countries kind of imposing some sort of attacks or fine on these companies, or or just a pushback in terms of using their products. So look,
is there any catastrophe lurking for these companies? I would say no, But on the margin, I feel like the estimates for these companies in terms of growth and profitability are likely to go down or sideways simply because of the tariff uncertainty, and even though AI is a big secular tailwind that will remain, I think in the near term, AI won't be enough to make up for any lost revenue due to tariffs or just you know macro slowdown where companies may pull back on ads or just kind
of shelf their IT spending projects for now.
Well, back to tariffs, We've seen that Apple has shifted some of its production, almost ten percent of it to India, and that is really to kind of not rely so much on China a benefit now that we're in this tariff war. Have any other companies done a similar move.
Well, everyone is trying to figure out how to best kind of relocate their supply chains to deal with the uncertainty. The good things for you know, Meta or Alphabet is they have very low exposure to the hardware side, you know, which gets impacted the most in the case of tariffs. I mean, if you're selling digital services or you know, if you have an online business, it's not going to
get affected by tariffs. At the same time, as I said, you know, they will see the impact in terms of certain advertisers pulling back their ads spending because of uncertainty That is out there. So there are large Chinese advertisers like Timu and Shane who were spending almost you know, ten billion dollars plus on digital ads across Google and Meta.
So from that perspective, any pullback from them is going to impact the growth rates for these companies, and there is a lot of indirect impact, but in terms of the direct supply chain impact, I think Apple is the most exposed. So you're right, they have to do something about it. They don't have a choice and they are doing whatever they could do.
You see the tariffs benefiting anybody or is it all negative?
Well, I think again, I go back to my comment about these companies, the large ones being international businesses. So even if you know, you may say, if dollar is weakening, that's somewhat helpful, but on the margin, you know, they benefit a lot more from selling their products outside the US. You have to remember, you know, Asia has the biggest population. So because these companies have got large online platforms, more than one third of their users who use metal properties
or you know, Google apps, they're outside the US. That's where all of your user growth is. So if there is any pushback in terms of using US based products, that's gonna hurt.
Hurt, Yeah, if a third of your market.
Yeah.
Now we've seen reports. I want to talk about AI, which which the last couple of times you've been here, that's all we talked about with these tech earnings. We've seen reports of some of these tech giants pulling back on leases for AI centers. You know, I mean, is are we at an inflection point right now or is it just kind of like, let's hold off on this capex on AI now and see how this plays out well.
So two of the four big hyperscalers have reaffirmed their capex plans for the full year, and you know, Google and Amazon, they said, even with all the uncertainty, and this goes like two weeks back, so we had all this tariff turmoil going on, but they reaffirmed their capex, which goes to show that everyone is still very bullish on AI. You're still in the very early innings. They see a lot of potential with you know, AI driving a lot of their revenue growth down the line, and
they want to be ahead in terms of investments. So I think what will be reassuring this quarter is just companies coming out and saying we still will continue to invest in AI. Could there be a digestion period in terms of, you know, building these large scale data centers. Possibly, That's what all these pauses and leases are suggesting, that
there could be a small pause here and there. But the trend is still intact and I think you will see a very quick rebound the moment this uncertainty clears out.
Just a pause, just a pause.
One last thing, I want to talk about a lot of ramped up regulatory pressure on these tech giants, not just the US, but the EU especially, and how will that impact things.
Well, right now, it feels like regulatory site may take a backseat because of all the tariff's situation and just you know, this week, Meta and Google were slapped to find by the EU. But that was a drop in the bucket. We're talking about seven hundred million euro whereas these companies have paid billions in dollars of fines. So from that perspective, it feels like you may see regulatory
stuff take a backseat. But there is that pending case for Google in the US, you know, the monopolization case where they're asking for Chrome divestiture. I mean, to me, that is the big one, and the meta FTC. So the regulatory overhang is more within the US than outside the US, whereas previously, you know, these companies were kind of paying more fines outside the US.
Wow, well, there's a lot going on and a lot to look forward to. Our thanks demand Deep, saying Bloomberg Intelligence senior tech industry analysts. Coming up on Bloomberg day Break weekend, we'll look ahead to local elections in the UK. 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, look ahead to a key economic reading from Beijing amid the uncertainty around US tariffs. But first, just over eight months since the Labor Party's emphatic victory in the UK general election, voters will have their first real chance to pass judgment on the party's progress. Polls around the country will open
in the coming days as local elections get underway. But as Prime Minister Keir Starmer done enough so far to convince the British public for more, let's go to London and bring in Bloomberg Daybreak Europe anchor Caroline hepgar Tom.
When kir Starmer was elected the first Labor prime minister in fourteen years, last summer, he said that a burden had finally been removed from the shoulders of this great nation. But in twenty twenty five, almost a year into his tenure, his government might be feeling more burdened than ever. Part of that weight comes in the form of concerns about
limited economic growth. Just recently, the International Monetary Fund released a quote significant downward revision to its UK growth forecasts for the next two years, cutting them more than for any other leading European country. And that's amid increasing uncertainty about what President Donald Trump's tariffs will mean for the country.
Despite the gloomy outlook, Bank of England rate setter Meghan Green has told Bloomberg that there could be some bright spots, whilst maintaining that uncertainty prevails.
Look market pricing has moved around a whole lot over the past couple of weeks, and it's also worth pointing out that not all of that is focused on what's going on in the UK, so traditionally about a third of the moves in the gilt curve have been driven by things happening outside the UK. These days it's about half that's been driven by things happening outside the UK.
So part of those moves I think reflect what's going on globally, and you know, we're just about to go into an interest right round, so we'll have to see. But I would highlight that those market moves don't all reflect to U fundamentals in the UK.
Because what of the uncertainties If you look at you know, there seems to be a lot of disinflationary kind of impact from folly energy prices, we could dollar tightening, financial conditions, global demand. Does that point to a cont you know, in may.
So that there are factors that are both inflationary and disinflationary. You know, I'm particularly concerned. We've had weakness and output for about nine months now and we're trying to figure out what the big driver of that is, whether it's demand or supply driven. I think there are reasons to think it's both actually, but I'm more concerned about the supply side and that actually on balance, would be inflationary. So that's part of it. When it comes to tariffs
and the developments over the past couple of weeks. There again are both the inflationary and disinflationary impulses. So when it comes to tariffs, in particular for the UK, we're a small, open economy, right. The US is our biggest single country trade partner, but the EU of course is our biggest trade partner overall. So if you have export substitution, then that would tend to push down on growth and inflation.
If you have trade diversion from other countries that are trying to find a new home for their markets, that also pushes down on inflation. But we saw during the pandemic that if you have a repatterning of supply chains, that can push up on inflation. And also if we have trade fragmentation writ large, then that tends to reduce knowledge spillovers, that reduces potential growth, That tends to be inflationary. So something you've mentioned was exchange rates, and those have
not gone as the economic theory would suggest. Normally, if the US announces or imposes unilateral tarifs some other countries, the theory suggests the dollars should appreciate the opposite has actually happened, and so that in and of itself could be disinflationary for the UK, but courses I mentioned the EU is the UK's biggest trade partner in the Euro has appreciated, so net net, if you look at the kind of Sterling exchange rate index, the pounds up a
little bit. There's a ton of uncertainty around this, but they are both inflationary and disinflationary forces.
But are are you concerned about the the slight recent strength and pound does does that change? Actually, you know, tightening financial conditions, so it does.
I mean the currencies have been moving a lot recently as well. We've also seen off the back of previous kind of structural shift af after the global financial crisis, after COVID, the d the dollar didn't always behave immediately as the theory would suggest. It weakened and then subsequently rebounded. So I think it's a bit too early to say kind of where the dust is gonna settle on currencies.
But I will say if the dollar continues to depreciate uh, on balance, that would be uh disinflationary for the UK, and and if the opposite happens uh less.
So So are y are you worried that? And you said in the past, actually that there's a danger that it could you know, muddy the water on inflation. The moves and pounds, so are you're worried that there could be a reverse and then it becomes an our broad pressure on inflation quite quickly, it could.
Be that's right. You know, currency forecasters have the hardest jobs, second only to energy forecasters. And like I said, it's been really violatile. We're not quite sure where they dust will set off.
So that was the Bank of England policy maker Meghan Green speaking to Bloomberg's Francine Laqua. Now, an economic resurgence was the central promise the Labor Party staked their whole election campaign on. But now as the prospect of growth moves further off into the horizon and the public face growing cost pressures, can the party count on keeping that support. It's something I put to Bloomberg opinion columnist Rosa Prints. We started by talking about Labour's track records so far.
It's fair to say that they haven't had a great start to their time in office. Almost straight away their
opinion poll ratings kind of fell off a cliff. You'll remember that Labor was elected on a bit of a landslide last summer, partly, I think because the Conservative government which had been in beforehand was extremely unpopular, so lots of people voted Labor to kind of get the Tories out, and I think maybe didn't fall massively in love with labor, and that was born out when just a month or two into their time in government their opinion polls started to go south as well. To be fair, they had
a really tough hand. The economy was in all sorts of trouble. They had to deliver a budget that was very unpopular. People are feeling the pinch. So although they are doing pretty badly, the Conservatives haven't recovered either, so kind of everyone's doing badly at the moment.
What's at stake during these elections then? Why do they matter?
Well?
I think they're fascinating elections. There aren't a huge number of seats up for grabs. It's one six hundred and forty one council seats. That's the local authorities who come of run things on the ground. There's also a by election to a Westminster seat and some mayoralties, so not a massive change of power. But I think it's just going to be so interesting to see what the new politics of the UK is because, as I said, no
one party is really breaking through. You've got the Conservatives kind of bumping along on about twenty four percent, their usual Tory rivals doing a bit worse on about twenty one percent. And the real story I think of these elections is whether we can see a breakthrough for reform. That's the kind of upstart, quite right leaning populist party headed by you'll remember Nigel Farage who was the Brexiteer in chief during the Brexit wars. And not to forget
the smaller parties. The Liberal Democrats did better than they had ever done before at the last election. They're on around fourteen percent, and you've got some Greens doing well and some kind of protest and independent candidates, particularly on issues.
Like the How do you think that the kind of bigger picture is going to affect the local elections? How do you think that there's going to be that interplay between the local and the national.
That's such a good question. How do we know how anyone votes? I think often what happens is that people maybe they don't pay attention to politics all that march.
They've kind of got the party that they believe in, and that they always vote for, so they'll tend to vote along those traditional lines that they would do, say at a general election, unless something has happened in their area that they're particularly unhappy about, less commonly that they're particularly pleased about, And then it does come down to
the performance of what they've been used to. So, for example, there's a terrible strike going on among refuse workers in the second biggest town of Birmingham, I think the people of Birmingham may feel differently about their labor council than if they hadn't had rubbish pile duff outside their homes for weeks. On the other hand, say a party like Reform almost quite new, so they don't really have hardly
any counselors. So people won't be able to vote on their record, and it'll be whether they think that they can actually trust reform In to run things. You know, Reform hasn't got that record of managing things. Will people continue to see them as almost a protest vote, or will they actually trust them to run local services?
I mean thinking about Birmingham reports of gigantic rats as a result of that strike and the rubbish in the streets that we've seen for weeks now in terms of the campaigns, what have they looked like for the major parties and how much effort do they put in.
Just to give you a bit of context, So the last time these elections were held they held every four years, Boris Johnson was the Prime Minister and he was doing very very well. It was Boris Johnson was seen as being responsible for rushing through the COVID vaccine and the Conservatives did well. They sort of swept the ball to the extent that they are now defending most of the seats. Now, the problem with that is that they've got a long way to fall and given that, as I said, the
last government was very unpopular. The party doesn't seem to have picked up any popularity since the election. If anything, it's gone the other way and is losing ground to the Tories. It looks like it will be a bad night for them now. That has meant a rather odd campaign because you've seen Kenmy Baidenock, the new leader of the Conservatives, kind of going around saying yes, it's going to be bad, We're going to lose lots of seats, which to the extent that you wonder if it will
become a self fulfilling prophecy. Nigel Farage, on the other hand, he sees an opportunity here, so he's really going for those parts of the country where the Conservatives are unpopular. For example, he is around now campaigning in Kent in the town of Dover, where the Reform think that they can pick up votes. The Liberal Democrats are often strong
in local government, often stronger than they are nationally. They've been having their leader, Davey, going out and doing his usual He likes to do lots of stunts for the television cameras and labor. They're kind of keeping a low profile, hoping that their current woes aren't translated and they don't lose too many seats. The expectation at the moment is that they did badly last time these seats were fought.
They'll probably do about the same, but it's so hard to know because of that reform factor.
And how much you think that the wider economy is going to affect the elections effectively. We know that, I mean, employment is still very strong in the UK, wages a bit more difficult for people, cost of living crisis for some people. Still continuing, how much do you think the economy and the economic backdrop will affect people's vote.
I think the economy always affects people's votes. I think people are feeling the pinch and it's going to come down to who they blame for that. Now, the reason that the Conservatives became so suddenly unpopular and did so badly at the last election, I think can be traced back to the disaster that was Liz Trust and her brief premiership, and the Conservative never really recovered from that.
Now Labor has spent their eight months in power kind of pointing to her and pointing to the last government and saying it's not our ful. We inherited a mess and we're doing our best. And I think what it comes down to is whether people on the ground believe that or whether they're fed up enough to shift over to reform. I don't see much time that people are ready to trust the Conservatives again.
My thanks to Bloomberg Opinion columis Rosa Prince. Now we will have full coverage and analysis of the local election and its outcomes right here on Bloomberg and on our Bloomberg UK Politics podcast in the days ahead. I'm Caline Hepke in London. You can catch us every weekday morning for Bloomberg Daybreak. You at the beginning at six am in London. That's one am on Wall Street.
Tom, Thanks Caroline, And coming up on Bloomberg day Break weekend, we'll look ahead to a key economic reading from Beijing. I'm Tom, 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. A key economic data point from Beijing this week, as uncertainty lingers over the US tariffs. Now for more, let's get to the host of the Daybreak Asia podcast, Doug Krisner.
Tom. In the last week, the International Monetary Fund revised its annual growth forecast for China to just four percent this year, and it came with a warning the outlook could deteriorate further due to those US tariffs. Now in the week ahead, we'll get China's official PMI data. These readings will provide a measure of sentiment among businesses and how they view overall economic activity. The PMIS can provide
an early indication of growth. Closer look. Now, I'm joined by Bloomberg's Chang Chu She is the chief Asia economist for Bloomberg Economics. Chang joins us from our studios in Hong Kong. Thank you for making time to chat with me. There's a lot to cover. I want to begin with the PMI data, Chang. What do you think we're going to learn from these numbers in the week ahead?
Thank you Doug for having me on the program. Yes, it's the PMI reading for April is going to be very important. That's going to be the first reading since the elevated tariffs came into place. We suspect we're going to see dichotomy between the manufacturing and non manufacturing readings. On the manufacturing reading PMI, we could see damage, quite noticeable damage from the tariffs. At this point, we don't
have very conclusive data from various sources. We could be uh looking at shipping data, for example, for prices and volumes in terms of shipping between the US and China. They are only showing something with a significant lag, and perhaps they are some indications, but not quite conclusive. We do hear a lot of stories of Chinese factories not taking any further orders from US customers, and some may even have stopped production. So uh, those data we don't
have yet. So the PMI reading is quite important, and we do see potentially manufacturing PMI see a quite significant job in the activity. At this point, we're projecting the manufacturing PMI to drop into contractional territory from expansion of fifty point five in March to perhaps you know, around forty nine point eight sort of reading. So that's on the manufacturing side. But if we want to go into the non manufacturing side, we do see expansion to continue.
Are we going to get any clues as to whether supply chains are being reconfigured in a way that China would be able to divert some shipments elsewhere into jurisdictions that don't have terrorf rates as high as China does coming into the US market.
It's a good question, but a very tough one to answer. We here again on the ground, lots of stories firms on the ground that try neing to diversify the supply chains, maybe accelerating the move out of China, the move of the production facilities out of China. I think it's very hard, even over the longer term to look at the shift of supply chain. But it's going to be even tougher to pick up those trends from PMI data. So it's
something that will keep looking out for. But unfortunately we don't have sufficient data to give any clarity on this issue.
So when I think of the Chinese domestic economy, what I really think of is just a lack of demand. Is it too much to think that Beijing could try to stimulate demand in a way that would compensate for the reduction that the export economy is faced with right now? Or is that just in entirely out of the question. Is that an impossibility.
It's very tough. It's very tough for the government to purely by stimulating the domestic econometer off sets the shock from the external demands. It certainly in the short term that's even tougher. Right, You have to think of different ways. The firms are trying different ways. Certainly they are diverting some of the were intended to be exports to divert some of that products domestically, and as you alluded to, they may think of rerouting the exports, but they offsets
will not come that quickly. I think the government has certainly realized the importance of domestic demands and it has been doing something over the past a few months, and that's showing.
Uh.
Some improvement we do see in the first quarter in China's GDP growth was stronger than expected, and if we're looking to the March data, this improvement certainly on the production sites, but also on the demand side, as we saw quite noticeable improvement in consumption in retail cells. So we can see some positivity there. But I think it's too big a ask for domestic amount to immediately offset the external shock.
So I mentioned that the IMF revised down its annual forecast for Chinese growth this year to around four percent annualized, And in the last week, your colleagues at Bloomberg Economics found that, based on a review of previous IMF forecast, the Fund tends to underestimate the depth of these economic downturns. So are you beginning to model a growth rate that is below four percent for twenty twenty five? I mean,
clearly that's below what the government is shooting for. Is China really at risk of seeing something that is sub four percent growth?
We have already downgraded our China forecast from four point five percent we projected at the beginning of the year from zero point two percent. The reason for the relatively modest downgrades of the forecast reflects a couple of considerations. First of all, as I already mentioned, in the first quarter, the growth was decent, was above a slighter above our projection, so that provides a bit of a cushion for the
year as a whole. And secondly, we do see the government to strengthen its supports for the economy and that should help. But as we again discuss earlier, we don't think the supports come fully off set the dunting in excellental demands. So taking account in all those consituations, we
have a modest downngrad of the projection. But we can come to the discussion clearly what the government is going to do, how they are going to support the economy, and how effective those policies stimulus will be will be very critical for China's growth trajectory going forward.
It seems as though China is in a very vulnerable position right now, given the fact that these tariffs are so biting. Is there anything that could come out of this upcoming pollut Bureau meeting that would give the markets a sign that Beijing is willing to indu a long period of negotiation or is this something that is out of the question, and it's more likely that China over a short period of time will capitulate and kind of give in a little bit to what the US is demanding of it.
Yeah, it's a very tough question. I think the Chinese side certainly is willing to talk, and it has and various signals, but it also laid down the conditions for discussions respect and I think the government it's something we have written in reports. There are various considerations why it's taking on these very tough stance, and it can be a simple sort of face issue you come back down and one thing you could be that China doesn't know at this point what's the US ones. So those are
the domestic issues considerations. In the meantime, there's also the international dimension to it in this particular case, unlike in the First Street War, in China was the only one more or less the only one affected by tariff, but this time it's a wide range of countries, or indeed all the countries are facing tariffs, and all the countries except China are trying to talk to trying to talk
to the US. So from again theory perspective, there's a risk when everybody tries, every country tries to talk to the US, China will end up having a worse deal, which is why China kind of takes this particular stance to push back strongly. So for various reasons, China is holding holding strong stands at this point, but I think it's still hoping to to at some point to be able to see them to talk to the US and get a trade deal to cut down the tariffs. But
in the meantime, the Chinese economy certainly will suffer. There's costs, certainly from the U s side, but on the China side, the hit can be quite immediate on the export sector, which could spread to the rest of the economy. I think the government certainly is prepared for that, and in terms of the prelicted Bureau meeting, we think you will have to send quite strong signal that it's going to
support the economy. And I think possibly, like you alluded to suggest, this is going to be a long enduring standoff with the US, and the government is prepared to support the economy.
Chog thank you so much for joining us and helping us understand more of what's going on in the Chinese economy these days. Chang Chu is Chief Asia Economist at Bloomberg Economics. She was joining us from our studios in Hong Kong. I'm Deug Prisner. You can catch us weekdays for the Daybreak Asia podcast. It's available wherever you get your podcast. Tom, thank you, Doug.
And that does it 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 Buzby. Stay with us. Top stories and global business headlines are coming up right now.