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This is Bloomberg Daybreak Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Straight Ahead on the program, a look at earnings from the biggest banks on Wall Street. What they'll tell us about the health of the US economy. I'm Nathan Hager in Washington.
I'm Caroline Hetkin. We away considering how climate change is hitting Europe the hottest.
Plus this week's fresh record for Goal. What's ahead for everyone's favorite metal in the final months of the year.
That's all straight Ahead on Bloomberg Daybreak Weekend on Bloomberg eleventh three year, New York, Bloomberg ninety nine to one, Washington, DC, Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Serrius XM one T one, and around the world on Bloomberg Radio, dot Com and the Bloomberg Business app.
Good day to you. I'm Nathan Hager, and we begin today's program with earnings from the biggest banks on Wall Street. JP Morgan, Chase, Goldman, Sachs, City Group and Wells Fargo kickoff big bank earning season with Bank of America and Morgan Stanley not too far behind. For more of what to expect, we're joined by Alison Williams, Senior analyst for Global Banks and Asset Managers at Bloomberg Intelligence. Allison, thanks
for being with us. Let's just get into it what to expect, especially now that we've heard some comments from JP Morgan Chase CEO Jamie Diamond himself. What are you looking for from the big banks?
Thanks for having me. Three key things that we're looking for for the big banks this week. First, the strength of markets is going to translate into further revenue and profit momentum, both for the third quarter and the outlook. We expect this could be a record year for capital markets revenue and that benefits all of the banks, especially Goldman, Sachs and Morgan Stanley, but JP Morgan the leader in
absolute revenue. Second, we have the out of tail wind of improving coordinate interest income as RAY expectations are moving lower, while loan growth and in particular commercial loan growth is picking up. Third, credit remains solid and we will see some provisioning We expect for normalization and loan growth, but
not much change to economic assumptions underlying reserves. So based on these three core trends, putting them together, we think their earnings could beat with upward revisions to estimates for twenty twenty five and twenty twenty six. We are seeing some estimate increases for the quarter, some positive revisions going into results, but notably when it comes to trading, which
we think is going to be very strong. Analyst estimates do tend to be conservative, so we think there is room for upside there.
Are you looking for any big shifts in market share when it comes to trading, because it seems like all of these banks are really good going after each other on that front, and we have seen this torrid rally in the stock market from the April low.
We do think that the big are going to continue to get bigger. So the ship that we've seen over time is that, you know, banks like Goldman Sachs, Morgan Stanley, and JP Morgan have gained share. We've also seen Bank America and City Group gain over the very long term.
But we think that this is going to be a quarter where we see outperformance, especially in the equity trading business from Goldman Sachs, who is the leader in that business, and absolute revenue Goldman is also the leader in M and A and we also expect them to have a quarter in that business. One of the key businesses that that has been helping the banks is prime brokerage and some of the larger hedge funds and the asset levels.
You know, when we look at some of the largest hedge funds and we look at things like record equity prices around the globe, we do think that there's going to be some help to that business. We also saw record trading volume. You know, when we look at the underlying trends to trading, the equities trading business should be supported by continued strength and prime brokerage we saw some record balances last quarter. We think we're going to see
new records this quarter. We also saw a record in US exchange trading volume, so that's a big business for the banks. But we're also going to see strength on the fixed income side of things, both within rates and spread trading. So really broad based strength at the banks and we think that that's really going to help all the competitors.
And what are you looking for when it comes to commentary from these banks on the resilience of the consumer. That has been the driver for this economy, even when we're starting to see, you know, cracks in the labor market. When you think about banks like Bank of America and City Group that have more of a focus on households, what could they tell us when it comes to credit quality.
To your point, we always do get an eye into the consumer for these banks. The one interesting thing that we're seeing at the industry level is the commercial side of low growth picking up. It really has been the credit card business that's been driving growth, especially at these large banks in recent years. But we are seeing a little bit of a shift to that on the commercial side, and we do think that that's healthy on the credit
quality side of things. As I said, I do think that we see some normalization, but we don't expect to see big changes in economic assumption. So we think that the reserve building should be relatively modest.
And when it comes to banks with a sort of a big wealth management focus, I'm thinking of Morgan, Stanley, Goldman, Sachs, those kind of firms. Is the bar high for them?
The bar is high, but we think that they are going to deliver on that bar because, as I mentioned, we've seen global equity prices and global equity market capitalization hit a new record towards the end of September. We've seen new highs already in this fourth quarter, and that is very good for wealth and banking fees, both for the third quarter and the outlook going into this quarter.
All right, well, we'll see as that big bank earning season kicks off early next week. That's Alison Williams with US senior analysts for global banks and asset managers at Bloomberg Intelligence. Alison, thank you. We move next to earnings from some of the regional banks, Citizens Financial, First, Horizon, PNC Financial Services. They're among the flood of lenders opening their books this week. Let's bring in Herman Chan to preview those results. Herman's a senior analyst for US regional
banks at Bloomberg Intelligence. These banks have been in the spotlight Herman. Of course, these results are coming off the heels of the fifth Third Bank deal for Co America that we all remember so much about. So should we be looking for more consolidation chatter when the banks report this week?
I think that's going to be the top question within the annas community is which banks are going to be acquisitive and which banks potentially are you thinking about selling themselves. We've seen, as you mentioned, the Fifth Third co America deal, and that comes on the heels of P and C buying a bank in Colorado, Club First Bank, which really boosts their Denver presence, and also Huntington, which is an Ohio based lender that's going into Texas with It's a
very text deal. So there is definitely some consolidation that's brewing and we'd expect that continue going forward.
And of course Fifth Third and co America are both going to be among those banks opening their books. What are you expecting specifically from those results?
Yeah, so Fifth Third specifically has talked about some strong lending trend, so that's great to see, and we'd expect some further improvement in their top line. What was the surprise for a lot of the investment community is that Fifth Third mentioned that they are ensineered in this Tricolor bankruptcy, so that's going to create a fairly large credit loss
for them, which will hit the third quarter numbers. We view that as more of a one off issue that shouldn't reverberate throughout the entire loan book and throughout the industry, but it is something that will affect their their three
key reporting. In terms of America, co America has been one of the banks that has taken a bit longer to recover from the SVB issues a couple of years back, and so they're they're along the way of trying to shore up their balance sheet in terms of their deposits and deposit repricing and growing loans, but that'll be more steady or going forward, and get the fact that they're going to do this deal for fifth third, I think that's going to be less of a priority for a
lot of the analysts and investors.
Are there some other banks reporting this week that could be in a similar situation as co America and potentially be acquisition targets themselves.
Yeah, that's a good question. That's one of the things that we'll try to suss out. There are banks that in our coverage that we think are probably better buyers than sellers at this point. So banks like Regents, which operates in the Southeast and has a really strong valuation multiple that has the currency to really do deals. Another bank based in Buffalo, New York, M and T Bank also has a track record of doing deals and has
a strong currency to do deals. So those are the ones that I think the market's going to focus on in terms of they're going to be the next to potentially be inquisitive.
You mentioned one earlier, PNC Financial talking about their expansion plans in the Southwest in particular. Do you expect that to show up in the results and bolster the balance sheet?
At this point, that deal needs to be closed, But I think the next question for P and C in particular is what's next for them. They've been vocal about potentially doubling their balance sheet to over a trillion dollars in assets, and this deal, while helpful, it's not going to get them there anytime soon. So there's going to be some organic growth, but really there's going to be more consolidation over the next several years. Where do they
go next. They've done the deal with First Bank, They've acquired BBVA USA, which really is the jump start for their south West and Sunbelt expansion into California as well, and now what's a coast to coast lenders? So where do they grow from here? That's going to be the next question.
Interesting Now, one other big I mentioned earlier has been coming off its own deals as well. What are you looking for from Citizens? Yeah.
Citizens has done a string of deals over the past few years. They really filled in their market footprint which was missing in the New York City metro area with Investors Bank Corp. And New Jersey and then they acquired the branches from HSBC in the New York City metro area, so that really fills out there their traditional Northeast New England footprint with the mid Atlantic footprint. So they're comfortably
at Wisconsin the northeast. And do they expand more outside where a lot of the its large competitors have moved into the southeast as well, So that's going to be a top of mind and a good question for them. There's some scuttle but in the investor community if Citizens is going to be a seller or a buyer. So that's an ongoing question, particularly as larger banks try to get bigger to compete with the likes of jpmworking and ba AA.
All right, well, looking forward to regional bank earning season. Thank you for this, Herman, Thank you. That's Herman Chan, senior analyst for US regional banks at Bloomberg Intelligence. Coming up on Bloomberg Day Break weekend, we look at how climate change is hitting Europe the hardest. I'm Nathan Hager, and this is Bloomberg. This is Bloomberg Daybreak WEEKND our global look ahead at the top stories for investors in
the coming week. I'm Nathan Hager in Washington. Up later in our program after a fresh record for gold, what's ahead for bullion heading into November. But first in the coming days, global climate bankers, forecasters, and government ministers will gather in London for the annual New Energy Finance Summit. The number of extreme weather events keeps rising and the
economic damage they cause going up too. With the US pushing the EU to stop buying Russian gas and to cut back on green regulation, many are asking if the continent's green plans for the future are still intact for more, let's go to London and bring in Bloomberg Daybreak Europe anker Caroline Hepger.
Nathan, Europe is getting hotter two point four degrees celsius hotter than before the Industrial Revolution. That's four and a half degrees fahrenheit For our US listeners. That means the continent is warming faster than any other region on Earth, which in turn is disrupting the continent's weather. It's also getting harder to predict when power grids need more energy to cope. That hasn't stopped some European politicians from calling for the rollback of green pledges as they grapple with
high costs of living. Greg Jackson is chief executive officer of the UK's largest energy retailer, Octopus Energy. He told us that's a knock on effect of the shift in America.
You can't ignore what happened in the US. You know, you went from an administration that passed the ira you know, one of the biggest commitments to government support for a specific set of industries in history world changing to an administration that use the phrase drill, baby, drill. I think that has really set the tone in a bunch of European countries, including the UK, where there is now an intense debate about our future of energy.
That was October's Energy CEO Greg Jackson there on this week's Zero podcast, So what does the future of power look like? Well, in the next few days, the European Union's Energy Commissioner and Portugal's Energy Minister will be joining executives right here in London for the annual BNF summit. Joining me now as Ben Vickers, who is our chief editor of Bloomberg NEF, and Joe Wurtz, our weather and climate reporter here in London. Welcome to both the Joe,
can I start with you? Firstly? We're thinking about climate change. Summers in Europe have seen record breaking heat waves with really serious consequences. I wonder when you think about your work, your job as a weather and climate reporter, how has that changed?
Well, I mean isn't that the joke right that the weather is always always changing? You know, my job has changed quite a bit, you know really as I started as a climate and environment reporter, and increasingly that became more and more about extreme weather. And you know, extreme weather really shapes how people, businesses, you know, power, energy move across the world. It dictates trade, economy and people's lives, and that's increasingly you know, the story that that we're focusing on.
Ben, how are Bloomberg's n EF teams looking at this changing world? The impact of climate change are kind of big big thought?
Yeah, I was going to say, that's a very very big question. So, I mean, basically, what we do. We're a data supplier and we do analysis on the back of that, and we're looking at the shift in the
economy's worldwide to basically a lower carbon economy for everyone. Now, climate adaptation and climate risk have come to the fall, So we're adding new areas of research to help companies and policymakers sort of navigate not just the climate risk and the need for climate adaptation, but also how to keep businesses going, keep them profitable as we go down the roots, energy transition.
Really energy transition.
Yeah, it's very much a changing picture as well. It's not as bad as the weather, but yeah, the shifting.
Well, thinking about that weather element, Joe. In the winter months, Europe has had in the past fears that a sudden cold snap would cause gas prices to spike. This in amidst all of the other kind of energy challenges that we have, is there also a similar concern about that this year?
Yes, absolutely, We've already seen an early season snap. We had had a big one in Eastern Europe already, and you know, traders and governments are really locked in right now. This is basically like cold snap hunting season for for
governments and traders there. Their eyes are on the forecasts, they're they're they're they're watching for any sign that a drop in temperatures could really throw off balance the sort of fragile state of the energy markets right now, you know, increase competition for for for for gas, and so you know, any any any deviation there, any any cold snap can really raise demand and create ripple effects.
And gas storage has also been an issue. It's been an issue in the UK and across Europe in past winters. Is it equally bad this time around?
So you know, UPE did a did a good job stockpiling gas over the summer. It's still that stockpiling was below what is is historically the summer you know norm for stockpiling, but it did beat some expectations for that stockpiling. So they you know, we started the natural gas winter essentially, which starts in October. So started that's with about eighty three percent of the stockpiles four which was better than a lot of people expected, but still not as good
as it could be. But we've already seen with that first cold snap we had recently in Eastern Europe that some European countries are already having to tap into that gas suppli absolutely.
Now, of course, there have been incidents of blackouts in Europe, and I think this is going to be quite crucial when you speak to Portugal's energy minister, who is speaking actually at the Bloomberg NEF Summit just in the next few days. I'm sure there'll be a lot of interest in understanding what she has to say about how the
country dealt with that blackout. It has been blamed both on the power grid and also on renewable energy, and Ben, you're going to be interviewing her, what are you going to try to ask and find out.
Well, there's a couple of things. There's obviously the human side to this, because being energy minister and waking up more morning with the lights off, not just in your house or down the street, but across the country. It is probably a nightmare. So there's that personal experience of
finding yourself in the hot seat. And well, three months after that April twenty eighth blackout, the minister presented thirty one measures to basically address all the problems they've been able to identify, and some of those obviously within her remit,
those are the ones she's trying to address. But there's a bigger, bigger issue of interconnections basically between European power markets, and for a long time Spain and Portugal have been asking France to improve the connections between those countries, and there's a sort of a little bit of a tift between them and allegations that their interests for the nuclear power plants were able to sell their power rather than allowing solar from Spain to come in really cheaply and
so on, So there's a little bit of EU negotiation to go on there as well. But they're investing one hundred and thirty seven million in their grid to upgrade that they're putting in a couple of new power stations that are going to light up in January, which are what they call they call them black start stations, which is basically when everything goes off, these switch on automatically and sort of a first line of defense. But there's
actually quite a thirty one of these measures. So we're going to be talking to her a lot about what the plans are.
What the plans are on what she's delivering and how quickly and so on. Yes, I think that will be really fascinating in terms of though the other major theme surely is about the backlash against green energy. I mean a little bit of that comes through in the discussion around Portugal and the spending required Joe for climate adaptation. This is a significant issue in the US. It has
also rippled across Europe. Is it gaining traction in particular parts of Europe or for particular areas in the energy space.
You know, it really seems to be gaining traction in all sorts of different corners across Europe. The context here is that Europe's energy grid energy markets are increasingly renewable and increasingly rely on the weather. They're dependent on how much sun is shining, how much wind is blowing, and also comes with all the you know, international competition for gas and other factors. Geopolitics can influence the supply side
of that equation. So you know, increased pressure on all those markets are definitely, uh, you know, raising the stakes. And in each of these countries, you know, these ambitious climate targets that they set up have have really been challenged.
You know, last month was supposed to be a big milestone, right, Europe was supposed to get together and come to this big agreement, this final agreement on their on their long term twenty forty targets, and and and they kicked that can down the road, and and now those countries are fighting about that. There's more domestic spending demands on each
of these countries. In some cases, these countries are wanting to siphon off more money for defense spending and things like that, and and and and more political uh unease with some of the ambitious spending targets that go along with these these green goals.
And if that wasn't enough, you just have to throw in artificial intelligence, which we have spent months thinking about, you know, the big build out of our sovision intelligence the Energy demand ben that is going to also really underline some of the difficulties in the energy space. How do you think that the impact of AI is going to affect your forecast when it comes to power demand? How are you thinking about this oncoming technology.
So there's a mass of amount of interest in the impact that AI is going to have on power demand, on prices more generally as well for consumers. Yeah, we've been looking at what the likely development of AI data centers basically the hyperscals, but we're looking at out to twenty thirty five the power demand from data centers. We're expecting to have quadrupled from where it is right now.
That's only actually four point four percent of all the electricity demand worldwide, So it's a small proportion of the electricity worldwide, but it's where it happens and when it happens, I suppose, which is really important. Now, if in twenty thirty five you put all the data centers together, they would be and to look at them as if they were a country, they would be the fourth largest country in the world, behind the US, China, India. Then there's
data centers that sort of a demand center. So it is good, it is going to be very big. That said, as one of the one of the ten executives in one of the AI compies are saying this week, you know, if there's only one thing you really need to know about AI, which is it's changing so fast and we don't quite know what's going to happen. So so the forecasting here is going to be is obviously going to
be quite tricky. Yeah, short term, we expect the demand to be demand for power to be supplied by a rather traditional sources, so it is going to be cold and gas coming in. That's in the short term because the buildout is so rapid so places in the US like Virginia and Oregon, Texas and Ohio which have classically I've been able to have been able to supplied again to benefit from the immediate demand, but longer term than renewables have an opportunity to move in here.
Yeah, and that's that's a turn that we see, you know, generally in such a type market like Europe. Is that not just with data centers, which are traditional sources of demand for for for for electricity. When the demand gets high and the prices spike or maybe the supplies can you know, constrained, they switch on the traditional sources of
of of of power to supplement that grid. That means, you know, switching on a gas plant and using what can be switched on more reliably than maybe the wind or the solar, which you know might not be coming in the middle of a cold, dark day.
EF's Ben Vickers and Bloomberg's Jay Wurtz thank you so much. We'll have full coverage of the upcoming bn EF summit on the fourteenth and fifteenth of October across Bloomberg platforms. I'm Caroline Hepge here in London and you can catch us every weekday morning for Bloomberg Daybreak you at beginning at six am in London. That's one am on Wall Street.
Nathan, Thanks Caroline. Then coming up on Bloomberg Daybreak Weekend, Gold retreats from a fresh record, we speak to one of Wall Street's biggest names about the future for everyone's favorite metal. I'm Nathan Hagar, and this is Bloomberg. This is Bloomberg Daybreak Weekend Global look ahead at the top stories for investors in the coming week. I'm Nathan Hager in Washington. This week, gold prices topped four thousand for the first time ever. This year has seen a meteoric
rise for the precious metal. Year to date, it's up a whopping fifty percent, and that gain is catching the eye of one of Wall Street's biggest names. Ken Griffin, the CEO of Citadel, says the surgeon gold could point to a move away from the dollar, and he says that's concerning. Ken Griffin sat down for a wide ranging interview with Bloomberg's Francine Loqua to way in on gold's future and the prospects for a US recession on the horizon. Let's listen into that conversation now.
Let's just cut to the chase.
Inflation is substantially about target and substantially above target in all forecasts for next year. I mean, it's part of the reason the dollars depreciated by about ten percent in the first half of this year. It's the single biggest decline in the US dollars six months in fifty years. Gold is that record highs and the appreciation in other dollar substitutes, to use that word loosely, and items like
crypto for example, is unbelievable. So we're seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de dollarize or de risk their portfolios visa vus sovereign risk.
Are you really seeing that?
Just check the price of goal. Well, I mean, I don't have to look very hard.
Its own, it's a life of its own.
Gold, No, but it's a life of its own.
As you see sovereigns around the world, there's central banks around the world, as you see individual investors around the world go, you know what, I now view gold as a safe harbor asset in a way that the dollar used to be viewed. That's what's really concerning to me and There's been plenty of published research in recent weeks months about foreign investors now when they buy US equities,
hedging the returns back to their local currency. So that again is a bifurcation of I'm going to bet on American business, but I want to immunize some of my sovereign exposure to the United States.
Can the previous panels talking about the shutdown, given where we are in the shutdown, can the FED properly do its job at the end of the month in these circumstances where we may not have enough data.
I don't think the data over a few weeks should really be that determinative to the FED.
I mean, that's sort of over.
Overgrandized, is what the impact or importance to that data is, particularly with the sampling errors that's intrinsic in how that data is produced and compiled for the FED. I just think that's a bit of a misplaced warrior concern.
Do you worry about the shutdown full stop?
Look?
Shut down a symbolic of a different problem, which is the dysfunction between the Republican and Democratic Party on resolving issues with respect to the budget of the United States of America, and to be clear both parties today are guilty of just profligate spending. You know, as I said at the start, the US fiscal situation is that of a nation that's trying to work its way out of a recession.
Except the reality is we're.
Multiple years into a very high period of growth. This is where we should be running a deficit of you know, in the Clinton day, as we ran a surplus at this point in the business cycle, We're now running a deficit of close to six to seven percent, depending upon on where a number of things land. That is just
completely irresponsible. And so what's amazing is we're having a shutdown debate over the scheme of things a relatively small amount of money, and neither party is stepping up the plate to deal with or grapple with the reality that the United States needs to endure a fair amount of fiscal reform to be in a path for long term sustainability.
Why is it not being talked about?
It's politically unpopular, and unfortunately politics have gotten shorter and shorter and shorter in horizon. You know, can you imagine that, like I said, in the Clinton day, as they signed a budget with a surplus, and yet that was in our lifetime. It's been a long time since we've seen that level of discipline in Washington around managing the affairs of the US economy.
You worry a lot about debt, or you worry about debt, what's the way I don't.
I mean you must also, like we all have to worry about the level of debt we have in the United States, and the market is pretty.
Cool about it. The market is we'll look past it for a few years.
But if you go out with anybody to talk about what they worry about.
With respect to the US economy, the.
Fiscal situation is almost always top of the So you know, I think there's one thing to keep in mind, which is acid prices reflect a level of exuberance that we see today.
But I got to tell you, if you're out with.
With anybody who's the asset manage of business top of his concerns, the level of spending in Washington is always top three, if not.
Number one, on the list.
What's the way out?
Well, the way out is we need I mean, first and foremost.
Growth is an important part of the way out, and this is where the Trump's administration focus on deregulation is so important. It's so important in terms of creating an environment in which growth can exist, like really important. Unleash unleashed the animal spirits in America. And the one thing about this country different than most countries is the entreal class in this country is incredibly ambitious and it's really able to make profound changes happen.
I mean, if you look at if you look across our investment.
Portfolios, a substantial portion of all the money we invest is in business has started in the last fifty years. I mean, it's it's remarkable the wealth created in this country by newly formed businesses.
It's just stunny. It's the envy of the world.
And the Trump administration is certainly taking steps to help encourage that continued American success story. But we also need to give real consideration to tax policy and to spending policies. And I think that the the how are they rebranding, rebranding the Big Beautiful Bill at this point?
Do you know what the rebranding is going to be? Yet?
How would you rebrand it?
Well?
I mean, I don't think there's a nice way to put lipstick on that pig. I mean, it's it's a it's a pro cyclical tax cut late in the in the economic cycle, and you know, everybody in this room, like, let's be clear, no one wants to pay more in taxes. But if you're not on a sustainable set of tax policies in the best of times, what policies.
Will that unleash in the worst of times?
You know, for example, the United States head towards a wealth tax when the inevitable bills come due, will be head towards tax rates that we last saw in Europe sixty seventy eighty percent as the inevitable bills come do, Like, what is the long term consequence of these policies.
Right here, right now?
And I think people are very concerned about what that might be in ten or fifteen or twenty years. How to inheritance taxes have to change in light of the tremendous amount of wealth held by the baby boomers and the tremendous amount of debt that their generation was a part of. So I think these are going to be really interesting policy debates that will merge seven years, ten years, fifteen years down the road, which could have some pretty
adverse consequences. I mean, particularly for America. Not furialism today is not sure. You're like, if I build a great business, I will get to keep a substantial amount of wealth I create. If you go back to a world of seventy percent tax rates that we had in this country in this last century, maybe throwing a wealth tax for good measure you may really impact that zeitgeist that is so powerful in terms of our economic prosperity.
And where do you see the animal spirits in the US Because a lot of chief executives say, look, they like some of the policies, but there are also a lot of policies it could be visas or others, and because they're uncertain where the next one comes from, they're a little bit reluctant to spend.
Right now, Well, I mean, let's be clear that the Trump administration has been able to give us a lot that we love and a lot that we hate. Right, They're an equal opportunity giver. And on the pro side is clearly the push for deregulation is clearly a message to American whether it's small business owners or entrepreneurs, that this country wants to see our commercial class succeed. That's like a foreign language to the Biden administration. I mean
they had no connectivity with American business. The Trump administration is very connected in a very different and profound way.
But having said that, the terror policy has.
Had incredibly uneven impacts across the commercial landscape.
I mean, I really do feel sorry for the small.
And medium sized businesses that are single source in terms of their goods from from Asia who are now seeing tariffs that are at levels that are unimaginable in the context of their business model. They're really going to be in a world of hurt over the months ahead, and they're not going to have the flexibility that a large conglomerate will have and being able to re architects, supply chains and navigate around these issues.
So that's an.
Area that's that's quite painful to watch. The impact on farmers. I mean that the Chinese have voted very clearly to buy their food products from other countries, and it's really hitting the American farming community quite hards. That's painful to watch play out. The immigration policies, I must say, I scratch my head over we as a nation are facing a birth rate that's below that required to maintain our population. So unless the United States actually wants to shrink in size.
Over the next fifty years, we're going to have to permit immigration, and I would think that our policies would be around trying to encourage the best and brightest around the world coming to the United States and building careers and building families and building roots in our country. You know, I've long said every single student in the United States with a STEM degree should get a green card, staple
that diploma and a path to citizenship. You know, roughly fifty percent of all the Silicon Values startups are started by immigrants. I mean, it's just remarkable how this country has won in the global war for talent, and.
We should continue to pursue that aggressively. And then on the millions of people who came.
Across the borders in the last several years, you know, I applauded the President for controlling our borders. It was really important to stop that flow of illegal immigration. And unfortunately, as you and I both know, a number of countries in South and Central America didn't send us their best and brightest. They did empty their prisons and send people to the United States that we really should not have welcomed warmly. So I applaud the President for starting the borders.
But those who've come to this country, who have placed roots here, who are working and contributing to our economy, we should find a path for them to be able to stay here and continue to contribute. They're important in agriculture, they're important construction, they're important in the leisure industries. They do a lot of jobs that will be damn near impossible for us to fill with American American born labors.
That's just gonna be really tough.
And what gets lost in some of the debate is they're not taking jobs from Americans buy and large, they're actually playing critical roles at help.
American businesses thrive and succeed that.
Allow us to employ more people at higher wages across the broader economy. So I think when it comes to immigration at large, I think we've come off the rails and we really do need to rethink our policies.
That's Citadel CEO Ken Griffin speaking with Bloomberg's franc Sine Laqua. The conversation was part of this week Citadel Securities conference in Manhattan, and for more you can catch the full interview on the Bloomberg Podcasts YouTube channel. 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 DOUN, markets overseas, and the news you need to start your day. I'm Nathan Hager. To stay
with us. Top stories and global business headlines are coming up right now.