(Radio)

I'm dead Chrisner to the central banks of Australia and India take cues from the Fed. I'm Amy Morris in Washington. We're watching the Senate runoff in Georgia. That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg eleven three on New York, Bloomberg one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco d A B, Digital Radio, London, Sirius XM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg

Business App. Hi, everybody, I'm John Tucker, and let's start today's program with the swirl of crypto chaos and joining me now Bloomber, Katie Greiphil and Katie, we've had some big crypto companies go bust. The contagion and ripple effects still swirling as we speak. Here's Tim Adams, he's the CEO of the Institute of International Finance. Bubbles are gonna pop and f t X as an example of business plans are made on a napkin that just didn't work.

But I don't think it's crypto per se. I think what we saw with that particular enterprise is just really bad governance in bad oversight, bad governance and bad oversight, as he puts it. In the other coming weeks, we're gonna have the House Financial Committee convened for a hybrid hearing entitled Investigating the Collapse of f t X, Part One. So Katie, um, the horses left the barn and now it's time to close the barn doors. Hab. I mean,

it's a complicated regulatory puzzle here. Who actually has oversight, especially in the case of f t X. I mean, clearly there was some failing here, but just a reminder of what we're dealing with. This was a Bahamas based exchange. What a US regulatory agency should have done about that as an open question right now. Congressional hearings usually don't get my attention, but I'll be sitting down with a big bowl of popcorn for this one. What do you expect?

Is he going to show up? Sam Bankman Freed, the head of bankrupt Well, he's given an interview to just about everyone. It feels like I think that the reporting has shown that they would like him to be in person physically there, whether or not he will actually come to you. Maybe he shouldn't come to the US because somebody's gonna want to put some cufflings on him. Hopefully he's talking to his lawyers. I'm not I'm not sure

who's advising him here. But in any case, uh, theoretically he will be appearing in front of Congress, or at least that is the hope. But I don't know he has. We've heard a lot from him between the New York Times interview, his tweets, the reporting from other outlets as well. What did he say in that that interview with andrews ross Sorkin? It was pretty amazing. I mean, the big takeaway is that he said that he wasn't trying to

commit fraud. So the intent was, well, no, I'm not sure that you know in the annals of fraud history that you really start off trying. It's sort of like a well worn path, like unless you're a cartoon villa in theoretically most people don't start off with fraud in mind. But I mean, he was very candid. It was a long interview. First of all, this of course, was at the New York Times deal Book summit with Andrew Ross Sorkin.

He said, I made a lot of mistakes. There are things I would give to be able to do it over again again and again. I didn't ever try to

commit fraud. There was a lot of talk about whether he knew that the customer deposits at f t X were being com mingled with the trading shop, which is Alameda Research, which when you put you know, customers funds into different accounts, that's that's a big no no. Yeah, for sure that that is typically on the naughty list, And the Wall Street Journal has reported that that's exactly what was happening, that they were basically funneling those customer

funds into the trading shop to fuel those risky bets. And you end up with a ton of leverage and when the market moves against you, here we are. Yeah. I don't want to get too complicated, but f t X was not just a platform, but it was other stuff too. There was a hedge fund, did you pointed out and they had their own token, right, yes, So the exchange out of token, the f t T token, which it's hard to describe. I mean, Matt Levine of Bloomberg Opinion has basically described it as kind of like

equity in the exchange itself. But I mean, to your point. The thing about the crypto industry, the reason that it has this very uh, these strong connections, this interconnectedness, is because a lot of these companies are wearing a lot of hats that would be separate roles in the traditional finance world. It's not uncommon for a firm in the crypto industry to be a custodian, to be a brokerage, to be in exchange. Again, those are all distinct roles

in the world of traditional finance. But these crypto companies were putting them all under one house, and then it sort of creates this really what can be an unstable situation, as we've seen play out and he complained about too much regulation. He did so he felt like he had spent too much time trying to get licenses for f

t x. Uh. He said of the regulatory process that he had spent hundreds even thousands of hours meeting with regulators to try and get approval for f t x US, the US arm of the platform to offer futures trading that of course didn't work out. Maybe for the best. Okay, this I'm I'm betting this will be one of the first questions if he shows up, if he's there for any congressionally hearing, where's the money? It's a great question. No, it's does he know they were still talking about missing

billions here? Uh. The the people who are handling the liquidation process, of course, John Jay Ray, the third is at the helm of it, the new fd X CEO. He of course handled en Ron. He's the he's the court a point at the bankruptcy court appointed dude who's done every major bankruptcy you can think of. Yeah, he Ron,

I think exactly exactly. So he's been around the block a few times, and I mean the words, he hasn't minced words when it comes to ft X. He's talked about completely just so unprofessional in terms of the record keeping, basically that it didn't exist. So one of the things they're trying to do right now is figure out where all the billions of dollars of customer deposits when they've located some of the bitcoin in cold wallets, for example. But there's still a lot to uncover here. Katie, always

a pleasure to appreciate it. Bloomberg's Katie Grindfeld helping us explore the world of crypto. Katie, thanks a lot, and just to hand. On Bloomberg Daybreak weekend, I'll look at the inflation picture and what next in Europe. I'm John Tucker. This is Bloomberg. This is Bloomberg Daybreak Weekend, our global look ahead of the top stories for investors in the coming week. I'm John Tucker in New York. Up later in the program, big week coming for central banks in

Australia and India. But first November's inflation numbers from the countries using the Euro will lay the groundwork for the European Central banks next decision December fift But in the coming days a raft of other economic data will tell us more about the state of economies across Europe and from or lets into London and bring in Bloomberg Daybreak Europe anchors Stephen Carroll John The predictions for this winter were dire for Europe, warnings of blackouts forced factory shutdowns

due to the energy crisis provoked by Russia's invasion of Ukraine. Milder weather, though until early November, has avoided the worst scenario for many major European economy, but inflation remains close to record high. As our tief eerupoconumis. Jamie Ross joins us now for more Jamie's The latest CPI figures for the Aurozone showed a slowdown to ten percent from ten point six percent in October, better than had been expected.

What was driving us, so the bulk about has been has been best news on energy prices, so particularly in the Netherlands and Spain, and I think to some extent Belgium that these countries see very quick paths through from wholesale gas prices into into retail prices. So you know, that's what we're seeing. It's taking some pressure off, it's beaten consensus to the you know, to the downside, and you know, actually the cp just needs that it just needs some good news on inflation. We've had a year

and a half of upside surprises. This is the first time I've got a downside one in that period. And does it give us any indication as to whether or not we could be close to a peak of inflation and we're still talking about ten percent even though it has come down slightly. I think we probably are past the peak, depending on clearly things could things could change, right, We're not only just it going into winter now, we're not actually there and so it could easily prove cold things.

Could you know that the reason that gas prices have fallen is partly because the risk premium has just gone away that could come back. So it's I think it's too early to say to you know, to rule out another surgeon inflation. But my best guess is that from what we know now, probably we've we've passed the peak and we do like your best gases, they proved to

be right quite a lot of the time. How much divergence are we seeing among countries in the euro Area, because that's part of the picture now that's emerging as we're getting you know, are the individual figures that we've gotten from countries. France still seems a little bit sticky, but we did get the sign of a slowdown in

Spain and in Germany. Yeah, that's right. I mean, we know that there are quite big differences in the energy mix in different European countries, France in particularly because it's reliance on nuclear and also that you know, government policies just cap prices there. So we've seen much low inflation in France and the rest of the Eurozone, but it's

gonna last for much longer. So we have very different experiences, which actually trying to say in different politics as well, and just you know the way people are people are viewing the crisis itself. Well, this figures that we've gotten for the broader Eurozone will be complemented by more data that's coming in the next few days, of course, going to form the basis of the next rate eyed decision

by the European Central Bank. ECB President Christine Laud was speaking to the European European Parliament in Brussels in the past few days. She said she'd be surprised if inflation has peaked. By reducing people's real income and pushing up costs for firms, high inflation is dampening spending and production.

High uncertainty tied to financial conditions and weakening global demand are also weighing on economic growth, which is expected to continue weakening for the remainder of this year fourth quarter and the beginning of next year first quarter of twenties three. That's to be President Christine are talking there about the outlook for the months to come, and we will get final third quarter GDP data for the Eurozone coming up

in the next couple of days. The last you know that the preliminary readings for the third quarter did show small growth. But where where where does this go from here? What's such ajectory for for the euro Area? But I think most people are expecting a shallow ish recession over

the winter and going into next year. But I think what's one thing that's interesting now is that because energy prices have fallen back, the impact from the gas crisis, that the direct impact could actually end up being smaller then the e CBS response to it. Because the if you just use like a simple model and you compare what what the impact of gas prices is too to the impact of higher higher interest rates, it's now looking like higher interest rates could be the dominant factor driving

the slowdown in the Eurozone next year. So it's um, you know, the the queue has been potentially worse than the than the and the illness to start with. Well, this, of course as we're looking ahead towards the next meeting of the European Center Banking in just under two weeks time. Now, what is the calculation the ECB has to make here, because it's this question of their only mandates is inflation.

So how much do they actually care about you know, it's not the same as the fair so how much they actually care about the rest of the economy and kind of striking that balance. So I think there's two things they need to think about. One is the risk from just high headline inflation what that does for inflation expectations. Now on that side, on that dimension, things are looking better, right,

So headline inflation surprises downside is lower. That on balance, I think means that the UP doesn't need to do seventy five when it meets in December. It can do fifty. That's fine. Across another dimension though, they're going to be looking much more closely in months to come at core inflation, underlying inflation and that's going to be pretty sticky, so we think that they're going to keep hiking rates in twenty three UM. So it's it's those two things they're

looking at slightly. One one calls for urgent action headline inflation. One calls for something that's going to be drawn out into next year. Given that core inflation element, though, does that also tell us that we're going to be looking at rates higher for longer and that they will hold at a certain position, which you know, in the history of the Euro Area, we haven't really seen long periods of higher interest rates. So I think what's going to

happen is this this focus on core inflation. I think they're only going to be able to bring the cycle, the hiking cycle to a close once they see co inflation dropping, and our forecasts show that happening around the beginning of the second quarter next year, so we think that's when they'll be they'll have like the breathing space just to to stop hiking rates, and we think they'll

get to three percent on the refinancing rate. Then I think it won't be until perhaps was the end of the year that they feel they can cut and so we are going to see potentially that the high relatively high interest rate period for for much of next year. And again, one of those challenges the ECB has is a very diverse group of countries that it is, you know,

the monetary policy institution. For either countries within the euro Area that are going to suffer more because of higher rates, there are I mean, the CBS own models show that when you hike interest rates, countries like Italy and Spain are hit much harder than countries like France and Germany.

And actually Italy is one of the country is just going to be worse hit by the gas crisis, so it just doesn't need it um So we are going to see differing performances across the Eurozone going through when we're looking at the broader economic picture, is it too soon to worry about next winter or is this where policymakers should be thinking too now about how the energy crisis might play out over the more medium term. And let's think about it. We've entered this winter missing six

months of gas flows from Russia. When we go into next winter, we're gonna be missing twelve months of gas flows from from Russia. So the problem is going to be bigger The question is how quickly can the European economy adapt to the new energy reality. We've been surprised at how much energy has come into the Eurozone and also we've got lucky with the weather. But I mean it's not going to be an easy winter next year either. Thank you very much to Boomberg Steve economist Jamie Rush.

I'm Stephen Carroll in London. You can catch us every weekday morning here for Bloomberg Daybreak Europe, beginning at six am in London and one am on Wall Streets. John all right, Stephen, thanks a lot. Just ahead on Bloomberg day Break weekend, look at inflation issues in Australia and India, impossible central bank moves in those countries this coming week. I'm John Tucker at This is Bloomberg broadcasting live from

the Bloomberg Interactive Broker Studio in New York. Bloomberg elmon Frio to Washington, d C, Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg six to the Country, Serious XM Channel one nineteen to London d A B digital radio, and around the globe. The Bloomberg Business APT and Bloomberg Radio dot Com. This is Bloomberg day Break weekend. I'm John Tuckery in New York with your global look ahead of the top stories for investors in the coming week.

Policy Makers at central banks in Australia and India will be grappling with some big questions this coming week, and for more, let's go to Hong Kong and Bloomberg Daybreak Asian host Brian Purtison and his colleague Doug Prisoner. John, the central banks of both countries are facing interest rate decisions as they grapple with the dominant issue across much of the globe, high inflation, and both economies are now

feeling the effect of aggressive monetary tightening. We want to take a closer look now with Bloomberg's Global Economics and Policy editor Kathleen Hayes. Kathleen, let's begin with the Reserve Bank of Australia. The RBA will meet on Tuesday, and the question that I have for you will they borrow from the Fed's playbook, at least what we seem to know of it, as it was implied this week from FED chair J Powell that the size of rate hikes will be reduced going forward fair statement. Well, let me

tell you about the Reserve Bank of Australia. By starting with the Bank of Korea. The Bank of Korea last Friday, uh it was pretty widely expected they had they'd done to fifty base point rate hikes July and October and and other than that. When they started back in July one,

they had did twenty five basis point hikes. And one of the big reasons they were expected to dial back to the twenty five basis point hike was because the feder Reserve has been signaling more and more strongly that they're not going to do seventy five bases point rate hikes. They're gonna go back to fifty in parts so they can pause and see the impact of the recent rate

hikes to date. So that's another reason I think why you know the b okay has gone in that direction, that the r b A is expected to do so as well. And I think just generally the conditions in in Australia or another reason why they're expected to do that. The Reserve Bank has surprised markets three out of ten meetings this year. That's that's quite interesting in itself. It means that their communication policy a little bit different from the Fed. Is it likely that they'll surprise us again

this time? Well, certainly we can say Phil Low isn't afraid to change his mind when he sees what's going on in the economy around him, and go ahead and do what he thinks needs to be done. And in fact we know that now traders, instead of seeing the twenty five basis paint rate hike that is is by far and away the majority of view, they think it

could be a fifty basis point hike. And in fact, when he started uh tightening last May, if he did a quarter point hike to zero point three when the market was pricing in fifteen basis points to start on winding the last of the pandemic eric rate cuts and returned to the usual basis point move, then he followed that up with a surprise half point increase in June. Then he broke ranks with central banks around the world

in October by down shifting to a quarter point. And he was talking about the sharp tightening already delivered by the r b A and that it had yet to work it's ready through the economy, so a small hike would actually leave him the key rate at three percent, and a lot of investors are saying that will give them some time to assess the incoming data flow over

the summer break. So I'm wondering whether or not he's going to get any push back on reducing to twenty five basis points that there is a contingent saying, hey, it's time to remain aggressive, because what we've been hearing from a number of central bankers, when you lose control of the inflation problem, it's really really difficult as time goes on to attack it in a way that's going

to be effective. There was an investment conference recently in Australia that Bloomberg News wrote about, and the theme here is that they're playing with fire by signaling a higher tolerance for inflation, by slowing the pace of policy tightening and trying to deliver a soft landing. That's one of the things people criticize the FED for. It's a little bit contradictory. Don't want to have a soft landing and

still be super aggressive or aggressive enough on inflation. Another comment, it feels like they're playing with fire, but the payoff is a pretty good one if they can achieve that. Uh and of course that's as you just mentioned, I mean risk the inflation expectations will become un anchored because it's going to be a long time to keep inflation

outside of the target band. One estimate that Australia we have four or five and six percent inflation for a few years and that that could come back to haunt them now the day after the r b A meets, so we'll have an RBI decision. And is it is it too early for them to take their foot off the pedal. Yes, they're supposed to, although they are supposed to do a smaller thirty five basis point hiked to

six and a quarter percent. About you know, well more than half, about two thirds of investors saying they can't stop fighting inflation. That's for sure. It's slow to six point seven seven percent in October um, and it's been but still it's been above the upper end of the two to six percent band for all year. More modest, modest rate rise of thirty five basis points would follow

a series of fifty basis point hikes. And it again it's coincides with the fetter reserve sending a signal that they're going to shift to smaller rating increases at their policy meeting this month. Kathleen, thank you so much for that preview of the r b A and RBI meetings. Boomberg's Kathleen Hayes, Global Economics and Policy Editor. I'm Brian Curtis, along with Doug Krisner. You can catch us every weekday for Bloomberg Daybreak Asia, beginning at seven am in Hong

Kong and six pm on Wall Street. John, Thanks Brian and Doug. And just to hand on Bloomberg Daybreak weekend, they hotly contested Georgia runoff race. I'm John Tucker, and this is Bloomberg. This is Bloomberg Daybreak Weekend, our global look ahead of the top stories for investors in the coming week. I'm John Tucker in New York. Send a runoff election coming up Tuesday in Georgia and for more LEDs in to the Bloomberg newsroom in Washington and Amy Morris. Amy,

thank you, John. This race is being very closely watched, with incumbent Democratic Senator Raphael Warnock facing Republican Herschel Walker. Joining me now to talk about all of this. Bloomberg Washington correspondent Joe Matthew, host of sound on with Joe Matthew. He'll be in Georgia covering this key race. Um, Joe Warnock has been trying to pitch a pretty big Democratic

tent down there. This race really is not about party, but it is about who has the character and the competence to represent these students and to represent all the people of Georgia. And meanwhile, herschel Walker has a different style to him. He's fired to get out of that office. And then what we no, no, no, what we need to do is tell him, don't let that do hit you in the bright side as you lead the people office. And let's start by talking about what the polls are showing, Joe.

Let's look at the two candidates could not be more different. And some of the latest polls that we've seen this past week show that there's, uh, the margin is getting smaller. Yeah, there hasn't really been a lot of research. It's interesting, you know, you ask about polls, we don't have a lot to pick from here. There was one from a a r P over a week ago really that found that found Raphael Warnock actually ahead by four or five points, but that was within the margin. And when you look

deeper inside. He's Warnock is leading by by double digits among young voters eighteen to forty nine. He's got a twenty four percentage point lead over herschel Walker. That is significant. The more old the older voters are, the more they tend to lean towards herschel Walker. Uh. Independence are also breaking by just about inside the margin again four or five points breaking uh for Senator Warnock. Once again, we got another one uh, just a couple of days ago.

You know, these aren't often the normal polling agencies we hear from. This is Frederick Poles compete digital and and political. They have both candidates deadlocked, an actual toss up at fifty percent each. Now, let's look at some of these numbers, um, and let's try to break it down a little bit. And let me give you a bit of a story here,

just some anecdotal. George's Republican Lieutenant Governor Jeff Duncan told see an end that he cast his ballot, he voted early, he didn't vote for Walker, he didn't vote for war not on so hard to believe, called this the most disappointing ballot. He oh, you don't buy it, so you got out of bed that morning, waited in line for an hour without knowing who you're voting for. As the lieutenant governor, Brian Kemp with his boss, is all in

for herschel Walker. He's dedicated his entire ground game. He's stumping for him, sharing a stage with him, and raising money for him. Having not done that in the mid term election cycle, he decided to do this for the runoff, just to thumb his nose a bit at Donald Trump is what we is, how we see that, But his lieutenant governor has no idea who to vote for what Maybe maybe you should wait a minute to go vote.

Well he My point, my question about this, pardon me, is the divisiveness that you see now in the division, even within the GOP itself. Yeah. Absolutely, Well, I'm not sure how much division there is at this point. Following the mid terms, Republicans have decided they need this. There's a reason. It's not just because it's fun to have one extra seat. If Rafael Warnock keeps his job, they'll

be able to have a majority on committees. If Republicans get this seat herschel Walker wins, they keep Democrats from doing that. So there is actually a matter of business at hand here. It's not just having that extra layer of protection, it'll dictate the way these committees are made up. Republicans are all in on that, whether it's Lindsay Graham, Tom Cotton, Rick Scott, they've all gone down there. Donald Trump, of course picked this candidate. Now Brian Kemp is working

overtime to get him elected. Things have jelled pretty well for herschel Walker inside the Republican Party. One of the things I like to watch, especially when it comes to a runoff, is how the early voting is turning out. Is that going to make a difference here, the turnout for early voting. That's the big question we're walking into next week with because if they have set a record for early voting here, we understand based on history that that tends to benefit the Democrat. So Rafael Warnock is

feeling pretty good about those numbers. A hundred and eighty on thousand people voted early last weekend uh and and as and we've seen these numbers tick up over the course of the week since. Let's talk about the money. There's been a lot of money poured into this race. Record breaking numbers. Does that make a difference. The more person the more you spend, the more likely you are to win. Doesn't seem to be right. You've got these guys within a percentage point despite all the scandals, the

abortion stories, the endless talk of vampires and werewolves. It's been a crazy campaign and they are essentially tied. So it's hard to make the case for money. Although I will say this, if you back up a little bit to the mid term cycle before this turn into a runoff, Mitch McConnell was the one spending money on Herschel Walker, not Donald Trump, and if he hadn't done that, it might not have gone as well as it did for Herschel to begin with. He might not have actually gotten

into the runoff. So so money does have its time. The question is how much Brian Kemp's money might make a difference. Now, okay, so what are you watching for as you get ready to pack your bags and head down to Georgia. Well, you know, look, we're watching turnout. To your point, a lot of the things that we've discussed as well, and we've Barack Obama showing up has

its own factor that's difficult to quantify. He's certainly helped Raphael Warnock during the general seems to me he's a celebrity who wants to be a politician, and we've seen how that goes. And then we're gonna see who shows up day of. You know, if Republicans can get out in force on Tuesday, they might be able to blunt the impact of a record relea vote. And we are talking with Bloomberg Washington correspondent Joe Matthew about the runoff

election in Georgia. Is it lost on anyone that this is sort of a rerun of what happened a couple of years ago. Well, it's not on Raphael Warnock. That's part of his stump speech. Now he has run for the same job something like five times in the last two years. I mean, if you think about it, the general, uh, the runoff, the general, the runoff. There he is again and he's only been in office for two years. Yeah, mean, my goodness, you need to really want that job to

keep going through this. But you could also argue that it gives him a bit of an advantage. It's not his first ball game, not by a lunch shot. Uh. You mentioned, um, the former president Barack Obama down their campaigning for Warnock. Does that help a lot. It made a huge difference in the general election for Barack Obama to go down there to help activate to mobilize African

American voters. And that's why he came back that that poll that I mentioned from a ARP finds Black voters fifty and up differ in preference from their age group, right until as I mentioned that the older voters tend to favor herschel Walker. In this case, Rafael Warnock has an eighty three point lead over herschel Walker among Black voters fifty and up, the margin of Ara's five points. So I think we can call that. So I want to make sure I understand older voters tend to lean

toward herschel Walker, not Warnock. Correct. With the exceptions specifically, I'm sure they are. I mean that loyalty in Georgia for football, for there's no doubt about, even though living in Texas for most of this campaign, that's been an issue, most recently as he got a homestead exception for moving

to Georgia. It's kind of an interesting thing here if you go back and look at a lot of his interviews on Fox, he was sitting at his home in Texas for them, I think it's important to point out that this runoff is so significant and there's so much writing on it that we are actually Bloomberg is sending you down to Georgia for the election results on Tuesday.

What are you going to be watching for? Well, again, we're looking at turnout and to see how Republicans can mobilize voters to come out the day of, whether they can blunt the impact of a potential Democratic advantage in record early voting. What are you going to be watching for in the coming week, other issues that may be percolating on Capitol Hill or at the White House? Is there anything that's got your attention? Look, we could take a couple of days to decide this race. First of all,

we may not know this on Tuesday night. I'd like to think by when day will have a sense of it. But it's gonna take a minute. This is really close. Remember how long it took for them to call Pennsylvania, to call Arizona some of these other states. Georgia's like that. That's why it went to a runoff. So does it take the week? I don't know. We're prepared to cover

that while the lame duck session continues here in Washington. Republicans, you know, they have us in the back of their mind here, uh and what a what a fifty first seat might mean for them. But the lame duck session needs to happen. First, we need to take care of government funding, which runs out on December sixte uh. And then there's a lot of question about about funding going forward, whether they're going to kick the can down the road

for the entire year or into February. If we get a short term cr it increases the risk of a possible government shutdown. That's one thing we're watching. And Joe, there's been a you know, power shake up in the House. That's a great question. No, technically, no, it looks like it's Kevin McCarthy. He's certainly been running for the job, is cutting a lot of deals right now. But this is going to go to the floor, right he's he's

he received the support of his caucus. But when it goes to the full floor, it's just like when we were there on midterm election night. You need to eight team to win, and Democrats are not likely to help him out. So there's a real question about whether he comes out of this with the gavel or if Ace Steve's callie. For instance, when this goes to round two round three, maybe More comes from behind very quietly and

becomes the next speaker. That's not the most likely scenario, but it's when we're hearing a lot more about now. Is there a possibility you'd have a Democratic Speaker of the House with a Republican majority? Not likely, No, but I mean, look, you've got a Republican majority, so they would they wouldn't allow that likely to happen, but it may not be who they think it's going to be. And you don't, by the way, you have to be a city member of Congress, which is why they had

floated the idea at one point. And this was likely just a rumor of having a speaker Donald J. Trump come in there just to have some fun. If you look at the language that the House rules make it clear that anybody could actually be speaker if if they managed to get to eighteen. Bloomberg Washington correspondent Joe Matthew, host of Bloomberg Sound On, which you can hear weekday

afternoons at five Wall Street Time. Thanks so much for taking the time with us, and you can get more political news coverage by checking out Balance of Power with David West. And that's weekdays at noon, Wall Street Time. All right here on Bloomberg Radio, I'm Amy Morris and this is Bloomberg John Amy Morris reporting from our Bloomberg newsroom in Washington. Amy, thanks a lot, and that does

it for this edition of Bloomberg Daybreak Weekend. Join us again Monday morning at five again Wall Street Time, for the latest on markets overseas and the news you need to start your day. I'm John Zucker. This is Bloomberg