Bloomberg Audio Studios, podcasts, radio news on a Friday after an historic week. It is single best idea. Too many voices to pick from today. Thank you particularly to Dartmouth College. They have Douglas Erwin with us the other day and David Blancheflow this morning. Was an honor, but so many others have Claudias sam with us in Neil Dudda on the Jobs Day, all the work the team has done, particularly to Bloomberg people at Bloomberg News in Bloomberg Intelligence
weighing in on this historic moment. Let us start with Neil Dudda after the jobs report, Neil Duddy here in the state of the consumer in what was fascinating looking at the upper decile, upper quintile of American prosperity when in doubt, save.
What you're gonna SAE. Basically the high end consumer, which has been the core source of support for consumer spending over the last year, they are going to jack up their savings rate as a result of this. I mean you're in a situation now where stock prices are going down. Right.
The elevated level of stock prices is one reason why net worth was rising relative to income last year, which is why consumer spending was so strong, because people drew down their savings As a result, you have the opposite situation now, So what do you think is going to happen with the savings rate? It's going to go up. As a baseline, consumer spending wasn't going to be really much stronger than one and a half percent right now, because that's where real income growth has kind of been
tracking net of transfers. So we've already seen quite sluggish income. So even a stable savings rate gets you that if the savings rates going up, you're going to have something weaker than that. So you can see already how it's very challenging to get to a anything better than Really the best I can come up with is like below potential growth environment.
Still Neil Dudda there, he was absolutely brilliant on the labor dynamic. He made very clear that he's more interested in the revisions back one month, back two months than the actual data point today. I just noticed it's a blur here in our world headquarters where you see headlines
out of all different sources of media. To see Canada lose twenty two thousand jobs today is really something we didn't talk about that live on the program, we had the pleasure of speaking with Kate Moore of City Group, She's in charge of City Group Wealth Management, and coming up with a kogent tone on the present crisis the view forward. Kate Moore of City Well, here's why.
I don't want to hear them say, Paul. I don't want them to say we're pulling guidance all together because we have no visibility. I want them to at least present scenario analysis and in some ways that they may be able to buffer the challenges overcoming months and quarters. This scenario where companies coal guidance would be so sentiment negative, I think we see actually a big leg down in
that scenario. And I'm going to be watching very very closely what companies talk about not just for the next three months, but for the balance of the year.
You know, whatever they talk about in terms of their first three months of performance, yes, that's going to be important, but it's really going to be the earnings revisions that come out of the supporting season that are going to be critical for risk.
Kate marsh City there and yesterday at the Game Forum of Quinnipiac College, sixteen hundred kids Matt Lazetti said exactly the same thing from Deutsche Bank that you just heard from Kate Moore, This idea that within an economy things can drift away. We'll have to see how that goes. Thank you so much for your interest this week on YouTube, Subscribe to Bloomberg Podcasts and out on YouTube podcasts. This is a single best idea seven