We turn our attention to the markets this week, USCPI endeavors, reinforcing concerns about inflation. The financial stories that sheep are worth a really different reaction to Mark. It's more indications of just how hot the US economy really.
Is rude the eyes of the most influential voicing.
Katherine Keating, CEO of b and Y Moan, Ryan Winningham, a Bank of America, Sam Zell Charman and founder of Equity Group Investment Bloomberg.
Wall Street with David Weston from Bloomberg Radio.
Testing the economy, more bank tremors, more FED rate hikes, and the unimaginable prospect of a US default. This is Bloomberg Wall Street Week. I'm David Weston. This week Stephen Ross of Related Companies on Wall Street moving to Miami.
Miami is probably the most dynamic city in the country today, and.
Melissa Karney of the University of Maryland on thousands of college students gone missing.
The decline in the Rollman is not an encouraging trend.
Global Wall Street had plenty to focus on this week. As we began the week breathing a sigh of relief over resolution of last week's banking crisis over First Republic. We are all very pleased to get the major source of uncertainty that was remaining from the recent bank term all addressed, and that that is a good thing. But then Treasury Sector A. Yellen told us that we may have less time than we thought to deal with that debt ceiling problem. Well, it would be absolutely disastrous for
me to be completely blunted. And by Tuesday we were back to worrying about the banks again, as each day seemed to bring news of another regional bank seeking a new path.
It's tumbling right now.
By forty two, after seeing it's winging strategic options.
A TD bank has agreed with First Horizon to terminate the previously announced merger, which had been agreed upon let's be honest before all this turmoil in the banks.
But despite the problems with the banks and concerns over the dead ceiling, the Fed on Wednesday went ahead with the twenty five basis point rate hike. It had to telegraphs, which here Powell opening the door to a pause, but saying that inflation is still with us for now. Inflation remains well above our longer run goal of two percent. Then on Thursday, the European Central Bank followed suit, but said it does not plan to pause.
In light of the ongoing high inflation pressures. The Governing Council today decided to raise the three key ECB interest rates by twenty five basis points.
And if all that weren't enough. On Friday, the US jobs numbers came in much stronger than expected, adding another two hundred and fifty three thousand jobs last month, though they took away some from the month before, and as important, the unemployment rate went back down to their record three point four percent level and wages increased at a brisk
pace of five ten percent month over months. Equity markets on Friday reversed all or most of all of their losses from the rest of the week, with the S and P five hundred ending the week off a mere eight tenths of a percent, while the NASDAG gained less than one tenth of a percent, and the yield in the ten year went all the way up to three point six percent and then all the way down to under three point three percent to end the week just
about where it started at three point four to three percent. To take us through the week, in the markets and the economy, welcome back now, Ellen Lee, she's portfolio manager at Causeway Capital, and Savita Supermanian she's Bank of America ahead of US Equity and Quantitative Strategy. So welcome to
both you. Great to have you here. Let me start with you, Ellen, if I could, Given what we saw from the FED, but then from the jobs numbers, what do we make of the economy right now and where's headed?
Well?
Clearly inflation is still high and FED still has concerns around that, and the latest job numbers still indicate that there is more slowing down to do. However, what's happening with the regional banking devices. I think that will help in this effort, but there's still more world to be done, as inflation is not quite there, and also the slowdown is not at a pace that we would want it to be in the current environment.
So what about you, Savina. We heard about a possible pause maybe on Wednesday. Is that still viable after the jobs nurbs who saw on Friday?
I mean, look, I think we're in a data dependent environment and the data so far is suggesting we're probably not going to see that rate cut that everybody is hoping for by the end of the you know, in the next couple of quarters. I mean, our view is that inflation might remain stickier and higher for the rest
of the year. I mean, if you look at jobs, a big part of the tight labor market is just a great resignation during COVID and those folks haven't come back yet, so you know, I think it remains tight in certain parts of the economy.
So, Savita, let's talk about the equity markets. You are one of our twenty four l's. I'm glad to say thank you for being here, and you're so live in the middle of the pack. Four hundred dollars on the EPs and and four thousand on the SB bus. Yes, are you inclined to change that at all? Given what we saw this.
Week, I'm right in the middle of the consensus.
Elf.
I guess well, I think we're a little lower than consensus on earnings, and I think, if anything, I would be inclined to move that higher after what we've heard over the last few weeks. I mean, what really impresses me about earning season is that guidance has been very positive despite every reason that companies have to guide down on this year's earnings or next year's earnings, they're actually guiding above what consensus is expecting, so I was surprised
by that optimism. We're also seeing beats across the board, not just in you know, technology stocks, but also in financials and healthcare. So it's been a very healthy earning season relative to what what folks were expecting coming into it. I think on the market itself, what I wore about is that it's still very tech top heavy, and that's the part of the market that I'm actually more concerned about from a rate risk perspective.
Allan what about tech? Tech had been a leader for a long time, then it sort of gave up leadership. Who's going to lead down?
I mean, we believe in the next cycle, with you know, themes like energy transition and more automation and energy infrastructure built and on shoring, we think industrials will be more at the head of market leadership, as we are hearing not only in the US but also in Europe of continuous capex plans because of the change that's needed to
get us to the next era. And again with interest rates where they are, you know, if we believe the zero rate con interest rates are not bad, the biggest beneficiarias of that actually reside in the tech sector, and we don't think that we'll come back, and therefore we believe in which was like industrials and energy will lead the next valley.
So what Savita. As you look at equities, are there some idiotocratic areas, particularly when it comes to credit, they're getting hit worse than others. I mean, everybody's interest rates are going up, but it may hit some companies differently from others.
Yeah.
Absolutely, So, you know, one of the big surprises to me is when you look at some of these so called defensive areas of the market, like healthcare or telecom, the credit risk is actually higher than you would expect, whereas energy, materials, commodities, which are typically you know, kind of at the epicenter of most credit downturns, are in a much better position. They've been deprived of capital for many,
many years. They've become very disciplined about cash return and balance sheets and capital allocation, Whereas the companies that have gotten more easy money might not be in as great a position to handle this market increase in interest rates. So, you know, healthcare was I think it's the fourth highest industry in terms of floating rate risk sitting on balance sheets, which means they're going to face that move and that a lot faster than other sectoris did not.
Know that quickly here at the n L. And you like Europe when it comes to securities. Why is that?
Well, first of all, europe valuation is much more attractive versus us. Secondly in terms of a higher rate, higher
interest rate environment, that should be advantageous. And thirdly, think about the energy crisis that Europe is going through right now, and they have to shift their energy infrastructure, which is a very strategic element of an economy, so that spending is going to continue, and not only that, they are leading the efforts on decarbonization, and again that will act as a fiscal stimulus for the growth of the economy. And again Europe has had very little spending and infrastructure
the last thirty years. So we think this again will work in the favor of companies that are in energy and industrials to fuel economic growth in the next decade.
It's fascinating and I did not know that actually a healthcare It's a fascinating voice. Savida, Thank you for bringing it to us. Thanks so much to Sevida Supermanian and Bank of America, and also Ellen Lee of Causeway Capital. It's time now for our weekly look at Wall Street Week past. Back in April of nineteen ninety one, the number one movie in the US was out for Justice, starring Steven Sagau. The number one song was You're in
Love by Wilson Phillips. And as now, people were worried about the banks, with Lewis Rockgeiser to give us taking us through the problem as he saw it back then. Coming up, where have all the college students gone? We talked with Professor Melissa Carney of the University of Maryland about the drop off and high school students headed to college and what they are missing out.
That wage premium that college graduates are getting an economy is still really high.
That's next on Wall Street Glee on Bloomberg.
This is Bloomberg Well Street Week with David Weston from Bloomberg Radio College.
It's been the dream of American students and their parents for decades, the proven pathway to better jobs, higher pay, and social mobility, and not incidentally, a crucial source for the highly skilled workers we need for the next generation.
And we're talking about what do we have to do in order to get our economy going, to make sure that we are a twenty first century education system that's preparing our children how not just to be employees, but how to be employers.
But the risks and rewards of getting that college degree are coming under fresh scrutiny as the cost of getting the degree have been rising much faster than inflation for both public and private colleges and universities, and the burden of barring to pay those costs has been so crippling that the Biden administration is trying to forgive a fair amount of it.
Entire generation is now sattled with unsustained death the exchange for an attempt at least to a college degree.
Even a Speaker McCarthy's new budget proposal would cut back on pelgrants, which provide financial aid to the most needy. The Department of Education shared how the Speakers bill would remove up to sixty thousand teachers from classrooms.
Eliminate student debt relief for more.
Than forty million Americans, and make college more expensive by reducing pelgrants for millions.
And if all that weren't enough, the COVID pandemic hit college students particularly hard, as far fewer high school students enroll in college today than before the pandemic, leaving us with a critical question whether college is still worth it and to take us through whether in fact a college degree is still worth it, we welcome now back to Wall Street Week Melissa Karney. She is professor of economics at Universe and Maryland as well as director of the
Aspen Economic Strategy Group. So Melissa, great to have you back with us. First of all, start with the basic question about enrollment. Is enrollment down, If so, how much? And is it because of the pandemic or did it start before the pandemic?
Yeah, recent numbers on enrollment rates suggest that enrollment is down. This is the sixth year that enrollment is down, so it was starting to decline before the pandemic took hold. But the pandemic knocked a lot of high schoolers and young adults off their college going plans. So we hear a lot, David about the learning loss in elementary schools
and high schools. I think another thing we really have to be focused on is how many graduating seniors would have otherwise enrolled in college who haven't and they haven't come back yet. So this is concerning and how much it's the.
Cost of the whole thing, Because you saw that Wall Street Journal poll that said something like fifty six percent of Americans don't believe a college degree is worth the price.
Yeah, that I found those polling numbers really quite troubling. So, as you mentioned, a majority, a small majority, but a majority. None of the last of American adults now doubt that a college degree is worth it, and that is that's just emphatically not true. So in general, people who graduate with a four year college degree will make back the amount of money that, if they made good decisions, that
they would have paid to get that degree. So a college degree is still an excellent investment in one's economic future. We know that college degree holders, four year college degree holders in particular, have an easier time finding work. They command much higher earnings when they do work, even in
today's tight labor market. But as you mentioned, the price is really it's hard to figure out, and so a lot of people actually think getting a college degree would be more expensive than it would be for them.
In particular, Melissa, you mentioned the relative lack of transparency and exactly knowing what the cost is. It's hard to do a cost benefit analysis. So if you want what the cost side is, whatever the benefit side is, why is it so opaque.
They have their sticker price, their tuition prices, they're all in price. What they charge people who can pay full price. That's also what they charge the government for people who are paying on behalf of others. But that's not what
an individual student pays. So about three quarters of students at for Your institutions are getting some form of aid, and so it's just really hard for students to figure out until they've gone through the whole process of applying for financial aid, filling out the FACA how much any individual school will take. There are a lot of efforts underway to make that pricing more transparent so students can
figure out earlier in the process. But I think the real message that needs to get out is that students should not be discouraged from applying to flagship schools, selective for Your schools because they think they can't afford it. They should go through the process. Students who go to selective schools, who go to four year degrees seeking, you know, degree granting schools, they tend to have better outcomes. Those schools often have more resources and are better able to
serve their students. So students should not be discouraged from applying, and they should take advantage of information that's out there net cross calculators, information on student on school websites to figure out what, on average is a typical student paying to attend this school. And by the way, people should make smart choices, like public schools charge a lot less
than private schools. So getting back to why a lot of people don't think a school is worth it or pursuing a college degree is worth it, you know, you could get a lot of really good deals if you're looking at public four year institutions as opposed to private, especially if you're looking at in state tuition, those net prices are much lower for typical students, and people should take that into account when they decide where to go.
So typically in economics, as I understand it, and you understand it much better than I do, and supply and demand, if the supply stars come down, it might put some pressure on the system if in fact we're getting the less enrollment. Do you see any indication some of these institutions of higher learning are saying, you know, we've got
to get our act together. We got to be for example, more transparent, more direct, and by the way, even give a sense over the four years what's going to happen in the years, because one issue is how much you're going to raise it once I get.
In unambiguously, the decline in the enrollment is not an encouraging trend. Whatever pressures it might put on some schools that are losing students, I think the decline in enrollment is really troubling because, as we said, a college degree really does grant an earnings premium to students who attend
and complete a four year degree. So the earnings premium going to college workers was rising tremendously in the nineteen eighties and nineteen nineties when demand for college level skills really took off, and the supply of college educated workers didn't keep up. Since two thousand, that we premium has stalled,
but importantly it is still tremendously high. So in a typical year, you know, let's just take twenty nineteen before the pandemic, you know, someone with a four year college degree, on average would make about eighty eight percent more a year than a full time, full year worker with just a high school degree.
When you talk about the earnings premium, it surely must depend in part upon what you study and what the line of work you go into, right, I mean, I can just imagine, for example, what the demands are right now for technology, and some of the expertise and technology are very different from what they were thirty years ago.
Absolutely, and this is a really important point. So in general, even though I'm really emphasizing that a college degree is a good investment in one's future, the fact of the matter is not all institutions and not all majors deliver large earnings premiums. And that again is something that students have to take into account and have to make good decisions about where they're studying and what they're studying. And that information too is now much more readily available than
it used to be in the past. Students can look up what is the typical earning path for someone who pursues this major, who attends this institution, and again make smart choices.
So well, as you look at the decline in enrollment, what about the demographics of it? Is it affecting some people more than others?
Yeah, the decline enrollment has been much larger among men. Than women, which is, you know, women are doing better overall when it comes to young women getting college degrees, and so this is worrisome. And the pandemic related decline was especially pronounced among non white men. Again, this is another you know, this is another reason why these trends
are particularly worrisome. We think a college degree is a great engine of upward mobility, and we worry if kids from lower income homes, from non white families in particular, are the ones who disproportionately had their college going plans knocked off track.
Okay, Melissa, thank you so much for being back with us on Wall Streeve. That's Melissa Carney. She's professor of economics at the University of Maryland. Coming up, The FED told us this week it might just pause, but with the jobs numbers, let it pause, We asked Stephanie Flanders, she's senior executive editor for Economics and Government on Bloomberg.
That does tell you something about the underlying strength of this economy, and certainly in the labor market, which has continued to confound the Fed.
This is Wall Street Week on Bloomberg.
This is Bloomberg Well Street Week with David Weston from Bloomberg Radio.
This is Wall Streek. I'm David Weston. It was a week full of economic news as well as actions by central banks, and to take us through it all, we welcome now Stephanie Flanders. She is Bloomberg Senior Executive editor for Economics and Government and also the host of Stephanomic. So Stephanie, thank you so much for being here. Everything's connected to everything else as far as I can tell.
But let's start with the Federal Reserve decision on Wednesday, raising twenty five basis points, not exactly saying what comes next, but at least opening the door to pausing. Is it justified the idea of a possible pause given where we are with the economy in the United States, Well, of course.
We've ended the week with a really strong employment report. You know, we've had ten interest rate increases in a row, but now thirteen payrolls numbers that exceeded expectations. And you know, David, economists have we expect them to be wrong where they're not usually wrong in the same direction every month for
over a year. So that does tell you something about the underlying strength of this economy and certainly of the labor market, which has continued to confound the FED and made it still quite difficult in trying to balance that tightening, that historic degree of tightening in the last year, against the sort of justified fears of creeping credit crunch problems for regional banks, and you know, still inflation above target.
Well, let's talk about inflation just for a moment. The connection between the strong labor market and by the way, including those jobs numbers, were some pretty robust wage gains month over month. So as a practical matter, have we really got our arms around inflation? Do we have any reason to believe that the monetary politis thud a reserve thus far is having a material effect, It's having some effects, a material effect on inflation.
Well, I think it is one of those things that has the policy makers in the FED wondering, you know, has the transmission mechanism that takes these rate increases out of the broader economy? Has that broken down? Has it become slower than in the past, or is there something that's something specific in the sort of post covid Us labor market that's causing a delay but not an end
to that transmission of tighter policies. I think what has changed is you have in these problems in the regional banking system, which I know we'll probably talk about, you know, the failure of yet another bank that is telling you that there's something that is very tangible that is going to quite shortly has to have an impact on hiring,
and that's the squeeze in small business lending. You know, you mentioned my podcast Stephonomics, and we heard in this week's episode actually about somebody who wants to invest in a pickleball slash restaurant having trouble getting a loan, a small business having trouble getting alone. Now, you know, pickleball
is a massive phenomenon at the moment. If you can't get money for that, I think we know that lending conditions are tightening, and that is if small businesses are the ones most affected by that kind of lending squeezing out. It's tightening up, drying up, and it's small businesses that
are the source of most job growth. So it may not happen this month, it may not happen next month, but we do now know that this labor market is going to cool and we have to assume that's going to bring down inflation, might also cause a recession.
It's good to the of the original banks and the pressure we've seen. We had a Silicon Valley Bank, and then you had Signature Bank, and every time we would come up, we say, oh, it's really idiosyncratic. It was some special failure of the management there. And then we had First Republicle that's a different sort of secrecy. This week we saw pack West, we saw a Western Alliance. It seems like every time we look around there's another
idiosyncrasy popping up. At what point does it become systemic rather than in astocratic?
Yeah, And I think we're starting to say idiosyncratic is if you're a bank that's not one of the big four banks in the US at the moment, that's starting to feel like the divide because almost every other bank at one point or another has been under pressure, and almost every other bank in the US may not be in the kind of difficulties that we saw, the kind of extreme business model, extreme disregard of risk that we saw in some of those other cases, but is certainly
facing a kind of fundamental issue. Inverted yeeal curve makes it very severely Inverted yeal curve in the key key part of the market between you know, three months and ten, you know, that making it hard to make money, and this long riding of expectation that you can make profits by not passing on short term policy rates at the time the time when short term policy rates arising, well, that's harder.
And harder in a world way.
We know we can have these digital instantaneous massive falls falls in deposits.
And bank runts.
You know, I think there are questions about quite a lot of banks in the US right now, not that they're going to survive, but certainly that it's going to be quite hard for them to make money in the near future.
Except for the very big ones, as you suggest, they seem to be doing very well, Thank you, ma'am. Does the FED reserve face a form of a zero sum game here where either it goes after inflation with increasing rates or it helps the banks by not increasing rates or even cutting rates, because part of the problem here obviously is an interest rate risk issue that was created maybe intentionally, maybe it's a good thing by the rapid increase in the rates.
Well that is, you know, that's how the policy is supposed to work in many ways, at least it's not aimed at reducing the bank's ability to make money. You're challenging its business model, but it certainly aimed at tightening
credit conditions, reducing lending, and reducing economic activity. As a result of that, I think we've got to a point though, where the Fed and indeed other central banks are so keen to persuade us that they're not going soft on inflation as a result in response to these concerns around the banks, that there's almost a risk of going the other way. You could see that with Jaypowe this week.
There was absolute determination of that separation principle that we are going to continue in our battle against inflation and where we have other tools, we're thinking in a separate way about the banks, but they obviously can't be completely separated, so.
Everything you've just discussed would be plenty. But on top of that, we had Janet Yell on the Treasury Secretory this week saying, by the way, that's so called X state when the government will really run out of money and not be able to pay its debt, maybe as early as June one. We have meetings coming up next week of the President with leadership and Congress give us a sense of how the debt sealing crisis may play across the issues we've been discussing well.
When we talk about the US economy dodging recession. So we're basically saying that it's going to drug off the effect of the credit crunch and the smaller lenders that I was talking about earlier, but also that we won't have some default moment or a big increase in financial tension around fears of the default in the next month
or two. And we think, you know, if that actually came to a head, that could have a very significant effect on the economy because you know, if you think about it, it means overnight the federal government has to balance its book, balance its books, and that means very significant reductions in spending there and then we don't think it will come to that, but the kind of tensions around that, I think, you know, do give Janet Yellen and the
broader banking community. I was in at the Milk And Institute earlier this week in LA you know, quite a lot of concern under the surface about how this debt ceiling issue is going to play out, and some phone calls being made to Congress, but no real sense that people are getting a hand on it and.
Finally, Stephan, let's not leave Europe out of it. We heard also from the European Central Bank this week, who hiked as well, twenty five basis points like the FED, but unlike the FED said, you know what, we're going to keep going, Madam mcguard was. I thought very clear about that. What's the difference between the two economies? And can the ECB take such a different route from the Fed if the Fed effect does pause, well.
Of course the European Central Bank started later. It's in a very different kind of situation. I think we tend to maybe certainly if you talk to people in Frankfort, they say we overplay the amounts of which they're watching every move of the FED and thinking about their move
and relation to that. But I mean, I think it is the case that that interest rate rise from the FED and the talk of possible pause from the Fed, you know, it did give some cover to Christine Legard and her colleagues at the European Central Bank to reduce the amount of increase that they had. So we just saw that quarter point. They're slowing the path of interest
rate rises. She did talk about another two. We think it's more likely to be another one that you will see a pause in the summer because they have other that they're allowing their balance sheet to run off after June, so that's a continued form of tightening that they can
rely on. But you're right that ultimately, if the market's right, for example, that the Fed's going to start cutting rates the end of this year, that could prove very difficult for the European Central Bank because there's certainly a long way from cutting.
Is there a prospect in Europe of having similar difficulties with the banks to what we've seen in the United States, And given the fact that the UCP has been raising.
Rates, well, it's interesting, I mean, we haven't got quite the same dynamic playing out. You certainly you don't have the same inverted yield curve and that kind of pressure on profitability of the banks. But on the other hand, you have the fact that bank the broader economy is much more dependent on bank lending. So a smaller problem, a smaller squeeze on the European banking system could have actually as large or even a larger effect on the economy.
So you know, it is something that the European Central Bank has to look at we are seeing credit conduct conditions sharpened Titan dramatically in the last few months. I think that'll be another factor that will cause the European Central Bank to pause in the summer.
Stephanie, thank you so much for being a Wall shery. That's Stephanie Flanders. She is Senior executive editor for Economics and Government at Bloomberg.
Let's see why frightened Americans looking at the financial scandals of recent years have begun to ask is it safer under the matpress. In the past four years alone, more than seven hundred and fifty US banks with deposits of seventy billion dollars have closed. So far this year, there have been twenty two more bank failures, representing assets of another twenty five billion. The Federal Deposit Insurance Corporation's Fund, which guarantees that depositors won't be left in the lurch,
has steadily dwindled in recent years. In nineteen eighty five, the fund had a dollar nineteen to cover every one hundred dollars of deposits. Today it has only seventeen cents for one hundred dollars.
This is Wall Street Week on Bloomberg. This is Wall Street Week. I'm David Weston. We've all been talking about it, the leaving of major financial firms New York City and for them that are from Chicago to go south to Miami. Some people who are been calling it Wall Street South these days. Well, one person who is ahead of the times on this really down there developing particularly commercial real estate, is Stephen Ross. He is the founder and chairman of
Related Companies. So, Stephen, thank you so much for joining us. You've got a big new advance in your strategy of about commercial real estate down there. Talk to us about one Brickle City Center.
Well, we're very excited, you know, to be here in Miami. Miami is probably the most dynamic city in the country today. You know, when you look at statistics of where growth is occurring, Miami leads the way, or South Florida leads
the way. And so being able to develop, well, we believe to be the biggest building in Miami at a location that's Maine and Maine with all the technology and all the things that Related puts in their buildings, and I think, you know, people were looking to be a tenant in a Related building today is evidenced by our success in New York and Hudson Yards, which really continues to grow as well.
Now, obviously you're a very big in West Palm Beach. This is Miami we're talking about. Now, how does it fit into your long term strategy? What comes next?
Well, I mean, you know right now, I mean, we're continuing to build in New York, and we're very excited about New York. But Florida is really the growth you know, part of the country today and where there's need for
a class A office space it really needs. And it's more than just delivering office space, it's really you know, building communities, building cities and making sure that those cities have the hospitals, bringing schools and all the amenities that new tenants want in relocating to Florida.
Stephen, thank you so much, really great to have you back. That is Stephen Rossy, of course, is the founder and chairman of related Companies. Finally, one more thought heavy lies the head that wears the crown, and as of this week, King Charles the third of Great Britain knows just how heavy, like five pounds heavy, but with nearly twenty nine hundred diamonds embedded in it. And that's after they cut it back for the coronation of George the Fifth and nineteen eleven.
Before that, the crown was so heavy that no one could wear it, so they just carried it around in the procession. The British monarchy goes back to at least ten sixty six, and its history and tradition are a good part of what keeps it going after nearly one thousand years. But there are also some very modern aspects of this coronation. Take for example, the effects of inflation. It is hitting us all.
Inflation is still too high.
It's sticky, it's not coming down fast enough.
And that apparently includes the monarchy, which is cutting back in the number of days and the number of people, though it is still estimated to cause upwards of one hundred million pounds.
I mean a cost of living crisis. The king has asked for the service to beat good value, but with a reported one hundred million pound price tag, it's double the cost of his mother's.
King Charles rides in not one but two royal coaches for the coronation, the oldest working coach in the world, for heading back to Buckingham Palace from the cathedral after his crowned. That is the gold State Coach, dating back
to seventeen sixty. It was first using a coronation in the eighteen thirties, but to get to the cathedral, it's the much newer, air condition and much more comfortable Diamond Jubilee State Coach that Queen Elizabeth had made after she found the ride in the old one unbearable back at her coronation in nineteen fifty three.
This coach, beside me, will be a key part of the procession going from Buckingham Palace to Westminster Abbey.
But for all the ancient customs and traditions surrounding the British monarchy, the US has some more recent parallels, and Biden, for example, has his own sort of state coach. It's called the Beasts, made by Cadillac, dating back only to
twenty eighteen. And we had our own sort of modern coronation in New York just this week, not of the King of England, but of King Jamie, the first of all of US banking, as JP Morgan stepped in to rescue what was left the first Republic Bank, making the biggest bank in the US even bigger.
We support and want community banks and regional banks.
You need big banks too. And finally, King Charles shares with another president some of the difficulties in getting whom he wants to perform at his celebration, with reports that the new King was turned down by Elton John as was President Trump back in twenty sixteen morulery he would never ordinarry him, But not so. The Italian tenor as Andrew Buchelli, declined to perform for the forty fifth president of the United States, but answered the call from the new
King this week because of reportedly his special relationship. But then again, King Charles does not have to face an election in four years to keep his new job. That does it for this edition of Bloomberg Wall Street Week. If you missed any part of today's program, you can listen on demand with our Wall Street Week podcast. Find that on Apple, Spotify, or anywhere else you get your podcasts. I'm David Weston. Stay with us. Today's top stories and global business headlines are coming up right now.