Transcripts For BLOOMBERG Bloomberg 20240704

Yields rising on both sides of the atlantic and its duration. We are seeing big moves in the 30 year. It is certainly having an effect in terms of sentiment. The bond market is driving the narrative. It continues today. Moments ago i had infineon on in here and i switched it out for credit agricole. They are getting close to a bid. Interesting to see whether that deal goes through. The pound, lets talk about that. A little bit softer. There is so much to discuss around the bank of england. We will do that in just a moment. Talk about rates being restrictive. How much further could we see the bank of england going . There are lots of questions that need to be asked and answered. Kailey we will get to those in just a second but i want to touch on the u. S. Markets because we are coming off of the worst day for the s p 500 since april and we are seeing losses continued though they are smaller. The s p down. 4 . The nasdaq. 2 . Apple and amazon reporting after the bell. A lot of the movement is in the bond market. It is in the longer end of the curve. The 30 year flying as is the 10 year. That is the highest level the yield has been since november. The two year is doing nothing. What we end up with today is a steeper yield curve. Guy treasury boosting the side is of the bid options boosting the size of the bid options the bid auctions. The bank of england raised Interest Rates to a new high. There was some speculation we may go 50 today. We did not see that. Here is what governor Andrew Bailey had to say during the news conference. We will go on judging what is most appropriate based on the evidence we receive. We will monitor closely indications of persistent inflationary pressures and resilience in the economy as a whole, including the tightness of labor Market Conditions and the behavior of wage growth and Service Price inflation. If there were to be evidence of pressures, then further tightening of Monetary Policy would be required. Guy Andrew Bailey speaking during a press conference. What breaks if yields keep going higher . We are seeing that on both sides of the atlantic. I am not sure how much we can relate that what is happening with the bank. We see a big decision on qt. Kristine aquino from simon white joining us on set. And simon white joining us on set. I will start with simon. What you make of today . The governor talked about policy being restrictive. Is that a signal there is closer to the end of this rate hiking cycle than we thought it was . Simon absolutely. They had a lot of criticism for doing too much too late. The economy is fragile. What will happen will be using up yet amount of tightening even if they do nothing because inflation will fall quite steeply over the next few months. The u. K. Will go from having one of the most negative real policy rates based on inflation fixing swaps to plus 2 and that is where the u. S. Is right now. It will be a quick tightening in conditions even of the bank of england does nothing. There is acknowledgment of that, but they are not going to let the market think that. You have this residual 50 basis points. They want that there. That does not mean they will deliver. Traders might get disappointed on that. You want to keep that in there. If it goes the other way they get a bigger loosening in the transmission. Where things are now is where they are happy with it. Kailey maybe we will see a little bit of contention between the markets and the bank of england but what about inter bank of england contention . What should we be making of the threeway split . It suggests that will be harder for them to agree on Monetary Policy Going Forward. Kristine a very interesting split. The last time we saw such a threeway split was in december when we saw another 50 basis point rate hike and also notable the split, the policy Committee Voting for a bigger 50 basis point rate hike which was 30 birth 33 of the market seeing that is a chance we would see that. A sizable minority seeing that. Moving forward there will be a lot of debate of whether this is the peak. Have we seen the last bank of england rate hike this year . Certainly when it comes to pricing, we are seeing an additional 50 basis points. Risk to that is to the downside and we could get last when we know more about that. Guy the other critical change today was the bank pointed to an extended period when weight when rates will remain elevated. It seems to be moving through the idea is getting to peak rates but it now wants to signal that rates stay elevated. Maybe to communicate to the population they should not expect rate cuts. What you think about rate cuts . When we think the fed will be cutting rates . When we think the bank of england will be cutting rates . How to three fit together . Kristine as far as the bank of england is concerned, people definitely looking at the end of this year as the peak. I do not think there are aggressive rate cuts, that is getting built into the curve. In terms of that rate cut scenario i think markets in the u. S. Our little bit ahead of that because they have been pricing that for some time and i think the federal reserve, jay powell and his crew went earlier in terms of signaling. Guy i wonder if this is changing . Kristine quite interesting in terms of who will go first in delivering those rate cuts and moving beyond the rate hiking cycle. Kailey simon, to expand on this point, it is one thing for some to start cutting first but it is also question of is the boe going to keep hiking if others have stopped. How does that influence the decision of Andrew Bailey . Simon the fed is the big actor and that will mean that will make the ecb and the bank of englands life easier now that it is clear they are close to the end of their hiking cycle. That will factor into what they are saying. As regard to cuts, i wouldve thought there would be a window of opportunity for the fed and the other Central Banks were you have slowing inflation. You can see the opportunity to cut rates. Now that opportunity is passed. Inflation will begin to reaccelerate as early as the end of the year and perhaps this is now an extended pause. Guy does that what we are seeing in the 30 year at the ism data . Simon the market is beginning to send guy that inflation is going up . Simon it is not a oneshot problem. It is something that will be here and dredged for a considerable period. Guy the bank of england sounded confident it thinks inflation will go down and trend lower. The market is beginning to sniff out a problem with that. Is there a danger the bank of england underestimates inflation . Simon they always seem to be completely out of sync. Over the next three or four months we will see inflation go down. Inflation is a backwards looking thing. It is telling you what has happened. Want to be looking forward. Ism prices paid. China will be key. Watch what happens in terms of stimulus. These are the most forwardlooking indicators you can look out. Perhaps the market is beginning to sniff out not all is well in and nation world. Guy kailey that would help explain the treasury market. The 10 year yield up. What you make of the bond selloff we are seeing and how is it realistically going to ripple globally to the u. K. And other places . Kristine very interesting bond selloff. I would note it is extra interesting that what we are seeing today is essentially a steepening of the yield curve. That is always what some of the more advanced yield curve watchers have warned about. It is not the fact that it has been inverted for however long over last decade. It is the steepening that follows. We are starting to see that now. As investors come to grip with the ideas that longer rates are too low considering the amount of debt we have out of the u. S. But in a lot of developed nations and that has to go through a painful adjustment and we might just be seeing the beginnings of that. Guy if this trend persists and we see yields moving higher we get that, what snaps . Simon risk assets. Everything is predicated on the fact of inflation coming down. It has boosted excess liquidity. It is the difference between real money growth. That liquidity will get squeezed. That has been the basis of this risk asset rally. Obviously it is not good for the economy because rates go much higher. They are in a feedback loop where fiscal profligacy is feeding into higher yields and feeds back into the problem in the first place. It is a quandary. It is too early to say. You want to keep a close eye on that. Kailey we know you will and Kristine Aquino will as well. Kristine aquino and simon white. Coming up, more on the boe decision with dan julius, former hawk on the bank of england vision policy. This is bloomberg. So i called innovation refunds. Their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your Small Business qualifies. Somebody would ask her something and she would just walk right past them. She didnt know they were talking to her. I just could not hear. I was hesitant to get the hearing aids because of my short hair. But nobody even sees them. Our nearly invisible hearing aids are just one reason weve been the brand leader for over 75 years. When i finally could hear for the first time, i started crying. I could hear everything. Call 1800miracle and schedule your free hearing evaluation today. Guy lets carry on our conversation around what we learn from the bank of england. 25 basis point hike. Did not get to 50. In outlook suggests that the bank of england is getting closer to being done. The governor talk today about restrictive policy. Our question of the date of what breaks if rates keep rising. Lets fold the bank of england and all of this. Deanne julius, a former member of the bank of england Monetary Policy committee. Nice to see you in person. What did you make of today . What did we learn . Deanne the big change is there were subtle hints the Monetary Policy Committee Considers the current stance restrictive and it has not said it is going to pause or stop but it is beginning to use that terminology. I think that is important because that is a good way to guide the market without using socalled Forward Guidance. Kailey if you had to put some Forward Guidance on this, how much further do you think they can or should go . Deanne nice to see you, kailey. I think somewhere near six. It is interesting the bank of england monetary was conditioned on the markets forecast of future Interest Rates. The Market Forecast peak set just below six. That is a clue that might be as high as they go. Maybe not quite that high. Guy is there a risk they go lower than that . We get one more hike . Is there risk we raise to 550 . Deanne there is certainly a risk. It is interesting that one member of the committee voted for no change and i think she voted for no change a couple of times. That is a person who believes in the forecast. That is a person who does things that there is been enough increase that the economy is bound to slow down faster and bring in nation down. Given the hit to credibility and some other Central Banks have faced they will not quit too soon. Kailey you speak of one person. There are multiple individuals that make up the Monetary Policy committee and we got a threeway split today. Do you expect we will see more of that kind of discord Going Forward . Deanne we might. It is two opposite poles. It is possible to argue given that inflation is so far above target, nearly 8 compared to 2 , a lot more needs to be done. That is what two of the members thought. It is also possible to say we have done so much in the past this will be the end of it. What it indicates when you have a threeway split is it is not an obvious decision even though it was a decision the market expected. The argumentation and the discussion within that Committee Room are probably a lot more interesting for all of us than they have been for a long time. Kailey kailey guy we are seeing a big move in bond markets. Part of that is the u. S. Downgrade, part of that is the bank of japan at the tiptoe towards the end of yield curve. There is concern the bank of england would throw additional fuel on that fire by increasing its exit from the large Balance Sheet it has built up. Do you think that is necessary. They pushed that decision into the next meeting. Do you think it is necessary they do that . Deanne i do not think it is necessary. The link between qe and qt is inflation is even wobbler that it is between Interest Rates and inflation. They have a good excuse if they decide to do it because there are more bonds maturing next year than this year. If they do not replace maturing bonds it will provide a way to gradually tighten. I do not think it is necessary. Kailey as we talk about what bond markets are pricing in, it would indicate no one is trying to buy a safe haven asked acting a recession, nobody is fleeing to the safety of treasuries at this point. The soft landing narrative is building. You think we could see a soft landing in the u. K. , especially if they have to go to 6 . Deanne i think we have seen the beginnings of a soft landing already. It was 18 months ago the bank was predicting a two year recession. That has not happened. We have not had a recession. Germany is having one. But we are seeing in the u. K. As well as in the u. S. Is a slowing of this Interest Rate trajectory. There may be a pause here. Certainly at 50 basis point hike last meeting was not repeated. I suspect the markets and the real economy are seeing that not only has inflation and started to come down, a little slower than one would like. Interest rates are getting close to that. Guy how convinced argue we have seen a peak in inflation. We were just talking about this a moment ago. You look at the ism data out of the states. There other indicators started to signal that inflation could reaccelerate from here that this trend will be seen we have seen may coming to an end. What is your degree of certainty that given where rates are now, given the work that has been done already, we are in a sufficiently restrictive point that we could count on inflation having been beaten. How big a danger if it reaccelerates . Deanne i dont think it will reaccelerate that i think it will be bumpy. There will be external shocks. Coming out of the black sea, coming out of the heatwave, where a lot of our fruit and vegetables come from. We are likely to see ups and downs but i think in terms of returning to the kind of peak we have had, 11 or so, that is highly unlikely. What the market in the Business Community need to do is hold their nerve if we get a month that looks like it is tipping up. The trajectory is down guy . The trajectory is down but it will be stop the other way. Deanne julius joining us from chatham house. This is bloomberg. When you look at the investment from sovereigns it is difficult to compete in the highest level of the top tier in football. There is an enormous opportunity to compete in Everything Else within football across all of europe. English football was particularly appealing to us for the reasons cited earlier. It is very much about birmingham. Guy birmingham. Capital management vice chair and coceo on Bloomberg Television talking about his investment with tom brady into kailey leinz birmingham city. Whenever kailey leinz comes on there is usually tom brady news. She is such a huge fran of tom brady. A huge fan of tom brady. It is his birthday today. Kailey leinz is a huge fan. He is investing in birmingham. I was born in birmingham. My dad was a big fan. My uncle was a big city fan. He is investing in birmingham city. Not in the premiership, one down. He has never been to a game. He is looking forward going to a game. This is a game you play with your feet just by we called football. Kailey right. Versus our football and tom bradys usual football. In his statement he says he cannot wait to experience the passion firsthand because he is not yet. To set the record straight, i am a Denver Broncos fan, not a tom brady fan. This is a pattern for him now that he is officially retired from the nfl, decision that took him a while to make firmly. He is buying into other teams. Apparently he is going to be a partner in the las vegas raiders. He purchased a stake in the aces , the wnba team in las vegas. The 37. 5 Million Dollars a year he will get from fox to be a commentator is not enough. Guy is he doing a Ryan Reynolds . Do you think he has the same stardust affect that Ryan Reynolds has . Kailey i am the wrong person to ask about tom brady stardust. [laughter] guy you are the perfect person. Kailey these highprofile people trying to find success in other things. Ryan reynolds has been very successful. Well see if tom brady can be the goat and anything other than nfl football. You know with the goat is, right . Guy it is a thing you have in a field, right . Of all time. I know. [laughter] separated by a common language. European markets look like this. The close is next. This is bloomberg. Icates or filing returns. AvalarAhhh Ahhh Ahhh ahhh 76 of 23andme Health Customers surveyed reported taking healthier actions. 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I have people come up to me all the time and ask me, does it really work . And all i have to say is, here i am. It works. My advice for everyone is to go with golo. It will release your fat and it will release you. Guy august continues to be a poor month for stocks. Another down day. It has been aggressive since the start of the month. Im not sure it is correlated to the start of the month but the last few days have been negative. Today the ftse is down. 5 . The negativity continues. Let me show you what the stoxx 600 looks like. We were trading 470 only a few days back. We have moved down first thing, weve moved sideways. We are down. 7 . The action is coming out of the bond market. We are seeing the big selloff in the bond market. Lets take a look at one of the big stories weve been watching out of europe, that is the impact of the bank of england. The bank sounds more dovish. Maybe we do not get as many rate hikes. The ftse outperforms. The ftse 250 outperforms. The ftse 250 going to the option is in positive territory. The pound turning around. The dollar has been strong over the last few sessions. Hopefully we will get some analysis on this in just a moment. There is the u. K. Two year yield. We are marching to move in the front end. The bigger move is being driven by the states and the move in the 30 year. A few single stocks i want to mention. Here is for some on, here is persimmon stop socgen, new ceo comes in. That boosts that stock. That up nearly 3. 4 . Socgen having a fairly good session. There was also a story about consolidation earlier but infineon, the margin story, the factories there not being used getting hit hard and that being reflected in the stock, that down 9. 1 . All is not completely well the chip space. A look at the day ahead. The earnings continue. Commerzbank. Credit agricole. Maybe some m a story. Wpp will be out. It is an advertising company. And maersk out with numbers as well. Right now this feels like a macro narrative. It is all about the move in the 30 year. How that is rippling through into other Asset Classes. Kailey lets get back to our question of the day, which is what breaks if rates keep rising. How does this beat into other Asset Classes like currencies . Joining us is rbc Global Markets global head of fx strategy. First the question in regard to the dollar. If we see the march higher in treasury yields does that mean it keeps going from strength to strength . Elsa it is a combination of weakness in equities and bonds at the same time or strength in yields, which is very positive for the u. S. Dollar. It dominated trading in 2022 and it is what we have seen in recent trading sessions. It is still early days to say that will be an extension from here on out, but if it were to hold it would certainly be a positive environment for the u. S. Dollar. Guy how would you play that in terms of is that something youre looking at g10 . How are you thinking about that dollars story . Elsa what is interesting is it is Dollar Strength across the board. That said, there are different ways you can play depending on your personal bias. Last year we saw dollaryen was a popular way of playing it. We have still been in the dollaryen camp this year. That is despite the again bullishness that is out there. We do not think it was going to lead to a big yen rally. That story may have run its course. Now where i would be looking is some of the crowded em trades. We have a lot of interest in all of these highyielding currencies where positioning is pretty crowded and if you will see a move higher in yields and lower in equities, this would be the casualties. Kailey interesting you bring up again after we saw the second unscheduled bond buying announcement from the boj. I want to switch to another central bank. Guy was mentioning how weve seen the pound reverse and now we are flat on the pound dollar cross. How do you read the bank of england position today and what it will mean for the pound Going Forward . Elsa what was interesting is the mention of the policy being restrictive and the fact the bank of england feels like they have reached the point where they have done a fair bit and that should now have the expected impact on the economy, maybe it is slower than it used to be, smaller number of mortgages, more of them on fixed rates. It feels like we are nearing the end of their path. The case in sterling is a difficult question to answer. Sterling has been one of those currencies where the link is weaker than a lot of other places. It is not been clear that higher rates are necessarily a good thing for the currency. Today we have a smaller than expected height and as you point out sterling is not down on the day. Kailey unfortunately we have to leave it there but thanks a much for joining us. Coming up, we will go back to oklahoma. Alix steel is there for an exclusive interview with a legend in the energy industry, harold hamm. Will be joining. To be determined if the cowboy hat is joining. This is bloomberg. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Kailey this is Bloomberg Markets. Youre looking at live pictures of the principal room. Coming up, dan chung joins bloomberg tv at 1 00 new york time. This is bloomberg. Guy Continental Resources chair harold hamm is a pioneer in the shale industry and is sharing his 50 years of experience in the Energy Sector in a new book. The book is titled game changer. I want to take you to oklahoma city. Alix is sitting down with harold hamm to talk about the book and so much more. Over to you. Alix thank you so much. Most importantly, harold likes my hat, so i will put that out in the universe. Harold that would happen now. Alix my microphone dropped. We are back. It is good to see you. Thank you for joining. Harold it is good to be with you. Thank you so much. Alix congrats on the book. I want to pick up on one passage. We are nearing a breaking point in america if policymakers do not relent and reverse hostile oil and natural gas policies the American Economy will retract as it did under jimmy carter. Inflation will spiral. The quality of life for all americans will be lowered. That is start. Yet you have the oil industry producing free covid records, more than saudi arabia. Exports are jumping. Inflation is coming down. Are we doing ok . Harold in that sense, yes. In another sense, no. With the policies they keep piling on and increasing a good burdens of all kinds that they are piling on, plus everything they have done, they took all of the federal land off the table. 26 of the landmass in the u. S. They are not allowing permitting and drilling on. That 35 of the productive capacity of the u. S. Suddenly we cannot keep up and slide backwards to where we are not Energy Independent any longer. We know what that looks like. Weve been there and done that and it is not pretty. It affects our Politics Around the world. Alix what more could we preview producing if you fix the policies you advocate for the book . Harold you could offset what we are seeing in inflation. We are not producing what we could be producing. Alix what could we be producing . 60 million . 70 Million Barrels 16 Million Barrels . 17 million . Harold probably a Million Barrels more day than we are. It would help the economy of the u. S. And help the American Worker and help in asian to drive down prices help inflation to drive down prices. Alix at the same time more oil means lower prices. We are struggling to stay at 80 a barrel with another saudi extension. Why is that . Harold you need to look forward two or three years. Demand keeps rising. Hopefully we get by the depression sensitive area we have been in the last two or three years with what has happened with the economy in the u. S. Looking forward we need to be prepared for that. I am saying we are nearing the breaking point. Alix i was talking to Scott Sheffield yesterday of pioneer. He says we could see 100, he has always been constructive between 80 and 100. You agree with that . If we are at a breaking point what is the price we see a breaking point . Harold i do not see us at 100 by year end. Goldman thought maybe 86. I believe they just report that. I think that is being optimistic. We hang high 70s, low 80s, that is probably where we will be. Alix if we unleash more american energy, doesnt that wind up hurting a price and making it harder for you to do business . Harold it impacts price. It certainly does. Rig count keeps dropping. Maybe as it should. We are barely in an oversupplied situation. Had the economy rebounded around the world we would not be oversupplied. It has been lagging. We keep shooting ourselves in the foot with the American Economy here at home. That affects everybody abroad. Alix you dont feel like things are ok . Gdp is holding in, inflation is coming down, are using that in your business or do you see a much tougher industry . Harold the rate of inflation is perhaps coming down a little bit, which is good, but you never get rid of that inflation that happened. Alix you feel it is sticky and continental right now . Harold it hit us about 20 , it hit every operator in the field 20 . That become steadystate. The rate of inflation is still going up. It is lessening, which is good. We are glad to see that happening. It definitely had a bad affect. Alix that sounds like that will stay. That is in it for a while . Harold everybody understands you never get rid of that. Alix what about labor . We have a jobs report tomorrow. How are you looking at the labor market . Are you keeping the people you want, are you going to have to let go people things get tougher, how you look at it . Harold we have a culture of continental, we do not lay off anybody. They suffered, we suffer. We all stick together. We do not lay anybody off. We have all of the folks we need at continental and i think the industry does as well. Alix in the market lots of things are happening. Rates are jumping higher. If rates go higher for you, how does that affect harold . How does that affect continental and your Capital Allocation . Harold certainly Interest Rates affects everybody. We have debt at continental. Those costs are real costs. It absolutely hurts. Alix do you produce less oil because you have to pay more in interest . Harold absolutely. It affects cash flow and ability to spend in the field. We want to spend more on our debt. Alix you recently became private. The book is amazing because it starts with you going public to develop the north dakota part and ends with you going private. What is the biggest thing since you are able to take a private that you cannot have done a year ago . Harold the big thing is we have 20 more productive capacity through the company. 20 . Alix does that just know Earnings Releases . Harold we do not have to prepare for releases and we do not have to prepare for what the analysts on wall street are saying about us. We are busy developing more efficient ways to operate. That is big. That is what we have to do today. Do all of those things that make it profitable to run in gas company. Alix where is harolds innovative brain going to spend more time . Getting more oil . Carbon capture and getting methane and Carbon Emissions out, or will it be doing things like lithium and other minerals that other Oil Companies are looking into . Harold we are not doing lithium and other minerals. Carbon capture is important. That was the right thing for us to do. It was not carbon. We were producing this is carbon the ethanol industry basically helping agriculture. It is so important to them. That was the right thing to do and certainly continental needed to lead the way and be involved in it with our expertise. We have done that. I still spend a lot of time with oil and gas. We are in some exciting basins and that is what i enjoy. As a geologist i like to find oil and produce it more efficiently and effectively, and also i enjoy helping the industry and advocating for the industry as well. Alix which you do. A couple more questions stop you are really critical about larry of blackrock in your book, particularly the esg movement. You are instrumental in trying to move the antiwoke sentiment is that over. You think there is more room to run to push against esg or do you think things have stabilized . Harold i think everybody got critical of what was going on with esg. They suddenly realized how bad that was for business, how bad it was for consumers themselves. That should not be happening. There has been a tremendous amount of pushback right here in oklahoma. Our treasurer decided any banks that will not deal with oil and gas, some of those put in calls to me to talk to our state treasurer. I am not going to do that. They got themselves in that box and theyre going to stay there. It is not a popular thing. Everybody realized how harmful and detrimental that was to single out anybody like that. And try to use those practices. It is not good. Alix another part of the book is politics and how the government needs to change the attitude of how they treat oil and gas. You are in early supporter of President Trump. I remember talking to you on air at 7 30 in the morning after President Trump was elected. You had no sleep and came anyway. Youre not supporting you are not supporting President Trump this time but he is still crushing it in the polls for republican candidates. Is there anyone you see who can help support the industry . Harold i look at each candidate through the lens of their outlook on energy. I would probably rephrase im not supporting President Trump because i think he has good Energy Policies and he had good policies altogether for america. Alix does that mean you are supporting President Trump . Harold i am in some instances. Certainly i like his policies and i am about down the road, i am for whoever can get there and be elected in 2024. That is who i am for. Alix is it fair to say anyone who is not President Biden you will support on the republican ticket . Harold any extreme with biden or whoever it is, with those extreme policies out of the left, im not for. Alix if President Biden picked up the phone and said come to d. C. , i want to talk to you, would you change your outlook . Harold i would not change my outlook as far as i do not think he has been a good president. We have had the worst inflation in 40 years. Alix you get upset in the book because he never picked up the phone to call you. You say he picked up the phone to call you in venezuela. If you picked up the if he picked up the phone . Harold i would absolutely talk to him. Ive talked to john kerry. I would certainly talk to the president , and hopefully he would listen. Alix will have to leave it there. It was great to see you. We will talk much more. It is a great book. Game changer. No matter what side youre on it is a great lesson in innovation in energy and oil. Guys, he also likes the hat. Harold i love the hat. Alix i am keeping it. Back to you. Kailey great hat, greater interview. Harold hamm, Continental Resources german and bloombergs hatted alix steel. They were just finishing the conversation regarding former President Trump and here in washington we are waiting for the former president to be arraigned at the federal courthouse after facing a third indictment on criminal charges related to his efforts to overturn the results of the 2020 election. We are expecting that arraignment at 4 00 eastern time. He will be fingerprinted. We do not expect him to be arrested or have a mug shot taken but a very consequential day in history, as this is not just a former president , but someone seeking to be the republican nominee in 2024. Guy you will be joining that array of satellite trucks parked outside. Walk me through the process. Walk me through the charges and what is at stake . Kailey there are four charges he is facing, including conspiracy to defraud the u. S. And conspiracy against the right to vote. These are charges that could carry 20 years in prison as punishment if convicted. The anticipation is not that the president would serve any time close to that, but the judge in this case, who he is not appearing before, this judge has been known to hand out tougher sentences to people related to the january 6 the riots. That will be what we are focused on after today. Today is a matter process step the former president or get on a plane from newark, new jersey, land at reagan, go through the motions of getting fingerprinted and being arraigned. It is as lawyers that will do all of the talking and he will head back up to new jersey at the end of today and we would expect them to make some remarks on truth social about how this is a weaponization of the Justice System against him and a corruption trying to knock him off as he pursues 2024 and reelection. Guy how quickly does this process happen . Not today but the bigger process . Kailey jack smith, his office has asked for a speedy trial. We have to keep in mind former President Trump is facing other trials related to other indictments in new york in march, in florida in may. The legal challenges are stacking up and the timeline and the costs associated with legal challenges will be something difficult for the former president as he is trying to actively campaign. That will wrap it up for us. I have to get over to the courthouse. Thank you for watching Bloomberg Markets the european close. Stick with us for coverage of trumps arraignment. Coming up is bloomberg technology. Dont miss that. This is bloomberg. Its an amazing thing when you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. We have been able to reach over 100 Million People impacted and affected, and at risk of hiv. The rocket fund takes all of the work that were doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. 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