Bloomberg, Mike Pompeo, Bart Van Archy discussed on Bloomberg Daybreak: Asia
Without a mask, but when it comes to indoor Activities. You still need to wear your mask. Bloomberg. Sherry on says the government feels it. Swift actions helped curve this Red GOP convention headliners Melania Trump's secretary of state, Mike Pompeo, who Bloomberg's Kevin, so really says, will be speaking not as a secretary of straight, but as a private citizen. Members of the president's administration are allowed to speak publicly if they're doing so. In private manner. If they're speaking as a private citizen, so likely he will be introduced as quote unquote, the Honorable Mike Pompeo, as opposed to the secretary. Substate. Rudy Giuliani, by the way, will make the pitch that the opposition to Donald Trump in the U. S is personality issue, not policy, and Wisconsin Governor Tony Evers has declared a state of emergency after businesses were vandalized Dozens of buildings set on fire. This in the wake of the shooting of a black man shot multiple times in the back. He says. The cycle of systemic racism and injustice cannot be tolerated, but also neither can this path of damage and destruction. In San Francisco. I met Baxter. This is Bloomberg. Doug. Thank you. It Our guest for the half hour is Bart Van Archy is the chief economist of the Conference board. Thanks for joining us. Your data on consumer confidence was one of two pieces of Ah I guess data that influenced the market today. The other being the July new home sales number, But for the moment, it looks like consumer confidence. Really took a move to the downside. What do we know from The survey work that you've done about how consumers or feeling beneath the headline number. Bart. I think you have me on the show. Yeah, it was a surprising number. I mean, overall, the expectation was that consumer confidence would moderately continue to strengthen. But the opposite was the case with actual seven points in consumer confidence. That was on top of another about five points that we lost last month. S O. That was disappointing. What was particularly disappointing is that underlying that index you have sort of to sub indexes One is looking at what is assessment of consumers of the current conditions. The current employment situation, the current business conditions. And that in particular dropped by 12 points. So in August, despite the fact that you know covert 19, which was a real problem in the South and southwest in July, I was actually beginning to ease a little bit. It didn't make consumers a lot more confident about the current situation. But then the expectations looking forward about what do consumers think about business and employment conditions and their income situation? Also deteriorated. So if you put these things together, it really doesn't look very promising on consumer spending and economic growth is a hole. Does the civic give you any indications as to why consumers are not optimistic about the future? Yeah, So? So first of all the future tube with three parts to this one is business conditions got on his jobs, and the last one is their personal income situation. Business conditions and jobs have improved a lot in in May, and in June on that really wants the results off the fact that you know things got so bad in April that it could only get better. But now we actually seen last month and again this month that this was really beginning to slow down. So we have a slightly more optimistic consumers with regard to business conditions and upon conditions and pessimistic, but not a lot more. But the third one is the real problem. The third one is personal income conditions and their consumers right from the beginning of the pandemic have been pretty much 50 50. So you know about as many negative positive consumers and in this month in August we actually more concerned with being negative about the income situation. You can imagine what it means, You know, even if he can go out and go shop, I mean, are people are you willing to spend their money And that is really a reason why we concerned because you know, even in the hope that called it will get better. That situation will improve. We just don't think it will help a lot from consumers to him Improve what I've got in my wallet to spend. I'm curious in terms of the survey group, how many participants are exposed to the equity market because you have to believe with a rally that we have seen off that march low that that would engender some type of optimism about At least the wealth effect that an appreciating asset market is having, or that it's discounting some kind of recovery in the economy. That has to speak to some degree of optimism. Maybe we can talk about that point when we continue Mark van, our chief economist at the conference board here on the daybreak Asia record highs today for the S and P and the NASDAQ. We've got a weaker dollars We get set for trading in Tokyo, Sydney and Soul will take a look at market action for you coming up. This is Bluebird. Reopening the reopening rotation has taken place. How will it happen? Healthcare's obviously very much in focus. What's next? Surely it's better to have an extension. What if this is going to be industry? White? At least there's one question you can have answered. Where to keep up. We have the latest world and.