Speaker 1: This is Bloomberg Daybreak. You for this Monday, the thirteenth
Speaker 1: of January in London coming up this hour right to reply.
Speaker 1: The Dannie Stark sell off continues as Hendenburg rebuts the
Speaker 1: Indian Conglamerates rebuttaled versus experience. UK business optimism hits a
Speaker 1: six month high, but recession risks remain a serious breach.
Speaker 1: Soon Act fires Zahowie after tax affair revelations, BP goes
Speaker 1: bearish on demand, a short salist come up short, and
Speaker 1: Britain in the doll drooms. Those are the stories we're
Speaker 1: looking at in today's newspapers, and I'm leanne Gern's plus
Speaker 1: slim pickings. A deal's drought leads to pay being cut
Speaker 1: in half for top performing bankers in Asia. That's all
Speaker 1: straight ahead on Bloomberg day Break Europe on DAB Digital Radio, London,
Speaker 1: Bloomberg eleven three oh New York, Bloomberg Washington, d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco,
Speaker 1: cyrus XM Channel one nineteen and around the world on
Speaker 1: Bloomberg Radio dot com and via the Bloomberg Business Set.
Speaker 1: Good morning, I'm Stephen Carroll and I'm Caroline Hecker. Here
Speaker 1: are the stories that we're following today. Shares in some
Speaker 1: Adanni Group companies have continued to fall after a rebuttal
Speaker 1: of fraud allegations from a short seller failed to soothe
Speaker 1: investor confidence. The Indian conglomerate, in the midst of a
Speaker 1: two and a half billion dollar share sale, is seeking
Speaker 1: to stem a route that's wiped out more than fifty
Speaker 1: billion dollars of its market value. On Sunday, Gamdanni published
Speaker 1: a four hundred and thirteen page response to Hindenburg researchers
Speaker 1: allegations of widespread corporate mouthfeasance. Bloomberg Market reporter Annabel Drulers
Speaker 1: has been breaking down what's in it. The language is
Speaker 1: extremely strong and basically he says that everything in there
Speaker 1: is a lie. It is tantamound to security fraud. And
Speaker 1: on top of that, there's a very nationalistic tone that
Speaker 1: comes through it as well, because basically a Danny is
Speaker 1: saying that as an attack on India on its growth ambitions.
Speaker 1: And then you put that into context as well, because
Speaker 1: a Danny is someone who's very close to the Prime
Speaker 1: Minister Ranger Moody and is seen as really key to
Speaker 1: carrying out a lot of Moody's programs. Alibeldoria spoke as
Speaker 1: Hendenburg today double down on its position, saying that a
Speaker 1: Danny's rebuttal fails to specifically answer the vast majority of
Speaker 1: their findings. Well here in the UK, new data suggests
Speaker 1: that outlook for business is improving as optimism reaches its
Speaker 1: highest level in six months. Bloom Bigs, You and Potts
Speaker 1: has all the details. Growing hopes of a brighter economic
Speaker 1: outlook and cooling price pressures are boosting business confidence, lays
Speaker 1: Banking Group's monthly Business parameter is showing a reading at
Speaker 1: a six month high. That's despite more signs that activity
Speaker 1: declined at the start of this year. Confidence indicators, though,
Speaker 1: are sending conflicting messages. As forecast has worn the UK
Speaker 1: is likely heading into recession. That picture was reinforced by
Speaker 1: a separate survey by business group the c b I.
Speaker 1: It says private sector activity fell over the winter due
Speaker 1: to head winds including strikes, staff shortages and the soaring
Speaker 1: cost of living in London. I'm you and pot spoin
Speaker 1: Boy Daybreak Europe. The Prime Minister, She's saying. Arkasaks the
Speaker 1: Conservative Party chairman and deems the Howe for serious breaches
Speaker 1: of ethics rules. The news follows weeks of damaging headlines
Speaker 1: related as a Howie and a multimillion pound tax bill.
Speaker 1: Cabinet Minister Michael Gove says the government was abiding by
Speaker 1: due process. I think it's important in all these situations
Speaker 1: and our allegations are made, that they are investigated impartially,
Speaker 1: independently and in full. We don't want to precipitate rough
Speaker 1: the judgment, but we do once all the facts are
Speaker 1: laid out, neat decisive action and that is what the
Speaker 1: Prime Is has given today, decisive action, but only after
Speaker 1: a full and proper investigation. Michael Gove there speaking to
Speaker 1: reporters on Sunday as the news broke. The government now
Speaker 1: wants to refocus its plan on overhauling the NHS as
Speaker 1: heads into another week of disruption with strikes planned across
Speaker 1: multi sectors. Meanwhile, Bloomberg understands that top investment bankers in
Speaker 1: Asia are seeing their pay packets cut in half this year.
Speaker 1: Sources tell us that on average, managing directors at banks
Speaker 1: including Goldman Sachs, Morgan Stanley and Bank of America are
Speaker 1: seeing compensation drop by between forty and fifty. Meanwhile, non
Speaker 1: performers are seeing pay reductions of up to sev and
Speaker 1: many have also been left out of the bonus pool altogether.
Speaker 1: The news comes as a slumping dealmaking ended the industry's
Speaker 1: war for talent, with banks increasingly looking for ways to
Speaker 1: keep a lid on spiraling costs. Wall Streets focus will
Speaker 1: be split between global central banks and more big earnings
Speaker 1: this week with a preview of what's look out for.
Speaker 1: Here's Bloomberg's Charlie Palace, Microsoft end Intel rattled investors last week.
Speaker 1: Lisa Shalott's chief investment officer for Wealth Management of Morgan Stanley.
Speaker 1: She says it's a bad omen for the US economy.
Speaker 1: There is definitive risk to the earnings profile as both
Speaker 1: pricing power and volumes decline coming off what has been
Speaker 1: a historic stimulus over the last two and a half
Speaker 1: years and a paw forward in demand. This week, we
Speaker 1: will hear from tech giants including Apple, Alphabet, Metal Platforms, Qua, Calm,
Speaker 1: and Amazon, also reporting x on Mobile for GM, McDonald's
Speaker 1: and Starbucks in New York. Charlie Pellette Bloomberg Daybreak Europe. Okay,
Speaker 1: those are a few of our top stories this morning. Now,
Speaker 1: I think this is I mean, if you've ever had
Speaker 1: a hard day at work and you're looking at the
Speaker 1: start of this week, um At a spare thought for
Speaker 1: Rio Tinto. Apparently they have lost a highly radioactive capsule
Speaker 1: along the highway in Western Australia. They're looking for it,
Speaker 1: of course, but they have yes, they have not seen
Speaker 1: it though for eighteen days. And it's also tiny. It's
Speaker 1: just millimeters long. Yeah, I mean it doesn't seem like
Speaker 1: it's going to be particularly easy to find. Now. The
Speaker 1: Western Australian government has said that the package basically they
Speaker 1: found this because the package that was holding us there
Speaker 1: was one of the bolts that were missing and that
Speaker 1: was one of the discovered that this very important gauge
Speaker 1: was missing as well. Um At the head of ourn
Speaker 1: Orfrea tend to Simon trut saying a statement that they
Speaker 1: recognized this is very concerning and are sorry for the
Speaker 1: alarm that it has caused in Western Australia as a result.
Speaker 1: I mean they're searchings of highway to try and find it. Yeah,
Speaker 1: absolutely so. As I say, spare thought for for them
Speaker 1: looking for that tiny widget. Also, though we were talking
Speaker 1: We have talked a lot about AI chat bots and
Speaker 1: there's a new one apparently Yes, by Do, the Chinese
Speaker 1: search giant getting involved in this space, set to launch
Speaker 1: according to Bloomberg sources, and AI chat bot that's in
Speaker 1: the form of chat GPT as well. It would be
Speaker 1: China's most prominent entry into this space. Already. By Do
Speaker 1: has spent billions on AI research. They've been putting work
Speaker 1: into this area for a very long time. But it
Speaker 1: would be a pretty big launch into this area. And
Speaker 1: by Do shares rising on that. Yeah, absolutely, really really interesting. Okay.
Speaker 1: Up next, BP goes Barish on demand short sellers come
Speaker 1: up short and Britain in the duld rooms. Now the
Speaker 1: paper review on blue birdday Break Europe. The news you
Speaker 1: need to know from today's papers. Bloom Berkeley and Garon's
Speaker 1: joins us now with more details. Other stories in today's
Speaker 1: paper is good morning to you, Leanne. Let's start with
Speaker 1: the Financial Times their headline, BP cuts long term forecast
Speaker 1: for oil and gas demand. Stephen, good morning to you too.
Speaker 1: Great to see you today this Monday. Now, this lower
Speaker 1: forecast really reflects countries pursuing energy Stephen, energy security by
Speaker 1: investing in domestic renewable energy, and lots of this comes
Speaker 1: after Russia's invasion of Ukraine, which is really pushing countries
Speaker 1: away from oil and gas as they do want to
Speaker 1: become very independent when it comes to energy, and BPS
Speaker 1: annual Energy Outlook really highlights that it expects weaker economic
Speaker 1: growth because of the energy crisis that we're facing. And
Speaker 1: Bloomberg's will William Mathis he says the energy transition is
Speaker 1: going too slowly to hit climate change goals, and this
Speaker 1: is according to the British oil major's Annual Energy Outlook,
Speaker 1: So we cannot get to those twenty twenty five net
Speaker 1: zero goals that have been set at these climate agreements,
Speaker 1: which is something that when this all looks together, the
Speaker 1: Rush's invasion of Ukraine has had a real big effect
Speaker 1: on the economy and also on energy. Yeah, absolutely, look
Speaker 1: BPS outlook is always really closely watched, and you've got
Speaker 1: to bear in mind that big oils expected to have
Speaker 1: made on a billion dollars in profits, and you know
Speaker 1: how they distribute those is going to be the source
Speaker 1: of a lot of scrutiny. You know, whether all of
Speaker 1: that goes and share buy backs perhaps a bit more
Speaker 1: of it will be Hoover. Then Caroline's renewable energy becoming
Speaker 1: another very big part of opening up jobs and a
Speaker 1: transition and moving economies forward. Let's go to the Wall
Speaker 1: Street Journal next, then Leanne and they hit their headline,
Speaker 1: short sellers feel the pain in the stock markets three rally,
Speaker 1: So short seller's fortunes have really reversed this month, and
Speaker 1: this comes as the stock market has really started to
Speaker 1: claw back some of the losses that we've seen, especially
Speaker 1: over last year. Remember short seller has made those absolutely
Speaker 1: massive gains in two and this is when markets around
Speaker 1: the world just took those absolutely massive plunges that we
Speaker 1: covered here extensively. And what's really driving this rally in
Speaker 1: the markets, well as cooling inflation, is really stoking bets
Speaker 1: that the Federal Reserve will pivot away from interest rate
Speaker 1: rises and the second half of this year and actually
Speaker 1: starting to cut them as things do start to call
Speaker 1: according to the Wall Street Journal, and the strong US
Speaker 1: labor market and also China opening giving lots of investors
Speaker 1: hope as we move forward into tw twenty three, and
Speaker 1: investors betting against stocks this is unbelievable, have wrapped up
Speaker 1: eighty one billion dollars on short positions this month. That
Speaker 1: is absolutely huge amount of money. And that's according to
Speaker 1: the managing director of predictive Analytics at S three Partners
Speaker 1: who has been speaking to the Wall Street Journal. One
Speaker 1: billion dollars okay, so short sellers and then lastly the Telegraph,
Speaker 1: the lack of a growth plan is leaving Britain in
Speaker 1: the doll rooms. Look, we just had the Lloyd's Business
Speaker 1: baromater saying, actually businesses are feeling what I mean, the
Speaker 1: signals are really pushed pull on there in the UK.
Speaker 1: That's part of the problem, absolutely, Caroline. You couldn't have
Speaker 1: said it even better. So this is a warning from
Speaker 1: the Director General of the British Chambers of Commerce, and
Speaker 1: she's been writing in the Telegraph. Her name is Chevurne
Speaker 1: Haveland and she repeated government changes in policy for business
Speaker 1: is a recipe for disaster. So she feels that the
Speaker 1: government keep on changing their position en and as we hit,
Speaker 1: as we go into a possible recession, this is just
Speaker 1: making things more and more confusing. And she delivered a
Speaker 1: damning verdict on Jeremy Hunt's speech in this very building
Speaker 1: on Friday. We know Mr Handle's here. I actually saw him.
Speaker 1: I just want to put that out there. He was here.
Speaker 1: I spotted him along with Stephen Carroll Um and this
Speaker 1: really came as the Chancellor announcers plan to get the
Speaker 1: economy moving again, and the BCC Director General said, any
Speaker 1: business leader looking at whether they will invest in the
Speaker 1: year ahead as they face a wall of increased costs
Speaker 1: and taxes will have taken little cheer from what they've heard.
Speaker 1: So in a nutshell, that's a pretty damning statement from her.
Speaker 1: But she's saying increased taxes, energy prices, not enough support
Speaker 1: from the government is pushing businesses into a really difficult position. Okay.
Speaker 1: Thumbs down then from the British Chambers of Commerce when
Speaker 1: it comes to that four ease speech from Jeremy Hunt
Speaker 1: that he made hit in the bloom Bug Building. Thank
Speaker 1: you so much, Leon Gons with a look through the newspapers. Now,
Speaker 1: let's move on to the other big issues of the week.
Speaker 1: While the Fed is expected to down shift the pace
Speaker 1: of rate highs the twenty five basis points at this
Speaker 1: week's meeting, the European Central Bank and Bank of England
Speaker 1: both seen raising interest rates by fifty basis points and
Speaker 1: this will be key for markets. So Bloomberg Value Titel
Speaker 1: is with us on the week ahead. A great to
Speaker 1: have you with this value Monachly policy meetings a plenty,
Speaker 1: Oh boy, Yes, the Fed kicks it off on Wednesday night.
Speaker 1: As you mentioned, they have the rate decision and a
Speaker 1: press conference. Thursday the Bank of England rate decision. We
Speaker 1: also get their quarterly monetary policy report, which will be
Speaker 1: their upgraded growth and inflation forecast. Would be key to see.
Speaker 1: How you know that their assessment of the UK economy,
Speaker 1: given we've seen so many upgrades recently from economists on
Speaker 1: the street. And then also on Thursday the ECB rate
Speaker 1: decision and the press conference again, will regard be sticking
Speaker 1: to her line that a series of fifty basis points
Speaker 1: hikes are needed, so a slew of central banks. It
Speaker 1: makes me nervous just thinking about it, and it is
Speaker 1: a bit excited, I'm sure as well. Talk to us
Speaker 1: about the key data that we're watching out for this week, Asia, Yes,
Speaker 1: some big U s data. The highlight is the non
Speaker 1: farm Payrolls report on Friday, which is the broad monthly
Speaker 1: report of the US labor market. We know the labor
Speaker 1: market has been incredibly tight and posing a lot of
Speaker 1: issues for the FED. But we also get some key
Speaker 1: survey metrics. We get the U S I s M
Speaker 1: Manufacturing on Wednesday, and on Friday, right after the payroll report,
Speaker 1: we get the U S I s M Services. Now
Speaker 1: this is important because we've seen a lot of softening
Speaker 1: in the survey data. It's yet to show up in
Speaker 1: the hard data like the unemployment rate. But does the
Speaker 1: softening in the survey data continue. We also get some
Speaker 1: upgraded um UH wage inflation data out of the US,
Speaker 1: as well as the Jolts data out of the US.
Speaker 1: That's the job opening data. You know, we've had this
Speaker 1: number around two percent of openings per unemployed person in
Speaker 1: the US. Does that? Does that continue? And in Europe
Speaker 1: we also get the CPI across the Eurozone. The big
Speaker 1: print is the Eurozone print on Wednesday. Yeah okay, But
Speaker 1: then also we've got loads of earnings to European banks
Speaker 1: and tech. Yes, yes, the European banks. We get UBS
Speaker 1: UNI credit on Tuesday. On Thursday, we then get Deutsche Bank,
Speaker 1: UH and Santan Dair. And that's not to that's not
Speaker 1: to overshadow we have some big, big tech earnings. We
Speaker 1: have META on Wednesday and then on Thursday we have
Speaker 1: a sull of them alf Alphabet, Apple, Amazon, and Qualcom.
Speaker 1: So let's hope by the end of this week maybe
Speaker 1: we have a good direction on where the U. S
Speaker 1: economy is going and what central bankers think about it.
Speaker 1: But I've I've thought that for many months now. This
Speaker 1: is Bloomberg Daybreak Europe, your morning brief on the stories
Speaker 1: making news from London to Wall Streets and beyond. Look
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Speaker 1: Hitka and I'm Stephen Carroll. Join us again tomorrow morning
Speaker 1: for all the news you need to start your day
Speaker 1: right here on Bloomberg Daybreak Europe.