WEBVTT - Trump Wants More 25% Tariffs, Russia Sanctions & HSBC Cost Cuts

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the Bloomberg DAYBAC podcast, available every morning on Apple,

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<v Speaker 2>Spotify or wherever you listen. It's Wednesday, the nineteenth of

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<v Speaker 2>February in London. I'm Caroline Hepkea and.

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<v Speaker 1>I'm Stephen Carroll. Coming up today, Donald Trump proposes large

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<v Speaker 1>levies on imports of cars and other products and his

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<v Speaker 1>latest tariff salvo.

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<v Speaker 2>The US says Russia's sanctions will remain for now as

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<v Speaker 2>the US administration urges Ukraine to sign an economic partnership.

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<v Speaker 1>Plus sparing no expense. HSBC announces a big profit beat

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<v Speaker 1>as the bank doubles down on its drive to cutcasts.

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<v Speaker 3>Let's start whether round up of our top stories.

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<v Speaker 1>Donald Trump says he will likely impose tariffs of around

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<v Speaker 1>twenty five percent on all imports of cars, semiconductors, and pharmaceuticals.

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<v Speaker 1>The US president says he plans to announce the new

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<v Speaker 1>charges on the second of April. European and Asian automakers,

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<v Speaker 1>including VW and Hyundai, could be the face the biggest

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<v Speaker 1>hit from the levies. America currently imports around eight million

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<v Speaker 1>cars and light trucks each year. Speaking two reporters at

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<v Speaker 1>his Marilago Club, Trump doubled down on his plan to

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<v Speaker 1>rebalance the US's trading relationships across the globe.

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<v Speaker 4>It'll be twenty five percent and higher, and it'll go

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<v Speaker 4>very substantially higher over course of a year. But we

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<v Speaker 4>want to give them time to come in because, as

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<v Speaker 4>you know, when they come into the United States and

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<v Speaker 4>they have their plant or factory here, there is no tariff.

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<v Speaker 4>So we want to give them a little bit of

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<v Speaker 4>a chance.

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<v Speaker 1>The new charges would come on top of Trump's previously

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<v Speaker 1>announced twenty five percent tariffs on steel and aluminium imports,

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<v Speaker 1>set to take effect in March. Last week, the US

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<v Speaker 1>president also ordered his administration to look into imposing broad

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<v Speaker 1>reciprocal tariffs on trading partners across the globe.

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<v Speaker 2>As Trump looks to remodel America's global trading relationships, administration

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<v Speaker 2>is continuing its efforts to shrink the US federal government.

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<v Speaker 2>At the center of that effort is Elon Musk and

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<v Speaker 2>his Department of Government Efficiency team, who have faced criticism

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<v Speaker 2>and lawsuits over their approach to cutting spending. But speaking

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<v Speaker 2>to Fox News channels Hannity alongside President Trump, Elon Musk

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<v Speaker 2>sought to justify the approach.

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<v Speaker 5>The overall goal is to try to get trillion dollars

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<v Speaker 5>out of the deficit, and if the deficit is not

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<v Speaker 5>brought under control, America will go bankrupt. This is a

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<v Speaker 5>very important thing for people to.

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<v Speaker 2>Understand Musk's comments too. Fox News came as a US

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<v Speaker 2>judge rejected a bid for immediate court intervention from Democrats

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<v Speaker 2>who say that he does not have the authority to

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<v Speaker 2>reshape the US government and its spending. Meanwhile, US Treasury

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<v Speaker 2>Secretary Scott Bessent says that Musk's Doze team already have

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<v Speaker 2>already identified and estimated fifty billion dollars in savings. He

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<v Speaker 2>told Fox News that taxpayers don't need to worry about

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<v Speaker 2>the Musque's team approach accessing their private data.

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<v Speaker 5>I think it's unfortunate that they're trying to kind of

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<v Speaker 5>a lampoon what Elon Musk and the Dose teams doing.

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<v Speaker 5>I think it's very unfortunate they're trying to be fear

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<v Speaker 5>mongerers with the American people.

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<v Speaker 2>Bessent also told Fox News he thinks Ukraine's President Vlodomi

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<v Speaker 2>Zelenski will sign an economic partnership agreement with the US

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<v Speaker 2>that hands over half the value of Ukraine's vast mineral

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<v Speaker 2>rights to the US as compensation for aid. The US

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<v Speaker 2>Treasury Secretary says that Trump wants to show Ukrainians that

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<v Speaker 2>the US supports them, whilst demonstrating to US taxpayers that

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<v Speaker 2>there will be a return on the money that has

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<v Speaker 2>already been sent to the country.

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<v Speaker 1>The U s Secretary of State Mark Rubio has told

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<v Speaker 1>European allies that the US will keep sanctions on Russia

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<v Speaker 1>in place at least until a deal to end the

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<v Speaker 1>Ukraine conflict has reached. The assurance comes after America's most

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<v Speaker 1>your diplomat held face to face talks in Saudi Arabia

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<v Speaker 1>with his Russian counterpart for the first time since Moscow's

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<v Speaker 1>full scale invasion of Ukraine. Speaking after the meeting, Rubio

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<v Speaker 1>insisted peace talks would include all major parties.

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<v Speaker 6>The first next step is working through our respective teams

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<v Speaker 6>at the diplomatic side, just to ensure that our diplomatic

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<v Speaker 6>missions can function. There's been a series of reciprocal actions

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<v Speaker 6>taken over the last ten years that have really diminished

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<v Speaker 6>our ability to operate in Moscow as an example, and

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<v Speaker 6>they would argue their ability to operate in Washington. We're

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<v Speaker 6>going to need to have vibrant diplomatic missions that are

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<v Speaker 6>able to function normally in order to be able to

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<v Speaker 6>continue these conduits.

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<v Speaker 1>US Secretary of State Marco Rubio speaking in Riad after

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<v Speaker 1>talks that excluded Ukraine and European allies. Russian officials were

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<v Speaker 1>also a beat after the talks, hailing the prospect of

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<v Speaker 1>pulling relations with the US out of the deep freeze,

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<v Speaker 1>even as they ruled out concessions such as allowing European

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<v Speaker 1>troops into Ukraine to police a PCD.

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<v Speaker 2>The UK Defense Secretary says Britain needs to re arm

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<v Speaker 2>to deal with a new era of threat from Russia.

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<v Speaker 2>In a speech, John Healey said that he wants to

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<v Speaker 2>make the Ministry of Defense run like a footy one

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<v Speaker 2>hundred company. He says it's the biggest shakeup of UK

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<v Speaker 2>defense for fifty years.

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<v Speaker 7>As a new government, we're delivering for defense. Over these

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<v Speaker 7>first seven months, we've stepped up and speeded up support

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<v Speaker 7>for Ukraine. We've increased spending this year by nearly three

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<v Speaker 7>billion pounds and we'll set a path to spending two

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<v Speaker 7>point five percent of GDP in the spring.

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<v Speaker 2>Heally wants investment in the armed forces to be paired

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<v Speaker 2>with reform, with the UK military being asked to ensure

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<v Speaker 2>better value for money for its twenty billion pound budget.

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<v Speaker 2>While the government has pledged to increase defense spending to

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<v Speaker 2>two and a half percent of UK GDP, there are

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<v Speaker 2>concerns from both military figures and the new US administration

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<v Speaker 2>that it won't be enough.

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<v Speaker 1>Herms is our to free all Israeli hostages in exchange

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<v Speaker 1>for the countries full with Gaza aiming for a permanent ceasefire.

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<v Speaker 1>The two sides are preparing to enter negotiations on how

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<v Speaker 1>to achieve a second phase of the ceasefire. Israel says

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<v Speaker 1>it seeks the total removal of Harmas as a governing

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<v Speaker 1>and military force in Gaza. The current framework expires in

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<v Speaker 1>early March.

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<v Speaker 2>Now to some earnings, HSBC expects to cut expenses by

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<v Speaker 2>one and a half billion dollars a year as part

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<v Speaker 2>of its global restructuring program. The lender detailed the plans

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<v Speaker 2>whilst reporting fourth quarter pre tax profit of two point

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<v Speaker 2>three billion dollars this morning. The numbers, which beat analyst estimates,

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<v Speaker 2>came as the bank announced a two billion dollar share

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<v Speaker 2>buy back, But our senior bank analyst Thomas Nutsel says

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<v Speaker 2>that the savings full short of expectations.

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<v Speaker 8>This is the lower end of the range which was

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<v Speaker 8>cited by media. One point five billions it were coming from,

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<v Speaker 8>probably mostly from wagers and salaries. Is around a person

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<v Speaker 8>of the wages and solids for ages we see. We

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<v Speaker 8>haven't heard of any numbers for job cuts, so I

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<v Speaker 8>think this is really disappointing. We were expecting a little

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<v Speaker 8>bit more details where the cuts will happen.

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<v Speaker 2>That was Bloomberg Intelligences Thomas Nutzell speaking there. In a statement,

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<v Speaker 2>HSBC CEO George L. Hedri said his team is creating

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<v Speaker 2>quote a simple, more agile firm. His remarks come after

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<v Speaker 2>leading the bank for roughly six months, during which time

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<v Speaker 2>he has wound down some investment banking operations and seen

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<v Speaker 2>the departure of top executives.

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<v Speaker 1>Those are your top stories on the markets? Yesterday, we

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<v Speaker 1>saw the S and P five hundred hit another record high,

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<v Speaker 1>finishing up by two tenths of one percent, helped by

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<v Speaker 1>tech shares, Intel shares jumping sixteen percent, and mid break

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<v Speaker 1>up speculation. European stocks also ended higher. This Toxics unded

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<v Speaker 1>up by three tenths of one percent. More strength and

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<v Speaker 1>Defense and banking names at play there. The treasury yield

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<v Speaker 1>the tenure yesterday rising seven basis points drag lower, and

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<v Speaker 1>by the continued weakness in European bonds. We've got that

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<v Speaker 1>tenure yield hovering at four point five five percent today

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<v Speaker 1>after the dollar strength and by two tenths of one

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<v Speaker 1>percent yesterday. It's a touchweaker in trading today. We're looking

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<v Speaker 1>at the euro at one oh four fifty eight, up

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<v Speaker 1>a tenth against the dollar this morning. Stocks in Asia,

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<v Speaker 1>the MSCIS specific index down by two tenths of one percent.

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<v Speaker 1>The Nicke in Tokyo is three tenths lower as well.

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<v Speaker 1>Concerns about the latest tariff threats from the US on

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<v Speaker 1>car makers among those that are at play this morning.

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<v Speaker 1>So some of the shares that could potentially be effective

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<v Speaker 1>by that are some of the companies that can potentially

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<v Speaker 1>be affected by that as well. Thinking about the likes

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<v Speaker 1>of Toyota and Honda, they are under pressure this morning

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<v Speaker 1>as well. Toyota shares down by one point nine percent.

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<v Speaker 2>So those are the markets in a moment. We're going

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<v Speaker 2>to bring you more on President Trump's twenty five percent

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<v Speaker 2>tariff threat and possible putin summit, plus HSBC's cost cutting plan.

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<v Speaker 2>But another story has caught my eye this morning. One

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<v Speaker 2>of the greatest collections of marbles and Roman antiquities is

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<v Speaker 2>finally being opened up to the public. Stephen and Bloomberg

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<v Speaker 2>BusinessWeek has the most amazing account of how that has happened,

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<v Speaker 2>how Giovanni Torlonia and then his son Alessandro came to

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<v Speaker 2>have this huge collection. The Torlonia Collection six hundred and

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<v Speaker 2>twenty two pieces, a neoclassical villa in the heart of Rome,

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<v Speaker 2>which has an additional thousand antique objects. Now, some of

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<v Speaker 2>this has been shown in recent years, but Bloomberg BusinessWeek

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<v Speaker 2>got to go inside actually where they're doing a lot

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<v Speaker 2>of the restoration and have a look at some of

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<v Speaker 2>those marbles.

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<v Speaker 3>The pictures are incredible.

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<v Speaker 1>Yeah, it's a great story about even getting into the

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<v Speaker 1>buildings seem like a bit of a challenge for our

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<v Speaker 1>colleague James Tarmi as well. This is an anticipation of

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<v Speaker 1>an exhibition that's going to happen at the Art Institution

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<v Speaker 1>in Chicago as well, so some of these pieces will

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<v Speaker 1>be shown. But essentially it sounds like walking into a

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<v Speaker 1>museum that might have been closed for a while. A

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<v Speaker 1>lot of these magnificent oars works still covered up that

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<v Speaker 1>haven't been displayed publicly as well. So really fascinating story

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<v Speaker 1>and once to look forward to ahead of that exhibition

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<v Speaker 1>opening next month.

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<v Speaker 2>Now, Europe is reeling from proposals in read that the

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<v Speaker 2>US could cut a deal with Putin to end the

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<v Speaker 2>fighting in Ukraine, but perhaps sacrifice the security of Ukraine

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<v Speaker 2>and of Europe. Now, President Trump may also dramatically escalate

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<v Speaker 2>the trade wars. He proposes tariffs of twenty five percent

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<v Speaker 2>on pharmaceuticals, vehicles, and semiconductors joining us. Now is our

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<v Speaker 2>senior editor, Bill Ferries to discuss Bill A very good

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<v Speaker 2>morning to you. Is President Trump going to settle the

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<v Speaker 2>war in Ukraine, perhaps on Russia's terms or more on

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<v Speaker 2>Russia's terms?

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<v Speaker 9>Well, things are moving so quickly now, I mean literally,

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<v Speaker 9>it was just over a month ago that the Biden

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<v Speaker 9>administration was shoveling all the weaponry and money it could

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<v Speaker 9>out the door to help Ukraine fend off Russia. Now

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<v Speaker 9>we've had these talks and riad four hours of talks,

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<v Speaker 9>and yes to your question. The critics of the Trump

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<v Speaker 9>approach say that the administration has already signaled some key

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<v Speaker 9>issues that Russia has wanted, which is no NATO membership

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<v Speaker 9>for Ukraine, basically an end to a lot of the

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<v Speaker 9>military support, US troops not being on the ground in

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<v Speaker 9>Ukraine in a post war scenario. So the critics say

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<v Speaker 9>that a lot of this has taken place publicly. I

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<v Speaker 9>think Marco Rubio tried to be a little more measured

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<v Speaker 9>in his comments following those four hours of talks and ryod,

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<v Speaker 9>But it is clear that this is moving very quickly.

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<v Speaker 9>President Trump even saying that he could be personally meeting

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<v Speaker 9>with Vladimir Putin possibly by the end of the month.

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<v Speaker 1>What about sanctions in this as well? The US and

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<v Speaker 1>Europe have sweeping sanctions in place on Russia's economy and

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<v Speaker 1>undeed on entities and individuals therein. Is there something that

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<v Speaker 1>there's perhaps the door opened to things being changed on.

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<v Speaker 9>This one of those well, I think one of the

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<v Speaker 9>more surprising things we heard from Marco Secretary State Marco

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<v Speaker 9>Rubio was that he talked about all the promising economic

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<v Speaker 9>opportunities there would be if the US and Russia could

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<v Speaker 9>get over this dispute in Ukraine. So certainly that would

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<v Speaker 9>require at the very beginning getting rid of some of

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<v Speaker 9>these US sanctions at the very least came in very

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<v Speaker 9>hard in late twenty twenty one or early twenty twenty two,

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<v Speaker 9>excuse me, and have had a big impact on the

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<v Speaker 9>Russian economy. But the new administration already kind of talking

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<v Speaker 9>past this future where a piece or some sort of

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<v Speaker 9>a deal has come to Ukraine and the US and

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<v Speaker 9>Russia can start restart economic ties.

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<v Speaker 2>What does all of this mean for Ukraine, because there've

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<v Speaker 2>also been various demands for mineral rights and for elections

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<v Speaker 2>in Ukraine.

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<v Speaker 9>Yeah, it hasn't exactly right. There hasn't been at a

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<v Speaker 9>lot of information from the US side on what Ukraine

0:12:57.160 --> 0:12:59.800
<v Speaker 9>would get out of this besides an end of the conflict.

0:13:00.160 --> 0:13:03.960
<v Speaker 9>Looks like they'd be forced to end this with Russian

0:13:04.000 --> 0:13:08.320
<v Speaker 9>troops on captured Ukrainian territory. They've been asked to give

0:13:08.440 --> 0:13:12.120
<v Speaker 9>up about fifty percent of the profits to any development

0:13:12.200 --> 0:13:14.920
<v Speaker 9>of critical minerals to the United States, but the US

0:13:14.960 --> 0:13:18.240
<v Speaker 9>hasn't said what kind of guarantees it would give Ukraine.

0:13:18.320 --> 0:13:22.840
<v Speaker 9>So President zelenskive Ukraine canceling his trip to Saudi Arabia

0:13:23.480 --> 0:13:25.720
<v Speaker 9>to try to attend some of these talks. He said

0:13:25.720 --> 0:13:29.120
<v Speaker 9>he wasn't invited, and he doesn't like the idea that

0:13:29.320 --> 0:13:32.120
<v Speaker 9>there are talks taking place without Ukraine's input.

0:13:33.200 --> 0:13:35.320
<v Speaker 1>The other story, of course, we're monitoring out of the

0:13:35.480 --> 0:13:38.959
<v Speaker 1>US as the latest threats around tariffs twenty five percent

0:13:39.120 --> 0:13:43.800
<v Speaker 1>on pharmaceuticals, on cars, and semiconductors. This is a plan

0:13:43.880 --> 0:13:46.720
<v Speaker 1>that's to be announced now in April. What more do

0:13:46.800 --> 0:13:47.120
<v Speaker 1>we know?

0:13:48.160 --> 0:13:51.720
<v Speaker 9>Yeah, President Trump making some vague, kind of vague comments

0:13:51.760 --> 0:13:56.120
<v Speaker 9>about twenty five percent on these different sectors. So it's

0:13:56.200 --> 0:13:59.800
<v Speaker 9>gone from beyond the reciprocal tariffs and the steel and

0:13:59.800 --> 0:14:02.520
<v Speaker 9>a luminum tariffs that we had talked about to hitting

0:14:02.840 --> 0:14:08.680
<v Speaker 9>directly on the automobile, semiconductor, pharmaceutical, medical technology sectors. And

0:14:08.720 --> 0:14:11.720
<v Speaker 9>he said it would be around he would talk about

0:14:11.760 --> 0:14:15.280
<v Speaker 9>it on April twenty second, around the neighborhood of twenty

0:14:15.320 --> 0:14:19.960
<v Speaker 9>five percent. It's clear that it tends to continue pushing

0:14:20.000 --> 0:14:23.560
<v Speaker 9>this tool. You need a complicated spreadsheet now to track

0:14:23.600 --> 0:14:26.560
<v Speaker 9>all the deadlines of when some of these tariffs come

0:14:26.600 --> 0:14:29.800
<v Speaker 9>into play. But those kind of things that are set

0:14:29.840 --> 0:14:32.960
<v Speaker 9>off several weeks in the future do give countries and

0:14:33.120 --> 0:14:36.720
<v Speaker 9>companies an opportunity to try to either negotiate with the

0:14:36.760 --> 0:14:40.040
<v Speaker 9>Trump administration or if you're a company to say, hey,

0:14:40.200 --> 0:14:44.240
<v Speaker 9>maybe we can try to relocate some production into the US.

0:14:44.440 --> 0:14:47.160
<v Speaker 9>But when you look at something like automobiles, that could

0:14:47.160 --> 0:14:51.480
<v Speaker 9>potentially hit eight million autos that get imported in the US.

0:14:51.720 --> 0:14:54.400
<v Speaker 9>That's half of all new auto sales in America. So

0:14:54.400 --> 0:14:57.320
<v Speaker 9>it would be very hard to avoid a big inflationary

0:14:57.360 --> 0:14:59.400
<v Speaker 9>impact if comes to pass.

0:15:00.000 --> 0:15:02.200
<v Speaker 2>Okay, Bill, thank you so much for being with us

0:15:02.200 --> 0:15:04.760
<v Speaker 2>this morning. Our senior editor Bill Ferry is joining us

0:15:04.800 --> 0:15:07.760
<v Speaker 2>on that trade story. The EU's top trade official is

0:15:07.760 --> 0:15:11.640
<v Speaker 2>actually traveling to Washington this week to meet a counterparts

0:15:11.640 --> 0:15:14.400
<v Speaker 2>in the US government in a last ditch attempt to

0:15:14.760 --> 0:15:18.040
<v Speaker 2>avoid being hit by duties perhaps in April.

0:15:18.520 --> 0:15:19.840
<v Speaker 3>We're not exactly sure yet.

0:15:20.160 --> 0:15:22.760
<v Speaker 1>Yeah, indeed, and just another strand of this as well,

0:15:22.800 --> 0:15:24.760
<v Speaker 1>we know the US has been very interested in some

0:15:24.840 --> 0:15:28.000
<v Speaker 1>of the rare earth well that they see Ukraine as having.

0:15:28.000 --> 0:15:31.920
<v Speaker 1>In our opinion, Columnistavier Blast, an expert in commodities, writing

0:15:32.240 --> 0:15:36.240
<v Speaker 1>that in fact, there's no evidence that Ukraine has these

0:15:36.280 --> 0:15:39.480
<v Speaker 1>sort of resources or rich mineral endowment that it would

0:15:39.520 --> 0:15:41.800
<v Speaker 1>be able to hand over to the US. As well,

0:15:41.840 --> 0:15:46.840
<v Speaker 1>he points to the US Geological Survey not listing Ukraine

0:15:46.840 --> 0:15:50.680
<v Speaker 1>as having any reserves, and particularly not of the kind

0:15:50.680 --> 0:15:54.000
<v Speaker 1>of rareer it's like lithium for example, that could be

0:15:54.120 --> 0:15:56.840
<v Speaker 1>very valuable, and he says that it would be a

0:15:56.920 --> 0:16:00.200
<v Speaker 1>folly to presume that there would be some sort of

0:16:00.320 --> 0:16:04.360
<v Speaker 1>huge benefit to be had from excavating rarer in Ukraine.

0:16:04.400 --> 0:16:06.880
<v Speaker 1>You can read having your blasts please spoonbrig dot com

0:16:07.160 --> 0:16:08.080
<v Speaker 1>for a slash opinion.

0:16:08.840 --> 0:16:12.160
<v Speaker 2>Let's think about earnings now from Europe's largest bank, HSBC.

0:16:12.360 --> 0:16:14.720
<v Speaker 2>Fourth quarter pre tax profit was a big beat at

0:16:14.760 --> 0:16:17.480
<v Speaker 2>two point three billion dollars, but the bank has also

0:16:17.480 --> 0:16:20.720
<v Speaker 2>announced a major restructuring program for the next two years.

0:16:20.920 --> 0:16:24.400
<v Speaker 2>For more, let's bring in Bloomberg's senior Asia finance correspondent

0:16:24.640 --> 0:16:26.360
<v Speaker 2>and Marin Chowdry and Breen.

0:16:26.400 --> 0:16:26.920
<v Speaker 3>Good morning.

0:16:27.080 --> 0:16:30.479
<v Speaker 2>What can you tell us in terms of the overview

0:16:30.480 --> 0:16:33.840
<v Speaker 2>of what HSBC announced this morning?

0:16:34.640 --> 0:16:36.680
<v Speaker 10>Yes, good morning. You know, there were a lot of

0:16:36.720 --> 0:16:39.600
<v Speaker 10>expectations in what was going to be announced, but the

0:16:39.640 --> 0:16:44.120
<v Speaker 10>actual statement was a lot more muted than expected. Albeit

0:16:44.280 --> 0:16:48.520
<v Speaker 10>the fourth quarter profit numbers were pretty good, you know,

0:16:48.520 --> 0:16:52.880
<v Speaker 10>it beat expectations two point three billion dollars. They also

0:16:52.920 --> 0:16:56.240
<v Speaker 10>announced a two billion dollars share buyback, which is great

0:16:56.240 --> 0:16:59.160
<v Speaker 10>news for shareholders. However, what analysts will be looking for

0:16:59.200 --> 0:17:04.639
<v Speaker 10>today is perhapserhaps more details on their massive restructuring. So

0:17:04.720 --> 0:17:08.280
<v Speaker 10>what they have said is that they are taking there's

0:17:08.320 --> 0:17:10.760
<v Speaker 10>going to be a one point eight billion dollars in

0:17:10.840 --> 0:17:15.480
<v Speaker 10>costs linked to severance packages and other upfront costs which

0:17:15.960 --> 0:17:19.240
<v Speaker 10>they haven't really detailed on what exact how many staff

0:17:19.400 --> 0:17:22.119
<v Speaker 10>to be let go at this point in time, and

0:17:22.280 --> 0:17:25.479
<v Speaker 10>this particular cost will be taken over this year and

0:17:25.640 --> 0:17:27.040
<v Speaker 10>into twenty twenty six.

0:17:27.720 --> 0:17:30.120
<v Speaker 1>Yeah, and indeed this is that cost gotting a key

0:17:30.200 --> 0:17:33.000
<v Speaker 1>part of the CEO Jorgel Hedry's plans since he took

0:17:33.040 --> 0:17:36.480
<v Speaker 1>over his leadership at the bank last September as well

0:17:36.640 --> 0:17:41.040
<v Speaker 1>in context, how big are changes that's being proposed at HSBC.

0:17:41.800 --> 0:17:45.880
<v Speaker 10>Right, You know with the new CEO, George Hedri who

0:17:45.920 --> 0:17:49.080
<v Speaker 10>was the previous CFO, are very much focused on numbers,

0:17:49.119 --> 0:17:51.080
<v Speaker 10>as to be expected. He's been at their home for

0:17:51.200 --> 0:17:55.399
<v Speaker 10>roughly six months and HSBC has essentially witnessed one of

0:17:55.400 --> 0:17:59.119
<v Speaker 10>the biggest upheavals in more than a decade. So he's

0:17:59.280 --> 0:18:03.800
<v Speaker 10>wound down some of the lenders investment banking operations across Europe,

0:18:03.840 --> 0:18:07.280
<v Speaker 10>the UK and Americas in a bit too focus in

0:18:07.359 --> 0:18:10.720
<v Speaker 10>areas where he can, as it says, better serve its

0:18:10.800 --> 0:18:15.680
<v Speaker 10>corporate and institutional clients. And these broad moves have also

0:18:15.800 --> 0:18:18.800
<v Speaker 10>seen a slew of top execs heading for the exits.

0:18:19.359 --> 0:18:21.560
<v Speaker 10>And you know, in a nutshville, he's honed the focus

0:18:21.560 --> 0:18:24.040
<v Speaker 10>on the bank to Asia and selective markets in the

0:18:24.040 --> 0:18:27.040
<v Speaker 10>Middle East. And the important thing to note is that

0:18:27.080 --> 0:18:30.199
<v Speaker 10>he has warned staff and the general you know in

0:18:30.240 --> 0:18:32.520
<v Speaker 10>the investment community that he was going to take and

0:18:32.680 --> 0:18:37.000
<v Speaker 10>access such So days after taking over from the previous CEO,

0:18:37.400 --> 0:18:40.840
<v Speaker 10>nol Quinn, he told a town hall meeting in Hong

0:18:40.920 --> 0:18:44.399
<v Speaker 10>Kong that he'd be focused on keeping a lid on costs,

0:18:44.400 --> 0:18:48.679
<v Speaker 10>and essentially six weeks later he unveiled a revamp that

0:18:48.800 --> 0:18:53.000
<v Speaker 10>also involved creating a new global Commercial and Institutional Banking unit,

0:18:53.560 --> 0:18:57.560
<v Speaker 10>through which combines the lender's two largest divisions. So you've

0:18:57.560 --> 0:18:59.960
<v Speaker 10>got now Hong Kong and the UK as a staff

0:19:00.040 --> 0:19:01.879
<v Speaker 10>and a loan business. So you know, he's been a

0:19:01.960 --> 0:19:02.680
<v Speaker 10>very busy man.

0:19:03.080 --> 0:19:03.280
<v Speaker 8>Yeah.

0:19:03.320 --> 0:19:05.400
<v Speaker 2>I mean they had a huge footprint, didn't they. I

0:19:05.440 --> 0:19:07.920
<v Speaker 2>was reading something like one hundred different countries. So that's

0:19:07.920 --> 0:19:10.600
<v Speaker 2>been paired back quite a bit. What of the two

0:19:10.640 --> 0:19:15.800
<v Speaker 2>billion dollar share buyback, and also HSBC's share price right

0:19:15.840 --> 0:19:16.960
<v Speaker 2>the buy back.

0:19:17.680 --> 0:19:22.119
<v Speaker 10>They have been doing share buybacks over the last few

0:19:22.520 --> 0:19:26.840
<v Speaker 10>quarters since let's say at least twelve months, so that's

0:19:26.880 --> 0:19:30.800
<v Speaker 10>not surprising. I think the amount was slightly lower than expected,

0:19:31.320 --> 0:19:34.320
<v Speaker 10>but shareholders are generally pretty happy with the share price.

0:19:34.400 --> 0:19:37.280
<v Speaker 10>You know, it surged almost fifteen percent this year to

0:19:37.359 --> 0:19:41.000
<v Speaker 10>date in London, and they were up around one percent

0:19:41.160 --> 0:19:44.600
<v Speaker 10>in Hong Kong trading after the results announcement. They actually

0:19:44.640 --> 0:19:48.639
<v Speaker 10>started off slightly lower early this morning, so it pears

0:19:48.720 --> 0:19:52.280
<v Speaker 10>that given the shared price turning around, investors are generally

0:19:52.320 --> 0:19:53.360
<v Speaker 10>happy with the results.

0:19:53.960 --> 0:19:56.679
<v Speaker 1>This is Bloomberg Daybreak Europe, your morning brief on the

0:19:56.760 --> 0:19:59.800
<v Speaker 1>stories making news from London to Wall Street and beyond.

0:20:00.119 --> 0:20:04.040
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0:20:13.000 --> 0:20:15.760
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0:20:22.520 --> 0:20:25.080
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<v Speaker 1>Daybreak Europe