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Speaker 1: Live from the Bloomberg interacted Berker's studios. This is Bloomberg

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Speaker 1: day Break for Tuesday, February twenty eighth. Coming up today,

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Speaker 1: Goldman Sax holds a key investor day, Hong Kong is

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Speaker 1: set to end its mask mandate. The Supreme Court hears

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Speaker 1: arguments on President Biden's student debt plan, and Zoom shares

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Speaker 1: zoom higher after profit tops estimates. The first significant snowfall

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Speaker 1: hits New York City. Plus Fox boss Rupert Murnoch testified

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Speaker 1: bad hosts endorsed Donald Trump's fall selection claims. I'm Michael

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Speaker 1: bar More Ahead, I'm John Stash Aaron Sports. The next day,

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Speaker 1: odd won their sixth in a row, being the league

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Speaker 1: leading Celtics at the Garden. That's all straight ahead on

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Speaker 1: Bloomberg day Break, The Business news you need to sturn

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Speaker 1: your day, and just one fifteen minute podcast each pointing

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Speaker 1: on Apples, Spotify, The Bloomberg Business Appen everywhere you get

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Speaker 1: your podcasts. Good morning, I'm Nathan Hagar and I'm career

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Speaker 1: in Moscow. Here are the stories we're following today, and

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Speaker 1: we begin on Wall Street where Goldman Sax leaders take

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Speaker 1: the stage today hoping to turn the page on a

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Speaker 1: forgettable twenty twenty two, they will lay out reasons for

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Speaker 1: investors to rally around the stock and look to quell

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Speaker 1: concerns within the bank after an unsuccessful for right into

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Speaker 1: consumer banking. Street are not a rag and covers Goldman

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Speaker 1: for Bloomberg News. The image you have of a Goldman

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Speaker 1: SAX is a place that does not tolerate average So

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Speaker 1: when you have a venture, when you spend so much

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Speaker 1: time into saying you could build a new platform that

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Speaker 1: could become the leading digital banking firm in the country,

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Speaker 1: and then that gets unraveled, that puts a lot of pressure.

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Speaker 1: And even after the reorganization they announced a few months ago,

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Speaker 1: that has not satisfied the partners inside the film, That

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Speaker 1: is not satisfied investors, an analyst. So they are still

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Speaker 1: seeking answers. So the question is are all options still

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Speaker 1: on the table? Will they be forced to do another

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Speaker 1: radical revamp? Bloomberg Street out to Rogen says Goldman's profit

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Speaker 1: slumped by about half last year. Well, another bank in

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Speaker 1: the news this morning, Nathan brings us to Switzerland. The

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Speaker 1: country's banking regulator says Credit Suisse Quote seriously breached its

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Speaker 1: risk management obligations. In the green Sill capital financing affair,

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Speaker 1: the Swiss Bank was ordered to take remedial measures by FINNMA,

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Speaker 1: which include a periodic executive board level review. Another company

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Speaker 1: under fire in recent weeks, Karen's been a Donnie and

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Speaker 1: today the Indian conglomerate is on a road show to

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Speaker 1: rebuild confidence. That's after short seller Hindenburgh Research accused it

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Speaker 1: of accounting fraud and stock manipulation. We spoke exclusively this

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Speaker 1: morning with the chief financial officer, Juka Shinder Singh. We

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Speaker 1: have an obligation in duty to face people in environment

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Speaker 1: like this and not just a big do we ss

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Speaker 1: and cause, but to actually meeting POSTA and answer the

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Speaker 1: Pushingsen Closer Donni CFO says the company is not looking

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Speaker 1: to refinance debt or inject appital in London today, Nathan

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Speaker 1: Shares a Man grouper surging. The world's largest publicly traded

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Speaker 1: hedge fund, reported more than three billion dollars of inflows

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Speaker 1: last year. That's more than three times higher than the

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Speaker 1: average analysts estimate and Man Group shares up about seven percent.

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Speaker 1: Turning to the economy, Karen, we have surprise data out

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Speaker 1: of France and Spain Today, inflation numbers for both countries

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Speaker 1: came in hot. That's putting pressure on the European Central Bank.

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Speaker 1: Let's get the details live from Bloomberg's You and Parts

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Speaker 1: in London. Good morning, Euen, Good morning Nathan and Karen Bond.

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Speaker 1: Yields surging in Europe today after not one but two

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Speaker 1: unwelcome inflation prints. French CPI accelerated to a record seven

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Speaker 1: point two percent in the year to February, and Spanish

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Speaker 1: inflation unexpectedly rose on higher electricity and food costs For

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Speaker 1: first time. Money markets are now fully pricing in a

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Speaker 1: four percent terminal rate for the European Central Bank. That's

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Speaker 1: up from the three and a half percent investors expected

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Speaker 1: at the beginning of the year. In London, Immu and

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Speaker 1: Pot's been bad daybreak? Are you and thanks? Well? Over

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Speaker 1: an eight today a major development on the pandemic front.

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Speaker 1: Hong Kong is dropping its mask mandate as of tomorrow.

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Speaker 1: Bloomberg Daybreak Asia anchor Brian Curtis has more from the

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Speaker 1: former British territory. It's the final piece of the puzzle

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Speaker 1: and bringing the COVID era to a much awaited close.

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Speaker 1: It's been nine hundred forty five days of masking up

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Speaker 1: a period where great damage has been done to the

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Speaker 1: Hong Kong economy and its status. The government is pushing

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Speaker 1: hard now to attract tourists and overseas workers. Here coming

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Speaker 1: up in the next month a music festival, Art Basel

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Speaker 1: and the rugby sevens tournament. It's Hong Kong trying to

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Speaker 1: say we're back in Kong. Brian Curtis, Bloomberg Daybreak. Okay, Brian,

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Speaker 1: thank you well. Back here in the US, President Biden's

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Speaker 1: student loan forgiveness plan goes before the Supreme Court today

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Speaker 1: and the outcome could have widespread implications. Amy Morris has

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Speaker 1: details from our Bloomberg ninety nine one newsroom in Washington.

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Speaker 1: Forty million people could see up to twenty thousand dollars

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Speaker 1: of their student loan debt cancel depending on the outcome

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Speaker 1: of today's hearing. The Biden administration says a two thousand

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Speaker 1: three law called the Hero's Act gives the Education Secretary's

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Speaker 1: special powers when responding to national emergencies. They contend the

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Speaker 1: Trump administration did the same thing in twenty twenty, after

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Speaker 1: then President Trump declared the pandemic a national emergency. Six

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Speaker 1: Republican led states and two borrowers contend the hero's act

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Speaker 1: has never been used on such a vast scale before.

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Speaker 1: In Washington, I'm Amy Morris, Bloomberg Radio. All right, Amy,

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Speaker 1: thanks well, let's get to the markets now, in specifically,

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Speaker 1: earnings shares a Zoom up six and a half percent

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Speaker 1: in early trading after an upbead profit forecast. Let me

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Speaker 1: get the details Live with Bloomberg. Steve Rappaport, Steve, good morning,

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Speaker 1: Good morning, Karen and Nathan. Investors were encouraged after Zoom's

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Speaker 1: forecast for the fiscal first quarter topped expectations. The upid

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Speaker 1: outlook points to signs that customers are sticking with the

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Speaker 1: video conferencing app. Zoom launched more than a decade ago

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Speaker 1: and exploded in popularity at the height of the pandemic,

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Speaker 1: when much of the global workforce went remote, but the

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Speaker 1: stock plummeted in the last two years as the world

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Speaker 1: gradually reopened. Live in New York, I'm Steve Rappaport Work Daybreak.

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Speaker 1: I think Steve. Finally, Elon Musk is back on top

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Speaker 1: the testleas CEO has regained his spot as the world's

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Speaker 1: richest person after briefly losing that title to Francis Bernard Arnault.

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Speaker 1: Musk's Wealth's beenated by a nearly seventy percent surge in

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Speaker 1: Teslas stock price this year. It's up about one hundred

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Speaker 1: percent from its entraday low in early January. According to

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Speaker 1: the Bloomberg Billionaires Index, Musk's net wealth currently stands at

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Speaker 1: more than one hundred eighty seven billion dollars. It is

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Speaker 1: thirty three degrees in New York. We've got some snow

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Speaker 1: showers here and there in a winter weather advisory till

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Speaker 1: one this afternoon for a mix of snow, sleet and rain.

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Speaker 1: We'll get up to near forty degrees today. Time out

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Speaker 1: to look at the other stories making news in New

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Speaker 1: York and around the world with Bloomberg's Michael Bark and

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Speaker 1: Morning Michael, Good morning Nathan. It is the first significant

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Speaker 1: snowfall of the winter here for New York City. Bloomberg

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Speaker 1: meteorologist Rob Caroline has more on the sloppy mix of snow, sleet,

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Speaker 1: and rain. Michael, the worst of the storm is inland

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Speaker 1: away from the coast, where the coast is only going

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Speaker 1: to be seeing snow, sleet and rain this morning, changing

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Speaker 1: to rain which limits the additional accumulations, and then we'll

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Speaker 1: continue to see snowfall. A lot of areas are probably

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Speaker 1: going to see more than five inches. That's why we

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Speaker 1: have winter storm mornings and effect Inland. Michael, Thanks Rob.

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Speaker 1: When it's all done, the city will get about one

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Speaker 1: to three inches of snowfall. Outlying areas will get more. Meanwhile,

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Speaker 1: in Harrison, New York, about twenty miles outside of Manhattan,

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Speaker 1: this woman was stocking up on groceries last night. It

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Speaker 1: was like looking everywhere, there's no bread, no eggs, no milk.

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Speaker 1: Some accidents in the Tri state area have already been reported.

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Speaker 1: Fox chairman Rupert Murdoch test five that it's popular commentators

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Speaker 1: endorsed Donald Trump's false claim that the twenty twenty presidential

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Speaker 1: election was rigged, even though Murdoch said he doubted the

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Speaker 1: conspiracy theory right away, as according to his testimony under

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Speaker 1: oath and at one point six billion dollar defamation lawsuit

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Speaker 1: filed by Dominion Voting Systems, Harvard Law School professor Rebecca Tushnet,

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Speaker 1: Dominion is quite rightly doing its best to focus on

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Speaker 1: what the higher ups knew, and it's just a genuine

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Speaker 1: question who counts as responsible for it, because in some sense,

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Speaker 1: you know, if the people at the top know something

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Speaker 1: and don't communicate it to the people at the bottom, right,

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Speaker 1: the people at the bottom might still not be acting

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Speaker 1: with malice. Professor Rebecca Tushnet. Representative Nick Loloda says he

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Speaker 1: hopes fellow New York Republican George Santos will soon be

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Speaker 1: expelled from the House for fraud over his serial fabrications devoters.

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Speaker 1: Loloda added, I didn't see a more provable case of

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Speaker 1: election fraud in my seven years as Elections Commissioner than

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Speaker 1: the fraud committed by George Santos. The state of emergency

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Speaker 1: was declared in Hoboken after a large water main broke

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Speaker 1: yesterday afternoon. It impacted water pressure citywide. A construction crew

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Speaker 1: working on an unrelated project mistakenly struck a water main

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Speaker 1: on Observer Highway and Madison Street. Global who was twenty

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Speaker 1: four hours a day powered by more than twenty seven

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Speaker 1: under journalist and analysts in over one hundred twenty countries.

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Speaker 1: I'm MICHAELA bar This is Bloomberg Nathan. Thanks Michael for

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Speaker 1: the Bloomberg Sports update, brought to you by Trice stayed

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Speaker 1: out here. Good morning, John Stanshower, Good morning, Nathan. Starting

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Speaker 1: a big week for the next day, hosted the Celtics.

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Speaker 1: They'll host the Nets tomorrow, then a game in Miami,

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Speaker 1: and then a trip two Boston. Things went well at

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Speaker 1: the Guard and Nixt jumped in front, led by twenty

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Speaker 1: in the first half, kept the double digit lead most

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Speaker 1: of the rest of the way. They won their sixth

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Speaker 1: in a row one ninety four. Julius Randall and Emmanuel

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Speaker 1: Quickly both scored twenty three. The return of Mitchell Robinson

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Speaker 1: his help three games back from injuries, had double doubles

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Speaker 1: and all three the Celtics, at one point in the

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Speaker 1: first half missed fifteen consecutive three pointers. They were without

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Speaker 1: Jaylen Brown missed the game for personal reasons, and there

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Speaker 1: are other All Star Jason Tatum got ejected after picking

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Speaker 1: up a second technical. The Nets host Milwaukee tonight. If

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Speaker 1: the Bucks win, that'll be fifteen wins in a row

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Speaker 1: for them, and they'll have moved ahead of the Celtics

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Speaker 1: and into first in the East. Speaking of the Milwaukee Bucks,

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Speaker 1: Mark Lazarie's selling his twenty five percent ownership to Cleveland

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Speaker 1: Brown's owner Jimmy Haslin. The team was valued at three

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Speaker 1: and a half billion dollars in spring training, and early

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Speaker 1: reviews for baseball's new pitch clock overwhelmingly favorable the Mets.

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Speaker 1: Max Scherzer as a fan, he taking a lot to

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Speaker 1: know that when you pull the ball really messes up

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Speaker 1: the runner and the hitters. So the pitcher has con

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Speaker 1: quick control of the situation and Dick hates the pace now,

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Speaker 1: so you know what the ability also called pitch as well.

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Speaker 1: I can either work extremely quick or extremely slow and

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Speaker 1: then really change the pace of This was on s

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Speaker 1: n Y. Exhibition game times were down. Mets lost to

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Speaker 1: the Cardinals twelve seven in Tampa. Luis Severino roughed up,

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Speaker 1: but the Yankees still beat Detroit eight to five. A

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Speaker 1: third NFL team has said you good bye a quarterback,

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Speaker 1: Carson Wentz Washington doing what Philadelphia and Indianapolis did before.

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Speaker 1: ESPN of Port Chicago Bears looking to trade the first

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Speaker 1: pick of the draft. John Stash Edward and Bootberg Sports

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Speaker 1: live from coast to coast from New York to send Francisco,

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Speaker 1: Boston to Washington, DC nationwide on Sirius xamp, the Bloomberg

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Speaker 1: Business app, and Bloomberg dot Com. This is Bloomberg Day Break.

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Speaker 1: Good morning, I'm Nathan Hagrin. A lot of eyes on

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Speaker 1: Wall Street will be on Goldman Sachs today. The bank

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Speaker 1: is holding its second ever investor day, looking to drum

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Speaker 1: up support for asset and wealth management after a dismal

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Speaker 1: twenty twenty two for the broader bank. Let's get more

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Speaker 1: on what to expect at Investor Day four Goldman Bloomberg

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Speaker 1: News Wealth reporter Charlie Wells is with us, and it's

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Speaker 1: good to have you here, Charlie, because it does seem

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Speaker 1: like wealth this unit known as a WM is going

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Speaker 1: to be the focus for the bank. Tell us more

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Speaker 1: about why that is. Yeah, Nathan, that's really crucial. And look,

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Speaker 1: David Salomon moonlights as a DJ. He's not just the

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Speaker 1: CEO of Golden and Sacks, And what he really needs

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Speaker 1: to try to do here is change tack, to change

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Speaker 1: the narrative, kind of change that track and still keep

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Speaker 1: the party going. Because twenty twenty two, as you said,

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Speaker 1: was a really tough year for the bank. Off it

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Speaker 1: slumped by half. The consumer banking unit that Goldman had

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Speaker 1: really kind of brought out front and center unraveled, and

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Speaker 1: so there we're going to hear this pivot towards a

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Speaker 1: focus on that asset and wealth management business, which is

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Speaker 1: worth two point five trillion dollars. And as you say,

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Speaker 1: the focus for Solomon is to try to keep the

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Speaker 1: party going in to bring the focus back for a

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Speaker 1: lot of these partners at Goldman who have really led

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Speaker 1: their dissatisfaction with the bank's stock performance really come out

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Speaker 1: into the open here. How much pressure is Solomon under

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Speaker 1: to try to sort of corral this descent within the ranks.

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Speaker 1: He's under quite a lot of pressure. And you know,

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Speaker 1: Goldman has that reputation, or i should say, had that

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Speaker 1: reputation of making big bets, of having this sort of

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Speaker 1: practiced secrecy, of this narrow focus. And really over the

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Speaker 1: past few years, really since that sort of first investor

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Speaker 1: day in twenty twenty, we've seed a diversions there. We've

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Speaker 1: seen an emphasis on you know, more public facing, consumer

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Speaker 1: oriented business lines of being you know, much more transparent

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Speaker 1: with the public and looking a lot more like some

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Speaker 1: of its Wall Street competitors. Now, there's of course been

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Speaker 1: descent there, right, There's been a lot of changes over

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Speaker 1: the past few years. If we're talking about that asset

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Speaker 1: and wealth management business, well, that was actually separated in

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Speaker 1: twenty twenty and last year the decision was to bring

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Speaker 1: that back together. Now, when you think about a bank,

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Speaker 1: when you think about separations, when you think about bringing

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Speaker 1: things back together, there are always going to be people

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Speaker 1: who are dissatisfied because there are positions of power change.

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Speaker 1: And I mean it sort of adds to the volatility

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Speaker 1: as well, doesn't it when you have breakups and then

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Speaker 1: rejoinings within just a couple of years of each other.

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Speaker 1: I mean, it raises questions about what's the direction of

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Speaker 1: the bank, is their stability there? That's exactly right, and

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Speaker 1: that even you know, comes as we had an incredibly

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Speaker 1: volatile period in the markets over the past few years

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Speaker 1: a few years, right, you know, trading and deal making

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Speaker 1: so strong a few years ago, but then of course

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Speaker 1: in twenty twenty two really sort of going soft, kind

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Speaker 1: of tumbleweeds really rolling through a lot of those departments.

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Speaker 1: And so there just is this big push on trying

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Speaker 1: to bring more stability, trying to bring in that focus

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Speaker 1: on a smoother way to bring in profits in both

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Speaker 1: good times and bad. Are there questions about whether David

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Speaker 1: Solomon is going to stay on as CEO, is he

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Speaker 1: in a precarious position here. This is challenging. I mean,

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Speaker 1: you know, he moonlights us a DJ as we were

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Speaker 1: talking about, He's got that consumer facing kind of personality.

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Speaker 1: But as they pivot away from that more you know,

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Speaker 1: consumer driven business line, you know, there are some questions

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Speaker 1: about that. You know, there is a perception that the partners,

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Speaker 1: according to ubs Is Brennan Hawkin and analysts there are

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Speaker 1: not singing from the same hymn book, that there could

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Speaker 1: be some dissatisfaction and look, wells Fargo analyst Mark Mike Mayo,

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Speaker 1: you know, one of the preeminent analysts of Wall Street Banks,

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Speaker 1: said that he would just like to see more execution

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Speaker 1: than words when it comes down to this strategy. And

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Speaker 1: I think we should remember that for many years, for

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Speaker 1: you know, twenty five years since the IPO of this bank,

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Speaker 1: they've been talking about seeking an easier way, a smoother

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Speaker 1: way to bring in profits. And so there is this

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Speaker 1: sense of, you know, how is this actually going to happen?

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Speaker 1: And in our last minute here, Charlie, what's the feeling

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Speaker 1: about whether asset and wealth management is going to be

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Speaker 1: enough to play kate the partners are they going to

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Speaker 1: be looking for more or could asset and wealth management

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Speaker 1: be what really does provide stable earnings at Goldman. That's tricky.

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Speaker 1: I mean, look, it's two point five trillion dollars in assets.

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Speaker 1: That's huge. They're trying to make the case in some

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Speaker 1: sense that you know, Goldman inside of it has this

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Speaker 1: sort of mini Blackstone when you look at private wealth management.

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Speaker 1: Of course, you know that is bigger. It outpaced asset

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Speaker 1: management last year. It brought in seven point four billion

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Speaker 1: dollars in revenue, and so you know we're talking big

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Speaker 1: figures here, But this is a huge bank and that

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Speaker 1: cannot be the sole focus. Of course. You know, Goldman

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Speaker 1: has been known of course on those bets, on that

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Speaker 1: deal making. This is a person driven business, and so

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Speaker 1: it's not just going to be a focus on that

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Speaker 1: asset and wealth management. There's going to need to be

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Speaker 1: a broader shakeup at the bank and also in the narrative,

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Speaker 1: This is Bloomberg day Break Today, your morning brief on

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