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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: David Livingstone is the City Chief Client Officer, and David

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Speaker 2: joins us now for more. David Commooniti, I's going to

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Speaker 2: see you. I'm fantastic. Let's talk about where the action

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Speaker 2: is at the moment. We've been saying around this table

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Speaker 2: for a while that maybe the investment bank in recession

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Speaker 2: is over behind us. We want to talk about where

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Speaker 2: things are picking up the IPO market. How strong is

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Speaker 2: the pipeline for this year.

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Speaker 3: It's building, it's solid. But the conditions that you want

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Speaker 3: to talk about and that investors are looking at as

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Speaker 3: well as issuers are looking at in terms of rate

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Speaker 3: out look and not so much the absolute, but particularly

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Speaker 3: the volatility in the rate outlook. We're sitting here with

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Speaker 3: some of the biggest spread in terms of potential outlook

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Speaker 3: for year end rates in dollars that we've seen in

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Speaker 3: a while. The issuers are looking at that and saying, well,

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Speaker 3: how does that impact not just equity markets, but also

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Speaker 3: investor appetite to be investing in IPOs right now? You're right,

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Speaker 3: we've seen a very strong last few weeks, particularly in

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Speaker 3: the United States, particularly in the healthcare sector. We expect

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Speaker 3: those conditions to continue, but a broader rally and deepening

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Speaker 3: of the markets I think relies on some of those

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Speaker 3: other factors.

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Speaker 2: Has there been a structural shift because of what's developing

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Speaker 2: a private markets that's maybe holding back companies and basically

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Speaker 2: they've decided that I don't need to go public in

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Speaker 2: quite the same way they perhaps needed two decades ago.

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Speaker 3: I think there has been a shift over decades and

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Speaker 3: the growth of private markets, not just here in the

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Speaker 3: United States but around the world give alternative capital formation opportunities.

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Speaker 3: And you've seen I think the US is the standout

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Speaker 3: in terms of the public market still being deep liquid,

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Speaker 3: accepting very strong following in sectors with multiple comparables you

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Speaker 3: go elsewhere around the world, UK, for example, very challenging

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Speaker 3: in terms of the number of companies either leaving exchanges,

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Speaker 3: moving to the United States or not coming to market,

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Speaker 3: and with IPO levels being very significantly done.

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Speaker 1: Speaking of which I have to go there. Zeker came

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Speaker 1: to market in the US and New York, which is

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Speaker 1: basically an after set of gly Rate them. This electric

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Speaker 1: vehicle maker in China did really well, and it just

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Speaker 1: raised this larger question of do you still see the

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Speaker 1: same degree of cross border IPOs of companies not just

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Speaker 1: in China but other places coming to New York. How

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Speaker 1: much are people concerned about some of the geopolitics behind

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Speaker 1: it versus Hey, a lot of people have money.

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Speaker 3: Let's go. I think it's not just a lot of

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Speaker 3: people have money, but it's also just the depth and

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Speaker 3: quality of the US capital markets. I mean it is

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Speaker 3: gapping and significantly ahead of the rest of the world

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Speaker 3: if you go around. I've mentioned the UK, but also

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Speaker 3: the European markets are not as deep as they need

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Speaker 3: to be, Asian markets the same. So I think it's

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Speaker 3: that just continued attraction of the quality of the equity

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Speaker 3: capital markets here in the US.

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Speaker 1: Is there a rival? At this point, we were hearing

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Speaker 1: a lot from Paris. You buying that John talking to

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Speaker 1: David Solomon, Brian moynihan talking about building out in Paris.

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Speaker 1: It's looking better and better from every point of view.

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Speaker 2: It was Micron doing the salek and they were doing

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Speaker 2: the buying. So are you doing the buying too?

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Speaker 3: Particularly in Europe. I'll say that the Europe is the

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Speaker 3: place that has to do the most structural chain post Brexit,

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Speaker 3: because they need to build capital markets and as you know,

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Speaker 3: they've been trying to build capital markets and banking union

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Speaker 3: for many, many years now. And what you're seeing, I

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Speaker 3: think in France, in the Netherlands, to a certain extent

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Speaker 3: in Germany, is member states realizing that they need to

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Speaker 3: deepen their independent capital markets before there can be an

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Speaker 3: EU layer created. There is too many impediments and so

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Speaker 3: what President mccron is talking about is absolutely sensible. And yes,

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Speaker 3: Paris will grow, the markets will deepen, but I don't think,

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Speaker 3: as to your question, will be a competitor of the

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Speaker 3: United States.

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Speaker 2: What does that mean for your regional footprint as city,

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Speaker 2: Where do you want to be located, Where do you

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Speaker 2: want to boost staff, pulled back on staff, given those

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Speaker 2: forces that we've just discussed.

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Speaker 3: Well, we follow clients and so we've talked about an

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Speaker 3: IPO market's obviously a very narrow bits of what we do.

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Speaker 3: So our network remains. We operate in over one hundred

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Speaker 3: and sixty countries around the world, and we continue to

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Speaker 3: see broad opportunity in all of those regions that we

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Speaker 3: operate in, So no dilution. Of course, there'll be at

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Speaker 3: different times, different areas and more positive growth. Again, I

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Speaker 3: come back to the US being with the characteristics of

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Speaker 3: not just economic but innovation and some of the stimulus

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Speaker 3: that's happening here Europe cautious, but many European clients see

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Speaker 3: that as an opportunity to take their own business models

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Speaker 3: outside outside of Europe.

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Speaker 2: Do you think the US policy makers risks undermining the

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Speaker 2: exceptionalism that we talk about every day on programs like

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Speaker 2: this with some of the decisions that they're making. I'm

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Speaker 2: thinking more broadly, perhaps more narrowly actually around things like

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Speaker 2: M and A being unable to really know with any

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Speaker 2: real clarity what kind of deal can get done in

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Speaker 2: this economy with this White House.

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Speaker 3: Yeah, I would make a Governments clearly need to look

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Speaker 3: at policy, particularly in terms of foreign direct investment in

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Speaker 3: sensitive industries and other things. That's always been present and

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Speaker 3: will always be a be a factor. So I wouldn't

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Speaker 3: point to one administrative decision. But if you're involved in

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Speaker 3: cross border remanade you want to invest it in a market,

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Speaker 3: it's the fact that you have to examined, whether you're

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Speaker 3: in the tech sector, defense sector, banking, whatever it might be,

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Speaker 3: you need to have that really considered carefully. To John's point,

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Speaker 3: as you travel around you hear from clients, how concerned

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Speaker 3: are they.

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Speaker 1: About policies that may change drastically next year depending on

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Speaker 1: a change at the White House.

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Speaker 3: They're all asking the question. They're all, I think, who's

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Speaker 3: going to win and what will be the policy setting.

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Speaker 3: And that's very sensible, though, because the news announced yesterday

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Speaker 3: in terms of the tariffs that the US is imposing,

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Speaker 3: may indicate that actually policy differential won't be that great

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Speaker 3: depending on who's in the White House. Of course, that's

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Speaker 3: just speculation, but I think looking through that, it's really

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Speaker 3: the volatility in the second half of this year that

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Speaker 3: a lot of investor clients looking at, and on the

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Speaker 3: corporate strategic side, I think people just want to see

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Speaker 3: a little bit more certainly. You'll talk about that range

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Speaker 3: of potential outcomes on monetary policy around the world, but

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Speaker 3: they want to see a little bit more certainty in

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Speaker 3: the fiscal situation and also that policy setting. So they're

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Speaker 3: not making big decisions necessarily leading into the election, but

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Speaker 3: they want to be as informed as possible about what

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Speaker 3: it might be straight after.

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Speaker 1: How are you preparing, given the fact that you've had

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Speaker 1: clients in a lot of different countries, potentially even in China,

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Speaker 1: at a time where we're going to get potentially a

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Speaker 1: big disruption. How is that informing some of the restructuring

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Speaker 1: that city has done in terms of not just the

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Speaker 1: footprint and where you are, but how you are arranging

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Speaker 1: your sweeter products.

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Speaker 3: So nothing about our reorganization, not restructure, but nothing of

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Speaker 3: our reorganization that we've executed over the last number of

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Speaker 3: months is to do on our geographic footprint. Indeed, we've

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Speaker 3: reconfirmed the importance of our sort of global network and footprint.

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Speaker 3: So what we have done though is sharpened our ability

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Speaker 3: in our focus of our businesses and also the capabilities

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Speaker 3: that we have to address clients needs is make sure

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Speaker 3: that they're direct. Did very clearly towards the client. So

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Speaker 3: where that network, that footprint and some on and that

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Speaker 3: products that remains unchanged from what we had previously.

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Speaker 1: So you said that the reorganization has been largely completed,

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Speaker 1: and yet there have been a number of recent access

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Speaker 1: and I'm wondering how difficult it is to really retain

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Speaker 1: some of the top talent at a time of turn

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Speaker 1: of change, which is always tough.

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Speaker 3: It t is tough. I'd say that what we announced

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Speaker 3: yesterday in terms of two senior retirements of t D

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Speaker 3: col and Mike Whittaker absolutely planned all part of the

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Speaker 3: execution the Jane Fraser, our CEO, had in mind. So

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Speaker 3: this was normal, unexpected. But I go back and say, actually,

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Speaker 3: our ability to attract very senior talent is high. Andy

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Speaker 3: seeg who joined to run our wealth business, Tim Ryan,

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Speaker 3: who announced yesterday will be joining us as had of

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Speaker 3: technology in business enablement. This is very, very high quality talent.

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Speaker 3: This Ragavan who's joining us shortly to run our banking business,

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Speaker 3: top tier talent. Attracted a city attracted to the opportunity

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Speaker 3: in the platform that we have.

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Speaker 2: What do you think changed? Do you think something has

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Speaker 2: changed to attract that talent? Is it something as simple

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Speaker 2: as the stock price performance, which is up more than

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Speaker 2: sixty percent is the end of October because silly stock,

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Speaker 2: as you know, without being too critical for a lot

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Speaker 2: of people, has been dead money for a long time

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Speaker 2: starting to perform. Is that attracting talent? What is it

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Speaker 2: that's changed for you?

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Speaker 3: I think you need to go well above the share

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Speaker 3: price for it. I think it's clarity of strategy, and

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Speaker 3: I think our chief executive has set out a very

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Speaker 3: clear strategy, made some very clear decisions in twenty twenty

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Speaker 3: one in terms of some of the business activities that

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Speaker 3: we would discontinue, and being really clear through this reorganization

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Speaker 3: of the accountability that she wants the businesses to have

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Speaker 3: but also to perform, and that I think is the

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Speaker 3: factor which is attracting this talent.

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Speaker 2: Language is important. You keep saying reorganization. What is the difference?

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Speaker 2: Just help me understand between a reor and a restructuring.

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Speaker 3: I think restructuring implies that you're changing fundamentally your business mix.

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Speaker 3: Also implants that you might be sort of divesting in

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Speaker 3: certain things. It's not. We've had a management reorganization, so

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Speaker 3: our structure catches up with our strategy and we have

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Speaker 3: a much simpler management structure than we had previously.

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Speaker 2: Seems to be pay enough big time based on the

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Speaker 2: share price performance, because that's what I focus on. Setties

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Speaker 2: up this morning, or rather down just a little bit,

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Speaker 2: but over the last six months or so, pretty phenomenal

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Speaker 2: price sanction there, David, Thank you, sir, good to see you.

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Speaker 2: Thank you very much. David limitson that of City