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Speaker 1: Tina. As always, thank you so much for giving us

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Speaker 1: a little bit of your busy schedule. Now, the government

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Speaker 1: has this Global Investment Summit on Monday here in the UK.

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Speaker 1: It will be one of the first times that international

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Speaker 1: investors really get to know this new administration. Do you

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Speaker 1: think they've done enough to try and attract investment to

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Speaker 1: the UK.

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Speaker 2: No, it's early days. I think they've absolutely set up

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Speaker 2: their stall and it's right that they have put investment

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Speaker 2: and growth at the heart of their strategy. The question

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Speaker 2: is how do they do it and what is the

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Speaker 2: role of government in terms of really unlocking private capital,

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Speaker 2: and that's both international capital and domestic capital. So having

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Speaker 2: the opportunity to have this Global Investment Summit next week,

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Speaker 2: I think is a great opportunity really for the government

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Speaker 2: to set out its stall and really put a little

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Speaker 2: bit more flesh on some of the ideas around, for example,

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Speaker 2: the National Wealth Fund, and particularly the role of the

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Speaker 2: UK Infrastructure Bank and the British Business Bank in terms

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Speaker 2: of working with the private sector to de risk some

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Speaker 2: of these sort of longer term investments that are so

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Speaker 2: needly needed in the UK.

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Speaker 1: Are you optimistic about the prospects of the UK economy,

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Speaker 1: but also you know, outside investment, I.

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Speaker 2: Am actually I mean, look, this year, we do expect

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Speaker 2: there to be quite sluggish growth in the UK economy.

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Speaker 2: We've only had one into straight cut so far this year,

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Speaker 2: even though we're expecting another one later on in the year.

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Speaker 2: But we do expect the pace of those cuts to

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Speaker 2: accelerate into twenty twenty five, so that does create a

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Speaker 2: positive backdrop for growth. And at the same time, really

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Speaker 2: what we're hearing from clients, and this is both international

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Speaker 2: and domestic, is what they really value is the political

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Speaker 2: stability that has been brought to the UK after the

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Speaker 2: general election, but most importantly wanting to see predictability and

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Speaker 2: policy stability to allow them to invest in long dated opportunities.

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Speaker 1: So you know, do you think that you know, the

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Speaker 1: October thirtieth budget is a really big test for the

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Speaker 1: government as again the labor probably hasn't been in power

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Speaker 1: for a long time. So what I'm hearing from big

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Speaker 1: international investors is that they want to see really what

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Speaker 1: it's about, and it's the first time we get a

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Speaker 1: properate test.

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Speaker 2: That's absolutely right. So all attention is really focused on

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Speaker 2: October thirty and we've already seen there's quite a lot

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Speaker 2: of speculation with regard to what is going to be

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Speaker 2: in the budget. You know, we have seen guilt yields rise,

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Speaker 2: you know, over the last week as there have been

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Speaker 2: some concerns around increased investment spending. But certainly I think

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Speaker 2: the government has done the right thing in terms of

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Speaker 2: just setting out their intention around the right guardrails, the

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Speaker 2: fact that that investment is not going to come all

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Speaker 2: in one go, it's going to be phased across the

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Speaker 2: electoral cycle, and most importantly that they intend on working

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Speaker 2: closely with both the OBR and the National Debt Office

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Speaker 2: or the National Audit Office, because that will reassure both

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Speaker 2: domestic and international investors.

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Speaker 1: What are you most excited about in the UK? I

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Speaker 1: know there, you know, there needs to be more apos

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Speaker 1: at some point hopefully. Is London the right place for that?

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Speaker 2: I think so. I mean, for me, the UK is

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Speaker 2: the gateway to the world. And actually when we look

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Speaker 2: at the IPO market here in London, it has actually

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Speaker 2: performed pretty well compared to previous years. So we have

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Speaker 2: seen a significant increase in IPOs, admittedly from a low base,

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Speaker 2: it's up about fifty percent so far this year, but

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Speaker 2: most importantly, those IPOs have performed very well, So I

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Speaker 2: think there is a backdrop with the rising foot seat

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Speaker 2: and the interstrate environment. That actually means the backdrop in

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Speaker 2: terms of the macro environment is actually looking broadly positive

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Speaker 2: for twenty twenty five. And certainly when we speak to

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Speaker 2: the C suite and to our corporate clients, they continue

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Speaker 2: to look for opportunities to invest, so that is key.

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Speaker 2: So corporate balance sheets are strong. There's been a lot

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Speaker 2: of financing which has gone in the deck capital markets,

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Speaker 2: both for M and a financing hybrid capital refise, liability

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Speaker 2: management exercises, so that means that we don't see much

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Speaker 2: stress in the system, which I think is also important.

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Speaker 1: You've been in charge of ze Group UKIT for a year?

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Speaker 1: Has it been? I mean there's been a lot going

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Speaker 1: on at the bank.

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Speaker 2: There has There's always a lot going on at City,

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Speaker 2: but the year has flown by and I really remain

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Speaker 2: so excited about the opportunity in the UK. You know,

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Speaker 2: where I've really been focused on is really taking advantage

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Speaker 2: of cities global network. We're in ninety six different countries,

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Speaker 2: but really focusing on those key trade corridors for US.

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Speaker 2: So we're looking to grow business between London and New York.

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Speaker 2: Of course the US is our home market, but also

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Speaker 2: in fast growing regions such as the Middle East and

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Speaker 2: in countries such as India. So for me, it's not

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Speaker 2: just about our banking business, but it is also about

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Speaker 2: how can we deliver one city through our markets, our

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Speaker 2: wealth and of course our world class services franchise.

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Speaker 1: We are basically one year on from the biggest reorganization

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Speaker 1: of City Group, with the chief executive Jane Fraser, putting

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Speaker 1: a number of things in place, and you were talking

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Speaker 1: about how you're also taking advantage of some of the

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Speaker 1: unique challenges but opportunities that you have. What's been the

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Speaker 1: biggest difference, So we have.

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Speaker 2: Really simplified our management structures. It sounds very mundane, but

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Speaker 2: things like fewer committees, fewer meetings, fewer management layers. We've

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Speaker 2: reduced management layers in some cases down to twelve from

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Speaker 2: fifteen sixteen seventeen, you know, so that means we're able

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Speaker 2: to really speed up decision making much better and drive accountability.

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Speaker 2: So that really has been I think the biggest change.

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Speaker 1: Will you hire people in the UK now that you've

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Speaker 1: kind of do have it where you want it? To

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Speaker 1: be eaten.

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Speaker 2: We're pretty much at the right size. We will continue

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Speaker 2: to hire selectively as we always have done. So we've

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Speaker 2: recently had our new head of our commercial bank for

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Speaker 2: the UK join he joined last week James Morris, and

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Speaker 2: of course at our most senior levels we've been able

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Speaker 2: to hire some really world class talent with this Ragavan

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Speaker 2: joining as head of Banking Tim Ryan in terms of technology,

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Speaker 2: so it is less about actually hiring significantly. We will

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Speaker 2: always be strategic around needing to fill fill roles, but

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Speaker 2: at the same time we have a deep bench at cities,

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Speaker 2: so it's also around giving people within our own organization

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Speaker 2: the ability to step up.

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Speaker 1: Do you know when you look at Europe, I mean

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Speaker 1: the banking world was like with speculation and then I

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Speaker 1: guess almost confirmation that there could be a merger although

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Speaker 1: the Germans don't want it. But between Commerce Bank and UniCredit,

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Speaker 1: how does that change the banking landscape and you your world?

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Speaker 2: So, I mean the European banking sector has been highly

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Speaker 2: fragmented forever and there has been lots of discussion over

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Speaker 2: the years around the need for banking union, capital markets union.

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Speaker 2: So certainly from our perspective, I mean we have a

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Speaker 2: significant presence in Europe in many different countries. So for us,

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Speaker 2: really any developments that require or actually allow for a

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Speaker 2: greater free flow of capital across the region we would

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Speaker 2: welcome because that allows us to deliver our cross border

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Speaker 2: capabilities more effectively. So we look on with interest.

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Speaker 1: But is it a litmus test of whether there's you know,

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Speaker 1: appetite for a political banking consolidation.

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Speaker 2: I think it's certainly going to be an important moment

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Speaker 2: for European banks, and I think it's interesting both. You know,

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Speaker 2: some of the comments that have come out from Mario

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Speaker 2: Draghi in his most recent report around competitiveness in the EU,

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Speaker 2: around regulation and again the need to drive capital markets union,

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Speaker 2: I think all plays into I think this next phase.

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Speaker 1: Do you know when you look at you know, I

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Speaker 1: guess the banking landscape here in London. I know you're

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Speaker 1: committed to Canary Wharf, but also maybe looking at other places,

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Speaker 1: what do you think happens to Canary Wharf?

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Speaker 2: Well, as you know, Francine, we are committed to Canary

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Speaker 2: Wolf are in the middle of a significant renovation of

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Speaker 2: our iconic city tower that's going to be completed in

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Speaker 2: the middle of twenty six. So when that's done, we

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Speaker 2: will have ten thousand people in London, the majority of

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Speaker 2: which will be at the wharf. So I think it's

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Speaker 2: a great environment to work in and I think what

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Speaker 2: Showby is doing with regard to that mixed use, I

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Speaker 2: think is to be welcomed. We also have four thousand

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Speaker 2: people in Belfast, so that has grown from the low

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Speaker 2: two hundreds twenty years ago. So again that is a

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Speaker 2: region that we are very committed to.

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Speaker 1: Tina, thanks so much as always for coming on, Tina Lee.

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Speaker 1: They're chief executive of City Group UK. Now coming up

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Speaker 1: as