WEBVTT - Nvidia Underwhelms, 25% EU Tariffs & Central Bankers On Instagram

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

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<v Speaker 2>This is the Blueberg DAYBAQ podcast, available every morning on Apple,

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<v Speaker 2>Spotify or wherever you listen. It's Thursday, the twenty seventh

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<v Speaker 2>of February in London. I'm Caroline Hepka coming up today

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<v Speaker 2>and Video delivers results that underwhelm high expectations after years

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<v Speaker 2>of blowouts. President Trump says the EU was created to

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<v Speaker 2>screw the United States, as he proposes twenty five percent

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<v Speaker 2>tariffs on the block plus doing it for the gram.

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<v Speaker 2>Why more and more central bankers are posting on the

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<v Speaker 2>social media site. Let's start with a roundup of our

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<v Speaker 2>top stories. Shares in Nvidia fell in after hours trading

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<v Speaker 2>as the AI Darling delivered good but not great results

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<v Speaker 2>in Video. Says that quarterly sales will be slightly above

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<v Speaker 2>analyst estimates at about forty three billion dollars, but gross

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<v Speaker 2>profit margins will be tight to than expected. We got

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<v Speaker 2>reaction from Angelo Zeno, vice president of Equity Research at CFRA.

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<v Speaker 3>The gross margin number was probably the one black eye

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<v Speaker 3>as far as where we kind of were looking at

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<v Speaker 3>the guidance side of things. It was definitely a disappointment.

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<v Speaker 3>I think when you kind of especially look at the

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<v Speaker 3>trajectory of gross margins over the last couple of quarters.

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<v Speaker 3>It kind of hit a peak run rate of about

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<v Speaker 3>seventy eight percent in the first half of.

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<v Speaker 1>Calendar twenty twenty four.

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<v Speaker 3>So the margins continue to compress here going into the

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<v Speaker 3>April quarter. The good news is we do expect that

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<v Speaker 3>to essentially be the trough of the cycle here in

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<v Speaker 3>the April quarter.

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<v Speaker 2>Angelo Zino speaking there as concerns about slowing spending have

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<v Speaker 2>continued to weigh on the artificial intelligence industry. Chinese art

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<v Speaker 2>up Deep Seek has also sparked fears that chatbots can

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<v Speaker 2>be developed at a cheaper rate, potentially reducing the need

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<v Speaker 2>for Nvidia's powerful chips for AI. President Donald Trump says

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<v Speaker 2>that tariff's on products from the European Union will be

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<v Speaker 2>twenty five percent, announcing the changes during a cabinet meeting yesterday,

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<v Speaker 2>he went on to use strong language to attack the block.

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<v Speaker 1>It was formed in order to screw the United States.

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<v Speaker 4>I mean, look, let's be honest, the European Union was

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<v Speaker 4>formed in order to screw the United States.

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<v Speaker 1>That's a purpose serve and they've done a good job

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<v Speaker 1>of it. But now I'm.

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<v Speaker 2>President, well, Trump's proposal for a twenty five percent tariff

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<v Speaker 2>on the EU is new officials later clarified that all

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<v Speaker 2>options are being considered on whether those would affect all

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<v Speaker 2>exports from the block or only certain products or sectors.

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<v Speaker 2>An EU commissioned spokesperson said that the block would act

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<v Speaker 2>quote firmly and immediately against unjustified barriers to free and

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<v Speaker 2>fair trade. Bloomberg Economics has calculated that if the EU

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<v Speaker 2>did face a blanket twenty five percent US tariff, the

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<v Speaker 2>hit to GDP could be as much as one and

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<v Speaker 2>a half percent, with Germany most badly hit. Trump's comments

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<v Speaker 2>on the eukme as he gave a series of apparently

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<v Speaker 2>contradictory answers about his plans for tariffs twenty five percent

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<v Speaker 2>tarifs on Canada and Mexico. The US president said that

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<v Speaker 2>he's not stopping the tariffs, due to come into force

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<v Speaker 2>on the fourth of March, but then he later mentioned

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<v Speaker 2>the second of April as the implementation date. White House

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<v Speaker 2>officials were forced to later clarify that deadline is still

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<v Speaker 2>next Tuesday, although Trump is still undecided on granting another extension.

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<v Speaker 2>UK Chancellor Rachel Reeves says that the British government wants

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<v Speaker 2>to boost to trade with the US. Total trading goods

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<v Speaker 2>and services between the two countries was worth two hundred

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<v Speaker 2>and ninety four billion pounds in twenty twenty four, and

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<v Speaker 2>in an exclusive interview with Bloomberg the G twenty meeting

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<v Speaker 2>in Cape Town, Rachel Reeves made the case for even

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<v Speaker 2>closer economic ties with the UK's biggest single country trading partner.

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<v Speaker 5>In terms of the future trading relationship between the UK

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<v Speaker 5>and the US. Last time that President Trump was in

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<v Speaker 5>the White House, trade and investment between our two countries increase,

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<v Speaker 5>and I have every confidence that that can happen.

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<v Speaker 2>Again, Chancellor Rachel Reeves, speaking there as the Bank of

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<v Speaker 2>England policy maker Swati Dingra warned yesterday that world trade

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<v Speaker 2>appears to be heading for an orderly fragmentation. Well, the

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<v Speaker 2>UK Chancellor's call for closer economic ties comes just as

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<v Speaker 2>Prime Minister Kis Starmer heads to Washington as the latest

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<v Speaker 2>anxious ally hoping to sway the US president's stands towards Ukraine.

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<v Speaker 2>It's the first face to face meeting of the two

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<v Speaker 2>leaders since Trump's election. Bloomberg's James Walcock reports, now.

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<v Speaker 6>The UK has always wanted to be seen as the

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<v Speaker 6>bridge between the US and Europe, with leaders scrambling to

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<v Speaker 6>change Ukraine's fate. Kiss Starma is stressing that's so called

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<v Speaker 6>a special relationship.

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<v Speaker 4>We share fundamental values of openness, of democracy, freedom of speech,

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<v Speaker 4>a freedom which this week we've shown our willingness to

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<v Speaker 4>defend with the biggest sustained increase in our defense spending

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<v Speaker 4>since the Cold War.

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<v Speaker 6>The UK Prime Minister faces a potentially career defining test.

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<v Speaker 6>Will you have any purchase on a US president who

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<v Speaker 6>has been willing to upend transatlantic relations. Starmer's aids tell

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<v Speaker 6>Bloomberg they would be delighted if they can get through

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<v Speaker 6>the week without any public disagreement with Trump in London.

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<v Speaker 6>James Wilcock Bloomberg Radio.

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<v Speaker 2>Now to another story of interest. The US Director of

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<v Speaker 2>National Intelligence Tarlsi Gabbard has called for an investigation into

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<v Speaker 2>the UK ordering Apple to give access for the global

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<v Speaker 2>data of its customers. Gabbart said that the decision could

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<v Speaker 2>leave American encrypted data at risk of being exposed. So far,

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<v Speaker 2>instead of complying with the UK, Apple has removed its

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<v Speaker 2>most advanced encrypted security features in Britain that will potentially

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<v Speaker 2>make it easier for the government or outside hackers to

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<v Speaker 2>obtain UK user data. Months after Chancellor h Vve's crackdown

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<v Speaker 2>on the UK's so called non dom tax regime, wealthy

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<v Speaker 2>foreigners are making their concerns known more now from Bloomberg's

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<v Speaker 2>team at Adebayo.

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<v Speaker 7>The UK government is having open conversations with wealthy overseas

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<v Speaker 7>nationals about tax that's according to Investment Minister Poppy Gustafferson,

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<v Speaker 7>who says there's a collaborative dialogue between the two groups

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<v Speaker 7>as the Treasury tries to troubleshoot issues. The news comes

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<v Speaker 7>after a decision to scrap a preferential tax scheme which

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<v Speaker 7>allowed foreign residents to avoid levies on UK earnings for

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<v Speaker 7>up to fifteen years, a move which provoked the ayre

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<v Speaker 7>of the ultra rich. Now, Gustafferson says the Chancellor is

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<v Speaker 7>trying to create a tax structure which will be viewed

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<v Speaker 7>as fair by the general public but prevents talented foreigners

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<v Speaker 7>from shunning the UK in London. To you at a

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<v Speaker 7>Bayo Bloomberg Radio.

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<v Speaker 2>And those stories, Let's get to the markets this hour.

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<v Speaker 2>Europeans stop future sinking half of one percent. This morning

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<v Speaker 2>they dropped one percent yesterday after President Trump's threat of

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<v Speaker 2>twenty five percent tariffs against the EU. So interesting the

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<v Speaker 2>impact via stocks. The Euros also weaker this morning in

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<v Speaker 2>terms of the trade. Now we're down two tens of

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<v Speaker 2>one percent one spot zero four six seven. US stop

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<v Speaker 2>futures are high for the S and P five hundred

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<v Speaker 2>up by three tenths of one percent. We saw Nvidia

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<v Speaker 2>shares falling one and a half percent in ex traded

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<v Speaker 2>in extended trading yesterday. The stock did rise though before

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<v Speaker 2>the earnings release, up three point seven percent, sort of

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<v Speaker 2>ahead of the release. Asian stocks though, did fall because

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<v Speaker 2>of the underwhelming seen as underwhelming results from en Video

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<v Speaker 2>or not quite as as amazing as people had been

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<v Speaker 2>hoping for. So you've got the MSCI Aged Pacific Index

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<v Speaker 2>down by three tents of one percent, Hank saying Tech

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<v Speaker 2>index dropping two percent. Tenny US treasury yield so yesterday

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<v Speaker 2>dropped four basis points. They're up to basis points this morning.

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<v Speaker 2>So we're trading at four twenty seven on that ten

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<v Speaker 2>year yield. In a moment, we are going to bring

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<v Speaker 2>you more details in fact, on Nvidia's first set of

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<v Speaker 2>earning since the emergence of deep seek But first, more

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<v Speaker 2>on this story that's come high today. Recruitment firms are

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<v Speaker 2>noticing that junior bankers are using AI to draft their resumes,

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<v Speaker 2>but beware if you don't properly proofread the application and

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<v Speaker 2>errors creep in. It's raising red flags for potential investment

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<v Speaker 2>banking employers. Of course, they are focused on the detail

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<v Speaker 2>that apparently you need in those junior banking jobs. Bloomberg's

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<v Speaker 2>Georgia Hill has the story and the details on this

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<v Speaker 2>about the proliferation of AI assisted resumes. Her point essentially

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<v Speaker 2>is that it is slowing the hiring process down because

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<v Speaker 2>everybody has to actually spend more time thinking about whether

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<v Speaker 2>the applicant is really as amazing as the AI. You know,

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<v Speaker 2>maybe AI assisted a CV might demonstrate, which is interesting

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<v Speaker 2>and also a bit ironic given that some recruiters are

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<v Speaker 2>also using AI to help filter applicants. Anyway, we could

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<v Speaker 2>all see the kind of arms race in terms of

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<v Speaker 2>AI generated cvs and AI generated readers of cvs. But

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<v Speaker 2>it's a really nice piece on the Blueberg terminal. I

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<v Speaker 2>think if you're out there looking for a job, one

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<v Speaker 2>to think about now. In Nvidia reported results which were

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<v Speaker 2>tinged with a touch of disappointment yesterday after two years

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<v Speaker 2>of blockbuster results and stratospheric stock price gains in twenty

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<v Speaker 2>twenty three and twenty twenty four. Joining us this morning,

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<v Speaker 2>it's been big intelligence. Is senior analyst Robert Lee to

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<v Speaker 2>discuss this. Robert, great to have you with us this morning.

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<v Speaker 2>A lot has been written on the Bloomberg terminal, on

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<v Speaker 2>the website about the Nvidia results. Everybody's got a view

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<v Speaker 2>because this company is so important. It's been the dominant

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<v Speaker 2>seller of processes that create and run AI software. Just firstly,

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<v Speaker 2>on the out for the first quarter, what have they said.

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<v Speaker 8>Okay, thanks very much for having me on. I guess

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<v Speaker 8>investors have become used to, or you know, being fed

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<v Speaker 8>a diet of continual Beaten rays with the company, and

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<v Speaker 8>you know it's got a long track record of doing that,

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<v Speaker 8>running over multiple quarters. So I think, first of all,

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<v Speaker 8>the stop price reaction, you saw the rate of incremental

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<v Speaker 8>beaten raises diminishing. Maybe part of that reflects the higher base,

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<v Speaker 8>but also reflects, I think a change in narrative with

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<v Speaker 8>investors focusing more on the potential risks that in video

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<v Speaker 8>faces in the short to medium term and not just

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<v Speaker 8>the positive you know underlying story which is very well known.

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<v Speaker 8>So the Q one guidance to answer your question came.

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<v Speaker 8>There's something referred to with in markets as whisper numbers.

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<v Speaker 8>I mean, there are official consensus numbers, but there is

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<v Speaker 8>always a view that, you know, a company may beat

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<v Speaker 8>or or miss those. So I think there was some

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<v Speaker 8>disappointment and there was a hope within some sections of

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<v Speaker 8>investors that the company's revenue and gross margin guidance could

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<v Speaker 8>come in a little bit better than it actually did.

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<v Speaker 8>So I think that's one short term trigger. But as

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<v Speaker 8>I said, I think the narrative is changing. One of

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<v Speaker 8>the major focuses on the risk front is obviously the

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<v Speaker 8>scope for further tariffs.

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<v Speaker 1>So obviously with.

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<v Speaker 8>A new administration in place, that remains a very real

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<v Speaker 8>threat to them because China is still a very material

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<v Speaker 8>part of their business.

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<v Speaker 2>So that just unpacked. You talk about beaten rays, explain

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<v Speaker 2>that to the audience.

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<v Speaker 8>Well, I guess stock market's run and many different things,

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<v Speaker 8>but in short term, it's all about expectations and about

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<v Speaker 8>the incremental performance or it's you know, for a stop

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<v Speaker 8>price to go up in the near term. Then the

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<v Speaker 8>guidance that a company sets and the numbers they report

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<v Speaker 8>on their earning state ideally would need to come ahead

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<v Speaker 8>of what was expt So there's an incremental positive surprise

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<v Speaker 8>and obviously the reverse you know, disappointment if as we've

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<v Speaker 8>seen with in video on the Q four numbers. So

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<v Speaker 8>in absolute terms, these are still good numbers, but they

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<v Speaker 8>beat the actual reported numbers, and more importantly, the guidance

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<v Speaker 8>didn't quite meet the very highest of expectations, So there

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<v Speaker 8>was incremental disappointment even though the numbers themselves were good.

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<v Speaker 2>Yeah, understood good. In terms of the CEO, Jensen Wang,

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<v Speaker 2>he talked about demand for Blackwell is amazing. Now of

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<v Speaker 2>course there's a new model deep Seek. How did the

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<v Speaker 2>CEO's have come across given that there is this new

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<v Speaker 2>competitive landscape, as you say, you know, it does look

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<v Speaker 2>like things are quite different now for in video.

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<v Speaker 8>Yeah, well, Jensen Wang is not just a CEO, and

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<v Speaker 8>you know and played an instrumental role in the you know,

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<v Speaker 8>the humongous growth that this company has seen in recent years.

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<v Speaker 8>He's their chief farc detect, their chief evangelist, their chief cheerleader.

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<v Speaker 8>So you know, he's very good at setting out the

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<v Speaker 8>stall and giving the sels pitch, which is what he

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<v Speaker 8>continues to do. Again, I think the narrative is changing

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<v Speaker 8>and more with a focus on these software companies and

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<v Speaker 8>big tech platforms that are ultimately buying these chips, are

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<v Speaker 8>installing it in the data centers. You know, a point

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<v Speaker 8>I've tried to repeatedly make, but both in our little

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<v Speaker 8>chats and then the publish research we have in the terminal.

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<v Speaker 8>It's monetization because again, if we did a straw pole

0:13:33.600 --> 0:13:35.920
<v Speaker 8>of listeners on this call at the moment, how many

0:13:35.960 --> 0:13:37.760
<v Speaker 8>of us are actually putting our hand in our pocket

0:13:37.960 --> 0:13:38.600
<v Speaker 8>and paying.

0:13:38.400 --> 0:13:39.280
<v Speaker 1>For these services?

0:13:39.559 --> 0:13:43.120
<v Speaker 8>And if we did, probably the chances we just switched

0:13:43.120 --> 0:13:47.560
<v Speaker 8>to another service because there are many, many alternative supplies

0:13:47.559 --> 0:13:51.360
<v Speaker 8>out the moment. The majority of AI bots or AI

0:13:52.080 --> 0:13:55.280
<v Speaker 8>tools are available for free. There is a low level

0:13:55.280 --> 0:13:58.640
<v Speaker 8>of product differentiation, you know, in many respects, or you

0:13:58.679 --> 0:14:02.760
<v Speaker 8>go back to textbook definitions, it is a commoditize sector.

0:14:03.200 --> 0:14:06.600
<v Speaker 8>So again I'm not referring to the hardware side. Obviously

0:14:06.679 --> 0:14:08.720
<v Speaker 8>in Nvidia is the global leader and what they do,

0:14:09.120 --> 0:14:13.240
<v Speaker 8>they're effectively and monopoly at the moment, But the monetization

0:14:13.320 --> 0:14:16.319
<v Speaker 8>of the software companies, you know, the US tech platforms

0:14:16.480 --> 0:14:19.000
<v Speaker 8>due to spend around three hundred and fifty billion US

0:14:19.120 --> 0:14:21.560
<v Speaker 8>dollars this year, So I would argue that the rate

0:14:21.600 --> 0:14:25.320
<v Speaker 8>of monetization is not coming through anywhere fast enough to

0:14:25.480 --> 0:14:27.360
<v Speaker 8>justify these very high levels of CAPEX.

0:14:27.840 --> 0:14:30.320
<v Speaker 2>Right, Robert, thank you so much for your time this morning.

0:14:30.560 --> 0:14:34.160
<v Speaker 2>This is such an interesting space. Bloombig Intelligence is senior

0:14:34.200 --> 0:14:35.360
<v Speaker 2>analyst Robert Lee.

0:14:35.520 --> 0:14:35.960
<v Speaker 4>Thank you.

0:14:36.480 --> 0:14:40.200
<v Speaker 2>Okay, let's dive into another interesting story. So central bankers

0:14:40.680 --> 0:14:45.200
<v Speaker 2>are trying their hand at marketing and influencing on social media.

0:14:45.600 --> 0:14:48.680
<v Speaker 2>This is in order to reach gen z and millennials

0:14:48.760 --> 0:14:51.800
<v Speaker 2>in the wake of an inflation crisis in many countries

0:14:51.840 --> 0:14:58.160
<v Speaker 2>and also the surprising issue of conspiracy theories around policy making.

0:14:58.280 --> 0:15:01.880
<v Speaker 2>Joining us now is our UK economy reporter, Arena and

0:15:02.040 --> 0:15:05.840
<v Speaker 2>girl who's been writing about why something like one hundred

0:15:05.880 --> 0:15:09.960
<v Speaker 2>central banks have actually established a presence on Instagram. Arena.

0:15:10.000 --> 0:15:13.560
<v Speaker 2>It's a great story, great tale. What are central banks

0:15:13.680 --> 0:15:15.640
<v Speaker 2>doing with their Insta accounts?

0:15:16.400 --> 0:15:20.040
<v Speaker 1>Hi, Caroline? Well, you know they're trying to meet.

0:15:19.840 --> 0:15:23.440
<v Speaker 9>Gen zs where they are, and that is on social media.

0:15:23.480 --> 0:15:26.360
<v Speaker 9>So most gen zs get their news on social media,

0:15:27.280 --> 0:15:29.840
<v Speaker 9>and central banks are trying to go there speak in

0:15:29.880 --> 0:15:33.160
<v Speaker 9>their language, so trying to keep the talk of basis

0:15:33.160 --> 0:15:38.320
<v Speaker 9>points down to regain their trust, counter misinformation and educate.

0:15:39.640 --> 0:15:41.960
<v Speaker 9>And what does that look like, Well, you know those

0:15:42.040 --> 0:15:44.720
<v Speaker 9>videos of celebrities showing a day in their life on

0:15:44.760 --> 0:15:47.640
<v Speaker 9>social media, So for example, some central bankers are trying

0:15:47.720 --> 0:15:51.240
<v Speaker 9>to do that as well, and you know, you can

0:15:51.320 --> 0:15:53.120
<v Speaker 9>imagine with various degrees of success.

0:15:53.200 --> 0:15:56.000
<v Speaker 1>And I think the Bank of Canada its own videos are.

0:15:55.880 --> 0:15:59.440
<v Speaker 9>Seemingly ai narrated, so they can look clumsy sometimes.

0:16:00.400 --> 0:16:03.080
<v Speaker 1>And then there are all sorts of funny posts.

0:16:03.560 --> 0:16:07.800
<v Speaker 9>D e c B has young people explaining it's decisions,

0:16:07.840 --> 0:16:11.720
<v Speaker 9>it's industrate decisions. And for Valentine's Day they had this

0:16:12.160 --> 0:16:16.080
<v Speaker 9>photo of the eurosymbol made of chocolate hearts captioned with

0:16:16.440 --> 0:16:19.360
<v Speaker 9>roses are red, violets are blue inflations on track to

0:16:19.360 --> 0:16:22.440
<v Speaker 9>settle around too, and.

0:16:22.160 --> 0:16:25.360
<v Speaker 2>So that's it's also very cheesy then as well, exactly

0:16:25.600 --> 0:16:26.240
<v Speaker 2>exactly and a.

0:16:26.240 --> 0:16:30.480
<v Speaker 9>Bit you know, poking fun at themselves as well. And

0:16:30.920 --> 0:16:34.040
<v Speaker 9>I mean maybe the most striking for me was the

0:16:34.040 --> 0:16:39.120
<v Speaker 9>Bank of Jamaica. And the Bank of Jamaica has this

0:16:40.080 --> 0:16:45.040
<v Speaker 9>lunchtime concerts at the Central Bank, these reggae concerts, and

0:16:45.200 --> 0:16:47.960
<v Speaker 9>on its Instagram account you can find videos of people

0:16:48.320 --> 0:16:52.600
<v Speaker 9>in the central bank, just random people dancing to the

0:16:52.680 --> 0:16:57.040
<v Speaker 9>reggae music. So yeah, that's that was the funniest example

0:16:57.280 --> 0:16:58.760
<v Speaker 9>and probably the most successful. You know.

0:16:59.360 --> 0:17:01.720
<v Speaker 2>Yeah, So this the central bankers sort of needing to

0:17:01.760 --> 0:17:05.040
<v Speaker 2>reach out to the public is very interesting obviously because

0:17:05.640 --> 0:17:09.520
<v Speaker 2>you know, they're officials with such importance, but they're not elected,

0:17:09.680 --> 0:17:12.639
<v Speaker 2>so you know, they're kind of interactions with the public.

0:17:12.680 --> 0:17:14.800
<v Speaker 2>It's quite interesting. What do you think of the aim

0:17:14.920 --> 0:17:17.320
<v Speaker 2>of all of this is then? And also, I guess

0:17:17.359 --> 0:17:20.520
<v Speaker 2>what does success look like? I mean, some of what

0:17:20.560 --> 0:17:24.680
<v Speaker 2>you outlined, yes is perhaps sounds a bit a bit

0:17:24.760 --> 0:17:29.679
<v Speaker 2>cheesy or not as glamorous as the successful Instagram posts

0:17:29.680 --> 0:17:33.480
<v Speaker 2>that you might expect. But what are what is the aim?

0:17:34.320 --> 0:17:36.680
<v Speaker 9>That's a great question, and I think many people are

0:17:36.720 --> 0:17:39.800
<v Speaker 9>still trying to answer the questions. So the big aim is,

0:17:39.880 --> 0:17:42.399
<v Speaker 9>you know, to to engage to educate the public, because

0:17:42.440 --> 0:17:47.360
<v Speaker 9>central banker's decisions on interest rate policies they affect everyone.

0:17:47.440 --> 0:17:49.520
<v Speaker 9>You know, we can just think of mortgage rates as

0:17:49.560 --> 0:17:52.879
<v Speaker 9>the main example, but most people don't understand how it

0:17:52.960 --> 0:17:55.320
<v Speaker 9>works or how it affects them. So central bankers have

0:17:55.400 --> 0:17:56.879
<v Speaker 9>to be out there and they have to set the

0:17:57.000 --> 0:18:00.000
<v Speaker 9>narrative and often they have to be a bit cheat

0:18:00.480 --> 0:18:03.280
<v Speaker 9>because that's what people consume on social media, or that's

0:18:03.400 --> 0:18:06.760
<v Speaker 9>what central bankers think people consume on social media. But

0:18:06.920 --> 0:18:09.960
<v Speaker 9>I think there is a limit to how successful they

0:18:10.000 --> 0:18:12.960
<v Speaker 9>can be. As someone put it to me, central bankers

0:18:13.040 --> 0:18:15.480
<v Speaker 9>have to be on Instagram, but they won't be effective.

0:18:15.560 --> 0:18:18.120
<v Speaker 1>But they still have to be there, and.

0:18:18.040 --> 0:18:21.960
<v Speaker 9>That's because there's this trade off between precision and accessibility

0:18:22.000 --> 0:18:24.639
<v Speaker 9>that they have and politicians, for example, don't have this.

0:18:25.240 --> 0:18:27.280
<v Speaker 1>So central bankers are technocrats.

0:18:27.440 --> 0:18:29.560
<v Speaker 9>They are precise, and this is what makes them good

0:18:29.600 --> 0:18:32.639
<v Speaker 9>at their job to set interest rates, but that is

0:18:32.680 --> 0:18:37.159
<v Speaker 9>also what makes them a bit less accessible to the

0:18:37.200 --> 0:18:40.720
<v Speaker 9>general public, a bit clumsier when trying to explain interest

0:18:40.840 --> 0:18:42.639
<v Speaker 9>rates to an average person.

0:18:42.840 --> 0:18:45.440
<v Speaker 2>I also thought it was interesting that it's the central

0:18:45.520 --> 0:18:48.639
<v Speaker 2>banks that you pick out, as you know, having an

0:18:48.720 --> 0:18:52.680
<v Speaker 2>Instagram feed. There aren't that many individual policy makers who do.

0:18:53.200 --> 0:18:55.520
<v Speaker 2>But there is a big exception of course, that's the

0:18:55.560 --> 0:19:00.119
<v Speaker 2>ECB's Christine Legarde. What is she using her Instagram feed for?

0:19:01.280 --> 0:19:04.000
<v Speaker 9>Well, that's right, and you know, Christine la guard ironically

0:19:04.119 --> 0:19:08.320
<v Speaker 9>has twice as many Instagram followers as the as the ECB.

0:19:09.320 --> 0:19:11.080
<v Speaker 9>And you know, I should add that the ECB is

0:19:11.080 --> 0:19:14.119
<v Speaker 9>one of the most active central banks on Instagram, So

0:19:14.200 --> 0:19:15.760
<v Speaker 9>you know the fact that Christine la Guard is more

0:19:15.800 --> 0:19:19.760
<v Speaker 9>successful than her own bank is quite telling. You know,

0:19:19.800 --> 0:19:23.560
<v Speaker 9>she's one of those rare central bankers that commands attention

0:19:23.720 --> 0:19:26.600
<v Speaker 9>to herself. She's not camera shy. She invites the camera.

0:19:27.560 --> 0:19:30.199
<v Speaker 9>So she has all these videos where she talks to

0:19:30.240 --> 0:19:33.119
<v Speaker 9>the camera and she, you know, says I met with

0:19:33.920 --> 0:19:36.320
<v Speaker 9>this friend and colleague of mine, or you know, I'm

0:19:36.359 --> 0:19:38.760
<v Speaker 9>in Lithuania right now for x or for for y,

0:19:40.080 --> 0:19:43.200
<v Speaker 9>and she you know, sometimes she would also post stuff

0:19:43.240 --> 0:19:46.240
<v Speaker 9>like a photo of the Notre Dame after the reopening,

0:19:46.400 --> 0:19:50.880
<v Speaker 9>so trying to give a bit of a glimpse into

0:19:50.920 --> 0:19:54.280
<v Speaker 9>her life as well. And I think that one of

0:19:54.320 --> 0:19:58.280
<v Speaker 9>the more telling examples of Christine La Guard's sort of

0:19:58.480 --> 0:20:01.080
<v Speaker 9>social media presence and relateationship with the media and with

0:20:01.119 --> 0:20:05.240
<v Speaker 9>the public is when she decided when the ECB decided

0:20:05.280 --> 0:20:07.359
<v Speaker 9>to cut interest rates for the first time in the

0:20:07.400 --> 0:20:11.280
<v Speaker 9>cycle last summer, and she wore a golden necklace saying

0:20:11.480 --> 0:20:14.400
<v Speaker 9>in spelling out in charge at the press conference when

0:20:14.400 --> 0:20:17.159
<v Speaker 9>she was announcing this decision, which obviously attracted lots of

0:20:17.200 --> 0:20:20.840
<v Speaker 9>cameras and a lot of people were speaking about this afterwards,

0:20:20.840 --> 0:20:24.760
<v Speaker 9>so I guess that was a successful, successful attempt to

0:20:24.960 --> 0:20:25.639
<v Speaker 9>reach the public.

0:20:26.680 --> 0:20:29.439
<v Speaker 10>This is Bloomberg Daybreak Europe, your morning brief on the

0:20:29.480 --> 0:20:32.520
<v Speaker 10>stories making news from London to Wall Street and beyond.

0:20:32.800 --> 0:20:36.800
<v Speaker 2>Look for us on your podcast feed every morning, on Apple, Spotify,

0:20:36.880 --> 0:20:38.840
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0:20:38.880 --> 0:20:41.920
<v Speaker 10>You can also listen live each morning on London DAB Radio,

0:20:41.960 --> 0:20:45.600
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0:20:45.720 --> 0:20:48.479
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0:20:48.520 --> 0:20:53.240
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0:20:53.480 --> 0:20:56.160
<v Speaker 10>I'm Caroline Hepca and I'm Stephen Carroll. Join us again

0:20:56.160 --> 0:20:58.760
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0:20:58.800 --> 0:21:02.480
<v Speaker 10>your day. Right here Bloomberg day Break Europe.

0:21:03.600 --> 0:21:06.000
<v Speaker 1>Mm hmm