1
00:00:03,440 --> 00:00:05,920
Speaker 1: This is Bloomberg Daybreak here for this Thursday, the ninth

2
00:00:05,920 --> 00:00:09,160
Speaker 1: of February in London. Coming up today from bad to worst,

3
00:00:09,200 --> 00:00:12,799
Speaker 1: Credit Suite reports grim results as the bank's turnaround fails

4
00:00:12,840 --> 00:00:17,040
Speaker 1: to gain traction. For cut Disney CEO announced his job

5
00:00:17,200 --> 00:00:19,760
Speaker 1: losses as he looks to make it the happiest place

6
00:00:19,800 --> 00:00:22,560
Speaker 1: on earth for investors. Could it be game over a

7
00:00:22,640 --> 00:00:26,080
Speaker 1: Microsoft's Activision deal. The odds on a successful tie up

8
00:00:26,160 --> 00:00:29,520
Speaker 1: grow longer as the UK regulators take game business love

9
00:00:29,600 --> 00:00:32,960
Speaker 1: equals for tax breaks. Twitter runs out of characters and

10
00:00:33,000 --> 00:00:37,200
Speaker 1: Boris Johnson makes five million pounds in less than five months.

11
00:00:37,440 --> 00:00:40,080
Speaker 1: Those are the stories we're looking at in today's papers,

12
00:00:40,120 --> 00:00:43,879
Speaker 1: and I'm leanne Gern's. Plus, the UK property market becomes

13
00:00:43,880 --> 00:00:46,640
Speaker 1: a bit of a fixer offer as sales and inquiries

14
00:00:46,680 --> 00:00:52,440
Speaker 1: full further, that's all straight ahead on Bloomberg Daybreak Europe

15
00:00:52,560 --> 00:00:55,800
Speaker 1: on d A B Digital Radio, London, Bloomberg eleven three

16
00:00:55,800 --> 00:01:01,040
Speaker 1: oh New York, Bloomberg Washington, d C, Bloomberg one six one, Boston,

17
00:01:01,160 --> 00:01:05,400
Speaker 1: Bloomberg nine sixties, San Francisco, cyrus XM Channel one nineteen

18
00:01:05,640 --> 00:01:08,800
Speaker 1: and around the world on Bloomberg Radio, dot Com and

19
00:01:08,880 --> 00:01:15,480
Speaker 1: VA The Bloomberg Business Set. Good morning, I'm Stephen Carroll

20
00:01:15,600 --> 00:01:18,080
Speaker 1: and I'm Caroline Hike. Here all the stories that we're

21
00:01:18,120 --> 00:01:22,320
Speaker 1: following today. Credit Swiss has reported a bigger than expected

22
00:01:22,440 --> 00:01:25,959
Speaker 1: loss in the fourth quarter and even bigger outflows. The

23
00:01:26,000 --> 00:01:28,560
Speaker 1: bank's on net loss of almost one point four billion

24
00:01:28,640 --> 00:01:31,680
Speaker 1: Swiss francs over the period versus estimates of just over

25
00:01:31,760 --> 00:01:35,520
Speaker 1: one point one billion. Massive outflows reported two of a

26
00:01:35,600 --> 00:01:39,880
Speaker 1: hundred and ten point five billion Swiss francs over the

27
00:01:40,000 --> 00:01:42,680
Speaker 1: three months. Credit sweets also announcing that it's buying the

28
00:01:42,760 --> 00:01:45,640
Speaker 1: Klin Group for a hundred and seventy five million dollars.

29
00:01:45,880 --> 00:01:49,680
Speaker 1: Looking ahead, the Swiss Bank guiding for a substantial full

30
00:01:49,760 --> 00:01:53,240
Speaker 1: year loss and says it's investment bank and wealth management

31
00:01:53,320 --> 00:01:56,560
Speaker 1: unit will be loss making in the first quarter of

32
00:01:56,600 --> 00:02:01,600
Speaker 1: this year. Meanwhile, Disney shares too late trading after the

33
00:02:01,600 --> 00:02:04,440
Speaker 1: company unveiled a five and a half billion dollar cost

34
00:02:04,520 --> 00:02:08,880
Speaker 1: cutting program, which does include seven thousand job losses. C A.

35
00:02:08,960 --> 00:02:11,880
Speaker 1: Bob Iger made the announcement. He returned to lead the

36
00:02:11,960 --> 00:02:15,640
Speaker 1: entertainment giant in November after his successor was fired. Tiger

37
00:02:15,720 --> 00:02:19,560
Speaker 1: says the business now needs to tighten its belt. We

38
00:02:19,639 --> 00:02:22,679
Speaker 1: are going to take a really hard look at the

39
00:02:22,880 --> 00:02:28,880
Speaker 1: cost for everything that we make, both across television and film,

40
00:02:29,200 --> 00:02:33,000
Speaker 1: because things in a very competitive world have just simply

41
00:02:33,000 --> 00:02:37,880
Speaker 1: gotten more expensive. And that's something that is already underway

42
00:02:37,919 --> 00:02:41,800
Speaker 1: here Bob Iger there. He was speaking to investors after

43
00:02:41,840 --> 00:02:45,560
Speaker 1: Disney delivered a set of upbeating financial results. First quarter

44
00:02:45,560 --> 00:02:49,440
Speaker 1: of revenue beat expectations, growing eight percent. Traders are ramping

45
00:02:49,480 --> 00:02:51,919
Speaker 1: up bets of the Federal Reserve will now raise rates

46
00:02:51,960 --> 00:02:55,240
Speaker 1: to six percent. That's nearly a percentage point higher than

47
00:02:55,280 --> 00:02:58,440
Speaker 1: the current consensus and comes after last week's red hot

48
00:02:58,520 --> 00:03:02,040
Speaker 1: jobs data. Federal that of Governor Christopher Waller says further

49
00:03:02,160 --> 00:03:05,280
Speaker 1: tightening will be needed to bring inflation down to targets.

50
00:03:05,600 --> 00:03:07,960
Speaker 1: We have further to go, and it might be a

51
00:03:07,960 --> 00:03:11,640
Speaker 1: long fight with interest rates higher for longer than some

52
00:03:11,800 --> 00:03:14,840
Speaker 1: are currently expecting. But it will not hesitate to do

53
00:03:15,040 --> 00:03:18,000
Speaker 1: what is needed to get my job done. While it

54
00:03:18,080 --> 00:03:19,840
Speaker 1: isn't the only Fed official to talk about the need

55
00:03:19,919 --> 00:03:22,560
Speaker 1: for future rate rises in the past twenty four hours,

56
00:03:22,560 --> 00:03:25,919
Speaker 1: that Federal Reserve Bank of Minneapolis President Neil cash Kari

57
00:03:26,360 --> 00:03:30,120
Speaker 1: also says more hikes will be needed to combat inflationary

58
00:03:30,160 --> 00:03:34,760
Speaker 1: wage growth. Now Microsoft's deal to buy Activision Blizzard is

59
00:03:34,800 --> 00:03:37,800
Speaker 1: being opposed by the UK's competition regulator, which says that

60
00:03:37,840 --> 00:03:41,440
Speaker 1: the sale could harm gamers blimbers you in pots reports.

61
00:03:41,640 --> 00:03:45,240
Speaker 1: The UK's Competition regulator says it has serious reservations over

62
00:03:45,360 --> 00:03:49,120
Speaker 1: microsoft sixty nine billion dollar takeover of video game company

63
00:03:49,200 --> 00:03:52,720
Speaker 1: Activision Blizzard. The Competition of Markets Authority says that one

64
00:03:52,720 --> 00:03:55,080
Speaker 1: way forward could be the sell off of the Blockbuster

65
00:03:55,200 --> 00:03:58,040
Speaker 1: Call of Duty franchise the same and throws into question

66
00:03:58,080 --> 00:04:00,520
Speaker 1: the viability of the whole deal, which is ready under

67
00:04:00,520 --> 00:04:04,960
Speaker 1: attack from US regulators. Yesterday, Activision shares slumped on the news,

68
00:04:05,000 --> 00:04:08,920
Speaker 1: putting them more than twenty percent below Microsoft's offer, suggesting

69
00:04:08,920 --> 00:04:11,600
Speaker 1: investors think it could now be game over for the deal.

70
00:04:12,040 --> 00:04:15,200
Speaker 1: In London, I'm Your Parts book Day Bret Europe. New

71
00:04:15,240 --> 00:04:18,440
Speaker 1: figures show the UK's housing market slipped further into hibernation

72
00:04:18,520 --> 00:04:22,160
Speaker 1: in January as buyers and sellers both stayed away. The

73
00:04:22,279 --> 00:04:25,520
Speaker 1: Royal Institution of Charted Surveyors says the lackluster activity led

74
00:04:25,560 --> 00:04:28,080
Speaker 1: to a further drop and property prices at the start

75
00:04:28,160 --> 00:04:30,880
Speaker 1: of the year. The findings add to evidence that prices

76
00:04:30,920 --> 00:04:33,520
Speaker 1: may be heading for the longest slump since the global

77
00:04:33,600 --> 00:04:37,880
Speaker 1: financial crisis in two thousand and eight, and Ukrainian President

78
00:04:38,000 --> 00:04:41,480
Speaker 1: Vladimir Zelenski is in Brussels today hoping to secure more

79
00:04:41,640 --> 00:04:45,320
Speaker 1: military aid in the fight against Russia's invasion. Zelenski will

80
00:04:45,360 --> 00:04:49,400
Speaker 1: address a meeting if European Union leaders. Yesterday, he received

81
00:04:49,480 --> 00:04:53,600
Speaker 1: a standing ovation in Westminster, where he appealed for fighter

82
00:04:53,720 --> 00:04:59,600
Speaker 1: jets and warned Putin that Ukraine won't be beaten, Russia

83
00:04:59,760 --> 00:05:05,400
Speaker 1: will loose, and we were really known the victory. The

84
00:05:05,640 --> 00:05:09,280
Speaker 1: victory will change the worlds and these will be a

85
00:05:09,440 --> 00:05:15,400
Speaker 1: change that the world has long needed. Speaking alongside Zelenski,

86
00:05:15,440 --> 00:05:17,960
Speaker 1: the Prime Minister she soon said that nothing is off

87
00:05:18,000 --> 00:05:21,159
Speaker 1: the table and that Britain had begun assessing if planes

88
00:05:21,279 --> 00:05:24,719
Speaker 1: could be sent to Ukraine. The UK, US and Germany

89
00:05:24,760 --> 00:05:28,839
Speaker 1: have all previously ruled out sending fighter jets to the country.

90
00:05:29,160 --> 00:05:32,120
Speaker 1: Those are our top stories this morning. Stephen Callen, I

91
00:05:32,160 --> 00:05:35,400
Speaker 1: mean that speech in Westminster Hall. I think everything about it,

92
00:05:35,560 --> 00:05:39,000
Speaker 1: both the way that Zelenski spoke, the setting itself, even

93
00:05:39,040 --> 00:05:41,280
Speaker 1: the way that the sunlight came into the room as

94
00:05:41,360 --> 00:05:44,200
Speaker 1: he was speaking. Such a moment, I think, and such

95
00:05:44,240 --> 00:05:49,640
Speaker 1: a poignant moment for not only of course, Zelenski himself,

96
00:05:49,680 --> 00:05:52,680
Speaker 1: only his second visit outside of Ukraine since the war started,

97
00:05:53,080 --> 00:05:55,760
Speaker 1: but also such a moment of reflection on the UK

98
00:05:56,000 --> 00:05:59,000
Speaker 1: support for Ukraine during this as well, really really beautifully

99
00:05:59,000 --> 00:06:02,000
Speaker 1: summed up by Bloomberg Opinions Tris Raphael and her piece

100
00:06:02,040 --> 00:06:04,880
Speaker 1: about it. Yeah. Absolutely, and this line shocked me. I

101
00:06:04,960 --> 00:06:07,200
Speaker 1: was listening to it in the car actually whilst I

102
00:06:07,279 --> 00:06:10,479
Speaker 1: was driving in Britain. The king is an air Force

103
00:06:10,560 --> 00:06:13,720
Speaker 1: pilot and in Ukraine today every air Force pilot is

104
00:06:13,760 --> 00:06:16,400
Speaker 1: a king. It is that kind of rhetoric I think

105
00:06:16,480 --> 00:06:20,480
Speaker 1: that has really struck such a tone in Britain. You

106
00:06:20,560 --> 00:06:22,800
Speaker 1: saw it with the MPs who were clapping almost the

107
00:06:22,839 --> 00:06:27,080
Speaker 1: whole way through the speech at Westminster. But it is

108
00:06:27,160 --> 00:06:30,599
Speaker 1: that appeal, that kind of understanding of the UK's history

109
00:06:30,680 --> 00:06:32,480
Speaker 1: and the things that the UK and the Ukraine has

110
00:06:32,480 --> 00:06:35,440
Speaker 1: in common. I think, yeah, it has made a big difference.

111
00:06:35,440 --> 00:06:38,080
Speaker 1: And look at a time more approaching that the first

112
00:06:38,240 --> 00:06:41,440
Speaker 1: year of this war and when there is talk and

113
00:06:41,520 --> 00:06:44,040
Speaker 1: worry about fatigue over whether or not you know, the

114
00:06:44,240 --> 00:06:46,479
Speaker 1: STASH community will continue to support Ukraine with the same

115
00:06:46,600 --> 00:06:52,800
Speaker 1: level of both military and also emotional support for I mean,

116
00:06:52,880 --> 00:06:55,440
Speaker 1: it was a moment and I think you know, a

117
00:06:55,480 --> 00:06:57,840
Speaker 1: moment of political rhetoric that will that will go down

118
00:06:57,920 --> 00:07:00,920
Speaker 1: in history for being being something that that remember about this.

119
00:07:01,040 --> 00:07:03,080
Speaker 1: Although having said that, there is a great debate now

120
00:07:03,200 --> 00:07:06,480
Speaker 1: because the main point of the Ukrainian present was that

121
00:07:06,560 --> 00:07:08,800
Speaker 1: he wanted fighter jets from Britain and other countries, and

122
00:07:08,920 --> 00:07:12,280
Speaker 1: that is still a very difficult topic, you know. The

123
00:07:12,600 --> 00:07:16,040
Speaker 1: potential for that, you know, leading to escalation is still

124
00:07:16,120 --> 00:07:20,280
Speaker 1: being debated here in the UK. But that is one

125
00:07:20,280 --> 00:07:23,080
Speaker 1: of the things that we were watching of course yesterday.

126
00:07:23,440 --> 00:07:26,600
Speaker 1: Coming up though next, business leaders are calling for tax

127
00:07:26,680 --> 00:07:30,320
Speaker 1: breaks from government. Twitter, we're on Doubt of characters and

128
00:07:30,480 --> 00:07:33,640
Speaker 1: Boris Johnson has made five million pounds in the last

129
00:07:33,760 --> 00:07:39,360
Speaker 1: five months. Now. The paper review on blue Bird day

130
00:07:39,400 --> 00:07:42,560
Speaker 1: Break Europe. The news you need to know from today's papers.

131
00:07:45,080 --> 00:07:47,280
Speaker 1: Leanne Garin's has been looking at the details of those

132
00:07:47,360 --> 00:07:50,240
Speaker 1: stories for us. Good morning to you, Leanne. Let's start

133
00:07:50,320 --> 00:07:53,720
Speaker 1: with the Times. The headline reads, bosses call on Chancellor

134
00:07:53,800 --> 00:07:56,800
Speaker 1: Hunt for more tax breaks to avoid recessions. Stephen, good

135
00:07:56,880 --> 00:07:59,680
Speaker 1: morning to you. Yes, indeed so. Jeremy Hunter is now

136
00:08:00,040 --> 00:08:03,080
Speaker 1: the pressure from the business a lobby group the cb

137
00:08:03,280 --> 00:08:06,840
Speaker 1: I to announce tax breaks for businesses during his spring

138
00:08:07,080 --> 00:08:10,000
Speaker 1: budget and they said this is a last chance to

139
00:08:10,120 --> 00:08:14,400
Speaker 1: help the economy avoid recession this year. The Chancellor is

140
00:08:14,440 --> 00:08:17,240
Speaker 1: going to present his budget on the fifteenth of March,

141
00:08:17,640 --> 00:08:20,880
Speaker 1: and according to the Times, the Confederation of British Industry

142
00:08:21,240 --> 00:08:24,240
Speaker 1: has also called on the government to provide better funding

143
00:08:24,360 --> 00:08:28,400
Speaker 1: for childcare and to increase green investment. Now they've really

144
00:08:28,480 --> 00:08:31,960
Speaker 1: focused on this. This is to ensure the UK doesn't

145
00:08:32,080 --> 00:08:35,599
Speaker 1: fall behind other G seven countries when it comes to

146
00:08:35,720 --> 00:08:39,640
Speaker 1: green investment. Corporate tax is also going to go up

147
00:08:39,679 --> 00:08:43,600
Speaker 1: to twenty six percent from April. This is a reversal

148
00:08:43,800 --> 00:08:47,640
Speaker 1: of quasi qua teen's attempt Caroline and Stephen if you

149
00:08:47,760 --> 00:08:51,920
Speaker 1: remember last year, to cut the rate to nine. Now

150
00:08:52,080 --> 00:08:55,520
Speaker 1: Tony Danger he's the director general of the c b I.

151
00:08:55,960 --> 00:08:59,640
Speaker 1: According to the paper, he initially welcomed Quarteg's mini budget

152
00:08:59,760 --> 00:09:04,439
Speaker 1: last September, calling the forty billion pound blitz of tax

153
00:09:04,559 --> 00:09:08,040
Speaker 1: cuts a turning point for the economy. I was really

154
00:09:08,080 --> 00:09:10,360
Speaker 1: struck by that actually when the c b I, you know,

155
00:09:10,520 --> 00:09:13,599
Speaker 1: as we are Bloomberg were watching then the unraveling of

156
00:09:13,760 --> 00:09:16,880
Speaker 1: the pound, of the pension market and so on, to

157
00:09:17,080 --> 00:09:20,040
Speaker 1: know that the actually the cb I had been um

158
00:09:20,760 --> 00:09:24,079
Speaker 1: I mean they were reasonably supportive. I would say, actually

159
00:09:24,080 --> 00:09:26,839
Speaker 1: if the government's plan for growth, at least that was

160
00:09:26,920 --> 00:09:29,199
Speaker 1: their focus. But look, it's not just the c B.

161
00:09:29,360 --> 00:09:32,160
Speaker 1: I also because the FT is reporting on that story,

162
00:09:32,600 --> 00:09:35,880
Speaker 1: the io D make UK. They also want the government

163
00:09:36,040 --> 00:09:38,680
Speaker 1: to do more on taxes, especially around the super deduction,

164
00:09:38,720 --> 00:09:41,040
Speaker 1: which is um that the tax break that you get

165
00:09:41,160 --> 00:09:43,760
Speaker 1: for buying equipment basically for a business that's set to

166
00:09:43,840 --> 00:09:46,920
Speaker 1: expire in March. And they're saying no, that's obviously one

167
00:09:46,960 --> 00:09:49,840
Speaker 1: area that the government could do something about. Yes, indeed,

168
00:09:49,920 --> 00:09:53,199
Speaker 1: and Caroline, as you say, the FT also reporting on this,

169
00:09:53,840 --> 00:09:57,000
Speaker 1: and these calls come as Bloomberg did report on the

170
00:09:57,120 --> 00:10:00,680
Speaker 1: losses of UK purchasing power the big US lost since

171
00:10:00,880 --> 00:10:05,320
Speaker 1: the nine seventies. So lots of different threads to the story,

172
00:10:05,720 --> 00:10:08,400
Speaker 1: but there is really a call from the business lobby

173
00:10:08,520 --> 00:10:12,560
Speaker 1: group to help the economy avoid recession. And we've seen

174
00:10:12,679 --> 00:10:15,480
Speaker 1: a lot of calls ahead of the spring budget to

175
00:10:15,600 --> 00:10:18,000
Speaker 1: make things a little bit easier as we do face

176
00:10:18,080 --> 00:10:20,800
Speaker 1: this cost of living crisis here in the UK. We've

177
00:10:20,840 --> 00:10:24,719
Speaker 1: got rising energy bills as well as food inflation. And

178
00:10:24,880 --> 00:10:28,439
Speaker 1: also we'll see that spring budget come through and I

179
00:10:28,559 --> 00:10:31,640
Speaker 1: wonder if there's going to be any little golden nuggets

180
00:10:31,679 --> 00:10:34,840
Speaker 1: in it. Okay, let's serench. The Guardian nextly on Twitter

181
00:10:34,960 --> 00:10:37,959
Speaker 1: says that users temporarily unable to post in the latest

182
00:10:38,040 --> 00:10:42,880
Speaker 1: outward since Mosque take over idle thumbs everywhere. Yes, indeed, Stephen,

183
00:10:42,960 --> 00:10:45,680
Speaker 1: So if you wanted to tweet last night from around

184
00:10:46,120 --> 00:10:50,200
Speaker 1: ten pm GMT, well you may have been informed by

185
00:10:50,280 --> 00:10:53,560
Speaker 1: the platform that you would hit your daily limit, even

186
00:10:53,600 --> 00:10:56,480
Speaker 1: if you hadn't tweeted all day. So, according to the Guardian,

187
00:10:56,520 --> 00:10:59,959
Speaker 1: the outage, which lasted about an hour, is the lay

188
00:11:00,120 --> 00:11:03,479
Speaker 1: just hit to the social media platform since the billionaire

189
00:11:03,559 --> 00:11:07,760
Speaker 1: Elon Musk did take over the company. Now the US

190
00:11:07,840 --> 00:11:11,800
Speaker 1: tech publication the Information is reporting must hold Twitter staff

191
00:11:11,880 --> 00:11:16,000
Speaker 1: to pause this new feature development, and this is to

192
00:11:16,200 --> 00:11:20,840
Speaker 1: maximize stability on the platform amid that outage. So they

193
00:11:20,920 --> 00:11:23,439
Speaker 1: were in a development phase at the moment when this

194
00:11:23,600 --> 00:11:27,520
Speaker 1: all did happen. Now, if you have the Twitter blue tick,

195
00:11:27,840 --> 00:11:29,600
Speaker 1: I don't have one. I don't know if Stephen has

196
00:11:29,640 --> 00:11:35,160
Speaker 1: one or Caroline hass Yes, the people who pay for them.

197
00:11:35,840 --> 00:11:39,079
Speaker 1: Apparently they were trying to develop a way that you

198
00:11:39,160 --> 00:11:45,920
Speaker 1: could put four thousand characters in your tweets. Is the

199
00:11:46,000 --> 00:11:52,840
Speaker 1: whole point of Twitter's I'm a little bit with Caroline

200
00:11:52,880 --> 00:11:54,760
Speaker 1: on this because I like Twitter because it's normally just

201
00:11:54,920 --> 00:11:59,440
Speaker 1: quite sure, it's more than a long newspaper article. Anyway,

202
00:11:59,640 --> 00:12:01,679
Speaker 1: I'll the and then I'll have to definitely check my

203
00:12:01,760 --> 00:12:05,040
Speaker 1: spelling of four thousand characters, which is pretty stressful. That's

204
00:12:05,360 --> 00:12:07,959
Speaker 1: that's an essay, frankly. Yes, indeed, okay, let's add the

205
00:12:08,120 --> 00:12:12,600
Speaker 1: daily limit on our tweets is currently set at two thousand. Yes,

206
00:12:12,640 --> 00:12:15,880
Speaker 1: you've got characters. Okay, let's let's go to the finantal times. Then,

207
00:12:15,880 --> 00:12:19,360
Speaker 1: Boris Johnson earned nearly five million pounds leaving office. Well,

208
00:12:19,440 --> 00:12:21,600
Speaker 1: to make this clear, it was just shy of five

209
00:12:21,679 --> 00:12:24,160
Speaker 1: million pounds. He has declared an income of four point

210
00:12:24,240 --> 00:12:27,199
Speaker 1: eight million pounds, so according to the FT, this is

211
00:12:27,360 --> 00:12:31,480
Speaker 1: fifty times this salary of eighty four thousand, one hundred

212
00:12:31,480 --> 00:12:33,880
Speaker 1: and forty four pounds he does earn as a back

213
00:12:34,080 --> 00:12:37,400
Speaker 1: bench MP. So I hear you all asking me how

214
00:12:37,480 --> 00:12:39,920
Speaker 1: has he made all this money? According to the FT,

215
00:12:40,120 --> 00:12:43,200
Speaker 1: Boris Johnson did declare an advanced payment of two point

216
00:12:43,320 --> 00:12:47,599
Speaker 1: five million pounds from New York's Harry Walker Agency for

217
00:12:47,679 --> 00:12:53,040
Speaker 1: a number of future speaking arrangements. Also HarperCollins has paid

218
00:12:53,120 --> 00:12:57,080
Speaker 1: him a huge amount of five hundred and ten thousand pounds. Now,

219
00:12:57,160 --> 00:13:00,360
Speaker 1: this is an advance for his memoir. We know that

220
00:13:00,440 --> 00:13:03,360
Speaker 1: he's going to be releasing that about his three years

221
00:13:03,440 --> 00:13:08,320
Speaker 1: in office during the pandemic and during Brexit. He's also

222
00:13:08,440 --> 00:13:14,040
Speaker 1: made a phenomenal amount of money and that's due to speeches. Yes, okay,

223
00:13:14,160 --> 00:13:15,800
Speaker 1: I think that's very interesting. There was a big guessing

224
00:13:15,880 --> 00:13:18,320
Speaker 1: game about how much the Prime Minister's memoir was going

225
00:13:18,440 --> 00:13:20,839
Speaker 1: to fetch, so I'm quite curious that it was a

226
00:13:20,880 --> 00:13:24,440
Speaker 1: half a million advance. Interesting. Okay, let's get more details

227
00:13:24,440 --> 00:13:26,480
Speaker 1: on the earnings from Credit sweee Now. Remember exacitor at

228
00:13:26,520 --> 00:13:29,840
Speaker 1: large Francy Lackward joins us from Zurich. Good morning to you, Francine.

229
00:13:30,080 --> 00:13:32,520
Speaker 1: Now in advance of today, these results have been called

230
00:13:32,559 --> 00:13:34,880
Speaker 1: the most important in Credit Sweezes a hundred and sixty

231
00:13:34,920 --> 00:13:37,599
Speaker 1: seven year history. There's lots of big numbers in this

232
00:13:37,920 --> 00:13:41,559
Speaker 1: at what stood out for you? So, first of all,

233
00:13:41,600 --> 00:13:43,719
Speaker 1: you're writing you, but I do feel like every time

234
00:13:43,800 --> 00:13:46,200
Speaker 1: they have earnings, because this bank has gone really from

235
00:13:46,240 --> 00:13:49,319
Speaker 1: crisis to crisis and we worry about whether they will

236
00:13:49,360 --> 00:13:51,800
Speaker 1: ever be profitable, that it is always like these are

237
00:13:51,920 --> 00:13:54,760
Speaker 1: the make or break earnings. Now partly it's true. At

238
00:13:54,840 --> 00:13:56,959
Speaker 1: the same time, the chief executive did put out of

239
00:13:57,040 --> 00:13:59,600
Speaker 1: three year plans, so maybe some investors will give him

240
00:13:59,640 --> 00:14:01,640
Speaker 1: a bit more time to try and get this house

241
00:14:01,679 --> 00:14:04,319
Speaker 1: in order. I would focus on three things today. First

242
00:14:04,360 --> 00:14:07,200
Speaker 1: of all, the widely telegraphed the fact that they would

243
00:14:07,200 --> 00:14:10,559
Speaker 1: buy this advisory boutique for Michael Klein. I've been following

244
00:14:11,080 --> 00:14:14,280
Speaker 1: him for years. He's an extraordinary banker. He was the

245
00:14:14,400 --> 00:14:17,040
Speaker 1: rainmaker at City Group and they're now giving him part

246
00:14:17,080 --> 00:14:19,440
Speaker 1: of this advisory firm. So they're buying the boutique, giving

247
00:14:19,480 --> 00:14:22,120
Speaker 1: him the advisory firm, and that was for seventy five

248
00:14:22,760 --> 00:14:25,400
Speaker 1: million pounds. They were quite secretive about how many people

249
00:14:25,440 --> 00:14:27,800
Speaker 1: he's bringing with him, but we think that they're about

250
00:14:27,840 --> 00:14:29,800
Speaker 1: forty people with him, so they get about four million

251
00:14:29,920 --> 00:14:33,840
Speaker 1: each um. There have been concerns about, you know, conflicts

252
00:14:33,840 --> 00:14:37,520
Speaker 1: of interest, which the chief executive has flatly denied. That's

253
00:14:37,560 --> 00:14:40,480
Speaker 1: one thing. We also have outflows. I think management I

254
00:14:40,520 --> 00:14:43,560
Speaker 1: pretty sweets were possibly hoping that the outflows would have

255
00:14:43,640 --> 00:14:47,200
Speaker 1: stopped for now. Uh, the number of clients has not diminished,

256
00:14:47,240 --> 00:14:49,240
Speaker 1: but people are not ready to put extra money in

257
00:14:49,560 --> 00:14:52,040
Speaker 1: and then the third one. I think, look, if you

258
00:14:52,120 --> 00:14:54,600
Speaker 1: look at that, you know, wider than expected loss at

259
00:14:54,640 --> 00:14:58,560
Speaker 1: one point three nine billion francs. Again, that's a disappointment.

260
00:14:58,600 --> 00:14:59,960
Speaker 1: So it depends on what they do in the next

261
00:15:00,080 --> 00:15:03,520
Speaker 1: three months to make sure that they retain talent. Yeah. Absolutely,

262
00:15:03,640 --> 00:15:05,640
Speaker 1: I mean, what did we learn about the kind of

263
00:15:05,720 --> 00:15:07,800
Speaker 1: restructuring and all of this, and how it's kind of

264
00:15:07,840 --> 00:15:10,440
Speaker 1: progressing As you say that that figure of the record

265
00:15:10,520 --> 00:15:13,760
Speaker 1: outflows is quite an almost hundred and ten and a

266
00:15:13,840 --> 00:15:18,600
Speaker 1: half billion Swiss franks in just that quarter. I think

267
00:15:18,600 --> 00:15:21,200
Speaker 1: it's going kind I think it's going okay. I don't think,

268
00:15:21,600 --> 00:15:25,200
Speaker 1: you know, they can cry victory yet and they're not

269
00:15:25,520 --> 00:15:28,840
Speaker 1: good results. So I think it depends a lot on

270
00:15:29,160 --> 00:15:32,600
Speaker 1: how much time investors will give them to restructure. So

271
00:15:32,880 --> 00:15:35,480
Speaker 1: the firm did say they already completed, you know, the

272
00:15:35,560 --> 00:15:38,800
Speaker 1: first closing of the Apollo SPG transaction. Now this is

273
00:15:38,880 --> 00:15:41,360
Speaker 1: something that we had talked in the past, so that okay,

274
00:15:41,440 --> 00:15:43,880
Speaker 1: they've done, we can move on if you'll get earnings.

275
00:15:43,960 --> 00:15:46,520
Speaker 1: There was a revenue decline in the investment bank during

276
00:15:46,560 --> 00:15:49,160
Speaker 1: the fourth quarter that was much worse than expected. So

277
00:15:49,240 --> 00:15:51,520
Speaker 1: if you look at the turnaround, were what four months

278
00:15:51,600 --> 00:15:54,160
Speaker 1: in Remember in October we were talking about whether this

279
00:15:54,240 --> 00:15:56,720
Speaker 1: bank could even survive because of all the rumors out there.

280
00:15:57,280 --> 00:16:00,840
Speaker 1: So they're not doing great, but they're not doing terribly either.

281
00:16:00,920 --> 00:16:03,720
Speaker 1: I'll be interested to see how the share price opens

282
00:16:04,400 --> 00:16:07,000
Speaker 1: when the markets open. I think it's a little bit

283
00:16:07,000 --> 00:16:09,560
Speaker 1: of a wait and see. Actually, I think they you know,

284
00:16:09,640 --> 00:16:11,800
Speaker 1: there weren't any big surprises in the earnings. A lot

285
00:16:11,880 --> 00:16:15,520
Speaker 1: of this was telegraphed. Unclear whether they can retain talent,

286
00:16:15,640 --> 00:16:17,240
Speaker 1: but I think there is belief at the top of

287
00:16:17,320 --> 00:16:20,480
Speaker 1: the bank that will be able to pay bonuses to

288
00:16:20,880 --> 00:16:23,200
Speaker 1: the people that do, you know, do the good job.

289
00:16:23,320 --> 00:16:25,000
Speaker 1: But the outlook does not look good. You know, let's

290
00:16:25,000 --> 00:16:27,760
Speaker 1: not mince our words. They're guiding for a substantial for

291
00:16:27,880 --> 00:16:30,880
Speaker 1: your loss. And so longer term, what happens to this

292
00:16:30,960 --> 00:16:32,960
Speaker 1: bank maybe in two thousand and four and two thousand

293
00:16:32,960 --> 00:16:35,920
Speaker 1: and five one, can they actually be reliably profitable? I

294
00:16:35,920 --> 00:16:39,440
Speaker 1: think it's a key question. This is Bloomberg Daybreak Europe,

295
00:16:39,480 --> 00:16:42,200
Speaker 1: your morning brief on the stories making news from London

296
00:16:42,280 --> 00:16:44,880
Speaker 1: to Wall Streets and beyond. Look for us on your

297
00:16:44,920 --> 00:16:48,880
Speaker 1: podcast speed every morning, on Apples, Spotify, and anywhere else

298
00:16:48,920 --> 00:16:51,320
Speaker 1: you get your podcasts. You can also listen live each

299
00:16:51,400 --> 00:16:54,280
Speaker 1: morning on London D A B Radio, the Bloomberg Business app,

300
00:16:54,360 --> 00:16:57,480
Speaker 1: and Bloomberg dot Com. Our flagship New York station is

301
00:16:57,520 --> 00:17:00,840
Speaker 1: also available on your Amazon Alexa device. Is just Say

302
00:17:00,920 --> 00:17:05,640
Speaker 1: Alexa played Bloomberg. I'm Caroline Heitka and I'm Stephen Carroll.

303
00:17:05,720 --> 00:17:08,040
Speaker 1: Join us again tomorrow morning for all the news you

304
00:17:08,119 --> 00:17:11,000
Speaker 1: need to start your day right here on Bloomberg Daybreak

305
00:17:11,040 --> 00:17:11,359
Speaker 1: Europe