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Speaker 1: This is Bloomberg Daybreak Europe for this Friday, the fourteenth

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Speaker 1: of April in London. Coming up today, Risky side Effects.

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Speaker 1: The boes Pill says the UK may see a positive

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Speaker 1: demand shop from its tight labor market as easy as

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Speaker 1: ABC For the ECB, a chorus of the central banks

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Speaker 1: policymakers call for more hikes. US left red faced after

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Speaker 1: a twenty one year old arrested over the biggest intel

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Speaker 1: leak in a decade, The cost of Ewise failed split,

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Speaker 1: a former TSB executive is find and more married couples

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Speaker 1: are now earning the same Those are the stories we're

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Speaker 1: looking at in today's papers. And I'm Leanne Gerens. Plus

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Speaker 1: the m is for Money LVMH becomes one of the

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Speaker 1: world's most valuable firms as aln No leaves Musk in

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Speaker 1: the dust. That's all straight ahead on Bloomberg Daybreak Europe.

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Speaker 1: The business news you need to start your day in

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Speaker 1: just one fifteen minute podcast on Apple, Spotify, the Bloomberg

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Speaker 1: Business App and everywhere you get your podcasts. Good morning,

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Speaker 1: I'm Stephen Carroll. Here are the stories we're following today.

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Speaker 1: The Bank of England's chief economist says, the UK economy

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Speaker 1: could see a boost to demand as workers have more

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Speaker 1: to spend. Qu pails as high savings and a tight

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Speaker 1: labor market could cause a positive shock to consumption. We

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Speaker 1: think there is a relatively strong relationship between unemployment and

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Speaker 1: precautionary saving, the fact that the outlook for unemployment is

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Speaker 1: less pessimistic. In other words, we don't expect the unemployment

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Speaker 1: a rise so fast. We think that is supportive of consumption.

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Speaker 1: So that's a space where if you like a positive

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Speaker 1: demand shock or positive demand dynamic at least maybe emerging.

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Speaker 1: Qu Pil's comments during a Market News video conference underlying

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Speaker 1: Britain's problem of workers not returning after the pandemic. He

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Speaker 1: added the Monetary Policy Committee is divided on whither the

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Speaker 1: economy needs higher unemployment to return inflation to target well.

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Speaker 1: The President of the Eurogroup, Pascal Dunna, who was echoed

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Speaker 1: some of Hugh pills fears as well. He told Bloomberg

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Speaker 1: that governments have to balance spending to protect jobs with

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Speaker 1: not pushing up prices. As vital as the role of

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Speaker 1: the ECB is and monitoring policy is been getting inflation down,

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Speaker 1: and we need to ensure that fiscal policy isn't boosting

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Speaker 1: demand exactly at the time of which we're trying to

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Speaker 1: get inflation down. I don't know who added, He's still

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Speaker 1: confident Euro Area inflation will get back to target. Prices

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Speaker 1: have been price rises have been slowing for the last

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Speaker 1: five months, but core inflation keeps hitting new records, highlighting

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Speaker 1: the tricky task facing the European Center Bank as it

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Speaker 1: decides how far to lift interest rates. The UK government

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Speaker 1: is considering proposals to pool private sector pension money in

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Speaker 1: a bid to unlock investment. Here's Bloomberg's You in Pots

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Speaker 1: with the details. The Chances says it's the bigger reform

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Speaker 1: that now needs to happen. Jeremy hunts UK pension funds

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Speaker 1: invest too heavily in assets with very low returns. Speaking

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Speaker 1: in Washington, the Chancellor says Britain should emulate Australia and Canada,

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Speaker 1: pulling money to invest in unlisted and potentially higher growth industries.

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Speaker 1: According to the thinktank New Financial, UK defined contribution pension

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Speaker 1: funds manage around five hundred and fifty billion pounds in assets.

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Speaker 1: The mooted reforms come as the UK seeks to mobilize

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Speaker 1: private money in response to the huge green energy subsidies

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Speaker 1: being made in the US and the EU. In London,

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Speaker 1: i'mum pots bloomblog Day britt Europe. China's megabanks are planning

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Speaker 1: bond sales worth around five point eight billion dollars. The

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Speaker 1: move kicks off a major funding push to comply with

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Speaker 1: global capital requirements by twenty twenty five. The issuance comes

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Speaker 1: at a shaky time for global debt markets after Swiss

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Speaker 1: regulators shocked investors with the wipeout of eighty one bonds

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Speaker 1: issued by Credit Suis, and the FBI has arrested a

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Speaker 1: twenty one year old Air National guardsman in connection with

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Speaker 1: the league of highly classified documents. Bloomberg's at Baxter has

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Speaker 1: the story Jack Deschara is classified as a cyber transport

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Speaker 1: system journeyman. Education requirement high school degree, driver's license, up

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Speaker 1: to eighteen months of on job training. How did he

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Speaker 1: have access to the documents? Pentagon spokesman Brigadier General Pat Ryder,

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Speaker 1: this was a deliberate criminal act, a violation of those

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Speaker 1: guidelines and White House spokes from when Korean Jean Pierre.

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Speaker 1: The Department of Defense has said they have taken steps

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Speaker 1: to further restrict access to sensitive information. It will be

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Speaker 1: interesting to gauge international response in the coming days. In

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Speaker 1: San Francisco, I'm at Baxter Bloomberg day Break Europe. Those

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Speaker 1: are our top stories on the program this morning. And

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Speaker 1: another story that caught my eye though, is the latest

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Speaker 1: on what we had seen to the share price reaction

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Speaker 1: on the luxury Giants LVMH yesterday, as the shares in

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Speaker 1: the company rose by five point seven percent by the

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Speaker 1: end of the day in Paris. It's Europe's largest company

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Speaker 1: by market value, but it's now actually made it into

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Speaker 1: the world's top ten as well. So a first quarter

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Speaker 1: sales beat for the company saw that boost in the shares.

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Speaker 1: It's rallied twenty nine percent in the year so far.

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Speaker 1: It's market capitalization four hundred and eighty six billion dollars

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Speaker 1: ranked as that the tenth most valuable company. If it

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Speaker 1: got to five hundred billion, that will be the first

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Speaker 1: time that a European company would have reached that milestone.

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Speaker 1: That's particularly good news for Bernard Arnaux, who is the

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Speaker 1: world's richest person as well, the man behind LVMH. His

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Speaker 1: fortune soared by twelve billion dollars on Thursday to almost

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Speaker 1: two hundred and ten billion dollars. That is, according to

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Speaker 1: the Bloomberg Billionaires List, Rich go on the terminal, if

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Speaker 1: you have it in front of you, that is a

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Speaker 1: change in you know, a pretty massive change year to date.

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Speaker 1: He's worth almost forty eight billion dollars more, widening the

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Speaker 1: gap between himself and Elon Musk. So Elon Musk now

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Speaker 1: worth a poultry one hundred and eight one hundred and

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Speaker 1: eighty billion dollars, acording to Bloomberg Billionaire's List. Always good

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Speaker 1: to have a check on Rich go on Friday morning

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Speaker 1: if you want to put put your weekend into perspective

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Speaker 1: before you get a wind down for the working week.

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Speaker 1: That is one of the stories that I have been

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Speaker 1: watching this morning. Let's talk more though about the prospect

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Speaker 1: for future rate rises, particularly from the European Central Bank.

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Speaker 1: We heard from a chorus of Governing Council members speaking

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Speaker 1: at the IMF Spring meetings at Joachim Nagle, Edward she Luna,

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Speaker 1: Robert Holtzman Mark and Kazaks all citing the need for

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Speaker 1: more action. Let's bring in our Chief rights correspondent Garfield

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Speaker 1: Ronalds for more on this story. At Garfield, is this

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Speaker 1: actually indicative of more hawkishness at the ECB or is

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Speaker 1: it in line with comments that we've heard previously from

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Speaker 1: these policymakers. Well, I think it's mostly in line with

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Speaker 1: the previous comments, and it's also a reflection of the

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Speaker 1: situation that Europe finds itself in relative to the rest

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Speaker 1: of the world. Inflation took off in Europe even before

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Speaker 1: it really took off in the US, and yet the

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Speaker 1: ECB was slower to respond than the FED and has

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Speaker 1: so far taken rates significantly less than the FED has.

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Speaker 1: You know, the ECB rates around three percent and the

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Speaker 1: FED rates almost at five percent, So that's that's a

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Speaker 1: big difference. And the FED has seen, you know, even

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Speaker 1: with core inflation higher than it would like, it has

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Speaker 1: seen a potential peak in that, whereas, if you're mentioning before,

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Speaker 1: the ECB has not seen an actual peak in European

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Speaker 1: core inflation. So with that backdrop and with what they've

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Speaker 1: said before, it's not a surprise I suppose that. I mean,

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Speaker 1: the big question is market's a position for a twenty

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Speaker 1: five basis point hike, but there are some ECB officials

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Speaker 1: who are saying they think that fifty basis points could

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Speaker 1: be necessary, And you know, when you look at that

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Speaker 1: context mentioned, they could well end up deciding on that,

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Speaker 1: especially depending on how the data developed between now and

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Speaker 1: when they meet. Yeah, I mean we're a couple of

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Speaker 1: weeks away, yes, from the next ECB meeting on the

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Speaker 1: fourth of May, so there is a more time and

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Speaker 1: some more space for that data to factor into it.

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Speaker 1: The sticky element of inflation is an interesting element of

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Speaker 1: that puzzle that they'll be looking at. Where should we

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Speaker 1: be thinking about it, what should be watching out for

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Speaker 1: between now and the next ECB ECB meeting in terms

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Speaker 1: of data that might point us in a clear direction

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Speaker 1: of whether or not that fifty basis points could actually

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Speaker 1: be likely. Well, I mean, the most obvious your point

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Speaker 1: is we will get fresh inflation data. We'll also get

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Speaker 1: sort of softer data surveys and so on, which can

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Speaker 1: show in particular our services industries coming back. That's been

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Speaker 1: a key concern everywhere, and for Europe to know more

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Speaker 1: even then for America, what's going on with oil prices

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Speaker 1: and therefore with energy prices in general could be really

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Speaker 1: key because Europe is very much overwhelmingly especially when it

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Speaker 1: comes to fossil fuels and importer of those energy goods.

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Speaker 1: So that's again something that feeds into inflation in and

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Speaker 1: of itself and inflation expectations. And those surveys, as you know,

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Speaker 1: they're going to give also a taste of how the

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Speaker 1: economy is traveling, how concerned the ECB might be about

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Speaker 1: the economy. And I think also European officials will be watching,

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Speaker 1: as we all will be, with interest what do America's

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Speaker 1: big banks say in their earnings report, Because the one

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Speaker 1: wild card for everybody is if it turns out that

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Speaker 1: the burst of banking turmoil that we had in March,

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Speaker 1: if that comes back in any way, if we get

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Speaker 1: fresh ructions in the global fame antal system, that's something

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Speaker 1: that everybody's going to have to take account of, including

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Speaker 1: European central bankers. Yeah, it's interesting you raise the point

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Speaker 1: about the different the potential divergence there between the FAD

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Speaker 1: and the ECB. As well. We had the PPI numbers

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Speaker 1: out of the US yesterday showing a slowdown in producer prices.

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Speaker 1: What should we take away from that when we're thinking

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Speaker 1: about where the FAD goes next. Well, I mean that's

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Speaker 1: the sort of thing that feeds through with more of

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Speaker 1: a lag. I think it help. It would help the

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Speaker 1: Fed to look to a situation where they raise in

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Speaker 1: May and then hold to assess. So much of what

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Speaker 1: your own Powell and John Williams and some of the

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Speaker 1: other Fed speakers have been turned about has been with

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Speaker 1: services inflation, also with what's going on with housing and

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Speaker 1: rent shelter costs. None of those really get a direct

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Speaker 1: feed through from from the PPI numbers, which is why,

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Speaker 1: for example, you know, we had a very strong reaction,

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Speaker 1: especially initially in the treasuries market when CPI came in

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Speaker 1: a little bit softer than had been expected on the headline.

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Speaker 1: We didn't get a strong reaction from the bond market

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Speaker 1: last night to PPI. In fact, yields ended up higher

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Speaker 1: on the day, although not significantly. So Yeah, I think

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Speaker 1: PPI is it's part of that background, part of that

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Speaker 1: context that has economists and investors expecting that inflation is

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Speaker 1: going to get fully under control in the US at

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Speaker 1: the Fed will be able to pause rates, but it's

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Speaker 1: no sort of a smoking gun for them to get

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Speaker 1: to actually decide to pause rates at the May meeting. Yeah, okay,

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Speaker 1: no smoking gun, Yes anyway, Garfield ronalds Arete Rates the

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Speaker 1: correspondent thank you very much for that. Up next, the

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Speaker 1: cast of Euise fails blas a former TSB exact find

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Speaker 1: and more married couples are now earning the same. Now

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Speaker 1: the paper review on Blue Birthday Break Europe. The news

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Speaker 1: you need to know from today's papers Blue, Berkley and

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Speaker 1: Garin's is here with us with more on those stories.

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Speaker 1: Let's start Lynne and The Times. EUI UK warned to

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Speaker 1: expect staff exits and cost cuts after failure of split.

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Speaker 1: That's the headline there. Yes, that's a headline in the

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Speaker 1: ft and this all comes after Ewy's global executive committee

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Speaker 1: announced earlier this week. It was on Tuesday that it

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Speaker 1: had ditched the plan known as Project Everest, and that

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Speaker 1: was following opposition from its US units. So Ey bosses

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Speaker 1: are now reportedly discussing cost cutting measures after the firm

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Speaker 1: dropped its plan to separate its consulting and audit division

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Speaker 1: Stephen So bosses have told partners to prepare for a

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Speaker 1: fresh cost cutting plan and also a stream of staff

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Speaker 1: departures now. An audio recording of a call from Anna

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Speaker 1: Anthony now she is a UK Managing partner for the

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Speaker 1: Financial Services was shared with the Financial Times, where she

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Speaker 1: did warn of these job cuts and hard times ahead.

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Speaker 1: Anthony also admitted to feeling disappointed and embarrassed by the

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Speaker 1: failure of the split, saying that e Y globally had

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Speaker 1: spent six hundred million dollars on this project which has failed.

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Speaker 1: The UK chair also told partners on the same call

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Speaker 1: that the brand had actually been damaged by the hole debarcle.

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Speaker 1: Do we know when the cost cutting might actually start? Yes?

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Speaker 1: So according to the FT it looks like the cost

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Speaker 1: cutting would begin in its new financial year, which does

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Speaker 1: start in July. So not too far off now, but

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Speaker 1: that is the prediction. Interesting reading the Final Times this morning,

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Speaker 1: Let's go to the Times newspaper. Next, former TSB executive

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Speaker 1: fined by the Bank of England over IT team meltdown.

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Speaker 1: So the boees fine tsb's former chief information officer, Carlos

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Speaker 1: Barka for failing to manage an IT migration in twenty eighteen. Now, Stephen,

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Speaker 1: this is a rare example of a fine for a

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Speaker 1: breach of UK rules aimed at making senior managers at

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Speaker 1: banks directly accountable for their actions. Now, this was actually

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Speaker 1: brought in after the financial crisis of two thousand and eight. Now,

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Speaker 1: we's been fined eighty one, six hundred and twenty pounds

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Speaker 1: and that's by Prudential Regulation Authority and this is for

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Speaker 1: this massive IT meltdown and the chaos actually affected five

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Speaker 1: point two million customers I remember as well as was

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Speaker 1: a very big story on social media of people not

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Speaker 1: being able to go into their accounts. No, absolutely, and

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Speaker 1: we do know that, you know, people's pin numbers were

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Speaker 1: knocked out. There was absolute chaos. Now, the calamity in

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Speaker 1: twenty eighteen was caused when the bank switched its IT

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Speaker 1: systems to a platform run by the Spanish bank Sabadell,

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Speaker 1: which bought the British business for one point seven billion

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Speaker 1: pounds back in twenty fifteen. But Stephen actually only returned

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Speaker 1: to usual in December twenty twenty one. That is a

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Speaker 1: significant time years to get things back on track. And

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Speaker 1: the question then, of course with the confidence around it

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Speaker 1: as well, and how do you rebuild out Leam. We're

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Speaker 1: going to the Wall Street Journal lex for an interesting headline.

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Speaker 1: I'm keen to know the detail. More married couples are

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Speaker 1: an equal pay if you do equal housework. Actually, now

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Speaker 1: that I've read it out, Lead, it doesn't sound that surprising,

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Speaker 1: Absolutely not surprising. I saw that headline and I was like, okay, okay,

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Speaker 1: says lead. But nearly a third of marriages now have

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Speaker 1: no primary breadwinner as women continued to make strides towards

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Speaker 1: greater equality both stephen in the workplace and also in

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Speaker 1: the home. So about thirty percent of opposite sex marriages

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Speaker 1: now have equal earnings. But also one of the main

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Speaker 1: drivers of the shift is younger woman just making more money.

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Speaker 1: But data from Pew Research Center did highlight that men

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Speaker 1: still remain the breadwinner of most marriages, even when the

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Speaker 1: woman earns as much as their husbands. They still put

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Speaker 1: in around two more hours a week on caregiving then

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Speaker 1: their husbands do, plus another two and a half hours

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Speaker 1: more on housework. I would have said five, but two

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Speaker 1: and a half is fine. And in those same relationships,

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Speaker 1: this is something that made me giggle a little bit.

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Speaker 1: Men spend Nettie three point five more hours on leisure

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Speaker 1: activities such as watching Telly or playing video games. Then

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Speaker 1: their wives do. Controversial, controversial, but you know there we

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Speaker 1: are all fair in love and war. As they say.

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Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 1: stories making news from London to Wall Street and beyond.

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Speaker 1: Look for us on your podcast feed every morning, on Apple, Spotify,

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Speaker 1: and anywhere you get your podcasts. You can also listen

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Speaker 1: live each morning on London DAB Radio, the Bloomberg Business app,

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Speaker 1: and Bloomberg dot Com. Our flagship New York station, is

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Speaker 1: also available on your Amazon Alexa device. Just say Alexa

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Speaker 1: Play Bloomberg eleven thirty. I'm Stephen Carroll. Join us again

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Speaker 1: tomorrow for all the news you need to start your

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Speaker 1: day right here on Bloomberg day Break Europe