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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: DAYBAC podcast, available every morning on Apple, Spotify or wherever

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Speaker 1: you listen. It's Friday, the eighth of March here in London.

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Speaker 1: I'm Caroline Hipki and I'm Stephen Carroll.

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Speaker 2: Coming up today. In his State of the Union speech,

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Speaker 2: Joe Biden warns democracy is in danger as he tries

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Speaker 2: to prove he's fit to serve four more years.

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Speaker 1: Cutting words. Both jer Own Powell and Christine Legard say

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Speaker 1: interest rate moves are close.

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Speaker 2: Plus the women taking on big tech in Europe. We

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Speaker 2: meet those enforcing that you use data protection rules.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 2: Joe Biden has used his State of the Union speech

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Speaker 2: to breathe life into his re election campaign as he

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Speaker 2: warns that democracy is under threat in the United States.

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Speaker 2: The US president painted his predecessor, Donald Trump, was responsible

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Speaker 2: for those perils despite never say his name.

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Speaker 3: My purpose tonight is to wake up the Congress and

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Speaker 3: alert the American people that this is no ordinary moment either,

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Speaker 3: not since President Lincoln and the Civil War have freedom

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Speaker 3: and democracy that under solid at home as there are today.

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Speaker 2: Biden's spirit at speech, tried to put to rest fears

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Speaker 2: that he's too old to run for office again. He

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Speaker 2: also spoke of heartbreaking devastation in Gaza. Undnounced military plans

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Speaker 2: to unilaterally construct a new peer to deliver humanitarian aid

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Speaker 2: to Palestinians.

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Speaker 1: Jerome Powell says the faird is getting closer to being

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Speaker 1: confident enough to cut interest rates. The Central Bank chair

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Speaker 1: told the Senate Banking Committee that policymakers are still waiting

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Speaker 1: for more certainty than inflation is coming down.

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Speaker 4: I think we're in the right place, which is we're

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Speaker 4: waiting to see we're waiting to become more confident than

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Speaker 4: inflation is moving sustainably at two percent. When we do

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Speaker 4: get that confidence, and we're not far from it, it'll

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Speaker 4: be appropriate to begin to dial back the level of

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Speaker 4: restriction so that we don't, you know, drive the economy

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Speaker 4: into recession, rather than normalizing policy as the economy gets

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Speaker 4: back to normal.

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Speaker 1: Powell's comments marked the second time he suggested the FED

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Speaker 1: is close to cutting During his semi annual monetary policy

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Speaker 1: testimony on Wednesday, he said that it would likely be

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Speaker 1: appropriate to cut rates at some point this year. Two

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Speaker 1: year treasury yields fell following Powell's comments, while traders boosted

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Speaker 1: bets on a June rate cut.

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Speaker 2: I mean, while the European Central Bank President Christine lagud

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Speaker 2: is also indicating rate cuts could be on the horizon.

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Speaker 2: Speaking after officials left rates unchanged, she said the monetary

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Speaker 2: picture will become clearer in June.

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Speaker 5: We clearly need more evidence, more data, and we know

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Speaker 5: that this data will come in the next few months.

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Speaker 5: We will know a little more in April, but we

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Speaker 5: will know a lot more in June.

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Speaker 2: ECB's Christina guard speaking there, the Central Bank's latest quarterly

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Speaker 2: outlook revised the twenty twenty five inflation four cast down

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Speaker 2: to two percent, under penning investor expectations of a first

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Speaker 2: rate cut in June.

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Speaker 1: Banks and financial firms should be banned from using non

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Speaker 1: disclosure agreements in sexual harassment disputes. That's one finding from

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Speaker 1: a parliamentary investigation called Sexism in the City, which found

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Speaker 1: a quote shocking prevalence of sexual harassment and bullying still

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Speaker 1: in financial services in the UK. The Chair of the

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Speaker 1: Treasury Select Committee, Harriet Baldwin, led the inquiry. She tells

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Speaker 1: us progress on gender diversity and workplace culture has moved

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Speaker 1: at a snail's pace.

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Speaker 6: For firms that don't get this right. You know, it

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Speaker 6: can actually cause businesses to unravel and actually potentially be

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Speaker 6: a systemic risk, and there have been some high profile

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Speaker 6: cases where you could see that that might be the case.

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Speaker 1: Baldwin cited od Asset Management as an example of a

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Speaker 1: company brought down by a lack of diversity. Three more

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Speaker 1: All Women brought forward new allegations this week, on top

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Speaker 1: of existing sexual misconduct lawsuits against Crispin Ody and his fund.

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Speaker 1: Odi has denied all past allegations. A recent company filings

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Speaker 1: jess Odi could be planning a comeback, stating he is

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Speaker 1: quote exploring alternative business opportunities.

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Speaker 2: And Taylor Swift's Eras tour has prompted economists to upgrade

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Speaker 2: their growth forecast for Singapore as a series of shows

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Speaker 2: there are set to boost the country's economy.

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Speaker 7: Growth.

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Speaker 2: Product likely grew by two point nine percent in the

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Speaker 2: three months to the end of March. That was the

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Speaker 2: quickest pace in six quarters, according to Median estimates and

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Speaker 2: a Bloomberg survey. Annual growth expectations were also raised to

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Speaker 2: two and a half percent, closer to the government's three

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Speaker 2: percent forecast for this year. The singer played six shows

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Speaker 2: up until tomorrow night, in fact, and they'll bring in

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Speaker 2: three hundred to fordred million Singaporean dollars. Well, in a moment,

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Speaker 2: we'll get more details on the State of the Union

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Speaker 2: speech and bring you our story about the women taking

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Speaker 2: on big tech in Europe. Another piece that caught her

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Speaker 2: eye this morning from mar Blomberg Opinion colleague Lara Williams,

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Speaker 2: writing ahead of this weekend, and if you're going to

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Speaker 2: ask her his.

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Speaker 1: Watch, yes, the Bingo card, Yes.

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Speaker 2: Yes, exactly, I've seen very little that's actually in the

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Speaker 2: Oscars nominalis list. I've just realized maybe that's my weekend homework.

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Speaker 2: But Laura Williams has been asking a writing rather about

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Speaker 2: an interesting question that maybe or should be asked on

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Speaker 2: the red carpet, And that's people's the question of sustainability

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Speaker 2: in what people are wearing and how that should feature

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Speaker 2: in the conversation.

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Speaker 1: Okay, so not just you know, where's the answer from

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Speaker 1: who are you ring? It is what and how sustainable.

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Speaker 1: There's a nice chart in this piece which I actually

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Speaker 1: hadn't understood, to be honest, that leather goods apparently and

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Speaker 1: shoes make up a much large environmental impact than other

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Speaker 1: lines of business for these huge fashion conglomerates. Of course,

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Speaker 1: all the big names curring and so many others that

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Speaker 1: will be on that red carpet. But yes, it's the

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Speaker 1: leather goods and then shoes and everything else besides much

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Speaker 1: much smaller environmental impact paths. I should have understood that.

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Speaker 2: Leather and it's something that Lara talks about as well

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Speaker 2: in the pieces that it's you can just miss everything

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Speaker 2: that's happening on the red carpets being quite frivolous, but

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Speaker 2: it has been a place that started conversations about sustainability

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Speaker 2: in fashions. Talks about Emma Watson's wearing that carbon kliinate

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Speaker 2: fit that was made out of plastic recycled battles in

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Speaker 2: the met gal and that was twenty sixteen, and that

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Speaker 2: started a conversation about how that was going as well.

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Speaker 2: So hopefully people have been picking sustainable shoes ahead of

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Speaker 2: the askers.

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Speaker 1: Yeah, absolutely, all right, I hope you enjoy that if

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Speaker 1: you're watching it every the weekend. Right, Well, let's think

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Speaker 1: about something else that happened in the US, shall we

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Speaker 1: President Biden's State of the Union address. It hit out

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Speaker 1: at his likely rival for the presidency. In November, Donald Trump,

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Speaker 1: although not by name Biden, talked about the threat of

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Speaker 1: freedom and democracy, his achievements in his first term, and

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Speaker 1: he promised to restore abortion rights. But more voters than

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Speaker 1: ever are concerned about President Biden's age. Joining us now

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Speaker 1: to discuss is our Washington editor John Harney, John, Good morning.

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Speaker 1: What criticisms did Joe Biden make of Donald Trump?

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Speaker 8: Well, they it was a pretty wide range from uh,

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Speaker 8: the January sixth insurrection and the threatened democracy to Ukraine

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Speaker 8: and the lack of you know, the lack of assistance

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Speaker 8: further resistance so far for that country, and and also

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Speaker 8: the border bill that Donald Trump said should not pass

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Speaker 8: that Republicans should not vote for, as well as abortion

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Speaker 8: abortion rights, and also also taxes, which is often a

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Speaker 8: Republican issue. He criticized Trump's tax overhaul of twenty seventeen,

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Speaker 8: saying it was benefited the rich and not the middle class.

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Speaker 8: And the speech was clearly aimed at the middle class.

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Speaker 8: I mean it was to those who really will decide,

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Speaker 8: to those who decide the election.

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Speaker 2: John, was this speech a success for Joe Biden given

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Speaker 2: the questions that are being asked about whether he's fit

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Speaker 2: to run for another four years.

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Speaker 8: Well, like everything else in this country, that the answer

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Speaker 8: falls largely along party lines. However, he did seem to

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Speaker 8: have quite a bit of energy and the speech was

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Speaker 8: pretty focused and combative as you as you said earlier,

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Speaker 8: he clearly indicated it was clear that Donald Trump himself

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Speaker 8: will be an issue, maybe the issue of the Democratic

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Speaker 8: campaign going forward, and certainly the reaction of Senators, Congress

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Speaker 8: people others. As he left, you know, he spent nearly

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Speaker 8: as much time I would say, coming in and leaving

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Speaker 8: the chamber as he did making the speech, because I

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Speaker 8: don't forget he's a creature, you know, he spent much

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Speaker 8: of his career in the Capitol.

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Speaker 1: Yeah, what did Biden then taut as his successes and

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Speaker 1: what's the second term agenda? Because you know we mentioned

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Speaker 1: abortion rights is also the issue around IVF. There are

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Speaker 1: a lot of It's quite symbolic, isn't it the people

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Speaker 1: that the president brings into the chamber for this sort

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Speaker 1: of big annual speech. What did Biden tout does his successes?

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Speaker 8: Well, I mean he also had Prime Minister of Sweden

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Speaker 8: and the Sweden of course, just don't join natel on Thursday,

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Speaker 8: and that's part of his continuing effort to strengthen the

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Speaker 8: NATO alliance. And that came of course with warnings that

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Speaker 8: Vladimir Putin could not be ignored and that his his

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Speaker 8: aggression would not stop at Ukraine. And also, you know,

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Speaker 8: and it was also you know that the taxes taxes

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Speaker 8: on corporations, higher taxes on corporations and the wealthy, which

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Speaker 8: you know he has, which he ran on before in

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Speaker 8: twenty twenty, and which also and given that the House

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Speaker 8: is now in Republican hands, stands a very little chance

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Speaker 8: of passage, but it still is a marker. It shows

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Speaker 8: how he differentiates differentiates himself from the Republicans and Donald Trump.

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Speaker 2: Yeah, and moves us into another gear for the US

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Speaker 2: election campaign. I had John Harney in Washington. Thank you

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Speaker 2: so much for bringing up to date on the state

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Speaker 2: of the Union speech.

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Speaker 1: Now let's turn our attention to Europe. Data protection law

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Speaker 1: has seen huge change over the past decade, with Europe

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Speaker 1: leading the way by imposing tough new rules, the now

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Speaker 1: famous GDPR that's become a global standard. European data watchdogs

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Speaker 1: received unprecedented finding powers with the new rules. When they

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Speaker 1: kicked in almost six years ago, and a lot of

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Speaker 1: women who traditionally worked in data protection were propelled into

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Speaker 1: leading positions as regulators in charge of ensuing compliance for

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Speaker 1: the world's biggest tech firms. Joining us now is our

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Speaker 1: EU Legal reporter Stephanie Bodoni on this special feature story. Stephanie,

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Speaker 1: Welcome to the program. Europe seems to have become a

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Speaker 1: bit of a role model in making sure people's data

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Speaker 1: is protected by the world's biggest tech firms. Why is that.

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Speaker 7: Hi? Good morning?

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Speaker 8: Yeah.

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Speaker 7: I mean its GDPR really changed a lot of It

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Speaker 7: kicked in in May twenty eighteen, and overnight, these data

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Speaker 7: protection regulators in Europe that really had very very small powers,

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Speaker 7: I mean really no powers at all. Fines could go

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Speaker 7: up to one hundred and fifty thousand euros maximum by some,

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Speaker 7: and some even had no powers at all to issue fines.

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Speaker 7: GDPR suddenly allowed all of these regulators, there's about thirty

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Speaker 7: that imposed GDPR to give fines up to four percent

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Speaker 7: of a company's annual turnover. So it made a huge change.

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Speaker 7: And what happened is that suddenly companies were very much

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Speaker 7: more aware that there was something happening here that they

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Speaker 7: had to be taking measures against and four.

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Speaker 2: We're talking about GDPR being enforced now for almost six years, Stephanie,

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Speaker 2: how well is it working? How has it been applied?

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Speaker 7: Well, you would think that GDPR, given the powers that

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Speaker 7: it has, is quite a strong tool that regulators now

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Speaker 7: have in the hands. But the problem is today, I mean,

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Speaker 7: it's working quite well, but the problem. One of the

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Speaker 7: problems is that it is being enforced by thirty regulators

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Speaker 7: and there are certain rules, procedural rules that guide how

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Speaker 7: they need to do it. So let's say you have

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Speaker 7: a regulator getting complaints against Meta and they you know,

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Speaker 7: about data infringements and so on, And how it works

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Speaker 7: is that it's the regulator where the company has its

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Speaker 7: EU base that is in charge of enforcing GDPR. So

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Speaker 7: in the case of Meta, that is the Irish Data

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Speaker 7: Protection Commission where Meta has its EU base. But the

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Speaker 7: problem is the Irish That Protection Regulator cannot impose or

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Speaker 7: take decisions on its own, so it can do the probe,

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Speaker 7: but to get a final decision it needs to have

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Speaker 7: the backing of all the other regulators that are part

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Speaker 7: of the system, so the other twenty nine and that

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Speaker 7: sometimes can lead to some tensions and they're trying to

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Speaker 7: work on it with the help of irregulators, but it's

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Speaker 7: it's a bit clunky so far.

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Speaker 1: Your piece is also a really interesting profile because some

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Speaker 1: of the main regulators in charge in this sector of

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Speaker 1: raining in big tech companies are women.

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Speaker 7: Yes, that's something that kind of I mean, I've been

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Speaker 7: covering this area for a very long time and I've

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Speaker 7: seen really the evolution. And I remember when I started

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Speaker 7: looking into their protection issues more than ten years ago,

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Speaker 7: a lot of the regulators enforcing it, i mean, still

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Speaker 7: rather toothless regulators were men. And suddenly I realized that

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Speaker 7: around twenty fourteen, so about ten years ago, more and

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Speaker 7: more female regulators were appointed to these posts. That are

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Speaker 7: not all former lawyers, but they are all people who

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Speaker 7: have kind of worked in those areas. And obviously one

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Speaker 7: of the biggest names that some people who have been

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Speaker 7: following this area might know is Helen Dixon. She was

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Speaker 7: the Irish State Protection regulator until last month, and she'd

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Speaker 7: been in the post for about ten years, and she's

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Speaker 7: been the subject of a lot of criticism, but at

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Speaker 7: the same time also has had the biggest power because

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Speaker 7: basically almost all of Silicon Valley's biggest tech firms have

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Speaker 7: an EU base in Ireland. So with GDPR, she her

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Speaker 7: office were propelled overnight into being the lead watchtock in

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Speaker 7: the EU for all these big tech firms and of

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Speaker 7: course that created a lot of attention going towards Ireland,

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Speaker 7: a lot of criticism. But she's also issued some of

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Speaker 7: the biggest fines around two point eight billion fines in

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Speaker 7: about ten years, I mean, which is a lot looking

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Speaker 7: at how before they had no powers really.

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Speaker 2: Ad on Okay, Stephanie, but Onny our illegal reporter, thank

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Speaker 2: you for bringing us details of that story. You can

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Speaker 2: read more on the Bloomberg website Meet the women taking

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Speaker 2: on big tech in Europe, of course on Bloomberg dot

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Speaker 2: com and on the terminal as well.

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Speaker 5: Well.

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Speaker 2: Let's turn into one of our top interviews. Now it's

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Speaker 2: International Women's Day. But do women in the city feel

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Speaker 2: celebrated and you report into sexism in the City of

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Speaker 2: London has found little changed in the past five years.

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Speaker 1: Yeah. I sat down with the Treasury Select Committee Chair

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Speaker 1: Harriet Baldwin, who led that inquiry. It's five years on

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Speaker 1: from the last inquiry that the Treasury Select Committee did

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Speaker 1: into the City of London. I asked Harriet Baldwin about

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Speaker 1: then the state of diversity gender diversity in UK finance.

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Speaker 1: Have a listen.

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Speaker 6: Progress is happening at a snail's pace. I think this

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Speaker 6: is such an important issue for growth and for competitiveness,

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Speaker 6: because obviously for the sector to thrive and grow further,

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Speaker 6: it really needs to make sure that it works for everyone,

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Speaker 6: that it attracts and retains the very best talent. And

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Speaker 6: we were disappointed, i think, in this inquiry to see

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Speaker 6: how little progress has been made over the last five years.

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Speaker 1: You heard from a lot of people about the prevalence

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Speaker 1: of harassment and bullying, sexual assault and rape in financial services.

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Speaker 1: The report calls it shocking. Some of the testimony was private.

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Speaker 1: Just tell me about the experience of speaking to those

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Speaker 1: individuals and what that testimony was like.

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Speaker 6: It was extremely eye opening to think that in this

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Speaker 6: almost second quarter of the twenty first century, that there

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Speaker 6: are workplace cultures that could be as unconducive to our

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Speaker 6: women thriving as some of the testimony that we heard.

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Speaker 6: We were particularly concerned that it seemed to be pro tvalent,

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Speaker 6: particularly in smaller firms, in boutique like firms, in firms

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Speaker 6: in a wide range of parts of the industry, but

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Speaker 6: there was a particular issue around business events, around conferences,

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Speaker 6: around some of the out of hours activities, and I

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Speaker 6: think that's an area where you know, we wanted to

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Speaker 6: flag up some of this really quite shocking evidence.

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Speaker 1: Okay, so we'll get onto what can be done then

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Speaker 1: around perhaps smaller firms. The report repeatedly says it is

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Speaker 1: the responsibility of senior leaders to bring about cultural change,

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Speaker 1: but there's a danger that they are treating a dee

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Speaker 1: and I as tick box exercises. What is the incentive

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Speaker 1: for senior leaders to address these issues.

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Speaker 6: Well, it's obviously an issue around around talent and you

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Speaker 6: want everyone to be able to prosper and thrive in

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Speaker 6: your sector. It's a competitive advantage. There have been studies,

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Speaker 6: I think the most recent one was from Black Croc

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Speaker 6: that showed that firms that get this right, you know,

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Speaker 6: have greater success and higher profits. So it is really

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Speaker 6: important and what we think in terms of this sector,

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Speaker 6: which is such a strong sector for the UK, is

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Speaker 6: that it can be a real competitive advantage if we

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Speaker 6: get this right. Now you're highlighting the fact that we

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Speaker 6: think the responsibility ought to be on firms and firm

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Speaker 6: leadership because it's obviously in their interest, and we've slightly

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Speaker 6: shied away from thinking this ought to be something that

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Speaker 6: the regulator insists on as a tick box exercise because

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Speaker 6: we want to see the focus beyond culture rather than

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Speaker 6: just on collecting data.

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Speaker 1: Okay, The thing is there is a debate over the

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Speaker 1: evidence of the commercial benefits from d and I. Elon

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Speaker 1: Musk and Bill Ackman our campaigning against it. You also

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Speaker 1: talk about how it's the responsibility of investors too to

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Speaker 1: hold firms to account for d and I diversity equity inclusion.

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Speaker 1: If it were up to some is there would be

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Speaker 1: no DEI at all.

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Speaker 6: Well, I think that there's increasingly compelling evidence, as I say,

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Speaker 6: I pointed to that Black Croc study, and it just

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Speaker 6: makes complete sense, doesn't it. If you're in an industry

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Speaker 6: which is very reliant on human talent, that you want

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Speaker 6: to make the industry as welcoming as possible to attracting,

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Speaker 6: retaining and developing human talent wherever it comes from.

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Speaker 1: You say, there are quote several high profile cases which

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Speaker 1: show the existential risk to firms who don't tackle sexual misconduct.

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Speaker 1: People who do follow those high profile cases, though, I mean,

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Speaker 1: can see for themselves in some instances that it's far

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Speaker 1: from existential, either for the companies or the individuals who

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Speaker 1: face these allegations. Critics might be a bit concerned about

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Speaker 1: a statement like that.

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Speaker 6: Well, it's a statement that we've made, and obviously we're

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Speaker 6: provoking discussion by making that statement. But I do think

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Speaker 6: that this was partly behind the Prudential Regulation Authorities consultation

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Speaker 6: that they're concerned that for firms that don't get this right,

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Speaker 6: you know, it can actually cause businesses to unravel and

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Speaker 6: actually potentially be a systemic risk. And there have been some,

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Speaker 6: as you say, high profile cases where you could see

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Speaker 6: that that might be the case.

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Speaker 1: The report talks about the culture's being perhaps worse at

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Speaker 1: smaller firms such as hedge funds, which wouldn't be affected

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Speaker 1: by regulatory changes. Is there anything that you would suggest

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Speaker 1: which would help those firms in particular.

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Speaker 6: Yeah, what we've recommended, you know, beyond this issue around

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Speaker 6: the non disclosure agreements, is we think paygat reporting, which

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Speaker 6: currently covers firms are down to the two hundred and

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Speaker 6: fifty employee mark, could be widened by the government down

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Speaker 6: to firms with fifty plus employees. Pay gap reporting. I mean,

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Speaker 6: it's a good proxy, isn't it.

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Speaker 1: For how.

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Speaker 6: Well people are making sure that there is progress for

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Speaker 6: women in terms of pay in their firms. So I

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Speaker 6: think that was the recommendation that we chose to put

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Speaker 6: in our report.

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Speaker 1: Is there a firm that you can think of, going

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Speaker 1: back to your previous comments, is there a firmatoor that

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Speaker 1: you can think of in the UK that has unravel

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Speaker 1: due to the lack of diversity or issues around DEI?

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Speaker 6: Yeah, the one that's been widely reported was obviously before

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Speaker 6: the terms of reference of our inquiry, but that the

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Speaker 6: incidents happened before twenty eighteen was od Asset Management.

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Speaker 1: You also talked to You also talk a lot about

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Speaker 1: men and about their role within the financial services sector.

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Speaker 1: The emphasis and being on helping women to avoid the

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Speaker 1: known bad actors. That said, that was the sort of

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Speaker 1: finding that you concluded, rather than on tackling the inappropriate

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Speaker 1: behavior that women might face in the workplace. What is

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Speaker 1: your message then, two men on this score? And you

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Speaker 1: did interview also a number of men involved in this space.

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Speaker 5: Yeah.

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Speaker 6: And I've always found in my professional career in this

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Speaker 6: sector and now you know, in politics, I always find

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Speaker 6: the greatest feminists I ever come across are men with

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Speaker 6: daughters and you know, so my message you would be

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Speaker 6: to male leaders in this sector. You know, is this

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Speaker 6: the kind of behavior you would feel comfortable if it

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Speaker 6: were happening to your own daughter, and then think about

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Speaker 6: it in that context and actually that can really help

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Speaker 6: people realize when they need to call out bad behavior.

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Speaker 1: What would you say to critics who point out that

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Speaker 1: the Treasury Select Committee has no black, ethnic, minority background

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Speaker 1: or disabled members.

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Speaker 6: Well, it's entirely up to the House as to who

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Speaker 6: they elect to the committee. We are currently short one

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Speaker 6: Labor member on our committee and it will be wonderful

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Speaker 6: if the Labor Party would nominate someone to that vacancy.

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Speaker 1: It's pretty disappointing, isn't it that five years on from

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Speaker 1: the last major bit of work that your committee sort

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Speaker 1: of led the charge on, we've made so little progress

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Speaker 1: in the UK.

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Speaker 6: Well, we hope that our report will act as a

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Speaker 6: wake up call and that a lot of people will

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Speaker 6: see the recommendations act on them, and that any successor

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Speaker 6: committee to ours in five years time will see some

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Speaker 6: real progress.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London. To Wall Street and beyond.

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