1 00:00:00,600 --> 00:00:03,480 Speaker 1: Live from the Bloomberg Interact Day Brokers Studios. This is 2 00:00:03,480 --> 00:00:06,840 Speaker 1: Bloomberg day Break for Monday, March twentieth. Coming up today, 3 00:00:07,080 --> 00:00:10,239 Speaker 1: UBS takes on Credit Suis buying the troubled bank for 4 00:00:10,280 --> 00:00:12,799 Speaker 1: more than three billion dollars to move up ends the 5 00:00:12,880 --> 00:00:16,280 Speaker 1: bond market, wiping out seventeen billion dollars of the riskiest 6 00:00:16,360 --> 00:00:19,960 Speaker 1: bawns at Credit Suite. Shares of UBS plunge as analysts 7 00:00:19,960 --> 00:00:23,479 Speaker 1: point to potential earnings risk and global banking stocks slump 8 00:00:23,520 --> 00:00:25,480 Speaker 1: in the wake of the deal. A lawyer ally with 9 00:00:25,680 --> 00:00:29,120 Speaker 1: Donald Trump testifies today before New York grand jury plus 10 00:00:29,440 --> 00:00:32,880 Speaker 1: Chinese president. She meets today with the Russia's Vladimir Putin. 11 00:00:33,159 --> 00:00:36,080 Speaker 1: I'm Michael Barr. More ahead, I'm down stash Aaron's boards. 12 00:00:36,120 --> 00:00:38,720 Speaker 1: Another easy win for the Rangers, that Devils won, the 13 00:00:38,840 --> 00:00:41,199 Speaker 1: Nets lost their down to the sweet sixteen of the 14 00:00:41,280 --> 00:00:46,320 Speaker 1: NCBA tournaments. That's all straight Ahead on Bloomberg day Break, 15 00:00:46,440 --> 00:00:49,199 Speaker 1: The business news you need, disturn your day, and just 16 00:00:49,400 --> 00:00:53,600 Speaker 1: one fifteen minute podcast each pointing on Apples, Spotify, the 17 00:00:53,640 --> 00:01:00,440 Speaker 1: Bloomberg Business Appen everywhere you get your podcasts. Good morning, 18 00:01:00,440 --> 00:01:03,280 Speaker 1: I'm Nathan Hager and I'm Kieron Moscow. Here are the 19 00:01:03,320 --> 00:01:06,880 Speaker 1: stories we're following today. We begin with reaction to the 20 00:01:06,959 --> 00:01:10,759 Speaker 1: hastily arranged takeover of Credit Suis. So far, the deal 21 00:01:10,920 --> 00:01:13,839 Speaker 1: is failing to calm fears in the banking industry. Shares 22 00:01:13,880 --> 00:01:18,080 Speaker 1: of Credit Suis right now are down nearly sixty percent, 23 00:01:18,319 --> 00:01:22,479 Speaker 1: while the bank that bought that firm, UBS is lower 24 00:01:22,520 --> 00:01:25,520 Speaker 1: by nine percent. That's after UBS agreed to buy Credit 25 00:01:25,560 --> 00:01:28,920 Speaker 1: Suie for three point two billion dollars. The chairman of UBS, 26 00:01:29,000 --> 00:01:32,200 Speaker 1: Calm Kelleher, is trying to soothe concerns about the government 27 00:01:32,200 --> 00:01:35,280 Speaker 1: broker deal. It's a historic day in Switzerland, then, a 28 00:01:35,360 --> 00:01:38,600 Speaker 1: day frankly we hoped would not come. I would like 29 00:01:38,680 --> 00:01:41,880 Speaker 1: to make it clear that while we could not initiate discussions, 30 00:01:42,319 --> 00:01:46,800 Speaker 1: we believe that this transaction is financially attractive for UBS shareholders, 31 00:01:46,920 --> 00:01:51,200 Speaker 1: protects UBS from additional downside and should support earning his 32 00:01:51,320 --> 00:01:54,840 Speaker 1: growth over time. UBS chairman Calm Kellerher says he will 33 00:01:54,840 --> 00:01:57,320 Speaker 1: shrink the investment bank a Credit Suie, a unit that 34 00:01:57,400 --> 00:02:00,160 Speaker 1: racked up losses in recent years, and Nathan, I mean 35 00:02:00,200 --> 00:02:02,680 Speaker 1: a global team. Coverage of this historic dl we begin 36 00:02:02,760 --> 00:02:06,040 Speaker 1: with the Bloomberg's francy in Lakwise in Switzerland who attended 37 00:02:06,080 --> 00:02:09,880 Speaker 1: the UBS Credit Suite press conference in Berne yesterday. They 38 00:02:09,919 --> 00:02:11,880 Speaker 1: feel the questions for about an hour and a half. 39 00:02:11,919 --> 00:02:13,920 Speaker 1: I think they thought this would last for about forty 40 00:02:13,919 --> 00:02:16,440 Speaker 1: five minutes, and there are so many questions. First of all, 41 00:02:16,520 --> 00:02:18,840 Speaker 1: UBS got this quite on the cheap. I mean, why 42 00:02:18,840 --> 00:02:20,239 Speaker 1: did they get it so cheap? I think it is 43 00:02:20,240 --> 00:02:21,880 Speaker 1: probably one of the first questions when you look at 44 00:02:21,919 --> 00:02:25,079 Speaker 1: the valuation on Friday and also the amount of liquidity 45 00:02:25,120 --> 00:02:27,600 Speaker 1: of guarantees that they had to get from the government. 46 00:02:28,000 --> 00:02:30,800 Speaker 1: Do they know something in Cretty sueee that no one 47 00:02:30,800 --> 00:02:32,239 Speaker 1: else knows. I think this is one of the first 48 00:02:32,320 --> 00:02:34,680 Speaker 1: questions that a lot of people will ask. Certain market 49 00:02:34,680 --> 00:02:37,120 Speaker 1: participants will try and tell did they see a scary 50 00:02:37,200 --> 00:02:40,359 Speaker 1: movie and so wanted to make sure that they were protected. 51 00:02:40,680 --> 00:02:43,920 Speaker 1: Bloomberg's Francy Laquais reporting from Switzerland and we continue our 52 00:02:43,960 --> 00:02:46,840 Speaker 1: team coverage in Zurich now where a long time Credit 53 00:02:46,840 --> 00:02:49,520 Speaker 1: Suice reporter man As Cranny picks up the story. This 54 00:02:49,560 --> 00:02:53,239 Speaker 1: is about liquidity, a lifeline and ensuring the borders of 55 00:02:53,320 --> 00:02:56,960 Speaker 1: Switzerland remain robust of financial borders. This could be the 56 00:02:57,000 --> 00:03:01,080 Speaker 1: steel of the century for UPS. Colin Gallaher and Ralph Hammers. Actually, 57 00:03:01,080 --> 00:03:03,160 Speaker 1: if they slept on it overnight, I thought, wow, your 58 00:03:03,200 --> 00:03:05,520 Speaker 1: credit space was worth eighty billions? Was Franks At one 59 00:03:05,560 --> 00:03:09,160 Speaker 1: juncture they got a three and Bloomberg's menace Cranny reporting 60 00:03:09,200 --> 00:03:11,760 Speaker 1: from Zurich, more team coverage on the way now as 61 00:03:11,800 --> 00:03:15,000 Speaker 1: we assessed the fallout from this deal, Bloomberg Finance reporter 62 00:03:15,120 --> 00:03:18,520 Speaker 1: Marion Helftermeyer says thousands of job cuts are likely on 63 00:03:18,560 --> 00:03:20,880 Speaker 1: the way now. The next step to watch for will 64 00:03:20,919 --> 00:03:23,520 Speaker 1: be just how they actually combine these two banks. There 65 00:03:23,560 --> 00:03:26,239 Speaker 1: will be massive, massive job cuts here because there is 66 00:03:26,240 --> 00:03:29,200 Speaker 1: an incredible amount of overlap between the two banks, both 67 00:03:29,240 --> 00:03:33,119 Speaker 1: in Switzerland and globally, and in particular UBS has said, 68 00:03:33,160 --> 00:03:35,880 Speaker 1: you know, we have our own investment bank, so you know, 69 00:03:35,960 --> 00:03:38,600 Speaker 1: watched out for a massive windown of the Credit swieas 70 00:03:38,640 --> 00:03:42,960 Speaker 1: investment bank and Bloomberg Finance reporter Maryon Halftermeyer reports bondholders 71 00:03:43,040 --> 00:03:45,640 Speaker 1: are also angry about the terms of the takeover. The 72 00:03:45,680 --> 00:03:48,720 Speaker 1: fourth sale means seventeen billion dollars of the risky of 73 00:03:48,800 --> 00:03:52,400 Speaker 1: bonds at Credits Suite are now worthless well Karen. Reaction 74 00:03:52,440 --> 00:03:55,080 Speaker 1: continues to pour into the takeover of THEE hundred sixty 75 00:03:55,160 --> 00:03:57,560 Speaker 1: six year old bank. We got the take from Bloomberg 76 00:03:57,600 --> 00:04:02,080 Speaker 1: opinion calumnist Muhammadhalarrian and Bain Appital CoA chairman Steve Pagliuka. 77 00:04:02,240 --> 00:04:05,040 Speaker 1: This was not the best solution, but it dominated the 78 00:04:05,040 --> 00:04:08,480 Speaker 1: other two, which was either nationalization or trying to wind 79 00:04:08,520 --> 00:04:11,640 Speaker 1: down the bank. But it's full of contradictions. When the 80 00:04:11,720 --> 00:04:14,000 Speaker 1: first crisis happened in two thousand and eight, the whole 81 00:04:14,040 --> 00:04:16,480 Speaker 1: issue was systemic collapse. We don't have a systemic collapse. 82 00:04:16,520 --> 00:04:19,320 Speaker 1: Now we have a crisis of confidence, and that crisis 83 00:04:19,360 --> 00:04:22,640 Speaker 1: of confidence can ratchet into a bad economy. Muhammadal Area 84 00:04:22,680 --> 00:04:25,720 Speaker 1: and Steve Pagliuca made their comments on yesterday special edition 85 00:04:25,720 --> 00:04:29,520 Speaker 1: of Bloomberg Surveillance on Bloomberg Radio and Television. So how 86 00:04:29,560 --> 00:04:33,760 Speaker 1: will this banking turmoil impact rates at this week's FED decision, Nathan, 87 00:04:33,760 --> 00:04:36,880 Speaker 1: While we spoke with former Atlanta Fed President Denis Lockhart. 88 00:04:37,360 --> 00:04:41,640 Speaker 1: At this stage, I am inclined to give a majority 89 00:04:41,760 --> 00:04:45,400 Speaker 1: probability to a twenty five basis point hike, but a 90 00:04:45,480 --> 00:04:49,560 Speaker 1: non trivial probability to a pause. And former Atlanta Fed 91 00:04:49,600 --> 00:04:52,640 Speaker 1: President Denis Lockhart says the Fed's rapid rate increases have 92 00:04:52,760 --> 00:04:55,960 Speaker 1: taken some bank executives by surprise. Now back here in 93 00:04:56,000 --> 00:04:59,560 Speaker 1: the US, Karen banking turmoil is also in focus. Signature 94 00:04:59,640 --> 00:05:02,560 Speaker 1: was a three major banks that collapsed this month, and 95 00:05:02,720 --> 00:05:06,800 Speaker 1: starting this morning, it's forty branches will operate as Flagstar. 96 00:05:06,960 --> 00:05:09,760 Speaker 1: We get more in this live report from Bloomberg's John Tucker. 97 00:05:09,800 --> 00:05:12,479 Speaker 1: Good morning, John, and Nathan. Flagstar Bank of Hicksville, a 98 00:05:12,600 --> 00:05:15,480 Speaker 1: unit of New York Community Bankcorps, agreed to buy thirty 99 00:05:15,480 --> 00:05:19,159 Speaker 1: eight billion dollars of Signature's assets from the FDIC. Well, 100 00:05:19,160 --> 00:05:21,920 Speaker 1: the sale didn't offload all of Signature, it does show 101 00:05:21,920 --> 00:05:25,120 Speaker 1: there are buyers out there for such assets. Regulators hope 102 00:05:25,160 --> 00:05:27,359 Speaker 1: it's a move that could calm some of the turmoil. 103 00:05:27,640 --> 00:05:31,719 Speaker 1: Flagstar also assumed liabilities about thirty six billion dollars. That 104 00:05:31,800 --> 00:05:34,760 Speaker 1: includes thirty four billion dollars in deposits a bunch. Like 105 00:05:34,839 --> 00:05:37,640 Speaker 1: Silicon Valley Bank, Signature had a deposit base that was 106 00:05:37,800 --> 00:05:41,760 Speaker 1: mostly unensured. Live in New York, I'm John Tucker, Bloomberg Daybreak. 107 00:05:41,839 --> 00:05:43,840 Speaker 1: All right, John, thank you. When it comes to Silicon 108 00:05:43,920 --> 00:05:46,840 Speaker 1: Valley Bank, it looks like US regulators are getting closer 109 00:05:46,880 --> 00:05:49,320 Speaker 1: to a breakup plan, and we get the details live 110 00:05:49,320 --> 00:05:52,160 Speaker 1: with the Bloomberg. Steve Rappaport, Steve, good morning, Good morning, 111 00:05:52,240 --> 00:05:54,400 Speaker 1: Karen and Nathan. Sources tell us the plan is to 112 00:05:54,440 --> 00:05:57,400 Speaker 1: sell SVB in two parts. The FDIC set up a 113 00:05:57,400 --> 00:05:59,880 Speaker 1: so called bridge bank to take receivership of the firm's 114 00:06:00,000 --> 00:06:02,880 Speaker 1: assets and liabilities. Bids for that or do Friday. The 115 00:06:02,960 --> 00:06:06,240 Speaker 1: regulator will take bids by Wednesday for SBB Private Bank. 116 00:06:06,440 --> 00:06:08,960 Speaker 1: That's the remnants of Boston Private acquired by the bank 117 00:06:08,960 --> 00:06:11,839 Speaker 1: in twenty twenty one. The FDIC tried to sell both 118 00:06:11,880 --> 00:06:14,359 Speaker 1: parts together over the weekend, but extended the deadline to 119 00:06:14,400 --> 00:06:18,000 Speaker 1: attract more potential buyers. Live in New York. I'm Steve Rappaport, 120 00:06:18,120 --> 00:06:20,320 Speaker 1: Bloomberg Daybreak. Thank you, Steve. And when it comes to 121 00:06:20,400 --> 00:06:23,520 Speaker 1: First Republic Bank, those shares are plunging again this morning. 122 00:06:23,520 --> 00:06:26,240 Speaker 1: There's still no word of a rescue plan there. SMP 123 00:06:26,400 --> 00:06:30,280 Speaker 1: Global has downgraded the bank again. First Republic shares are 124 00:06:30,320 --> 00:06:37,599 Speaker 1: falling nearly twenty percent in early trading. It's thirty two 125 00:06:37,600 --> 00:06:39,440 Speaker 1: degrees in New York. It's going to be sunny and 126 00:06:39,440 --> 00:06:41,560 Speaker 1: mild today, heading the low fifties, and we'll get down 127 00:06:41,560 --> 00:06:44,440 Speaker 1: to the upper thirties tonight under a clear sky. Time 128 00:06:44,480 --> 00:06:45,920 Speaker 1: Now for a look at some of the other stories 129 00:06:45,920 --> 00:06:47,800 Speaker 1: making news in New York and around the world, with 130 00:06:47,800 --> 00:06:50,799 Speaker 1: Bloomberg's Michael Barr a Good Morning, Mike Call, Good Morning Nathan. 131 00:06:50,880 --> 00:06:54,480 Speaker 1: A lawyer allied with Donald Trump, plans to testify before 132 00:06:54,600 --> 00:06:58,320 Speaker 1: New York grand jury today. Robert Costello is expected to 133 00:06:58,320 --> 00:07:01,359 Speaker 1: make the kays the former president should not face criminal 134 00:07:01,480 --> 00:07:04,800 Speaker 1: charges over hush money paid during his twenty sixteen campaign 135 00:07:05,120 --> 00:07:08,480 Speaker 1: to poor and start Stormy Daniels. Costello says he has 136 00:07:08,520 --> 00:07:11,520 Speaker 1: information raising questions about the credibility of a key witness 137 00:07:11,600 --> 00:07:15,119 Speaker 1: in the investigation, former Trump lawyer and fixer, Michael Cohen. 138 00:07:15,400 --> 00:07:19,760 Speaker 1: Democratic Senator Elizabeth Warren that investigation should be allowed to 139 00:07:19,800 --> 00:07:23,880 Speaker 1: go forward appropriately. If it's time to bring indictments, then 140 00:07:23,920 --> 00:07:28,360 Speaker 1: they'll bring indictments. That's how our legal system works. Senator 141 00:07:28,400 --> 00:07:31,240 Speaker 1: Warren spoke on ABC's This Week, which can be heard 142 00:07:31,280 --> 00:07:35,600 Speaker 1: Sundays on Bloomberg. Trump says if he is arrested tomorrow, 143 00:07:35,720 --> 00:07:39,040 Speaker 1: he is calling for protests if it happens. Among his 144 00:07:39,080 --> 00:07:42,520 Speaker 1: supporters outside Merolago yesterday was this woman who traveled from 145 00:07:42,560 --> 00:07:45,800 Speaker 1: New Jersey. It's just about everybody coming out together and 146 00:07:46,000 --> 00:07:50,360 Speaker 1: supporting altogether. It's like one big happy family Manhattan. DA 147 00:07:50,400 --> 00:07:53,240 Speaker 1: Alvin Bragg is not saying whether he'll charge Trump, but 148 00:07:53,280 --> 00:07:56,360 Speaker 1: he emailed his staff over the weekend saying we do 149 00:07:56,480 --> 00:08:01,080 Speaker 1: not tolerate attempts to intimidate all our office. Instigations continue 150 00:08:01,120 --> 00:08:04,120 Speaker 1: after five children from Connecticut, ranging an age from eight 151 00:08:04,160 --> 00:08:07,760 Speaker 1: to seventeen, were killed in a fiery early morning crash 152 00:08:07,840 --> 00:08:11,640 Speaker 1: yesterday on a New York highway in Westchester County. Police 153 00:08:11,680 --> 00:08:14,320 Speaker 1: believe the vehicle was being driven by a sixteen year 154 00:08:14,320 --> 00:08:17,560 Speaker 1: old boy when it veered off the Hutchinson River Parkway 155 00:08:17,640 --> 00:08:20,760 Speaker 1: and Scarsdale, hit a tree and caught fire. The only 156 00:08:20,760 --> 00:08:24,320 Speaker 1: survivor was a nine year old boy. Russian President Vladimir 157 00:08:24,320 --> 00:08:27,880 Speaker 1: Putin hosts Chinese President Chijingping for meetings today in Moscow. 158 00:08:28,280 --> 00:08:32,720 Speaker 1: Fordham University professor Beth Noble says the ongoing conflict with 159 00:08:32,840 --> 00:08:36,120 Speaker 1: Ukraine will be a major focus. The Chinese leader, Shijinping 160 00:08:36,320 --> 00:08:39,240 Speaker 1: is portraying his visit to Russia as a personal mission 161 00:08:39,320 --> 00:08:41,920 Speaker 1: to help bring peace to Ukraine, but he's hardly been 162 00:08:41,960 --> 00:08:45,160 Speaker 1: an honest broker so far. China has proposed a peace 163 00:08:45,200 --> 00:08:47,880 Speaker 1: plan for Ukraine, but it's one that many world leaders 164 00:08:47,880 --> 00:08:50,559 Speaker 1: have said is a non starter since it leans heavily 165 00:08:50,600 --> 00:08:54,320 Speaker 1: towards Russia. Professor Noble as China and Russia is said 166 00:08:54,320 --> 00:08:57,360 Speaker 1: to have a no limits partnership. About twenty five thousand 167 00:08:57,440 --> 00:09:01,359 Speaker 1: runners participated in the New York City half Rathon. Olympian 168 00:09:01,600 --> 00:09:05,360 Speaker 1: Jacob to Plomo from Uganda won the race. Global teams 169 00:09:05,360 --> 00:09:07,480 Speaker 1: twenty four hours a day, powered by more than twenty 170 00:09:07,520 --> 00:09:10,400 Speaker 1: seven hundred journalists and analysts and over one hundred twenty countries. 171 00:09:10,760 --> 00:09:13,760 Speaker 1: Michael Barr and this is Bloomberg. Nathan. All right, Michael, 172 00:09:13,800 --> 00:09:20,719 Speaker 1: thank you time now for the Bloomberg Sports Update, brought 173 00:09:20,760 --> 00:09:22,480 Speaker 1: to you by Trice State. Howdy you got Morney John 174 00:09:22,520 --> 00:09:25,400 Speaker 1: Stash After morning, Nathan, the Nights of Fairlie Nakin. Soon 175 00:09:25,400 --> 00:09:28,040 Speaker 1: they'll be back on campus in Teenac today. They had 176 00:09:28,080 --> 00:09:31,000 Speaker 1: a heck of a weekend at the NCAA Tournament Columbus, Ohio. 177 00:09:31,080 --> 00:09:33,679 Speaker 1: The stunning upset Friday night of top seeded per DWO 178 00:09:33,720 --> 00:09:37,200 Speaker 1: and FTU came out strong second half last night, had 179 00:09:37,200 --> 00:09:39,959 Speaker 1: a five point lead on Florida Atlantic with the Owls, 180 00:09:39,960 --> 00:09:42,600 Speaker 1: who are thirty three and three on the season, came 181 00:09:42,640 --> 00:09:45,480 Speaker 1: back to win seventy eight to seventy When Marquette the 182 00:09:45,559 --> 00:09:47,880 Speaker 1: two seed in the East was upset by Michigan State. 183 00:09:47,880 --> 00:09:49,760 Speaker 1: Had meant that each of the four days of the 184 00:09:49,760 --> 00:09:52,800 Speaker 1: Attorney a one or two seed had lost. Michigan State 185 00:09:52,840 --> 00:09:56,360 Speaker 1: will now play at the Garden Thursday against Kansas State, 186 00:09:56,400 --> 00:09:58,679 Speaker 1: who'll be Kentucky. The other game at MSG will be 187 00:09:58,800 --> 00:10:02,200 Speaker 1: Florida Atlantic again Tennessee. It was hockey at the Yard 188 00:10:02,360 --> 00:10:04,160 Speaker 1: last night, and the Rangers tied a club record with 189 00:10:04,240 --> 00:10:06,839 Speaker 1: a six goal first period. They meet in Nashville seven 190 00:10:06,920 --> 00:10:09,400 Speaker 1: to nothing the night after the Blue Shirts. They had 191 00:10:09,440 --> 00:10:12,200 Speaker 1: beaten Pittsburgh six to nothing. KeAndre Miller last night two 192 00:10:12,240 --> 00:10:15,400 Speaker 1: goals to assist just in the opening period. Devil's Lightning 193 00:10:15,480 --> 00:10:17,080 Speaker 1: met for the third time in the six days. New 194 00:10:17,160 --> 00:10:20,640 Speaker 1: Jersey one at Tampa five two, first career hat trick 195 00:10:20,679 --> 00:10:23,760 Speaker 1: for Yesford Bratt at Barclay's Nets lost to Denver one 196 00:10:23,760 --> 00:10:26,079 Speaker 1: O eight, one h two, thenothers Jamal Murray twenty five 197 00:10:26,120 --> 00:10:29,520 Speaker 1: points in the first quarter. Nick's host Minnesota tonight, a 198 00:10:29,640 --> 00:10:32,480 Speaker 1: US route at the World Baseball Classic semifinals in Miami, 199 00:10:32,600 --> 00:10:35,599 Speaker 1: fourteen to two over Cuba. Pair of home runs for 200 00:10:35,679 --> 00:10:38,079 Speaker 1: Trade Turner Paul goldschmid homer. They both drove in four 201 00:10:38,120 --> 00:10:42,240 Speaker 1: runs championship game tomorrow against either Mexico or Japan. Mets 202 00:10:42,280 --> 00:10:44,600 Speaker 1: lost the Cardinals eight seventy. Yankees lost in the Oils 203 00:10:44,640 --> 00:10:46,920 Speaker 1: five to three. Garrett Cole four scoreless innings, but then 204 00:10:46,920 --> 00:10:49,760 Speaker 1: he gave up four runs in the fifth. Carlos Alcarez 205 00:10:49,840 --> 00:10:52,439 Speaker 1: won the tennis at ending Wells regained the world number 206 00:10:52,440 --> 00:10:59,160 Speaker 1: one night. Johnskashawar Bloomberg Sport live from coast to coast, 207 00:10:59,320 --> 00:11:02,680 Speaker 1: from New York to San Francisco, Boston to Washington, DC, 208 00:11:03,120 --> 00:11:06,920 Speaker 1: nationwide on Sirius, XAMP, the Bloomberg Business app, and Bloomberg 209 00:11:07,040 --> 00:11:11,920 Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning on Nathan Hagar. 210 00:11:12,000 --> 00:11:15,360 Speaker 1: The hastily arranged takeover over the weekend of Credit Suis 211 00:11:15,640 --> 00:11:18,439 Speaker 1: by UBS does not appear to be offering solace to 212 00:11:18,520 --> 00:11:22,559 Speaker 1: investors this morning. Worries continue about even wider fallout from 213 00:11:22,600 --> 00:11:25,520 Speaker 1: a crisis in banking confidence that has now been going 214 00:11:25,600 --> 00:11:29,199 Speaker 1: on for several days. Let's bring in Alison william senior 215 00:11:29,240 --> 00:11:33,560 Speaker 1: analysts for Global investment banks and asset managers at Bloomberg Intelligence, 216 00:11:33,720 --> 00:11:36,720 Speaker 1: as well as Bloomberg's Mannis Cranny, who has covered UBS 217 00:11:36,800 --> 00:11:40,280 Speaker 1: and Credit Suis for years, was in burn Switzerland, for 218 00:11:40,320 --> 00:11:45,560 Speaker 1: the takeover announcement, and Mannis joins me from Switzerland. Now Mannis, 219 00:11:45,640 --> 00:11:50,040 Speaker 1: I'm watching shares of UBS and Credit suis plummet this morning. 220 00:11:50,080 --> 00:11:52,360 Speaker 1: Before we get to the price action, though, let's just 221 00:11:52,400 --> 00:11:56,240 Speaker 1: talk about how historic this is that a bank that 222 00:11:56,320 --> 00:11:59,840 Speaker 1: has more than one hundred sixty year history is now 223 00:12:00,120 --> 00:12:03,160 Speaker 1: being taken over by its rival right across the street. 224 00:12:04,840 --> 00:12:07,400 Speaker 1: Made in a very good days year, Allison, This just 225 00:12:07,520 --> 00:12:10,440 Speaker 1: symbody was never supposed to happen. Ever again post GFC 226 00:12:10,640 --> 00:12:14,480 Speaker 1: taking my own back to Leahman's going under, to Namura 227 00:12:14,559 --> 00:12:16,559 Speaker 1: coming in and scooping up the paths to RBS in 228 00:12:16,600 --> 00:12:20,439 Speaker 1: the UK being nationalized, this was a marriage of very 229 00:12:20,559 --> 00:12:23,920 Speaker 1: unequal partners. This is a very uncomfortable, one could say, 230 00:12:24,040 --> 00:12:26,600 Speaker 1: and many have used the phrase shotgun wedding. The issue 231 00:12:26,600 --> 00:12:28,520 Speaker 1: with that is you never know what your in laws 232 00:12:28,520 --> 00:12:30,040 Speaker 1: are going to be like. In other words, what is 233 00:12:30,080 --> 00:12:33,520 Speaker 1: still remaining inside Credit Suites that UBS has not had 234 00:12:33,559 --> 00:12:36,840 Speaker 1: the chance to do due diligence on the finance minister 235 00:12:36,840 --> 00:12:38,960 Speaker 1: in Burne last night. Frantine was in Burne, I was 236 00:12:39,000 --> 00:12:41,040 Speaker 1: in Zurich. And the phrase that was used, this is 237 00:12:41,040 --> 00:12:44,400 Speaker 1: not a bail ote, this is not a baylight. Well, 238 00:12:44,440 --> 00:12:46,440 Speaker 1: if this is not a baylight, one hundred billion of 239 00:12:46,480 --> 00:12:49,000 Speaker 1: a backstop in liquidity for credits for the new entity 240 00:12:49,120 --> 00:12:52,560 Speaker 1: is there? And a nine billion backstop in terms of 241 00:12:52,679 --> 00:12:55,840 Speaker 1: losses potential losses that the new entity may need to 242 00:12:55,880 --> 00:12:58,520 Speaker 1: take in the event of winding down what are called 243 00:12:58,600 --> 00:13:04,080 Speaker 1: highly liquid or level three instruments inside the credit police vehicles. 244 00:13:04,120 --> 00:13:06,880 Speaker 1: So right now this is a bail in of bombs 245 00:13:07,440 --> 00:13:10,840 Speaker 1: and that's the big spooky issue for markets, credit and 246 00:13:10,920 --> 00:13:15,280 Speaker 1: equity markets today. What kind of unanswered questions, manness, are 247 00:13:15,320 --> 00:13:18,920 Speaker 1: there about Credit suisses books? I mean, we understand that 248 00:13:18,960 --> 00:13:23,120 Speaker 1: they have had a number of scandals over the years, 249 00:13:23,160 --> 00:13:26,480 Speaker 1: a number of crises over the years. Is that part 250 00:13:26,480 --> 00:13:29,760 Speaker 1: of the reason why we're seeing this drop in both 251 00:13:30,000 --> 00:13:33,880 Speaker 1: companies shares this morning, that we don't have a fully 252 00:13:33,880 --> 00:13:38,720 Speaker 1: clear picture of what the books look like at Credit Suez. Look, 253 00:13:38,720 --> 00:13:40,800 Speaker 1: I think that's part of it. But be assured there's 254 00:13:40,800 --> 00:13:43,120 Speaker 1: a liquidity boxtop of one hundred billions so stranks at 255 00:13:43,160 --> 00:13:44,880 Speaker 1: the point one, this was a liquidity issue, not a 256 00:13:44,880 --> 00:13:49,480 Speaker 1: capital issue that drove this shotgun wedding. However, Colin callaher 257 00:13:49,640 --> 00:13:52,000 Speaker 1: the new chairman of the joint entity, and the chairman 258 00:13:52,120 --> 00:13:54,319 Speaker 1: of UBS made it very very clear we're going to 259 00:13:54,400 --> 00:13:56,400 Speaker 1: de risk. We're going to bring that investment bank dying 260 00:13:56,760 --> 00:13:58,800 Speaker 1: to about twenty five percent of the overall size of 261 00:13:58,800 --> 00:14:01,280 Speaker 1: the combined entity. That is going to mean some serious 262 00:14:01,320 --> 00:14:05,640 Speaker 1: addressing of higher risk assets that are inside the investment bank. 263 00:14:05,960 --> 00:14:07,960 Speaker 1: The issue with that, and I take you back to 264 00:14:08,320 --> 00:14:12,559 Speaker 1: twenty twenty fourteen, when you're trying to sell off assets 265 00:14:12,600 --> 00:14:15,400 Speaker 1: that are highly a liquid, difficult to price and nobody 266 00:14:15,440 --> 00:14:17,960 Speaker 1: really wants. That's when the difficulty comes in. And that's 267 00:14:18,040 --> 00:14:21,440 Speaker 1: maybe where the losses are potentially to come. But there 268 00:14:21,520 --> 00:14:23,560 Speaker 1: is a backstop and I will use that word time 269 00:14:23,560 --> 00:14:26,880 Speaker 1: and time again because that is yet to be fully comprehended. Here. 270 00:14:27,400 --> 00:14:29,840 Speaker 1: Want to bring in Alison Williams this discussion and our 271 00:14:30,160 --> 00:14:33,880 Speaker 1: senior analyst for a global investment big asset managers at 272 00:14:34,000 --> 00:14:37,520 Speaker 1: Bloomberg Intelligence. Alison, what are some of the unanswered questions 273 00:14:37,560 --> 00:14:42,920 Speaker 1: for you when it comes to this UBS credit sweet tip? Well, 274 00:14:43,240 --> 00:14:47,520 Speaker 1: I think the biggest the biggest question for UBS shareholders 275 00:14:47,840 --> 00:14:51,920 Speaker 1: is you know the length of time it's going to 276 00:14:51,960 --> 00:14:55,000 Speaker 1: take for this deal to be a creative and in 277 00:14:55,040 --> 00:14:58,640 Speaker 1: some sense they're they're taking on some of the restructuring 278 00:14:58,720 --> 00:15:01,960 Speaker 1: challenges that credit Swos is already facing. They're doing it 279 00:15:02,000 --> 00:15:07,880 Speaker 1: with a stronger balance sheet. Um, so that's helpful. But um, 280 00:15:07,920 --> 00:15:10,520 Speaker 1: you know, the deal I think is a little unnerving 281 00:15:10,560 --> 00:15:13,760 Speaker 1: to markets, just because of the treatment of the at 282 00:15:13,960 --> 00:15:21,440 Speaker 1: ones and also that it's um not requiring approval of 283 00:15:21,600 --> 00:15:26,120 Speaker 1: UBS shareholders. So I think those two things definitely are 284 00:15:26,600 --> 00:15:30,000 Speaker 1: not something that the market likes. The market doesn't like 285 00:15:30,240 --> 00:15:34,160 Speaker 1: when when the rules change like that, I guess if 286 00:15:34,160 --> 00:15:38,600 Speaker 1: you will, but I would say that you know, if 287 00:15:38,600 --> 00:15:40,720 Speaker 1: you if you look at the deal from the long 288 00:15:40,840 --> 00:15:44,840 Speaker 1: term perspective of UBS, Yes, they are going to as 289 00:15:44,960 --> 00:15:48,120 Speaker 1: many said, they want to limit the investive bank. But 290 00:15:48,200 --> 00:15:51,440 Speaker 1: it is important to note that credits we had already 291 00:15:51,480 --> 00:15:54,880 Speaker 1: been doing a lot of work in that direction. So um, 292 00:15:54,920 --> 00:15:57,520 Speaker 1: they're already sort of at that twenty five percent. They've 293 00:15:57,560 --> 00:16:00,400 Speaker 1: been selling off credits, we had been selling off assets 294 00:16:00,440 --> 00:16:05,040 Speaker 1: to Apollo, and they're putting the remainder of those assets 295 00:16:05,080 --> 00:16:08,640 Speaker 1: in the bank. And that does remain a big question. 296 00:16:09,240 --> 00:16:12,040 Speaker 1: And to Manny's point, those assets can be hard to sell, 297 00:16:12,080 --> 00:16:15,400 Speaker 1: and that is why you know they're taking the first 298 00:16:15,440 --> 00:16:18,000 Speaker 1: five billion dollars of loss, and then the government is 299 00:16:18,040 --> 00:16:23,440 Speaker 1: taking the next nine billion, so those those assets are 300 00:16:23,480 --> 00:16:28,600 Speaker 1: where they got the government guarantee. There's also the remaining 301 00:16:28,680 --> 00:16:31,560 Speaker 1: legal risks, and I think that is sort of the 302 00:16:31,560 --> 00:16:34,280 Speaker 1: playbook that a lot of US investors look to when 303 00:16:34,320 --> 00:16:39,160 Speaker 1: we think about deals like bear Stearns and Washington Mutual 304 00:16:39,600 --> 00:16:41,760 Speaker 1: and some of the legal risks behind. But I would 305 00:16:41,760 --> 00:16:46,960 Speaker 1: say that two things. First, this is a very different 306 00:16:47,200 --> 00:16:50,480 Speaker 1: situation than two thousand and eight. It's very different for 307 00:16:50,560 --> 00:16:54,880 Speaker 1: the banking system as a whole. And second, most of 308 00:16:54,920 --> 00:16:59,280 Speaker 1: the legal risks are are identified. There are obviously there's 309 00:16:59,280 --> 00:17:01,920 Speaker 1: always a risk for unknowns, but ubs did take an 310 00:17:02,000 --> 00:17:05,920 Speaker 1: added provision related to those risks. And that gets back 311 00:17:05,920 --> 00:17:08,000 Speaker 1: to a point that Manness made Allison at the very 312 00:17:08,040 --> 00:17:11,200 Speaker 1: beginning of this discussion that something like this wasn't supposed 313 00:17:11,240 --> 00:17:14,320 Speaker 1: to happen after the two thousand and eight crisis. A 314 00:17:14,359 --> 00:17:18,920 Speaker 1: bank that's systemically important, the likes of Credit Suite wasn't 315 00:17:18,960 --> 00:17:21,840 Speaker 1: supposed to fail after this. Well, we have a deal 316 00:17:21,960 --> 00:17:27,040 Speaker 1: like this where ubs is becomes the one systemically important 317 00:17:27,080 --> 00:17:31,800 Speaker 1: bank in Switzerland. What kind of risk does that pose 318 00:17:32,200 --> 00:17:36,040 Speaker 1: for UBS? Well, I think you know, one of the 319 00:17:36,119 --> 00:17:41,240 Speaker 1: key drivers for Credit Suite to want to stabilize the 320 00:17:41,320 --> 00:17:46,560 Speaker 1: situation is just a fact that these two banks do 321 00:17:46,680 --> 00:17:49,199 Speaker 1: have ties to each other, and Credit Swee does have 322 00:17:49,240 --> 00:17:54,200 Speaker 1: ties globally. And even though their capital and liquidity position 323 00:17:55,280 --> 00:18:00,280 Speaker 1: were strong, as we know that liquidity, sometimes the situation 324 00:18:00,320 --> 00:18:03,880 Speaker 1: can change quickly. And I think there's you know, there 325 00:18:03,920 --> 00:18:07,720 Speaker 1: there are big differences between Credit suits and what's happening 326 00:18:07,760 --> 00:18:12,240 Speaker 1: in the US, but the one similarity is just um, 327 00:18:12,280 --> 00:18:15,959 Speaker 1: the sentiment and the confidence and so at Credit Suitee, 328 00:18:16,119 --> 00:18:20,240 Speaker 1: the issue was that, especially with you know, a lot 329 00:18:20,240 --> 00:18:23,120 Speaker 1: of the social media that they saw, it was sort 330 00:18:23,119 --> 00:18:26,320 Speaker 1: of reminiscent to what they had seen in the fourth quarter. 331 00:18:26,359 --> 00:18:29,040 Speaker 1: They saw significant outflows as a result of the sentiment 332 00:18:29,160 --> 00:18:34,879 Speaker 1: sentiment and reports are that they were seeing significant UM 333 00:18:35,040 --> 00:18:38,880 Speaker 1: outflows hopefully I use the word outflows earlier and um, 334 00:18:39,880 --> 00:18:42,840 Speaker 1: but you know, and that was what the Swiss regulator 335 00:18:42,880 --> 00:18:45,199 Speaker 1: pointed to as the reason why they they stepped in 336 00:18:45,280 --> 00:18:47,560 Speaker 1: because they started to see those outflows and they really 337 00:18:48,359 --> 00:18:52,040 Speaker 1: felt that they needed to stem you know, stem that 338 00:18:52,160 --> 00:18:55,679 Speaker 1: and instill confidence. You know. The issue with all of 339 00:18:55,680 --> 00:18:58,240 Speaker 1: these measures is that I think, you know, bank regulators, 340 00:18:58,280 --> 00:19:01,040 Speaker 1: it's tough because they have to walk a fine line. 341 00:19:01,040 --> 00:19:04,159 Speaker 1: They have to do enough to install confidence and not 342 00:19:04,280 --> 00:19:08,480 Speaker 1: do too much that you shake investors confidence for the 343 00:19:08,560 --> 00:19:11,480 Speaker 1: need for them to have to step in man. So 344 00:19:11,520 --> 00:19:13,399 Speaker 1: I want to bring you back into the discussion. The 345 00:19:13,760 --> 00:19:17,520 Speaker 1: Swiss National Bank is bringing in a hundred billion franc 346 00:19:17,880 --> 00:19:23,359 Speaker 1: liquidity guarantee for UBS in this merger. What does that 347 00:19:23,400 --> 00:19:27,719 Speaker 1: potentially mean when it comes to the type of confidence 348 00:19:27,840 --> 00:19:32,000 Speaker 1: that investors can continue to have in this bank. Well, 349 00:19:32,000 --> 00:19:34,920 Speaker 1: I think we've got to disaggregate here between depositors, people 350 00:19:34,920 --> 00:19:37,720 Speaker 1: of Switzerland, people around the world, the rich, ultra rich 351 00:19:38,080 --> 00:19:40,439 Speaker 1: and billionaire community around the world in terms of their 352 00:19:40,440 --> 00:19:42,600 Speaker 1: allocation to credit suits in ubs, they probably have a 353 00:19:42,680 --> 00:19:44,840 Speaker 1: kounds with both. So you have the depositor risk and 354 00:19:44,880 --> 00:19:48,320 Speaker 1: then you have investor. An investor confidence and depositor confidence 355 00:19:48,400 --> 00:19:51,960 Speaker 1: are very similar, but they are slightly different things. The 356 00:19:52,080 --> 00:19:54,600 Speaker 1: issue this morning, I'm just looking at g or Or 357 00:19:54,880 --> 00:19:57,760 Speaker 1: on the stock six hundred on the banks page, Deutsche 358 00:19:57,800 --> 00:20:01,960 Speaker 1: Bank dying five percent, Iron Dine six percent, Bodies down 359 00:20:02,040 --> 00:20:04,680 Speaker 1: five percent. The issue is this what has happened here 360 00:20:05,320 --> 00:20:07,680 Speaker 1: from my very first initial reading, Alison, you can maybe 361 00:20:07,720 --> 00:20:11,760 Speaker 1: help clarify this. Urinanalyst and just a vintage banker broker 362 00:20:12,040 --> 00:20:15,560 Speaker 1: commodity drader, which is there has been an inversion of 363 00:20:15,560 --> 00:20:17,800 Speaker 1: the capital structure. In other words, the at one bonds, 364 00:20:18,440 --> 00:20:23,200 Speaker 1: those additional capital bonds have been subsumed to equity. There's 365 00:20:23,200 --> 00:20:26,560 Speaker 1: a morsel of equity given to the shareholders, the pension fundholders, 366 00:20:26,840 --> 00:20:29,280 Speaker 1: the pension people of Switzerland, your equity. You still get 367 00:20:29,320 --> 00:20:32,399 Speaker 1: a morsel and a potential upside the bond. The eighty 368 00:20:32,440 --> 00:20:36,040 Speaker 1: one bondholders have been wiped out. That's what's dislocated banking 369 00:20:36,080 --> 00:20:39,040 Speaker 1: markets in Europe this morning. The cost of capital for 370 00:20:39,200 --> 00:20:44,359 Speaker 1: everybody has shot higher this morning. That is a material risk. 371 00:20:44,400 --> 00:20:47,439 Speaker 1: You waken up this morning to a higher risk of 372 00:20:47,440 --> 00:20:51,040 Speaker 1: the cost of capital in banking, and that as a 373 00:20:51,080 --> 00:20:55,560 Speaker 1: potential fcom or defcon moment in terms of constricting capital 374 00:20:55,640 --> 00:20:58,360 Speaker 1: to the real economy. That's the chronology of risk as 375 00:20:58,400 --> 00:21:01,280 Speaker 1: I see it from where I'm sitting this morning. Now, 376 00:21:01,359 --> 00:21:03,280 Speaker 1: that is a big part of this story, the fact 377 00:21:03,280 --> 00:21:06,360 Speaker 1: that we have something like seventeen billion dollars of these 378 00:21:06,480 --> 00:21:11,160 Speaker 1: riskiest bonds now being completely written down because of this deal. 379 00:21:11,280 --> 00:21:17,280 Speaker 1: Alison Williams, why do that? Why put the bondholders at 380 00:21:17,359 --> 00:21:21,960 Speaker 1: risk rather than the shareholders, changing the order of who 381 00:21:22,200 --> 00:21:27,520 Speaker 1: gets hit hardest by this. So management made clear that 382 00:21:27,640 --> 00:21:32,679 Speaker 1: this was a government decision, and actually the way that 383 00:21:32,720 --> 00:21:36,400 Speaker 1: it structures the deal, it actually provides some capital protection 384 00:21:37,000 --> 00:21:39,919 Speaker 1: to UBS. But I think that Manny is right that 385 00:21:40,000 --> 00:21:45,200 Speaker 1: I that holders of these securities were surprised in terms 386 00:21:45,240 --> 00:21:48,920 Speaker 1: of the way that the capital structure worked. But there's 387 00:21:48,960 --> 00:21:51,080 Speaker 1: actually a great note out this morning by your own 388 00:21:51,160 --> 00:21:56,200 Speaker 1: Julius who covers these securities, and he does to Manny's point, 389 00:21:56,880 --> 00:22:02,639 Speaker 1: you know, point out that precedent means that these type 390 00:22:02,640 --> 00:22:06,000 Speaker 1: of investors for these securities will demand higher yields, and 391 00:22:06,040 --> 00:22:09,480 Speaker 1: so obviously that puts us some questions about the future 392 00:22:09,480 --> 00:22:12,560 Speaker 1: of securities, and it raises the cost of capital. But 393 00:22:12,600 --> 00:22:17,560 Speaker 1: there is you know, with the securities of both UBS 394 00:22:17,640 --> 00:22:20,480 Speaker 1: and Credit Suites are a little bit unique in terms 395 00:22:20,520 --> 00:22:24,119 Speaker 1: of the permanent write down. It's the exception in Europe. 396 00:22:24,680 --> 00:22:28,600 Speaker 1: And he points to the fact that as these securities 397 00:22:28,600 --> 00:22:33,119 Speaker 1: are issued, the language is likely to be different in 398 00:22:33,160 --> 00:22:35,520 Speaker 1: the future. So that's a little bit of a technical issue, 399 00:22:37,080 --> 00:22:40,000 Speaker 1: but I think that's also an important to note. I 400 00:22:40,000 --> 00:22:43,760 Speaker 1: also want to ask about the future of this bank. Now. 401 00:22:43,840 --> 00:22:47,040 Speaker 1: Before the takeover happened, we know that Credit Suite had 402 00:22:47,040 --> 00:22:50,760 Speaker 1: been in the process of cutting nine thousand jobs. Now, 403 00:22:50,800 --> 00:22:52,439 Speaker 1: we do expect that there are going to be a 404 00:22:52,480 --> 00:22:56,760 Speaker 1: lot of redundancies as this deal continues to play out 405 00:22:56,760 --> 00:22:59,920 Speaker 1: work itself out over the next few months. Allison, where 406 00:22:59,880 --> 00:23:03,240 Speaker 1: do you expect job cuts to come down between Credit 407 00:23:03,280 --> 00:23:07,240 Speaker 1: Suites and ubs? I think you know the cuts are 408 00:23:07,280 --> 00:23:09,720 Speaker 1: going to be broad. If you looked, you know, Credit 409 00:23:09,760 --> 00:23:13,000 Speaker 1: sweets their plan as it was, a lot of it 410 00:23:13,080 --> 00:23:19,320 Speaker 1: involved simplic simplification and eliminating redundancy. I know that there 411 00:23:19,400 --> 00:23:22,400 Speaker 1: will probably be a lot of stories about the investment 412 00:23:22,400 --> 00:23:26,200 Speaker 1: bank UM and certainly there there might be some cuts there. 413 00:23:26,840 --> 00:23:28,880 Speaker 1: But again I would just point to the fact that 414 00:23:29,000 --> 00:23:31,280 Speaker 1: you know, those trading assets have come down a lot, 415 00:23:31,359 --> 00:23:34,760 Speaker 1: and I think you know, the one remaining question is 416 00:23:34,840 --> 00:23:38,760 Speaker 1: really what happens to UM the investment bank just in 417 00:23:38,880 --> 00:23:41,800 Speaker 1: terms of the underwriting and advisory business. This was the 418 00:23:41,880 --> 00:23:45,120 Speaker 1: business UM that that was going to be spun out 419 00:23:45,160 --> 00:23:50,520 Speaker 1: in the Credit Sweets first. Boston Harbout and the UBS 420 00:23:50,560 --> 00:23:53,280 Speaker 1: did point to the fact that they feel that as 421 00:23:53,320 --> 00:23:55,960 Speaker 1: a result of this deal they can and expand their 422 00:23:56,000 --> 00:24:00,920 Speaker 1: global banking and research capabilities, add to some the M 423 00:24:01,000 --> 00:24:04,480 Speaker 1: and A capability. So it does suggest that there is 424 00:24:04,480 --> 00:24:09,320 Speaker 1: a place for some of that talent. Manis Cranny. Obviously 425 00:24:09,320 --> 00:24:12,280 Speaker 1: you've covered both these banks for some time. What are 426 00:24:12,280 --> 00:24:15,040 Speaker 1: you looking for to come next in the fallout from 427 00:24:15,040 --> 00:24:18,840 Speaker 1: this takeover, We've got to hear from tellahr and WELB 428 00:24:18,880 --> 00:24:21,960 Speaker 1: Hammas In terms of strategy, how do you reduce the 429 00:24:22,000 --> 00:24:25,560 Speaker 1: investment bank? Where are the duplications wealth management asset management? 430 00:24:25,560 --> 00:24:28,760 Speaker 1: There is huge crossover in terms of human capital, in 431 00:24:28,880 --> 00:24:31,600 Speaker 1: terms of technology, and in terms of footprint. This is 432 00:24:31,640 --> 00:24:36,199 Speaker 1: going to mean a fundamental reassessment of two of the 433 00:24:36,200 --> 00:24:39,000 Speaker 1: biggest institutions in Switzerland, and that has a human cost 434 00:24:39,440 --> 00:24:42,200 Speaker 1: and indeed an economic cost. I'm going to have to 435 00:24:42,240 --> 00:24:45,600 Speaker 1: buy out of the conversation. Ladies and gentlemen. A busy 436 00:24:45,680 --> 00:24:50,800 Speaker 1: morning forgives me Alison Nathan off to a rooftop near you, 437 00:24:50,920 --> 00:24:54,160 Speaker 1: continuing the conversation on radio and on TV right now. 438 00:24:54,400 --> 00:24:56,640 Speaker 1: All right, I appreciate you coming on with us. Mannis 439 00:24:56,760 --> 00:24:59,480 Speaker 1: thanks for your coverage throughout the weekend. I hope we 440 00:24:59,520 --> 00:25:02,360 Speaker 1: can check in with you in the days to come 441 00:25:02,400 --> 00:25:06,400 Speaker 1: as we continue following this story. But as we conclude 442 00:25:06,440 --> 00:25:11,680 Speaker 1: this conversation with Alison Williams of Bloomberg Intelligence, Obviously we've 443 00:25:11,720 --> 00:25:18,199 Speaker 1: been talking about the the overlap and the potential for 444 00:25:19,320 --> 00:25:23,000 Speaker 1: future job cuts at Credit Suite and UVS. At our 445 00:25:23,040 --> 00:25:26,080 Speaker 1: last twenty seconds here, Allison, what are you looking for 446 00:25:26,280 --> 00:25:31,040 Speaker 1: to come next? I think we do need details on 447 00:25:31,080 --> 00:25:34,240 Speaker 1: the plan. It was clear from it it's clear that 448 00:25:34,320 --> 00:25:37,680 Speaker 1: this was a few day process, and it was clear 449 00:25:37,720 --> 00:25:40,120 Speaker 1: for management that they don't have a lot of the details. 450 00:25:40,160 --> 00:25:43,000 Speaker 1: In terms of some of the numbers that they put 451 00:25:43,040 --> 00:25:48,400 Speaker 1: out there, it seems like they could be conservative, but 452 00:25:48,440 --> 00:25:51,080 Speaker 1: we'll want to know more about exactly where the eight 453 00:25:51,119 --> 00:25:56,000 Speaker 1: billion cuts are coming from. Those cuts are being said 454 00:25:56,040 --> 00:25:59,480 Speaker 1: to execute through twenty twenty seven, so how much and 455 00:25:59,560 --> 00:26:03,480 Speaker 1: how are we going to see some of those reductions. 456 00:26:04,520 --> 00:26:07,600 Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the 457 00:26:07,640 --> 00:26:11,040 Speaker 1: stories making news from Wall Street to Washington and beyond. 458 00:26:11,320 --> 00:26:14,119 Speaker 1: Look for us on your podcast feed at six am 459 00:26:14,160 --> 00:26:17,840 Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you 460 00:26:17,920 --> 00:26:21,119 Speaker 1: get your podcasts. 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