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Speaker 1: By from a Bloomberg Interactive workers studios. This is Bloomberg

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Speaker 1: day Break for Wednesday, March twenty nine. Coming up today,

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Speaker 1: Ubs shares rally as the bank brings back Sergio or

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Speaker 1: Maddie as CEO. It's day two of bank hearings on

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Speaker 1: Capitol Hill, a debt ceiling showdown. President invited in speaker

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Speaker 1: McCarthy exchange demands and calls for tighter gun control. Follow

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Speaker 1: the Nashville school shooting, there's a rise in anti Semitic

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Speaker 1: incidents in New York and New Jersey. Plus, Ukraine's president

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Speaker 1: says he has invited the leader of China to his country.

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Speaker 1: I'm Michael barn Or Ahead, I'm Tom Stashdown towards the

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Speaker 1: Rangers day hot with a win over Columbus at the

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Speaker 1: Garden where the NIXT tonight played Miami. The NNS host Houston.

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Speaker 1: That's all straight Ahead on Bloomberg day Break. The business

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Speaker 1: news you need disturn your day in just one fifteen

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Speaker 1: minute podcast each pointing on Apples, Spotify, The Bloomberg Business

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Speaker 1: Appen everywhere you get your podcasts. Good morning, I'm Nathan

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Speaker 1: Hager and I'm kieron Moscow. Here are the stories we're

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Speaker 1: following today, we begin with a changing of the guard

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Speaker 1: at UBS. The bank is bringing back a familiar face.

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Speaker 1: Sergio er Maati is returning as CEO to oversee the

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Speaker 1: acquisition of Credit Suisse. We get more from Bloomberg's Francine Laquais.

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Speaker 1: Serge or Maudi has been considered maybe one of the

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Speaker 1: most talented bankers of his generation. He knows UBS intimately,

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Speaker 1: he was chief executive there for nine years. And actually

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Speaker 1: the task of putting these two huge, systemically important banks

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Speaker 1: together and selling off Kurtis Sweets very fast in terms

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Speaker 1: of what they want to keep from Summer strategy is

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Speaker 1: not something that's going to be easily done. They want

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Speaker 1: to make sure that they get the strategy right. I

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Speaker 1: guess recognize and maybe this comes from the chairman how

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Speaker 1: big the task is. And Serger Mati knows UBS intimately,

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Speaker 1: and because Kurtis Sweet was his biggest rival, maybe also

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Speaker 1: he has insight into how to unwind parts of the

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Speaker 1: investment bank that will be the hardest. Bloomberg's Francine Lakwise

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Speaker 1: says Ermadi will replace Ralph Hammers, who's been running UBS

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Speaker 1: for just over two years and right now shares of

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Speaker 1: ubs are hired by nearly two percent this morning, and Nathan,

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Speaker 1: we're already hearing from the incoming CEO. Sergio er Maudi

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Speaker 1: spoke at a news conference this morning in Zurich war

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Speaker 1: Comblance Today. Together Mighty, we were work and do everything

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Speaker 1: the face to make distransactions successfully. Sergio er Maudi says,

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Speaker 1: it'll work hard to make sure that tie up avoids

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Speaker 1: in negative consequences for Swiss taxpayers. Well back here in

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Speaker 1: the US, Karen, we're getting ready for day two of

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Speaker 1: bank hearings on Capitol Hill and we get the latest

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Speaker 1: live with Bloomberg. Steve Rappaport. Good morning, see you. Good morning,

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Speaker 1: Nathan and Karen. If yesterday's hearing in the Senate is

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Speaker 1: an indicator, officials can expect another grilling in the House

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Speaker 1: about recent failures like the implosion of Silicon Valley Bank.

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Speaker 1: FED Vice chair Michael Barr says members are considering stronger

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Speaker 1: bank rules, but also blamed SVB executives for the mess.

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Speaker 1: SPB failed because the bank's management did not effectively manage

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Speaker 1: its interest rate and liquidity risk. Banking Committee Chairman Shared

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Speaker 1: Brown says the fed's predecessors also bear responsibility. They greenlighted

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Speaker 1: those banks to grow and grow and grow too big,

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Speaker 1: too fast. Ranking Republican Tim Scott blasted regulators, saying they

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Speaker 1: appear to have been asleep at the wheel. Live in

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Speaker 1: New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,

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Speaker 1: Thanks well. Jamie Diamonds in the news this morning. Sources

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Speaker 1: tell us the JP Morgan's CEO will be questioned over

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Speaker 1: his banks ties to Jeffrey Epstein. We get the details

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Speaker 1: lie from Bloomberg's John Tucker. John and Karen Diamond will

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Speaker 1: have to sit for a deposition and answer questions over

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Speaker 1: his bank's ties to the accused sex trafficker. Epstein was

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Speaker 1: JP morgan client for five years after he pleaded guilty

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Speaker 1: to soliciting a minor for prostitution. Two lawsuits claim JP

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Speaker 1: Morgan benefited from human trafficking and ignored internal warnings about

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Speaker 1: its client's behavior. JP Morgan lawyers argued Diamond had no

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Speaker 1: involvement in decisions about Epstein's accounts. Live in New York.

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Speaker 1: I'm John Tucker, Bloomberg Daybreak. Thank you, John. The debt

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Speaker 1: ceiling is back and focus at the White House, President Biden,

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Speaker 1: House Speaker Kevin McCarthy are going back and forth with

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Speaker 1: demands for negotiations. Amy Morris has the details from our

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Speaker 1: Bloomberg ninety nine one newsroom in Washington. McCarthy demanded the

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Speaker 1: President begin negotiations over the dead ceiling with a list

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Speaker 1: of spending cuts and regulatory changes. The President responded with

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Speaker 1: a challenge for Republicans to propose a budget before the

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Speaker 1: Easter recess. In a letter to McCarthy posted online by

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Speaker 1: the White House, the President says the GOP plan could

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Speaker 1: help them lay the framework for a conversation in April.

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Speaker 1: Republicans have already said they'd missed their mid April deadline.

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Speaker 1: Biden indicated there would be little to discuss if Republicans

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Speaker 1: don't release a full budget in Washington. I'm Amy Morris,

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Speaker 1: Bloomberg Daybreak. All right, Amy, thanks well. There's also news

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Speaker 1: on the investigation into the January sixth insurrection. Former Vice

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Speaker 1: President Mike Penns has now been ordered to testify before

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Speaker 1: a grand jury looking into the event, and Bloomberg said

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Speaker 1: Baxter has the story. Mister Penns had been subpoened by

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Speaker 1: Special Counsel Jack Smith earlier in the year. Pence using

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Speaker 1: the novel argument that he was acting as a legislative

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Speaker 1: officer and that separation of powers would prevent that subpoena

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Speaker 1: from being enforced. Pence has said that it runs against

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Speaker 1: literally hundreds of years of not only American law, but

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Speaker 1: common law, and that he would argue all a way

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Speaker 1: to the Supreme Court. While he may have a chance

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Speaker 1: to do that now, this order is from a US

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Speaker 1: district court. Neither side has commented. In San Francisco, I'm

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Speaker 1: at Baxter Bloomberg Daybreak, thank you. Ed in the fallout

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Speaker 1: from this week's shooting in Nashville continues, President Biden is

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Speaker 1: now looking for momentum on gun legislation. He says he

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Speaker 1: intends to expose lawmakers who stand in the way. The

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Speaker 1: President says the Second Amendment is not absolute. You can't

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Speaker 1: own a Mazuka. You can't mean it's just I mean,

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Speaker 1: there's nothing absolutely about any amendment. And this is ridiculous

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Speaker 1: and self all about money, big, big, big money. A

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Speaker 1: new gun restrictions are not likely to pass a Republican

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Speaker 1: controlled Congress. In the interests of transparent seem we should

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Speaker 1: note that Michael Bloomberg, the founder and majority owner of

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Speaker 1: Bloomberg LP, the parent of Bloomberg Radio, donates to groups

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Speaker 1: that support gun controls. Forty one degrees in New York.

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Speaker 1: It will be mostly sunny today, headed to the low fifties.

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Speaker 1: Could see some showers this evening. As we get down

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Speaker 1: to the low thirties, time out look at some of

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Speaker 1: the other stories making news in New York and around

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Speaker 1: the world. For that, we turned to Bloomberg's Michael Bark

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Speaker 1: and Morning Michael, Good Morning Nathan. The NYPD is looking

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Speaker 1: for two suspects who drew anti Semitic symbols on the

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Speaker 1: building in New York City. Police say the suspects approach

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Speaker 1: to building in the Civic Center in Lower Manhattan and

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Speaker 1: drew three anti Semitic symbols on the window with red

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Speaker 1: paint before fleeing. The incident comes as the Anti Defamation

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Speaker 1: Leagues or In Siegel says, anti Semitic incidents nationwide we're

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Speaker 1: up last year. We documented three thousand, six hundred and

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Speaker 1: ninety seven anti Semitic incidents in two twenty two, which

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Speaker 1: is not only a thirty six percent increase from the

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Speaker 1: previous year, but the highest number of incidents reported to

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Speaker 1: ADL since nineteen seventy nine. Or In. Siegel with the

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Speaker 1: Anti Defamation League says visibly Orthodox Jews were targeted in

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Speaker 1: more than half of all assault incidents nationwide. Ukrainian President

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Speaker 1: Vladimir z Lenski is warning that his nation must win

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Speaker 1: a drawn out battle in the key eastern city of Bakmut.

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Speaker 1: Zelenski says otherwise Russia could begin building international support for

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Speaker 1: a deal that could require Ukraine to make unacceptable compromises. Zelenski,

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Speaker 1: speaking with the Associated Press, says that if Russia takes Bakmut,

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Speaker 1: Putin would sell this victory to the West as well

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Speaker 1: as China and Iran. Zelenski also invited the leader of

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Speaker 1: China to visit Ukraine. I want to speak with him

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Speaker 1: and because I have had contact with him before full

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Speaker 1: scale war. China has long been aligned with Russia and

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Speaker 1: has taken a position of neutrality in the war. President

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Speaker 1: Zelenski says he's also concerned the war could be impacted

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Speaker 1: by shifting political for Susan Washington. He says, if the

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Speaker 1: US stops helping the US stops helping us, we will

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Speaker 1: not win. Police say a New York driver of a

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Speaker 1: tractor trailer that hit a van alongside an interstate in

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Speaker 1: East Tennessee, killing four people who were changing a tire

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Speaker 1: and critically injuring another was impaired. Kingsport Police say the driver,

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Speaker 1: sixty year old Sal Carrera, was driving a tractor trailer

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Speaker 1: south on Interstate eighty one Sunday when the vehicle veered

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Speaker 1: to the right onto the shoulder and sideswiped the van,

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Speaker 1: hitting five males who were trying to repair the tire. Afterward,

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Speaker 1: the tractor trailer continued south for a short distance before

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Speaker 1: jack knifing and overturning. Global News twenty four hours a day,

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Speaker 1: powered by more than twenty seven hundred journalist and analysts

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Speaker 1: over one hundred twenty countries. A Michael Barr, This is Bloomberg, Nathan.

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Speaker 1: Thanks Michael. Time now for our Bloomberg Sports update. Good morning,

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Speaker 1: John Stashow, Good morning, Nathan. Looks like the Rangers are

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Speaker 1: going to play the Devils to start the Stanley Cup.

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Speaker 1: We off. They are battling to see who'll have full

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Speaker 1: ice all. The Rangers have a slightly better road record

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Speaker 1: than at home, and the Devil's road record is significantly better.

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Speaker 1: Rangers two points behind after a six two win over Columbus.

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Speaker 1: Six different goal scorers the Blue Shirts were up three

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Speaker 1: nothing only eight minutes in. At the Garden tonight it's

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Speaker 1: the Knicks and the Heat, and the Nets will be

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Speaker 1: rooting for the Knicks. Brooklyn's in a battle with Miami

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Speaker 1: to finish sixth in the East. That's significant. It means

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Speaker 1: avoiding being in the play in the Heat. Just lost

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Speaker 1: at Toronto. They're a half game behind the Nets, who

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Speaker 1: tonight host Euston. Big names named for induction the Basketball

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Speaker 1: Hall of Fame Dwyane Wade, drf Navitsky, pal Gasol, Tony Parker,

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Speaker 1: and Parker's coach in San Antonio's Gregg Popovitch. The NI

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Speaker 1: no longer finishing at the Garden like it did every

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Speaker 1: year but one since nineteen thirty eight in Vegas. Two

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Speaker 1: point semifinal wins for Alabama, Birmingham and North Texas. So

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Speaker 1: the final has two teams from Conference USA that's the

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Speaker 1: same league. It also has Florida Atlantic, who's in the

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Speaker 1: NC Double A Final. Four. Baseball season begins tomorrow with

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Speaker 1: a pitch clop. The commissioners Rob Manfred it's still an

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Speaker 1: o'clock in the sense that the end of the game

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Speaker 1: isn't determined by any timing the game ends naturally, just

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Speaker 1: like it always has, and I see the pitch timer

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Speaker 1: is sort of a small change to move things along

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Speaker 1: the times. For spring training games, we're down Mets open

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Speaker 1: in Miami, the Yankees host the Giants. The Indianapolis Colts

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Speaker 1: believed to be the only NFL team making any attempt

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Speaker 1: to acquire Lamar Jackson from Baltimore. The quarterback has asked

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Speaker 1: for a trade. John Stashawer Bloomberg Sport live from coast

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Speaker 1: to coast, from New York to San Francisco, Boston to Washington, DC,

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Speaker 1: nationwide on Sirius xamp, the Bloomberg Business app, and Bloomberg

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Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan

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Speaker 1: Hagar on a morning where the new boss is the

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Speaker 1: same as the old boss. At UBS, the Swiss Megabank

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Speaker 1: is bringing back Sergio Armadi to take the helm as

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Speaker 1: CEO and navigate the complicated takeover of longtime UBS rival

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Speaker 1: Credit Suis for more on what this means for the

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Speaker 1: future of Swiss banking and the financial sector as a whole.

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Speaker 1: We are very pleased to be joined this morning by

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Speaker 1: Paul Davies, who writes about global banking for Bloomberg Opinion. Paul,

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Speaker 1: good morning, Thanks so much for being with us. Should

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Speaker 1: we see this as a steady hand returning to navigate UBS.

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Speaker 1: I think we should say this as you know, UBS

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Speaker 1: solving a bunch of problems at once. I mean, what

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Speaker 1: it really needs is it's got this hugely complicated integration

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Speaker 1: to now do. Sergio Amatti, the returning chief executive, you know,

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Speaker 1: has a huge amount of experience in restructuring UBS's own

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Speaker 1: investment bank, you know, after the last financial christ in

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Speaker 1: two thousand and eight. And at the same time, there's

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Speaker 1: a lot of kind of there's cultural issues within the

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Speaker 1: bank where you need a kind of you know, a

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Speaker 1: much more kind of statesmanlike leader who can kind of

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Speaker 1: win the confidence of all of the people that work

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Speaker 1: for UBS and those at Credit squeets that UBS wants

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Speaker 1: to keep. And there's also this, you know, the relation

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Speaker 1: with the government and other authorities in Switzerland, and really

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Speaker 1: the Swiss Populace is going to be pretty important here

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Speaker 1: as well, because this deal, it's a huge bank in Switzerland,

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Speaker 1: and there are these kind of outstanding you know, government

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Speaker 1: guarantees that were put in place to sort of support

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Speaker 1: the takeover that that taxpayers will want to see you know,

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Speaker 1: protected as much as possible. And clearly Urmadi has a

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Speaker 1: deep history with ubs and with the restructuring at the

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Speaker 1: investment bank, why could that mean for the investment bank

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Speaker 1: a credit suite. There's been a lot of talk about

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Speaker 1: that portion of the credit suie business getting unwound completely. Yeah, well,

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Speaker 1: they've been quite clear that they're going to reduce the

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Speaker 1: risk of that business dramatically reduce what it does and

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Speaker 1: how it does it as well. It's it's still very

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Speaker 1: unclear exactly what they're going to get rid of, you know,

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Speaker 1: the kind of the Anecdotally, the conversation seemed to be around,

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Speaker 1: you know, they want to keep a lot of the

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Speaker 1: you know, M and A and maybe kind of capital

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Speaker 1: markets bankers, particularly in areas where their UBS itself has

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Speaker 1: less expertise. So in the US, in some of um,

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Speaker 1: you know, the more fashionable sectors like tech and pharmaceuticals

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Speaker 1: and technology UM healthcare rather and UH, and then in

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Speaker 1: some of the other areas as well, like leverage finance,

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Speaker 1: which was a great you know, strength of credit. SUBS

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Speaker 1: might also keep some of those people in some of

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Speaker 1: that business, but a lot of the markets business, particularly

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Speaker 1: on the fixed income side, which is you know, trading

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Speaker 1: of you know, rates products, government bonds, a lot of that,

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Speaker 1: you know, very large balance sheet intensive flow business that

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Speaker 1: UBS itself got out of for the most part, you know,

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Speaker 1: a decade ago. A lot of that will be cut

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Speaker 1: and that's that's a huge portion of of what of

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Speaker 1: some of the business that Credits We still had its

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Speaker 1: interesting as well to hear from the chairman at UBS

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Speaker 1: com callaher during the news confer and saying that there

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Speaker 1: is a concern about keeping a bad culture from Credit

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Speaker 1: Suite from being imported into UBS under Ramadi's tenure. How

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Speaker 1: big a concern is that the problems that Credit Suite

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Speaker 1: and what led to its collapse could bleed over into ubas. Yeah, well,

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Speaker 1: this is something they're going to have to be very

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Speaker 1: careful of. You know, Credits We's had a lot of problems.

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Speaker 1: It had a lot of you know, it's kind of

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Speaker 1: it's it's risk management side and its compliance side, I

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Speaker 1: guess was sort of you know, whittled down under the

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Speaker 1: pressure of cost cutting. You know, this is one of

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Speaker 1: the things that we learned from the very long and

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Speaker 1: interesting report that was released by lawyers that credits. We

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Speaker 1: shired to look into how exactly it lost you know,

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Speaker 1: more than five billion dollars on the collapse of Archagos,

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Speaker 1: the kind of the family office come hedge fund that

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Speaker 1: sort of failed in the in the beginning of twenty

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Speaker 1: twenty one and so and then aside from that as well,

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Speaker 1: it's it's also had you know, plenty of other issues

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Speaker 1: as well, not only in the investment bank, but in

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Speaker 1: the wealth business. And you know, UBS will I mean,

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Speaker 1: it's worked very hard since the financial crisis to you know,

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Speaker 1: rationalize itself and get itself into a position where it's

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Speaker 1: kind of trusted by investors. It was well functioning, it

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Speaker 1: was returning capital. You know, it still had some issues

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Speaker 1: as well itself, but you know, it will be working

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Speaker 1: very hard to kind of to ensure that it only

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Speaker 1: picks the very best people with the best motivations from

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Speaker 1: Credit Suis and doesn't pollute its own culture. I think

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Speaker 1: about thirty seconds left here, Paul, why not Ralph Harmers?

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Speaker 1: Was there a loss of confidence for him at UBS?

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Speaker 1: I think the thing with Ralph is that he it

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Speaker 1: was always you know, something of a concern that he

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Speaker 1: didn't really have the experience of running a large investment

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Speaker 1: bank anyway. You know, running a large investment bank. Integration

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Speaker 1: is another layer of difficulty on top of that. And

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Speaker 1: I think also just in terms of, as I say,

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Speaker 1: keeping the Swiss authorities, and you know, this deal has

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Speaker 1: been very unpopular in Switzerland as well among people. Keeping

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Speaker 1: those people happy. You need somebody who can be very

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Speaker 1: convincing to the Swiss people, who can kind of talk

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Speaker 1: their language, as it were, and who has this kind

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Speaker 1: of more polished and statesmanlike kind of presentation and presence,

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Speaker 1: which Sergio definitely has. This is Bloomberg Daybreak Today, your

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