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Speaker 1: This is Bloomberg Daybreak you for this Wednesday, the fifth

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Speaker 1: of April in London. Coming up today, Not guilty. Trump

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Speaker 1: pleads innocent as historic trial begins first day, Sergoe and

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Speaker 1: Matty returns as ubsco to manage the creation of a

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Speaker 1: new Swiss giant, and Bernard Arno's fortune tops two hundred

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Speaker 1: billion dollars. Business lobby and trouble ten railroad defense QE

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Speaker 1: and Macron is heading to Beijing. Those other stories we're

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Speaker 1: looking at in today's papers. And I'm Leanne Geron's plus

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Speaker 1: homes nowhere near the hammer. UK properties are taking twice

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Speaker 1: as long to sell. That's all straight ahead on Bloomberg

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Speaker 1: Daybreak Europe. The business news you need to start your

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Speaker 1: day in just one fifteen minute podcast on Apple, Spotify,

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Speaker 1: the Bloomberg Business App and everywhere you get your podcasts.

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Speaker 1: Good morning, I'm Caroline Heitke. Here are the stories we're

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Speaker 1: following today. Donald Trump pleaded not guilty in the first

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Speaker 1: trial against a former US president. He has been charged

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Speaker 1: with using payments to bury damaging information and boost his

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Speaker 1: electoral prospects. In twenty sixteen, the Manhattan District Attorney Alvin

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Speaker 1: Bragg held a press conference laying out the case. Donald Trump,

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Speaker 1: executives at the publishing company American Media Incorporated, mister Cohen,

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Speaker 1: and others agreed in twenty fifteen to a catch and

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Speaker 1: kill scheme, that is, a scheme to buy and suppress

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Speaker 1: negative information to help mister Trump's chance of winning the election. Bragg,

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Speaker 1: speaking there after the hearing in New York, prosecutors said

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Speaker 1: that Trump's quote irresponsible social media posts were also a

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Speaker 1: threat to the city as well as potential government witnesses.

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Speaker 1: For his part, Donald Trump held a vale defending his record.

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Speaker 1: The only crime that I have committed is to fearlessly

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Speaker 1: defend our nation from those who seek to destroy it,

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Speaker 1: the former present, speaking to supporters in Mara Lago. The

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Speaker 1: court case comes as Trump continues to seek reelection, and

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Speaker 1: he has sought to portray the case as politically motivated. Now,

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Speaker 1: ubsco Sergio Marty returns to lead the bank through an

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Speaker 1: unprecedented merger starting today. It comes after Credit Sweet's top

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Speaker 1: team met shareholders for their loss and your general meeting yesterday,

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Speaker 1: Chairman Axel Layman gave detailed remarks on the failure of

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Speaker 1: his bank and an apology. We stand here today in

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Speaker 1: the situation no one could have anticipated. It's a sad

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Speaker 1: day for you and for us too. I can understand

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Speaker 1: the bitterness, the anger and the shock of all those

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Speaker 1: who are disappointed, overwhelmed and affected by the development. In

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Speaker 1: that faithful week in March. Our plans were thwarted, and

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Speaker 1: for that I am truly sorry, credits USA's chairman ACXL. Layman,

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Speaker 1: speaking their Vara translator. UBS have their own AGM later today.

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Speaker 1: Their board facing quest is on how they plan to

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Speaker 1: integrate their former rival. And now to some central banking news,

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Speaker 1: the Cleveland Fed president Lauretta Mester says that interest rates

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Speaker 1: should not should not just go above five percent, but

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Speaker 1: that they should stay there for some time. I plan

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Speaker 1: to remain diligent in setting monetary policy, to ratrun the

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Speaker 1: economy to prostability in a timely way, and to be

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Speaker 1: judicious in balancing the risks so as to minimize the

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Speaker 1: pain of that journey. Mester there speaking at a New

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Speaker 1: York University event. She added that she doesn't expect policymakers

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Speaker 1: to cut interest rates this year. Here in the UK,

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Speaker 1: business confidences making a slight comeback in the first quarter

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Speaker 1: of the year that according to a new survey Bloomberg's

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Speaker 1: EU and Potts Reports now. The survey data from the

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Speaker 1: British Chambers of Commerce shows stubbornly high inflation is weighing

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Speaker 1: on spending decisions and adding to costs for companies. The

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Speaker 1: findings are a headache for Jeremy Hunt too, needs that

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Speaker 1: economic growth to boost tax revenues and help bring down

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Speaker 1: government borrowing. Some fifty two percent of businesses survey thought

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Speaker 1: their sales would rise over the next twelve months. That's

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Speaker 1: up from forty four percent in the previous quarter, but

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Speaker 1: only just over a third saw sales tick high in

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Speaker 1: the first three months of this year. The survey was

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Speaker 1: done before Hunt's budget last month, which attempted to encourage

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Speaker 1: business investment by offering a three year tax break to

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Speaker 1: firms in London. I'm you and pot S Blomberg Daybreak

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Speaker 1: Europe and now two Geopolitics. Emmanuel Macon will meet with

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Speaker 1: Shijingping in Beijing alongside the European Commission President Ursula Vonderline.

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Speaker 1: This will be doing a three day visit to China

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Speaker 1: that starts today. She is courting the French leader as

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Speaker 1: he tries to create some distance between Europe and the US.

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Speaker 1: Their approaches towards Beijing. Unusually, Macrol will have extensive time

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Speaker 1: with Sheet, including a trip outside of Beijing and at

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Speaker 1: Speaking of France, Banna Arno's fortune topped two hundred billion

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Speaker 1: dollars for the very first time according to Bloomberg's Billionaire Index.

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Speaker 1: The French tycoon behind the luxury goods powerhouse LVMH saw

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Speaker 1: his net worth increase to just over two hundred and

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Speaker 1: one billion dollars yesterday, a record high. So he joins

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Speaker 1: Elon Musk and Jeff Bezos, is the only billionaires to

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Speaker 1: have ever reached that milestone. LVMH's stock price is at

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Speaker 1: a record after announcing last month that it would buy

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Speaker 1: back as much as one point six billion dollars of

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Speaker 1: its own shares. Okay, those are a few of our

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Speaker 1: top stories and for you this morning. So at nine am,

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Speaker 1: the UBS will be holding their own annual general meeting

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Speaker 1: after the Credit Suite at AGM yesterday, so we're expected

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Speaker 1: to hear from the chairman, Colm Kelleher, who will be speaking,

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Speaker 1: also Ralph Harmers. As we see the first day of

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Speaker 1: this new CEO job actually now going to Sergio Amatti.

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Speaker 1: Of course, lots of lots of questions. I'm sure there

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Speaker 1: will be plenty of questions from shareholders. It's really their day,

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Speaker 1: isn't it. You know, how is UBS going to manage

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Speaker 1: the integration of Credit suis, Questions also about the Attorney

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Speaker 1: General probe, possibly about plans for the Swiss business or

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Speaker 1: any board changes are expected. Basically what does all of

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Speaker 1: this mean for shareholders? And surely there will be a

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Speaker 1: big question mark two about you know, how successful is

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Speaker 1: this integration going to be? And you know how much

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Speaker 1: should investors stay invested in UBS as this kind of

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Speaker 1: difficult moment begins. Really, I'll be speaking to Manus Cranny

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Speaker 1: later on this morning, who is in Basel and is

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Speaker 1: covering the UBS AGM. So that is key for market

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Speaker 1: watchers I think today in Europe. But also I like

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Speaker 1: this story Zoopla about UK house prices. Almost not a

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Speaker 1: day goes by without me mentioning this. But anyway, an

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Speaker 1: average of thirty five days now to agree a sale

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Speaker 1: of a UK home last month, that's according to the

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Speaker 1: Zooplar figures. It's about fifteen days longer than it took

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Speaker 1: last year. So that's a bit kind of gloomy. In London,

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Speaker 1: it's taking about forty one days to sell a property

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Speaker 1: versus twenty eight days in March twenty two, So that

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Speaker 1: shows you how much longer it takes to actually sell

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Speaker 1: your home. On the other hand, the bright spot is

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Speaker 1: that Zoopla thinks that the forecast of twenty twenty three

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Speaker 1: is a bit better that it's that you're actually going

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Speaker 1: to see more homes changing hands next year, so that

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Speaker 1: there'll be actually a pickup in terms of sales. But

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Speaker 1: it is taking longer at the moment to sell a

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Speaker 1: home or property in the UK. Okay, those are a

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Speaker 1: few of the stories that I'm thinking about now. I

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Speaker 1: want to get more details though about the thirty four

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Speaker 1: charges laid against the former president Donald Trump after his

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Speaker 1: appearance in a lower Manhattan court. Trump leaded not guilty

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Speaker 1: to the charges of falsifying business record calls it his

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Speaker 1: company relating to a one hundred and thirty thousand dollar

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Speaker 1: payment that his former lawyer, Michael Cohen made to the

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Speaker 1: porn star Stormy Daniels. Joining me now for more is

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Speaker 1: Bloomberg's well Bank. Derek, thank you so much for being

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Speaker 1: with us today. So what is at the heart of

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Speaker 1: this case? Because I played a little bit of the

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Speaker 1: district attorney. They're talking about, you know what is at

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Speaker 1: the center of this case against Donald Trump, Well, thank

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Speaker 1: you for having me. The basic facts of this case

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Speaker 1: are as alleged, are pretty straightforward. The prosecutor is suggesting

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Speaker 1: that Donald Trump paid hush money in a sort of

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Speaker 1: shell way to keep damaging information about himself out of

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Speaker 1: the public sphere ahead of the twenty sixteen presidential election.

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Speaker 1: The idea is that there were incorrect statements on his

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Speaker 1: business documents and intentionally so, and that that was in

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Speaker 1: aid of covering up something else. You put those two

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Speaker 1: things together and you get to the felony indictments, the

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Speaker 1: felony counts rather than just sort of one at a

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Speaker 1: time being a bit of a misdemeanor. But the whole

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Speaker 1: point of this, I think, not in the legal technicalities,

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Speaker 1: is that you do have the first former president to

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Speaker 1: be winding up in a courtroom in this fashion, all

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Speaker 1: the while he is currently the polling front runner in

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Speaker 1: the Republican race for the presidential nomination, and in a

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Speaker 1: process that is quite likely to stretch out through the

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Speaker 1: year and maybe into next year as well. And that

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Speaker 1: does not count other investigations that are currently going on.

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Speaker 1: Into former President Donald Trump that are not necessarily running

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Speaker 1: concurrently with this, but are running on their own schedules. Yeah.

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Speaker 1: I mean it's extraordinary, isn't it. What has the Trump

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Speaker 1: team said, the lawyers, but also Donald Trump himself again,

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Speaker 1: you know, he had a rally in Florida with his supporters.

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Speaker 1: But what do you sort of pick out as the

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Speaker 1: most important statements from them? Well, I think that the

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Speaker 1: Trump campaign has and I've covered Donald Trump since the

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Speaker 1: start of his political aspirations. This is a this is

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Speaker 1: somebody who has enjoyed and thrived. They believe in the

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Speaker 1: center of the political discussion. Donald Trump does not like

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Speaker 1: to campaign on the fringes of anything, and this is

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Speaker 1: keeping him front and center. They've raised a lot of money,

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Speaker 1: several million dollars since the indictment first got reported, and

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Speaker 1: Trump was everything you've come to expect from Donald's Trump

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Speaker 1: appearance at Marlago, he vocally denied the charges. He said

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Speaker 1: that it was political in nature. Um, you know, so

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Speaker 1: there was a lot of There was a lot of

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Speaker 1: that there. And I should also mention that Trump also

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Speaker 1: denies the underlying allegations, not just the charges, but there's

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Speaker 1: the affair and all of that um as well. Yes, yeah, well,

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Speaker 1: and I just want to sort of make that point then,

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Speaker 1: fading popularity versus fundraising. I mean, I've thought it's quite

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Speaker 1: interesting that one of our reporters picked out that trending

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Speaker 1: on Twitter yesterday was actually not Trump, but it was

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Speaker 1: Greta Gerwig's new Barbie movie. And so that perhaps, you know,

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Speaker 1: is the former president maybe fading. On the other hand,

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Speaker 1: as you say, huge merchandisey loads of political fundraising, it

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Speaker 1: seems on both sides going on related to this, well,

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Speaker 1: I think that you know, Trump is certainly right now

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Speaker 1: the polling front runner for the Republican presidential nomination, and

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Speaker 1: indeed we've seen his polling support actually increase a little

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Speaker 1: bit since the sin since the sort of stuff started

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Speaker 1: picking up. And that's really really important because if you're

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Speaker 1: if you're sort of looking at Donald Trump's trajectory, right,

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Speaker 1: the presidential primaries and the Republican parties start next year

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Speaker 1: in about February or so, and they proceed through for

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Speaker 1: a couple of months. Whoever wins that process gets to

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Speaker 1: take on Joe Biden most likely in the presidential election

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Speaker 1: in twenty twenty four. So whether someone you know whether

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Speaker 1: Donald Trump is irrelevant by metrics, he's on track to

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Speaker 1: achieve that. Now there are a host of other Republicans

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Speaker 1: who are looking to stop him and be president. The

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Speaker 1: presidential nominee themselves. Nicky Haley's declared. Asa Hutchinson, the former

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Speaker 1: government of Arkansas, has declared. Ron de Santis is the

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Speaker 1: big name that's out there, the former the current governor

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Speaker 1: of Florida, who has not yet signaled his intentions but

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Speaker 1: looks like for the world like he's going to run.

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Speaker 1: They all have to sort of contend with this story

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Speaker 1: as they're trying to launch their own campaigns, because again,

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Speaker 1: you're not just trying to say don't vote for this guy,

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Speaker 1: but a multi person field, you're trying to say vote

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Speaker 1: from me as well. And so Donald Trump right now,

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Speaker 1: you know, all the oxygen's on him, and so it'll

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Speaker 1: been really interesting to see how Republicans play this. So far,

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Speaker 1: there has been honestly quite a lot of support for

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Speaker 1: Trump from among elected Republicans. Yeah, okay, so this is

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Speaker 1: something that we will continue to watch. Derek, thank you

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Speaker 1: so much for being with me this morning, Blue begs

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Speaker 1: Derek Warbank. There on a former president Donald Trump and

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Speaker 1: his appearance in court in Manhattan yesterday. Thank you so

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Speaker 1: much for being with me. Coming up next, Business Lobby

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Speaker 1: in trouble. Tenrero defends quantitative easing and Macro heads to Beijing.

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Speaker 1: Now the Paper Review on blue birdday Break Europe. The

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Speaker 1: news you need to know from today's papers. Masically and

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Speaker 1: Gains joins me this morning in the Udo to discuss

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Speaker 1: the newspapers. Let's start with the Financial Times. So the

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Speaker 1: CPI Council's events as pressure mounts over workplace conduct, tell

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Speaker 1: us morlea, yes and d Caroline, good morning to you. So,

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Speaker 1: as you say, the CBI has canceled all of its events,

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Speaker 1: including its prestigious Animal Dinner, which does happen in May. Now,

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Speaker 1: the Ft is reporting that the group is battling to

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Speaker 1: reassure British businesses that it will take allegations of rape,

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Speaker 1: sexual harassment and other work placed misconduct seriously. Bloomberg is reporting,

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Speaker 1: Caroline that the new allegations do not relate to Tony Danker,

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Speaker 1: the Director General, who is stepped aside following unrelated claims.

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Speaker 1: The Guardian newspapers said it had been contacted by more

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Speaker 1: than a dozen women claiming to have been victims of

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Speaker 1: sexual misconduct at the CBI. The Ft and The Times

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Speaker 1: newspaper this morning are reporting that several big companies are

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Speaker 1: now reviewing their membership, while others are privately trying to

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Speaker 1: distance themselves. And this really comes as they wait for

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Speaker 1: the outcome of an investigation into these allegations which were

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Speaker 1: first which were first reported by the Guardian newspaper. And

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Speaker 1: just a few of those companies raising concerns are Rolls

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Speaker 1: Royce that said the allegations were deeply concerning, adding an

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Speaker 1: expected real action from any findings. Marks and Spencer said

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Speaker 1: it had written to the CBI interim director General, who

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Speaker 1: is Matthew Fell, to seek assurances that the allegations were

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Speaker 1: being taken seriously. But Caroline, one top executive at the CBI,

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Speaker 1: a member of the company, said the reluctance of some

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Speaker 1: businesses to quit the organization was because there was just

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Speaker 1: no alternative to the CBI. So this is where we

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Speaker 1: stand at the current moment. Okay, very interesting to understand

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Speaker 1: what's happen happening at the Confederation of British Industry then,

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Speaker 1: which is Britain's largest business lobby. So it is a

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Speaker 1: hugely important story. Thank you for tracking that for us

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Speaker 1: through all of the newspaper and Bloomberg reporting on the subject.

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Speaker 1: We'll keep you updated. I think that's the most important

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Speaker 1: thing I want to say to listeners on that front. Now.

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Speaker 1: The Telegraph our money printing spree did not cause inflation crisis.

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Speaker 1: Bank of England insists Yes. Indeed, Caroline so Sylvana Tenrero

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Speaker 1: is insisting that the billion pound bond buying program that

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Speaker 1: was designed to prop up the economy during those COVID

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Speaker 1: lockdowns has just been completely misunderstood. Now the BOE policymaker

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Speaker 1: says the money printing spree is not to blame for

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Speaker 1: the double digit inflation, Caroline that we are currently living

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Speaker 1: through and we're feeling in the shops, aren't we. And yes,

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Speaker 1: speaking at an annual conference yesterday, she really argued that

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Speaker 1: rising inflation has been caused by external shocks, which we've

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Speaker 1: heard many times before. We've even heard that echoed from

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Speaker 1: the YEE Governor Andrew Bailey, and she says things like

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Speaker 1: the war in Ukraine was unexpected and it's really weighing

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Speaker 1: on the global economy. But critics of QUEE argued that

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Speaker 1: it risks pushing up inflation by overheating the economy. And

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Speaker 1: Mervin King, the bank's former governor, has described liberal use

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Speaker 1: of the policy as an intellectual mistake. So he's been

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Speaker 1: speaking to the paper and this is exactly what he says.

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Speaker 1: The BAWE faced accusations of printing money directly for ministers

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Speaker 1: and Caroline, as I said, that was during the COVID crisis.

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Speaker 1: Remember the furlough scheme that came in to keep people

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Speaker 1: in their jobs at a time when they couldn't come

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Speaker 1: into officers and things were just so unsure around the

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Speaker 1: whole economy. The thing is, this is the debate though

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Speaker 1: in terms of you know, the government and around the

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Speaker 1: Bank of England about you know, whether que is inflationary

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Speaker 1: or not. I mean, look, UK inflation currently is at

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Speaker 1: ten point four percent. You've got people like the Bank

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Speaker 1: of English Teve economist Hugh pill who gave a speech yesterday,

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Speaker 1: you know, worrying about the self sustaining momentum of headline inflation.

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Speaker 1: And you know what does that mean? Yeah? I think

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Speaker 1: that is important and interesting. That is ten RaRo defending

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Speaker 1: that policy of course, and just one thing Caroline Bloomberg

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Speaker 1: Reporting also covered ten RaRo yesterday, but they really focused

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Speaker 1: on the fact that she's a central bank's most devish

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Speaker 1: policymaker and as warning that the UK is facing a

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Speaker 1: significant inflation undershoot after the BOE boosted its key lending

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Speaker 1: rate to four point two five percent at its most

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Speaker 1: recent meeting. Now we must also note the central bank

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Speaker 1: this was the eleventh straight hike, so we're also seeing

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Speaker 1: these really high prices when it comes to interest rates.

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Speaker 1: You know, may definitely still seems on the card to

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Speaker 1: another rate rise. This we don't often touch on La Monde,

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Speaker 1: but they say that Maco emphasizes business ties during visit

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Speaker 1: to Chinese, so I'm really interested that you brought me

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Speaker 1: a lovely French perspective. Often actually listened to the Lamande

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Speaker 1: podcast and they've got a piece on Macorn. What's their view, Lamande, Yes, Caroline,

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Speaker 1: I feel like we've not covered this French newspaper, but

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Speaker 1: it's got such an interesting story. As we know, after

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Speaker 1: three years of China's isolation, and that was due to COVID, Caroline,

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Speaker 1: they were restrictions were just so strict, weren't they. But

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Speaker 1: now it appears that business is firmly back on the agenda.

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Speaker 1: So the French president Immanuel Macron alongside European Commission President

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Speaker 1: Erschula Vonda Lyon. They're making their first trip to China

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Speaker 1: since twenty nineteen, and if my maths is right on

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Speaker 1: the spot, that's the first in four years now. According

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Speaker 1: to the French newspaper Lamande, politics will be at the

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Speaker 1: top of Macron's agenda, but one thing that's going to

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Speaker 1: be of utmost importance is French business. So after meeting

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Speaker 1: with the Premier Li Chiang and President Chijinping, Macron will

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Speaker 1: meet with Chinese investors in the south of the country. Now.

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Speaker 1: According to Bloomberg reporting, the plan to meet a world

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Speaker 1: leader at a second location outside the capital is really

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Speaker 1: rare for the Chinese President chi Jinping. He normally reserves

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Speaker 1: such honors for close friends like the Russian President Vladimir Putin,

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Speaker 1: according to what Bloomberg is saying, and apparently Shi Jimping

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Speaker 1: is going to be pulling out all the stops or

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Speaker 1: Macron as the leader tries to create some distance between

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Speaker 1: Europe and the US in their approach towards Beijing. So

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Speaker 1: that all happening today Macron and Erschla Vonder Lying heading

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Speaker 1: to China. Yeah, and they're going to arrive and land

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Speaker 1: there actually in the next few hours, we think, so

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Speaker 1: probably we'll be within our time here this morning on

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Speaker 1: Bloomberg Radio. No. It's interesting though that by saying that

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Speaker 1: Macron Vondelan are going to it's as if they are

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Speaker 1: getting the same status, but you kind of detect that

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Speaker 1: they really are not us. Vondeline gave that speech only

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Speaker 1: last week, so quite critical of China. So it's definitely

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Speaker 1: the state visit for Macron rather than Arsina Vondeline, and

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Speaker 1: he's the one who's getting all the FaceTime with Jing Ping.

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Speaker 1: You know, it's also taking a lot of business spent

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Speaker 1: along with him, and that's that's the that's the point

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Speaker 1: of tension. Though how much is it about business? How

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Speaker 1: much can it be about politics? I mean, it's and

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Speaker 1: the issue of Russia's war in Ukraine and China's um

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Speaker 1: support tacit support for it. That's yes, because we know

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Speaker 1: that chij and Ping has met with Vladimir Putins, which

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Speaker 1: is something that the world really kind of was a

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Speaker 1: bit you know, what is happening here in relation to

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Speaker 1: the war in Ukraine. So there's a lot of questions

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Speaker 1: surrounding this. But like you said, Macron to get a

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Speaker 1: real FaceTime with Hijin Ping. So we're going to see

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Speaker 1: what that all means. And I think he's there for

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Speaker 1: about three days, which is quite a long time. This

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

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

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

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

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Speaker 1: listen live each morning on London Dab Radio, the Bloomberg

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

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

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Speaker 1: Alexa play Bloomberg eleven thirty. I'm Caroline Heber. Join us

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Speaker 1: again tomorrow morning for all the news you need to

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Speaker 1: start your day right here on Bloomberg Daybreak Europe