WEBVTT - Odey Recording, UBS Probe & A Rewilding Bet

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<v Speaker 1>Good morning.

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<v Speaker 2>It's Thursday, the twenty eighth of September here in London.

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<v Speaker 2>This is the Bloomberg Day ba Q podcast. I'm Caroline Hepki.

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<v Speaker 3>And I'm Stephen Carroll. Coming up today, exclusive reporting on

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<v Speaker 3>the ousted hedge fund manager chrispin Odi, who's been joking

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<v Speaker 3>about his accusers in taped conversations.

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<v Speaker 2>The US Department of Justice steps up it's probe into

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<v Speaker 2>ubs over suspected sanctions, breaches by credit sweets.

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<v Speaker 3>And taking a walk on the wild side. We look

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<v Speaker 3>at one investor's bid to make rewilding a multi billion

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<v Speaker 3>dollar trade.

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<v Speaker 1>Let's start with a round up of our top stories.

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<v Speaker 3>The ousted Headphones manager chrispin Ody had told a private

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<v Speaker 3>investigator he was being targeted by the quote woke brigade

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<v Speaker 3>when thirteen women first accused him of sexual misconduct. Bloomberg's

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<v Speaker 3>Will Shaw obtained a recording of that conversation.

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<v Speaker 4>In late June, a couple of weeks after the allegations began,

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<v Speaker 4>he contacted a private investigator called Steph Friedman, who previously

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<v Speaker 4>done work for Harvey U. Weinstein. Crispin Odi speaks very

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<v Speaker 4>frankly about the case against him. He says Harvey had

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<v Speaker 4>access to a lot of so much more attractive girls.

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<v Speaker 4>I have to tell you. During that call, he says,

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<v Speaker 4>if you lose an arm, you only get ten grand.

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<v Speaker 4>You know, if someone touches you on the bottom, you

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<v Speaker 4>might be able to get one hundred grand. He also

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<v Speaker 4>complains about his treatment by the media and says he's

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<v Speaker 4>been targeted by the woke brigade.

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<v Speaker 3>Speaking to Will Shaw about the recording, Crispin Odi said, quote,

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<v Speaker 3>it was very early in that journey, but I still

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<v Speaker 3>think reducing seventeen minutes to three soundbites is mean. He

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<v Speaker 3>declined to discuss the situation further with Bloomberg. Two of

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<v Speaker 3>the hedge fund managers alleged victims have filed a lawsuit

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<v Speaker 3>against him and his former firm. Odi refutes those claims

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<v Speaker 3>and the other allegations that have been leveled against him.

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<v Speaker 2>The US Department of Justice has stepped up its probe

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<v Speaker 2>into credit suiteson ubs over suspected compliance failures that allowed

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<v Speaker 2>Russian clients to evade sanctions. Bloomberg's Hugo Miller broke the story.

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<v Speaker 5>When you're onboard to use the bank jargon a client,

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<v Speaker 5>or when you off board a client, you have to

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<v Speaker 5>make sure that you're doing the necessary compliance and in

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<v Speaker 5>this case, as we've seen in a number of other

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<v Speaker 5>cases with credit suites, in this case, what the DOJ

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<v Speaker 5>suspects is that there were just some fundamental failures of

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<v Speaker 5>due diligence that allowed the bank, primarily Credit Squeze, to

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<v Speaker 5>continue to provide banking services for sanctioned Russians.

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<v Speaker 2>Hugo Miller says that the probe is still at an

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<v Speaker 2>early stage and may not result in charges or a settlement. However,

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<v Speaker 2>that wasn't enough to prevent volatile moves in UBS's share price,

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<v Speaker 2>which dropped by close to eight percent before recovering some

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<v Speaker 2>of those losses.

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<v Speaker 3>The world's most indebted property developer, the China Evergrand Group,

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<v Speaker 3>has suspended trading in Hong Kong with more here's Bloomberg's

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<v Speaker 3>Brian Curtis.

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<v Speaker 6>No reason given for the halt. It comes a day

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<v Speaker 6>after sources told us Evergrant's chairman Hui Kai Jan was

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<v Speaker 6>taken away by police, where he is said to be

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<v Speaker 6>under residential surveillance. It comes at a delicate time for

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<v Speaker 6>the big developer. Evergrand has scrapped key creditor meetings and

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<v Speaker 6>revealed that it cannot issue new bonds. That's a setback

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<v Speaker 6>to a planned restructuring and would seem to suggest an

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<v Speaker 6>existential crisis in Hong Kong. Brian Curtis, Bloomberg Radio.

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<v Speaker 2>The SEC is reportedly finalizing settlements with about two dozen

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<v Speaker 2>Wall Street firms to resolve investigations into lapses in record keeping.

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<v Speaker 2>Reuter's site sources saying that these settlements are with the

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<v Speaker 2>investment advisors and broker dealers. Fines have already topped two

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<v Speaker 2>point five billion dollars over the regulators two year crackdown

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<v Speaker 2>on traders uses of WhatsApp and other unofficial messaging apps.

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<v Speaker 3>A shutdown of the US government looks increasingly likely, with

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<v Speaker 3>Speaker of the House Kevin McCarthy calling for major changes

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<v Speaker 3>to border policy to appease his rebels. Even his Senate ally,

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<v Speaker 3>Mitch McConnell drew a line.

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<v Speaker 7>But we're focusing on on here in the Senate is

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<v Speaker 7>to try to keep the government open, to try to

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<v Speaker 7>continue to pay the people who are essential to our security,

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<v Speaker 7>like air traffic controllers at a border patrol. Capital belize.

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<v Speaker 3>McConnell's and McCarthy's lack of unity makes any deal with

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<v Speaker 3>the President unlikely the government will start to run out

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<v Speaker 3>of funding on Sunday. Unlike the deathlimit crisis earlier this year,

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<v Speaker 3>the economic damage is initially mild and builds over time.

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<v Speaker 2>Now a report suggests that UK home buyers are grabbing

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<v Speaker 2>the biggest discounts in five years as the market reels

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<v Speaker 2>from high interest rates.

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<v Speaker 1>Bloomberg's U and Potts has more The.

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<v Speaker 8>Average discount to asking price for newly agreed home sales

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<v Speaker 8>is now nearly five percent in London and Southeast England

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<v Speaker 8>as buyas flexen negotiating power. According to property website Zuopler.

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<v Speaker 8>That's the highest in the country and compares with the

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<v Speaker 8>discount of two point eight percent for sales elsewhere. Separate

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<v Speaker 8>survey data from KPMG suggests more than twenty percent of

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<v Speaker 8>UK mortgage helders are now considering selling up off the

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<v Speaker 8>rapid rise in borrowing costs in London. I'm une pots

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<v Speaker 8>Bloomberg Radio.

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<v Speaker 3>Apple iPhone fifteen pro users are complaining that the device

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<v Speaker 3>can get too hot to handle, setting a potential setback

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<v Speaker 3>for the company's flagship product. Consumers say that the high

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<v Speaker 3>temperatures and the newest iPhone fifteen models happened during use

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<v Speaker 3>or while charging. Apple says the issue could stem from

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<v Speaker 3>the iPhone's intensive setup process. Now, we haven't had pandas

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<v Speaker 3>in the news for a while, which I think is

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<v Speaker 3>a terrible shame, frankly, But our colleagues have a fascinating

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<v Speaker 3>story about how all of the pandas in American zoos

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<v Speaker 3>are going back to China because they're all there on loan,

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<v Speaker 3>part of panda diplomacy, as it was known. But their

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<v Speaker 3>time essentially is up, and by December, the likes of

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<v Speaker 3>the three pandas that are in the Washington National Zoo

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<v Speaker 3>are going to be going back to China.

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<v Speaker 7>Yeah.

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<v Speaker 2>I mean, if you are a panda lover, of course

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<v Speaker 2>you'll know that the Edinburgh Zoo has the same is

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<v Speaker 2>it's going to send back two pandas at the end

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<v Speaker 2>of this year. Also, I mean basically it's there is

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<v Speaker 2>a question mark about I mean, we know that panda

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<v Speaker 2>diplomacy is used by China to sort of reward friends

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<v Speaker 2>and perhaps punish foes. So how much is this about

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<v Speaker 2>US China relations and how much is it simply you know,

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<v Speaker 2>part of the contractual agreement. I did not actually understand

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<v Speaker 2>that all pandas in the world actually belonged to China

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<v Speaker 2>and all of their offspring, and they're effectively sort of

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<v Speaker 2>given to zoos around the world because they're a huge

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<v Speaker 2>attraction for visitors, you know, that cuddly and lovable as

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<v Speaker 2>they are, but actually and yes, huge merchandising opportunities, but

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<v Speaker 2>they're effectively rented. The zoos have to pay China, you know,

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<v Speaker 2>for the pleasure of hosting them.

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<v Speaker 1>And so yeah.

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<v Speaker 2>Although of course, when the producer this morning asked me

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<v Speaker 2>about pandas or we discussed, I just thought he was

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<v Speaker 2>talking about panda bombs.

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<v Speaker 9>I didn't.

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<v Speaker 2>I clearly am too deep into finance.

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<v Speaker 3>This is to come back to Caroline. You've gone over

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<v Speaker 3>the cliff. Come back right. Let's start to the story

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<v Speaker 3>that we're following for you this morning, and this is

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<v Speaker 3>the news around Ubs, their shares declining by as much

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<v Speaker 3>as seven point nine percent after Bloomberg reported that the

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<v Speaker 3>US Department of Justice had stepped up its probe into

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<v Speaker 3>Credit Suite and Ubs over suspected compliance failures that allowed

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<v Speaker 3>Russian clients to evade sanctions. Joining US now to explain

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<v Speaker 3>the story is Boomberg Swiss banking reporter Marion have Tomorrow.

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<v Speaker 3>Marion Great to have you with us on this story.

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<v Speaker 3>Explain to us how did the Department of Justice probe

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<v Speaker 3>begin morning.

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<v Speaker 9>Yes, So, basically, back in the spring of this year,

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<v Speaker 9>the Department of Justice had been already looking into the

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<v Speaker 9>Swiss banks and their roles with Russian assets and whether

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<v Speaker 9>there was potential breaches of excasions at the time, and

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<v Speaker 9>so essentially at the time they sent a series of

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<v Speaker 9>subpoenas just to get more information. And what we understand

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<v Speaker 9>is that that now has developed into a big, your

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<v Speaker 9>wider scale investigation and more specifically into Credits Suite.

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<v Speaker 1>So what do we know about it so far? What

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<v Speaker 1>are the risks attached?

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<v Speaker 9>So at the moment, it looks like it's just information gathering.

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<v Speaker 9>UBS has been briefed by the DOJ in the US

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<v Speaker 9>because of course UBS now owns Credit Suite, and so

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<v Speaker 9>it's just an ongoing inquiry.

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<v Speaker 6>We're not sure.

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<v Speaker 9>Exactly what parts of the businesses are looking at and

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<v Speaker 9>what exactly they've found so far, but we do know

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<v Speaker 9>that they're looking into possible compliance failures at both banks

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<v Speaker 9>and that would obviously come with.

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<v Speaker 5>With very serious consequences if they had been find that.

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<v Speaker 3>Marrying this news under lines read the legal headaches that

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<v Speaker 3>UBS has after its hasty merger with Credit Suit.

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<v Speaker 6>It does in some instances.

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<v Speaker 9>So UBS has had a good look at the dockets

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<v Speaker 9>so to speak, of Credit Suite legal cases and potential

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<v Speaker 9>legal cases, and so part of when they bought Credit

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<v Speaker 9>Suite they did do some provisioning for some of these

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<v Speaker 9>legal cases. From from what I expect, UBS is somewhat

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<v Speaker 9>aware of the high risk here. That being said, since

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<v Speaker 9>this is an ongoing inquiry, they don't necessarily have an

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<v Speaker 9>idea of the size and scale of what this means

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<v Speaker 9>for credits wesed legally and what it means for themselves legally.

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<v Speaker 9>So it does underscore one of the challenges of this

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<v Speaker 9>very complicated merger.

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<v Speaker 2>What about government relations. You report some frustration actually on

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<v Speaker 2>a government level, more around the Swiss authorities.

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<v Speaker 9>Yeah, so historically the US and Swiss geopolitically have not

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<v Speaker 9>always seen eye to eye when it comes to the banks.

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<v Speaker 9>You'll you'll remember, you know, there was a series of

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<v Speaker 9>tax of Asian settlements with the Swiss banks over US

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<v Speaker 9>citizens hiding money in Switzerland to US taxes. So there

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<v Speaker 9>have been frustrations in the past on Swiss Swiss banks

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<v Speaker 9>sort of cooperating with authorities in the US over issues

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<v Speaker 9>like this, and so it looks like there's targeting bilateral

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<v Speaker 9>conversations with the banks directly for the moment rather than

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<v Speaker 9>going through government government routes. And you know, the Swiss

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<v Speaker 9>haven't necessarily done everything that the US could expect them

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<v Speaker 9>of them to, you know, make sure these sanctions against

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<v Speaker 9>Russia have been enforced.

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<v Speaker 3>What has the Bank said about all of this?

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<v Speaker 4>So the bank.

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<v Speaker 9>Doesn't generally comment on these these types of investigations, but generally,

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<v Speaker 9>from what we understand, UBS has been cooperating with any

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<v Speaker 9>request that GJ has had. And you know they'll be

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<v Speaker 9>quite keen to make sure that they that they come

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<v Speaker 9>to a good resolution on this, because that would be

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<v Speaker 9>problematic otherwise.

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<v Speaker 1>Yeah.

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<v Speaker 2>Absolutely, Marian, thank you so much for being with us

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<v Speaker 2>this morning. Bloomberg Swiss Banking reporter Marian Health Tamaire the

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<v Speaker 2>on the latest when it comes to the UBS credit

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<v Speaker 2>Swies merger.

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<v Speaker 3>Now you've probably heard of Rewilding. The successful entrepreneur behind

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<v Speaker 3>solar centry, Jeremy Leggett, is now betting on the nascent

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<v Speaker 3>nature recovery or rewild doing industry. On a three thousand

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<v Speaker 3>five hundred acre estate in Scotland now joining us stage

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<v Speaker 3>to discuss as Bloomberg's ESG reporter and Natasha White. Natasha,

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<v Speaker 3>great to have you with us. This project is attracted

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<v Speaker 3>quite a bit of attention. Can you explain exactly what

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<v Speaker 3>it is?

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<v Speaker 10>We kind of delve into legates one man's venture to

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<v Speaker 10>make money out of nature restoration or kind of rewilding,

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<v Speaker 10>and this is something that's historically been in the domain

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<v Speaker 10>of governments and NGOs. But like you said, Leggot, who's

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<v Speaker 10>the founder of one of the UK's most successful solo firm,

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<v Speaker 10>Solo Century, has kind of set his sights on this

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<v Speaker 10>what he calls nascent nature recovery industry, and so he's

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<v Speaker 10>been buying up a states across Scotland, most recently Taviaalk

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<v Speaker 10>earlier this year, with a view to kind of return

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<v Speaker 10>them to their to their form former glory. And he

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<v Speaker 10>sort of sees this nature recovery, this rewilding industry as

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<v Speaker 10>a kin to kind of well he calls it groundhog Day.

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<v Speaker 10>So he witnessed the boom and renewables in the nineteen

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<v Speaker 10>nineties and he's looking at this sector and saying, you know,

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<v Speaker 10>kind of betting that's this is the next big thing,

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<v Speaker 10>but we kind of delve into the tensions that he's

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<v Speaker 10>experiencing and doing.

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<v Speaker 2>So, yeah, I suppose what if you're on Earth, about

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<v Speaker 2>why he's pursuing this, what his bet is about.

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<v Speaker 10>Yes, I think what's different here is he's this is

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<v Speaker 10>all about biodiversity. So we all know about the climate crisis,

0:12:17.320 --> 0:12:20.079
<v Speaker 10>but I think less is known or less airtime is

0:12:20.120 --> 0:12:23.080
<v Speaker 10>given to the crisis in nature of the biodiversity crisis.

0:12:23.080 --> 0:12:24.600
<v Speaker 10>You know, we all know there's less bugs on our

0:12:24.640 --> 0:12:27.200
<v Speaker 10>windscreen and there's less bees on our flowers. But there

0:12:27.280 --> 0:12:29.280
<v Speaker 10>was a report that just came out today on the

0:12:29.320 --> 0:12:31.360
<v Speaker 10>state of nature in the UK and in Scotland which

0:12:31.360 --> 0:12:35.719
<v Speaker 10>had some really kind of abysmal statistics, and so governments

0:12:35.760 --> 0:12:39.400
<v Speaker 10>globally are are, you know, increasingly looking at this problem.

0:12:39.440 --> 0:12:41.720
<v Speaker 10>There was a big pact, the Nature Packed in December

0:12:41.800 --> 0:12:43.880
<v Speaker 10>last year in Montreal that's kind of been dubbed Uck

0:12:43.920 --> 0:12:48.640
<v Speaker 10>into the Paris Agreement, whereby representatives from almost two hundred

0:12:48.640 --> 0:12:54.200
<v Speaker 10>countries committed to halting and reversing biodiversity loss by twenty

0:12:54.320 --> 0:12:57.640
<v Speaker 10>thirty and are starting to put in in the groundwork

0:12:57.679 --> 0:13:00.280
<v Speaker 10>for doing so. In one aspect, there of course, is

0:13:00.320 --> 0:13:05.000
<v Speaker 10>the money. So there's not enough money coming from governments

0:13:05.080 --> 0:13:08.160
<v Speaker 10>to address this problem, and so the private CEA has

0:13:08.200 --> 0:13:12.079
<v Speaker 10>been called called upon to play its parts. But it's

0:13:12.080 --> 0:13:14.520
<v Speaker 10>also you know, it's historically been quite a tricky problem

0:13:14.559 --> 0:13:17.640
<v Speaker 10>about how how do you make money out of nature

0:13:17.760 --> 0:13:22.560
<v Speaker 10>protection and restoration. And what Legate's eyeing with his venture

0:13:22.679 --> 0:13:25.480
<v Speaker 10>is this nascent biodiversity credits market.

0:13:26.000 --> 0:13:29.200
<v Speaker 3>Okay, and how I mean how lacent is that market?

0:13:29.240 --> 0:13:32.439
<v Speaker 3>Where is the opportunities that lie within it At the moment.

0:13:32.280 --> 0:13:37.240
<v Speaker 10>It's it's very small. There are regulated what's called biodiversity

0:13:37.280 --> 0:13:40.880
<v Speaker 10>offset markets in a number of countries. England is due

0:13:40.920 --> 0:13:43.240
<v Speaker 10>to has one that's due to enter inter force. Well

0:13:43.240 --> 0:13:45.520
<v Speaker 10>it was due to enter into force in November. It's

0:13:45.559 --> 0:13:47.720
<v Speaker 10>just recently been delayed until I think early in the

0:13:47.760 --> 0:13:50.560
<v Speaker 10>new year. So these are BUI diversity offset markets where

0:13:50.679 --> 0:13:53.760
<v Speaker 10>for example, if you're looking to build build houses or

0:13:53.760 --> 0:13:57.280
<v Speaker 10>dig a mine, you have to you're regulated to compensate

0:13:57.320 --> 0:13:59.600
<v Speaker 10>at least one hundred percent, if not more, for your

0:13:59.640 --> 0:14:03.439
<v Speaker 10>impact on nature. So those exist at national levels and

0:14:03.880 --> 0:14:06.800
<v Speaker 10>you know, Legate is besting that Scotland will soon introduce

0:14:07.200 --> 0:14:10.800
<v Speaker 10>a similar law there and is in kind of conversations

0:14:10.800 --> 0:14:13.760
<v Speaker 10>with policymakers about that, but he's also looking at this

0:14:13.920 --> 0:14:19.800
<v Speaker 10>international market for bio diversity credits, where you know, if

0:14:19.800 --> 0:14:21.920
<v Speaker 10>a company wants to build a mining kenure, it can

0:14:21.960 --> 0:14:25.480
<v Speaker 10>go and buy credits from legate in Scotland to compensate

0:14:25.520 --> 0:14:29.280
<v Speaker 10>for those impacts. And that's that's nascent, but there's you know,

0:14:29.320 --> 0:14:32.000
<v Speaker 10>there's statistics out that suggest it could reach thirty five

0:14:32.080 --> 0:14:36.000
<v Speaker 10>billion by twenty fifty, which is, you know, fifteen times

0:14:36.080 --> 0:14:38.480
<v Speaker 10>the size of the carbon market right now. So some

0:14:38.520 --> 0:14:41.480
<v Speaker 10>people are eyeing this market and are quite bullish about

0:14:41.520 --> 0:14:42.239
<v Speaker 10>its potential.

0:14:43.160 --> 0:14:49.120
<v Speaker 2>Briefly, though domestically within Scotland legs up against some opposition though.

0:14:49.400 --> 0:14:53.720
<v Speaker 10>There's like broad different or brushes of issues here. First

0:14:53.880 --> 0:14:56.200
<v Speaker 10>is that you know, people are pushing back about on

0:14:56.840 --> 0:15:00.120
<v Speaker 10>whether nature conservation and restoration is really the domain in

0:15:00.160 --> 0:15:02.200
<v Speaker 10>the private sector, is whether it's something that's best at

0:15:02.200 --> 0:15:03.920
<v Speaker 10>delve with by governments.

0:15:04.760 --> 0:15:07.480
<v Speaker 3>This is Bloomberg Daybreak Europe, your morning brief on the

0:15:07.560 --> 0:15:10.600
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