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Speaker 1: This is Bloomberg daybacup for this Friday, the second of

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Speaker 1: June in London.

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Speaker 2: Coming up today, Moving on from the ex, Congress passes

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Speaker 2: a deal on the death ceiling.

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Speaker 1: Losing its Loster Goldman flags a twenty five percent drop

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Speaker 1: in trading revenue as job cuts.

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Speaker 2: Loose Diamond's pressure play. JP Morgan CEO heads to Taiwan

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Speaker 2: after a high profile trip to China.

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Speaker 3: Apple's account struggles, space excess, military tie up, and the

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Speaker 3: Concierge to the Stars cashes in. Those are the stories

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Speaker 3: we're looking at in today's papers.

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Speaker 4: And I'm leanne Gerren's.

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Speaker 1: Plus going it alone. Ex labor leader Neil Kinnock tells

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Speaker 1: us that Starmer won't need a coalition.

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Speaker 5: That's all straight ahead. On Bloomberg Daybreak Europe, the business

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Speaker 5: news you need to star your day in just one

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Speaker 5: fifteen minute podcast on Apple, Spotify, the Bloomberg Business App

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Speaker 5: and everywhere you get your podcasts.

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Speaker 2: Good morning, I'm Stephen.

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Speaker 1: Carroll and I'm Caroline Hecker. Here are the stories that

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Speaker 1: we're following today.

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Speaker 2: The US Senator has passed a bill to lift the

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Speaker 2: death ceiling, ending a standoff that had the potential to

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Speaker 2: spark a global financial crisis. The measurenaw goes to President

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Speaker 2: Joe Biden, who plans to sign it into law just

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Speaker 2: days ahead of a looming US default. Democratic Senate's majority

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Speaker 2: leader Chuck Schumer has welcomed the agreement.

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Speaker 6: This demanded a bipartisan solution. We knew we need to

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Speaker 6: come together for a solution like the one that passed tonight,

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Speaker 6: and so I'm happy to stand here passing this critical

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Speaker 6: legislation to support our families, preserve vival programs, and most importantly,

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Speaker 6: avoid catastrophic default.

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Speaker 2: Schumer shepherd of the bill through the Senate with support

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Speaker 2: from moderates from both parties, many of whom put aside

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Speaker 2: misgivings about parts of the deal.

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Speaker 1: Goldman Sachs is warning of a sharp slowdown in investment

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Speaker 1: banking compared to bump agains a year ago. It's President

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Speaker 1: John woldron that the trading business is trending down more

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Speaker 1: than twenty five percent this quarter. The news comes just

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Speaker 1: days after Bloomberg learnt that the bank is working on

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Speaker 1: what would be its third round of job cuts in

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Speaker 1: under a year. The downbeat outlook comes as Bank of

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Speaker 1: America's CEO Brian moynihan said that he believes trading revenue

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Speaker 1: at the lender will hold up this quarter.

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Speaker 7: On the sales trading side, Frankly, I think we'll be

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Speaker 7: flatish this quarter, which may be very strong for as

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Speaker 7: Jimmy Deamar and the TEAMHO had done a great job

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Speaker 7: of sort of stabilizing that business.

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Speaker 1: Moynihan's comments offer a more promising outlook than many competitors

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Speaker 1: are expecting.

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Speaker 2: Bloomberg has learned that Jamie Diamond is to visit Taiwan

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Speaker 2: after wrapping up his high profile trip to China. The

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Speaker 2: stop off by the JP Morgan CEO comes at our

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Speaker 2: time of heightened tensions between Beijing and Washington. How the

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Speaker 2: MH CEO, Bernard Alnau, meanwhile, has become the latest big

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Speaker 2: company bus to announce plans to visit China, as TESLA

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Speaker 2: CEO Elon Musk returns from his whirlwind tour of the country.

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Speaker 1: In the UK, hey former Labor leader Neil Kinnock says

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Speaker 1: that the party won't need to form a coalition to

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Speaker 1: govern after the next general election. He's been speaking to

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Speaker 1: the UK Politics podcast about the opposition party's future if.

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Speaker 8: He's got the biggest single party government. There won't be

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Speaker 8: a coalition. The Live Dems won't have it and Kiss

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Speaker 8: Starmer certainly won't have it. No question of coalition. There's

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Speaker 8: no deal that he would do with the Scottish Nationalists

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Speaker 8: or needs to do with the Liberals.

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Speaker 1: Kinnock also said that current Labor leader Kis Starmer would

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Speaker 1: be able to run a minority government if needed. The

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Speaker 1: opposition party has been ahead of the Conservatives in the

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Speaker 1: polls for months, but some analysts say that their performance

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Speaker 1: in local elections last month fell short of what would

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Speaker 1: be necessary to then secure an outright majority.

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Speaker 9: I mean.

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Speaker 2: While the government has refused a demand from the UK's

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Speaker 2: COVID inquiry to hand over a former Prime Minister, Boris

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Speaker 2: Johnson's WhatsApp messages and pandemic diaries, the government's Cabinet Office

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Speaker 2: says it's filing for a judicial review into the request

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Speaker 2: for the documents. Speaking before the four pm deadline to

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Speaker 2: hand information over, Rishi Sinac said the government would comply

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Speaker 2: with the law.

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Speaker 10: We've been long cooperating with the inquire important that we

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Speaker 10: learn the lessons of COVID so that we're well prepared

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Speaker 10: in the future. Governments considering very carefully next steps, but

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Speaker 10: it's confident in its position.

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Speaker 2: Meanwhile, opposition parties have accused Ritchy Scenac of attempting at

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Speaker 2: cover up The request of documents are also likely to

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Speaker 2: include the Prime Minister's own correspondence with Boris Johnson when

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Speaker 2: he was the Chancellor.

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Speaker 1: Okay, so those are a few of our top stories.

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Speaker 1: Then for you this morning, we're going to be watching

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Speaker 1: out for the non farm payroll report. Of course, in

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Speaker 1: terms of the beats, do we get another thirteenth month

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Speaker 1: of increases, How much pressure is there going to be

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Speaker 1: in the economy in the United States, and what does

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Speaker 1: it mean for interest rates? I think that is absolutely

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Speaker 1: crucial for markets. But then there's also this fun one.

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Speaker 1: Expensive insectves are back in in order to high and

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Speaker 1: retain traders at hedge funds. It's frankly getting almost like

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Speaker 1: the Premier League and the NBA. What is being thrown

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Speaker 1: at at hedge funer managers. Of course, the average lifespan

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Speaker 1: of a hedge found is only like five to eight years,

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Speaker 1: so that's why I think you get the sporting metaphor.

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Speaker 2: But look, if you look at some of the things

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Speaker 2: that people are being offered at, this is Today's Big

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Speaker 2: Take Report from Bloomberg. So we're looking at, for example,

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Speaker 2: be being offered a year after work paid and then

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Speaker 2: an incentive to come back at the end of US.

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Speaker 5: Yeah, that is pretty.

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Speaker 2: Coat to see you in a year.

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Speaker 1: Well, the thing that's most interest though is, of course,

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Speaker 1: clients usually never get a look at this. They don't

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Speaker 1: get the breakdown normally of talent and actually how much

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Speaker 1: is being paid for it. So I think it's super

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Speaker 1: revealing and it kind of goes firm firm to firm

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Speaker 1: across Europe, Asia, the US and.

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Speaker 2: What it's casting clients.

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Speaker 4: Yes, the part of the story.

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Speaker 1: Yeah, absolutely, it's a really good one. Okay, have a

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Speaker 1: read of that on the terminal. Right, let's turn our

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Speaker 1: attention then to the US. Of course, the Senate has

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Speaker 1: now passed the debt ceiling bill, so that removes the

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Speaker 1: threat of a default until after the next US presidential election.

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Speaker 1: For more, let's bring in Bloomberg's senior editor Bill Ferries,

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Speaker 1: who joins us this morning. He ended up bill being

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Speaker 1: relatively undramatic after weeks of tension. What should we take

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Speaker 1: away from the result of these votes in the Senate

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Speaker 1: in the House.

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Speaker 9: You're right, it did I think one thing we could

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Speaker 9: take away is that the risk of a United States

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Speaker 9: default clarifies the mind for a lot of political leaders.

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Speaker 9: That was a step that was just too far, I

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Speaker 9: think for the moderate you know, I would say the

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Speaker 9: moderate mass, and both the Republican and the Democratic side.

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Speaker 9: Another lesson is that, you know, Kevin McCarthy is the

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Speaker 9: indisputable leader of the House Republicans. He got this through

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Speaker 9: a very you know, complicated political process. He has a

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Speaker 9: famously difficult caucus to deal with, and there were people

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Speaker 9: who in his party who have never in their political

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Speaker 9: careers voted to raise the debt ceiling, so you were

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Speaker 9: never going to get them on board. But what he

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Speaker 9: did do was manage to get two thirds of the

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Speaker 9: Republicans to vote for this. His critics will say, yeah,

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Speaker 9: but he still needed a big chunk of Democrats to

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Speaker 9: get it across the line. That said, you know, I

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Speaker 9: think that was always going to be the case, and

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Speaker 9: he's done it with a minimum number of defections. I

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Speaker 9: also think President Biden gets some praise for, you know,

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Speaker 9: keeping being able to negotiate some things that people on

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Speaker 9: the left to the left of him didn't want to see.

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Speaker 11: Happen, but still get it passed.

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Speaker 9: So both of those leaders will take small political hits,

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Speaker 9: but I think in the end they probably come out

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Speaker 9: looking a little bit stronger.

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Speaker 2: Does it open the door for more bipartisan collaboration on

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Speaker 2: issues or was this just a question of getting the

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Speaker 2: debt ceiling passed and nothing else.

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Speaker 11: I think more of the ladder.

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Speaker 9: You know, there will be issues that I think bring

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Speaker 9: sides together, you know, whether it's in some cases defense

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Speaker 9: spending or maybe you know, natural disasters and things like that.

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Speaker 9: I think in general, they're not turning over a new leaf.

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Speaker 9: It's still a very polarized electorate and probably a more

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Speaker 9: more polarized Congress on most of the issues. And we're

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Speaker 9: heading into you know, next year will be a presidential

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Speaker 9: election year. So I think that's gonna that's gonna make

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Speaker 9: cooperation less likely.

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Speaker 4: Okay.

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Speaker 1: In terms of the economics, though the risk of defaults

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Speaker 1: been removed, the US economy, though, still faces a lot

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Speaker 1: of challenges. I suppose what is the next big battle

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Speaker 1: to watch?

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Speaker 9: Well, I think for the broader economy, you know, it's

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Speaker 9: it's still going to be trying to figure out where

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Speaker 9: the FED goes from here.

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Speaker 11: In terms of rates rising or or holding for a while.

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Speaker 9: I think what happens globally is gonna There's a lot

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Speaker 9: of focus on the Chinese economy and whether it's able

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Speaker 9: to really fully rebound from from the COVID lockdowns, and

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Speaker 9: I just you know, I think with inflation running still

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Speaker 9: at historically high levels for at least the last twenty years,

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Speaker 9: you know, what impact does that have on consumers? There

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Speaker 9: is a question about whether this debt deal and the

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Speaker 9: cap that puts on government spending will do some minor

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Speaker 9: damage to the economy.

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Speaker 11: And that's you know, coming at a pretty fragile time.

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Speaker 9: So I think those are some of the key issues

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Speaker 9: that economists and the market are going to be watching.

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Speaker 2: Well, does this debt sailing deal cast a long shadow

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Speaker 2: over politics in the US? Is it going to have

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Speaker 2: any material impact on the next presidential election.

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Speaker 9: I think there's a chance. I mean, you're already seeing

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Speaker 9: some of it on the Republican side. It's very interesting.

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Speaker 9: You know, Florida Governor Ron DeSantis and South Carolina a

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Speaker 9: Formers senator or a former governor, Nikki Haley, they've come

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Speaker 9: out against this. Some of the other challengers to President

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Speaker 9: Donald Trump have come out of it. So on the

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Speaker 9: Republican primary side, you're seeing it used for political purposes.

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Speaker 11: Very interestingly.

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Speaker 9: Donald Trump, who initially urged Republicans to consider pushing towards

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Speaker 9: a default, hasn't really commented about disagreement. He's probably caught

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Speaker 9: in the middle because he says he wanted a better deal,

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Speaker 9: But he's also been a backer of McCarthy, so I

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Speaker 9: think he's he's sort of got neutralized here a little bit.

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Speaker 11: On the Democratic side, I don't think it will do

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Speaker 11: a lot.

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Speaker 9: President Biden will face criticism from his progressive colleagues, but

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Speaker 9: he is at this point the unquestioned leader on his

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Speaker 9: side of the party heading into next year's elections.

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Speaker 1: Okay, very interesting, Thank you so much for joining us

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Speaker 1: this morning. Bill Ferries just taking us through the US

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Speaker 1: Senate passing that debt seting Bill sixty three to thirty

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Speaker 1: six of the debt. The idea of a US default

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Speaker 1: at least is averted up.

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Speaker 2: Next, Apple's account struggles, Space Sex, military tie up, and

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Speaker 2: the Concierge of the Stars. Cash is in.

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Speaker 5: Now the paper review on blue Bird Daybreak Europe. The

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Speaker 5: news you need to know from today's papers.

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Speaker 1: So mex Lean Goerenz joins us with more. The headline

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Speaker 1: in the Wall Street Journal, Apple customers say it's hard

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Speaker 1: to get money out of Goldman SAX savings accounts. What's

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Speaker 1: what's the issue here?

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Speaker 4: Good morning, Good morning to you, Caroline.

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Speaker 3: Yes, so, as you just said, Apple customers are struggling

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Speaker 3: to access their cash. They've been speaking to the Wall

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Speaker 3: Street Journal about the experience they're having, and this just

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Speaker 3: comes one month after the tech giant launched its competitive

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Speaker 3: savings account with Goldman Sachs So reports suggests the Czech

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Speaker 3: giant's new saving product actually attracted a massive one billion

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Speaker 3: dollars worth of deposits in just four days when actually launched.

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Speaker 3: But saverers speaking to the newspaper are really having trouble

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Speaker 3: accessing their funds or transferring cash between their bank accounts.

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Speaker 11: Now.

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Speaker 3: The newspaper reports that some customers saw their money just

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Speaker 3: completely vanish as it was removed from its Apple account.

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Speaker 4: Oh you're making me shut up, I.

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Speaker 3: Know, but it didn't make it to the other account

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Speaker 3: they were trying to transfer it to. So normally we

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Speaker 3: used to almost being like click of the fingers and

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Speaker 3: it moves counts. But this is where people were saying

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Speaker 3: in the newspaper that they just didn't see that happening,

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Speaker 3: and Goldman Sachs said the difficulties were being faced by

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Speaker 3: a limited number of customers, so not everybody. And they

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Speaker 3: said that the delays were often due to rigorous processors

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Speaker 3: designed to protect users.

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Speaker 4: So that's as board processors as.

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Speaker 1: Teething trouble, I suppose, or is it more than that.

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Speaker 4: That's the big question, and that's the massive question.

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Speaker 3: And one other thing why this attracted so much attention

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Speaker 3: and so many users went for it is it has

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Speaker 3: a four point one five percent yield on the Apple.

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Speaker 4: Savings account, which is interesting.

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Speaker 3: Yeah, it's ten times more than the average US savings rate,

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Speaker 3: so it was very attractive. But like Caroline said, is

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Speaker 3: it teething, But it's pretty scary I think for people

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Speaker 3: out there.

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Speaker 8: Interesting one.

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Speaker 2: Let's go to the Finatal Times nextly, and Elon Musk's

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Speaker 2: SpaceX winning a Pentagon contract for a satellite in Ukraine.

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Speaker 3: Yes, indeed, so the Department of Defense has agreed to

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Speaker 3: buy starlink terminals from Elon Musk, but has not said

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Speaker 3: how many they'll purchase or actually how much they are

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Speaker 3: paying Elon Musk, So those details not available at the moment.

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Speaker 3: I must did secure this US funding to provide satellite

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Speaker 3: internet to the Ukrainian military, So he's now getting involved

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Speaker 3: in this. And this is interesting because a billionaire had

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Speaker 3: expressed real concerns about the military use of this technology.

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Speaker 4: He had been hesitant to move and to that field.

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Speaker 3: But space x is expected to be paid out of

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Speaker 3: the Ukraine Security Assistance Initiative. Now this has financed weapons

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Speaker 3: and training to modernize the Ukrainian military. As we know

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Speaker 3: it is still battling the Russian army and that war

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Speaker 3: is becoming more and more difficult. But it looks like

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Speaker 3: Elon Musk is now going to help with the internet

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Speaker 3: side of it. He does say it's going to be

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Speaker 3: difficult because these satellites do get destroyed very often and

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Speaker 3: it's difficult to keep them up in the air and

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Speaker 3: make sure it works in all links.

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Speaker 4: But it looks like something that is going ahead now.

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Speaker 2: But it is also seeing interesting to see Elon Moss

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Speaker 2: breaking into what was essentially a monopoly of the two

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Speaker 2: largest defense contractors in the US and to get into

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Speaker 2: supplying that is a certainly a big step for the company.

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Speaker 3: Yeah, definitely, And like I said, alleviating some of the

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Speaker 3: fears he had initially about getting involved. Yeah.

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Speaker 1: Just lastly, the Times has the headline founders Velocity Black

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Speaker 1: bank eighty million dollars from Capital One. This is a

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Speaker 1: bit of business in Britain.

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Speaker 4: And it's a little bit of business in Britain.

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Speaker 3: Now Capital One will buy Velocity Black as it pushes

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Speaker 3: deeper into the premium credit cards and other luxury markets

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Speaker 3: dominated by Amis and also JP Morgan. Now the founders

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Speaker 3: actually met at a private school in West London. They

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Speaker 3: started this London based luxury concierge service and they have

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Speaker 3: made tens.

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Speaker 4: Of millions of pounds through this deal.

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Speaker 3: So basically what we're hearing from the newspaper is Capital

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Speaker 3: One is understood to have agreed to pay two hundred

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Speaker 3: and ninety six million dollars for Velocity Black.

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Speaker 4: I'll tell you what it is.

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Speaker 3: So it's an app based in membership concierge service and

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Speaker 3: it's for the super wealthy. So basically, Caroline and Stephen,

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Speaker 3: if you're thinking of going on a holiday, you've got

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Speaker 3: this app. You can say to the app, oh, I

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Speaker 3: want to go on an all experience, you know, the

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Speaker 3: amazing five star holiday they'll book it for you, they'll

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Speaker 3: do everything.

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Speaker 8: Won't pay for it though.

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Speaker 3: No, No, they won't pay for it though. And Caroline,

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Speaker 3: maybe if we want to get a nice luxury handbag

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Speaker 3: for the weekend.

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Speaker 4: Or design address, why not you can just ask them.

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Speaker 3: But listen, the membership does cost two thousand, eight hundred

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Speaker 3: dollars a year, and there's people like Ellie Golding and

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Speaker 3: Rita Aura. They are celebrities who do promote this. I

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Speaker 3: really like Rita Aura, so that would be an exclusive.

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Speaker 2: Experiences after in the uppers include tracking snow leopards in

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Speaker 2: the mlaas, flying fighter jets, and training with Ninja's in Japan.

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Speaker 3: Oh Ninjas.

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Speaker 4: I would definitely.

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Speaker 3: I love the sound of this, but like I said,

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Speaker 3: they don't pay for.

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Speaker 4: It and it doesn't come cheap. No, if you've got

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Speaker 4: the money, why not.

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Speaker 1: But it's an ex Goldman sax Bag forged his own

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Speaker 1: business and now it's being sold to.

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Speaker 4: Goldman Sacks for over twenty years.

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

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Speaker 2: stories making news from London to and beyond.

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Speaker 2: You can also listen live each morning on London DAB Radio,

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Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

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Speaker 1: I'm Caroline Hepka and.

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Speaker 2: I'm Stephen Carroll. Join us again tomorrow morning for all

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