1
00:00:02,440 --> 00:00:07,600
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:09,880 --> 00:00:13,080
Speaker 2: This is the Bloomberg Dabac podcast, available every morning on Apple,

3
00:00:13,160 --> 00:00:15,920
Speaker 2: Spotify or wherever you listen. It's Tuesday, the fifteenth of

4
00:00:15,920 --> 00:00:18,440
Speaker 2: October here in London. I'm Caroline Hepka.

5
00:00:18,239 --> 00:00:20,760
Speaker 3: And I'm Tom McKenzie. Coming up today. The US considers

6
00:00:20,840 --> 00:00:23,680
Speaker 3: country by country sales caps for the likes of Nvidia

7
00:00:23,840 --> 00:00:24,840
Speaker 3: and AMD.

8
00:00:25,000 --> 00:00:29,400
Speaker 2: The Prime Minister tells Bloomberg that speculation capital gains tax

9
00:00:29,480 --> 00:00:32,880
Speaker 2: could hit thirty nine percent is wide of the mark.

10
00:00:32,720 --> 00:00:36,479
Speaker 3: Plus putting the human life in lifelike. It's revealed that

11
00:00:36,520 --> 00:00:40,880
Speaker 3: Tesla Optimus bots were remotely operated at last week's Wee

12
00:00:41,080 --> 00:00:42,160
Speaker 3: Robot showcase.

13
00:00:42,400 --> 00:00:44,320
Speaker 2: Let's start with the roundup of our top stories.

14
00:00:44,400 --> 00:00:48,800
Speaker 3: The US is considering capping sales of advanced AI chips

15
00:00:48,800 --> 00:00:53,159
Speaker 3: from Nvidia and other American companies to specific countries. Exclusive

16
00:00:53,200 --> 00:00:56,320
Speaker 3: reporting from Bloomberg reveals that officials in the Biden administration

17
00:00:56,800 --> 00:00:59,360
Speaker 3: are considering the move in a bid to limit some

18
00:00:59,600 --> 00:01:04,679
Speaker 3: nation artificial intelligence capabilities. Bloomberg's Anabel Drula says the focus

19
00:01:04,680 --> 00:01:06,800
Speaker 3: of restrictions is on the Middle East.

20
00:01:07,600 --> 00:01:09,880
Speaker 4: This is a region we know that's looking to invest

21
00:01:10,040 --> 00:01:13,360
Speaker 4: very heavily into AI data centers in particular, they've got

22
00:01:13,360 --> 00:01:15,600
Speaker 4: companies that are wanting to establish their or build up

23
00:01:15,640 --> 00:01:17,839
Speaker 4: their data center presence, and they've also got very deep

24
00:01:17,840 --> 00:01:19,840
Speaker 4: pockets to fund them. The Middle East, we know it's

25
00:01:19,880 --> 00:01:22,559
Speaker 4: a place that has a growing relationship with China, which

26
00:01:22,600 --> 00:01:24,600
Speaker 4: is what these sorts of caps were initially put in

27
00:01:24,640 --> 00:01:28,480
Speaker 4: place for, was to restrict China's high tech ambition. So

28
00:01:28,520 --> 00:01:30,840
Speaker 4: there is a concern that if you allow companies like

29
00:01:30,959 --> 00:01:34,520
Speaker 4: Nvidia AMD to export to serve party countries, those chips

30
00:01:34,560 --> 00:01:37,919
Speaker 4: could still make their way to places, particularly to China.

31
00:01:38,560 --> 00:01:42,160
Speaker 3: Annabel Drulas speaking there about Bloomberg's reporting, which also notes

32
00:01:42,200 --> 00:01:45,680
Speaker 3: that US deliberations are in their early stages. The news

33
00:01:45,760 --> 00:01:48,320
Speaker 3: of a possible overseas sales cap for the likes of

34
00:01:48,400 --> 00:01:51,520
Speaker 3: Nvidia broke just hours after the AI chip giant's share

35
00:01:51,560 --> 00:01:55,000
Speaker 3: price hit its first record close since June. The stock

36
00:01:55,040 --> 00:01:59,240
Speaker 3: is up almost fourteen percent this month. After CEO Jensen

37
00:01:59,280 --> 00:02:01,800
Speaker 3: Huang said the year's Blackwell chip is quote in full

38
00:02:01,840 --> 00:02:05,760
Speaker 3: production and the demand for it is quote insane.

39
00:02:06,880 --> 00:02:11,000
Speaker 2: China has begun enforcing a long overlooked tax on overseas

40
00:02:11,040 --> 00:02:14,480
Speaker 2: investment gains by the country's ultra rich sources tell us

41
00:02:14,520 --> 00:02:18,480
Speaker 2: that wealthy individuals in major Chinese cities are facing levies

42
00:02:18,520 --> 00:02:21,320
Speaker 2: of up to twenty percent on investment gains, with some

43
00:02:21,400 --> 00:02:25,600
Speaker 2: also subject to penalties on overdue payments. The move underscores

44
00:02:25,639 --> 00:02:28,600
Speaker 2: growing urgency within the government to expand its source of

45
00:02:28,960 --> 00:02:32,760
Speaker 2: sources of revenue as land sales have tumbled and growth

46
00:02:32,760 --> 00:02:34,200
Speaker 2: has slowed in China.

47
00:02:34,320 --> 00:02:38,240
Speaker 3: Prime Minister Keir Starmer has told Bloomberg that Britain won't

48
00:02:38,280 --> 00:02:42,040
Speaker 3: be raising capital gains tax to thirty nine percent. The

49
00:02:42,120 --> 00:02:45,440
Speaker 3: UK leader was at his London investment summit, where his

50
00:02:45,560 --> 00:02:49,760
Speaker 3: government drew pledges totaling sixty three billion pounds of private investment.

51
00:02:49,919 --> 00:02:53,720
Speaker 3: In an exclusive interview Bloomberg, Stephanie Flanders asked him if

52
00:02:53,760 --> 00:02:57,240
Speaker 3: business should fear a capital gains tax hike to thirty

53
00:02:57,320 --> 00:03:00,280
Speaker 3: nine percent. Well, quite a lot of speculation is getting

54
00:03:00,280 --> 00:03:05,960
Speaker 3: pretty wide of the mark. But wide of the mark. Yeah,

55
00:03:06,120 --> 00:03:10,760
Speaker 3: thet's get into the area which is wide of the mark. Starmer,

56
00:03:10,880 --> 00:03:14,200
Speaker 3: like most UK officials, usually avoids commenting on fiscal measures

57
00:03:14,320 --> 00:03:16,800
Speaker 3: this close to the budget. The business charm of FENSM

58
00:03:16,880 --> 00:03:18,800
Speaker 3: was backed up by CEOs from some of the country's

59
00:03:18,840 --> 00:03:23,519
Speaker 3: largest lenders. They said international investors will not be deterred

60
00:03:23,560 --> 00:03:26,560
Speaker 3: by some of thecoming tough decisions.

61
00:03:26,600 --> 00:03:30,960
Speaker 2: In that budget, UK wages grew at the slowest pace

62
00:03:31,000 --> 00:03:32,880
Speaker 2: in more than two years in the three months at

63
00:03:32,880 --> 00:03:36,720
Speaker 2: the end of August. Average earnings excluding bonuses rose by

64
00:03:36,760 --> 00:03:40,800
Speaker 2: four point nine percent over that period, whilst unemployment unexpectedly

65
00:03:40,800 --> 00:03:45,360
Speaker 2: fell to four percent. The Recruitment Unemployment Confederation's CEO, Neil

66
00:03:45,440 --> 00:03:48,960
Speaker 2: Carbury says that the labor market market in the UK

67
00:03:49,160 --> 00:03:50,120
Speaker 2: does need a boost.

68
00:03:51,040 --> 00:03:52,640
Speaker 5: The word for the British labor market is a bit

69
00:03:52,680 --> 00:03:55,640
Speaker 5: turgid right now. Employment rates are still below their pre

70
00:03:55,720 --> 00:03:59,280
Speaker 5: pandemic level. Vacancies are dropping, but the vacancy rates are

71
00:03:59,280 --> 00:04:02,800
Speaker 5: still above of the pre pandemic level. There's a story

72
00:04:02,840 --> 00:04:06,839
Speaker 5: here of companies and candidates not quite willing to take

73
00:04:06,920 --> 00:04:09,600
Speaker 5: the chance yet. So I think a lot of recruiters

74
00:04:10,000 --> 00:04:11,640
Speaker 5: to looking to the budget for a bit of a

75
00:04:11,680 --> 00:04:12,640
Speaker 5: shot of confidence.

76
00:04:13,680 --> 00:04:17,400
Speaker 2: Neil Carbury there, who runs the UK's largest professional body

77
00:04:17,440 --> 00:04:20,400
Speaker 2: for recruiters, the Job State. It is yet another sign

78
00:04:20,480 --> 00:04:23,239
Speaker 2: of easing inflationary pressures in the UK and it keeps

79
00:04:23,240 --> 00:04:25,559
Speaker 2: the Bank of England on track to cut interest rates

80
00:04:25,600 --> 00:04:26,599
Speaker 2: again this year.

81
00:04:27,400 --> 00:04:31,960
Speaker 3: Israel says it is listening to us misgivings about an

82
00:04:31,960 --> 00:04:34,960
Speaker 3: attack on Iran, but will act on its own judgment.

83
00:04:35,440 --> 00:04:38,960
Speaker 3: That statement from Prime Minster Benjamin Yetnair, whose office comes

84
00:04:39,000 --> 00:04:42,640
Speaker 3: after reporting the Washington Post claiming the country planned to

85
00:04:42,760 --> 00:04:45,520
Speaker 3: limit any strike. The news comes after Israel said a

86
00:04:45,520 --> 00:04:48,840
Speaker 3: fresh barrage of missiles was fired from Lebanon, a day

87
00:04:49,000 --> 00:04:54,720
Speaker 3: after a Hasbula drone strike killed four IDF soldiers. Speaking yesterday, Netnia,

88
00:04:54,760 --> 00:04:57,560
Speaker 3: who vaiued to continue to target the militant group quote

89
00:04:57,600 --> 00:05:01,000
Speaker 3: in all parts of the country, Panajo.

90
00:05:02,480 --> 00:05:05,200
Speaker 6: We are fighting a tough campaign against Iran's Axis of

91
00:05:05,200 --> 00:05:08,120
Speaker 6: evil that wants to destroy us. They won't make it.

92
00:05:08,400 --> 00:05:11,800
Speaker 6: We keep fighting. We pay painful prices, but we have

93
00:05:11,839 --> 00:05:15,840
Speaker 6: tremendous achievements and we will continue to achieve them.

94
00:05:16,120 --> 00:05:20,440
Speaker 3: The Israeli leader also denied targeting UN peacekeepers in Lebanon.

95
00:05:20,839 --> 00:05:24,480
Speaker 3: Lebanon's health ministry says Israel has killed almost one thousand,

96
00:05:24,640 --> 00:05:27,200
Speaker 3: seven hundred people in the past month.

97
00:05:28,320 --> 00:05:32,320
Speaker 2: Elon Musk's Optimis bots saw the show at the firm's

98
00:05:32,360 --> 00:05:35,920
Speaker 2: recent cybercab event, but it appears that the billionaire Tesla

99
00:05:36,000 --> 00:05:40,400
Speaker 2: CEO may not have been entirely transparent about their operation

100
00:05:40,680 --> 00:05:42,720
Speaker 2: Bloomberg's ta Adebayo has more.

101
00:05:43,080 --> 00:05:46,279
Speaker 7: Touted as the biggest product ever of any kind. Elon

102
00:05:46,400 --> 00:05:51,279
Speaker 7: Musk promised his new Optimist robot could perform tasks including babysitting, shopping,

103
00:05:51,320 --> 00:05:54,720
Speaker 7: and even friendship. But despite what the entrepreneurs us is

104
00:05:54,760 --> 00:05:58,799
Speaker 7: their revolutionary potential, the prototype still seem to need some help.

105
00:05:59,440 --> 00:06:02,880
Speaker 7: Whilst robots were seen pouring drinks and high fiving attendees

106
00:06:02,920 --> 00:06:06,880
Speaker 7: at the October event, Bloomberg understands humans were working behind

107
00:06:06,880 --> 00:06:10,800
Speaker 7: the scenes, remotely controlling their actions, Although at least one

108
00:06:10,839 --> 00:06:14,560
Speaker 7: online video reportedly from the gathering shows an Optimus bartender

109
00:06:14,600 --> 00:06:18,280
Speaker 7: acknowledging human help, Musk failed to mention the fact during

110
00:06:18,320 --> 00:06:22,320
Speaker 7: his webcast. The use of human inputs raises questions over

111
00:06:22,360 --> 00:06:25,600
Speaker 7: the capabilities and market readiness of the bot, which the

112
00:06:25,720 --> 00:06:29,359
Speaker 7: CEO claims could eventually be available for twenty thousand to

113
00:06:29,440 --> 00:06:33,880
Speaker 7: thirty thousand dollars in London. Tea were added by Bloomberg Radio.

114
00:06:34,120 --> 00:06:37,680
Speaker 2: Right Tom, Let's also think a bit more about the

115
00:06:37,920 --> 00:06:40,920
Speaker 2: chips story. I wonder what your view is on it.

116
00:06:41,560 --> 00:06:45,080
Speaker 2: Bloomberg understands that US officials are now weighing capping sales

117
00:06:45,080 --> 00:06:49,000
Speaker 2: of advanced AI chips from Nvidia and other US companies

118
00:06:49,560 --> 00:06:53,679
Speaker 2: to countries on a country by country basis. It seems

119
00:06:53,760 --> 00:06:55,720
Speaker 2: to be though, that it is the Middle East, the

120
00:06:55,720 --> 00:06:59,480
Speaker 2: Persian Gulf that is in the sights of these US officials.

121
00:07:00,000 --> 00:07:02,320
Speaker 2: What do you think is the risk here? I mean,

122
00:07:02,400 --> 00:07:04,760
Speaker 2: there's so much demand for AI chips, do you even

123
00:07:04,839 --> 00:07:08,520
Speaker 2: need a cap to stop countries from buying them? For

124
00:07:08,600 --> 00:07:09,920
Speaker 2: national security reasons?

125
00:07:10,400 --> 00:07:11,960
Speaker 3: Well, to the point that in video is not able

126
00:07:12,000 --> 00:07:14,760
Speaker 3: to produce the numbers that are currently needed, So there's

127
00:07:14,760 --> 00:07:16,800
Speaker 3: a gap there in terms of the ability to supply

128
00:07:16,880 --> 00:07:20,280
Speaker 3: that demand. It's a reminder I think of the complexities

129
00:07:20,440 --> 00:07:23,840
Speaker 3: for policymakers in terms of trying to fine tune a

130
00:07:23,880 --> 00:07:27,720
Speaker 3: supply chain around the most sophisticated chips that are central

131
00:07:27,760 --> 00:07:32,080
Speaker 3: and necessary for what people see as this generative AI

132
00:07:32,160 --> 00:07:36,080
Speaker 3: and broader AI revolution. And it's the difficulty in terms

133
00:07:36,160 --> 00:07:40,280
Speaker 3: of working out and finessing how to align those restrictions

134
00:07:40,440 --> 00:07:44,400
Speaker 3: whilst also not cutting out your allies from this key technology, because,

135
00:07:44,400 --> 00:07:47,200
Speaker 3: of course, on many levels and with many partners in

136
00:07:47,200 --> 00:07:50,920
Speaker 3: the Middle least, the US has a very strong allied relationship.

137
00:07:51,400 --> 00:07:54,840
Speaker 3: There's concern already, of course, that China has been able

138
00:07:54,880 --> 00:07:57,000
Speaker 3: to access some of these in video chips and AMD

139
00:07:57,160 --> 00:07:59,840
Speaker 3: chips through other routes, some of their trading partners, for example.

140
00:08:00,000 --> 00:08:03,400
Speaker 3: So there's already been slightly more ad hoc restrictions on

141
00:08:03,440 --> 00:08:06,800
Speaker 3: about forty different countries the Middle Eastern Africa within that

142
00:08:06,960 --> 00:08:10,360
Speaker 3: mix to try to ensure that China isn't getting these

143
00:08:10,440 --> 00:08:13,000
Speaker 3: chips through other means. Now it looks like they're looking

144
00:08:13,080 --> 00:08:19,120
Speaker 3: at a more targeted approach, and it's a reminder of

145
00:08:20,440 --> 00:08:23,320
Speaker 3: the challenge of trying to formulate a policy that doesn't

146
00:08:23,320 --> 00:08:28,040
Speaker 3: alienate your allies, but make sure that your competitors and

147
00:08:28,160 --> 00:08:30,400
Speaker 3: what is perceived to be the threat from China that

148
00:08:30,400 --> 00:08:33,200
Speaker 3: they're not able to build out specifically their military capabilities

149
00:08:33,200 --> 00:08:34,480
Speaker 3: with some of this US hardware.

150
00:08:34,559 --> 00:08:34,800
Speaker 8: Yeah.

151
00:08:34,880 --> 00:08:37,240
Speaker 2: Does it even matter when the Biden personency is in

152
00:08:37,280 --> 00:08:39,120
Speaker 2: its final weeks and months.

153
00:08:39,040 --> 00:08:41,720
Speaker 3: Oh, I mean certainly, certainly it matters what they're trying

154
00:08:41,760 --> 00:08:43,160
Speaker 3: to do, what they'd like to do. Has have a

155
00:08:43,200 --> 00:08:47,440
Speaker 3: clear and comprehensive plan on the role of these restrictions

156
00:08:47,520 --> 00:08:49,439
Speaker 3: before they go to that vote, so they can put

157
00:08:49,480 --> 00:08:54,400
Speaker 3: it to voters and a test to the tougher line

158
00:08:54,440 --> 00:08:57,520
Speaker 3: that they've been taking on China. What a Trumpet administration

159
00:08:57,640 --> 00:08:59,320
Speaker 3: might do to it if we get a Trump administration,

160
00:08:59,679 --> 00:09:01,720
Speaker 3: or in what a Harris administration might do in terms

161
00:09:01,760 --> 00:09:04,920
Speaker 3: of adjusting and fine tuning remains a question. But there's

162
00:09:04,960 --> 00:09:08,240
Speaker 3: broadn census, of course, both from the Republicans and Democrats,

163
00:09:08,559 --> 00:09:10,240
Speaker 3: that this is a technology you need to keep out

164
00:09:10,280 --> 00:09:14,079
Speaker 3: of the hands of China, but increasingly other global powers

165
00:09:14,160 --> 00:09:16,679
Speaker 3: as well. It seems that's Ryman reminded that it's not

166
00:09:17,000 --> 00:09:20,000
Speaker 3: just about China, but it's about other partners as well.

167
00:09:20,160 --> 00:09:22,760
Speaker 3: But the tensions there. Look is this is also potentially

168
00:09:23,000 --> 00:09:25,120
Speaker 3: a point of leverage for the US in terms of

169
00:09:25,240 --> 00:09:29,000
Speaker 3: diplomatic leverage. It is the source of these highest end chips,

170
00:09:29,520 --> 00:09:32,800
Speaker 3: It is US design, it is behind these, and so

171
00:09:32,840 --> 00:09:35,320
Speaker 3: they can use that in terms of diplomatic leverage as well.

172
00:09:35,480 --> 00:09:39,040
Speaker 2: I wonder whether the issue of tariffs, of AI chips,

173
00:09:39,080 --> 00:09:41,679
Speaker 2: maybe of taxes and so many other issues is going

174
00:09:41,720 --> 00:09:44,839
Speaker 2: to come up. With the live and exclusive interview that

175
00:09:44,840 --> 00:09:48,599
Speaker 2: Bloomberg has with Donald Trump, of course, candidate for the

176
00:09:48,679 --> 00:09:51,880
Speaker 2: US presidency, Bloomberg's editor in chief John mcklethwaite is sitting

177
00:09:51,920 --> 00:09:54,719
Speaker 2: down with Donald Trump today, So please do tune in

178
00:09:54,760 --> 00:09:58,120
Speaker 2: to Bloomberg TV and Radio five pm London time and

179
00:09:58,160 --> 00:10:01,720
Speaker 2: twelve New New York time to hear that conversation later

180
00:10:01,760 --> 00:10:05,240
Speaker 2: on today. Well, let's also turn our attention then to

181
00:10:05,280 --> 00:10:08,800
Speaker 2: what's happening in on Wall Street later with earnings JP,

182
00:10:08,920 --> 00:10:12,160
Speaker 2: Morgan and Wells Fargo positively surprised a vessels last week.

183
00:10:12,440 --> 00:10:14,800
Speaker 2: Now attention shifts to Gold and Sachs, Bank of America

184
00:10:14,840 --> 00:10:17,320
Speaker 2: and City Group, and then we get Morgan Stanley on

185
00:10:17,480 --> 00:10:20,440
Speaker 2: Wednesday joining us down in the radio studio Boomberg's Charlie Wells,

186
00:10:20,440 --> 00:10:24,080
Speaker 2: Good morning Charlie. So the context then across the industry

187
00:10:24,120 --> 00:10:27,280
Speaker 2: and the economy in the US for these three crucial

188
00:10:27,320 --> 00:10:29,199
Speaker 2: banks on Wall Street reporting later today.

189
00:10:29,360 --> 00:10:31,800
Speaker 1: Okay, can I give you a similar go on? I

190
00:10:31,800 --> 00:10:34,160
Speaker 1: feel like Wall Street can sometimes feel like a party

191
00:10:34,880 --> 00:10:38,880
Speaker 1: and the music just changed. So the FED, you know,

192
00:10:39,000 --> 00:10:42,120
Speaker 1: lowered interest rates fifty basis points. We're still trying to

193
00:10:42,160 --> 00:10:44,640
Speaker 1: see if the dancing is going to change quite yet,

194
00:10:44,679 --> 00:10:46,240
Speaker 1: because you know, when you're at a party, they change

195
00:10:46,240 --> 00:10:48,800
Speaker 1: the music. Not everyone starts moving, they're moving in a

196
00:10:48,800 --> 00:10:51,440
Speaker 1: different way quite yet. I love this sort of where

197
00:10:51,480 --> 00:10:54,440
Speaker 1: it feels like bank earnings are this quarter, where it's

198
00:10:54,480 --> 00:10:56,760
Speaker 1: a little too soon to see that the fifty basis

199
00:10:56,760 --> 00:10:59,400
Speaker 1: point cut trickle all the way through these reports, because

200
00:10:59,400 --> 00:11:01,120
Speaker 1: it was only a few weeks ago that this happened.

201
00:11:01,520 --> 00:11:03,880
Speaker 1: And so when you look back at what we saw

202
00:11:04,040 --> 00:11:07,920
Speaker 1: with JP Morgan and Wells Fargo, you know JP Morgan

203
00:11:08,120 --> 00:11:11,840
Speaker 1: got a beat on net interest income and so the

204
00:11:11,920 --> 00:11:15,320
Speaker 1: music changed. It's not necessarily dancing quite so differently. Yet

205
00:11:15,400 --> 00:11:18,079
Speaker 1: I think that's the context as we go in to

206
00:11:18,200 --> 00:11:21,079
Speaker 1: this huge day with Bank of America City Group and

207
00:11:21,120 --> 00:11:25,280
Speaker 1: Golden reporting, to what degree does that cut in rates

208
00:11:25,360 --> 00:11:26,600
Speaker 1: hit into their earnings?

209
00:11:26,679 --> 00:11:29,760
Speaker 3: So far, I love the music analogy. We're joining this,

210
00:11:30,040 --> 00:11:31,560
Speaker 3: We're enjoying this jolly. So I stretched it out for

211
00:11:31,600 --> 00:11:35,800
Speaker 3: us Alyss. Then expecting and looking at the Golden Bank

212
00:11:35,840 --> 00:11:39,240
Speaker 3: of American City results and previewing those what are we

213
00:11:39,320 --> 00:11:41,760
Speaker 3: hearing from them? What kind of tune will they be

214
00:11:41,880 --> 00:11:44,439
Speaker 3: dancing to? Do they think? The analysts these banks.

215
00:11:44,160 --> 00:11:46,600
Speaker 1: Well, yeah, what we heard was not necessarily music, but

216
00:11:46,840 --> 00:11:50,960
Speaker 1: warnings last month from the bank executives during conference season.

217
00:11:51,000 --> 00:11:54,400
Speaker 1: So David Solomon at Goldman Sachs talked about how trading

218
00:11:54,440 --> 00:11:57,240
Speaker 1: revenue might disappoint. So I think that's something to kind

219
00:11:57,280 --> 00:12:00,600
Speaker 1: of compare and contrast Bank of America's Bryan and moynihan

220
00:12:00,679 --> 00:12:05,239
Speaker 1: talked about investment banking revenue potentially disappointing and the transaction

221
00:12:05,440 --> 00:12:08,319
Speaker 1: mix for that business just not being there. And then

222
00:12:08,400 --> 00:12:10,480
Speaker 1: City Group, which has just been going through some of

223
00:12:10,520 --> 00:12:15,920
Speaker 1: the biggest restructurings in decades. Mark Mason, their CFO, talked

224
00:12:16,000 --> 00:12:19,640
Speaker 1: about credit losses and some of the strains that consumers

225
00:12:19,679 --> 00:12:22,160
Speaker 1: are going through. And I think that one is going

226
00:12:22,240 --> 00:12:25,160
Speaker 1: to be really fascinating because we heard pretty upbeat tones

227
00:12:25,360 --> 00:12:29,640
Speaker 1: to continue the music of similar here from Wells Fargo

228
00:12:29,679 --> 00:12:32,679
Speaker 1: and JP Morgan about the US consumer. But Mark Mason

229
00:12:32,760 --> 00:12:36,680
Speaker 1: last month talked about how consumers were shifting from discretionary

230
00:12:37,000 --> 00:12:39,280
Speaker 1: to more needs based spending on their cards. So let's

231
00:12:39,280 --> 00:12:40,559
Speaker 1: see how that plays out.

232
00:12:40,440 --> 00:12:43,959
Speaker 2: Okay, And then I suppose in terms of the broader

233
00:12:44,040 --> 00:12:46,800
Speaker 2: market sentiment, another forty six record high for the s

234
00:12:46,800 --> 00:12:48,880
Speaker 2: and p fi've founded how much of the bank earning

235
00:12:48,960 --> 00:12:50,960
Speaker 2: is going to drive any more juice?

236
00:12:51,000 --> 00:12:51,200
Speaker 3: Something?

237
00:12:51,240 --> 00:12:53,000
Speaker 2: Can we talk yet about more juice?

238
00:12:53,040 --> 00:12:55,599
Speaker 1: I mean, they've been beating the SMP five hundred, the

239
00:12:55,679 --> 00:12:59,040
Speaker 1: KBW index has been outperforming on that front. It's made

240
00:12:59,120 --> 00:13:02,440
Speaker 1: this earning season and you know, more like a disco

241
00:13:03,160 --> 00:13:06,520
Speaker 1: a little bit more interesting. The stakes are higher, Let's

242
00:13:06,520 --> 00:13:08,960
Speaker 1: see if they can climb higher. But certainly the banks

243
00:13:08,960 --> 00:13:11,880
Speaker 1: that be last week were rewarded in the market. Let's

244
00:13:11,920 --> 00:13:12,839
Speaker 1: see if that happens today.

245
00:13:14,320 --> 00:13:17,080
Speaker 8: This is Bloomberg Daybreak Europe, your morning brief on the

246
00:13:17,120 --> 00:13:20,199
Speaker 8: stories making news from London to Wall Street and beyond.

247
00:13:20,480 --> 00:13:24,439
Speaker 2: Look for us on your podcast feed every morning on Apple, Spotify,

248
00:13:24,520 --> 00:13:26,480
Speaker 2: and anywhere else you get your podcasts.

249
00:13:26,520 --> 00:13:29,559
Speaker 8: You can also listen live each morning on London DAB Radio,

250
00:13:29,600 --> 00:13:32,280
Speaker 8: the Bloomberg Business app, and Bloomberg dot Com.

251
00:13:32,320 --> 00:13:35,080
Speaker 2: Our flagship New York station, is also available on your

252
00:13:35,120 --> 00:13:39,840
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

253
00:13:40,080 --> 00:13:42,720
Speaker 8: I'm Caroline Hipka and I'm Stephen Carroll. Join us again

254
00:13:42,760 --> 00:13:45,360
Speaker 8: tomorrow morning for all the news you need to start

255
00:13:45,400 --> 00:13:50,040
Speaker 8: your day right here on Bloomberg day Break Europe.