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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Now, as part of Cydgroup's biggest restructuring in two decades,

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Speaker 2: the US Bank has appointed a new lead for its

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Speaker 2: UK operations. My next guest, Tina Lee, is now the

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Speaker 2: Chief executive of City UK.

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Speaker 1: She also serves as.

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Speaker 2: The Chief executive of Citygroup Global Markets, the Bank's UK

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Speaker 2: based entity that houses its markets and investment banking business. Well,

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Speaker 2: Tina joins us and take a look now our first

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Speaker 2: six months in the role has god Tina, thank you

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Speaker 2: so much actually for joining us. I mean, you have

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Speaker 2: a big new job in one of the most exciting

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Speaker 2: and difficult imagine restructuring for Wall Street bag.

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Speaker 1: How does a UK fit.

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Speaker 2: In all of this?

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Speaker 3: The UK is at the heart of Cities Global operations.

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Speaker 3: So for me it's really a fantastic opportunity to come

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Speaker 3: and look at what is an amazing franchise in the

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Speaker 3: UK already and how it plugs into our global network.

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Speaker 1: No one does global like.

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Speaker 3: City and therefore really the opportunity here in the UK

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Speaker 3: is going to be quite unique. As you said, you know,

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Speaker 3: we've just concluded actually the most significant management reorganization for

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Speaker 3: a number of years. That is now over, which is great,

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Speaker 3: which means that now we can do what we're really

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Speaker 3: good at, which is executing on our strategy and most

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Speaker 3: importantly delivering for our clients.

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Speaker 2: So what does that look like? Do you know?

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Speaker 1: Is it hiring?

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Speaker 2: Do you see a pipeline in M and A and

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Speaker 2: apos So two things.

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Speaker 3: Absolutely, there's an opportunity. We have a fantastic franchise already,

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Speaker 3: but I'm ambitious and we can clearly do more. So

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Speaker 3: as part of my new role, I'm responsible for not

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Speaker 3: only investment banking but also the corporate bank and the

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Speaker 3: commercial bank. So what that means is of course and

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Speaker 3: we'll be looking to hire strategically, particularly in some of

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Speaker 3: the fast growing areas, such as our commercial banking franchise,

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Speaker 3: where I believe we have a real sweet spot in

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Speaker 3: supporting fast growing mid cap companies in the UK, particularly

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Speaker 3: when they decide to go global into the US and

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Speaker 3: into Asia and City I think has a real sweet

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Speaker 3: spot in that area. But as you said, we've actually

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Speaker 3: got a very positive backdrop in terms of markets, in

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Speaker 3: terms of tone, and of course we've seen deck capital

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Speaker 3: markets on fire since the beginning of the year. We've

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Speaker 3: seen the refinancing of some leverage finance transactions, and of

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Speaker 3: course what we have seen with global equity markets has

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Speaker 3: meant that actually the mood music across ECM and M

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Speaker 3: and A has been the most positive than we have seen.

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Speaker 1: For a number of quarters.

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Speaker 2: Do you see twenty twenty four as a good year

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Speaker 2: or a better year certainly than what we saw in

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Speaker 2: twenty twenty three?

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Speaker 3: Absolutely, I mean, I think when one looks across at

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Speaker 3: the activity now, we always know that the road from

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Speaker 3: pipeline through to execution can be long. But certainly when

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Speaker 3: we speak to clients and when I engage with clients,

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Speaker 3: they're way more positive than they have been in recent quarters.

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Speaker 3: So it's really about taking those opportunities as they come.

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Speaker 3: You know, we have to be selective with regard to

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Speaker 3: the right deals at the right time. But markets are

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Speaker 3: open and there's plenty of opportunity.

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Speaker 2: And do you think London is back? I know there's

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Speaker 2: a lot of questions about whether, you know, shine should

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Speaker 2: I po here because of some of the questions surrounding

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Speaker 2: the ethics.

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Speaker 3: Look, London is still a powerhouse for financial services.

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Speaker 1: That's not going to change.

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Speaker 3: So there's of course been an enormous amount of focus

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Speaker 3: in terms of all the structural reform that has taken

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Speaker 3: place over the last few years. We need to just

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Speaker 3: deliver on that, and that's really the key message for

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Speaker 3: government for regulators. There's been a lot of steps that

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Speaker 3: have been taken alongside City execution now is key.

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Speaker 1: But again, so how would you do that?

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Speaker 2: And there's you know, there's Mansion House, there's a number

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Speaker 2: of reforms, but also in trying there's a British Ice

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Speaker 2: which we're not sure what happens at the next selection

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Speaker 2: to it. What do you think would really kick start

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Speaker 2: UKPLC and therefore the UK banking sector.

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Speaker 1: So look, there's no silver bullet.

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Speaker 3: Really what this is about is cumulative structural reform which

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Speaker 3: has begun. So this is like turning around an oil

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Speaker 3: tanker in the UK. We're not going to necessarily see

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Speaker 3: immediate impacts over the next twelve months, but I firmly

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Speaker 3: believe that over the next five to ten years we're

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Speaker 3: going to look back and say that actually, what this

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Speaker 3: government has done, what regulators have done, what the Stock

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Speaker 3: Exchange has done with regard to reforming listing rules and

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Speaker 3: the sponsor regime actually will go to make the UK

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Speaker 3: a far more competitive place. To do business and to

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Speaker 3: allow long term investment decisions for our corporate clients.

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Speaker 2: You know, there's always this battle between Canary Warrif and

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Speaker 2: the City of London in the battle for a financial

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Speaker 2: services or attracting even lawyers and Europe kind of.

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Speaker 1: On the dockland camp.

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Speaker 2: Now do you think it will win over the square mile.

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Speaker 3: I don't think it's a zero sum game. I think winners.

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Speaker 3: At the end of the day, London is the winner

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Speaker 3: in having these two fantastic financial services centers. You will

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Speaker 3: know that in terms of Canary Wharf, we've already made

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Speaker 3: a long term commitment. We're in the middle of a

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Speaker 3: major financial commitment in referbing City Tower that's going to

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Speaker 3: be concluded in twenty twenty six, so we will have

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Speaker 3: once again the iconic building at the heart of Canary Wolf.

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Speaker 1: So we're not going anywhere.

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Speaker 3: I think what is really encouraging is actually all the

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Speaker 3: work that Canary Wolf under Showby's leadership has done with

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Speaker 3: regard to actually regenerating the whole estate, making more mixed use.

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Speaker 3: It's great for our work colleagues to be able to

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Speaker 3: go out and actually take some time outside of the

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Speaker 3: office as well as providing a great working environment.

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Speaker 1: So we're very happy.

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Speaker 2: When you traveled in the UK, what do your regional

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Speaker 2: managers say they need from you or from the government

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Speaker 2: against election year and so there's a lot of question

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Speaker 2: works on how labor if they were to come into power,

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Speaker 2: deal with financial services as a priority.

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Speaker 3: So I've been really encouraged by whether it is the

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Speaker 3: current government or any potential future government, what the key

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Speaker 3: message has been is how do we create a stable

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Speaker 3: and predictable environment for our clients. So City is politically agnostic.

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Speaker 3: We obviously care about the future of financial services and

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Speaker 3: we care about the future of the UK economy. But

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Speaker 3: actually I've been very encouraged by both sides of the

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Speaker 3: House being very open to how we can make the

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Speaker 3: UK more competitive.

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Speaker 1: For City.

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Speaker 3: We have four thousand people in Belfast in Northern Irelands,

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Speaker 3: so for us it's not just a London story. Actually

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Speaker 3: how we can develop the nations and regions for us,

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Speaker 3: you know, Northern Ireland and Belfast it is really our

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Speaker 3: key site. But actually being able to create high value

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Speaker 3: financial services jobs for people in their local communities is

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Speaker 3: also really important.

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Speaker 1: Are you expecting to start hiring again. We're hiring selectively.

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Speaker 3: So for example, in our commercial banking business, not only

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Speaker 3: are we looking to make strategic hires, but were also

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Speaker 3: looking to acquire new clients. So that's an area that

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Speaker 3: I'm very excited about. So you know, we're not going

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Speaker 3: out and hiring lots and lots of people, but we

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Speaker 3: will be strategic about it.

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Speaker 2: You know what makes you most worried about the next

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Speaker 2: fourteen to sixteen months.

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Speaker 1: I mean, you know.

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Speaker 2: Half the people we speak to, so actually the UK

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Speaker 2: could be a began of stability because of our the

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Speaker 2: geopolitics and everything that's going on in the world. Other

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Speaker 2: saying actually, no matter what happens, the UK will be

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Speaker 2: taking with these volatile markets as they don't really know

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Speaker 2: where to look.

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Speaker 3: Well, I think actually the economic backdrop is looking positive

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Speaker 3: when one thinks about the outlook for inflation. We've already

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Speaker 3: started to see some dubbish comments a little bit earlier

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Speaker 3: from Catherine but also really from the FED and from

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Speaker 3: Governor Bailey last week. So I think the tone in

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Speaker 3: the market is going to improve. You know, clearly in

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Speaker 3: terms of growth, I think there needs to be more

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Speaker 3: focus around growth than around productivity. But certainly I think

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Speaker 3: as we think about the end of the year and beyond,

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Speaker 3: you know, we'll start to see growth actually build up

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Speaker 3: in the UK and I think that will be good.

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Speaker 2: And do you see it with your clients that they're

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Speaker 2: already you know, the chief executive the smaller media sized

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Speaker 2: companies that you were talking about, that they're rating maybe

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Speaker 2: to spend more or invest.

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Speaker 1: They're all very keen to invest.

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Speaker 3: I think the challenge is, you know, how do we

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Speaker 3: ensure that they invest here in the UK. Many of

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Speaker 3: our clients are global or we have clients that are

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Speaker 3: UK based that are looking outwards, and again that's an

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Speaker 3: area where city can really help. We have a global

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Speaker 3: network that's second to none. You know, we're in ninety

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Speaker 3: six different countries. We have an incredible network. So how

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Speaker 3: do we help support UKPLC do business around the globe.

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Speaker 2: And is their appetite actually for traveling and is this

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Speaker 2: outside that you are you seeing patterns or where some

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Speaker 2: of these business leaders want to invest in it.

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Speaker 3: That's right, we are and certainly one of the areas

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Speaker 3: that I'm going to be focused on is how we

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Speaker 3: can do more business in North America with our clients,

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Speaker 3: but also certain trade routes. So whether that be into

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Speaker 3: the Middle East, whether that be into India, into China.

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Speaker 1: So there are lots of areas.

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Speaker 3: Of activity that we're going to be focused on in

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Speaker 3: terms of how we can do that international business for

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Speaker 3: our UK clients.

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Speaker 2: I know in the past you've been very focused on diversity.

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Speaker 2: Isg that seems to be taking a little bit of

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Speaker 2: a step back. Is it just in twenty twenty for

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Speaker 2: something that does take a step back and then it

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Speaker 2: comes back to the forefront, or do you still see

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Speaker 2: it premiating in some of your conversations with clients.

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Speaker 3: It's still front and center in terms of our conversations.

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Speaker 3: We know that transition plans are going to take a

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Speaker 3: long time. You know, we're talking about twenty to twenty

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Speaker 3: five years. So actually what we're focused on is making

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Speaker 3: sure that we can continue to advise clients on how

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Speaker 3: they can transition to net zero. It's not just about

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Speaker 3: twenty four it's beyond. So we can play a key

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Speaker 3: role in helping those clients transition, whether it be old

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Speaker 3: economy clients or of course those clients that are based

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Speaker 3: upon emerging industries clean energy renewables that will actually be

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Speaker 3: the future of the economy.

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Speaker 2: Tina, Thank you so much for joining us today. That

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Speaker 2: was at Tinelli, of course, the chief executive of Citygroup

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Speaker 2: UK