WEBVTT - Kwasi Plays His Hand: Who Wins? 0:00:13.920 --> 0:00:17.360 After a historic few days in Britain with the Queen's 0:00:17.400 --> 0:00:21.040 state funeral this week, it's really now back to business. 0:00:21.560 --> 0:00:23.360 It is back to business for the UK. But Dave 0:00:23.440 --> 0:00:25.759 really are a question, Like our last episode pointed out, 0:00:25.840 --> 0:00:28.160 was there ever really a break for the new government 0:00:28.320 --> 0:00:31.080 Behind the scenes, we know furious work going on for 0:00:31.120 --> 0:00:35.000 a huge economic support package bailing out households, businesses, also 0:00:35.400 --> 0:00:38.640 a vast rat of tax cards to try to stimulate 0:00:38.640 --> 0:00:40.440 the economy. Yes, it is a big week for the 0:00:40.440 --> 0:00:42.879 Prime Minister. She started the week by flying to the 0:00:42.920 --> 0:00:45.839 United Nations General Assembly New York, where I am. It's 0:00:45.880 --> 0:00:48.479 her first outing on the world stage as UK Premier. 0:00:48.520 --> 0:00:50.479 And then of course she ends the week in the 0:00:50.479 --> 0:00:53.519 House of Commons as her chancellor lays out a mini budget. 0:00:53.960 --> 0:00:55.640 And the day before that we're going to have the 0:00:55.640 --> 0:00:59.680 Bank of England the markets forecasting yet more rate hikes. 0:00:59.760 --> 0:01:02.720 That meeting was delayed for a week because of the 0:01:02.760 --> 0:01:04.880 official morning period, so we're gonna have the Bank of 0:01:04.920 --> 0:01:08.320 England Thursday afternoon. Dramatic moves there, and then this statement 0:01:08.319 --> 0:01:10.840 which really is a sort of emergency budget from the 0:01:10.840 --> 0:01:14.959 new Chancellor on Friday. She's really back full throttle under 0:01:14.959 --> 0:01:19.680 pressure over a deepening economic crisis. I'm David Merritt in 0:01:19.720 --> 0:01:21.920 the London studio and I'm francing like when the New 0:01:22.000 --> 0:01:25.320 York studio not together again, David, But this for the 0:01:25.360 --> 0:01:27.000 first time a long time, is actually for a reason. 0:01:27.040 --> 0:01:30.280 I'm here for the UN General Assembly and it's especially 0:01:30.280 --> 0:01:33.119 important for the UK Prime Minister. It's her first foreign 0:01:33.160 --> 0:01:35.960 trip as PM is first trip as well, exactly. So 0:01:36.000 --> 0:01:38.120 this is in the City Blombergs podcast, connecting you to 0:01:38.160 --> 0:01:40.119 the stories at the heart of the City of London. 0:01:40.560 --> 0:01:44.400 This week, as Francine mentioned, British politics has returned full 0:01:44.560 --> 0:01:47.800 throttle with the new Prime Minister considering to face pressure 0:01:47.800 --> 0:01:52.280 over a deepening economic crisis. So our Liz trusts and 0:01:52.400 --> 0:01:56.320 her team ready for this high stakes moment. And does 0:01:56.320 --> 0:01:58.680 the City of London think they're making the right calls? 0:01:59.200 --> 0:02:02.760 We'll hear from Eagle and General Chief Executive Officer Nigel Wilson, 0:02:03.080 --> 0:02:07.520 who says Chancellor Quasi Kwarteng has the right intent, but 0:02:07.600 --> 0:02:12.000 still the question remains can he deliver the first Bloomberg 0:02:12.000 --> 0:02:15.200 Opinion columnist Marcus Ashworth joins us in conversation over some 0:02:15.600 --> 0:02:20.040 headline grabbing policies that might be coming and whether Quartengs 0:02:20.400 --> 0:02:24.800 all systems go approach is winning anyone over. So Marcus, 0:02:25.040 --> 0:02:28.519 let's start with reports that the government is considering scrapping 0:02:28.720 --> 0:02:32.280 its cap on bankers bonuses. The problem is that if 0:02:32.280 --> 0:02:34.680 you focus on bonuses, it means a lot of people 0:02:34.880 --> 0:02:39.040 will be discontent. I think that I'm going to hope 0:02:39.080 --> 0:02:41.200 that this was just the leak, not a good sign 0:02:41.240 --> 0:02:42.760 of the start of a new government, but that old 0:02:42.760 --> 0:02:44.560 government had lots of leaks and this one probably is 0:02:44.560 --> 0:02:46.920 going to have the same problems. You wouldn't put this 0:02:46.960 --> 0:02:51.800 particular cart before the horse of of changing the rules 0:02:51.840 --> 0:02:54.760 generally in the city, which you've got thoroughly ignored throughout 0:02:54.760 --> 0:02:57.720 the whole Brexit process. And perhaps this new government wants 0:02:57.720 --> 0:03:00.840 to try and appreciate that one to the economy is 0:03:00.840 --> 0:03:03.079 focused on financial services. The city needs to have a 0:03:04.000 --> 0:03:06.280 clearer sense the direction and perhaps some of these rules 0:03:06.280 --> 0:03:09.120 need to be changed. But um, the government needs to 0:03:09.120 --> 0:03:11.600 do this in sync with the Bank of England and 0:03:11.639 --> 0:03:15.079 the wider administration part of it, and indeed with the 0:03:15.160 --> 0:03:18.520 with the city itself, which is going to be circumspect 0:03:18.560 --> 0:03:21.840 about bonuses, because this is actually a good thing for banks, 0:03:22.000 --> 0:03:26.000 not necessary for bankers. It's good to focusing the attractiveness 0:03:26.000 --> 0:03:27.440 of the city, but in the right way, and it 0:03:27.440 --> 0:03:29.720 needs to be part of an overall package, not leading 0:03:29.720 --> 0:03:32.280 with these ridiculous bonus right. I'm their very They're very 0:03:32.320 --> 0:03:36.160 headline catching, aren't they, But not a vote winner, well know, 0:03:36.560 --> 0:03:38.960 quite the reverse and more active, willful sort of please 0:03:39.000 --> 0:03:42.440 write this into your Labor Party h and liberal Democratic 0:03:42.960 --> 0:03:45.480 election of leaflets. But at the same point, if it's 0:03:45.520 --> 0:03:48.720 part of a wider package, then yet the government should 0:03:48.760 --> 0:03:50.440 not be in the paid having businesses. It was a 0:03:51.240 --> 0:03:54.920 rule forced on the city which never really worked with 0:03:54.960 --> 0:03:57.520 it very well. As a consequence, basic salaries went through 0:03:57.560 --> 0:04:01.600 the roof. It's an ugly situation. But this can be 0:04:01.640 --> 0:04:05.000 unwell at a better time, perhaps after a deal or 0:04:05.000 --> 0:04:06.920 the European Union there ever is to be one on 0:04:06.960 --> 0:04:10.640 regulatory equivalence. Moves like this make it less likely, not 0:04:10.760 --> 0:04:12.760 more likely, and that isn't what the city wants. So 0:04:12.840 --> 0:04:14.400 that was what I was going to ask, because I mean, 0:04:14.480 --> 0:04:18.000 is this move likely to provoke the European Union into 0:04:18.040 --> 0:04:20.600 some sort of tougher line on the city. Well, I'm 0:04:20.600 --> 0:04:22.200 not sure. I think they're probably a bit stunned. Like 0:04:22.240 --> 0:04:24.520 the rest of US as in really this one. First, 0:04:24.800 --> 0:04:26.880 they know that a bit of divergence is going to come. 0:04:26.960 --> 0:04:30.000 That's written in the stars. The question is whether or 0:04:30.040 --> 0:04:31.719 not there can be an overall deal, whether the EU 0:04:31.800 --> 0:04:34.760 can relax that. Essentially the City is going to allow 0:04:34.839 --> 0:04:38.600 the control and perhaps the gentle stimulation of the European 0:04:38.640 --> 0:04:41.159 financial system now certain things like clearing. I think the 0:04:41.160 --> 0:04:44.400 city has won that argument. But with regards to you know, 0:04:44.400 --> 0:04:47.039 where bankers are based and should people trading Euros be 0:04:47.120 --> 0:04:49.839 based in Europe rather than just in the city, I 0:04:49.880 --> 0:04:52.279 think there's a there's a fair middle ground to be 0:04:52.320 --> 0:04:54.000 had and I think you know, we are getting towards 0:04:54.000 --> 0:04:56.640 their whether the city likes or not, because the ECB 0:04:56.839 --> 0:04:59.640 is quite insistent on this, but you know, the Bank 0:04:59.680 --> 0:05:01.440 of England. We have to play quite a careful game 0:05:01.480 --> 0:05:07.440 on this and it needs help from the government, not unhelped, 0:05:07.560 --> 0:05:09.400 but somewhere because this is not about bringing back the 0:05:09.400 --> 0:05:12.800 bankers that left because of Brexit. I don't think is 0:05:12.839 --> 0:05:15.200 that ship has sailed. Um. I think it does help 0:05:15.320 --> 0:05:17.880 US banks and their flexibility, and that's really the big 0:05:17.880 --> 0:05:20.680 audience here and across Europe and the city. You want 0:05:20.720 --> 0:05:22.520 to make sure your Golden Saxes and your and your 0:05:22.520 --> 0:05:26.640 Bank of America's, etcetera. Are encouraged to employ people here 0:05:26.960 --> 0:05:29.000 and be able to compensate them without less hassle that 0:05:29.080 --> 0:05:30.880 they would be maybe in Hong Kong or New York. 0:05:31.200 --> 0:05:33.800 And that's the comparison I think the bankers have left 0:05:33.839 --> 0:05:36.599 for for Europe. Are there for a reason I would 0:05:36.600 --> 0:05:39.520 likely stay there. And timing timing aside. You said the 0:05:39.520 --> 0:05:42.120 timing is bad potentially in terms of like the publicity, 0:05:42.160 --> 0:05:44.600 but just this message that the government is getting out 0:05:44.600 --> 0:05:48.160 of the business setting pay. I mean, surely that's kind 0:05:48.160 --> 0:05:50.360 of a good thing for Britain's image around the world, 0:05:50.400 --> 0:05:51.960 isn't it. Yeah. I mean obviously doing the same with 0:05:52.000 --> 0:05:53.800 corporation tax. They're not going to hike it. They are 0:05:53.800 --> 0:05:55.800 trying to say global Britain. You know, lots of clacks 0:05:55.800 --> 0:06:00.480 alerts going off here, aren't there Aspiration Nation? Sure, that's 0:06:00.480 --> 0:06:03.200 what people thought when it was about Bagger's bonuses. But 0:06:03.560 --> 0:06:05.720 nonetheless it does send an image if they can back 0:06:05.760 --> 0:06:07.120 it up. But as a one off of his just 0:06:07.240 --> 0:06:09.600 a one off, then it's it's it's the wrong cart 0:06:09.680 --> 0:06:12.160 before you know, the much more valuable horse of of 0:06:12.200 --> 0:06:14.520 regulatory equipments with Europe, which may or may not be 0:06:15.200 --> 0:06:17.960 ever achieved. But this isn't necessary if this is just 0:06:18.040 --> 0:06:20.800 on its own the right way of going about it, Marcus, 0:06:20.839 --> 0:06:29.240 thank you so much, Thanks Marcus. Earlier this month, in 0:06:29.320 --> 0:06:33.240 one of his first official acts, Quasi Quarteing held a 0:06:33.320 --> 0:06:35.720 meeting in Downing Street with a group of chief executives 0:06:35.720 --> 0:06:40.800 and senior figures from banks, insurers and asset managers, and 0:06:40.880 --> 0:06:43.280 he announced his plans to release a sort of big 0:06:43.320 --> 0:06:48.000 bang two of reforms to boost the city of London. Now, 0:06:48.160 --> 0:06:50.279 one of the people who was actually in that meeting, 0:06:50.520 --> 0:06:53.599 Legal ind General Chief executive Officer Nigel Wilson, joins us 0:06:53.640 --> 0:06:57.120 now for his take on the Chancellor's vision, and also 0:06:57.200 --> 0:07:01.920 with us is Bloomberg's finance editor through Griffiths. No I thot, 0:07:01.960 --> 0:07:03.720 it feels like it was only a few months ago 0:07:03.720 --> 0:07:05.800 when we spoke, but it we're on another planet now, 0:07:05.839 --> 0:07:09.120 aren't we. We We've got a different government, We've got 0:07:09.320 --> 0:07:11.880 a radical new agenda they're going to be pushing through now. 0:07:12.040 --> 0:07:17.480 The new Chancellor, Quasi Quateng hosted business leaders in Downing 0:07:17.520 --> 0:07:19.880 Street fairly recently. You were in that meeting. What can 0:07:19.920 --> 0:07:21.440 you tell us we'll do a bit of a reporting 0:07:21.440 --> 0:07:23.000 for us. What was it like in the room and 0:07:23.040 --> 0:07:25.000 did he convince you all that his plan is the 0:07:25.080 --> 0:07:27.280 right one? I think it was. First of all, it 0:07:27.360 --> 0:07:29.520 was great that invited us. You know, the first Cabinet 0:07:29.520 --> 0:07:31.680 meeting had just finished and the people who wanted to 0:07:31.680 --> 0:07:35.280 see were the chief executives of them are the biggest 0:07:35.280 --> 0:07:38.360 financial institutions in Britain. That was a very positive signal 0:07:38.440 --> 0:07:41.440 around it. And he's naturally a pretty up big guy, 0:07:41.760 --> 0:07:44.560 and so he was very upbeat about the prospects for 0:07:44.600 --> 0:07:47.240 the UK and he was actively listening as well as 0:07:47.240 --> 0:07:50.480 being on broadcast mode. So it was positive meeting from 0:07:50.480 --> 0:07:53.480 that point point of view. So you think the government 0:07:53.640 --> 0:07:55.680 is pivoting to listening a bit more? He said he 0:07:55.720 --> 0:07:57.960 was in broadcast mode as well. But you know it's 0:07:57.960 --> 0:08:02.440 no secret is it that Boris Johnson's government um had 0:08:03.040 --> 0:08:05.400 a different attitude throughout the Brexit years, perhaps to the 0:08:05.400 --> 0:08:08.480 business community. Without quoting him, I think Catherine I recruited 0:08:08.480 --> 0:08:10.640 a lot of time we spoke about this and that 0:08:10.720 --> 0:08:13.040 pivots are actually listening. Do you do you think there's 0:08:13.040 --> 0:08:14.800 a real kind of meat on the bones of that. Yes, 0:08:14.840 --> 0:08:17.360 I would hope. So I think we desperately need to 0:08:18.480 --> 0:08:22.040 have everybody pointing in the same direction that we need 0:08:22.080 --> 0:08:24.360 investment led growth across the UK. We've never had that 0:08:24.400 --> 0:08:27.080 for thirty or forty years, and you need the business 0:08:27.120 --> 0:08:31.160 leaders to support that investment led growth. And you know, 0:08:31.560 --> 0:08:34.120 there's still a huge amount of unused capital in the 0:08:34.200 --> 0:08:36.760 UK and we've got to use that capital to develop 0:08:37.160 --> 0:08:40.200 and deliver better outcomes. And it's great that the government 0:08:40.240 --> 0:08:42.880 wants to engage on that. What would be your top 0:08:42.960 --> 0:08:45.080 few things that you'd really like to hear from the 0:08:45.120 --> 0:08:48.600 new chancellor to kind of achieve this proper leveling up 0:08:48.679 --> 0:08:52.080 and and real kind of getting investment going to kind 0:08:52.080 --> 0:08:53.719 of do the kind of things that you that you 0:08:53.760 --> 0:08:56.560 would like to see. Yes, I mean, if you if 0:08:56.559 --> 0:08:58.560 you go back to the seventies and the eighties, I mean, 0:08:58.559 --> 0:09:01.240 the seventies are a predio ismal time and there's lots 0:09:01.280 --> 0:09:03.360 of parallels between what happened in the nineteen seventies in 0:09:03.400 --> 0:09:07.079 Britain and what is happening today with inflation rates, a 0:09:07.160 --> 0:09:09.959 war going on, oil prices, energy prices. We had three 0:09:10.040 --> 0:09:13.679 day a week and energy was rationed in the nineteen seventies. 0:09:14.520 --> 0:09:16.800 We've got a similar sort of situation right now. But 0:09:16.880 --> 0:09:19.640 what happened in ninety in the early eighties was big 0:09:19.640 --> 0:09:25.720 back and actually policy, regulation, planning all work together and 0:09:25.760 --> 0:09:28.400 we built this new city called the City of City 0:09:28.400 --> 0:09:32.800 of London and it became very dynamic. We stopped there, though, 0:09:32.960 --> 0:09:34.920 and we never went and made that right across We 0:09:35.040 --> 0:09:37.720 never delivered right across the country. So London, you know, 0:09:37.800 --> 0:09:40.920 became this incredible shining staff for the for the for 0:09:40.960 --> 0:09:43.000 the world. You know, in the seventies, rubbish was piled 0:09:43.360 --> 0:09:46.360 thirty feet high in parts of London and learning was 0:09:46.400 --> 0:09:50.439 depopulating at the time, and we saw a dramatic turnaround. 0:09:50.440 --> 0:09:53.280 We saw a dramatic turnaround in the economy between Nino 0:09:54.120 --> 0:09:56.640 n three and you know, I had this discussion with 0:09:56.720 --> 0:09:59.000 John Major, you know where you know, there was a 0:09:59.040 --> 0:10:01.800 huge difference between between it because we started to get 0:10:01.840 --> 0:10:05.040 policy planning and regulation right to create the right backdrop. 0:10:05.280 --> 0:10:07.320 And that's what I want to hear the government talking about. 0:10:07.520 --> 0:10:09.760 And it matters for the whole country that we get 0:10:09.760 --> 0:10:13.720 policy planning and regulation and everybody collaborates together because there's 0:10:13.720 --> 0:10:16.440 still the money around, you know, the big banks, in 0:10:16.559 --> 0:10:19.960 part by accident, we ring fence the big banks, and 0:10:20.000 --> 0:10:22.240 so there was ring fence. Banks are sitting on huge 0:10:22.240 --> 0:10:24.880 amounts of capital, the pension funds are sitting on huge 0:10:24.880 --> 0:10:28.000 amounts of capital. The insurance companies have huge amount of capital. 0:10:28.280 --> 0:10:32.360 We need to redeploy that capital into useful activities and 0:10:32.400 --> 0:10:34.920 there's tons of opportunities for doing that. Virtually every sector 0:10:34.960 --> 0:10:37.040 in the UK can have a change of regulation, a 0:10:37.080 --> 0:10:41.280 bit better planning and more investment and that will allow 0:10:41.400 --> 0:10:43.839 you GDP to grow and per capital income to grow, 0:10:43.880 --> 0:10:45.840 and we haven't seen that for a long time. So 0:10:45.880 --> 0:10:49.280 it's specifically to get that done. Then are we talking about, 0:10:49.440 --> 0:10:52.120 I mean things like solvency too is one. You're talking 0:10:52.120 --> 0:10:55.320 about freeing up capital that's currently tied up. That's sort 0:10:55.320 --> 0:10:57.920 of reform that needs to happen. Yes, I mean solvently 0:10:57.960 --> 0:11:00.840 two is the easiest win because it doesn't have the 0:11:00.880 --> 0:11:03.480 overlay of basil, which the banks have to a more 0:11:03.520 --> 0:11:07.880 complicated situation as a consequence of that. But someboty two 0:11:07.880 --> 0:11:11.839 we've had the right to change since sixteen. For whatever reason, 0:11:11.920 --> 0:11:14.880 we've chosen not to do that, and that's an easy 0:11:14.880 --> 0:11:18.440 win for the government to encourage more investment by firms 0:11:18.480 --> 0:11:20.679 like ours and we're putting our hands up and say yes, 0:11:20.720 --> 0:11:22.719 we'd like to invest more in the UK because it 0:11:22.800 --> 0:11:25.480 is a great place to invest. And policy has not 0:11:25.520 --> 0:11:28.680 been changed fast enough. It's been a very difficult time 0:11:28.760 --> 0:11:31.760 for the government to get through real changes in policy, 0:11:31.800 --> 0:11:33.800 and all of these things have to change, and the 0:11:33.920 --> 0:11:36.400 change in a crisis. When I talked about the seventies, 0:11:36.679 --> 0:11:38.760 the part of the reason that we got stuff done 0:11:38.800 --> 0:11:41.959 in the eighties because there had been a crisis. There 0:11:42.040 --> 0:11:45.760 was a crisis. Check the records, big growth here for 0:11:45.800 --> 0:11:48.839 the UK. And we're in a crisis now right, we're 0:11:48.840 --> 0:11:52.520 in an energy crisis. When an inflation crisis, we're war 0:11:52.640 --> 0:11:56.400 obviously the Ukraine with Russia. Yes, we are in a crisis, 0:11:56.440 --> 0:11:58.319 and I think that's why, you know, just blaming the 0:11:58.360 --> 0:12:01.000 Bank of England for inflation isn't the right answer, and 0:12:01.480 --> 0:12:04.079 it's actually you know, America has got a very similar 0:12:04.160 --> 0:12:06.520 level of inflation. Most of Europe has a very similar 0:12:06.559 --> 0:12:09.760 level of inflation. Inflation is very complicated. We've lived in 0:12:09.760 --> 0:12:12.160 a world where we hadn't really considered inflation for a 0:12:12.240 --> 0:12:15.120 very long period of time. Rates have been very constant 0:12:15.160 --> 0:12:17.360 and so there hasn't been not so much going on 0:12:17.720 --> 0:12:20.240 now we've got an enormous amount of things going wrong 0:12:20.240 --> 0:12:23.840 and people are very fearful of that. And Nigel, what 0:12:23.920 --> 0:12:27.240 about tax? How how important is it for the government 0:12:27.800 --> 0:12:31.640 to say something on tax? Obviously we know where what 0:12:31.720 --> 0:12:34.640 List Trusts is likely to say it's been very well 0:12:34.679 --> 0:12:38.120 flagged on corporation tax. But do you think that in 0:12:38.200 --> 0:12:41.199 fact there could be more that's done on tax across 0:12:41.200 --> 0:12:44.079 the business world or indeed perhaps for the financial sector 0:12:44.520 --> 0:12:48.120 that could kind of really kick start investment. I think 0:12:48.440 --> 0:12:52.640 tax is one item, but actually it's not such a 0:12:52.720 --> 0:12:55.080 high priority item right now as many of the other 0:12:55.600 --> 0:12:59.160 other issues that we have. People have underinvested in Britain 0:12:59.440 --> 0:13:02.480 during numerous different tax regimes over the last thirty or 0:13:02.480 --> 0:13:06.120 forty years, and that's because of the lack of collaboration 0:13:06.480 --> 0:13:10.800 and coordination across the across the across the UK, which 0:13:10.800 --> 0:13:14.040 has meant our GDP per capital has performed poorly against 0:13:14.040 --> 0:13:16.440 lots of our peer groups. And we have you know, 0:13:16.600 --> 0:13:20.320 as we know, only London has a hyper capital income 0:13:20.400 --> 0:13:23.440 of any of any city or town, any large city 0:13:23.480 --> 0:13:26.560 or town in the UK was compared with Dresden, Leipzig 0:13:26.640 --> 0:13:29.080 and Berlin. And that's in a generation they've caught up 0:13:29.080 --> 0:13:32.280 in past past us and that's because of these reasons 0:13:32.320 --> 0:13:34.439 that we haven't done the right things here in the 0:13:34.520 --> 0:13:37.360 UK for a long period of time. People haven't collaborated together, 0:13:37.600 --> 0:13:40.560 and people have pointed fingers that other people giving them 0:13:40.760 --> 0:13:44.200 the blame when it actually isn't their fault. So do 0:13:44.240 --> 0:13:47.120 you think corporation tax doesn't have a huge effect. I mean, 0:13:47.120 --> 0:13:49.360 you know, we've had a concert the it's been a 0:13:49.400 --> 0:13:53.280 previous Conservative chancellors right who raised corporation tax and said, look, 0:13:53.520 --> 0:13:57.120 it doesn't necessarily drive away investment. Trust is pretty clear, 0:13:57.240 --> 0:13:59.800 she says. And Quartack they're saying, look, we have to 0:13:59.840 --> 0:14:02.480 have lower corporation tax rates that are than our neighbors, 0:14:02.480 --> 0:14:05.560 than our European competitors if we're going to attract businesses. 0:14:05.679 --> 0:14:08.679 Is she broke up. It's not the wrong tree, but 0:14:08.720 --> 0:14:10.360 it's just one of the elements. And I think it 0:14:10.480 --> 0:14:13.120 goes back to you know what, what is a comprehensive 0:14:13.160 --> 0:14:15.640 package that makes the UK more attractive. It isn't a 0:14:15.679 --> 0:14:18.319 single item if all of the other things are. You know, 0:14:18.360 --> 0:14:19.960 if it's going to take your seven years to get 0:14:19.960 --> 0:14:22.800 planning in London, doesn't matter what the corporation taxes. To 0:14:22.800 --> 0:14:25.560 be frank you keep talking about planning. Actually, and this 0:14:25.600 --> 0:14:28.080 is really interesting, I think because actually this is sort 0:14:28.080 --> 0:14:30.240 of out of the remit I guess, of the normal 0:14:30.320 --> 0:14:34.120 kind of chancellors plans. But are you saying, do you 0:14:34.160 --> 0:14:37.480 think this government is going to finally face through Well, 0:14:37.480 --> 0:14:39.560 they talked about sort of cuts, making it easier to 0:14:39.560 --> 0:14:42.080 push through programs, getting rid of some of the planning 0:14:42.160 --> 0:14:44.360 laws that's pretty controversial in some parts of the country. 0:14:44.520 --> 0:14:47.240 We have to be more forward looking about changing plan 0:14:47.440 --> 0:14:50.600 changing planning, using compultory purchase orders, which people have always 0:14:50.640 --> 0:14:52.840 been reluctant to do in the past. And we have 0:14:52.920 --> 0:14:54.920 to be bald about these things. You know, when I 0:14:55.000 --> 0:14:57.440 think of how much the city changed in the in 0:14:57.480 --> 0:15:00.960 the nineteen eighties for the better. We have to do 0:15:01.000 --> 0:15:03.880 that right across the country. That's just an absolute given. 0:15:03.920 --> 0:15:06.120 You know. Corporation tax is just one of those signals 0:15:06.120 --> 0:15:09.240 that actually we are open for business to do more 0:15:09.280 --> 0:15:12.240 investment here in the UK and you'll see a more 0:15:12.560 --> 0:15:15.960 dynamic government as a consequencer. That's the messaging they're giving. 0:15:16.200 --> 0:15:19.920 That's certainly the messaging that the that we the chief 0:15:19.920 --> 0:15:22.960 executives of the financial services sector picked up and we 0:15:23.000 --> 0:15:25.600 now we we have our job to deliver, and we 0:15:25.680 --> 0:15:28.400 try and deliver, you know, continuously and for a long 0:15:28.440 --> 0:15:30.880 period of time. The government has to do the same. 0:15:31.120 --> 0:15:34.000 To talking about messaging, I mean this boat, the banker 0:15:34.120 --> 0:15:37.280 bonus cap that is called a lot of headlines in 0:15:37.320 --> 0:15:40.400 the last few days. There's Trust is in New York. 0:15:40.480 --> 0:15:44.800 As we record this, she's told our reporter that, um, well, 0:15:44.800 --> 0:15:46.800 this might not be particularly popular. It's not a vote winner, 0:15:46.840 --> 0:15:48.840 is it. But is it about the messaging that sends 0:15:48.960 --> 0:15:52.600 to investors, to financial institutions that the government shouldn't be 0:15:52.600 --> 0:15:54.920 in the business of setting pay and leave it up 0:15:54.960 --> 0:15:57.800 to corporations. Yes, I think this is about messaging. This 0:15:57.840 --> 0:16:01.920 is not about massive amounts of um and it's you know, 0:16:01.960 --> 0:16:03.520 I think this is one of the things that leaked 0:16:03.520 --> 0:16:05.880 ahead of time because it's an immotive issue and an 0:16:05.920 --> 0:16:09.440 unpopular issue, and therefore people want to rant rant about it. 0:16:09.480 --> 0:16:11.760 But actually it's just one of the tools and the 0:16:11.840 --> 0:16:14.160 many tools that the government is trying to adopt to 0:16:14.400 --> 0:16:16.920 change the position of the UK. Now, so I do 0:16:17.040 --> 0:16:21.400 wonder on this planning stuff. You know, Trust and Quotaine 0:16:21.440 --> 0:16:24.520 have been very keen to talk about how radical they 0:16:24.560 --> 0:16:26.680 are and how keen they are to be bold and 0:16:27.160 --> 0:16:30.560 take on all these sorts of foes, real or imagined 0:16:30.600 --> 0:16:33.520 around the world. Do you think that they have a 0:16:33.560 --> 0:16:35.960 sort of appetite to listen when it comes to these 0:16:36.640 --> 0:16:41.000 perhaps slightly less kind of exciting sounding policies for for 0:16:41.080 --> 0:16:43.040 the UK. And again when we kind of put the 0:16:43.080 --> 0:16:45.520 overlay of the fact that it's two years till the 0:16:45.560 --> 0:16:49.160 next general election, Yeah, that's the awkward thing because planning 0:16:49.200 --> 0:16:52.200 takes longer than two years from what things in the UK. Therefore, 0:16:52.640 --> 0:16:55.280 even if you want to start stuff under the current regime, 0:16:55.440 --> 0:16:58.560 just just it's quite difficult to get these You know, 0:16:58.560 --> 0:17:01.160 we've talked about shove already products for a very long 0:17:01.200 --> 0:17:03.920 period of time and we haven't seen anywhere near enough 0:17:03.960 --> 0:17:07.240 of them happen across the UK. Does anybody think we 0:17:07.280 --> 0:17:10.280 don't need more affordable housing, social housing, built to rent 0:17:10.320 --> 0:17:13.040 housing here in the here in the UK. That absolutely 0:17:13.080 --> 0:17:15.840 the case. Would we like to see much more progress 0:17:15.880 --> 0:17:19.320 made in terms of investment in climate change? Absolutely? Would 0:17:19.359 --> 0:17:21.439 would we like to be to have the equivalent of 0:17:21.480 --> 0:17:24.560 Portugal in terms of our five gene network And the 0:17:24.560 --> 0:17:27.160 answer to that is yes, these things have not happened 0:17:27.640 --> 0:17:29.960 and the conscovered government has been on watch why these 0:17:30.000 --> 0:17:33.520 things have happened. So actually you need to change something 0:17:33.600 --> 0:17:36.560 to get them to happen, because the capital is around, 0:17:36.920 --> 0:17:39.920 sitting around waiting to invest in these things, and it's 0:17:40.200 --> 0:17:43.359 barriers around policy, planning and regulation that have stopped it. 0:17:44.160 --> 0:17:47.040 But when we look at London's record of the last 0:17:47.040 --> 0:17:51.119 couple of years for attracting capital, protracting companies to raise capital, 0:17:51.200 --> 0:17:53.000 even you know that crown has been lost, hasn't it 0:17:53.080 --> 0:17:56.080 to other centers? Do you sit coming back? Yeah, well 0:17:56.080 --> 0:17:57.960 it's not going to come back unless we change things. 0:17:58.359 --> 0:18:01.000 And that means that you know, regulation has to be 0:18:01.160 --> 0:18:04.760 has to change change quicker. You know, if we go 0:18:04.840 --> 0:18:10.800 on to you know, the whole digital digital network that 0:18:10.840 --> 0:18:13.960 we see and and five g across across Europe, we've 0:18:13.960 --> 0:18:17.160 fallen right behind lots of places. We can't let that happen. 0:18:17.240 --> 0:18:20.120 Where we're you know, in the teens, not at the top. 0:18:20.280 --> 0:18:21.919 We want to be at the top, not in the teams. 0:18:22.960 --> 0:18:24.920 And you think Quantine as the matter, Now I think 0:18:24.960 --> 0:18:28.440 he's he's certainly got the intent. You know, it's now 0:18:28.480 --> 0:18:31.919 can you deliver? It's the delivery and execution. We've been 0:18:32.040 --> 0:18:35.119 incredibly welcomed in the United States. You know, if we 0:18:35.119 --> 0:18:36.959 were as welcomed in the in the UK as we 0:18:36.960 --> 0:18:39.720 were in the United States, that would be a fantastic thing. 0:18:39.800 --> 0:18:41.800 And we we have our capital that we can allocate 0:18:42.800 --> 0:18:46.840 outside the KOK of our UK annuity assets over fifty 0:18:47.280 --> 0:18:51.960 of them outside the UK outside of the UK already 0:18:52.119 --> 0:18:55.400 under the current the current rules, you know, and that's 0:18:55.400 --> 0:18:58.840 not the you know, these are backing UK liabilities. So 0:18:59.160 --> 0:19:02.440 we've got the diverse a vacation through international rather than 0:19:02.640 --> 0:19:06.000 through investing in a different different types of assets here 0:19:06.000 --> 0:19:09.200 in the UK. That's not the best solution. So delivered 0:19:09.280 --> 0:19:11.399 that I think there's trust. Use that word, didn't she 0:19:11.480 --> 0:19:14.320 and her first speech as Prime minister. We're going to deliver. 0:19:14.320 --> 0:19:16.000 We're gonna deliver. How long do you give them before 0:19:16.040 --> 0:19:18.920 you can tell whether they're going to be We'll see 0:19:18.920 --> 0:19:22.680 on Friday whether it's solid. Me two gets a strong 0:19:22.720 --> 0:19:25.960 mention and actually there's a plan and a timetable for 0:19:26.000 --> 0:19:28.320 getting changes here in there here in the UK. And 0:19:28.359 --> 0:19:30.639 I think all of my banking colleagues will see that 0:19:30.640 --> 0:19:33.160 as a positive signal if they've sorted out the easiest problem, 0:19:33.160 --> 0:19:35.199 which is solvings. You two and then move out to 0:19:35.480 --> 0:19:37.359 move on to some of the more difficult ones around 0:19:38.240 --> 0:19:41.960 around banking and also fun management. So do you think 0:19:42.040 --> 0:19:45.000 we're at a moment where people might come to the 0:19:45.119 --> 0:19:49.199 view that both banks and insurers in this country simply 0:19:49.680 --> 0:19:53.000 are being forced to hold too much capital as as 0:19:53.040 --> 0:19:56.480 a consequence of the financial crisis and that and that 0:19:56.920 --> 0:20:01.520 you know, perhaps while still being proved intensensible, actually that 0:20:01.600 --> 0:20:07.639 needs to be fundamentally reconsidered. You know, we're more talking 0:20:07.680 --> 0:20:10.159 about the acid eligibility, what it is we're allowed to 0:20:10.200 --> 0:20:12.919 invest in. That's why over fifty of our assets are 0:20:12.960 --> 0:20:15.760 outside of the outside of the UK. If there was 0:20:15.840 --> 0:20:18.760 more assets that were qualified here in the UK, we'd 0:20:18.800 --> 0:20:21.520 invest in them here in the UK. And so the 0:20:21.520 --> 0:20:24.400