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Speaker 1: Live from the Bloomberg Interacted Brooker's Studiosis is Bloomberg Daybreak

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Speaker 1: for Wednesday, March First Coming up today, China's economy rebounds

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Speaker 1: as the COVID zero era ends. The FBI director is

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Speaker 1: the latest to say COVID who likely came from a

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Speaker 1: Chinese lab. Stocks began a new trading month after suffering

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Speaker 1: big losses in February, and Tesla holds its Investor Day.

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Speaker 1: The passenger train crash in Greece has left dozens dead

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Speaker 1: plus Embattled Congressman George Santos proposes a popular tax break

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Speaker 1: on Long Island. I'm Michael Barr. More ahead, I'm John Stash,

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Speaker 1: Aaron Sports than Net's lost the Red Hot in Milwaukee,

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Speaker 1: The Islanders lost in a shootout. The Rangers of acquired

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Speaker 1: Patrick Kane from Chicago. That's all straight Ahead on Bloomberg

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Speaker 1: day Break, The Business News you need disturn your day,

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Speaker 1: and just one fifteen minute podcast each pointing on Apple's Spotify.

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Speaker 1: The Bloomberg Business Appen everywhere you get your podcasts. Good morning,

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Speaker 1: I'm Nathan Hager and I'm Cameron Moscow. Here are the

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Speaker 1: stories we're following today. Stocks are getting a lift this morning. Thanks,

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Speaker 1: to data out of Asia, China's economy is showing signs

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Speaker 1: of a stronger recovery than anticipated. Manufacturing in February posted

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Speaker 1: its biggest improvements in more than a decade. Bloomberg Daybreak

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Speaker 1: Asia anchor Brian Curtis has more from Hong Kong. The

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Speaker 1: official PMI rose to fifty two point six from fifty

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Speaker 1: point one in January. The non manufacturing gage jumped to

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Speaker 1: fifty six point three. Both beat estimates by a mile.

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Speaker 1: The data offer the most complete picture yet for how

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Speaker 1: the recovery is moving. Anecdotal evidence had already told part

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Speaker 1: of this story. Road congestion increased, a subway ridership return

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Speaker 1: to pre pandemic levels, and restaurants spending rows. But this

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Speaker 1: is more comprehensive data, and it adds to other signs

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Speaker 1: of recovery, like housing in Hong Kong. Brian Curtis Bloomberg

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Speaker 1: Daybreak Right, Brian thanks. While staying in China, President Hijin

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Speaker 1: Ping is moving to consolidate the communist already's hold over

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Speaker 1: the country. In a speech ahead of the National People's Congress,

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Speaker 1: she touted plans for sweeping changes to China's bureaucracy begin

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Speaker 1: more from Bloomberg's jail and DSIs in Hong Kong. A

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Speaker 1: lot of what we've been hearing about what she may

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Speaker 1: be preparing for going into the NPC is really not

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Speaker 1: all that different from the strategy has been building and

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Speaker 1: consolidating for months of night years now right. I mean,

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Speaker 1: we saw a preview of this last year in October

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Speaker 1: at the Communist Party Congress. He installed a lot of

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Speaker 1: his loyalists, people that have been really really close him

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Speaker 1: over the years, and really top level positions within the

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Speaker 1: Communist Party. You're probably just going to see a repeat

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Speaker 1: of a lot of that. And Bloomberg News editor jeraldesis

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Speaker 1: as China's reforms will formally be announced on Sunday. Questions

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Speaker 1: about the origins of COVID nineteen are adding to tensions

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Speaker 1: with the US Karen Now. FBI Director Christopher Ray says

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Speaker 1: the virus most likely came from a lab incident in Wuhan.

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Speaker 1: He made that assessment in an interview with Fox News.

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Speaker 1: The FBI has folks, agents, professionals, analysts, virologists, microbiologists, etc.

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Speaker 1: Who focus specifically on the dangers of biological threads, which

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Speaker 1: include things like novel viruses like COVID. FBI Director Chris

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Speaker 1: Rays comments come after the Energy Department determined to lab

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Speaker 1: leak was also the most likely source of COVID. Well

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Speaker 1: turning to the markets now, Nathan, is a new month

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Speaker 1: that investors are looking to turn the page on a

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Speaker 1: dismal February for stocks, and we get the details live

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Speaker 1: with Bloomberg Steve Rappaport, Steve, good Morning, Good morning, Karen,

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Speaker 1: and Nathan. Spring can't come soon enough for investors. Following

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Speaker 1: a rough month. The S and P five hundred fell

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Speaker 1: two point six percent in February. The NASTAC also took

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Speaker 1: a hit, dropping one point one percent. Investors face to

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Speaker 1: chilling realization that inflation isn't cooling to the level of

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Speaker 1: the Federal Reserve wants to see. The Central Bank last

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Speaker 1: month raised its benchmark interest rate by a quarter point,

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Speaker 1: the eighth consecutive increase, in an effort to combat stubbornly

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Speaker 1: high inflation. Live in New York, I'm Steve Rappaport, Bloomberg Daybreak, Steve,

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Speaker 1: Thanks a couple. Stocks are off to a rough March already,

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Speaker 1: shares of Novovacs are down twenty four percent. The drug

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Speaker 1: maker says there is substantial doubt about its ability to

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Speaker 1: stay in business through next year, and shares of rivian

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Speaker 1: Or down seven and a half percent. The electric vehicle

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Speaker 1: maker reported revenue and projections that missed estimates. Well. Nathan,

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Speaker 1: another big EV maker, is also in the spalllight this morning.

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Speaker 1: Tesla hosts its annual Investor's Day event today, and Bloomberg's

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Speaker 1: Tom Busby has a preview. Musca is promising quote a

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Speaker 1: message of good, hope and positivity for the future at

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Speaker 1: today's event, which he calls his master Plan three for

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Speaker 1: a fully sustainable energy future for the planet Now. Among

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Speaker 1: the items expected to be announced Tesla's plans to build

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Speaker 1: an auto assembly plant in Monterey, Mexico, its first facility

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Speaker 1: south of the US border, part of a plan to

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Speaker 1: grow to an extreme size. There are whispers about Tesla's

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Speaker 1: lowest price EV ever being announced, a twenty five thousand

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Speaker 1: dollar Model two. Also, look for an update on the

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Speaker 1: long delayed cybertruck, which is forecast to hit showrooms later

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Speaker 1: this year. Tom Busby Bloomberg Day. Okay, Tom, thank you,

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Speaker 1: And as we await word from Tesla, Goldman Sachs Investor

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Speaker 1: Days in the books and it decidedly failed to impress

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Speaker 1: Wall Street. Goldman's stock fell almost four percent at the event.

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Speaker 1: CEO David Solomon got visibly flustered as analysts pressed him

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Speaker 1: on the future of Goldman's consumer banking division. I appreciate

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Speaker 1: that everyone wants more answers on the consumer platforms and

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Speaker 1: their trajectory going forward. We are focused on executing on

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Speaker 1: what's in front of us, and we're looking at strategic

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Speaker 1: all strategic options available to us. And I know that

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Speaker 1: you want more clarity, but I would I would ask

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Speaker 1: you to appreciate that I'm just not in a position

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Speaker 1: to say anything more than what we said. No. After

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Speaker 1: CEO David Solomon addressed investors, Bloomberg Schinelli Vassik sat down

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Speaker 1: with Goldman's Chief operating Officer John Waldron. I would say

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Speaker 1: it was an extremely productive and valuable meeting where people

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Speaker 1: walked Our partners walked out of that meeting very optimistic

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Speaker 1: about the future of the firm, very optimistic about the

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Speaker 1: investments we're making in the forward of the opportunity the firm.

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Speaker 1: Goldman's John Waldron says the bank's partners are firmly behind

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Speaker 1: the strategy. Stay tuned for more of that conversation coming

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Speaker 1: up shortly on Bloomberg Daybreak and on Capitol Hill this morning, Nathan.

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Speaker 1: The House has passed a measure that would take the

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Speaker 1: Labor Department's new ESG Retirement investing rule and main lead

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Speaker 1: President Biden to use his first veto the GOP led Congression.

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Speaker 1: A review Act would block the Department from enforcing the rule,

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Speaker 1: which allows retirement plans to consider environmental, social, and corporate

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Speaker 1: government's implications when selecting and monitoring investments. Thirty five degrees

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Speaker 1: in New York. Clear skies this morning, chance for a

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Speaker 1: late day shower today. Otherwise partly sunny with higher forty

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Speaker 1: five degrees. We'll get down to forty this evening, with

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Speaker 1: temperature slowly rising through the overnight hours. Time now to

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Speaker 1: take a look at some of the other stories making

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Speaker 1: news in New York and around the world. Good morning,

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Speaker 1: Michael Barr, Good morning, Nathan. At least thirty two people

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Speaker 1: were killed in a train crash in northeast Greece and

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Speaker 1: eighty five more were injured. The crash took place in

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Speaker 1: the Tempee Valley when a passenger train traveling from Athens

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Speaker 1: collided with cargo train, igniting a fire. The passenger train

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Speaker 1: carrying hundreds of people, including many university students returning home

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Speaker 1: from holiday. Chicago voters have denied Mayor Lori Lightfoot a

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Speaker 1: second term. Lightfoot told her supporters that they fought the

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Speaker 1: good fight nowas we all know in life, in the end,

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Speaker 1: you don't always win every battle, but you never regret

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Speaker 1: taking on the powerful and bringing in the light. Candidates

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Speaker 1: Paul Vallis and Brandon Johnson will meet in an April

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Speaker 1: fourth runoff to succeed Lightfoot. Vallas received thirty four percent

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Speaker 1: of the vote, while Johnson got twenty percent. Lightfoot got

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Speaker 1: seventeen percent. Republican Representative George Santos may not be well

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Speaker 1: liked by his colleagues or constituents, but his bill and

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Speaker 1: Congress deals with something his district on New York's Long Island.

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Speaker 1: Once raising the cap on the state and local tax deduction, Santos,

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Speaker 1: who lied about his resume, introduced legislation that would increase

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Speaker 1: the deduction, known as salt, to fifty thousand dollars. The

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Speaker 1: salt randoff was capped at ten thousand dollars in President

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Speaker 1: Donald Trump's twenty seventeen tax overhaul. Representative Nick Loloda another

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Speaker 1: Long Island Republican says, despite supporting increases to the cap,

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Speaker 1: you will oppose the measure because Santo's proposed it. The

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Speaker 1: US says it is watching what it calls Russian sanctions

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Speaker 1: evasion in Central Asia, Bloomberg said Baxter as the story.

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Speaker 1: Secretary of State Anthony blinkoln highlighting microchips taken from devices

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Speaker 1: like refrigerators, even breast pumps, and ship to Russia. He

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Speaker 1: says it has a global message. Other countries will learn

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Speaker 1: the wrong lesson and would be aggressors in every part

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Speaker 1: of the world will say, well, if Russia can get

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Speaker 1: away with this, then we can too. So a different

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Speaker 1: tag US will provide an additional twenty five million dollars

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Speaker 1: to help Central Asian states help diversify trade relationships and

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Speaker 1: export routes, as well as trying to help businesses get

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Speaker 1: out of previous relationships that could violate the sanctions. In

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Speaker 1: San Francisco, I'm at Baxter Bloomberg Radio. The ruptured water

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Speaker 1: main and Hoboken that knocked out water pressure has been

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Speaker 1: fully isolated. The city says all public schools would be

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Speaker 1: reopened today after being closed yesterday. Global News twenty four

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Speaker 1: hours a Day, powered by more than twenty seven hundred

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Speaker 1: journalist and anolists and over one hundred twenty countries. I'm

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Speaker 1: Michael bar This is Bloomberg, Nathan. Thank you Michael for

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Speaker 1: the Bloomberg Sports update. Front you by Trice stayed out here.

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Speaker 1: Good morning, John Senshine. Day morning, Nathan. It was not

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Speaker 1: a well kept secret that the Rangers were talking to

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Speaker 1: the Chicago Black Ops about a trade to acquire Patrick Kane,

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Speaker 1: thirty four year old, nine time All Star, one time MVP.

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Speaker 1: You'll be a free agent after the season. The deal

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Speaker 1: finally struck ahead of Friday's trade deadline. Rangers dealt a

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Speaker 1: couple of draft picks, and Kane might even play tonight

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Speaker 1: when the Rangers visit Philadelphia. The Devils just ahead of

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Speaker 1: the Rangers and the standings. They just got Timo Meyer

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Speaker 1: from San Jose. Devil's play tonight at Colorado. The Islanders

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Speaker 1: lost to wanted to shootout at Minnesota. The fading fast

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Speaker 1: Nets lost at Barkley's to sizzling hot Milwaukee one eighteen

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Speaker 1: one oh four. That's fifteen wins in a row for

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Speaker 1: the Bucks, who move ahead of the Celtics the top

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Speaker 1: of the NBA. Standings. The Nets play the Knicks tonight

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Speaker 1: at the Guard Knicks going for a seventh straight win,

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Speaker 1: and also tonight Phoenix at Charlotte, and Kevin Durant, back

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Speaker 1: from his knee in Dreams, expected to make his son's debut.

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Speaker 1: It's March of college basketball heating up Kansas. The Fenny

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Speaker 1: Champ could win again. Ranked third, Jayhawks beat Texas Tech,

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Speaker 1: Duke beat nc Stained. Duke is unranked with new coach

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Speaker 1: John Shire, but they just went sixteen and oh at

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Speaker 1: home Seaton Hall at home, Wiston Villanova seventy six, seventy

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Speaker 1: two at the top of The Giants off season less.

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Speaker 1: Daniel Jones and say Quon Barkley both could potentially leave

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Speaker 1: his free agents. Giants general managers Joe Chan they cautiously optimistic.

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Speaker 1: I mean, it's again you have to go through, you know,

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Speaker 1: hard times before he come out the other end on

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Speaker 1: better times than negotiations. So you know, we're trying to

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Speaker 1: work through it. You know, obviously we'd like to have

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Speaker 1: them both back. They they know how we feel about

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Speaker 1: both of them, and you know, again we're still working

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Speaker 1: through it. Shane spoke at the scouting Combinement's just starting.

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Speaker 1: John Stasha were Bloomberg Sports Live from coast to coast,

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Speaker 1: from New York to San Francisco, Boston to Washington, d C.

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Speaker 1: Nationwide on Sirius examp of Bloomberg Business app and Bloomberg

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Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar.

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Speaker 1: Partners are firmly behind the strategy at Goldman Sachs. That's

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Speaker 1: the message from Chief Operating Officer John Waldron on the

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Speaker 1: heels of Goldman second investor day. He is expressing confidence

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Speaker 1: despite big losses in Goldman's consumer business. Waldron discussed Goldman's

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Speaker 1: business strategy, the future of the firm, and the macro

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Speaker 1: environment with Bloomberg's Shinali Bassek. When you look at the

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Speaker 1: strategy set forward by Goldman Sachs, help us understand Goldman

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Speaker 1: stack SoC has been lagging on a price to book

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Speaker 1: basis from some of its rivals. What are investors not seeing?

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Speaker 1: What is the map here on why Goldman may be

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Speaker 1: worth more than the style is current showing well. First

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Speaker 1: of all, it's great to have you in our building.

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Speaker 1: Thanks for taking the time. Today was an important day

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Speaker 1: for us. As you said, it was our second investor

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Speaker 1: day in our twenty three or so year history as

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Speaker 1: a public company and our hundred and fifty four year

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Speaker 1: history as a firm. We've committed to talking to our

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Speaker 1: investors on a more regular basis, and so we did

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Speaker 1: our first investor day in January of twenty twenty, right

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Speaker 1: before the pandemic, and then we had three years of

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Speaker 1: clearly very complicated volable markets, and so we're now updating

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Speaker 1: our investors on what we've done over the past three

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Speaker 1: years and spending a lot of time talking about our

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Speaker 1: strategic realignment, which is an important evolution in our journey

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Speaker 1: to further align our businesses to create more durable terms

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Speaker 1: and long term value over time. Is there a golden

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Speaker 1: two point zero here when you take a look at

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Speaker 1: the strategy or is this kind of an incremental path

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Speaker 1: to quip to where you want to go? Well, I

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Speaker 1: think if there's a two point zero, it's really talking

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Speaker 1: about having two market leading businesses, Global Banking and Markets

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Speaker 1: and Asset a Wealth Management, which are businesses we've been

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Speaker 1: in for a very long period of time now run

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Speaker 1: together in an integrated fashion. Global Banking and Markets, a

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Speaker 1: thirty plus billion dollar revenue business generated sixteen point four

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Speaker 1: percent returns last year definitively outperforming our competition. We've done

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Speaker 1: a great job in those businesses. And now when you

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Speaker 1: see them together, you see the power of those franchises,

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Speaker 1: and you see some of the diversity effects of those

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Speaker 1: franchises where in some cases market headwinds for certain of

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Speaker 1: the franchises that are tailwinds for others and vice versa,

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Speaker 1: and you can see those businesses really performing across cycles

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Speaker 1: in a mid teens returns kind of manner. When you

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Speaker 1: think about ASCID and Wealth, I'm really curious about how

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Speaker 1: much you're willing to invest. Is this something you think

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Speaker 1: you'd do a large, transformative deal around in order to

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Speaker 1: gain scale. Well, let's just talk about the organic opportunity

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Speaker 1: in ASID and wealth management and today again in global

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Speaker 1: banking and markets. Dandes walk through the story. It's a

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Speaker 1: very very compelling story in ACID and Wealth management, my partner,

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Speaker 1: Mark Knachman walk through that story. And to your question

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Speaker 1: about a two point zero version, we're now running asset

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Speaker 1: and wealth management as an integrated platform where we have

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Speaker 1: scale in active asset management, where a top five player

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Speaker 1: in active asset management, and we're a top five player

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Speaker 1: in global alternatives. I'm not aware of another platform that

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Speaker 1: has our kind of scale in both that's pretty unique.

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Speaker 1: And then we have a premier wealth management franchise with

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Speaker 1: a trillion dollars of assets on that platform. We have

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Speaker 1: to also talk about kind of this year's long journey

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Speaker 1: and consumer as well. You've said you're considering strategic alternatives.

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Speaker 1: How much detail can you give us around what those

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Speaker 1: strategic alternatives are? Could it mean the sale of all

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Speaker 1: or parts of the business before I address your consumer question,

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Speaker 1: and I will address it just in asset A Wealth management.

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Speaker 1: This is a very important again back to your two

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Speaker 1: point out question, this is a very important growth opportunity

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Speaker 1: for the firm. With the scale I talked about, we

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Speaker 1: now have significant fundraising objectives in front of us. We

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Speaker 1: have a significant management fee target in front of us.

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Speaker 1: We now have eight point eight billion dollars in management

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Speaker 1: fees in that business against a ten billion twenty twenty

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Speaker 1: four target. We're clearly well on our way to hitting

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Speaker 1: that target, and that target is not the limit of

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Speaker 1: our ambitions. Two billion dollars of that ten billion dollars

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Speaker 1: target would be from alternatives. We're now one point eight

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Speaker 1: billion dollars on that two billion dollar target. So in

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Speaker 1: both cases total and alternatives, we are well on our

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Speaker 1: way to hitting and exceeding those targets, which will make

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Speaker 1: the firm more durable, more resilient, and more valuable. And

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Speaker 1: that two point zero version of asking a wealth management

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Speaker 1: is going to be a significant growth vector for the

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Speaker 1: firm going forward. Where you have two market leading businesses,

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Speaker 1: both mid teams returning businesses, both durable, both resilient through

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Speaker 1: the cycle, both where we are market leaders, which really

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Speaker 1: underpin the financial targets we put out today with our investors.

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Speaker 1: So that's the future. But as you get there, there's

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Speaker 1: still this idea that it will take two years for

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Speaker 1: the consumer business or the platform solutions business to break even.

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Speaker 1: Do you think investors will be patient with you along

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Speaker 1: that journey? Well, you asked about consumer, okay, So we

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Speaker 1: talk today to our investors very much about our path

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Speaker 1: to profitability. We basically said we would do three things

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Speaker 1: in the firm. One we would grow wallet share and

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Speaker 1: grow our financing businesses further than we already have grown them,

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Speaker 1: and we grow them considerably. Two we will grow our

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Speaker 1: management fees, and three we will create profitability in platform solutions.

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Speaker 1: We will deliver profitability in that segment. That segment has

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Speaker 1: transaction banking, which is a profitable business, and it has

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Speaker 1: consumer platforms where obviously we have head losses in those

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Speaker 1: consumer platforms. We have a plan to drive to profitability.

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Speaker 1: We told our investors today we would drive to profitability

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Speaker 1: in twenty twenty five. We likewise said that we will

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Speaker 1: look at and explore and are exploring strategic alternatives to

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Speaker 1: make sure that we understand all opportunities in front of

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Speaker 1: us to unlock value in platform solutions across this consumer

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Speaker 1: those consumer businesses. Another big thing that you said today

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Speaker 1: is that you can cut another billion dollars in costs.

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Speaker 1: Where do those costs come from and how much of

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Speaker 1: those costs come from additional headcount reductions after already making

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Speaker 1: thirty two hundred. Just to be clear, we talked about

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Speaker 1: a billion dollars of operating efficiencies and then we talked

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Speaker 1: about reinvesting some are all of those efficiencies back into

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Speaker 1: the core franchises. That's an important differentiation. Okay, So we

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Speaker 1: obviously did some work on our headcount coming into this year.

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Speaker 1: Some of those benefits will flow through twenty twenty three.

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Speaker 1: Some of those benefits will flow through twenty twenty four.

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Speaker 1: We're working hard on some of our other expense based items,

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Speaker 1: non compensation items, in particular whether that relates to other

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Speaker 1: marketing expenses or operational expenses in the firm that we

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Speaker 1: can defer and be more judicious about. So we're looking

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Speaker 1: across all of those items that totals a billion dollars

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Speaker 1: of efficiencies over time. But importantly, we will look to

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Speaker 1: reinvest those efficiencies back into our core franchises, dependent upon

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Speaker 1: the performance of the firm and upon the broader market environments. Now,

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Speaker 1: I want to pivot a little bit here because I

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Speaker 1: want to talk about the culture of the firm. You know,

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Speaker 1: it's interesting for all of the talk of the turnover.

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Speaker 1: You've given an interesting statistic that turnover is out of

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Speaker 1: five year low. But at the same time, as UBS

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Speaker 1: puts it among investors that there's a concern about gloss

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Speaker 1: of confidence among partners, what are you doing they bring

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Speaker 1: partners back on your side. Well, we said earlier today

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Speaker 1: to our investors that we for the first time in

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Speaker 1: four years, we're able to bring all of our partners

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Speaker 1: together for an off site. We had many version of

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Speaker 1: that during the pandemic, but we couldn't get everybody together

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Speaker 1: given the obvious travel restrictions during the pandemic. So for

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Speaker 1: the first time a couple of weeks ago, we were

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Speaker 1: able to get everybody together, and I would say it

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Speaker 1: was an extremely productive and valuable meeting where people walked

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Speaker 1: Our partners walked out of that meeting very optimistic about

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Speaker 1: the future of the firm, very optimistic about the investments

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Speaker 1: we're making in the forward of the opportunity of the firm,

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Speaker 1: particularly in those two market leading businesses. And then, like

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Speaker 1: many others, have questions about how long will it take

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Speaker 1: to drive platform solutions to profitability. So certainly those questions

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Speaker 1: come up, some of those questions spill out into the press.

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Speaker 1: But I think if you looked at our partnership and

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Speaker 1: you walked around and interviewed our partners, they are firmly

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Speaker 1: behind the strategy, firmly behind the opportunity, and very excited

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Speaker 1: about what's in front of us. The golden secs have

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Speaker 1: to go back to in a prior question because I

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Speaker 1: feel like I still need an answer. Do you think

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Speaker 1: that when it comes to the asset management business that

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Speaker 1: you can do something transformative at this phase, especially given

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Speaker 1: when you look around the market that they've sold off

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Speaker 1: so much. Well, if you looked look at our strategy

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Speaker 1: and you listen to what we said today to our investors,

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Speaker 1: we have plenty to do organically. We have significan opportunities

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Speaker 1: in front of us to drive wallet share and grow

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Speaker 1: financing and our banking and markets businesses. That's an organic strategy,

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Speaker 1: and asset in wealth management, we have significant opportunities to

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Speaker 1: drive management fees. We have significant opportunities to continue to

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Speaker 1: invest in our platform operationally and to grow our wealth

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Speaker 1: management business. All of those opportunities organic. We can always

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Speaker 1: look for inorganic opportunities we have as you know, we've

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Speaker 1: made acquisitions. We've bought a business last year in Europe

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Speaker 1: called NNIP, which has added substantially to our European footprint,

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Speaker 1: and active asset management has given us very interesting ESG

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Speaker 1: capabilities across our asset management platform. There are always things

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Speaker 1: we can look to do, but our appetite right now

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Speaker 1: is most interestingly driven by the organic opportunities. And I

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Speaker 1: can't let you go without asking about the broader macro

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Speaker 1: environment here. You know, just great expectations have changed drastically

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Speaker 1: in the last couple of weeks. How has it changed

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Speaker 1: the calculus among your clients for risk appetite? How has

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Speaker 1: it changed the calculus for you for risk appetite. Well,

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Speaker 1: I would say if you think about what was going

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Speaker 1: on at the end of last year, there were significant

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Speaker 1: concerns in three primary areas areas. One was the European

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Speaker 1: energy crisis, two was China and zero COVID, and three

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Speaker 1: was the performance of the US consumer. In all three areas,

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Speaker 1: things are broken to the high side. We didn't see

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Speaker 1: the energy crisis that everybody predicted, maybe somewhat driven by

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Speaker 1: warmer weather, but it didn't occur, and so the European

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Speaker 1: situation improved. Nobody predicted that the zero COVID policy would

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Speaker 1: pivot very quickly to opening up China largely completely. That

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Speaker 1: has changed materially. That's a much more significant upside surprise,

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Speaker 1: and the US consumers outperformed, So to me, all three

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Speaker 1: of those elements broke to the high side. What I

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Speaker 1: think today everybody's wrestling with is how permanent and how

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Speaker 1: secular a change is this inflationary environment going to be.

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Speaker 1: Most of our clients are very concerned about the inflation,

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Speaker 1: particularly corporate clients. They see it being more persistent in

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Speaker 1: their businesses. The marketplace is a little bit more complacent,

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Speaker 1: I would say, on inflation in terms of how the

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Speaker 1: market trades inflation. That to me is a disconnect that

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Speaker 1: has to get adjudicated over the course of the year.

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Speaker 1: And we're obviously keeping close island. This is Bloomberg Daybreak Today,

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