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Speaker 1: This is Bloomberg Daybreak here for this Friday, the third

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Speaker 1: of March in London. Coming up today, Listless London top

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Speaker 1: firms up for New York's deep pockets as the UK

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Speaker 1: government insists all as well, slowing the pace. Former rates

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Speaker 1: setter Michael Saunders tells Bloomberg Radio the Bank of England

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Speaker 1: needs to ease up on hikes, slimming down City Group

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Speaker 1: cuts hundreds of jobs and investment banking and elsewhere. The

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Speaker 1: ECB looks into greedflation, from Party gain investigator to Labour's

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Speaker 1: chief of staff and the most expensive members club in

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Speaker 1: the world. Those are today's papers and I'm Leanne Gerns

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Speaker 1: Plus picturing a new investment idea, Soberby's Pitches, Bombs secured

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Speaker 1: by art, collections of the wealthy. That's all straight ahead

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Speaker 1: on Bloomberg Daybreak Europe. The Business news you need to

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Speaker 1: start your day in just one fifteen minute podcast on Apple, Spotify,

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Speaker 1: the bog Business app and everywhere you get to your podcasts.

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Speaker 1: Good morning. I'm Stephen Carroll and I'm Caroline Hitker. Here

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Speaker 1: are the stories that we're following today. The UK government

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Speaker 1: is coming under pressure after two major companies said they

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Speaker 1: would pursue stuck listings in New York with more. Here's

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Speaker 1: Bloomberg's James Wilcock. CRH, one of Europe's biggest building materials companies,

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Speaker 1: and the British chip designer ARM have both confirmed if

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Speaker 1: they want to go public in the US. It's the

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Speaker 1: latest blow to the government, which says it's determined for

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Speaker 1: learning to prosper post Brexit and aggressively pursued the soft

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Speaker 1: Bank owned ARM for a London listing. Responding to the news,

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Speaker 1: a Treasury spokesperson said the UK is taking forward ambitious

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Speaker 1: reforms to the rules governing its capital markets, building on

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Speaker 1: our continued success as Europe's leading hub for investment. But

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Speaker 1: the reality is that higher evaluations, access to deeper capital markets,

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Speaker 1: and less scrutinous executive pay are all leading bosses to

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Speaker 1: look at the US. But breaking into the American market

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Speaker 1: is not easy. Despite moving its listing last year, Ferguson

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Speaker 1: has not yet been adopted into a US index like

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Speaker 1: the SMP five hundred in London. James Walcock Bloomberg day

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Speaker 1: Brick Europe, now one of the UK's strictest talks, is

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Speaker 1: starting to loosen up. The former Bank of England policymaker

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Speaker 1: Michael Saunders tells Bloomberg Radio he would be slowing the

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Speaker 1: pace of rate rises to a quarter of one percent

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Speaker 1: if he still sat on the committee the MP three.

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Speaker 1: You have done a big tightening cycle. That pating cycle

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Speaker 1: is probably near the y and so it's right to

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Speaker 1: step down the scale of tightening. Saunders are now a

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Speaker 1: senior economic advisor at Oxford Economics, warning of the quickest

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Speaker 1: tightening cycle in three decades. The Central Bank has raised

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Speaker 1: its benchmark rate to three hundred ninety basis points in

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Speaker 1: the last fifteen months. Now, While economists in the UK

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Speaker 1: are considering slowing rate rises, two Federal Reserve policymakers say

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Speaker 1: they might need to bump interest rates even higher due

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Speaker 1: to the hot inflation numbers. JP Morgan's Asia Equity Stratus

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Speaker 1: so Das says he now expects the Fed to be

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Speaker 1: holding rates high for a long time. The US is

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Speaker 1: very much an inflation driven market, and everything that's happening

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Speaker 1: is based on what's happening to inflation. If you look

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Speaker 1: at these three scenarios, right soft landing, basically you want

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Speaker 1: to own growth stocks, duration stocks. Right in a higher

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Speaker 1: for longest scenario, you want to own value stocks right now,

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Speaker 1: and in a deep procession, obviously you want to own

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Speaker 1: defensive stocks, and right now they're moving towards, you know,

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Speaker 1: the value favorable camp, and perhaps a little bit towards defensive.

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Speaker 1: It's not just America that's looking at stubborn price rise,

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Speaker 1: as European Central Bank Governing cancer member Pierre Wounch told

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Speaker 1: journalists that market bets on Europe's interest rate hitting four

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Speaker 1: percent might be accurate. Whence his comments come after the

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Speaker 1: Eurozone's core inflation hit five point six percent, underlying how

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Speaker 1: inflation expectations are becoming baked into the economy. China is

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Speaker 1: about to see as biggest government resheff in decades as

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Speaker 1: the National People's Congress meets meetings begin. Bloomberg's Brian Curtis

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Speaker 1: has more from Hong Kong a generation of top officials

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Speaker 1: who will make way for politicians better known for ties

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Speaker 1: to President Hijinping than for their academic credentials or industry exposure.

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Speaker 1: But Chongshu from Bloomberg Economics suggests the new team can

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Speaker 1: combine experience with trust from the top. If you look

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Speaker 1: at the background the financial system in economic managements, for

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Speaker 1: a long time, but at the same time the trust

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Speaker 1: from the top leadership may help to push agenda forwards.

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Speaker 1: That said, China's top internet leaders like ten Cents, Ponyma

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Speaker 1: and Bidus Robin Lee, have dropped out of key lawmaking

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Speaker 1: and advisory bodies. They're being replaced by Chip researchers and

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Speaker 1: engineers in Hong Kong. Brian Curtis Bloomberg Daybreak, Europe City

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Speaker 1: is said to be cutting hundreds of jobs, amounting to

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Speaker 1: less than one percent of the group's two hundred and

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Speaker 1: forty thousand person workforce. Sources say the cuts will affect

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Speaker 1: those in the investment banking division, Operation and Technology, and

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Speaker 1: the US mortgage underwriting arm. The move comes just weeks

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Speaker 1: after rival JP Morgan Chase got hundreds of mortgage employees. Okay,

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Speaker 1: those are a few of our top stories for you

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Speaker 1: this morning. Look, I'm picked out of the terminal late

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Speaker 1: last night. The BusinessWeek piece which is you know it

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Speaker 1: hits my interest zone anyway, Female executives exhausted, frustrated and

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Speaker 1: calling it quit. This is the write up about the

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Speaker 1: huge exodus. We know about this right during the pandemic,

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Speaker 1: women executives were stuck between their responsibilities, their careers, their families,

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Speaker 1: and so they left the workforce. Now those numbers are

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Speaker 1: going back up, so actually employment is coming back up

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Speaker 1: to pre pandemic levels. A lot of people thinking, well,

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Speaker 1: that's the kind of problem resolved, but actually it sort

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Speaker 1: of hides the exosus of top level talent women going

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Speaker 1: perhaps into other industries or into easier work. This BusinessWeek

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Speaker 1: article is all about the US, I think it applies

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Speaker 1: equally frankly to the UK and Europe. Yeah, I mean,

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Speaker 1: like there's some figure. So there's a couple of surveys

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Speaker 1: quoted in the article. One is from Leaning dot org,

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Speaker 1: the organization founded by Charles Sandberg. Their survey showing that

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Speaker 1: for every woman at the senior manager level who gets

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Speaker 1: promoted to leave. And the problem is a pipeline issue

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Speaker 1: if there aren't enough people now in the middle sections

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Speaker 1: of those vice president roles to be able to create

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Speaker 1: a pipeline to have women in the top leadership jobs,

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Speaker 1: which makes trying to solve this problem much more difficult. Yeah,

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Speaker 1: and then there's also away from kind of the employment issue.

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Speaker 1: For those right at the top of the tree who

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Speaker 1: might have their own personal art collection, they can turn

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Speaker 1: it into a short bit of cash if you're looking

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Speaker 1: to secure some personal loans on the base of the

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Speaker 1: art collection. This is an idea being considered by Sotheby's,

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Speaker 1: the auction house that's owned by Patrick Dry. They're talking

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Speaker 1: about pitching this to investors as a first of its

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Speaker 1: kind discussion said to be at the early stages according

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Speaker 1: to our reporting, but Sotheby's experts could bring the asset

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Speaker 1: back security to market later in the year. According to

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Speaker 1: people that Bloomberg has been speaking to, an interesting idea,

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Speaker 1: perhaps trying to leverage a bit of money out of that. Yeah,

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Speaker 1: I mean considering valuations for I'd have gone up by

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Speaker 1: so much. Oh, yes they have. I mean the old

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Speaker 1: investment space is always quite big, but it's also kind

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Speaker 1: of I don't know, faddish. I think sometimes you know,

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Speaker 1: it can be Yeah, perhaps a riskier or harder to

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Speaker 1: understand what the risks are. Anyway, very interesting on Southby's.

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Speaker 1: I have a read of that piece on the Bloomberg

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Speaker 1: terminal if you have a chance this Friday. Let's turn

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Speaker 1: our attention though to the UK and capital markets here.

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Speaker 1: So they've suffered something of a series of setbacks. Soft

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Speaker 1: Bank owned arm the dueler. Britain's technology industry has confirmed

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Speaker 1: overnight that it will pursue an initial public offering listing

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Speaker 1: solely in the US. And then we had the largest

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Speaker 1: buildings materials company in Europe c RH, also picking New

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Speaker 1: York for its main listing. The UK government has issued

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Speaker 1: a statement in response to ARM focused on the positive

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Speaker 1: let's put it that way, journey us now to discuss this,

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Speaker 1: Bloomberg's UK correspondent Lizzie Burden. We had, of course that

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Speaker 1: interview with the co founder of ARM, Jamie Urcott, yesterday,

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Speaker 1: a big interview. He was damning about the government's strategy

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Speaker 1: on innovation businesses here in the UK. And then it's

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Speaker 1: been confirmed that ARM is going to the US. Was

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Speaker 1: there any hope that that soft bank listing would be

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Speaker 1: in London? What's the government said about the decision? Yeah, Caroline,

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Speaker 1: I have to take my hat off. I can only

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Speaker 1: say it's a fantastic scoope and it's on the front

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Speaker 1: page of the Financial Times as well today. The government

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Speaker 1: could only point to ARMS Consolation Prize when it announced

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Speaker 1: it confirmed this London listening, and that was that it's

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Speaker 1: going to open a new site in Bristol, in the

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Speaker 1: southwest of England to help add to its head count.

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Speaker 1: But we heard from the local Conservative MP and Cambridge

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Speaker 1: Anthony Brown. He says where the investors are, the jobs

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Speaker 1: and the research follow. So the bottom line is this

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Speaker 1: is a big blow to the government. You've had three

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Speaker 1: successive Prime ministers lobbying arm to list in London. It

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Speaker 1: means that the most prominent semiconductor company won't have as

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Speaker 1: close ties to the UK as was hoped. And it

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Speaker 1: is a stinging indictment on the Edinburgh Reforms which the

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Speaker 1: government has pitched as an attempt to make the UK

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Speaker 1: the most innovative in the world, competitive global financial center.

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Speaker 1: And yes, the government can say it's ambitious in its response,

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Speaker 1: but the facts are the size of the UK stock

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Speaker 1: market's been shrinking over the past sixteen years. The total

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Speaker 1: market cap of London listed equities fallen to three trillion

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Speaker 1: dollars this year from four point three trillion dollars in

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Speaker 1: two thousand and seven. And as we know, last year

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Speaker 1: the UK lost its crown as the largest stock market

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Speaker 1: in Europe to France. Yeah, I mean, Lizzie, this is

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Speaker 1: being laid at the door of the government strategy, certainly

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Speaker 1: by Jamie Richard. Anyway, what's been the labor response to this.

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Speaker 1: We heard from Rachel Reeves, the Shadow Chancellor. She was

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Speaker 1: at an event on Thursday. She said that this trend

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Speaker 1: of companies look to realist outside of London should be

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Speaker 1: a huge cause of concern for the government, both in

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Speaker 1: terms of the prestige of the UK economy, but also

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Speaker 1: future tax revenues as well, because, as you mentioned, Caroline,

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Speaker 1: it's not just ARM it's also CRH that set out

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Speaker 1: its plans to move shares to the US yesterday, and

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Speaker 1: in the past you've had Flutter the gambling company Foot

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Speaker 1: one hundred gambling company that's pushing aggressively into the US,

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Speaker 1: planning to have a secondary listing in New York. So

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Speaker 1: it's a domino effect that the Prime Minister just can't afford. Yeah, okay,

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Speaker 1: let's send our attention away then, from London listings to

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Speaker 1: central bank policy. We were speaking yesterday to the former

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Speaker 1: Bank of Eving, the policymaker, Michael Saunders, and he had

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Speaker 1: a very interesting and different view on the Bank of England. Yeah,

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Speaker 1: I mean we were talking to him about childcare, our

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Speaker 1: favorite subject, Caroline, because he reckons that boosting childcare, would

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Speaker 1: boost growth, close the gender pay gap, and ease some

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Speaker 1: of the tightness in the labor market, which of course

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Speaker 1: is pushing up inflation. But of course he is also

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Speaker 1: the most recently departed member of the Bank of England's

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Speaker 1: Monetary Policy Committee, and when he was on the committee

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Speaker 1: he was its biggest hawk. So we had to ask

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Speaker 1: how he'd voter the next meeting, and surprisingly he said

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Speaker 1: that he'd actually go for a smaller hike at the

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Speaker 1: next meeting, just twenty five basis points, not the fifties

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Speaker 1: and the seventy fives that the bank's been doing for

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Speaker 1: the past couple of quarters, because he says, you can

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Speaker 1: already see the impact of previous jumbo hikes on, for example,

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Speaker 1: the housing market, and now it's time to rain them in.

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Speaker 1: And it's significant because we've heard from the Governor Andrew

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Speaker 1: Bailey this week he's been a bit sat on the fence.

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Speaker 1: He's been saying, don't take it as read that the

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Speaker 1: Bank's inevitably going to have to do more tightening, and

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Speaker 1: that made traders pair back their bets on future hikes.

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Speaker 1: But we've also heard I would just point out from

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Speaker 1: the chief economist at the Bank of England Hugh pill yesterday.

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Speaker 1: He says the economy has proved stronger than expected over

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Speaker 1: the past month, wage grows stickier than expected, So that

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Speaker 1: suggests that he's more worried that inflation is going to

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Speaker 1: stay high. It suggests we're going to get more rate

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Speaker 1: rises in the pipeline. That vote split the next meeting

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Speaker 1: is going to be fascinating. Okay, are you ka, correspondents

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Speaker 1: the Burthen thank you very much for taking us through

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Speaker 1: all the details of those stories. Up next, the ECB

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Speaker 1: looks into greedflation from party gate investigator to Labour's chief

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Speaker 1: of staff and the most expensive members club in the world.

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Speaker 1: Now the paper review on blue Bird day Break Europe.

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Speaker 1: The news you need to know from today's papers, Lean

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Speaker 1: Garrans is, here are the details of those stories for us.

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Speaker 1: Good morning to you, Leanne. Let's start with the Guardian.

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Speaker 1: It's headline ECB looks at looking out for price gouging

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Speaker 1: as fears grow over greedflation. Yes, indeed, Stephen, so this

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Speaker 1: story basically says fears that Europe's companies are exploiting high

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Speaker 1: inflation to increase their profit margins. This has really prompted

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Speaker 1: a warning from the European Central Bank, and this trend

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Speaker 1: has been described as greed inflation by the unions. Yesterday,

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Speaker 1: the latest official figures show the cost of living pressures

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Speaker 1: in the Eurozone are just remaining stubbornly high, and writing

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Speaker 1: for Bloomberg, Alonzo Soto reports ECB president Christine Legard said

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Speaker 1: interest rate increases may need to persist beyond a planned

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Speaker 1: half point move in two weeks time. Eurozone inflation was

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Speaker 1: higher than expected in February at eight point five percent.

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Speaker 1: And I just want to say all of this tough

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Speaker 1: comments coming from the Central Bank are probably likely to

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Speaker 1: increase public sympathy for workers taking action to protect living

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Speaker 1: standards during the worst cost of living crisis for decades.

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Speaker 1: And here in the UK next week we're going to

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Speaker 1: see a wave of more strikes and this is all

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Speaker 1: over pay. Ten thousand ambulance workers will strike on Monday

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Speaker 1: once again Caroline to speed over pay and staffing. Here

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Speaker 1: in England and on Wednesday, up to thirty two thousand

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Speaker 1: union Unison members will also be walking out in the NHS.

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Speaker 1: And this seems to be the effect across Europe at

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Speaker 1: the moment. Yeah, and Andrew Bailiff, of course I think

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Speaker 1: was perhaps surprised in some ways because that was exactly

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Speaker 1: the pushback that he got when he said, you know,

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Speaker 1: you have to keep a lid on people's wages going up, etc.

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Speaker 1: It was not greeted very warmly. What about the Financial

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Speaker 1: Times though, another pretty controversial story, toy Anger, as head

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Speaker 1: of Partygate probe quits to become Labor Chief of Staff.

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Speaker 1: Well Caroline, senior civil servants. Sue Gray's new job is

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Speaker 1: just causing so much controversy in Westminster. Now do you

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Speaker 1: remember her name? Because she led how could we forget?

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Speaker 1: Sarcastic question? But she led the inquiry into the party

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Speaker 1: Gate scandal that just completely consumed Boris Johnson's government at

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Speaker 1: the time and led to some people handing in you

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Speaker 1: no confidence votes in him. Eventually the prime ministers, we

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Speaker 1: do know, resigned to remember Gates happened when he was

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Speaker 1: ambushed with a cake. Now, some allies of Johnson's suggests

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Speaker 1: a former prime minister was a victim of an established

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Speaker 1: mint stitch up over party Gate, but a move has

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Speaker 1: also alarmed senior civil servants who feared they will now

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Speaker 1: be accused again or being institutionally biased against the Conservatives.

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Speaker 1: So Basically, what's going to happen now is the Rishi

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Speaker 1: Sunak may have to intervene to block Gray from taking

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Speaker 1: up her key role in Starmer's office. But something very

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Speaker 1: controversial at the moment in politics here. Yeah. Absolutely. I

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Speaker 1: mean it's difficult, isn't it, because Gray was pushed into

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Speaker 1: that role writing the report on party Gate in some ways.

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Speaker 1: But yeah, I think it's interesting she's gone, and it's

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Speaker 1: unusual a senior civil servant can move into another job

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Speaker 1: like that. You know, this is not an unusual circumstance. Yea.

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Speaker 1: And I want to move on because I'm very excited

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Speaker 1: about this story. The Telegraph the headline billionaire Richard Carrying

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Speaker 1: and his new members club for the zero point zero

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Speaker 1: zero three percent. I wonder if I've got fifty five

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Speaker 1: seconds to sum this up now, the man behind the

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Speaker 1: Ivy chain, Annabel's Nightclub and sexy Fish has a new

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Speaker 1: monument to the gods of access. Sexy Fish is a

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Speaker 1: sushi place. Yeah, Celia Walden has written this place. I

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Speaker 1: love her. I think she's a fantastic way of writing

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Speaker 1: this piece because she gives us a real sneak preview

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Speaker 1: into the world's most expensive members club. Now the club

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Speaker 1: is called Apollo's Muse, after a second century Roman sculpture.

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Speaker 1: Carring has included these stunning, stunning, stunning sculptures in the

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Speaker 1: opulent decor and basically if you have a look at

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Speaker 1: the pictures. I showed Stephen a picture of the bar earlier,

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Speaker 1: absolutely amazing. Bloomberg Daybreak Europe, you're morning brief on the

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Speaker 1: stories making news from London to Wall Street and beyond.

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Speaker 1: also listen live each morning on London Dab Radio, the

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Speaker 1: York station is also available on your Amazon Alexa devices.

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Speaker 1: Just say Alexa play Bloomberg eleven thirty. I'm Caroline Hitka

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Speaker 1: and I'm Stephen Carroll. Join us again tomorrow morning for

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Speaker 1: all the news you need to start your day right

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Speaker 1: here on Bloomberg Daybreak Europe