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Speaker 1: This is Bloomberg Daybreak Europe for this Tuesday, the twenty

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Speaker 1: fifth of April in London. Coming up today, Banking.

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Speaker 2: On a successful takeover, ubsc's net inflows of twenty eight

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Speaker 2: billion dollars in the first quarter.

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Speaker 1: One hundred billion dollar hold First Republic shares plunge after

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Speaker 1: depositors take flight.

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Speaker 2: A CV showdown, job seeker numbers soar in the City

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Speaker 2: of London as vacancies, slum.

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Speaker 3: Taxing conversations had bags out Downing Street, and the FCA's

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Speaker 3: guilty headache. Those of the stories we're looking at in

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Speaker 3: today's papers. And I'm Leanne Gerens plus.

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Speaker 1: Tucker Down's Fox News ditches star host Carlson a week

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Speaker 1: after its record seven hundred and eighty seven million dollar

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Speaker 1: dominion settlements.

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Speaker 4: That's all straight ahead on Bloomberg Daybreak Europe. The business

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Speaker 4: news you need to start your day in just one

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Speaker 4: fifteen minute podcast on Apple, Spotify, the Bloomberg Business App

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Speaker 4: and every where you get your podcasts.

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Speaker 2: Good morning, I'm Stephen Carroll and I'm Alex Webb. Here

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Speaker 2: are the stories we're following today. UBS which attracted twenty

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Speaker 2: eight billion dollars from wealthy clients in the months running

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Speaker 2: up to its takeover of Credit Sweez. That includes seven

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Speaker 2: billion that came in the ten days after the government

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Speaker 2: backed takeover was announced. Bloomberg Finance idit air Patrick Winters

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Speaker 2: reacted to the numbers.

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Speaker 5: It's good, right, it's positive. It's in flows, not outflows.

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Speaker 5: But I think you have to put that into perspective

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Speaker 5: of Credit Squeeze having sixty billion of outflows reporting that yesterday,

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Speaker 5: So you know what's what's in the gap. Basically, UBS

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Speaker 5: is buying a company that's bleeding a lot of assets,

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Speaker 5: and UBS is not able to is not taking all

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Speaker 5: those assets in right. Some of them are filtering out

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Speaker 5: to other companies, other institutions, probably rivals, and that gap

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Speaker 5: is going to be the most concerning thing.

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Speaker 2: Patrick Winter's speaking to us earlier in the program there.

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Speaker 2: UBS says it now expects to wrap up its purchase

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Speaker 2: of Credit Suisse in the second quarter. The bank also

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Speaker 2: announced that it will take a six hundred and sixty

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Speaker 2: five million dollar litigation provision tied to its role in

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Speaker 2: selling mortgage securities before the financial crisis.

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Speaker 1: The Spanish lender of Santandeer reported profits of two point

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Speaker 1: five seven billion euros in the first quarter, beating the

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Speaker 1: average estimates of two point four billion. The bank's also

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Speaker 1: setting aside two hundred and twenty four million euros to

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Speaker 1: cover the cost of a Spanish windfall tax on bank revenues.

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Speaker 1: This year, Santander added nine million customers compared to last year,

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Speaker 1: boosting its lending and deposits to.

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Speaker 2: The US, and one hundred billion dollars in deposits was

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Speaker 2: pulled from the First Republic Bank last month. The larger

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Speaker 2: than expected outflow has reignited investor concerns about prospects for

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Speaker 2: its business. Speaking to investors, First Republic's president and CEO,

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Speaker 2: Mike Roffler said the bank is taking action.

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Speaker 6: We are pursuing strategic options to expedite our progress while

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Speaker 6: reinforcing our capital position. I also want to underscore the

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Speaker 6: key aspects of our business that we're re main unchanged.

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Speaker 6: These include operating a simple and straightforward business model focused

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Speaker 6: on delivering exceptional client service.

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Speaker 2: Ruffler's comments came as the bank said it would cut

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Speaker 2: up to a quarter of its workforce, lower outstanding loan

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Speaker 2: balances and curb non essential activities.

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Speaker 1: The president of Britain's biggest business lobby group says it

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Speaker 1: may not survive after a series of sexual misconduct allegations

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Speaker 1: leveled at some staff members. The CBIs Brian McBride says

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Speaker 1: senior leaders had failed its employees.

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Speaker 7: The fact that serious things happened and we didn't know

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Speaker 7: about them tells us there's something wrong with the culture.

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Speaker 7: We must actually get much more severe in dealing with

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Speaker 7: these things. So I think where we had resolution before

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Speaker 7: that was agreed by both parties, we're still seeing that

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Speaker 7: that's probably not enough and we have to have a

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Speaker 7: zero tolerance culture here.

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Speaker 1: McBride wrote an open letter to members yesterday. After some

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Speaker 1: of the UK's largest businesses canceled their memberships, the CBI

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Speaker 1: has suspended all business until June as it attempts to

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Speaker 1: restore trust in the organization.

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Speaker 2: The number of people looking for jobs in the city

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Speaker 2: of London has risen as vacancy's slump. Bloomberg's U and

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Speaker 2: Potts has the story.

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Speaker 8: Job seekers up, job vacancies down. The number of people

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Speaker 8: looking for work in the city of don An increased

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Speaker 8: in the first quarter, while the number of open positions

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Speaker 8: dropped by almost a third. The latest data from Morgan

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Speaker 8: McKinley highlights the tough job market for bankers amid economic

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Speaker 8: uncertainty and the threat of redundancies. The survey says there

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Speaker 8: were twelve percent more people on the hunt for work

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Speaker 8: than during the same period last year. For those in

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Speaker 8: finance who do manage to switch jobs, the average salary

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Speaker 8: uplift was eighteen percent. But that's the lowest salary bump

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Speaker 8: in nearly two years.

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Speaker 9: In London.

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Speaker 8: I'm u in Pot's Bloomberg.

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Speaker 9: Day Break Europe.

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Speaker 1: Fox News has fired its most popular presenter, Tucker Carlson

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Speaker 1: Bloomberg Intelligence, as media analyst Getha Ragnathan says, his influence

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Speaker 1: can't be understated.

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Speaker 10: Fox News is the major is a crown jewelryly of

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Speaker 10: the full Fox Empire. It brings in seventy five percent

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Speaker 10: of the comp I need a profit. It is the

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Speaker 10: most watched cable network in the US, has been now

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Speaker 10: for about ten years running. And a huge part of

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Speaker 10: that I think they owe to their anchors and especially

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Speaker 10: you know the popularity of Ducker Calson. So this is

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Speaker 10: this is huge.

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Speaker 1: Many investors shared Rangan Athens views with Fox's market cap

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Speaker 1: using five hundred and seven million dollars by the close.

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Speaker 1: The share price slump comes just after Fox agreed to

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Speaker 1: play seven hundred and eighty seven million dollars to settle

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Speaker 1: a defamation suit over its twenty twenty election coverage. Those

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Speaker 1: are our top stories on the program this morning. Of course,

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Speaker 1: plenty of results to dig into, but worth a word

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Speaker 1: on the latest on LVMH, the French luxury giant closing

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Speaker 1: in on ninth spot now for the Worre list of

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Speaker 1: world's biggest companies. Only last week we were talking about

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Speaker 1: entering the top ten. But as a result of the

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Speaker 1: gain in chairs, the luxury goods giant has seen its

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Speaker 1: market value almost five hundred billion dollars now. Tesla at

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Speaker 1: the same time, which is the company that's chasing, has

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Speaker 1: seen its chairs fall by twenty three percent in the

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Speaker 1: same time, so they're getting closer and closer on the

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Speaker 1: billionaire's list. Though things a little bit further apart.

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Speaker 2: I mean, it really does seem to underscore the importance

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Speaker 2: in a sense of luxury because Tesla, as it cuts

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Speaker 2: its prices, is sort of pivoting towards being a volume

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Speaker 2: car maker, and at the same time this other company

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Speaker 2: that is very much not a volume play is the

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Speaker 2: one taking its place, is some sort of powable in

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Speaker 2: there somewhere.

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Speaker 1: I'm not going to actually even trying to draw conclusions

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Speaker 1: from that, but a good point. Bernardarnou from LVMH's place

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Speaker 1: at the top of the Bloomberg billionaire's list, now extending

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Speaker 1: his lead over Elon Musk. He's worth just under two

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Speaker 1: hundred and thirteen billion dollars versus around one hundred and

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Speaker 1: sixty three billion for Elon Musk. Well, let's turn out

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Speaker 1: to get more in our top story and the results

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Speaker 1: from UBS. Despite the twenty eight billion dollars in new

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Speaker 1: net inflows, UBS also says they're upping the money set

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Speaker 1: aside for litigation. So what are the priorities for the

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Speaker 1: former and new UBS CEO Sergio Ermati he's been speaking

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Speaker 1: to bloom Manus Kranny.

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Speaker 11: First of all, we were very pleased with the fact

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Speaker 11: that at times of distress in the market generally the

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Speaker 11: first quarter was very challenging, we still saw clients looking

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Speaker 11: at UBS as a safe haven, and the influence were

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Speaker 11: coming in from all regions and from different sources, and

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Speaker 11: in that sense we are very pleased that, particularly also

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Speaker 11: after the announcement of the transaction of the acquisition of

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Speaker 11: Pretty Swiss, we still saw influenced coming into our bank.

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Speaker 9: So a sign of confidence of our clients.

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Speaker 12: Seven billion came in in the ten days after the

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Speaker 12: transaction closed. Was that Swiss money was that from Credit

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Speaker 12: Swiez can we defined that as Credit Swiez.

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Speaker 11: Flow No was generally across the board, and you can

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Speaker 11: see that those numbers were also well diversified.

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Speaker 9: I would say also one main driver was in the US.

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Speaker 11: So the confidence in this transaction was also shown by

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Speaker 11: our international clients having strong faith in our ability to execute.

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Speaker 12: Sixty nine billion dollars the door and assets from Credit

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Speaker 12: sueee you in this quarter in those ten days after

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Speaker 12: they've got seven billion dollars, I'm surprised you didn't get more.

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Speaker 12: What do you say to that.

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Speaker 11: Well, obviously we can demonstrate that there is enough competition

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Speaker 11: out there, so anybody fearing that this transaction creates too

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Speaker 11: much concentration is wrong.

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Speaker 9: So I think that we are pleased with the influence

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Speaker 9: we saw. We always say that we will not be

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Speaker 9: the only beneficiary of this transaction, and the numbers seems.

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Speaker 12: To show that there is certainly a move to money

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Speaker 12: market funds that's happening in every bank. Do you think

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Speaker 12: the dash to money market funds. The dash to that

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Speaker 12: level of product is that peak. Do you think we

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Speaker 12: passed the pick of that dash for cash and money market?

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Speaker 9: Well, it's difficult to judge.

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Speaker 11: I mean, what we have to do is to stay

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Speaker 11: close to clients and do the best for them. At

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Speaker 11: this point in time, we do understand that at least

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Speaker 11: part of their liquidity has to go into money markets

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Speaker 11: or treasuries because they have a better in some cases

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Speaker 11: better pickups in their in their yield. And so it's

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Speaker 11: very natural and we are helping clients to make the

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Speaker 11: best choices. And we saw a very strong influence also

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Speaker 11: in our own money market funds that we manage within

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Speaker 11: asset management and in.

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Speaker 12: Terms of the net interesting come up by over thirty

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Speaker 12: percent within wealth management. So what goes through my mind

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Speaker 12: is are we at peak rates? Do you think rates

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Speaker 12: will top out of five percent? Do you see a

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Speaker 12: case for six percent of Some people are speculating in

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Speaker 12: the US on the rate cycle.

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Speaker 11: Well, the case is online is only based on the

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Speaker 11: fact that if you see io rates, it means that

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Speaker 11: inflation inflation fights is not successful and is necessary to

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Speaker 11: go to that level. I would say that the priority

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Speaker 11: number one nowadays is to fight inflation, even if it

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Speaker 11: costs a smaller recession. I believe that the social cost

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Speaker 11: of high inflation over time will be much higher than

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Speaker 11: having a slow down in the economy.

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Speaker 12: Do you think we'll have a recession of mild recession.

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Speaker 9: We are not ruling out that.

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Speaker 11: Towards the end of this year and early part of

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Speaker 11: next year we may see a slow down.

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Speaker 12: Yes, Let's get to the elephant in the room. Cuit

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Speaker 12: sweet Ubs. You are now the CEO. How confident are

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Speaker 12: you the deal closes in the second quarter and what's

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Speaker 12: the biggest hurdle?

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Speaker 11: Well, so far, we got the PIA, the FAT, the

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Speaker 11: Swiss authority. We are in advanced discussion with other key

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Speaker 11: authorities to get the approvals for the transaction. We are

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Speaker 11: still working and we believe that during the second quarter

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Speaker 11: we will be able.

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Speaker 12: To close the biggest obstacle.

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Speaker 9: It's just we have to go through the processes. It

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Speaker 9: takes time.

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Speaker 12: The share buyback is paused. For nine years, we sat

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Speaker 12: together and we talked about dividend buyback, dividend buy back,

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Speaker 12: dividend buy back. Here we are we're in a pause mode.

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Speaker 12: People are saying twenty twenty six before it restarts. Is

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Speaker 12: that a reasonable guidance to the market today, that is

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Speaker 12: twenty twenty six before you can smell a buy back restart.

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Speaker 9: It's too early to talk about buyback.

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Speaker 11: I think what is important is to say that we

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Speaker 11: pose it and we haven't canceled it, so our intention.

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Speaker 9: As soon as we have more visibility.

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Speaker 11: About all the numbers and our plans, we will leve

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Speaker 11: also a better view on our capital return strategy. At

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Speaker 11: this time, we are reiterating our intention to a progressive

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Speaker 11: cash dividends increase every year and we are definitely have

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Speaker 11: an intention to shared by back when it's appropriate.

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Speaker 12: Is there a hurdle? Is there a milestone where you

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Speaker 12: would say this can help me back to restart the buyback?

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Speaker 12: Is there some material hurdled across.

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Speaker 11: The one material aspect in assessing capital returns the solidity

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Speaker 11: of our balance sheet and our.

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Speaker 9: Liquidity position, which is critical to our business.

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Speaker 11: We will not compromise this, and I think this is

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Speaker 11: for us is possible to achieve both continuing to have

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Speaker 11: a strong capital position and at the same time having

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Speaker 11: very attractive share alder returns.

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Speaker 12: The Chairman guided us at a number of times that

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Speaker 12: the integration takes three to four years. Is that a

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Speaker 12: low ball and a low bar? Or again, is that

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Speaker 12: a reasonable guidance.

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Speaker 9: I think it's reasonable guidance. I mean, this is a

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Speaker 9: complex transaction. I think that.

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Speaker 11: But it's also a transaction that we will offer a

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Speaker 11: huge opportunity not only to our shareholders, but also to

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Speaker 11: our clients. The two franchises are extremely complementary and in

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Speaker 11: many areas and also to our employees.

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Speaker 9: But in order to fully execute a transaction of this complexity,

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Speaker 9: it takes time, and we have to do things in

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Speaker 9: the right way.

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Speaker 11: We should not hurry into doing things that and just

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Speaker 11: for the sake of closing the transaction in a couple

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Speaker 11: of years earlier.

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Speaker 12: Again, what kind of milestone do you have? You've thought

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Speaker 12: about this, You've thought about this deal for many years,

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Speaker 12: you Axel Weber, what is the what is the milestone

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Speaker 12: in your mind that says I'm really succeeding in this integration.

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Speaker 9: Well, for me, is more emotional than americal.

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Speaker 11: I would say that in three to four years time,

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Speaker 11: I like to see the employees of the combined organization

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Speaker 11: at this country, our clients to be very.

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Speaker 9: Proud to be associated within your ubs.

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Speaker 12: There is a lot of social and political anks out

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Speaker 12: there on banjostrasson around over the Swiss Universal Bank, lots

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Speaker 12: of people come and say they're going to have to

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Speaker 12: give up a piece of the Swiss Universal Bank. He's

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Speaker 12: going to have to IPO to appease the people out there. Again,

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Speaker 12: your response to that kind of speculation.

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Speaker 11: I'm glad you met some of them. I mean, it

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Speaker 11: looks like we have a lot of experts nowadays on

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Speaker 11: our to.

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Speaker 9: Run banks in Switzerland.

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Speaker 11: So I think that the only thing I can say

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Speaker 11: is that we will take our time to make decisions

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Speaker 11: based on facts and not based on emotions, and I'm

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Speaker 11: sure it's going to be a good transactions.

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Speaker 12: Well, the facts are that you in your tenure down

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Speaker 12: size the investment bank and made it something that helps

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Speaker 12: wealth management. Chairman again reafirms investment bank will come down

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Speaker 12: to twenty five percent. So you've done this before. You

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Speaker 12: have knowledge of Credit Sweez. Again, my question is how

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Speaker 12: quickly in real terms can you get an investment bank

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Speaker 12: a Credit Swiez integrated and done to twenty five percent

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Speaker 12: of the group.

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Speaker 9: Well, the blueprint is our blueprints.

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Speaker 11: Having say that Credit Swiez has also excellent capabilities that

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Speaker 11: we were missing and will be very complimentary to our franchise.

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Speaker 9: But one thing we won't compromise is the way we

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Speaker 9: do business.

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Speaker 11: How we do business and also the amount of sources

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Speaker 11: in this case respirated assets that we will allocate to

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Speaker 11: the investment bank will be a maximum twenty five percent.

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Speaker 12: What's the duel in the credit switek crime that you

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Speaker 12: really want to.

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Speaker 11: Keep everything is Cresis is a very strong franchise and

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Speaker 11: what I'm very pleased is that while we have some

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Speaker 11: overlaps in many regions and in many products, we have

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Speaker 11: a complementary skill set. You look at asset management, we're

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Speaker 11: going to be one of the leading asset manager now

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Speaker 11: in the world and thanks to complementary capabilities. Even in

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Speaker 11: Switzerland we have complementary clients franchises, and in in asset management,

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Speaker 11: from a regional standpoint of view, you look at Asia

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Speaker 11: and also in Europe we have complementing clients franchises.

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Speaker 12: When when you go on the road, are you talking

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Speaker 12: to clients who you're talking to? What picture you're making

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Speaker 12: to stay with the United multi group, Well, it's.

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Speaker 11: Not a united or motive group with ubs, and I

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Speaker 11: think that the strength. We have been demonstrating the discipline

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Speaker 11: we're demonstrating in the last twelve years or so in managing.

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Speaker 11: Our journey will be the same one we want to

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Speaker 11: pursue going forward.

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Speaker 9: So gains us.

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Speaker 12: We are less We are less risky trade than you've

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Speaker 12: been used to. You know it come to us.

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Speaker 11: But look, you know, at the end of the day,

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Speaker 11: we have been demonstrating our strengths in terms of KPIs,

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Speaker 11: capital liquidity and so on and so forthward. The most

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Speaker 11: important issue nowadays is to keep strong profitability and the

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Speaker 11: trust of our clients down.

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Speaker 12: Sizing these combined institutions is going to involve as reducing

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Speaker 12: risk weighted assets, but it's also going to be a

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Speaker 12: social cost in terms of job losses. How quickly will

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Speaker 12: that pain be felt across the group? In your initial

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Speaker 12: estimate at this juncture, this is.

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Speaker 11: By far the most painful part of the job. But

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Speaker 11: I'm confident that we will do that, first of all,

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Speaker 11: with full respect of the people involved, fair and as

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Speaker 11: transparent as possible. Having say that, you know that we are,

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Speaker 11: particularly here in Switzerland is a pretty aging population. A

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Speaker 11: lot of people are retiring in the next few years,

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Speaker 11: and I'm pretty sure that we will label through that

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Speaker 11: and also through natural attrition to mitigate at least the

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Speaker 11: social cost.

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Speaker 12: You come back into this bank hall you left it

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Speaker 12: in twenty twenty, the world of banking. You've not been

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Speaker 12: gone from the world of finance. But banking has changed.

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Speaker 12: People say to me, it's not two thousand and eight.

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Speaker 12: What is this banking landscape right there for you to

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Speaker 12: find it?

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Speaker 11: Well, the banking landscape has change, is evolving, but there

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Speaker 11: is one thing in banking that has remained the same

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Speaker 11: is trust and confidence of your clients and the employees

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Speaker 11: that work for your organization.

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Speaker 9: And this is my focus to restore proud.

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Speaker 11: And have an organization that, as I said, clients and

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Speaker 11: employees can be proud to work for.

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Speaker 12: Tell me this, we're back in the banking hall. Are

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Speaker 12: you back in your old yes? How does that feel good?

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Speaker 9: Good feeling? I think I was very honored that humbold

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Speaker 9: about this new task I have.

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Speaker 11: The feeling is good, but also there is a clear

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Speaker 11: sense of responsibility to make sure that this thing goes

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Speaker 11: in the right direction.

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Speaker 1: So that was the UBS CEO Sergio Armati there speaking

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Speaker 1: to Bloomberg's manas Cranny after their results published This Morning

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Speaker 1: Up Next, Taxing conversations, handbags at Downing Street and the

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Speaker 1: FCA is guilty headache.

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Speaker 4: Now the paper review on Bluebird, Daybreak Europe. The news

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Speaker 4: you need to know from today's papers blogs.

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Speaker 2: Lean Garons joins us with the details, so Leah on

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Speaker 2: the headline. In the Financial Times, Jeremy Hunt admits UK

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Speaker 2: business taxes too high as government pressed on strategy.

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Speaker 3: So yesterday Alex, Rishi Sunak and Jeremy Hunt launched a

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Speaker 3: charm offensive at the Business Connect event in North London,

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Speaker 3: but it didn't go all completely as was planned. They

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Speaker 3: did face backlash from these big British brands. The main

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Speaker 3: one really was Burbery that caught many people's attention, who

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Speaker 3: are criticizing the government's decision to remove tax free shopping

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Speaker 3: for Taurus. Now Bloomberg is reporting Jerry Murphrey that Birbery's

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Speaker 3: chairman said the UK had scored a spectacular own goal

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Speaker 3: in removing tax breaks, which is actually putting Taurus off

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Speaker 3: shopping in the UK after Braxit. Now his words caused

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Speaker 3: this very awkward exchange with Rishi Sunak, and during his reply,

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Speaker 3: the Prime Minister actually declined to discuss tax policy in

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Speaker 3: an open forum, but said he was listening. He also

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Speaker 3: said there were such good reasons for the that change,

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Speaker 3: and the Chancellor Jeremy and also yesterday during this big

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Speaker 3: meeting of British corporate and businesses, admitted that the tax

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Speaker 3: was just far too high, but he said the economy

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Speaker 3: needed to grow more to bring taxes down now. According

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Speaker 3: to the story and the Ft, Conservative Party insiders privately

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Speaker 3: Our admitting Labour's leader Keir Starmer has led a highly

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Speaker 3: successful charm offensive with businesses alongside the Shadow Chancellor Rachel Reeves.

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Speaker 3: So there we are a little bit of tug of

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Speaker 3: war yesterday at that big business event here in London.

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Speaker 1: Another conversation that came up at that event being picked

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Speaker 1: up by the Times newspaper today. The headline of this

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Speaker 1: story my wife loves you sun Actel's maker of twenty

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Speaker 1: six hundred pound designer handbags.

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Speaker 3: Yes, this is something that happened yesterday. So of course

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Speaker 3: the Telegraph has this story and we can link it

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Speaker 3: to the first one because and Anya Heinmarch was actually

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Speaker 3: making the She was asking Rishie Senak a question about

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Speaker 3: the industry. And she is a very well known British

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Speaker 3: designer who does luxury handbags. Now, the Telegraph says the

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Speaker 3: Prime ministers off the cuff remarks reignite the debate over

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Speaker 3: his personal wealth. So when she asked Rishi's seen at

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Speaker 3: the question yesterday, he actually personally thanked the London based

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Speaker 3: design for everything she'd done for the country and also

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Speaker 3: for providing him with great presence for his wife during

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Speaker 3: Christmas or her birthday. He used to get her these bags.

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Speaker 3: According to what he's saying now.

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Speaker 1: I'm not a secret now, yes he is.

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Speaker 3: Yeah, he is indeed, and also Anya Hindmarch. So her

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Speaker 3: bags cost about two six hundred pounds. That's the upper

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Speaker 3: limit of it. But you can get all different ranges,

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Speaker 3: so it depends obviously on the size of the bag.

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Speaker 3: That's normally the way it works. But she's very well known.

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Speaker 3: I know our very own Francine Lacqua has interviewed her

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Speaker 3: for lead is with Lacqua, Yes, but there's different range.

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Speaker 3: And look, the problem with this yesterday is Rishie Sunak

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Speaker 3: was probably trying to be a little bit more personal.

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Speaker 3: He just had this off the cuff remark. But once

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Speaker 3: again it's what the critics are saying. They just often

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Speaker 3: paint him as a man who is completely out of touch.

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Speaker 3: Apparently according to the story right now and to the

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Speaker 3: newspaper The Telegraph is basically saying he is estimated fortune

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Speaker 3: of almost three quarters of a billion pounds. And remember

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Speaker 3: he is married to Akshatta Murty, the daughter of a

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Speaker 3: billionaire Indian entrepreneur. But a lot of times Step and

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Speaker 3: I've heard them talk to Tory MPs about Richie Sunac's

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Speaker 3: wealth and they do always say he can't help being

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Speaker 3: rich or who he's married.

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Speaker 2: I say, certainly something that is coming back to haunt

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Speaker 2: him time and again. At the Times has another's stories

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Speaker 2: saying the clamp down on liability driven investment funds after

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Speaker 2: or says there is a clamp down on liability driven

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Speaker 2: investment funds after the mini budget rapped.

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Speaker 3: So listen, this story, really, Alex comes after do you

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Speaker 3: remember casting your mind back to September when we had

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Speaker 3: that complete guilt fiasco. So yesterday the Financial Conduct Authority

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Speaker 3: set out tougher guidance for companies operating liability driven investments. Now,

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Speaker 3: these liability driven investment funds or aldis, are a type

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Speaker 3: of a non bank financial institution also known as shadow banks,

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Speaker 3: and they often use to describe everything from a hedge

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Speaker 3: fund to a pension scheme. Now, the funds industry was

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Speaker 3: at the center of this meltdown that completely gripped the

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Speaker 3: pension scheme during Liz Truss's very short lived time in government.

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Speaker 3: So some pension funds which use LDI funds to manage portfolio,

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Speaker 3: we're just thrown into complete turmoil after the mini budget.

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Speaker 3: So basically this story talks about the FCA and they

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Speaker 3: clamp down on ldis and why this tougher guidance coming

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Speaker 3: in after that guilt fiasco in September.

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