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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: The latest first on Dahlia, the storm that's smashed into

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Speaker 3: Florida's Big Bend as a Category three hurricane yesterday, is

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Speaker 3: still dumping heavy rain on the deep South. Florida Governor

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Speaker 3: Ron Desanta says some of the worst effects are in

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Speaker 3: a lightly populated part of his state.

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Speaker 4: Oh He clearly have significant damage throughout the Big Bend region,

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Speaker 4: but the response has been swift and people are getting help.

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Speaker 3: Bloomberg meteorologists Rob Carolyn is here with more. So Rob,

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Speaker 3: what is the latest on this storm.

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Speaker 4: Nathan and Kareny. Dahia has been downgraded to a tropical storm.

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Speaker 4: It's going to be exiting the coast, probably very close

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Speaker 4: to Wilmington, North Carolina this morning. Of the winds are

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Speaker 4: now under sixty miles an hour, and that's in gus.

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Speaker 4: The big problem with the system, as we mentioned yesterday,

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Speaker 4: is now heavy rain which is falling over portions of

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Speaker 4: eastern and northeastern North Carolina. That will gradually wind down today,

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Speaker 4: but flash flooding is likely across that area. Storm's going

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Speaker 4: to be moving out into the atlant Antike over the

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Speaker 4: next couple of days, and due to strong upper level winds,

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Speaker 4: it's going to be weakening.

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Speaker 3: Okay, so is there any risk this storm does any

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Speaker 3: more damage from here?

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Speaker 4: I think this storm is probably going to be drifting

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Speaker 4: in the southwestern Atlantic off the coast of the United

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Speaker 4: States for a couple of days. But as I mentioned,

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Speaker 4: there's going to be strong upper level wind shear effecting

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Speaker 4: the system. That's probably going to prevent it from redeveloping.

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Speaker 4: I don't think it's going to be a threat to

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Speaker 4: the continental in the United States once it gets offshore.

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Speaker 4: The only thing it may do is produce some swells

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Speaker 4: which will affect the beaches on the east sides of

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Speaker 4: Florida up through South and North Carolina next week.

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Speaker 3: All right, Rob, thank you now. Dahlia did lead to

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Speaker 3: more than one thousand canceled flights yesterday, left about three

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Speaker 3: hundred and twenty five thousand people without power from Florida

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Speaker 3: into the Carolinas, and will likely cause ten to twenty

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Speaker 3: billion dollars in damage.

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Speaker 2: When we turn to the markets now, Nathan and shares

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Speaker 2: of ubs are surging the era more than five and

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Speaker 2: a half percent. The Swiss Bank has posted the biggest

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Speaker 2: ever quarterly profit for a bank in the second quarter

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Speaker 2: as a result of its emergency takeover of Credit Suisse.

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Speaker 2: The twenty nine billion dollar gain as a result of

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Speaker 2: the account difference between the three point eight billion dollar

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Speaker 2: price UBS paid for Credit Suiez and the value of

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Speaker 2: the acquired lenders balance sheet. We spoke with UBS Chief

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Speaker 2: Executive Sergio or Madi, who confirm that thousands of job

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Speaker 2: cuts are on the way.

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Speaker 5: We will have around three thousand jobs that will be

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Speaker 5: made redundant over the next years. One thousand are in

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Speaker 5: relation to our decision to integrate the Swiss Bank.

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Speaker 2: UBS CEO Sergio or Mahdi made the comments in an

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Speaker 2: interview with Bloomberg's editor at large, Franca in Lagua. Here

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Speaker 2: more of that conversation in a few minutes.

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Speaker 3: Well on the flip side, Karen, investors in Pernel Ricard

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Speaker 3: maybe crying in their drinks this morning. Those shares are

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Speaker 3: down more than four percent. The maker of Absolute vodka

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Speaker 3: and Jamison Irish whiskey says its first fiscal quarter will

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Speaker 3: be negative in the US as drinkers pull back on

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Speaker 3: pricey booze after a pandemic surge. Company also expects weak

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Speaker 3: sales growth in China.

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Speaker 2: We turned to the economy Now, Nathan, and we get

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Speaker 2: some key economic data ahead of tomorrow's job support and

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Speaker 2: a warning from a top FED official. We get the

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Speaker 2: latest of Bloomberg's John Tucker.

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Speaker 6: John, Yeah, Good morning, Karen. Atlanta. FED President Raphael Bostik

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Speaker 6: believes the Fed's job is pretty much done, it remarks

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Speaker 6: to a conference in South Africa this morning. He says

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Speaker 6: policy is appropriately restrictive.

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Speaker 7: I think we should be cautious and patient and let

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Speaker 7: the restrictive policy continue to influence the economy less we

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Speaker 7: risk tightening too much and inflicting unnecessary pain.

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Speaker 6: The FED has made clear their data dependent, and this

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Speaker 6: morning we get another big piece of the possible with

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Speaker 6: FED chair Jerome Piles that preferred the inflation metric. That

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Speaker 6: may suggest there's more work to do. Bloomberg Economics says

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Speaker 6: supercre PCEE inflation likely accelerated in the month of July.

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Speaker 6: It could raise the odds of another FED hike in November.

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Speaker 6: I'm John Tucker, Bloomberg Daybreak.

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Speaker 8: All right, John, Thanks.

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Speaker 3: We got inflation data out of the Eurozone this morning.

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Speaker 3: Consumer prices stopped slowing last month in fact, they rose

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Speaker 3: five point three percent from a year earlier because of energy.

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Speaker 3: Economists had expected weakening well in Asia.

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Speaker 2: Nathan, China's manufacturing contraction ease slightly in August, and a

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Speaker 2: gauge of new orders improved, and that's providing some hope

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Speaker 2: that the worst of the sector's slump may be ending well.

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Speaker 3: Meanwhile, Karen, the Chinese developer Country Garden has warned it

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Speaker 3: made default on its debt and raised concerns about staying

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Speaker 3: in business. The warning came as the property giant posted

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Speaker 3: a record first half loss of almost seven billion dollars.

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Speaker 2: I'm back here in the US, Nathan shares of salesforce

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Speaker 2: or up about five and a half percent. The software

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Speaker 2: giant gave a revenue and profit forecast for the current

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Speaker 2: period that topped analyst estimates, and analysts say its cost

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Speaker 2: cutting campaign is easing some anxiety about a sales slowdown.

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Speaker 3: In corporate news, Karen, more changes are coming to X

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Speaker 3: that's the social media company formerly known as Twitter. In

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Speaker 3: the post this morning, Elon Musk said users will soon

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Speaker 3: be allodded to make video and.

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Speaker 8: Voice calls through X.

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Speaker 3: He says no phone number will be needed.

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Speaker 8: Well.

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Speaker 2: Another corporate news This morning, Nathan Bloomberg News has learned

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Speaker 2: a as testing the use of three D printers to

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Speaker 2: produce the steel chassis that he is used by some

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Speaker 2: of its upcoming smartwatches. Then we get the story from

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Speaker 2: Bloomberg's Charlie Pillett.

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Speaker 8: It would herald a major change to how the company

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Speaker 8: manufacturers products. The technique would do away with the need

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Speaker 8: to cut large slabs of metal into the product shape.

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Speaker 8: Sources say that would reduce the time it takes to

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Speaker 8: build devices, while also helping the environment by using less material.

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Speaker 8: The new approach has the potential to streamline Apple's supply

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Speaker 8: chain and kick off a broader shift in New York.

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Speaker 8: Charlie Palelett Bloomberg Daybreak, and it's.

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Speaker 2: Time now for a look at some of the other

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Speaker 2: stories making news around the world. For that, we're joined

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Speaker 2: by Bloomberg's Amy morris Any. Good morning, Good morning, Karen.

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Speaker 9: Senate Republican leader Mitch McConnell froze after a reporter asked

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Speaker 9: his thoughts about seeking reelection. The senator abruptly stopped and

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Speaker 9: stared for more than thirty second, even as his aides intervened,

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Speaker 9: all right, I'm sorry, you already to need a minute.

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Speaker 9: A spokesman for McConnell said in an emailed statement that

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Speaker 9: the senator felt momentarily lightheaded and paused during the press conference.

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Speaker 9: An aid said he felt fine, but planned to consult

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Speaker 9: a doctor before the next event. President Biden planned to

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Speaker 9: reach out to McConnell after that incident.

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Speaker 10: Mitch is a friend, as you know, not a joke.

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Speaker 10: We always know. People don't believe that case. But we

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Speaker 10: have disagreements politically. But he's a good friend, and so

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Speaker 10: I'm going to try to get in touch with him

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Speaker 10: later this afternoon. I don't know enough to know.

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Speaker 9: There are concerns about the eighty one year olds Republicans' health.

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Speaker 9: McConnell's had had a similar freeze moment during a news

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Speaker 9: conference at the US Capitol in July. Donald Trump and

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Speaker 9: his company are formally accused of inflating the value of

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Speaker 9: his assets by as much as two point two billion dollars.

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Speaker 9: A new court filing by New York Attorney General Letitia

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Speaker 9: James says the evidence of inflated values from twenty eleven

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Speaker 9: to twenty twenty one is so strong wrong that the

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Speaker 9: state should be granted summary judgment in its lawsuit, which

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Speaker 9: claims persistent and repeated fraud. Peter Navarro is a one

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Speaker 9: time aided former President Trump, and he'll be on trial

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Speaker 9: next week for criminal contempt of Congress after failing to

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Speaker 9: answer a subpoena for the January sixth Select Committee. After

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Speaker 9: the ruling, Navarro said the legal fees are bankrupting him.

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Speaker 11: We're going to go up to seven hundred and fifty

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Speaker 11: thousand by the end of the trial, and the appeals

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Speaker 11: are going to be over a million.

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Speaker 1: Okay, do I look like a rich man? This is

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Speaker 1: the same suit I wore thanks the twenty seventeen going

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Speaker 1: into the white Asse.

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Speaker 9: Varro's trial begins on Tuesday, and a plan by Tesla

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Speaker 9: to purchase hard to get construction materials is being investigated

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Speaker 9: by US prosecutors who are looking at whether the project

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Speaker 9: was an appropriate use of company funds. Prosecutors are reviewing

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Speaker 9: a twenty twenty two purchase order for a construction material

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Speaker 9: identified as suspicious by company officials. Global News twenty four

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Speaker 9: hours a day, powered by I had more than twenty

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Speaker 9: seven hundred journalists and analysts in more than one hundred

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Speaker 9: twenty countries. I'm Amy Morris. This is Bloomberg.

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Speaker 2: Karen, all right, Amy, thank you. I just time now

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Speaker 2: for the Bloomberg Sports Update with John stash Hour John kemn.

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Speaker 11: The Cincinnati Bengals. The last two years, they've played in

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Speaker 11: a Super Bowl and at AFC Championship Game, led by

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Speaker 11: the terrific young quarterback Joe Burrow. So Bengals fans had

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Speaker 11: to hold the breath when Burrow suffered a calf injury

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Speaker 11: just when training camp began in late July. But yesterday

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Speaker 11: he was back at practice and Burrow hopes to play

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Speaker 11: the Bengals season opener. Jonathan Taylor will miss the colts

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Speaker 11: first four games, put on the physically unable to perform list.

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Speaker 11: Taylor has demanded a trade. It was already known that

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Speaker 11: the Colts were talking to Miami. Now it's been learned

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Speaker 11: they had talks with Green Bay as well. Couldn't make

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Speaker 11: a deal. Colts GM Chris ballad yesterday's seen the situation

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Speaker 11: with Taylor sucks. Baseball Giants lost at home to the

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Speaker 11: Reds four to one. A's lost in Seattle five to four,

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Speaker 11: the Mariners twenty first win in the month of August.

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Speaker 11: The Astros were the first ever sweep in Boston. They

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Speaker 11: beat the Red Sox seven to four, Orioles out of

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Speaker 11: four to nothing lead, then lost to the White Sox

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Speaker 11: ten to five. In Baltimore's lead of the Al East

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Speaker 11: over Tampa Bay is down to a game and a half.

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Speaker 11: Nationals were shut out in Toronto seven to nothing. Upsets

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Speaker 11: at the US Open castper Rude, the fifth seed who

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Speaker 11: played in the final last year, lost in five sets.

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Speaker 11: Seven seed sefinal Sitzepas lost to the twenty one year

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Speaker 11: old dominic stricker from Switzerland. And last night Caroline Wozniaki,

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Speaker 11: who's been retired for three and a half years, upset

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Speaker 11: Petrikvideva at Arthur Ashe Stadium seven to five, seven six.

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Speaker 11: John stash Ewer Bloomberg.

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Speaker 12: Sports from coast to coast, from New York to San Francisco,

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Speaker 12: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

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Speaker 12: Business app in Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 12: Good morning, I'm Nathan Hager.

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Speaker 3: The biggest ever quarterly profit for a bank has just

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Speaker 3: been posted in Switzerland. UBS reported those results nearly three

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Speaker 3: months after the Swiss lenders emergency acquisition of rival Credit Suisse,

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Speaker 3: and this morning the CEO of the last Swiss megabank,

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Speaker 3: Sergio or Madi, says he is turning his focus to

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Speaker 3: continue implementing one of the biggest mergers ever in global finance,

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Speaker 3: and that means more changes on the way. Are Mahdi

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Speaker 3: discussed at all with Bloomberg editor at large Francine Lacqua,

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Speaker 3: Let's bring you part of that conversation.

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Speaker 5: Our industry is very difficult to do restructuring the deeper

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Speaker 5: structure and necessary a credit swizz and extract the synergies

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Speaker 5: without going through people and account Having say that there

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Speaker 5: is a big element of the cost that is driven

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Speaker 5: by real estate planning, by rationalizing legal entities and by

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Speaker 5: it platforms shutdowns. On the account front, first of all,

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Speaker 5: we are mounting a lot on natural attrition, on retirements

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Speaker 5: and internal mobility and shifting also our permanent to external

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Speaker 5: account ratio. Having say that, of course we're going to

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Speaker 5: have to take some practical actions in redundancies in the.

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Speaker 13: Years to come, mainly in Switzerland.

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Speaker 5: No, I think this is something that will affect, of

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Speaker 5: course our entire workforce as much as you know in Switzerland,

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Speaker 5: we expect from a proactive standpoint of view, we will

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Speaker 5: have around three thousand jobs that will be made redundant

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Speaker 5: over the next years. One thousand are in relation to

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Speaker 5: our decision to integrate the Swiss Bank.

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Speaker 13: Will you believe that there weren't any nasty surprises?

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Speaker 4: Yes, I mean I think that.

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Speaker 5: I always felt that disintegration is not risky. It's complex

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Speaker 5: and it takes time, It takes focus, it takes dedication.

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Speaker 5: Of course, we have to. We cannot underestimate that the

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Speaker 5: situation at Credit Swizz was as a situation that was

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Speaker 5: clearly indicating that the business was not viable any longer.

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Speaker 5: Creti Swiz has a very strong people, clients, franchises, product capabilities,

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Speaker 5: but the business model was not there. It was not

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Speaker 5: the right to want any longer. And I think that

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Speaker 5: the excellence is the excellence part of Cretit Switez. Now

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Speaker 5: as part of UBS can flourish and make UBS stronger.

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Speaker 13: What will happened to the Credit Swiz.

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Speaker 5: Brand, the Critswist brand, you know outside Switzerland, we will

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Speaker 5: face it it out. We may keep it for niches situation,

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Speaker 5: but the brand that we will use outside Switzerland will

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Speaker 5: be UBS. In Switzerland until the end of twenty twenty four,

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Speaker 5: we will keep both brands. As we go through the

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Speaker 5: integration of the Swiss operations, you.

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Speaker 13: Talk about the complexities of churs. I mean, this is

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Speaker 13: a masterful job that you needed to do. How important

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Speaker 13: was it to really almost get everything done or have

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Speaker 13: a blueprint today so that customers, so that a lot

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Speaker 13: of your also employees knew what was going to happen.

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Speaker 12: Yeah.

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Speaker 5: Of course, we announced the transaction five months ago. We

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Speaker 5: closed it in June, and so everybody has an expectations

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Speaker 5: that we have an answer for everything. So we made

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Speaker 5: a commitment, for example, in the Swiss case where people

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Speaker 5: were waiting for our answers, we made a commitment to

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Speaker 5: go deeper and really analyze every possible option. At the

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Speaker 5: end of the day, we did it as fast as possible.

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Speaker 5: The outcome was crystal clear. The best option is to

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Speaker 5: integrate and that will help to give a t is

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Speaker 5: the visibility and about the future too many of our

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Speaker 5: people and our clients. But although nothing will really change

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Speaker 5: between now and twenty twenty four four clients and we're

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Speaker 5: going to make it smooth for clients to be onboarded

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Speaker 5: at UBS sergery.

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Speaker 13: When you look at the AUMs and the net new flows,

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Speaker 13: how much of it are actually coming from UBS.

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Speaker 5: First of all, I think it's very important to see

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Speaker 5: that already in the second quarter at Krity Swiss, although

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Speaker 5: we April and May we're still negative out negative flows.

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Speaker 5: In June they saw positive inflows after the closing, so

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Speaker 5: good momentum, clients coming back. At UBS, we add the

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Speaker 5: second the best quart, the best second quarter in a

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Speaker 5: decade in terms of nine new money, sixteen billions, and

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Speaker 5: now as we speak in the third quarter, we see

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Speaker 5: inflows on both platforms.

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