WEBVTT - Florida's Hurricane Recovery Efforts; UBS Posts Record Banking Quarter

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 3>The latest first on Dahlia, the storm that's smashed into

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<v Speaker 3>Florida's Big Bend as a Category three hurricane yesterday, is

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<v Speaker 3>still dumping heavy rain on the deep South. Florida Governor

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<v Speaker 3>Ron Desanta says some of the worst effects are in

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<v Speaker 3>a lightly populated part of his state.

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<v Speaker 4>Oh He clearly have significant damage throughout the Big Bend region,

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<v Speaker 4>but the response has been swift and people are getting help.

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<v Speaker 3>Bloomberg meteorologists Rob Carolyn is here with more. So Rob,

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<v Speaker 3>what is the latest on this storm.

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<v Speaker 4>Nathan and Kareny. Dahia has been downgraded to a tropical storm.

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<v Speaker 4>It's going to be exiting the coast, probably very close

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<v Speaker 4>to Wilmington, North Carolina this morning. Of the winds are

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

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<v Speaker 4>The big problem with the system, as we mentioned yesterday,

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<v Speaker 4>is now heavy rain which is falling over portions of

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<v Speaker 4>eastern and northeastern North Carolina. That will gradually wind down today,

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<v Speaker 4>but flash flooding is likely across that area. Storm's going

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<v Speaker 4>to be moving out into the atlant Antike over the

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<v Speaker 4>next couple of days, and due to strong upper level winds,

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<v Speaker 4>it's going to be weakening.

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<v Speaker 3>Okay, so is there any risk this storm does any

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<v Speaker 3>more damage from here?

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<v Speaker 4>I think this storm is probably going to be drifting

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<v Speaker 4>in the southwestern Atlantic off the coast of the United

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<v Speaker 4>States for a couple of days. But as I mentioned,

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<v Speaker 4>there's going to be strong upper level wind shear effecting

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<v Speaker 4>the system. That's probably going to prevent it from redeveloping.

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<v Speaker 4>I don't think it's going to be a threat to

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<v Speaker 4>the continental in the United States once it gets offshore.

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<v Speaker 4>The only thing it may do is produce some swells

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<v Speaker 4>which will affect the beaches on the east sides of

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<v Speaker 4>Florida up through South and North Carolina next week.

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<v Speaker 3>All right, Rob, thank you now. Dahlia did lead to

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<v Speaker 3>more than one thousand canceled flights yesterday, left about three

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<v Speaker 3>hundred and twenty five thousand people without power from Florida

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<v Speaker 3>into the Carolinas, and will likely cause ten to twenty

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<v Speaker 3>billion dollars in damage.

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<v Speaker 2>When we turn to the markets now, Nathan and shares

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<v Speaker 2>of ubs are surging the era more than five and

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<v Speaker 2>a half percent. The Swiss Bank has posted the biggest

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<v Speaker 2>ever quarterly profit for a bank in the second quarter

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<v Speaker 2>as a result of its emergency takeover of Credit Suisse.

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<v Speaker 2>The twenty nine billion dollar gain as a result of

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<v Speaker 2>the account difference between the three point eight billion dollar

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<v Speaker 2>price UBS paid for Credit Suiez and the value of

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<v Speaker 2>the acquired lenders balance sheet. We spoke with UBS Chief

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<v Speaker 2>Executive Sergio or Madi, who confirm that thousands of job

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<v Speaker 2>cuts are on the way.

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<v Speaker 5>We will have around three thousand jobs that will be

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<v Speaker 5>made redundant over the next years. One thousand are in

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<v Speaker 5>relation to our decision to integrate the Swiss Bank.

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<v Speaker 2>UBS CEO Sergio or Mahdi made the comments in an

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

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<v Speaker 2>more of that conversation in a few minutes.

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<v Speaker 3>Well on the flip side, Karen, investors in Pernel Ricard

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<v Speaker 3>maybe crying in their drinks this morning. Those shares are

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<v Speaker 3>down more than four percent. The maker of Absolute vodka

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<v Speaker 3>and Jamison Irish whiskey says its first fiscal quarter will

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<v Speaker 3>be negative in the US as drinkers pull back on

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<v Speaker 3>pricey booze after a pandemic surge. Company also expects weak

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<v Speaker 3>sales growth in China.

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<v Speaker 2>We turned to the economy Now, Nathan, and we get

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<v Speaker 2>some key economic data ahead of tomorrow's job support and

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<v Speaker 2>a warning from a top FED official. We get the

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<v Speaker 2>latest of Bloomberg's John Tucker.

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<v Speaker 6>John, Yeah, Good morning, Karen. Atlanta. FED President Raphael Bostik

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<v Speaker 6>believes the Fed's job is pretty much done, it remarks

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<v Speaker 6>to a conference in South Africa this morning. He says

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<v Speaker 6>policy is appropriately restrictive.

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<v Speaker 7>I think we should be cautious and patient and let

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<v Speaker 7>the restrictive policy continue to influence the economy less we

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<v Speaker 7>risk tightening too much and inflicting unnecessary pain.

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<v Speaker 6>The FED has made clear their data dependent, and this

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<v Speaker 6>morning we get another big piece of the possible with

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<v Speaker 6>FED chair Jerome Piles that preferred the inflation metric. That

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<v Speaker 6>may suggest there's more work to do. Bloomberg Economics says

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<v Speaker 6>supercre PCEE inflation likely accelerated in the month of July.

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<v Speaker 6>It could raise the odds of another FED hike in November.

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<v Speaker 6>I'm John Tucker, Bloomberg Daybreak.

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<v Speaker 8>All right, John, Thanks.

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<v Speaker 3>We got inflation data out of the Eurozone this morning.

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<v Speaker 3>Consumer prices stopped slowing last month in fact, they rose

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<v Speaker 3>five point three percent from a year earlier because of energy.

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<v Speaker 3>Economists had expected weakening well in Asia.

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<v Speaker 2>Nathan, China's manufacturing contraction ease slightly in August, and a

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<v Speaker 2>gauge of new orders improved, and that's providing some hope

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<v Speaker 2>that the worst of the sector's slump may be ending well.

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<v Speaker 3>Meanwhile, Karen, the Chinese developer Country Garden has warned it

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<v Speaker 3>made default on its debt and raised concerns about staying

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<v Speaker 3>in business. The warning came as the property giant posted

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<v Speaker 3>a record first half loss of almost seven billion dollars.

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<v Speaker 2>I'm back here in the US, Nathan shares of salesforce

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<v Speaker 2>or up about five and a half percent. The software

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<v Speaker 2>giant gave a revenue and profit forecast for the current

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<v Speaker 2>period that topped analyst estimates, and analysts say its cost

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<v Speaker 2>cutting campaign is easing some anxiety about a sales slowdown.

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<v Speaker 3>In corporate news, Karen, more changes are coming to X

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<v Speaker 3>that's the social media company formerly known as Twitter. In

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<v Speaker 3>the post this morning, Elon Musk said users will soon

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<v Speaker 3>be allodded to make video and.

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<v Speaker 8>Voice calls through X.

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<v Speaker 3>He says no phone number will be needed.

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<v Speaker 8>Well.

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<v Speaker 2>Another corporate news This morning, Nathan Bloomberg News has learned

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<v Speaker 2>a as testing the use of three D printers to

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<v Speaker 2>produce the steel chassis that he is used by some

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<v Speaker 2>of its upcoming smartwatches. Then we get the story from

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<v Speaker 2>Bloomberg's Charlie Pillett.

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<v Speaker 8>It would herald a major change to how the company

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<v Speaker 8>manufacturers products. The technique would do away with the need

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<v Speaker 8>to cut large slabs of metal into the product shape.

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<v Speaker 8>Sources say that would reduce the time it takes to

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<v Speaker 8>build devices, while also helping the environment by using less material.

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<v Speaker 8>The new approach has the potential to streamline Apple's supply

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<v Speaker 8>chain and kick off a broader shift in New York.

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<v Speaker 8>Charlie Palelett Bloomberg Daybreak, and it's.

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<v Speaker 2>Time now for a look at some of the other

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

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<v Speaker 2>by Bloomberg's Amy morris Any. Good morning, Good morning, Karen.

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<v Speaker 9>Senate Republican leader Mitch McConnell froze after a reporter asked

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<v Speaker 9>his thoughts about seeking reelection. The senator abruptly stopped and

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<v Speaker 9>stared for more than thirty second, even as his aides intervened,

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

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<v Speaker 9>A spokesman for McConnell said in an emailed statement that

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<v Speaker 9>the senator felt momentarily lightheaded and paused during the press conference.

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<v Speaker 9>An aid said he felt fine, but planned to consult

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<v Speaker 9>a doctor before the next event. President Biden planned to

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<v Speaker 9>reach out to McConnell after that incident.

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<v Speaker 10>Mitch is a friend, as you know, not a joke.

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<v Speaker 10>We always know. People don't believe that case. But we

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

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<v Speaker 10>I'm going to try to get in touch with him

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<v Speaker 10>later this afternoon. I don't know enough to know.

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<v Speaker 9>There are concerns about the eighty one year olds Republicans' health.

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<v Speaker 9>McConnell's had had a similar freeze moment during a news

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<v Speaker 9>conference at the US Capitol in July. Donald Trump and

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<v Speaker 9>his company are formally accused of inflating the value of

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<v Speaker 9>his assets by as much as two point two billion dollars.

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<v Speaker 9>A new court filing by New York Attorney General Letitia

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<v Speaker 9>James says the evidence of inflated values from twenty eleven

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<v Speaker 9>to twenty twenty one is so strong wrong that the

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<v Speaker 9>state should be granted summary judgment in its lawsuit, which

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<v Speaker 9>claims persistent and repeated fraud. Peter Navarro is a one

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<v Speaker 9>time aided former President Trump, and he'll be on trial

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<v Speaker 9>next week for criminal contempt of Congress after failing to

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<v Speaker 9>answer a subpoena for the January sixth Select Committee. After

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<v Speaker 9>the ruling, Navarro said the legal fees are bankrupting him.

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<v Speaker 11>We're going to go up to seven hundred and fifty

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<v Speaker 11>thousand by the end of the trial, and the appeals

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<v Speaker 11>are going to be over a million.

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<v Speaker 1>Okay, do I look like a rich man? This is

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<v Speaker 1>the same suit I wore thanks the twenty seventeen going

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<v Speaker 1>into the white Asse.

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<v Speaker 9>Varro's trial begins on Tuesday, and a plan by Tesla

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<v Speaker 9>to purchase hard to get construction materials is being investigated

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<v Speaker 9>by US prosecutors who are looking at whether the project

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<v Speaker 9>was an appropriate use of company funds. Prosecutors are reviewing

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<v Speaker 9>a twenty twenty two purchase order for a construction material

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<v Speaker 9>identified as suspicious by company officials. Global News twenty four

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<v Speaker 9>hours a day, powered by I had more than twenty

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<v Speaker 9>seven hundred journalists and analysts in more than one hundred

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<v Speaker 9>twenty countries. I'm Amy Morris. This is Bloomberg.

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<v Speaker 2>Karen, all right, Amy, thank you. I just time now

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<v Speaker 2>for the Bloomberg Sports Update with John stash Hour John kemn.

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<v Speaker 11>The Cincinnati Bengals. The last two years, they've played in

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<v Speaker 11>a Super Bowl and at AFC Championship Game, led by

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<v Speaker 11>the terrific young quarterback Joe Burrow. So Bengals fans had

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<v Speaker 11>to hold the breath when Burrow suffered a calf injury

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<v Speaker 11>just when training camp began in late July. But yesterday

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<v Speaker 11>he was back at practice and Burrow hopes to play

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<v Speaker 11>the Bengals season opener. Jonathan Taylor will miss the colts

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<v Speaker 11>first four games, put on the physically unable to perform list.

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<v Speaker 11>Taylor has demanded a trade. It was already known that

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<v Speaker 11>the Colts were talking to Miami. Now it's been learned

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<v Speaker 11>they had talks with Green Bay as well. Couldn't make

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<v Speaker 11>a deal. Colts GM Chris ballad yesterday's seen the situation

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<v Speaker 11>with Taylor sucks. Baseball Giants lost at home to the

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<v Speaker 11>Reds four to one. A's lost in Seattle five to four,

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<v Speaker 11>the Mariners twenty first win in the month of August.

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<v Speaker 11>The Astros were the first ever sweep in Boston. They

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<v Speaker 11>beat the Red Sox seven to four, Orioles out of

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<v Speaker 11>four to nothing lead, then lost to the White Sox

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<v Speaker 11>ten to five. In Baltimore's lead of the Al East

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<v Speaker 11>over Tampa Bay is down to a game and a half.

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<v Speaker 11>Nationals were shut out in Toronto seven to nothing. Upsets

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<v Speaker 11>at the US Open castper Rude, the fifth seed who

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<v Speaker 11>played in the final last year, lost in five sets.

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<v Speaker 11>Seven seed sefinal Sitzepas lost to the twenty one year

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<v Speaker 11>old dominic stricker from Switzerland. And last night Caroline Wozniaki,

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<v Speaker 11>who's been retired for three and a half years, upset

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<v Speaker 11>Petrikvideva at Arthur Ashe Stadium seven to five, seven six.

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<v Speaker 11>John stash Ewer Bloomberg.

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<v Speaker 12>Sports from coast to coast, from New York to San Francisco,

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<v Speaker 12>Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

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<v Speaker 12>Business app in Bloomberg dot Com. This is Bloomberg Daybreak.

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<v Speaker 12>Good morning, I'm Nathan Hager.

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<v Speaker 3>The biggest ever quarterly profit for a bank has just

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<v Speaker 3>been posted in Switzerland. UBS reported those results nearly three

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<v Speaker 3>months after the Swiss lenders emergency acquisition of rival Credit Suisse,

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<v Speaker 3>and this morning the CEO of the last Swiss megabank,

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<v Speaker 3>Sergio or Madi, says he is turning his focus to

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<v Speaker 3>continue implementing one of the biggest mergers ever in global finance,

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<v Speaker 3>and that means more changes on the way. Are Mahdi

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<v Speaker 3>discussed at all with Bloomberg editor at large Francine Lacqua,

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<v Speaker 3>Let's bring you part of that conversation.

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<v Speaker 5>Our industry is very difficult to do restructuring the deeper

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<v Speaker 5>structure and necessary a credit swizz and extract the synergies

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<v Speaker 5>without going through people and account Having say that there

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<v Speaker 5>is a big element of the cost that is driven

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<v Speaker 5>by real estate planning, by rationalizing legal entities and by

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<v Speaker 5>it platforms shutdowns. On the account front, first of all,

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<v Speaker 5>we are mounting a lot on natural attrition, on retirements

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<v Speaker 5>and internal mobility and shifting also our permanent to external

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

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<v Speaker 5>have to take some practical actions in redundancies in the.

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<v Speaker 13>Years to come, mainly in Switzerland.

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<v Speaker 5>No, I think this is something that will affect, of

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<v Speaker 5>course our entire workforce as much as you know in Switzerland,

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<v Speaker 5>we expect from a proactive standpoint of view, we will

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<v Speaker 5>have around three thousand jobs that will be made redundant

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<v Speaker 5>over the next years. One thousand are in relation to

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<v Speaker 5>our decision to integrate the Swiss Bank.

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<v Speaker 13>Will you believe that there weren't any nasty surprises?

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<v Speaker 4>Yes, I mean I think that.

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<v Speaker 5>I always felt that disintegration is not risky. It's complex

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<v Speaker 5>and it takes time, It takes focus, it takes dedication.

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<v Speaker 5>Of course, we have to. We cannot underestimate that the

0:12:12.520 --> 0:12:18.880
<v Speaker 5>situation at Credit Swizz was as a situation that was

0:12:18.920 --> 0:12:21.880
<v Speaker 5>clearly indicating that the business was not viable any longer.

0:12:22.120 --> 0:12:29.440
<v Speaker 5>Creti Swiz has a very strong people, clients, franchises, product capabilities,

0:12:29.480 --> 0:12:33.680
<v Speaker 5>but the business model was not there. It was not

0:12:33.760 --> 0:12:36.600
<v Speaker 5>the right to want any longer. And I think that

0:12:36.679 --> 0:12:40.720
<v Speaker 5>the excellence is the excellence part of Cretit Switez. Now

0:12:40.760 --> 0:12:44.640
<v Speaker 5>as part of UBS can flourish and make UBS stronger.

0:12:44.840 --> 0:12:46.360
<v Speaker 13>What will happened to the Credit Swiz.

0:12:46.200 --> 0:12:51.040
<v Speaker 5>Brand, the Critswist brand, you know outside Switzerland, we will

0:12:51.080 --> 0:12:55.200
<v Speaker 5>face it it out. We may keep it for niches situation,

0:12:55.440 --> 0:12:59.320
<v Speaker 5>but the brand that we will use outside Switzerland will

0:12:59.320 --> 0:13:03.520
<v Speaker 5>be UBS. In Switzerland until the end of twenty twenty four,

0:13:03.600 --> 0:13:07.800
<v Speaker 5>we will keep both brands. As we go through the

0:13:07.840 --> 0:13:10.640
<v Speaker 5>integration of the Swiss operations, you.

0:13:10.600 --> 0:13:12.880
<v Speaker 13>Talk about the complexities of churs. I mean, this is

0:13:13.280 --> 0:13:15.920
<v Speaker 13>a masterful job that you needed to do. How important

0:13:16.000 --> 0:13:19.040
<v Speaker 13>was it to really almost get everything done or have

0:13:19.080 --> 0:13:23.040
<v Speaker 13>a blueprint today so that customers, so that a lot

0:13:23.080 --> 0:13:26.520
<v Speaker 13>of your also employees knew what was going to happen.

0:13:26.840 --> 0:13:27.120
<v Speaker 12>Yeah.

0:13:27.520 --> 0:13:30.320
<v Speaker 5>Of course, we announced the transaction five months ago. We

0:13:30.360 --> 0:13:34.160
<v Speaker 5>closed it in June, and so everybody has an expectations

0:13:34.200 --> 0:13:36.439
<v Speaker 5>that we have an answer for everything. So we made

0:13:36.480 --> 0:13:39.120
<v Speaker 5>a commitment, for example, in the Swiss case where people

0:13:39.400 --> 0:13:43.880
<v Speaker 5>were waiting for our answers, we made a commitment to

0:13:44.440 --> 0:13:47.880
<v Speaker 5>go deeper and really analyze every possible option. At the

0:13:47.960 --> 0:13:51.600
<v Speaker 5>end of the day, we did it as fast as possible.

0:13:52.960 --> 0:13:55.560
<v Speaker 5>The outcome was crystal clear. The best option is to

0:13:55.679 --> 0:14:00.240
<v Speaker 5>integrate and that will help to give a t is

0:14:00.280 --> 0:14:05.920
<v Speaker 5>the visibility and about the future too many of our

0:14:05.960 --> 0:14:09.640
<v Speaker 5>people and our clients. But although nothing will really change

0:14:10.200 --> 0:14:12.959
<v Speaker 5>between now and twenty twenty four four clients and we're

0:14:13.000 --> 0:14:16.160
<v Speaker 5>going to make it smooth for clients to be onboarded

0:14:16.559 --> 0:14:17.559
<v Speaker 5>at UBS sergery.

0:14:17.600 --> 0:14:21.680
<v Speaker 13>When you look at the AUMs and the net new flows,

0:14:21.840 --> 0:14:24.480
<v Speaker 13>how much of it are actually coming from UBS.

0:14:24.920 --> 0:14:27.000
<v Speaker 5>First of all, I think it's very important to see

0:14:27.040 --> 0:14:31.680
<v Speaker 5>that already in the second quarter at Krity Swiss, although

0:14:31.720 --> 0:14:38.200
<v Speaker 5>we April and May we're still negative out negative flows.

0:14:38.240 --> 0:14:41.560
<v Speaker 5>In June they saw positive inflows after the closing, so

0:14:41.680 --> 0:14:46.560
<v Speaker 5>good momentum, clients coming back. At UBS, we add the

0:14:46.680 --> 0:14:51.920
<v Speaker 5>second the best quart, the best second quarter in a

0:14:52.000 --> 0:14:55.160
<v Speaker 5>decade in terms of nine new money, sixteen billions, and

0:14:55.200 --> 0:14:58.000
<v Speaker 5>now as we speak in the third quarter, we see

0:14:58.160 --> 0:15:00.800
<v Speaker 5>inflows on both platforms.

0:15:02.440 --> 0:15:05.520
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