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Speaker 1: This is Bloomberg Daybreak. Eureit for this Thursday, the twenty

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Speaker 1: third of February in London. Coming up today, headed for

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Speaker 1: higher ground, FED officials lean towards more rate risers, a

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Speaker 1: Brexit deal dividend. The Chancellor's economic advisor tells US an

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Speaker 1: agreement could offer a meaningful boost to investment. Firing a

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Speaker 1: warning shark, The US says it's watching closely to see

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Speaker 1: if China gives Russia military aide. Meta may swing the axe.

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Speaker 1: One small BT calls hunts tax rate jastically anti investment,

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Speaker 1: and research suggests women are working two months for three

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Speaker 1: Those other stories we're looking at in today's papers, and

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Speaker 1: I'm Leanne Gern's plus breaking the glass ceiling. We talked

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Speaker 1: to the famed investor Helen and Morrissey about her plan

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Speaker 1: to get more women into top finance jobs. That's all

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Speaker 1: straight ahead on Bloomberg Daybreak Europe. The business news you

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Speaker 1: need to start your day in just one fifteen minute

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Speaker 1: podcast on Apples, Spotify, the Bloomberg Business app and everywhere

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Speaker 1: you get your podcasts. Good morning, I'm Stephen Carroll and

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Speaker 1: I'm Caroline Heitker. Here are the stories that we're following

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Speaker 1: today strong demand is still pushing US prices higher. That's

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Speaker 1: the latest from New York Fed President John Williams, who's

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Speaker 1: signaling more rate hikes maybe on the horizon. Price stability is,

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Speaker 1: in fact the foundation of economic prosperity. Without price stability,

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Speaker 1: all the other goals that we have, whether maximum employment

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Speaker 1: or low and stable or low interest rates can't be accomplished.

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Speaker 1: So that's an absolute imperative for US. Williams is joined

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Speaker 1: on the hawkish front by his fellow policymakers James Bullard

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Speaker 1: and Loretta Master, who are pushing for hiking faster to

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Speaker 1: try to tame inflation quickly. The markets are listening bets

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Speaker 1: on the Fed's policy rate almost fully, pricing in quarter

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Speaker 1: point increases at each of the Central Bank's next three

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Speaker 1: meetings after the publication of the FED minutes yesterday. Now,

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Speaker 1: Apollo is in talks to inject seven hundred and fifty

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Speaker 1: million dollars to support First Boston. That's credit sueices much

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Speaker 1: publicized investment banking spinoff. Plumog understands that the asset managers

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Speaker 1: commitment may be matched by the Zurich based lender, giving

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Speaker 1: First Boston roughly one and a half billion dollars in capital.

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Speaker 1: Sources say that Apollo is also in separate discussions about

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Speaker 1: buying a stake in the new venture, but a deal

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Speaker 1: is yet to be agreed on either front. Credit sueices

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Speaker 1: shares hit a record low this week on reports of

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Speaker 1: an investigation into outflow claims made by the Swiss lenders chairman.

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Speaker 1: Here in the UK, Afreshi Sena can get a new

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Speaker 1: deal on post Breggs at trading rules for Northern Ireland,

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Speaker 1: it could unlock billions in business investment. That's according to

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Speaker 1: one of Chancellor Jeremy Hunt's economic advisors, Karen Ward. She

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Speaker 1: made the comment in an interview with US here on Daybreak.

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Speaker 1: Europe UK business investment is about the same level that

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Speaker 1: it was in twenty sixteen, the likes of France and Spain,

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Speaker 1: those numbers are around twenty percent higher, so it would

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Speaker 1: be really meaningful. And of course with investment then solves

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Speaker 1: all the other economic ills that we have, which is

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Speaker 1: low productivity, low real wages, fiscal drag. So it really

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Speaker 1: is the secret source for economists business investment. Karen Award

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Speaker 1: is JP Morgan's European chief market strategistic now the United States,

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Speaker 1: says that it has worn China about providing Russia with

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Speaker 1: weapons and other lethal aid for the war in Ukraine.

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Speaker 1: Washington is increasingly vocal in its support. It comes as

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Speaker 1: President Biden says that Vladimir Putin was wrong to suspend

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Speaker 1: a key nuclear packed this week. Not very responsible. But

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Speaker 1: I don't reading of that that he is thinking of

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Speaker 1: using nuclear weapons anything like that. I think it's a

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Speaker 1: I'm not sure what else he was able to say

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Speaker 1: this speech to themometer, but I think it's a mistake.

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Speaker 1: Biden spoke to ABC News and also said that he

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Speaker 1: doesn't believe Russia is planning to use nuclear weapons. Vladimir

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Speaker 1: Putin has signaled that he is looking to shi Jingping

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Speaker 1: to broke at a peace plan, with the Chinese leader,

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Speaker 1: now said to be planning a trip to Moscow. A

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Speaker 1: data suggests that only twelve percent of fun managers in

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Speaker 1: the UK are women. Now, veteran investor Helena Morrissey is

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Speaker 1: setting her sights on tackling the lack of women in

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Speaker 1: top financed jobs as part of a special report. Marriscy

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Speaker 1: has been speaking to us about her new Pathway program

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Speaker 1: and why diversity efforts so far have failed to move

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Speaker 1: the needle. I do think there's an image problem that

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Speaker 1: people look and they think, oh, fun management. It's not

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Speaker 1: for me. It would be very isolated to be a woman.

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Speaker 1: It's kind of macho environment. And I think there is

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Speaker 1: still though a bit of a sort of cultural impediment

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Speaker 1: as well. I think many men now and especially in

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Speaker 1: our industry, really are just as frustrated as the women

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Speaker 1: that we're not seeing more progress. Marrisy's program is currently

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Speaker 1: working at sixty women from thirty three firms in a

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Speaker 1: bid to increase gender diversity across senior positions in finance.

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Speaker 1: We'll bring you our full in depth report into Helena

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Speaker 1: Morrissey's projects a little later. Yeah, it's going to be great.

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Speaker 1: And it was a very interesting interview being able to

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Speaker 1: speak to Helena Morrissey in person. Here. She's done so

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Speaker 1: much in her career, you know, in terms of advising government,

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Speaker 1: managing money, writing books, podcasts, I mean everything. She's done

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Speaker 1: so many things, so really fascinating. Also in the week,

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Speaker 1: of course that we had that data about a record

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Speaker 1: number of women beginning and opening businesses in the UK

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Speaker 1: last year, so I think that's going to be really interesting. Also,

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Speaker 1: there are other things that I'm thinking about today on

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Speaker 1: the political fund, but it's economic really. The Labor leader

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Speaker 1: Kiss Damer's promising a long term plan to fix Britain's

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Speaker 1: public services, but also supposedly in a speech that's going

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Speaker 1: to give in Manchester, he's going to talk about a pledge,

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Speaker 1: an economic growth pledge if the Labor Party wins the

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Speaker 1: next general election. We've got to a bit more attensional

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Speaker 1: I think to what Kirstoma has to say. Yeah, well,

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Speaker 1: certainly it's certainly that's what business has been doing anyway,

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Speaker 1: and that's what we've been hearing for quite some time

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Speaker 1: from several senior business leaders that they are watching very

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Speaker 1: closely to see what policies are being pushed by kirstarmering

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Speaker 1: critically how they differ from what the Conservatives are proposing,

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Speaker 1: because there's a lot of questions about how different certainly

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Speaker 1: those key policies are as well. Yeah, five bold missions

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Speaker 1: apparently that's what we're going to hear about to boldly

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Speaker 1: go Yes, exactly, many jokes possible, but but no all

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Speaker 1: on the serious matter of how to get the UK

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Speaker 1: economy kick started. Okay, coming up next, Meta may swing

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Speaker 1: the AX months once more. BT called Hunt's tax ry

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Speaker 1: drastically anti investment, and research suggests women are working two

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Speaker 1: months for free. Now the paper review on blue Bird

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Speaker 1: day Break Europe. The news you need to know from

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Speaker 1: today's papers. Andy Agains joins US. This morning. The Washington

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Speaker 1: Post has the headline at Meta could cut thousands of

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Speaker 1: jobs after the CEO predicted no more layoffs. Leanne Garn's

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Speaker 1: what's going on, Caroline Hepke, Good morning to you. So,

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Speaker 1: according to the Washington Post, Meta is preparing for thousands

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Speaker 1: of job cuts, and that's beyond the thirteen percent of

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Speaker 1: its workforce that were fired back in November. Human resources lawyers,

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Speaker 1: financial experts, and also top executives are said to be

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Speaker 1: drawing up plans and that's to deflate the company's hierarchy.

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Speaker 1: So Meta is planning to push some leaders into lower

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Speaker 1: level roles, flattening the layers of management between the CEO,

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Speaker 1: Marcus Zuckerberg and the company's interns. So other managers overseers

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Speaker 1: may end up overseeing a higher number of employees, and

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Speaker 1: this article is suggesting they could end up leaving because

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Speaker 1: of this. So lots of people could go because they're

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Speaker 1: not happy with having more people under them, and Zuckerberg

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Speaker 1: did a sort to reassure workers. And that was last

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Speaker 1: year that he didn't anticipate more layoffs, and that was

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Speaker 1: after the company slashed eleven thousand jobs back in November.

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Speaker 1: But earlier this month, Zuckerberg proclaimed that twenty twenty three

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Speaker 1: was the year of efficiency, and he's promising investors he

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Speaker 1: would trim middle management and speed up the company's decision

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Speaker 1: making when it comes to certain things. So there we go.

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Speaker 1: We're hearing from the Washington Post that Meta is preparing

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Speaker 1: for thousands of job cuts beyond what they did back

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Speaker 1: in November. You're very interesting to see how these companies

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Speaker 1: have grown so quickly are now readjusting themselves for a

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Speaker 1: slimmer future. Let's turn into the Telegraph nextly on Hunt's

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Speaker 1: tax raiders drastically anti investment warrens BT. Yes, apparently Hunt

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Speaker 1: is on an economic cliff edge if you read this

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Speaker 1: article in the Telegraph, and the telecoms company BT is

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Speaker 1: joining a growing opposition to the proposed increase in corporation

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Speaker 1: tax and that rate is meant to go up in

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Speaker 1: April from nineteen percent to twenty five percent. And I

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Speaker 1: do know that we have discussed this quite a lot

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Speaker 1: in our paper reviews and in a report that was

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Speaker 1: published yesterday, Simon Loath he's a BTCFO, says Jeremy Hunt

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Speaker 1: will send Britain into a drastically anti investment direction if

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Speaker 1: he goes ahead with a planned increase in corporation tax.

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Speaker 1: So pretty hard hitting words. According to the Telegraph, higher

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Speaker 1: taxes are posing a risk to growth as hopes rise

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Speaker 1: in the City Caroline that we could avoid a possible recession.

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Speaker 1: Analyst at City previously predicted inflation would hit eighteen percent

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Speaker 1: this year. However they now expect it to fall back

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Speaker 1: to two point three percent by November, and that's closer

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Speaker 1: to the BOEES two percent target. But the Chancellor is

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Speaker 1: vowing to push ahead with these planned tax writers despite

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Speaker 1: an improving picture for the finances here in the UK.

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Speaker 1: And he the CFO from bt is not the only

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Speaker 1: one encouraging Jeromy Hunt to cut this measure. His own

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Speaker 1: Conservative MP's are two some of them. Yeah, well, look

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Speaker 1: it's big business, but it's also small business. Everybody wants

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Speaker 1: to have their taxes card, you know, in terms of

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Speaker 1: business rates, but also the kind of top level corporation tax. Interesting,

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Speaker 1: the pressure the chances under just lastly, the Guardian headline

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Speaker 1: reads women work two months for free, reveals TUC analysis. Well, Carolina,

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Speaker 1: wonder how we feel about this. So new research reveals

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Speaker 1: a fifteen percent pay gap that widens dramatically, and that's

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Speaker 1: after women actually have children in the workplace. So women

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Speaker 1: also work for free for nearly two months a year.

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Speaker 1: According to this fresh analysis from the Trades Union Congress,

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Speaker 1: woman in paid employment earn on average twenty nine thousand,

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Speaker 1: six hundred and eighty four a year. Now that's compared

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Speaker 1: with the thirty five thousand, two hundred and sixty a

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Speaker 1: year earned by men. The TUC said this meant women

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Speaker 1: on average effect actively work free for fifty four days.

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Speaker 1: Jeremy Hunt once again, we'll mention him the chancellors under

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Speaker 1: pressure to fund more free childcare in his budget Caroline

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Speaker 1: on the fifteenth of March. And this is really a

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Speaker 1: mid growing evidence that a chronic work of shortage has

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Speaker 1: been exuberated by mother's being just priced out of the

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Speaker 1: workplace and that has helped a fuel inflation. So this

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Speaker 1: is another push for Jeremy Hunt to add something into

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Speaker 1: his budget and really think about free childcare when it

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Speaker 1: gets to having women back in the workplace. Also, I

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Speaker 1: do think we have to be careful by saying free childcare.

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Speaker 1: It's not really free at point of delivery. It is

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Speaker 1: simply that the government kind of a it's a subsidy exactly.

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Speaker 1: It's not just three hours, it's much more nuance Andan

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Speaker 1: caveated that. But having said that, this is also the

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Speaker 1: drum beat around the budget right lots of the think

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Speaker 1: tanks sort of perhaps the more left leaning ones if

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Speaker 1: you like, want to see the target it of government

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Speaker 1: help on mothers, getting them back into the workforce, not

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Speaker 1: the over fifties who have retired early, which is the

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Speaker 1: other labor problem in the UK. Yeah, but it would

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Speaker 1: be very interesting if the tight labor markets were to

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Speaker 1: produce this sort of advance, which would help so many

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Speaker 1: more families with young children to make the incredibly high

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Speaker 1: cast of childcare more affordable. Yeah. I mean, look, the

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Speaker 1: UK very expensive versus their ECD countries versus the rest

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Speaker 1: of Europe. Yeah. And it's also I think the argument

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Speaker 1: quite interesting around incremental increase in the number of hours

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Speaker 1: that people work, not just getting them back in the workforce,

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Speaker 1: but it's the number of hours people do the job

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Speaker 1: for Thanks Leanne Garans, Well, we're going to look now

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Speaker 1: as a different push for gender parity, this time in

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Speaker 1: the city among a particular part of the finance industry. Caroline,

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Speaker 1: You've been looking into this, Yeah, absolutely. I think a

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Speaker 1: lot of people were quite shocked, disappointed, angry. Even when

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Speaker 1: the figures for fund management in the UK came out

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Speaker 1: at the end of last year, Basically the number of

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Speaker 1: women managing money in the City of London has barely

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Speaker 1: moved in six seven, eight years. City Wire shows that

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Speaker 1: actually about twelve percent of fund managers are female in

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Speaker 1: the UK. So this kind of has triggered a new

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Speaker 1: program from a veteran investor. This is Helena Morrissey who

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Speaker 1: is the chair of the Diversity Project, and she's spending

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Speaker 1: this year with her team training up sixty women to

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Speaker 1: try to get what she calls senior fund management roles.

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Speaker 1: I named roles, you know, being the named account on

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Speaker 1: a fund, giving them training over the course of a

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Speaker 1: year in person, online. So I was speaking to Helena Morrissey,

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Speaker 1: I spoke to some of the mentees, some of the

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Speaker 1: mentors who are trying to get these women, and I

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Speaker 1: was also sort of talking to Morrissey about why she

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Speaker 1: thinks that the numbers haven't moved for so long the line.

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Speaker 1: I've been commuting to the City of London on this

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Speaker 1: train for decades. Raised in the era of Margaret Thatcher

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Speaker 1: and the city's big bang, women thought that we'd be

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Speaker 1: making the decisions by now and getting the rewards. But

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Speaker 1: how wrong we were. The reality is that only twelve

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Speaker 1: percent of UK fund managers are women. The person who's

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Speaker 1: been at the vanguard of advancing women in the city

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Speaker 1: is Helena Morrissey, Dame Helena, former CEO of Newton Investment Management,

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Speaker 1: ex chair of aj Bell. She's advised the government and

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Speaker 1: has a seat in the House of Lords. She's now

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Speaker 1: putting her considerable contact book and profile to work to

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Speaker 1: get more women managing money. I do think there's an

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Speaker 1: image problem that people look and they think, oh, fun management.

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Speaker 1: It's not for me. It could be very isolated to

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Speaker 1: be a woman. It's kind of macho environment. And I

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Speaker 1: think there is still, though a bit of a sort

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Speaker 1: of cultural impediment as well. I think men, many men

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Speaker 1: now and especially in our industry, really are just as

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Speaker 1: frustrated as the women that we're not seeing more progress.

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Speaker 1: So is this Morrissey's more muscular approach to diversity. I

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Speaker 1: love your expression, car Im muscular, because you know it

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Speaker 1: should feel very robust. It should be like a you've

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Speaker 1: got a business objective here, Let's improve diversity of talent.

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Speaker 1: Let's make sure that people are included when they join

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Speaker 1: if they're diverse, and let's achieve better results for our clients.

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Speaker 1: Mentoring some sixty women over a year sounds modest, smaller

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Speaker 1: than the intake in a big investment or law firm.

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Speaker 1: There are around one thousand, six hundred UK fund managers

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Speaker 1: but only about two hundred women in all. You could

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Speaker 1: fit all of those women on a single London Underground

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Speaker 1: Tube train seated. So it is Morrissey's legacy achievable. You

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Speaker 1: know they used to go to be a veteran. Now, Lexie,

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Speaker 1: I'm like beyond the grave, next tithing in my hope.

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Speaker 1: This is not sort of you my parling shop. But

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Speaker 1: I've always said, you know, I really don't want to

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Speaker 1: leave this indistry until it looks and feels very different.

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Speaker 1: And for me that means that we have, you know,

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Speaker 1: as many women as men, and so people expect if

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Speaker 1: they have a fun manager to come and visit them,

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Speaker 1: and they if they're a client, they have just as

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Speaker 1: much expectation that's going to be a woman as a man,

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Speaker 1: and that's not the case. Now meet the mentors and

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Speaker 1: what they hope to pass on. My name is Rosie McMillan.

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Speaker 1: I work at Fidelity International, where I'm the director of

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Speaker 1: portfolio Management. To say it's been an easy ride would

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Speaker 1: would be a lie. It's a case of changing mindset,

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Speaker 1: changing habits, changing deeply in rooted beliefs and opening people's

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Speaker 1: eyes to possibility. If gender diversity has stalled, ethnic diversity

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Speaker 1: is even worse. My name is I'm Jim Day Lawal

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Speaker 1: and I work at Bearings. I'm the head of Ian

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Speaker 1: Corporate Debt at Bearings. I think there are certain circumstances

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Speaker 1: in certain situations you find yourself in as if female

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Speaker 1: portfolio manager, a female fund manager, and you feel you're

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Speaker 1: as summing against the tide. I've got the intersectionality of

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Speaker 1: being an ethic minority as well as a female, and

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Speaker 1: I see that come through in my own journey. Ellen

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Speaker 1: Man is a mentee. She's studying to become a chartered

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Speaker 1: financial analyst at Cambridge Graduate in Japanese. She's working at

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Speaker 1: Jupiter Asset Management I'd started my career during lockdown, so

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Speaker 1: I almost two years working pretty much for myself, so

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Speaker 1: I just was really excited to honestly meet other people

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Speaker 1: getting started and here from them. I've joined a team

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Speaker 1: where my line manager is someone very committed to the

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Speaker 1: mentor role already. So you've got a male mentor. Yes.

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Speaker 1: The idea of having a mentor and the kind of

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Speaker 1: check ins with them and providing some guidance on how

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Speaker 1: do you support someone in those career goals. I think

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Speaker 1: that's very valuable, especially from the kind of gendered perspective.

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Speaker 1: So cautious optimism then, because the numbers truly are embarrassing.

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Speaker 1: Cityward totted up five hundred and sixty two new funds

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Speaker 1: launched in the UK in twenty twenty two, but only

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Speaker 1: ten percent are being managed by women. It's hard, though,

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Speaker 1: not to be swept up by Helen and Morrissey's determination.

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Speaker 1: But in the twenty years that I've been covering finance,

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Speaker 1: the sector has seen little change. Helena and others have

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Speaker 1: a battle to move fun management forwards. I'll leave the

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Speaker 1: final word though to Ellen. I am hopeful, but I

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Speaker 1: think my hopefulness is very much in the context of

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Speaker 1: being lucky enough to be around a team who are

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Speaker 1: very supportive, and to have a kind of first boss

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Speaker 1: who has been extremely supportive and wants me to flourish.

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