Speaker 1: This is Bloomberg Daybreak here for this Tuesday, the fourteenth
Speaker 1: of February in London. Coming up today to yield or
Speaker 1: enough to yield, Japan nabinates Casuo Wada to head the
Speaker 1: Bank of Japan. Great inflation expectations the FEDS. Bowman says
Speaker 1: raids will need to head higher. A lucrative bonds George
Speaker 1: Sarros loads up on corporate debt as a top JP
Speaker 1: Morgan strategist says it's time to dick Stark's Amazon's fourteen
Speaker 1: billion dollar experiment, a time of distress and broker it
Speaker 1: like Beckham. Those are the stories we're looking at in
Speaker 1: today's papers. I'm James Walcock, class taking the air out
Speaker 1: of balloon in Tension's top diplomats from the US and
Speaker 1: China consider a sit down that's all straight ahead. On
Speaker 1: Bloomberg Daybreak Europe. The business news you need to start
Speaker 1: your day in just one fifteen minute podcast on Apple, Spotify,
Speaker 1: the Bloomberg Business app, and everywhere you get your podcasts.
Speaker 1: Good morning, I'm Stephen Carroll and I'm Caroline Hecker. Here
Speaker 1: all the stories that we're following today. Cazu Wada has
Speaker 1: been nominated as the next governor of the Bank of Japan.
Speaker 1: Analysts expect the move to pave the way for a
Speaker 1: gradual pairing back of the central banks bond buying program.
Speaker 1: Former b o J Assistant governor Casua Moment says he
Speaker 1: expects a wated to tread carefully at some point. Mr
Speaker 1: DA is trying to find a way to abandon completely
Speaker 1: the u c of control, but on condition that it
Speaker 1: doesn't occur upset any people if I the GUARY market,
Speaker 1: the people or the government. So if the conditions met,
Speaker 1: I see ms that we try to abandon u CUB
Speaker 1: control relaterally soon. Cas b o J nomination comes as
Speaker 1: Japan's economy returned to growth in the fourth quarter. GDP
Speaker 1: expanded at an annualized pace of point six percent, falling
Speaker 1: short of the two percent estimate from economists. Now. Federal
Speaker 1: Reserve Governor Michelle Bowman says that the US Central Bank
Speaker 1: will probably have to keep raising rates to rane in
Speaker 1: price growth. Bowman says that the need for further hikes
Speaker 1: makes a soft landing unlikely. We are still far from
Speaker 1: achieving price stability, and I expected that it will be
Speaker 1: necessary to further tighten monetary policy to bring down inflation
Speaker 1: toward our goal. Doing so will likely lead to subdued
Speaker 1: growth in economic activity and some softening in labor market conditions.
Speaker 1: Bowman's comments echo those of the FED chair your own Pal,
Speaker 1: who told Bloomberg last week that further rate hikes will
Speaker 1: be needed to quash inflation. Economists expect call US CPI
Speaker 1: data out at one thirty pm London time today to
Speaker 1: show a five and a half percent rise from a
Speaker 1: year earlier. Bloomberg understands President Biden will name FED Vice
Speaker 1: Chairlo Brainard as his top economic advisor. She's considered one
Speaker 1: of the Central Bank's most devilsh members and recently indicated
Speaker 1: that inflation could come down without too much damage to employment.
Speaker 1: Brainer has moved to the White House, creates an opening
Speaker 1: at the Federal Reserve, although it's not yet clear who
Speaker 1: Biden would nominate to succeed her. Bloomberg has learned that
Speaker 1: a former Credit Swiss employee copied and took personal data
Speaker 1: from other staff members, including descriptions of their compensation and
Speaker 1: bank account information. The company warned of the breach, which
Speaker 1: took place some years ago, in a letter to staff.
Speaker 1: The staff member had legitimate access to the data at
Speaker 1: the time and transferred it to a personal device in
Speaker 1: breach of credit sweez policies. Stocks may be rallying, but
Speaker 1: thirteen filings show some of finance's biggest names have been
Speaker 1: ditching equity for debt. Bloomberg's Valery title has the story
Speaker 1: George Soros's investment firm plowed hundreds of millions of dollars
Speaker 1: into bonds last year. A corporate debt ETF is now
Speaker 1: the third largest holding in its five point seven billion
Speaker 1: dollar US equity portfolio, and Soros Fund Management isn't alone
Speaker 1: on taking advantage of these higher rates. Even JP Morgan's
Speaker 1: normally bullish strategist Marko Klonovitch, is evre in government debt
Speaker 1: over stocks. In a note yesterday, he called the equity
Speaker 1: market complacent, saying they were overpricing recent good news on inflation.
Speaker 1: He recommended fading this year's stock rally. In London, Valerie
Speaker 1: title Bloomberg Daybreak Europe now away from the markets and
Speaker 1: onto some politics. Bloomberg has learned that the U s
Speaker 1: Sectary of State Anthony B. Lincoln, is considering sitting down
Speaker 1: with his Chinese counterpart Wang Yee So also say the
Speaker 1: two would meet at the Munich Security Conference later this week,
Speaker 1: provided both sides agree. Speaking ahead of the conference, the
Speaker 1: NATO Secretary General Yain Stoltenberg warned of the growing intelligence
Speaker 1: threat from Beijing and elsewhere. We see it in cyber
Speaker 1: We see it with satellites, more and more satellites, and
Speaker 1: we see them with the balloons. That highlights the importance
Speaker 1: of our vigilance are increased presence, and also that we
Speaker 1: ramp up and step up how we share intelligence and
Speaker 1: how we monitor and protect our airspace. The NATO Secretary
Speaker 1: General spoke as the US recovered what it calls significant
Speaker 1: debris from the remains of the balloon shot down off
Speaker 1: the coast of South Carolina last week. Those are our
Speaker 1: top stories this morning. One of those stories on the
Speaker 1: Bloomberternal this morning that caught my eye is to do
Speaker 1: with regular office spending habits. Now it's Valentine's Day, but
Speaker 1: some things that after the workers are not buying each
Speaker 1: other as launch apparently no five quitter sandwich, no thank
Speaker 1: you very much. Look people going back to officers though
Speaker 1: immediately post pandemic they were splurging, they were going out,
Speaker 1: they were buying the expensive coffee. The excitement, Yes, but
Speaker 1: at the cost of living crisis has crushed all of that. Yeah,
Speaker 1: not so good for for the retailers. That's kind of
Speaker 1: one end of things. Then the opposite end also, so
Speaker 1: the UK's new register for overseas owners beneficial owners of
Speaker 1: property in the UK. I think it's such a fascinating story, right,
Speaker 1: it's the government kind of lifting the lid on who
Speaker 1: owns properties in the UK. We've crunched the numbers. Very
Speaker 1: interesting names that pop up now. Yes, indeed, the Russian
Speaker 1: tycoon Alexandra Frolov, you know, former chief executive of the
Speaker 1: Russian Steel book ever as just one of those who's
Speaker 1: who's featured in this story by OAR colleague Banjamin Stopples
Speaker 1: today about people who are showing up on this list
Speaker 1: of people who have registered properties. Yeah, you've got James
Speaker 1: Dieton is the ucas richest person, Steff, I'm person the
Speaker 1: man behind the Swedish retailer H and M. And yes,
Speaker 1: Saudi Arabian is Al Raji family, the rule of Dubai.
Speaker 1: I mean, so many names, really interesting. Also, I like
Speaker 1: this piece because we're going to blow our own trumpet,
Speaker 1: which is that we interviewed the minister Martin Callen and
Speaker 1: around this. You know, this is a kind of effort
Speaker 1: in the UK to bring a bit more transparency. So yeah,
Speaker 1: the piece, um so basically now people who own property
Speaker 1: tracts of lands in the UK, they do have to
Speaker 1: kind of declare themselves what a perfect summary of our
Speaker 1: diverging interests. I'm worried about sandwiches, and Caroline is worried
Speaker 1: about luxury property. Right, coming up next Amazon's fourteen billion
Speaker 1: dollar experiment tie of distress and broker it like Beckham,
Speaker 1: now the paper review on Blue Birthday Break Europe. The
Speaker 1: news you need to know from today's papers. It makes
Speaker 1: James Wilcock joins us now for that, James is a
Speaker 1: bit of a mix in the newspapers today. So so
Speaker 1: I'm talking about defense Ukraine and spy balloons, and some
Speaker 1: about the coming council tax hikes and that cost of
Speaker 1: living crisis in the UK. The first headline though, that
Speaker 1: we'll talk about is in the telegraph and I catching
Speaker 1: line asking can men ever get Valentine's Day? Right? I
Speaker 1: mean that was my pivots Caroline talking about David Becker
Speaker 1: the Telegraphic and day, can then ever get Valentine's day, right, However,
Speaker 1: what I really want to talk about the teleraph is
Speaker 1: this idea that David Becker has been approached to touch
Speaker 1: front Manchester United takeover bids. Now, so what I find
Speaker 1: me interesting about that sports story, outside of sort of
Speaker 1: the loving with Valentine's Day, is that it is Premier
Speaker 1: League's most valuable club, Benches United, and it is one
Speaker 1: of the world's top three most valuable estimates ranging that
Speaker 1: valuation sort of four to six billion now given back
Speaker 1: in two thousand and five, the Glazer family bought it
Speaker 1: for eight hundred million in a lever buyout. That return
Speaker 1: is quite impressive as well as that the Athletic calculate
Speaker 1: that nearly four hundred and fifty million has been taken
Speaker 1: out of the company sort of through I p O
Speaker 1: share fields and dividends since then. But yeah, but the
Speaker 1: thing is David Beckham may have been approached, but actually
Speaker 1: he's not attached himself to any bids. Has This is
Speaker 1: what's so interesting that to me about buying a company
Speaker 1: of us as buying a football club. They often said
Speaker 1: there's no money in it, but again the Glazer family
Speaker 1: show there can be money made. But unlike any other company,
Speaker 1: you have to win over the fans, so they've approached.
Speaker 1: There are it's rumored a roughly sort of four or
Speaker 1: five kind of big bidders at this final stage the
Speaker 1: soft deadline for Friday, and there have been some rumors
Speaker 1: that David Beckham has been approached to endure front of
Speaker 1: these bids. When Chelsea was brought out recently, Serena Williams
Speaker 1: and Lewis Hamilton's were targeted because the idea being you
Speaker 1: get a big celebrity endorsement and it might give you
Speaker 1: the edge and getting the fans on board. The other
Speaker 1: side of the facetting, those like you say Beckham hasn't
Speaker 1: attached himself to any bid because he's actually going more
Speaker 1: of an investment focus himself. There's often more money for
Speaker 1: these big famous celebrity footballers now in starting their own
Speaker 1: companies and big investment vehicles. I mean, you look at St.
Speaker 1: Michael Jordan's whose estimated net worth is now one billion
Speaker 1: dollars due to his investment, not his endorsements. Okay, I'm
Speaker 1: going to steer us neatly away from the sports news
Speaker 1: and inflation in the Times today, inflation putting frames over
Speaker 1: the edge. What says about So, I mean, we've been
Speaker 1: hearing all this grimy cann't use to quite a while, Stephen,
Speaker 1: and we go from that to the idea of, well,
Speaker 1: how do you find out which companies are going to
Speaker 1: go bust? Well, you talk to the experts. City restructuring specialists.
Speaker 1: AFP of Advisory has told their shareholders expect more restructuring
Speaker 1: in the coming months. So if the company that gets
Speaker 1: money off doing these kind of restructurings is saying like
Speaker 1: load up and get ready, that's worth keeping an eye on.
Speaker 1: As well as that, researched by Earnestly Young found that
Speaker 1: eleven percent of companies issued profit warnings in the fine
Speaker 1: quarter of two citing type of credit conditions. That was
Speaker 1: the first time since two thousand nine when more than
Speaker 1: ten percent of companies issue profit warnings given those kind
Speaker 1: of conditions. So we have the sort of the tickers
Speaker 1: of these big red warning lights are on the upside.
Speaker 1: I'm a phrase, well, look if I'm not very much mistaken.
Speaker 1: We spoke to e Y about that report about a
Speaker 1: month ago. So interesting, yes, though, that there is this
Speaker 1: kind of building consensus around the worry of, you know,
Speaker 1: companies getting into trouble defaulting or being under such pressure.
Speaker 1: Look just last see the Ft has an interesting interview
Speaker 1: with the Amazon CEO and d Jassey. Yeah, of me,
Speaker 1: I'd see this is an Uplifting story, so because it's
Speaker 1: a tech story, Caroline. Amazon has said that they are
Speaker 1: scaling back their grocery sort of business, and they bought
Speaker 1: Whole Foods five years ago for about fourteen billion dollars
Speaker 1: and since then it has not been a big success
Speaker 1: for them. They have just failed to crack retail and
Speaker 1: analyst Tho's amiss that they just don't understand it. They
Speaker 1: don't understand shop thing, They don't stand real bricks and mortar.
Speaker 1: Why I find that Uplifting is a company that has
Speaker 1: revolutionized online shopping and completely change the way we buy stuff,
Speaker 1: still can't crack some of the things that some of
Speaker 1: the older businesses can still do going into a shop,
Speaker 1: how a store feels, how it works. But this interew
Speaker 1: with the Ft says they're not giving up yet. They
Speaker 1: put a lot of that story down to the pandemic
Speaker 1: and they intend to double down on that investment. Although
Speaker 1: they're not open aly new stores, they expect a lot
Speaker 1: more experimentation in the space and still think there was
Speaker 1: a future for the high street and having a physical store. Well, listen,
Speaker 1: there is. There's one of those Amazon shops on my
Speaker 1: high street. I must admit to having some difficulties actually
Speaker 1: getting into the shop because it's all completely electronic. There's
Speaker 1: nobody present. Yeah, it's just waving from the outsider saying
Speaker 1: that looks nice. Well I had to figure it out
Speaker 1: on the phone. Come on, how to get into the
Speaker 1: twenty first century? Okay, very good, okay, very good, Thank
Speaker 1: you very much. James Willcock for that review of the
Speaker 1: papers this morning where the Japanese government has nominated Cazo
Speaker 1: Wada to lead the Bank of Japan. He was somewhat
Speaker 1: of a surprise pick. But what does it mean for policy?
Speaker 1: Joining us now is Boomberg's kareem more from Tokyo. Good
Speaker 1: morning to you and from London. What is next in
Speaker 1: this process? Then? What happens after today? Yes, good morning,
Speaker 1: that's three. Japanese Prime Minister Kishida submitted the official nomination
Speaker 1: to parliament today. Uh and it's just the first step
Speaker 1: in a week's long process. So it will be take
Speaker 1: the next couple of months to really replace Kududa, who
Speaker 1: has been at the top of the b o J
Speaker 1: for the past ten years now, So now that the
Speaker 1: nominations are official and that's out of the way, and
Speaker 1: probably no more surprise because we can look to February.
Speaker 1: We'll mark that on our calendars. That's what traders will
Speaker 1: want to watch because that's the next big day to
Speaker 1: keep an eye on when the parliamentary hearings begin at
Speaker 1: the lower end upper House. So basically what happens is
Speaker 1: this bo J governor of the new Governor of Casowia
Speaker 1: will likely get grilled on his policy stance and be
Speaker 1: asked about the exit strategy for the current monetary policy
Speaker 1: and it's all part of the vetting process, but traders
Speaker 1: will be hanging on to his every word and that
Speaker 1: could really have see the Maltili in the yend like
Speaker 1: we saw on Friday night with his announced as the
Speaker 1: present announcement that he would be the next b o
Speaker 1: J governor. Then if all goes as planned, the deputies
Speaker 1: there are two deputies deputy governors of the b o J.
Speaker 1: Also we're nominated today. They'll start on March twentieth, and
Speaker 1: that's a few weeks ahead of the b o J
Speaker 1: governor who will start on April nine. Okay, what do
Speaker 1: we know of the of the deputy governors then, who
Speaker 1: are going to be, as you mentioned, nominated, Yes, so
Speaker 1: the deputy governor is actually uh, it's an interesting case
Speaker 1: here in terms of diversity. It's not exactly what we
Speaker 1: wanted in terms of having in Japan have leadership with
Speaker 1: women in the top The two incoming DEPTHT governors have
Speaker 1: the name does she and both men of course both
Speaker 1: qualified and but the top three are again once again
Speaker 1: all meant the expecting we were expecting the former bo
Speaker 1: J official actually you okinah, she's a woman to actually
Speaker 1: be nominated as one of the two incoming deputy governors,
Speaker 1: but that didn't happen. So this nomination by Keshia really
Speaker 1: underscores the hurdles that women facing here in Japan and
Speaker 1: continue to face in Japan. The FED of course that
Speaker 1: Janet Yellen ecp as Christine Lagard, so the b o
Speaker 1: J not really keeping up in that sense. It's still
Speaker 1: seems like a really long way to go here in
Speaker 1: Japan when it comes to diversity, especially in leadership positions.
Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the
Speaker 1: stories making news from London to Wall Streets and beyond.
Speaker 1: Look for us on your podcast feed every morning, on Apple, Spotify,
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Speaker 1: on Bloomberg Daybreak Europe