1 00:00:02,400 --> 00:00:07,960 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. Michael Roberts, good to 2 00:00:08,000 --> 00:00:08,600 Speaker 1: see you this morning. 3 00:00:08,640 --> 00:00:11,800 Speaker 2: Thank you for welcoming us onto your new trading floor, 4 00:00:11,760 --> 00:00:13,480 Speaker 2: your new building done in Hudson Yards. 5 00:00:14,360 --> 00:00:15,880 Speaker 1: This is in many ways a statement. 6 00:00:16,120 --> 00:00:18,639 Speaker 2: If I look at the bank and the organization, you 7 00:00:18,720 --> 00:00:22,079 Speaker 2: spent a number of years deconstructing HSBC in the US 8 00:00:22,200 --> 00:00:24,840 Speaker 2: selling assets on the East and West coast. Is that 9 00:00:25,079 --> 00:00:29,160 Speaker 2: deconstruction done and you are fit for purpose today? 10 00:00:29,360 --> 00:00:29,520 Speaker 3: Yeah? 11 00:00:29,680 --> 00:00:32,080 Speaker 4: Thank you manas for being here and answer the question 12 00:00:32,120 --> 00:00:35,120 Speaker 4: is definitely yes. We had a transformation plan that we 13 00:00:35,159 --> 00:00:39,600 Speaker 4: started in twenty twenty, unfortunately right as COVID had, but 14 00:00:39,800 --> 00:00:42,680 Speaker 4: we persevered, we got through it, and we really took 15 00:00:42,680 --> 00:00:45,239 Speaker 4: the bank down to its core and rebuilt it in 16 00:00:45,280 --> 00:00:47,080 Speaker 4: an image that we think is going to be much 17 00:00:47,080 --> 00:00:51,960 Speaker 4: more successful. Focusing on our international core capabilities. We are 18 00:00:52,000 --> 00:00:57,120 Speaker 4: in the main international bank, focusing on trade, focusing on entrepreneurs. 19 00:00:57,880 --> 00:01:00,600 Speaker 4: Before that we were a little more scattered were focus. 20 00:01:00,680 --> 00:01:01,680 Speaker 3: We weren't this discipline. 21 00:01:01,960 --> 00:01:04,880 Speaker 4: Now we are in both in our wholesale businesses and 22 00:01:04,959 --> 00:01:09,320 Speaker 4: our retail businesses. We focus on serving international clients and 23 00:01:09,400 --> 00:01:11,600 Speaker 4: doing so what we think is a very unique way. 24 00:01:11,959 --> 00:01:14,199 Speaker 3: So it is done. We're very happy about that. 25 00:01:14,640 --> 00:01:17,759 Speaker 4: This building is in fact the last piece of the puzzle. 26 00:01:18,040 --> 00:01:19,760 Speaker 4: It's the culmination of all the efforts. 27 00:01:20,080 --> 00:01:22,720 Speaker 2: If I said to you, then where's the concentration going 28 00:01:22,760 --> 00:01:24,480 Speaker 2: to be? Is it going to be built up? Commercial 29 00:01:24,560 --> 00:01:28,319 Speaker 2: banking here in North America serves into Asia and China, 30 00:01:28,560 --> 00:01:31,040 Speaker 2: complementary with wealth management is a double tall. 31 00:01:31,240 --> 00:01:32,440 Speaker 3: Yeah, it is definitely that. 32 00:01:32,640 --> 00:01:36,640 Speaker 4: So we are unique in that we certainly serve wholesale 33 00:01:36,680 --> 00:01:38,160 Speaker 4: clients on an international basis. 34 00:01:38,160 --> 00:01:38,720 Speaker 3: So think of. 35 00:01:39,000 --> 00:01:42,080 Speaker 4: American clients and they maybe small clients up to the largest, 36 00:01:42,319 --> 00:01:46,640 Speaker 4: the largest multinationals. We serve them into Asia, into Middle East. 37 00:01:46,440 --> 00:01:48,760 Speaker 3: And into Europe. That works quite successfully. 38 00:01:49,120 --> 00:01:53,280 Speaker 4: Similarly, we serve those foreign clients operating in the United States, 39 00:01:53,480 --> 00:01:56,040 Speaker 4: and think about a European company or an Asian company. 40 00:01:56,280 --> 00:01:58,520 Speaker 4: The US is the biggest market in the world. They 41 00:01:58,560 --> 00:02:00,440 Speaker 4: want to be here, they have to be here for 42 00:02:00,480 --> 00:02:02,680 Speaker 4: their own strategies, and so we can give them that 43 00:02:02,800 --> 00:02:06,160 Speaker 4: platform as well. What really makes us unique, however, is 44 00:02:06,200 --> 00:02:10,880 Speaker 4: our business and retail and wealth management. It is extraordinary 45 00:02:10,880 --> 00:02:15,360 Speaker 4: because we can serve international affluent wealth management type of 46 00:02:15,360 --> 00:02:16,600 Speaker 4: clients in a way that. 47 00:02:16,560 --> 00:02:18,840 Speaker 3: No other bank can. So think of your sitting in 48 00:02:18,880 --> 00:02:19,400 Speaker 3: Hong Kong. 49 00:02:19,760 --> 00:02:22,360 Speaker 4: You want to buy property in the United States, maybe 50 00:02:22,360 --> 00:02:25,600 Speaker 4: your son goes to a university the United States. 51 00:02:25,800 --> 00:02:27,800 Speaker 3: We can provide the mortgage. We can provide you a 52 00:02:27,840 --> 00:02:28,400 Speaker 3: credit card. 53 00:02:28,680 --> 00:02:30,200 Speaker 4: Ever trying to get a credit card without a fight 54 00:02:30,240 --> 00:02:31,559 Speaker 4: co score in the United States. 55 00:02:31,880 --> 00:02:33,360 Speaker 5: I have tried that. 56 00:02:33,480 --> 00:02:35,000 Speaker 2: But let's just pick up on that because of course 57 00:02:35,000 --> 00:02:36,839 Speaker 2: you bought SVB in the UK, and then you picked 58 00:02:36,880 --> 00:02:40,280 Speaker 2: up forty bankers from SVB, you know, in the wreckage 59 00:02:40,440 --> 00:02:42,799 Speaker 2: of that time over a year ago. Do you want 60 00:02:42,840 --> 00:02:44,840 Speaker 2: to build and buy more wealth management? How do you 61 00:02:44,880 --> 00:02:47,080 Speaker 2: build a wealth management structure here in the US? What 62 00:02:47,200 --> 00:02:48,480 Speaker 2: is the prime objective. 63 00:02:48,280 --> 00:02:49,440 Speaker 3: We're going to build organically? 64 00:02:49,480 --> 00:02:52,280 Speaker 4: We're going to focus really on a very i think 65 00:02:52,360 --> 00:02:55,639 Speaker 4: well defined target market of international clients. We have sort 66 00:02:55,680 --> 00:02:58,880 Speaker 4: of five personas. So think about expats moving to the 67 00:02:58,960 --> 00:03:02,079 Speaker 4: United States. Think about people have business opportunities in the 68 00:03:02,120 --> 00:03:05,560 Speaker 4: United States, but maybe they live elsewhere. Think about expats 69 00:03:05,960 --> 00:03:08,760 Speaker 4: that are American expats moving abroad. So we have all 70 00:03:08,880 --> 00:03:12,320 Speaker 4: those three personas there in fact five in total that 71 00:03:12,360 --> 00:03:14,120 Speaker 4: are there to really be served by us in a 72 00:03:14,240 --> 00:03:14,880 Speaker 4: very unique way. 73 00:03:15,480 --> 00:03:17,800 Speaker 2: If we think that about the commercial banking I'm curious 74 00:03:17,840 --> 00:03:19,280 Speaker 2: to get a sense on this. We're in the foothills 75 00:03:19,280 --> 00:03:21,160 Speaker 2: of a Cold war, right, whatever way you look at it, 76 00:03:21,200 --> 00:03:23,919 Speaker 2: there's more talisman Biden administration, maybe more to come from 77 00:03:23,919 --> 00:03:25,040 Speaker 2: a new administration. 78 00:03:25,440 --> 00:03:27,800 Speaker 5: We have got tariffs, we've got angst. 79 00:03:28,160 --> 00:03:31,520 Speaker 2: Is that steming any of the commercial banking flow from 80 00:03:31,600 --> 00:03:35,440 Speaker 2: America into China or into Asia? Is there any diversion 81 00:03:35,520 --> 00:03:36,280 Speaker 2: or flow or slowed on? 82 00:03:36,520 --> 00:03:39,040 Speaker 4: Yeah, Look, it's a great question, and clearly we're in 83 00:03:39,080 --> 00:03:42,200 Speaker 4: a period of rising tariffs, rising quotas. 84 00:03:42,480 --> 00:03:44,200 Speaker 3: Don't know what the Chinese response. 85 00:03:43,920 --> 00:03:46,560 Speaker 4: Will be to the latest tariffs put on by the US, 86 00:03:47,240 --> 00:03:49,800 Speaker 4: but you know, trade liberalism is certainly in a different 87 00:03:49,800 --> 00:03:51,880 Speaker 4: phase than it was in the past. So I think 88 00:03:51,920 --> 00:03:54,200 Speaker 4: we have to accept that. Our companies have to accept that. 89 00:03:54,560 --> 00:03:57,040 Speaker 4: So a couple of responses. One, we're there to provide 90 00:03:57,040 --> 00:03:59,840 Speaker 4: that advice. Were the largest trade bank in the world, 91 00:04:00,160 --> 00:04:04,240 Speaker 4: we have abilities to really help companies manage their trade 92 00:04:04,280 --> 00:04:08,000 Speaker 4: wherever they may be. So if a client is exporting 93 00:04:08,160 --> 00:04:11,080 Speaker 4: from China, as an example, and once to move that 94 00:04:12,120 --> 00:04:14,320 Speaker 4: production capacity outside of China, we. 95 00:04:14,280 --> 00:04:14,880 Speaker 3: Can help them. 96 00:04:15,000 --> 00:04:17,880 Speaker 4: Where the largest foreign bank in India, we're a significant 97 00:04:17,880 --> 00:04:20,880 Speaker 4: bank in Vietnam, a very big bank in Mexico. So 98 00:04:20,960 --> 00:04:24,680 Speaker 4: we're really there to help them navigate through this unpredictability. 99 00:04:24,960 --> 00:04:27,719 Speaker 4: I think that will continue regardless of what happens in 100 00:04:27,760 --> 00:04:31,400 Speaker 4: the elections. We will have more tariffs, more quotas, a 101 00:04:31,760 --> 00:04:35,960 Speaker 4: less easy trade environment to navigate going forward. 102 00:04:36,000 --> 00:04:38,080 Speaker 5: If I said to you wants the biggest lever for 103 00:04:38,160 --> 00:04:39,320 Speaker 5: the business. 104 00:04:39,480 --> 00:04:42,240 Speaker 1: In the New Yar term, is it going to be right. 105 00:04:42,160 --> 00:04:47,200 Speaker 2: Cups from the fad or a clarity in politics and tariffs. 106 00:04:47,680 --> 00:04:51,280 Speaker 4: I think it's both. I think you need predictability. Companies 107 00:04:51,440 --> 00:04:55,920 Speaker 4: need predictability to make their investments. Investors need predictability. What 108 00:04:55,960 --> 00:04:58,880 Speaker 4: we haven't had really is that predictability. Lots of discussion 109 00:04:58,880 --> 00:05:01,839 Speaker 4: on interest raise, it's a discussion of winning by how much. 110 00:05:02,279 --> 00:05:05,919 Speaker 4: Now you've got the quote uncertainties. I think policy needs 111 00:05:05,960 --> 00:05:09,400 Speaker 4: to be predictable. So if there's a rate cut, fine, 112 00:05:09,800 --> 00:05:12,600 Speaker 4: if there's not, then it's the question of how companies 113 00:05:12,600 --> 00:05:13,400 Speaker 4: then react to that. 114 00:05:13,839 --> 00:05:14,719 Speaker 3: How do they then. 115 00:05:14,920 --> 00:05:18,039 Speaker 4: Build their businesses to exist in a rate environment which 116 00:05:18,080 --> 00:05:20,120 Speaker 4: is higher than it has been the last fifteen years. 117 00:05:20,520 --> 00:05:22,680 Speaker 4: But I would argue that in the last fifteen years 118 00:05:22,680 --> 00:05:25,520 Speaker 4: have been an abnormal rate environment. So if they have 119 00:05:25,640 --> 00:05:28,640 Speaker 4: that predictability, they can adjust their own production they can 120 00:05:28,680 --> 00:05:30,960 Speaker 4: adjust how they run their companies and I think they'll 121 00:05:31,000 --> 00:05:33,520 Speaker 4: do much better, but they need policy predictability. 122 00:05:34,080 --> 00:05:35,760 Speaker 2: But here in lies the point for the commercial mind. 123 00:05:35,800 --> 00:05:38,480 Speaker 2: Then let's just square that away, which is many people 124 00:05:38,480 --> 00:05:41,000 Speaker 2: say to me they've refinanced a great deal, have refinanced 125 00:05:41,040 --> 00:05:43,040 Speaker 2: on the retail retail private side. 126 00:05:43,400 --> 00:05:44,720 Speaker 5: Do you think that's the same for corporates. 127 00:05:44,720 --> 00:05:47,000 Speaker 2: Are they holding back on doing these, doing M and A, 128 00:05:47,279 --> 00:05:51,040 Speaker 2: doing that capital market as a result of uncertain tea. 129 00:05:51,120 --> 00:05:53,080 Speaker 4: Yeah, I think they were in the past. I think 130 00:05:53,440 --> 00:05:55,440 Speaker 4: last year was certainly a reflection of that. 131 00:05:55,440 --> 00:05:57,200 Speaker 5: Uncertainty, and we've jumped over that night. 132 00:05:57,279 --> 00:05:57,960 Speaker 3: We have jumped over. 133 00:05:58,160 --> 00:06:00,839 Speaker 4: I mean, if you look today, the capital markets are 134 00:06:00,880 --> 00:06:03,640 Speaker 4: on fire. We've had seven hundred and fifty billion dollars 135 00:06:03,680 --> 00:06:06,000 Speaker 4: of isisuans in the dech capital markets for investment grade 136 00:06:06,560 --> 00:06:08,839 Speaker 4: spreads are the tighters they've been in a long long time. 137 00:06:09,520 --> 00:06:12,320 Speaker 4: The lot of colo formation of capital for the non 138 00:06:12,360 --> 00:06:15,479 Speaker 4: investment grade market, which I think will continue, and even 139 00:06:15,480 --> 00:06:18,680 Speaker 4: the equity market. We've seen a lot more IPOs, led 140 00:06:18,680 --> 00:06:21,239 Speaker 4: by the tech sector, of course, but IPOs are trading 141 00:06:21,320 --> 00:06:24,080 Speaker 4: very nicely now, a lot more activities, so I think 142 00:06:24,520 --> 00:06:28,080 Speaker 4: that sense of predictability is coming back, yes, and people 143 00:06:28,120 --> 00:06:30,240 Speaker 4: have gotten over whether it be six, five, four, three 144 00:06:30,279 --> 00:06:33,279 Speaker 4: two one, you know, interest rate cuts. I think they're saying, 145 00:06:33,320 --> 00:06:35,680 Speaker 4: you know what, it's going to be a three and 146 00:06:35,680 --> 00:06:38,120 Speaker 4: a half to five and a half percent interest rate environment. 147 00:06:38,120 --> 00:06:39,240 Speaker 3: We just need to adjust to them. 148 00:06:39,320 --> 00:06:41,120 Speaker 5: Put your market on right cuts this year. 149 00:06:41,839 --> 00:06:44,279 Speaker 4: I think if you get one, you'll probably doing pretty well. 150 00:06:44,360 --> 00:06:46,880 Speaker 4: And that's what our helsview is my personal view, you'll 151 00:06:46,880 --> 00:06:48,599 Speaker 4: get one maxim maximum. 152 00:06:48,920 --> 00:06:50,640 Speaker 5: So that kind of a bullish eye like, then what 153 00:06:50,720 --> 00:06:52,159 Speaker 5: is the flow? What is the flow? 154 00:06:52,320 --> 00:06:54,799 Speaker 2: And the book look like here on the on the floor, 155 00:06:54,880 --> 00:06:57,440 Speaker 2: because that's a very bullish statement by the market. 156 00:06:57,680 --> 00:06:59,760 Speaker 3: Where are you in quarter too, Yeah, we're doing well. 157 00:07:00,240 --> 00:07:02,800 Speaker 4: There's been a lot more activity both in the debt 158 00:07:02,839 --> 00:07:05,679 Speaker 4: inequity capital markets, so we feel very comfortable where we are. 159 00:07:05,920 --> 00:07:08,839 Speaker 4: And our goal really is to support international companies coming 160 00:07:08,880 --> 00:07:11,800 Speaker 4: into the United States and as well as helping those 161 00:07:11,800 --> 00:07:15,120 Speaker 4: companies raise capital here, helping our companies raise capital elsewhere 162 00:07:15,120 --> 00:07:16,200 Speaker 4: as well. 163 00:07:16,360 --> 00:07:17,760 Speaker 2: If I said you let's push bark them on a 164 00:07:17,760 --> 00:07:19,320 Speaker 2: little bit, because if you look at where you are 165 00:07:19,320 --> 00:07:21,760 Speaker 2: in debt capital markets and equity capital markets, I would 166 00:07:21,760 --> 00:07:23,680 Speaker 2: say you look, you're not in the top five. You 167 00:07:23,720 --> 00:07:26,400 Speaker 2: know you're quite a way from the top five. Do 168 00:07:26,440 --> 00:07:27,960 Speaker 2: you want to be in the top five? What is 169 00:07:27,960 --> 00:07:30,440 Speaker 2: the ambition for DCM and ECM in that. 170 00:07:30,800 --> 00:07:32,840 Speaker 4: Sense, I want to be good for our clients. I've 171 00:07:32,840 --> 00:07:34,720 Speaker 4: never been a league table guy. I want to focus 172 00:07:34,760 --> 00:07:36,800 Speaker 4: on helping our clients in the way that we need 173 00:07:36,840 --> 00:07:39,320 Speaker 4: for them to help. So, as an example, we're going 174 00:07:39,360 --> 00:07:42,040 Speaker 4: to support a company from the emerging markets who's going 175 00:07:42,080 --> 00:07:44,360 Speaker 4: to be buying a company the United States that we 176 00:07:44,400 --> 00:07:46,840 Speaker 4: need to do from an ad advisory perspective, We're going 177 00:07:46,880 --> 00:07:49,239 Speaker 4: to raise debt in the United States. That is exactly 178 00:07:49,240 --> 00:07:51,760 Speaker 4: the type of transaction that we were going to focus on. Similarly, 179 00:07:51,760 --> 00:07:54,680 Speaker 4: we're helping a company US company buy a company in 180 00:07:54,680 --> 00:07:57,480 Speaker 4: the UK, so we'll use our expertise and our insights, 181 00:07:57,480 --> 00:08:00,320 Speaker 4: our capabilities in the UK market to raise it capital 182 00:08:00,360 --> 00:08:02,960 Speaker 4: as well. So league tables don't really look at them. 183 00:08:03,040 --> 00:08:05,440 Speaker 4: It's really how do we serve our clients. Do we 184 00:08:05,440 --> 00:08:07,080 Speaker 4: do it well and do we do it in such 185 00:08:07,120 --> 00:08:08,320 Speaker 4: a way that we provide them value. 186 00:08:08,560 --> 00:08:10,680 Speaker 2: But then the natural crawllery is that is if you're 187 00:08:10,680 --> 00:08:12,200 Speaker 2: not sort of focused on being on the top five, 188 00:08:12,240 --> 00:08:13,960 Speaker 2: my question would be is do you have the right 189 00:08:14,000 --> 00:08:16,960 Speaker 2: scale to fill this heighthst dining HUDs in yards Because 190 00:08:17,080 --> 00:08:19,640 Speaker 2: obviously it's not the same story in Asia as it 191 00:08:19,680 --> 00:08:20,000 Speaker 2: is here. 192 00:08:20,000 --> 00:08:21,000 Speaker 1: This is a very. 193 00:08:20,800 --> 00:08:23,480 Speaker 2: Different capital markets to what's happening in Asia at the 194 00:08:23,560 --> 00:08:26,440 Speaker 2: right at this moment in time. So are you again 195 00:08:26,480 --> 00:08:29,720 Speaker 2: going back to fit for purpose right size on those 196 00:08:29,760 --> 00:08:30,360 Speaker 2: teams here. 197 00:08:30,240 --> 00:08:31,360 Speaker 3: In the US completely? 198 00:08:31,440 --> 00:08:34,199 Speaker 4: In fact, as you look around this trading floor, it's 199 00:08:34,240 --> 00:08:36,560 Speaker 4: pretty full. We've got about four hundred traders here. 200 00:08:36,640 --> 00:08:39,480 Speaker 2: So you would say, no cuts in America in jobs 201 00:08:39,480 --> 00:08:40,160 Speaker 2: in those businesses. 202 00:08:40,200 --> 00:08:41,920 Speaker 4: I would say, we're fit for purpose, you know, and 203 00:08:41,960 --> 00:08:44,240 Speaker 4: we will always you know, change will always react to 204 00:08:44,280 --> 00:08:47,480 Speaker 4: It's a dynamic process. But we're fit for purpose because 205 00:08:47,480 --> 00:08:49,400 Speaker 4: you have to really look at our operations are here 206 00:08:49,440 --> 00:08:51,160 Speaker 4: to serve not only are you know what we do 207 00:08:51,200 --> 00:08:55,160 Speaker 4: in the US, but globally. So if there is need 208 00:08:55,200 --> 00:08:57,720 Speaker 4: to raise capital around the world, you've got to come 209 00:08:57,760 --> 00:09:01,000 Speaker 4: to the US markets. So we serve hs BC as 210 00:09:01,120 --> 00:09:05,120 Speaker 4: the center of an activity in the largest capital markets 211 00:09:05,120 --> 00:09:06,800 Speaker 4: in the world. I would argue you can't be a 212 00:09:06,840 --> 00:09:09,560 Speaker 4: global bank without being very relevant the United States. We 213 00:09:09,600 --> 00:09:11,920 Speaker 4: are relevant to our clients in the United States. We're also 214 00:09:12,040 --> 00:09:14,040 Speaker 4: relevant and very important for HSBC. 215 00:09:15,360 --> 00:09:18,839 Speaker 2: To accelerate that pump that you've had in business. Do 216 00:09:18,880 --> 00:09:21,920 Speaker 2: you think rate cuts will re accelerate that. I know 217 00:09:21,920 --> 00:09:24,280 Speaker 2: you're on the table for limited cuts, but do you 218 00:09:24,280 --> 00:09:28,320 Speaker 2: think a shift in the rate environment can materially. 219 00:09:27,800 --> 00:09:28,600 Speaker 5: Shift the business. 220 00:09:29,280 --> 00:09:32,480 Speaker 4: I think rate cuts will be important, but not determined, 221 00:09:32,600 --> 00:09:35,360 Speaker 4: so I think yes, it's important to have rate cuts. Again, 222 00:09:35,400 --> 00:09:39,120 Speaker 4: I'll go back to this predictability statement. If rate cuts come, 223 00:09:39,480 --> 00:09:43,000 Speaker 4: it provides predictability. I think you'll see that capital markets 224 00:09:43,000 --> 00:09:43,840 Speaker 4: grow even more. 225 00:09:44,280 --> 00:09:45,680 Speaker 3: I think they're poised to do so. 226 00:09:45,920 --> 00:09:48,920 Speaker 4: As I mentioned, lots of capital formation money sitting on 227 00:09:48,960 --> 00:09:50,960 Speaker 4: the sidelines, but it wants to be. 228 00:09:50,840 --> 00:09:51,480 Speaker 3: Put to work. 229 00:09:51,760 --> 00:09:54,920 Speaker 4: So as soon as we can see predictability, I think 230 00:09:54,960 --> 00:09:57,480 Speaker 4: you'll have even greater growth than the capital markets, both 231 00:09:57,520 --> 00:09:59,679 Speaker 4: debt and equity. And I think we're well positioned to 232 00:09:59,679 --> 00:10:02,559 Speaker 4: takevage of that. We've got lots of discussions going on, 233 00:10:03,000 --> 00:10:06,560 Speaker 4: lots of sentiment is turning positive today, and they're looking 234 00:10:06,600 --> 00:10:08,679 Speaker 4: for that opportunity to fully exploit. 235 00:10:09,400 --> 00:10:12,000 Speaker 2: So we caught up with David Solomon. We wrote a 236 00:10:12,040 --> 00:10:14,040 Speaker 2: story from him yesterday. We caught up with him in 237 00:10:14,120 --> 00:10:17,880 Speaker 2: Paris is what can you tell me about Middle America, 238 00:10:17,920 --> 00:10:21,520 Speaker 2: corporate and Middle America, because he says higher rates, higher 239 00:10:21,520 --> 00:10:23,520 Speaker 2: for longer is beginning to bite, is it. 240 00:10:24,080 --> 00:10:27,360 Speaker 4: I think it's beginning to bite, certainly for consumers. And 241 00:10:27,480 --> 00:10:29,960 Speaker 4: you know, if you think about it, over the last years, 242 00:10:29,960 --> 00:10:33,640 Speaker 4: we've had successive years of inflation, call it fifteen percent 243 00:10:33,679 --> 00:10:36,800 Speaker 4: on a cumulative basis, Wages haven't gone up by fifteen percent. 244 00:10:36,880 --> 00:10:39,959 Speaker 4: So yeah, it is biting for certain segments of the population, 245 00:10:40,080 --> 00:10:42,760 Speaker 4: which is policymakers and as bankers we have to be 246 00:10:42,840 --> 00:10:45,840 Speaker 4: very sensitive to. I think for our clients, they've adjusted, 247 00:10:46,200 --> 00:10:49,720 Speaker 4: you know, again historically, these are rates that we have 248 00:10:49,920 --> 00:10:52,520 Speaker 4: historically seen, you know, three and a half, four percent, 249 00:10:52,600 --> 00:10:55,360 Speaker 4: five percent, and so they can adjust to those rates. 250 00:10:55,400 --> 00:10:57,520 Speaker 4: I think they can do pretty well. So we don't 251 00:10:57,559 --> 00:10:59,280 Speaker 4: see a lot of stress in our credit books. We 252 00:10:59,320 --> 00:11:02,559 Speaker 4: don't see company he's giving up and saying that it's 253 00:11:02,600 --> 00:11:05,960 Speaker 4: too difficult environment there, I think being a little cautious 254 00:11:06,040 --> 00:11:07,800 Speaker 4: until they see rates and where they're going. 255 00:11:08,240 --> 00:11:10,079 Speaker 3: But they're not stopping doing business. 256 00:11:10,120 --> 00:11:12,280 Speaker 4: They're not stopping to grow, and they have a view 257 00:11:12,440 --> 00:11:15,480 Speaker 4: that as long as they can manage in this raid environment, 258 00:11:15,679 --> 00:11:17,880 Speaker 4: they know where the race are going, they know where 259 00:11:17,920 --> 00:11:21,480 Speaker 4: the economy is going. They have policy predictability. I think 260 00:11:21,520 --> 00:11:22,160 Speaker 4: they'll be okay. 261 00:11:22,480 --> 00:11:23,959 Speaker 5: So let's talk about the element in the room. The 262 00:11:24,040 --> 00:11:25,840 Speaker 5: chairman will be here. I have it on good authority. 263 00:11:25,880 --> 00:11:26,920 Speaker 3: The chairman will be here today. 264 00:11:26,960 --> 00:11:30,400 Speaker 2: A little bit later on, he's searching for his third 265 00:11:30,520 --> 00:11:35,160 Speaker 2: CEO in seven years. Yif the three predecessors were Brits, 266 00:11:35,840 --> 00:11:36,520 Speaker 2: is it time for. 267 00:11:36,480 --> 00:11:39,800 Speaker 3: A yank time for you? I don't know. Thank you 268 00:11:39,880 --> 00:11:40,280 Speaker 3: very much. 269 00:11:40,520 --> 00:11:43,680 Speaker 4: As an American, I appreciate that, I'd say this one. 270 00:11:44,000 --> 00:11:47,360 Speaker 4: Noel was a great boss no quinn. He and I 271 00:11:47,400 --> 00:11:50,120 Speaker 4: took our respective roles about the same time, so we 272 00:11:50,200 --> 00:11:52,520 Speaker 4: worked very closely. He was a great supporter of me. 273 00:11:52,640 --> 00:11:55,520 Speaker 4: He was a great supporter of this franchise and really 274 00:11:55,600 --> 00:11:58,479 Speaker 4: an inspiring boss to work for and did a fabuloushop. 275 00:11:59,440 --> 00:12:02,680 Speaker 4: Mark Tucker is leading an effort along with the board. 276 00:12:03,000 --> 00:12:05,000 Speaker 4: They're very focused on getting the right person. 277 00:12:05,400 --> 00:12:06,000 Speaker 3: I don't think. 278 00:12:06,280 --> 00:12:10,440 Speaker 2: I mean, you've been here, You've reconstructed this banking in 279 00:12:10,520 --> 00:12:13,280 Speaker 2: North America. Do you think it is better culturally for 280 00:12:13,320 --> 00:12:17,320 Speaker 2: the people of HSPC to have an internal person versus 281 00:12:17,360 --> 00:12:18,719 Speaker 2: another new person come in. 282 00:12:18,840 --> 00:12:20,640 Speaker 4: Yeah, and look, I think we've got a lot of 283 00:12:20,640 --> 00:12:23,960 Speaker 4: good internal candidates. I think they're clearly as an advantage 284 00:12:23,960 --> 00:12:26,560 Speaker 4: for having someone who knows the institution. I think the 285 00:12:26,559 --> 00:12:29,400 Speaker 4: board's going to take that into consideration. They already had 286 00:12:29,400 --> 00:12:32,760 Speaker 4: a succession plan worked out. They were very focused on 287 00:12:32,840 --> 00:12:36,720 Speaker 4: making sure that they would have a very quick, efficient 288 00:12:37,160 --> 00:12:41,120 Speaker 4: and very targeted succession plan. They're looking at both external 289 00:12:41,120 --> 00:12:44,640 Speaker 4: and external candidates their decision obviously, but I think you 290 00:12:44,679 --> 00:12:47,000 Speaker 4: know very important that you bring the right person in 291 00:12:47,200 --> 00:12:49,560 Speaker 4: who has the right culture, the right mindset, and the 292 00:12:49,640 --> 00:12:50,640 Speaker 4: right set of skills. 293 00:12:50,720 --> 00:12:52,320 Speaker 2: Have you put your hat in the ring? How do 294 00:12:52,320 --> 00:12:54,400 Speaker 2: you intimate to Tucker that you are interested? 295 00:12:54,600 --> 00:12:57,560 Speaker 4: I love my job here, thank you very much for that. 296 00:12:58,120 --> 00:13:00,280 Speaker 4: You know clearly got a lot more to do here, 297 00:13:00,320 --> 00:13:02,679 Speaker 4: lots of opportunity, So I'm very content of what I'm 298 00:13:02,720 --> 00:13:03,840 Speaker 4: doing today. 299 00:13:04,200 --> 00:13:06,120 Speaker 2: Do you hope then that the next CEO has bigger 300 00:13:06,160 --> 00:13:09,000 Speaker 2: ambitions for America? I mean, on quite a serious note, 301 00:13:09,200 --> 00:13:12,360 Speaker 2: it is not you will you lobby hard to grow 302 00:13:12,400 --> 00:13:14,480 Speaker 2: in size here in the US? Is that important in 303 00:13:14,520 --> 00:13:15,400 Speaker 2: the next CEO for you? 304 00:13:15,840 --> 00:13:17,880 Speaker 4: I think it's important that we have the right sized 305 00:13:17,880 --> 00:13:20,360 Speaker 4: business here, Yeah, and that we get the resources, we 306 00:13:20,360 --> 00:13:22,040 Speaker 4: get the attention, we get the support, which we have 307 00:13:22,120 --> 00:13:24,880 Speaker 4: been I think it fits in however, with the overall 308 00:13:24,920 --> 00:13:26,880 Speaker 4: strategy of the firm, So there's not going to be 309 00:13:26,880 --> 00:13:29,640 Speaker 4: an America's only strategy. It's really about how do we 310 00:13:29,679 --> 00:13:31,640 Speaker 4: fit in, how do we provide that value, how do 311 00:13:31,679 --> 00:13:35,520 Speaker 4: we provide those capabilities that the firm needs to really 312 00:13:35,559 --> 00:13:37,840 Speaker 4: be the truly global bank that it is, And so 313 00:13:37,960 --> 00:13:38,640 Speaker 4: I think we can. 314 00:13:38,559 --> 00:13:40,840 Speaker 3: Continue to be a very vital part of that. We 315 00:13:40,880 --> 00:13:41,760 Speaker 3: will continue to grow. 316 00:13:41,960 --> 00:13:45,600 Speaker 4: You mentioned innovation banking, which we're growing already very very quickly, 317 00:13:45,640 --> 00:13:48,719 Speaker 4: and we're very pleased with that. When there is opportunities, 318 00:13:48,760 --> 00:13:51,480 Speaker 4: when it fits the strategy, when it makes creates value 319 00:13:51,480 --> 00:13:53,160 Speaker 4: for the company, that's how we'll grow. 320 00:13:53,280 --> 00:13:55,000 Speaker 5: So if he topped you on the shoulder, would you 321 00:13:55,000 --> 00:13:55,800 Speaker 5: be happy to say is? 322 00:13:56,440 --> 00:13:58,520 Speaker 4: I would say, I'm very happy in my job here today, 323 00:13:58,559 --> 00:14:00,920 Speaker 4: So thank you very much. I got lots to do 324 00:14:01,000 --> 00:14:02,760 Speaker 4: and I'll be spending a lot of time with entertaining. 325 00:14:02,760 --> 00:14:04,880 Speaker 2: Oh well, the fact listen, we have one debate going 326 00:14:04,920 --> 00:14:07,959 Speaker 2: on in York right getting everybody back into offices, back 327 00:14:08,000 --> 00:14:11,600 Speaker 2: into trading floors. Finra are fighting back saying that we're 328 00:14:11,600 --> 00:14:14,200 Speaker 2: offering flexible working. You're probably one of the most flexible 329 00:14:14,240 --> 00:14:15,839 Speaker 2: banks in the world. How do you see that for 330 00:14:15,960 --> 00:14:18,400 Speaker 2: Wall Street? How important is it for Wall Street getting 331 00:14:18,440 --> 00:14:20,000 Speaker 2: back in five days a week? 332 00:14:20,040 --> 00:14:20,720 Speaker 5: What do you say to that? 333 00:14:21,000 --> 00:14:23,560 Speaker 4: Yeah, so Finra has, as you mentioned, changed the rules 334 00:14:23,560 --> 00:14:25,480 Speaker 4: and we're adjusting a court light. So and we're going 335 00:14:25,560 --> 00:14:26,880 Speaker 4: to follow the rules like everyone else. 336 00:14:27,280 --> 00:14:29,120 Speaker 3: We are a hybrid bank. 337 00:14:29,720 --> 00:14:31,480 Speaker 4: What we did not want to do is to force 338 00:14:31,520 --> 00:14:34,280 Speaker 4: people to come back simply at a decree. So what 339 00:14:34,360 --> 00:14:37,400 Speaker 4: we did is we built a building, this building Hudson 340 00:14:37,480 --> 00:14:42,440 Speaker 4: Yards in the financial capital of the world, which really 341 00:14:42,480 --> 00:14:46,480 Speaker 4: reflects a lot of input from our employees of why 342 00:14:46,520 --> 00:14:48,800 Speaker 4: they want to come to the office because we did 343 00:14:48,840 --> 00:14:50,560 Speaker 4: this during COVID and we didn't know. 344 00:14:50,520 --> 00:14:52,760 Speaker 3: If anybody ever wanted to come to the office again. 345 00:14:53,240 --> 00:14:56,240 Speaker 4: And so we built something that is very I think 346 00:14:56,880 --> 00:14:58,440 Speaker 4: conducive to people coming back. 347 00:14:58,560 --> 00:14:59,400 Speaker 3: They want to come back. 348 00:14:59,640 --> 00:15:03,480 Speaker 4: And so today our overall attendance levels are in eighty 349 00:15:03,520 --> 00:15:07,640 Speaker 4: percent before we moved less than forty. We're running out 350 00:15:07,640 --> 00:15:09,760 Speaker 4: of space very quickly, and luckily we just took some 351 00:15:09,800 --> 00:15:12,520 Speaker 4: additional space in this building. So I think it we 352 00:15:12,600 --> 00:15:15,240 Speaker 4: will adjust to the funeral rules. We'll make sure that 353 00:15:15,440 --> 00:15:16,960 Speaker 4: whoever needs to be here five days a week will 354 00:15:16,960 --> 00:15:18,600 Speaker 4: be here five day a week. But I don't want 355 00:15:18,600 --> 00:15:20,920 Speaker 4: to decree people coming back. I want them to come 356 00:15:20,920 --> 00:15:23,200 Speaker 4: back because they want to come back, and they do so, 357 00:15:23,280 --> 00:15:25,960 Speaker 4: and they're productive, they feel good about it, and that's 358 00:15:26,080 --> 00:15:28,160 Speaker 4: essentially the environment we have built today. 359 00:15:28,280 --> 00:15:30,320 Speaker 2: Michael, thank you so much for joining me, and thank 360 00:15:30,360 --> 00:15:31,440 Speaker 2: you for inviting us here to Hudson. 361 00:15:31,760 --> 00:15:33,040 Speaker 3: Thank you very much for coming as well.