WEBVTT - HSBC CEO Michael Roberts Talks Company Restructuring 0:00:02.400 --> 0:00:07.960 Bloomberg Audio Studios, Podcasts, radio News. Michael Roberts, good to 0:00:08.000 --> 0:00:08.600 see you this morning. 0:00:08.640 --> 0:00:11.800 Thank you for welcoming us onto your new trading floor, 0:00:11.760 --> 0:00:13.480 your new building done in Hudson Yards. 0:00:14.360 --> 0:00:15.880 This is in many ways a statement. 0:00:16.120 --> 0:00:18.639 If I look at the bank and the organization, you 0:00:18.720 --> 0:00:22.079 spent a number of years deconstructing HSBC in the US 0:00:22.200 --> 0:00:24.840 selling assets on the East and West coast. Is that 0:00:25.079 --> 0:00:29.160 deconstruction done and you are fit for purpose today? 0:00:29.360 --> 0:00:29.520 Yeah? 0:00:29.680 --> 0:00:32.080 Thank you manas for being here and answer the question 0:00:32.120 --> 0:00:35.120 is definitely yes. We had a transformation plan that we 0:00:35.159 --> 0:00:39.600 started in twenty twenty, unfortunately right as COVID had, but 0:00:39.800 --> 0:00:42.680 we persevered, we got through it, and we really took 0:00:42.680 --> 0:00:45.239 the bank down to its core and rebuilt it in 0:00:45.280 --> 0:00:47.080 an image that we think is going to be much 0:00:47.080 --> 0:00:51.960 more successful. Focusing on our international core capabilities. We are 0:00:52.000 --> 0:00:57.120 in the main international bank, focusing on trade, focusing on entrepreneurs. 0:00:57.880 --> 0:01:00.600 Before that we were a little more scattered were focus. 0:01:00.680 --> 0:01:01.680 We weren't this discipline. 0:01:01.960 --> 0:01:04.880 Now we are in both in our wholesale businesses and 0:01:04.959 --> 0:01:09.320 our retail businesses. We focus on serving international clients and 0:01:09.400 --> 0:01:11.600 doing so what we think is a very unique way. 0:01:11.959 --> 0:01:14.199 So it is done. We're very happy about that. 0:01:14.640 --> 0:01:17.759 This building is in fact the last piece of the puzzle. 0:01:18.040 --> 0:01:19.760 It's the culmination of all the efforts. 0:01:20.080 --> 0:01:22.720 If I said to you, then where's the concentration going 0:01:22.760 --> 0:01:24.480 to be? Is it going to be built up? Commercial 0:01:24.560 --> 0:01:28.319 banking here in North America serves into Asia and China, 0:01:28.560 --> 0:01:31.040 complementary with wealth management is a double tall. 0:01:31.240 --> 0:01:32.440 Yeah, it is definitely that. 0:01:32.640 --> 0:01:36.640 So we are unique in that we certainly serve wholesale 0:01:36.680 --> 0:01:38.160 clients on an international basis. 0:01:38.160 --> 0:01:38.720 So think of. 0:01:39.000 --> 0:01:42.080 American clients and they maybe small clients up to the largest, 0:01:42.319 --> 0:01:46.640 the largest multinationals. We serve them into Asia, into Middle East. 0:01:46.440 --> 0:01:48.760 And into Europe. That works quite successfully. 0:01:49.120 --> 0:01:53.280 Similarly, we serve those foreign clients operating in the United States, 0:01:53.480 --> 0:01:56.040 and think about a European company or an Asian company. 0:01:56.280 --> 0:01:58.520 The US is the biggest market in the world. They 0:01:58.560 --> 0:02:00.440 want to be here, they have to be here for 0:02:00.480 --> 0:02:02.680 their own strategies, and so we can give them that 0:02:02.800 --> 0:02:06.160 platform as well. What really makes us unique, however, is 0:02:06.200 --> 0:02:10.880 our business and retail and wealth management. It is extraordinary 0:02:10.880 --> 0:02:15.360 because we can serve international affluent wealth management type of 0:02:15.360 --> 0:02:16.600 clients in a way that. 0:02:16.560 --> 0:02:18.840 No other bank can. So think of your sitting in 0:02:18.880 --> 0:02:19.400 Hong Kong. 0:02:19.760 --> 0:02:22.360 You want to buy property in the United States, maybe 0:02:22.360 --> 0:02:25.600 your son goes to a university the United States. 0:02:25.800 --> 0:02:27.800 We can provide the mortgage. We can provide you a 0:02:27.840 --> 0:02:28.400 credit card. 0:02:28.680 --> 0:02:30.200 Ever trying to get a credit card without a fight 0:02:30.240 --> 0:02:31.559 co score in the United States. 0:02:31.880 --> 0:02:33.360 I have tried that. 0:02:33.480 --> 0:02:35.000 But let's just pick up on that because of course 0:02:35.000 --> 0:02:36.839 you bought SVB in the UK, and then you picked 0:02:36.880 --> 0:02:40.280 up forty bankers from SVB, you know, in the wreckage 0:02:40.440 --> 0:02:42.799 of that time over a year ago. Do you want 0:02:42.840 --> 0:02:44.840 to build and buy more wealth management? How do you 0:02:44.880 --> 0:02:47.080 build a wealth management structure here in the US? What 0:02:47.200 --> 0:02:48.480 is the prime objective. 0:02:48.280 --> 0:02:49.440 We're going to build organically? 0:02:49.480 --> 0:02:52.280 We're going to focus really on a very i think 0:02:52.360 --> 0:02:55.639 well defined target market of international clients. We have sort 0:02:55.680 --> 0:02:58.880 of five personas. So think about expats moving to the 0:02:58.960 --> 0:03:02.079 United States. Think about people have business opportunities in the 0:03:02.120 --> 0:03:05.560 United States, but maybe they live elsewhere. Think about expats 0:03:05.960 --> 0:03:08.760 that are American expats moving abroad. So we have all 0:03:08.880 --> 0:03:12.320 those three personas there in fact five in total that 0:03:12.360 --> 0:03:14.120 are there to really be served by us in a 0:03:14.240 --> 0:03:14.880 very unique way. 0:03:15.480 --> 0:03:17.800 If we think that about the commercial banking I'm curious 0:03:17.840 --> 0:03:19.280 to get a sense on this. We're in the foothills 0:03:19.280 --> 0:03:21.160 of a Cold war, right, whatever way you look at it, 0:03:21.200 --> 0:03:23.919 there's more talisman Biden administration, maybe more to come from 0:03:23.919 --> 0:03:25.040 a new administration. 0:03:25.440 --> 0:03:27.800 We have got tariffs, we've got angst. 0:03:28.160 --> 0:03:31.520 Is that steming any of the commercial banking flow from 0:03:31.600 --> 0:03:35.440 America into China or into Asia? Is there any diversion 0:03:35.520 --> 0:03:36.280 or flow or slowed on? 0:03:36.520 --> 0:03:39.040 Yeah, Look, it's a great question, and clearly we're in 0:03:39.080 --> 0:03:42.200 a period of rising tariffs, rising quotas. 0:03:42.480 --> 0:03:44.200 Don't know what the Chinese response. 0:03:43.920 --> 0:03:46.560 Will be to the latest tariffs put on by the US, 0:03:47.240 --> 0:03:49.800 but you know, trade liberalism is certainly in a different 0:03:49.800 --> 0:03:51.880 phase than it was in the past. So I think 0:03:51.920 --> 0:03:54.200 we have to accept that. Our companies have to accept that. 0:03:54.560 --> 0:03:57.040 So a couple of responses. One, we're there to provide 0:03:57.040 --> 0:03:59.840 that advice. Were the largest trade bank in the world, 0:04:00.160 --> 0:04:04.240 we have abilities to really help companies manage their trade 0:04:04.280 --> 0:04:08.000 wherever they may be. So if a client is exporting 0:04:08.160 --> 0:04:11.080 from China, as an example, and once to move that 0:04:12.120 --> 0:04:14.320 production capacity outside of China, we. 0:04:14.280 --> 0:04:14.880 Can help them. 0:04:15.000 --> 0:04:17.880 Where the largest foreign bank in India, we're a significant 0:04:17.880 --> 0:04:20.880 bank in Vietnam, a very big bank in Mexico. So 0:04:20.960 --> 0:04:24.680 we're really there to help them navigate through this unpredictability. 0:04:24.960 --> 0:04:27.719 I think that will continue regardless of what happens in 0:04:27.760 --> 0:04:31.400 the elections. We will have more tariffs, more quotas, a 0:04:31.760 --> 0:04:35.960 less easy trade environment to navigate going forward. 0:04:36.000 --> 0:04:38.080 If I said to you wants the biggest lever for 0:04:38.160 --> 0:04:39.320 the business. 0:04:39.480 --> 0:04:42.240 In the New Yar term, is it going to be right. 0:04:42.160 --> 0:04:47.200 Cups from the fad or a clarity in politics and tariffs. 0:04:47.680 --> 0:04:51.280 I think it's both. I think you need predictability. Companies 0:04:51.440 --> 0:04:55.920 need predictability to make their investments. Investors need predictability. What 0:04:55.960 --> 0:04:58.880 we haven't had really is that predictability. Lots of discussion 0:04:58.880 --> 0:05:01.839 on interest raise, it's a discussion of winning by how much. 0:05:02.279 --> 0:05:05.919 Now you've got the quote uncertainties. I think policy needs 0:05:05.960 --> 0:05:09.400 to be predictable. So if there's a rate cut, fine, 0:05:09.800 --> 0:05:12.600 if there's not, then it's the question of how companies 0:05:12.600 --> 0:05:13.400 then react to that. 0:05:13.839 --> 0:05:14.719 How do they then. 0:05:14.920 --> 0:05:18.039 Build their businesses to exist in a rate environment which 0:05:18.080 --> 0:05:20.120 is higher than it has been the last fifteen years. 0:05:20.520 --> 0:05:22.680 But I would argue that in the last fifteen years 0:05:22.680 --> 0:05:25.520 have been an abnormal rate environment. So if they have 0:05:25.640 --> 0:05:28.640 that predictability, they can adjust their own production they can 0:05:28.680 --> 0:05:30.960 adjust how they run their companies and I think they'll 0:05:31.000 --> 0:05:33.520 do much better, but they need policy predictability. 0:05:34.080 --> 0:05:35.760 But here in lies the point for the commercial mind. 0:05:35.800 --> 0:05:38.480 Then let's just square that away, which is many people 0:05:38.480 --> 0:05:41.000 say to me they've refinanced a great deal, have refinanced 0:05:41.040 --> 0:05:43.040 on the retail retail private side. 0:05:43.400 --> 0:05:44.720 Do you think that's the same for corporates. 0:05:44.720 --> 0:05:47.000 Are they holding back on doing these, doing M and A, 0:05:47.279 --> 0:05:51.040 doing that capital market as a result of uncertain tea. 0:05:51.120 --> 0:05:53.080 Yeah, I think they were in the past. I think 0:05:53.440 --> 0:05:55.440 last year was certainly a reflection of that. 0:05:55.440 --> 0:05:57.200 Uncertainty, and we've jumped over that night. 0:05:57.279 --> 0:05:57.960 We have jumped over. 0:05:58.160 --> 0:06:00.839 I mean, if you look today, the capital markets are 0:06:00.880 --> 0:06:03.640 on fire. We've had seven hundred and fifty billion dollars 0:06:03.680 --> 0:06:06.000 of isisuans in the dech capital markets for investment grade 0:06:06.560 --> 0:06:08.839 spreads are the tighters they've been in a long long time. 0:06:09.520 --> 0:06:12.320 The lot of colo formation of capital for the non 0:06:12.360 --> 0:06:15.479 investment grade market, which I think will continue, and even 0:06:15.480 --> 0:06:18.680 the equity market. We've seen a lot more IPOs, led 0:06:18.680 --> 0:06:21.239 by the tech sector, of course, but IPOs are trading 0:06:21.320 --> 0:06:24.080 very nicely now, a lot more activities, so I think 0:06:24.520 --> 0:06:28.080 that sense of predictability is coming back, yes, and people 0:06:28.120 --> 0:06:30.240 have gotten over whether it be six, five, four, three 0:06:30.279 --> 0:06:33.279 two one, you know, interest rate cuts. I think they're saying, 0:06:33.320 --> 0:06:35.680 you know what, it's going to be a three and 0:06:35.680 --> 0:06:38.120 a half to five and a half percent interest rate environment. 0:06:38.120 --> 0:06:39.240 We just need to adjust to them. 0:06:39.320 --> 0:06:41.120 Put your market on right cuts this year. 0:06:41.839 --> 0:06:44.279 I think if you get one, you'll probably doing pretty well. 0:06:44.360 --> 0:06:46.880 And that's what our helsview is my personal view, you'll 0:06:46.880 --> 0:06:48.599 get one maxim maximum. 0:06:48.920 --> 0:06:50.640 So that kind of a bullish eye like, then what 0:06:50.720 --> 0:06:52.159 is the flow? What is the flow? 0:06:52.320 --> 0:06:54.799 And the book look like here on the on the floor, 0:06:54.880 --> 0:06:57.440 because that's a very bullish statement by the market. 0:06:57.680 --> 0:06:59.760 Where are you in quarter too, Yeah, we're doing well. 0:07:00.240 --> 0:07:02.800 There's been a lot more activity both in the debt 0:07:02.839 --> 0:07:05.679 inequity capital markets, so we feel very comfortable where we are. 0:07:05.920 --> 0:07:08.839 And our goal really is to support international companies coming 0:07:08.880 --> 0:07:11.800 into the United States and as well as helping those 0:07:11.800 --> 0:07:15.120 companies raise capital here, helping our companies raise capital elsewhere 0:07:15.120 --> 0:07:16.200 as well. 0:07:16.360 --> 0:07:17.760 If I said you let's push bark them on a 0:07:17.760 --> 0:07:19.320 little bit, because if you look at where you are 0:07:19.320 --> 0:07:21.760 in debt capital markets and equity capital markets, I would 0:07:21.760 --> 0:07:23.680 say you look, you're not in the top five. You 0:07:23.720 --> 0:07:26.400 know you're quite a way from the top five. Do 0:07:26.440 --> 0:07:27.960 you want to be in the top five? What is 0:07:27.960 --> 0:07:30.440 the ambition for DCM and ECM in that. 0:07:30.800 --> 0:07:32.840 Sense, I want to be good for our clients. I've 0:07:32.840 --> 0:07:34.720 never been a league table guy. I want to focus 0:07:34.760 --> 0:07:36.800 on helping our clients in the way that we need 0:07:36.840 --> 0:07:39.320 for them to help. So, as an example, we're going 0:07:39.360 --> 0:07:42.040 to support a company from the emerging markets who's going 0:07:42.080 --> 0:07:44.360 to be buying a company the United States that we 0:07:44.400 --> 0:07:46.840 need to do from an ad advisory perspective, We're going 0:07:46.880 --> 0:07:49.239 to raise debt in the United States. That is exactly 0:07:49.240 --> 0:07:51.760 the type of transaction that we were going to focus on. Similarly, 0:07:51.760 --> 0:07:54.680 we're helping a company US company buy a company in 0:07:54.680 --> 0:07:57.480 the UK, so we'll use our expertise and our insights, 0:07:57.480 --> 0:08:00.320 our capabilities in the UK market to raise it capital 0:08:00.360 --> 0:08:02.960 as well. So league tables don't really look at them. 0:08:03.040 --> 0:08:05.440 It's really how do we serve our clients. Do we 0:08:05.440 --> 0:08:07.080 do it well and do we do it in such 0:08:07.120 --> 0:08:08.320 a way that we provide them value. 0:08:08.560 --> 0:08:10.680 But then the natural crawllery is that is if you're 0:08:10.680 --> 0:08:12.200 not sort of focused on being on the top five, 0:08:12.240 --> 0:08:13.960 my question would be is do you have the right 0:08:14.000 --> 0:08:16.960 scale to fill this heighthst dining HUDs in yards Because 0:08:17.080 --> 0:08:19.640 obviously it's not the same story in Asia as it 0:08:19.680 --> 0:08:20.000 is here. 0:08:20.000 --> 0:08:21.000 This is a very. 0:08:20.800 --> 0:08:23.480 Different capital markets to what's happening in Asia at the 0:08:23.560 --> 0:08:26.440 right at this moment in time. So are you again 0:08:26.480 --> 0:08:29.720 going back to fit for purpose right size on those 0:08:29.760 --> 0:08:30.360 teams here. 0:08:30.240 --> 0:08:31.360 In the US completely? 0:08:31.440 --> 0:08:34.199 In fact, as you look around this trading floor, it's 0:08:34.240 --> 0:08:36.560 pretty full. We've got about four hundred traders here. 0:08:36.640 --> 0:08:39.480 So you would say, no cuts in America in jobs 0:08:39.480 --> 0:08:40.160 in those businesses. 0:08:40.200 --> 0:08:41.920 I would say, we're fit for purpose, you know, and 0:08:41.960 --> 0:08:44.240 we will always you know, change will always react to 0:08:44.280 --> 0:08:47.480 It's a dynamic process. But we're fit for purpose because 0:08:47.480 --> 0:08:49.400 you have to really look at our operations are here 0:08:49.440 --> 0:08:51.160 to serve not only are you know what we do 0:08:51.200 --> 0:08:55.160 in the US, but globally. So if there is need 0:08:55.200 --> 0:08:57.720 to raise capital around the world, you've got to come 0:08:57.760 --> 0:09:01.000 to the US markets. So we serve hs BC as 0:09:01.120 --> 0:09:05.120 the center of an activity in the largest capital markets 0:09:05.120 --> 0:09:06.800 in the world. I would argue you can't be a 0:09:06.840 --> 0:09:09.560 global bank without being very relevant the United States. We 0:09:09.600 --> 0:09:11.920 are relevant to our clients in the United States. We're also 0:09:12.040 --> 0:09:14.040 relevant and very important for HSBC. 0:09:15.360 --> 0:09:18.839 To accelerate that pump that you've had in business. Do 0:09:18.880 --> 0:09:21.920 you think rate cuts will re accelerate that. I know 0:09:21.920 --> 0:09:24.280 you're on the table for limited cuts, but do you 0:09:24.280 --> 0:09:28.320 think a shift in the rate environment can materially. 0:09:27.800 --> 0:09:28.600 Shift the business. 0:09:29.280 --> 0:09:32.480 I think rate cuts will be important, but not determined, 0:09:32.600 --> 0:09:35.360 so I think yes, it's important to have rate cuts. Again, 0:09:35.400 --> 0:09:39.120 I'll go back to this predictability statement. If rate cuts come, 0:09:39.480 --> 0:09:43.000 it provides predictability. I think you'll see that capital markets 0:09:43.000 --> 0:09:43.840 grow even more. 0:09:44.280 --> 0:09:45.680 I think they're poised to do so. 0:09:45.920 --> 0:09:48.920 As I mentioned, lots of capital formation money sitting on 0:09:48.960 --> 0:09:50.960 the sidelines, but it wants to be. 0:09:50.840 --> 0:09:51.480 Put to work. 0:09:51.760 --> 0:09:54.920 So as soon as we can see predictability, I think 0:09:54.960 --> 0:09:57.480 you'll have even greater growth than the capital markets, both 0:09:57.520 --> 0:09:59.679 debt and equity. And I think we're well positioned to 0:09:59.679 --> 0:10:02.559 takevage of that. We've got lots of discussions going on, 0:10:03.000 --> 0:10:06.560 lots of sentiment is turning positive today, and they're looking 0:10:06.600 --> 0:10:08.679 for that opportunity to fully exploit. 0:10:09.400 --> 0:10:12.000 So we caught up with David Solomon. We wrote a 0:10:12.040 --> 0:10:14.040 story from him yesterday. We caught up with him in 0:10:14.120 --> 0:10:17.880 Paris is what can you tell me about Middle America, 0:10:17.920 --> 0:10:21.520 corporate and Middle America, because he says higher rates, higher 0:10:21.520 --> 0:10:23.520 for longer is beginning to bite, is it. 0:10:24.080 --> 0:10:27.360 I think it's beginning to bite, certainly for consumers. And 0:10:27.480 --> 0:10:29.960 you know, if you think about it, over the last years, 0:10:29.960 --> 0:10:33.640 we've had successive years of inflation, call it fifteen percent 0:10:33.679 --> 0:10:36.800 on a cumulative basis, Wages haven't gone up by fifteen percent. 0:10:36.880 --> 0:10:39.959 So yeah, it is biting for certain segments of the population, 0:10:40.080 --> 0:10:42.760 which is policymakers and as bankers we have to be 0:10:42.840 --> 0:10:45.840 very sensitive to. I think for our clients, they've adjusted, 0:10:46.200 --> 0:10:49.720 you know, again historically, these are rates that we have 0:10:49.920 --> 0:10:52.520 historically seen, you know, three and a half, four percent, 0:10:52.600 --> 0:10:55.360 five percent, and so they can adjust to those rates. 0:10:55.400 --> 0:10:57.520 I think they can do pretty well. So we don't 0:10:57.559 --> 0:10:59.280 see a lot of stress in our credit books. We 0:10:59.320 --> 0:11:02.559 don't see company he's giving up and saying that it's 0:11:02.600 --> 0:11:05.960 too difficult environment there, I think being a little cautious 0:11:06.040 --> 0:11:07.800 until they see rates and where they're going. 0:11:08.240 --> 0:11:10.079 But they're not stopping doing business. 0:11:10.120 --> 0:11:12.280 They're not stopping to grow, and they have a view 0:11:12.440 --> 0:11:15.480 that as long as they can manage in this raid environment, 0:11:15.679 --> 0:11:17.880 they know where the race are going, they know where 0:11:17.920 --> 0:11:21.480 the economy is going. They have policy predictability. I think 0:11:21.520 --> 0:11:22.160 they'll be okay. 0:11:22.480 --> 0:11:23.959 So let's talk about the element in the room. The 0:11:24.040 --> 0:11:25.840 chairman will be here. I have it on good authority. 0:11:25.880 --> 0:11:26.920 The chairman will be here today. 0:11:26.960 --> 0:11:30.400 A little bit later on, he's searching for his third 0:11:30.520 --> 0:11:35.160 CEO in seven years. Yif the three predecessors were Brits, 0:11:35.840 --> 0:11:36.520 is it time for. 0:11:36.480 --> 0:11:39.800 A yank time for you? I don't know. Thank you 0:11:39.880 --> 0:11:40.280 very much. 0:11:40.520 --> 0:11:43.680 As an American, I appreciate that, I'd say this one. 0:11:44.000 --> 0:11:47.360 Noel was a great boss no quinn. He and I 0:11:47.400 --> 0:11:50.120 took our respective roles about the same time, so we 0:11:50.200 --> 0:11:52.520 worked very closely. He was a great supporter of me. 0:11:52.640 --> 0:11:55.520 He was a great supporter of this franchise and really 0:11:55.600 --> 0:11:58.479 an inspiring boss to work for and did a fabuloushop. 0:11:59.440 --> 0:12:02.680 Mark Tucker is leading an effort along with the board. 0:12:03.000 --> 0:12:05.000 They're very focused on getting the right person. 0:12:05.400 --> 0:12:06.000 I don't think. 0:12:06.280 --> 0:12:10.440 I mean, you've been here, You've reconstructed this banking in 0:12:10.520 --> 0:12:13.280 North America. Do you think it is better culturally for 0:12:13.320 --> 0:12:17.320 the people of HSPC to have an internal person versus 0:12:17.360 --> 0:12:18.719 another new person come in. 0:12:18.840 --> 0:12:20.640 Yeah, and look, I think we've got a lot of 0:12:20.640 --> 0:12:23.960 good internal candidates. I think they're clearly as an advantage 0:12:23.960 --> 0:12:26.560 for having someone who knows the institution. I think the 0:12:26.559 --> 0:12:29.400 board's going to take that into consideration. They already had 0:12:29.400 --> 0:12:32.760 a succession plan worked out. They were very focused on 0:12:32.840 --> 0:12:36.720 making sure that they would have a very quick, efficient 0:12:37.160 --> 0:12:41.120 and very targeted succession plan. They're looking at both external 0:12:41.120 --> 0:12:44.640 and external candidates their decision obviously, but I think you 0:12:44.679 --> 0:12:47.000 know very important that you bring the right person in 0:12:47.200 --> 0:12:49.560 who has the right culture, the right mindset, and the 0:12:49.640 --> 0:12:50.640 right set of skills. 0:12:50.720 --> 0:12:52.320 Have you put your hat in the ring? How do 0:12:52.320 --> 0:12:54.400 you intimate to Tucker that you are interested? 0:12:54.600 --> 0:12:57.560 I love my job here, thank you very much for that. 0:12:58.120 --> 0:13:00.280 You know clearly got a lot more to do here, 0:13:00.320 --> 0:13:02.679 lots of opportunity, So I'm very content of what I'm 0:13:02.720 --> 0:13:03.840 doing today. 0:13:04.200 --> 0:13:06.120 Do you hope then that the next CEO has bigger 0:13:06.160 --> 0:13:09.000 ambitions for America? I mean, on quite a serious note, 0:13:09.200 --> 0:13:12.360 it is not you will you lobby hard to grow 0:13:12.400 --> 0:13:14.480 in size here in the US? Is that important in 0:13:14.520 --> 0:13:15.400 the next CEO for you? 0:13:15.840 --> 0:13:17.880 I think it's important that we have the right sized 0:13:17.880 --> 0:13:20.360 business here, Yeah, and that we get the resources, we 0:13:20.360 --> 0:13:22.040 get the attention, we get the support, which we have 0:13:22.120 --> 0:13:24.880 been I think it fits in however, with the overall 0:13:24.920 --> 0:13:26.880 strategy of the firm, So there's not going to be 0:13:26.880 --> 0:13:29.640 an America's only strategy. It's really about how do we 0:13:29.679 --> 0:13:31.640 fit in, how do we provide that value, how do 0:13:31.679 --> 0:13:35.520 we provide those capabilities that the firm needs to really 0:13:35.559 --> 0:13:37.840 be the truly global bank that it is, And so 0:13:37.960 --> 0:13:38.640 I think we can. 0:13:38.559 --> 0:13:40.840 Continue to be a very vital part of that. We 0:13:40.880 --> 0:13:41.760 will continue to grow. 0:13:41.960 --> 0:13:45.600 You mentioned innovation banking, which we're growing already very very quickly, 0:13:45.640 --> 0:13:48.719 and we're very pleased with that. When there is opportunities, 0:13:48.760 --> 0:13:51.480 when it fits the strategy, when it makes creates value 0:13:51.480 --> 0:13:53.160 for the company, that's how we'll grow. 0:13:53.280 --> 0:13:55.000 So if he topped you on the shoulder, would you 0:13:55.000 --> 0:13:55.800 be happy to say is? 0:13:56.440 --> 0:13:58.520 I would say, I'm very happy in my job here today, 0:13:58.559 --> 0:14:00.920 So thank you very much. I got lots to do 0:14:01.000 --> 0:14:02.760 and I'll be spending a lot of time with entertaining. 0:14:02.760 --> 0:14:04.880 Oh well, the fact listen, we have one debate going 0:14:04.920 --> 0:14:07.959 on in York right getting everybody back into offices, back 0:14:08.000 --> 0:14:11.600 into trading floors. Finra are fighting back saying that we're 0:14:11.600 --> 0:14:14.200 offering flexible working. You're probably one of the most flexible 0:14:14.240 --> 0:14:15.839 banks in the world. How do you see that for 0:14:15.960 --> 0:14:18.400 Wall Street? How important is it for Wall Street getting 0:14:18.440 --> 0:14:20.000 back in five days a week? 0:14:20.040 --> 0:14:20.720 What do you say to that? 0:14:21.000 --> 0:14:23.560 Yeah, so Finra has, as you mentioned, changed the rules 0:14:23.560 --> 0:14:25.480 and we're adjusting a court light. So and we're going 0:14:25.560 --> 0:14:26.880 to follow the rules like everyone else. 0:14:27.280 --> 0:14:29.120 We are a hybrid bank. 0:14:29.720 --> 0:14:31.480 What we did not want to do is to force 0:14:31.520 --> 0:14:34.280 people to come back simply at a decree. So what 0:14:34.360 --> 0:14:37.400 we did is we built a building, this building Hudson 0:14:37.480 --> 0:14:42.440 Yards in the financial capital of the world, which really 0:14:42.480 --> 0:14:46.480 reflects a lot of input from our employees of why 0:14:46.520 --> 0:14:48.800 they want to come to the office because we did 0:14:48.840 --> 0:14:50.560 this during COVID and we didn't know. 0:14:50.520 --> 0:14:52.760 If anybody ever wanted to come to the office again. 0:14:53.240 --> 0:14:56.240 And so we built something that is very I think 0:14:56.880 --> 0:14:58.440 conducive to people coming back. 0:14:58.560 --> 0:14:59.400 They want to come back. 0:14:59.640 --> 0:15:03.480 And so today our overall attendance levels are in eighty 0:15:03.520 --> 0:15:07.640 percent before we moved less than forty. We're running out 0:15:07.640 --> 0:15:09.760 of space very quickly, and luckily we just took some 0:15:09.800 --> 0:15:12.520 additional space in this building. So I think it we 0:15:12.600 --> 0:15:15.240 will adjust to the funeral rules. We'll make sure that 0:15:15.440 --> 0:15:16.960 whoever needs to be here five days a week will 0:15:16.960 --> 0:15:18.600 be here five day a week. But I don't want 0:15:18.600 --> 0:15:20.920 to decree people coming back. I want them to come 0:15:20.920 --> 0:15:23.200 back because they want to come back, and they do so, 0:15:23.280 --> 0:15:25.960 and they're productive, they feel good about it, and that's 0:15:26.080 --> 0:15:28.160 essentially the environment we have built today. 0:15:28.280 --> 0:15:30.320 Michael, thank you so much for joining me, and thank 0:15:30.360 --> 0:15:31.440 you for inviting us here to Hudson. 0:15:31.760 --> 0:15:33.040 Thank you very much for coming as well.