WEBVTT - Hackers Hit Hedge Funds, Explosive Drone Found, Russia’s War Economy Pain

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the Bloomberg Davi Cate podcast. Good morning, It's Thursday,

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<v Speaker 2>the sixth of August. I'm Caroline hepkea in London.

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<v Speaker 3>And I'm Stephen Caroline Brussels. Coming up today, some of

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<v Speaker 3>the world's biggest hedge funds are targeted in a wave

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<v Speaker 3>of sophisticated cyber attacks.

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<v Speaker 2>Iran and o'man agree on a proposed route for shipping

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<v Speaker 2>through this strait of Homuz.

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<v Speaker 3>Plus the Kremlins squeeze. Vladimir Putin exerts growing pressure on

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<v Speaker 3>Russia's Central Bank as cracks emerged in the country's wartime economy.

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<v Speaker 2>Let's start with a roundup of our top stories.

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<v Speaker 3>Hackers have launched a major cyber campaign against some of

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<v Speaker 3>Wall Street's biggest money managers. Sources tell us the attacks

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<v Speaker 3>featured voice phishing known as vishing, to mimic people in

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<v Speaker 3>calls and messages in an effort to trick employees into

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<v Speaker 3>revealing sensitive information or granting access to internal say systems.

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<v Speaker 3>Hima Parmer is one of the reporters who broke the story.

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<v Speaker 4>We're seeing some of the world's biggest hedge funds attacked

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<v Speaker 4>in this attempt to end We're talking Citadel, Millennium point

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<v Speaker 4>seventy two, to Sigma, and you know these firms collectively

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<v Speaker 4>manage hundreds of billions of dollars. We do know that

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<v Speaker 4>Point seventy two sent a letter to investors telling them

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<v Speaker 4>that initial indicators were that there were no client information stolen,

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<v Speaker 4>and then to Sigma also said in a statement that

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<v Speaker 4>they have no indication of any impact to its systems.

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<v Speaker 3>Our Head Fund Reporterhema Parmer, when asked about Bloomberg's reporting,

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<v Speaker 3>spokespeople from Millennium point seventy two and Citadel declined to comment. Meanwhile,

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<v Speaker 3>sources tell us that Wall Street's financial regulator FINRA has

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<v Speaker 3>been in touch with member firms following the attempted breaches.

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<v Speaker 3>The campaign is the latest sign that hackers are using

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<v Speaker 3>increasingly sophisticated techniques to target financial firms.

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<v Speaker 2>Well. Just days after narrowly avoiding the collapse of his

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<v Speaker 2>hedge fund, Leopold ashen Brenner is back and making bets.

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<v Speaker 2>Situational Awareness has committed another four hundred million dollars to

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<v Speaker 2>a privately held company. The move follows the force sale

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<v Speaker 2>of most of its public stock portfolio to ken Griffin

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<v Speaker 2>Citadel after a barrage of margin calls. The AI focused

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<v Speaker 2>firms assets have plunged from forty five billion dollars at

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<v Speaker 2>the start of July to about ten billion dollars. The

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<v Speaker 2>turmoil also hit the wider hedge fund industry, with several

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<v Speaker 2>AI focus firms reporting steep losses in July.

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<v Speaker 3>Iran says that has reached an agreement with Oman on

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<v Speaker 3>a proposed route for shipping through the Strait of Jamus.

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<v Speaker 3>A joint statement between the two countries is currently being drafted.

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<v Speaker 3>According to Iran's Foreign Ministry spokesperson A smile Baguy, Bloomberg's

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<v Speaker 3>at Stewart Livingston Wala says this doesn't mean an instant

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<v Speaker 3>return of traffic through the strait.

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<v Speaker 5>So Iran has made it clear this doesn't mean shipping

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<v Speaker 5>is about to resume at a normal pace, and it

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<v Speaker 5>has made this rather ominous remark that that the timing woman,

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<v Speaker 5>depending on us actions done. Quite what that means, we

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<v Speaker 5>don't know. Doesn't mean they have to lift the blockade.

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<v Speaker 5>Does that mean they have to do other things? In

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<v Speaker 5>otherwise it seems to be conditional. However, relative so let's

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<v Speaker 5>say three or four days ago Stephaniel, step.

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<v Speaker 3>Forward, Livingston, Wilas Rons. Blomberg's coverage of the Middle East,

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<v Speaker 3>North Africa and Russia Oil held its lastes after a

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<v Speaker 3>Run announced the agreement, which it says doesn't involve the

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<v Speaker 3>United States. While fighting between the two sides as paused

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<v Speaker 3>for now, there's been no formal agreement to restart negotiations.

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<v Speaker 3>A number of other issues remain unresolved, including around the

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<v Speaker 3>nuclear program.

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<v Speaker 2>Now to some breaking news, Germany's commers Bank has reported

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<v Speaker 2>second quarter earnings and announced plans for a share buyback

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<v Speaker 2>up to one point two billion euros. Commers Bank's second

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<v Speaker 2>quarter net interest income came in just below estimates at

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<v Speaker 2>two point zero six billion euros. Second quarter operating profit

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<v Speaker 2>was a beat of one point three seven billion euros

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<v Speaker 2>versus estimates of one point three to two billion, and

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<v Speaker 2>net income for the second quarter was also a beat

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<v Speaker 2>at eight hundred and ninety eight million euros. The results

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<v Speaker 2>come after CEO Bettina Orlop confirmed Commerce Bank will soon

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<v Speaker 2>hold talks with UniCredit over the Italian lenders takeover approach.

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<v Speaker 3>A drone carrying explosives has been found near a Ukrainian

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<v Speaker 3>plane at an airport in Germany. Police said the device

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<v Speaker 3>at Leipzig Airport has been diffused with Germany's Interior Minister

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<v Speaker 3>Alexander dobrint says it represents a new type of danger.

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<v Speaker 6>Dawn and Sichtungen drone sightings, drone threats, including in a

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<v Speaker 6>hybrid context as something that we know from the past,

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<v Speaker 6>and a drone armed with an explosive at an airport

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<v Speaker 6>is a new threat. Look after Glinda befinded, desist and

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<v Speaker 6>NOIUSS scenario went just.

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<v Speaker 3>Speaking via translator, the German Interior minister added there will

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<v Speaker 3>be an investigation and hinted that foreign powers may have

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<v Speaker 3>been involved. The airport's used by the German Army and

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<v Speaker 3>NATO allies transport military goods. Western officials have accused Russia

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<v Speaker 3>and its proxies are staging dozens of attacks and other

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<v Speaker 3>incidents across Europe since the full scale of invasion of

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<v Speaker 3>Ukraine began more than four years ago. Russia has denied

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<v Speaker 3>any involvement in those incidents.

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<v Speaker 2>Finally, FIFA president Johnny Infantino has received internal backing at

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<v Speaker 2>a crisis meeting in Morocco. Football's governing body said in

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<v Speaker 2>a statement yesterday that senior staff and attendance at that

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<v Speaker 2>gathering reaffirmed their full support for his position. The news

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<v Speaker 2>comes after Infantino's plans to sell profits in the World

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<v Speaker 2>Cup through a commercial subsidiary drew widespread criticism. Canadian Prime

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<v Speaker 2>Minister Mark Carney says he no longer supports the FIFA boss.

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<v Speaker 7>The idea that proper governance is not to disclose to

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<v Speaker 7>your closest advisors, your chief operating officer, your fellow born members,

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<v Speaker 7>something of consequence that you're even considering, let alone proposing

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<v Speaker 7>that's fatal should be fatal, and you lose confidence in

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<v Speaker 7>that individual. They have their own procedures for making those determinations,

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<v Speaker 7>but certainly I don't have confidence in mister Infantino after

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<v Speaker 7>this point.

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<v Speaker 2>Canada's Mark Carney, speaking yesterday the country was one of

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<v Speaker 2>the World Cup hosts over the summer. FIFA said that

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<v Speaker 2>a letter had been sent to FIFA Council and member

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<v Speaker 2>associations apologizing for errors and committing to ensure they do

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<v Speaker 2>not happen again. Infantino is aiming to win a fourth

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<v Speaker 2>and final term in office at elections to be held

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<v Speaker 2>in March. Those are our top stories in terms of

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<v Speaker 2>the markets this morning. So Global stocks have lived after

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<v Speaker 2>five days a very strong gays your country. World Index

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<v Speaker 2>today is down two tenths of one percent. You've seen

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<v Speaker 2>the costs be plunging as much as five and a

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<v Speaker 2>half percent, currently down about three point eight percent, Hang

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<v Speaker 2>saying dropping two as notable decline as included the memory

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<v Speaker 2>maker sand Disk, and of course sk Heinex and Samsung

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<v Speaker 2>Electronics in South Korea, obviously such dominant stocks in that market.

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<v Speaker 2>Gold is about ten dollars higher this morning, four thousand

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<v Speaker 2>children sixty dollars. Europeans stop futures up two tenths of

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<v Speaker 2>one percent, Deutsche Telecom increasing its share by back news

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<v Speaker 2>this morning, and oil prices bring CRUD to seventy nine

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<v Speaker 2>dollars twenty down three tenths of one percent.

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<v Speaker 3>Stephen, In a moment, we'll bring you more on those

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<v Speaker 3>cyber attacks targeting hedge funds, plus why businesses in Russia

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<v Speaker 3>are no longer able to keep up with the higher

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<v Speaker 3>wages driven by the country's wartime economy. But another story

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<v Speaker 3>that we've been reading this morning, in case you are

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<v Speaker 3>looking for an incongruous matching of destination and food, ra

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<v Speaker 3>Avitasin has been writing about the growth and I suppose

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<v Speaker 3>popularity of gelato in Edinburgh. She starts with the wonderful

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<v Speaker 3>line Scotland has never followed logic when it comes to food,

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<v Speaker 3>and goes on to report that despite being one of

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<v Speaker 3>the coldest capital cities in Europe, Edinburgh has become a

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<v Speaker 3>hub for gelato, now more than a dozen gelato parlors

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<v Speaker 3>in the city, partly driven by the number of tourists,

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<v Speaker 3>of course, that passed through Edinburgh, but also Laura points

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<v Speaker 3>out that Scotland is a long history with ice cream,

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<v Speaker 3>dating back to the arrival of Italian immigrants at the

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<v Speaker 3>start of the twentieth century. Such gelato scene as a

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<v Speaker 3>natural progression, and local places like Mary's Milk Bar I

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<v Speaker 3>have given it a Scottish twist. Flavors like fried banana

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<v Speaker 3>in butter and licorice caramel. Plenty of recommendations to pick

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<v Speaker 3>up there. I've always wondered why I've had such excellent

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<v Speaker 3>Italian food in Edinburgh, and now I know.

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<v Speaker 2>Yeah, absolutely, I love that well. And also this is

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<v Speaker 2>the month of the Fringe, isn't it the common massive

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<v Speaker 2>comedy festival at tracks you know, thousands of tourists. No,

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<v Speaker 2>I love that idea. I mean there are lots of

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<v Speaker 2>such a lottery as popping up in London, although I

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<v Speaker 2>must see the one on my high street. It's just

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<v Speaker 2>shut down. I'm very sad about. But yeah, how delightful.

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<v Speaker 2>What's your favorite flavor of ice cream?

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<v Speaker 3>Sim caw oh, startled caramel?

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<v Speaker 2>Yeah, greatly love it.

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<v Speaker 3>I think it's very exciting. I don't know if I

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<v Speaker 3>were trying the liquorice caramel version.

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<v Speaker 6>We'll see.

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<v Speaker 2>Well, yeah, I mean, in fact, we've tried soy and

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<v Speaker 2>ketch up ice creams avant garde in London. There you go.

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<v Speaker 3>Very good subjects Mayor is much further discussion, but let's

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<v Speaker 3>turn back to some of the new stories, even covering

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<v Speaker 3>this morning and more on that wave of cyber attacks

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<v Speaker 3>targeting hedge funds. Matthew Thomas lead's our team covering investing

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<v Speaker 3>in Asia. He joins us now for more on the story. Matthew,

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<v Speaker 3>what do we know then about these attacks? Who was

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<v Speaker 3>affected and what information was accessed?

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<v Speaker 8>So we have learnt that some of the biggest hedge

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<v Speaker 8>funds in the world were targeted and these attacks so

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<v Speaker 8>names like zero point seventy two, Millennium, Citadel and two

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<v Speaker 8>Sigma these are the names we know were targeted. Of course,

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<v Speaker 8>it's possible some smaller hedge funds were also targeted, but

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<v Speaker 8>at the very least they started with the big fish.

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<v Speaker 8>VISEA are some of the biggest hedge funds, pod shops

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<v Speaker 8>and quants in the world. They have the ability at

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<v Speaker 8>times to move markets, and yeah, this will be causing

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<v Speaker 8>a lot of alarm, particularly for smaller hedge funds who

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<v Speaker 8>perhaps don't have the same level of cyber defenses. So

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<v Speaker 8>what we know about these attacks is, in some ways

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<v Speaker 8>there it kind of sounds reassuringly old fashioned. What the

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<v Speaker 8>AI was doing in this case was really picking up

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<v Speaker 8>the phone and trying to worm its way into getting information.

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<v Speaker 8>Where it becomes more high tech is it was doing

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<v Speaker 8>that by impersonating real human beings that work at these companies.

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<v Speaker 8>So it may have personated impersonated executives after listening to

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<v Speaker 8>interviews or watching YouTube videos of those guys. It may

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<v Speaker 8>have impersonated staff on the help desk after making a

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<v Speaker 8>series of phone calls and recording them, and likely it

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<v Speaker 8>did both. But you know, whatever approach it took, it

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<v Speaker 8>attempted through these phone calls to kind of escalate itself

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<v Speaker 8>up a chain and get some sensitive information. You know,

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<v Speaker 8>as I say, it's quite an old fashion. This is

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<v Speaker 8>social engineering, right, People were trying to do this before

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<v Speaker 8>computers even existed. The difference in this case is when

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<v Speaker 8>you can automate it, you can do it thousands, tens

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<v Speaker 8>of thousands of times a day, and your attack surface

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<v Speaker 8>is absolutely huge because you can target so many different

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<v Speaker 8>funds at once.

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<v Speaker 2>Yeah, and it's also that we were worried about the

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<v Speaker 2>idea of mimicry being so much easier now, but this

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<v Speaker 2>is perhaps a real life example of that actually happening.

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<v Speaker 2>And how prepared Matthew, do you think that the industry

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<v Speaker 2>actually is for attacks like these?

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<v Speaker 8>So, I mean, the good news here is the big

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<v Speaker 8>funds we know were targeted. It looks like the score

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<v Speaker 8>is one nil to them so far, right. Zero point

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<v Speaker 8>seventy Too told investors it was attacked, but it said

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<v Speaker 8>no client information was stolen. Two Sigma said it thwarted

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<v Speaker 8>an attempt to access sensitive information. Big funds like these

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<v Speaker 8>have world class cybersecurity teams, so they will be as

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<v Speaker 8>prepared as anyone can be at this point. You know,

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<v Speaker 8>the reality is, with these programs making such historic advances

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<v Speaker 8>in their ability is always a work in progress, right.

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<v Speaker 8>There's no kind of static sense in which the firm

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<v Speaker 8>can be prepared for any level of cyber attack. They're

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<v Speaker 8>always having to improve and kind of buston up their defenses.

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<v Speaker 8>But these guys at least will be among the best prepared.

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<v Speaker 8>As I said a moment ago, it's for smaller funds.

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<v Speaker 8>They are the guys that will be looking at this

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<v Speaker 8>story and really starting to worry. A lot of hedge

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<v Speaker 8>funds have just a handful of people working for them,

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<v Speaker 8>and if you're running a hedge fund, you're probably spending

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<v Speaker 8>almost all of your time thinking of trade ideas, right,

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<v Speaker 8>thinking of arbitrage, thinking of economic data. This is a

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<v Speaker 8>reminder that the reality is for anyone who wants to

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<v Speaker 8>set up and manage a hedge fund, there's a lot

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<v Speaker 8>more you need to do than simply picking stocks to buy.

0:13:24.720 --> 0:13:28.040
<v Speaker 8>Cybersecurity right now is going to be front and center

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<v Speaker 8>of how you kind of de risk yourself from some

0:13:32.760 --> 0:13:34.280
<v Speaker 8>of the stuff that's happening in the world.

0:13:34.760 --> 0:13:36.840
<v Speaker 3>Yeah, a really fascinating story, Matthew, thanks for bringing his

0:13:36.880 --> 0:13:38.960
<v Speaker 3>details up at Matthew Thomas there, who leads our team

0:13:39.000 --> 0:13:42.880
<v Speaker 3>covering investing in Asia, stay with us more from Bloomberg

0:13:42.960 --> 0:13:44.920
<v Speaker 3>Daybreak Europe coming up after this.

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<v Speaker 2>Now, as Russia's full scale invasion of Ukraine extends for

0:13:50.440 --> 0:13:53.800
<v Speaker 2>a fifth year, Russian businesses can no longer afford to

0:13:53.880 --> 0:13:58.080
<v Speaker 2>keep pace with the Kremlin's war machine in the wage race.

0:13:58.440 --> 0:14:01.520
<v Speaker 2>Years of acute labor shortage have pushed salaries well ahead

0:14:01.559 --> 0:14:05.160
<v Speaker 2>of productivity growth. Now, with the wartime economic boom at

0:14:05.200 --> 0:14:09.520
<v Speaker 2>an end, businesses are slashing costs. Tony Happen leads Bloomberg's

0:14:09.559 --> 0:14:13.280
<v Speaker 2>team covering Russia's economy, and he's with us for more. Tony,

0:14:13.280 --> 0:14:15.720
<v Speaker 2>good to speak to you. What has happened to wages

0:14:15.760 --> 0:14:17.640
<v Speaker 2>in Russia during the war.

0:14:18.559 --> 0:14:21.000
<v Speaker 1>Well, as you've noted, there's been a wage boom, and

0:14:21.040 --> 0:14:23.600
<v Speaker 1>that's a spiral that's largely been driven by the huge

0:14:23.640 --> 0:14:27.560
<v Speaker 1>demand of the military and defense industries for additional people,

0:14:27.640 --> 0:14:32.240
<v Speaker 1>mainly men. Each month, something like thirty forty thousand people

0:14:32.480 --> 0:14:34.440
<v Speaker 1>have to be recruited into the army in order to

0:14:34.480 --> 0:14:37.840
<v Speaker 1>just fight in Ukraine. And then there's defense industries sucking

0:14:37.880 --> 0:14:42.800
<v Speaker 1>in talent anything from welders to computer programmers, and that's

0:14:42.840 --> 0:14:45.280
<v Speaker 1>made it very difficult for the civilian industries to compete.

0:14:45.320 --> 0:14:47.680
<v Speaker 1>So they've had to raise wages, and that was fine

0:14:47.720 --> 0:14:51.000
<v Speaker 1>while the economy was growing, while there was this war

0:14:51.120 --> 0:14:53.680
<v Speaker 1>inspired boom as the government spent so much money to

0:14:53.680 --> 0:14:57.240
<v Speaker 1>support its war in Ukraine. But that's now petered out

0:14:57.320 --> 0:14:59.920
<v Speaker 1>and they're finding that they can't compete, and the more

0:15:00.840 --> 0:15:04.120
<v Speaker 1>inefficient businesses are facing a struggle now either to recruit

0:15:04.160 --> 0:15:06.960
<v Speaker 1>people or to cut back on their production because they

0:15:06.960 --> 0:15:08.320
<v Speaker 1>can't find the people they need.

0:15:08.720 --> 0:15:12.200
<v Speaker 3>So what's the bigger consequence of that then for Russia's economy.

0:15:12.240 --> 0:15:15.600
<v Speaker 3>If businesses can't keep up with the wage demands, well.

0:15:15.480 --> 0:15:18.040
<v Speaker 1>It becomes a vicious cycle. Really. I mean, part of

0:15:18.040 --> 0:15:19.960
<v Speaker 1>the problem, and part of the reason that the Bank

0:15:20.000 --> 0:15:22.920
<v Speaker 1>of Russia has been high king as interest rates is

0:15:22.960 --> 0:15:26.360
<v Speaker 1>that the bank was trying to push inefficient businesses basically

0:15:26.520 --> 0:15:28.920
<v Speaker 1>to become either more efficient or go out of business

0:15:29.440 --> 0:15:34.520
<v Speaker 1>and let labor transfer to more efficient workers more efficient work.

0:15:34.640 --> 0:15:38.000
<v Speaker 1>But the government has been subsidizing a lot of industries

0:15:38.000 --> 0:15:40.320
<v Speaker 1>that they consider to be important, and so that mechanism

0:15:40.360 --> 0:15:42.720
<v Speaker 1>hasn't been as effective as the Bank of Russia wanted.

0:15:43.040 --> 0:15:44.960
<v Speaker 1>So you've got high interest rates which make it very

0:15:44.960 --> 0:15:48.840
<v Speaker 1>difficult for businesses to invest in more efficient productivity, and

0:15:48.880 --> 0:15:50.880
<v Speaker 1>at the same time, they can't get any more out

0:15:50.880 --> 0:15:53.600
<v Speaker 1>of their workers. So the medium term perspective for the

0:15:53.640 --> 0:15:58.040
<v Speaker 1>economy is little if no growth. That's very difficult for

0:15:58.080 --> 0:16:00.320
<v Speaker 1>Vladimir boosing when he's still spending so much money the war.

0:16:01.720 --> 0:16:05.880
<v Speaker 2>And this is analysis by Bloomberg Economics of what is

0:16:05.880 --> 0:16:10.280
<v Speaker 2>happening in this wartime economy. And so we are also

0:16:10.400 --> 0:16:14.000
<v Speaker 2>reporting at the same time that there is fresh pressure

0:16:14.320 --> 0:16:18.359
<v Speaker 2>from President Putin on Russia's Central Bank governor Alvira and Abulina.

0:16:18.680 --> 0:16:21.280
<v Speaker 2>This is to cut interest rates.

0:16:22.120 --> 0:16:25.160
<v Speaker 1>Yes, and professionally because of that, so many businesses feel

0:16:25.200 --> 0:16:28.040
<v Speaker 1>that they're in this vice between low growth and very

0:16:28.120 --> 0:16:30.040
<v Speaker 1>high interest rates, which make it hard for them to

0:16:30.080 --> 0:16:35.120
<v Speaker 1>invest and to actually keep servicing their debts. And Putain

0:16:35.360 --> 0:16:37.880
<v Speaker 1>historically has not put much pressure on the Bank of

0:16:37.920 --> 0:16:41.520
<v Speaker 1>Russia government via a Nabulina. But what we've reported, what

0:16:41.520 --> 0:16:43.880
<v Speaker 1>we've noticed is that the most recent decision in July,

0:16:43.960 --> 0:16:46.400
<v Speaker 1>there was a change of tone. A couple of times

0:16:46.440 --> 0:16:48.880
<v Speaker 1>before that decision, he was signaling quite clearly that he

0:16:49.080 --> 0:16:53.000
<v Speaker 1>liked interest rates to be lower, and parlsymakers did cut

0:16:53.040 --> 0:16:56.000
<v Speaker 1>the base rate by twenty five basis points to fourteen percent,

0:16:56.560 --> 0:16:59.720
<v Speaker 1>and much of their explanation for that was based on

0:16:59.760 --> 0:17:02.600
<v Speaker 1>things they hadn't previously relied on. So it seems like

0:17:03.240 --> 0:17:06.200
<v Speaker 1>too many handless at least, that the bank's somewhat blinked

0:17:06.200 --> 0:17:10.399
<v Speaker 1>here and that other data like inflation and growth didn't

0:17:10.440 --> 0:17:13.679
<v Speaker 1>really justify that decision, And so many people are watching

0:17:13.720 --> 0:17:15.960
<v Speaker 1>to see what they'll do in September at the next meeting,

0:17:16.480 --> 0:17:17.760
<v Speaker 1>to see there's a similar move.

0:17:18.880 --> 0:17:22.280
<v Speaker 3>Interesting because of course, I Varianableena has been such a

0:17:22.400 --> 0:17:26.119
<v Speaker 3>kind of important figure in the Russian management of the

0:17:26.119 --> 0:17:29.240
<v Speaker 3>economy and has you know, attracted a lot of attention

0:17:29.359 --> 0:17:32.120
<v Speaker 3>because of the changes that she's had to make leading

0:17:32.240 --> 0:17:35.480
<v Speaker 3>Russia's center bank during this period as well. I mean,

0:17:35.720 --> 0:17:38.680
<v Speaker 3>is this a change and opinion of her in her position.

0:17:39.240 --> 0:17:41.440
<v Speaker 1>Well, we've got some source report in that indicates that

0:17:41.520 --> 0:17:43.840
<v Speaker 1>she might have accepted some of the arguments that have

0:17:43.880 --> 0:17:45.760
<v Speaker 1>been put to her, that the bank can show a

0:17:45.800 --> 0:17:48.520
<v Speaker 1>bit more flexibility on inflation. It's got a long standing

0:17:48.560 --> 0:17:52.439
<v Speaker 1>target of four percent, which hasn't it for years, and

0:17:52.480 --> 0:17:54.440
<v Speaker 1>the arguments that were being put to the bank as well.

0:17:54.600 --> 0:17:57.840
<v Speaker 1>We're in a wartime situation, the economy is flatlining, you know,

0:17:57.880 --> 0:18:00.840
<v Speaker 1>pay less attention to inflation for a bit and use

0:18:00.920 --> 0:18:03.840
<v Speaker 1>rape so that companies can survive. And it was notable

0:18:03.880 --> 0:18:05.760
<v Speaker 1>that last month the Bank did in fact raise their

0:18:05.760 --> 0:18:08.800
<v Speaker 1>inflation forecasts from four and a half five and a

0:18:08.840 --> 0:18:10.920
<v Speaker 1>half to six and seven percent by the end of

0:18:10.920 --> 0:18:13.080
<v Speaker 1>the year, and that was another signal really I think

0:18:13.119 --> 0:18:16.119
<v Speaker 1>for many people that this argument of ali need to

0:18:16.160 --> 0:18:19.720
<v Speaker 1>ease rates was being one despite some of the data

0:18:20.080 --> 0:18:22.560
<v Speaker 1>which would suggest that it wasn't really justified.

0:18:25.000 --> 0:18:27.440
<v Speaker 3>Thanks for listening to Bloomberg Daybreak Europe.

0:18:27.560 --> 0:18:30.120
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0:18:30.160 --> 0:18:32.400
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