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Speaker 1: This is Bloomberg Daybreak Europe for this Thursday, the thirteenth

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Speaker 1: of April in London. Coming up today. Above and beyond,

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Speaker 1: the Chancellor tells Bloomberg the UK will beat the IMF's

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Speaker 1: growth forecast one and done. FED officials leaned towards another

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Speaker 1: hike as inflation edges down. Grand Designs, UK home sales

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Speaker 1: expected to pick up for the first time in a year,

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Speaker 1: Soft Bank to sell most of Ali Barber's steak leaked

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Speaker 1: world Bank recordings and a seven hundred million pounds inheritance

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Speaker 1: tax raid. Those of the stories we're looking at in

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Speaker 1: today's papers. And I'm Leanne Karen's Plus leading from the front.

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Speaker 1: JP Morgan tells its managing directors they need to be

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Speaker 1: in the office five days a week. That's all straight

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

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

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Speaker 1: on Apple, Spotify, the Bloomberg Business App and everywhere you

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Speaker 1: get your podcasts. Good morning, I'm Stephen Carroll. Here are

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Speaker 1: the stories we're following today. The International Monetary Fund is

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Speaker 1: too pessimistic about the UK economy. That's the message from

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Speaker 1: the Chancellor. Jeremy Hunt, who told Bloomberg he expects the

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Speaker 1: country to beat the IMF's anemic growth forecast. Our forecasts

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Speaker 1: are significantly better than the IMF forecast. But what I

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Speaker 1: should say is that last year we were the fastest

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Speaker 1: growing economy in the G seven. So we are very

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Speaker 1: confident about the UK's medium and longer term prospects, but

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Speaker 1: we don't pretend that we're not going through a difficult period.

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Speaker 1: The IMF expects the UK economy to shrink by point

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Speaker 1: three percent this year and expand by just one percent

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Speaker 1: next year. Speaking to Bloomberg's Maria today Oh the Chancellor

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Speaker 1: added that the UK still has work to do to

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Speaker 1: bring down inflation. That was a message echoed by the

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Speaker 1: Bank of England's Governor Andrew Bailey. Speaking earlier at the IMF,

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Speaker 1: Bailey said the BOE would not let concerns about financial

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Speaker 1: stability trump the fight against inflation. What we shouldn't be

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Speaker 1: doing is saying we've got such a problem with financial

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Speaker 1: stability that we have to insense aim off a decision

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Speaker 1: on monetary policy, which is taken with obviously with our

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Speaker 1: inflation target in primary view because of conditions and financial stability. However,

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Speaker 1: Bailey did caveat his comments, saying that financial stability will

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Speaker 1: help determine when the BOE stops quantitative tightening. Federal Reserve

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Speaker 1: rate setters are planning hikes even as their forecasters warn

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Speaker 1: of a recession ahead. Minutes of last month's meeting show

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Speaker 1: that most policymakers project rates will we reach five point

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Speaker 1: one percent this year. San Francisco FED president Mary Daily

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Speaker 1: says the outlook is still uncertain. Looking ahead, there are

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Speaker 1: good reasons to think the policy may have to tighten

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Speaker 1: more to bring inflation down, but there are also good

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Speaker 1: reasons to think that the economy may continue to slow

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Speaker 1: even without additional policy adjustments. Although Dailey doesn't currently vote

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Speaker 1: on policy, she's seen a close ally of Charge your

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Speaker 1: Own Powell. The FADS minutes were published after the latest

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Speaker 1: core inflation figures matched forecasts, slowing to zero point four

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Speaker 1: percent month on month in March I. Meanwhile, the European

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Speaker 1: Central banks Franca vilroda Gallo says they've nearly completed their

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Speaker 1: rate hiking journey. The French central banker says the ECB

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Speaker 1: may possibly have a little further to go. The deferred

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Speaker 1: effect of our past rate hikes will be more significant

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Speaker 1: then the one of our future decisions, and it will

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Speaker 1: then be key to stay the course for as long

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Speaker 1: as necessary. To put it differently, the sprint is over,

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Speaker 1: giving way to a more long distance run. Vilroda Gallo

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Speaker 1: is in Washington for the IMF and World Bank Spring

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Speaker 1: meetings as well. Like Mary Daily, he has one iron

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Speaker 1: core inflation, which he warned is proving to be increasingly sticky.

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Speaker 1: Bloomberg is that Apple assembled more than seven billion dollars

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Speaker 1: of iPhones in India in the last financial year, tripling

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Speaker 1: production after accelerating its move away from China. That means

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Speaker 1: that almost seven percent of iPhones now come from India,

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Speaker 1: significantly up from around one percent in twenty twenty one.

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Speaker 1: China's exports jumped unexpectedly in March, the first gain in

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Speaker 1: six months. It's a positive sign for the world second

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Speaker 1: largest economy, as exports rose by fourteen point eight percent

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Speaker 1: in dollar terms from a year earlier. Economists in Bloomberg

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Speaker 1: survey had forecasts that exports would drop by more than

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Speaker 1: seven percent. Imports meanwhile declined by a smaller than expected

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Speaker 1: one point four percent. And here in the UK, property

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Speaker 1: surveyors see sales pick up for the first time in

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Speaker 1: a year. Bloomberg's Human Pots reports after months of gloom

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Speaker 1: triggered by a shop jump in interest rates, the findings

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Speaker 1: from the Royal Institution of Chota Surveyors indicates some strength

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Speaker 1: returning to the residential property market. Rick says that the

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Speaker 1: housing market is stabilizing, signals that the Bank of England

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Speaker 1: may be near the end of its rate hiking cycle.

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Speaker 1: According to the survey House prices continue to fall in March,

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Speaker 1: though with a net balance of forty three percent of

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Speaker 1: respondents reporting a decline. However, that was less negative than

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Speaker 1: the reading of minus forty seven percent in February. Not

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Speaker 1: exactly what you would call buoyance, but a small improvements.

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Speaker 1: Latest date I from Nationwide Building started show prices dropping

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Speaker 1: over the last year by the most since two thousand

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Speaker 1: and nine. In London, I'm you and Pots Bloomberg Day

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Speaker 1: Break Europe. Those are some of our top stories this

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Speaker 1: morning on the program. Another story did catch my either

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Speaker 1: on the terminal nets. One that has been very highly

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Speaker 1: read to and this is a memo to JP Morgan's

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Speaker 1: managing directors telling them they must return to the office

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Speaker 1: five days a week. The memo says that their leaders

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Speaker 1: play a critical role in reinforcing their culture and running

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Speaker 1: their businesses, and they have to be visible to meet

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Speaker 1: with clients to teach and advise, and should be always

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Speaker 1: accessible for quote immediate feedback and in promptu meetings. This

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Speaker 1: is as the managing directors are being told they need

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Speaker 1: to lead by example and that's why they're being brought

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Speaker 1: back five days a week. Course this feeds into the

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Speaker 1: broader debate about flexible working after the pandemic and how

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Speaker 1: much people should be required to be in the office.

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Speaker 1: This is part of as JP Morgan sees at people

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Speaker 1: perhaps not managing to get into the office on the

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Speaker 1: number of days they're supposed to be in three days

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Speaker 1: for most people, but are reporting also pointing out that

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Speaker 1: JP Morgan is building its new headquarters on Park Avenue

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Speaker 1: in Midtown Manhattan. It's new sixty story skyscraper will have

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Speaker 1: yoga and cycling rooms, meditation space, as an abundance of

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Speaker 1: outdoor areas, and quote state of the art food hall

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Speaker 1: as well. So that could be part of the incentive

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Speaker 1: of trying to get people back into that building if

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Speaker 1: they're putting so much effort into that new headquarters in

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Speaker 1: New York, so an interesting to turn in the work

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Speaker 1: from home debate. I suppose from JP Morgan there, let's

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Speaker 1: bring you more now Bloomberg's interview with the UK Chancellor

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Speaker 1: j Hunt. He's told Maria today oh that he believes

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Speaker 1: the International Monetary funds bleak outlook is wide of the mark.

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Speaker 1: Take a lesson. I've been in frontline politics for nearly

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Speaker 1: twenty years now, and you are always fighting to get

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Speaker 1: the policies you want through. I mean right now, like

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Speaker 1: finance ministers in Germany, the United States, France, Japan, we're

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Speaker 1: all wrestling with how to improve productivity, how to get

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Speaker 1: our growth rates up, how to pay for public services.

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Speaker 1: And sure, these are the battles we all fight. But

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Speaker 1: I think what people recognize is that the UK economy

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Speaker 1: has had a difficult period but has also got tremendous resilience.

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Speaker 1: I give you one fat Maria. We are now the

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Speaker 1: third largest tech economy in the world after the United

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Speaker 1: States and China, and that is the area where we

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Speaker 1: think we've got tremendous potential going forward. And to be fair,

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Speaker 1: people said the city was going to disappear after Brexit,

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Speaker 1: and obviously has not been the case. But before we

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Speaker 1: get to that point. I do want to go into

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Speaker 1: the IMF forecast because they have upgraded the contraction, so

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Speaker 1: it's are going to be a severe this year. But

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Speaker 1: they also say for next year's one percent growth. Is

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Speaker 1: that acceptable to you? Is there a fundamental growth problem

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Speaker 1: in the UK? Or actually, do you believe all the

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Speaker 1: IMF is wrong? We're going to do better than this? Well,

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Speaker 1: we will do better than that. Our forecasts are significantly

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Speaker 1: better than the IMF forecast. But what I should say

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Speaker 1: is that last year we were the fastest growing economy

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Speaker 1: in the G seven. Way is there this gap then? Well,

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Speaker 1: I think you know it's not just me. I mean

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Speaker 1: the Joan finance minister says he's much more optimistic about

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Speaker 1: Germany's prospects. I think Joanny Ellen isaid the same about

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Speaker 1: the United States. So you say we will prove so

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Speaker 1: we are. We are very confident about the UK's medium

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Speaker 1: and longer term prospects. But we don't pretend that we're

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Speaker 1: going We're not going through a difficult period like everyone.

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Speaker 1: We're dealing with very high inflation which we have to

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Speaker 1: bring down. That means interest rates are higher. But you

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Speaker 1: look at an economy and you say what are the

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Speaker 1: sectors that are going to make the biggest difference that

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Speaker 1: are going to shape the twenty first century. And its technology,

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Speaker 1: it's life sciences, it's entertainment industries. Those are the industries

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Speaker 1: where Europe has the biggest, where the UK has the

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Speaker 1: biggest sector in Europe, and that gives us great hope

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Speaker 1: for the future. And obviously you've had a well difficult

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Speaker 1: job to inherit and as you say, it has been

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Speaker 1: a difficult year for the UK. But I wonder if

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Speaker 1: you believe all of this has come together, you're going

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Speaker 1: to see this economy grow. To me, what it sounds

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Speaker 1: is that you want to be in a good shape

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Speaker 1: for next year, and obviously the timing is around the election.

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Speaker 1: Do you want to see an early election or do

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Speaker 1: you want to see alite election in the year when

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Speaker 1: perhaps all of this will come into feration. If you

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Speaker 1: believe you're right, well, it's too soon to answer that question.

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Speaker 1: You don't want to put a season on the art community.

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Speaker 1: You know. What I would say is that if you

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Speaker 1: look at the projections not just by the IMF, but

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Speaker 1: by the official forecasts in the UK by the Bank

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Speaker 1: of England, they are that in a year's time, the

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Speaker 1: UK economy will really have turned a corner. And the

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Speaker 1: single reason for that is that we are predicted to

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Speaker 1: get inflation down to three percent or below, and that

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Speaker 1: is the single Do you believe you can hear that number,

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Speaker 1: because the IMF also says on the fiscal side they

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Speaker 1: have they have questions about some of your targets. Yeah,

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Speaker 1: but they also believe we can hear that number. And

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Speaker 1: I believe we can get inflation under control, but I

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Speaker 1: don't underestimate the challenge because just as in the United

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Speaker 1: States and the core inflation, underlying inflation is still between

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Speaker 1: four and six percent, so there's still a lot of

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Speaker 1: work to do. That was the UK answer Jeremy Hunt

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Speaker 1: speaking to Bloomberg's Maria Todao at the IMF and World

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Speaker 1: Bank Spring meetings in Washington. So interesting to see his

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Speaker 1: take on where he sees the UK economy going from here.

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Speaker 1: Up next, Sulf Bank to sell most of its Ali

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Speaker 1: baber Steak leaked World Bank recordings and a seven hundred

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Speaker 1: million pound inheritance tax raid. Now the paper review on

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Speaker 1: blue Bird Day Break Europe, the news you need to

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Speaker 1: know from to day's papers and Bloomberg Lean Garons is

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Speaker 1: with us with the details of those stories. Lean, good

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Speaker 1: morning to you. Let's start in the Financial Times, SoftBank

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Speaker 1: moves to sell down most of its Ali Baba stakes

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Speaker 1: andthing we're seeing moving markets this morning. Yes, indeed we've

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Speaker 1: really seen Ali Baba's stock slump after this report by

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Speaker 1: the FT today, So that is something that is moving

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Speaker 1: markets for Shure Stephen. Now, SoftBank is moving to sell

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Speaker 1: the majority of its stake in the Chinese internet giant

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Speaker 1: Ali Barber. And this is all according to the Financial Times. Now,

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Speaker 1: this mover has said to limit the Japanese company's exposure

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Speaker 1: to China and also raise a cash and this is

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Speaker 1: after the market downturn has hit the value of its

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Speaker 1: technology investments. Now SoftBank has sold more than seven billion

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Speaker 1: dollars in Ali Barber shares this year through prepaid forward contracts. Now,

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Speaker 1: that's after selling twenty nine billion dollars last year. According

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Speaker 1: to the newspaper, and SoftBank's billionaire founder, Massayoshi's son says

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Speaker 1: he wants to focus on a planned listing of its

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Speaker 1: chip design unit ARM And Now it's also been revealed

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Speaker 1: the New York Stock Exchange has reached a tentative agreement

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Speaker 1: over Arms proposed listing and that's all according to the

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Speaker 1: ft we did know that ARM once listed here in London. Well,

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Speaker 1: I mean there had been the high hopes that there

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Speaker 1: would be a listing in London. Yes, well, the idea

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Speaker 1: of them, of course going to New York something that

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Speaker 1: was very controversial here as well. At Leanlet's go to

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Speaker 1: the Guardian next. World Bank staff told to give special

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Speaker 1: treatment to the son of a Trump official. That's the

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Speaker 1: headline there. Yes, and this is an exclusive from the

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Speaker 1: Guardian newspaper and it reveals leaked recording so shared with

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Speaker 1: the newspaper by a whistleblower. The recording of a twenty

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Speaker 1: eighteen staff meeting suggests colleagues were encouraged by a senior

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Speaker 1: manager to support the son of David Malpass. Now officials

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Speaker 1: were told to give preferential treatment to Robert Malpass after

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Speaker 1: the US Treasury, through its support behind a thirteen billiard

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Speaker 1: dollar fund increase for the organization Now. Campaigners say the

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Speaker 1: case could undermine the World Bank submission, which includes combating

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Speaker 1: the erosion of public trust Now. The World Bank has

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Speaker 1: hit back and said it could not confirm the contents

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Speaker 1: of this recording, but added it was both false and

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Speaker 1: absurd to suggest that there was any connection between an

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Speaker 1: entry level higher and the multi billion dollar capital increase.

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Speaker 1: Now we do know David Malpass is the President of

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Speaker 1: the World Bank. He wasn't at the time, but it

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Speaker 1: was said if we listen to these lead to recordings

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Speaker 1: that he did get preferential treatment. Right, Okay, well that's

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Speaker 1: according to those recordings reported by the Guardian. Let's go

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Speaker 1: to the Telegraph then lean the headline there TMRC claus

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Speaker 1: back seven hundred million pounds in inheritance tax raid. So

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Speaker 1: this story basically talks about gifting when it comes to

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Speaker 1: inheritance tax. But we're going to get into that now.

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Speaker 1: Thousands of families have been caught out and this is

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Speaker 1: by complex inheritance tax rules. The taxman has clawed back

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Speaker 1: more than seven hundred million pounds Stephen in inheritance tax

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Speaker 1: and that's over the past of five years from over

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Speaker 1: two thousand families. That's a huge amount of money. And

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Speaker 1: according to data obtained by Telegraph Money and a Freedom

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Speaker 1: for Information request, the families had actually taken steps to

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Speaker 1: avoid paying the forty percent death charge. And this is

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Speaker 1: all according to the newspaper. The families did try to

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Speaker 1: escape by making gifts and delivering gifts to their family

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Speaker 1: members during their lifetime, but that didn't matter in the

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Speaker 1: end because they ended up having to pay the tax

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Speaker 1: regardless after HMRC said that they had breached its regulations

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Speaker 1: and a separate freedom of information requests made by The

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Speaker 1: Telegraph says that families had lost six hundred and fifty

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Speaker 1: million over the last three years and that's due to

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Speaker 1: falling foul of the seven year gifting rule. Because right now,

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Speaker 1: if you do gift money an inheritance tax, there's a

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Speaker 1: seven year rule, so you can't die seven years after

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Speaker 1: that money is gifted. And in this article it argues

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Speaker 1: that their age should be dropped down to give people

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Speaker 1: more chance. But there we are a raid on inheritance

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Speaker 1: tax and extremely complicated when it comes to the rules

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Speaker 1: surrounding it. This is Bloomberg Daybreak Europe, your morning brief

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Speaker 1: on the stories making news from London to Wall Street

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Speaker 1: Just say Alexa Play Bloomberg eleven thirty. I'm Stephen Carroll.

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Speaker 1: Join us again tomorrow for all the news you need

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