1
00:00:02,400 --> 00:00:06,760
Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

2
00:00:09,520 --> 00:00:12,719
Speaker 2: Good morning, I'm Nathan Hager and I'm Amy Morris. Here

3
00:00:12,760 --> 00:00:14,720
Speaker 2: are the stories we're following today.

4
00:00:15,040 --> 00:00:18,160
Speaker 1: We begin with the highly anticipated earnings report that Wall

5
00:00:18,160 --> 00:00:21,760
Speaker 1: Street has been waiting for from Nvidia because of its

6
00:00:21,840 --> 00:00:25,720
Speaker 1: leadership and AI training chips, and Vidia's market capitalization has

7
00:00:25,800 --> 00:00:29,960
Speaker 1: ballooned to around one point seven trillion dollars. Amy Wou

8
00:00:30,040 --> 00:00:33,240
Speaker 1: Silverman of RBC Capital Market says the report after today's

9
00:00:33,280 --> 00:00:35,280
Speaker 1: close could be critical for the markets.

10
00:00:35,680 --> 00:00:39,199
Speaker 3: Those results are what we saw kind of similar to

11
00:00:39,320 --> 00:00:42,520
Speaker 3: last year. It still has a while to run. However,

12
00:00:42,640 --> 00:00:45,479
Speaker 3: as let's say the results are quite disappointing, you can

13
00:00:45,520 --> 00:00:48,920
Speaker 3: see that call skew stuffed out of the market pretty quickly.

14
00:00:49,200 --> 00:00:51,599
Speaker 3: And then the question there becomes, you know, if this

15
00:00:51,640 --> 00:00:55,160
Speaker 3: is disappoint to two investors, what happens next? Do you

16
00:00:55,200 --> 00:00:57,240
Speaker 3: actually see a pickup in the downside. Do you see

17
00:00:57,240 --> 00:00:59,920
Speaker 3: a pickup and hedging that's a major inflection for the market,

18
00:01:00,440 --> 00:01:02,560
Speaker 3: or do you see people still say, you know, we

19
00:01:03,080 --> 00:01:03,840
Speaker 3: like these stocks.

20
00:01:04,080 --> 00:01:07,720
Speaker 1: RBC's Amy Wou Silverman now, according to options positioning, in

21
00:01:07,840 --> 00:01:11,360
Speaker 1: Vidia investors may have almost two hundred billion dollars riding

22
00:01:11,360 --> 00:01:14,199
Speaker 1: on today's results, prices for short term calls and puts

23
00:01:14,240 --> 00:01:16,559
Speaker 1: imply a more than ten percent move in the chip

24
00:01:16,560 --> 00:01:18,280
Speaker 1: maker's shares after the report.

25
00:01:18,959 --> 00:01:21,920
Speaker 2: Nvidia is, of course part of the Magnificent Seven which

26
00:01:21,920 --> 00:01:25,080
Speaker 2: have propelled equity markets to record hives, but now it

27
00:01:25,120 --> 00:01:29,039
Speaker 2: appears investors are cutting back. Goldman Sachs analyzed more than

28
00:01:29,040 --> 00:01:32,000
Speaker 2: seven hundred hedge funds with two point six trillion dollars

29
00:01:32,040 --> 00:01:35,320
Speaker 2: of gross equity positions. Six of the mags seven stocks

30
00:01:35,360 --> 00:01:38,080
Speaker 2: saw a decrease in exposure. The only one that saw

31
00:01:38,080 --> 00:01:39,520
Speaker 2: on increase was Amazon.

32
00:01:39,760 --> 00:01:42,959
Speaker 1: And speaking of Amazon, Amy, those shares are up one

33
00:01:43,000 --> 00:01:45,760
Speaker 1: percent this morning. The e commerce giant is about to

34
00:01:45,760 --> 00:01:48,880
Speaker 1: be added to the Dow Jones Industrial Average, and we

35
00:01:48,920 --> 00:01:51,280
Speaker 1: get the story from Bloomberg's Kimberly Adams.

36
00:01:51,400 --> 00:01:55,000
Speaker 4: Amazon will replace Walgreens Boots Alliance in the Dow on Monday.

37
00:01:55,120 --> 00:01:57,720
Speaker 4: The inclusion in the index is another milestone in the

38
00:01:57,720 --> 00:02:00,600
Speaker 4: retailer's rapid expansion. The company was found that in nineteen

39
00:02:00,680 --> 00:02:03,680
Speaker 4: ninety four as an online bookseller. It now sells goods

40
00:02:03,720 --> 00:02:07,280
Speaker 4: of all types and runs the world's largest cloud computing business.

41
00:02:07,320 --> 00:02:10,679
Speaker 4: In fact, Amazon is the second largest private sector employer

42
00:02:10,720 --> 00:02:13,560
Speaker 4: in the US behind Walmart. The absence of Amazon in

43
00:02:13,600 --> 00:02:16,160
Speaker 4: a slew of big tech firms from the Dow spurred

44
00:02:16,200 --> 00:02:19,440
Speaker 4: the blue Chip index to underperform peers. Last year, the

45
00:02:19,480 --> 00:02:22,400
Speaker 4: tech heavy Nasdaq one hundred climb more than fifty percent,

46
00:02:22,440 --> 00:02:26,240
Speaker 4: while the Dow rose thirteen percent. Kimberly Adams Bloomberg.

47
00:02:25,840 --> 00:02:29,120
Speaker 2: Radio Thanks Kim. While Amazon takes its place in the

48
00:02:29,120 --> 00:02:32,200
Speaker 2: blue Chip index, founder Jeff Bezos is selling more of

49
00:02:32,280 --> 00:02:35,520
Speaker 2: his stake in the company. The billionaire unloaded another fourteen

50
00:02:35,560 --> 00:02:38,440
Speaker 2: million shares worth about two and a half billion dollars.

51
00:02:38,800 --> 00:02:41,000
Speaker 2: That brings his total cash out to eight and a

52
00:02:41,080 --> 00:02:44,200
Speaker 2: half billion. Bezos announced a plan to sell up to

53
00:02:44,240 --> 00:02:47,600
Speaker 2: fifty million shares of Amazon earlier this month. He finished

54
00:02:47,600 --> 00:02:50,000
Speaker 2: the transaction in just nine trading days.

55
00:02:50,280 --> 00:02:52,640
Speaker 1: Keeping things in the c suite Amy City Group has

56
00:02:52,639 --> 00:02:55,600
Speaker 1: boosted the pay of CEO Jane Fraser by about six

57
00:02:55,720 --> 00:02:59,000
Speaker 1: percent to a total of twenty six million dollars. The

58
00:02:59,040 --> 00:03:02,280
Speaker 1: increase comes after Fraser initiated what's built as the largest

59
00:03:02,320 --> 00:03:05,400
Speaker 1: reworking of City Group in decades. The moves are designed

60
00:03:05,400 --> 00:03:08,519
Speaker 1: to propel the firm from a banking underdog to competitive

61
00:03:08,600 --> 00:03:11,200
Speaker 1: with its more profitable peers.

62
00:03:10,800 --> 00:03:14,040
Speaker 2: And staying in the banking sector. Shares of HSBC are

63
00:03:14,080 --> 00:03:16,880
Speaker 2: down more than seven percent in Europe. The bank reported

64
00:03:16,919 --> 00:03:20,640
Speaker 2: fourth quarter profit that plunged eighty percent. HSBC took a

65
00:03:20,680 --> 00:03:23,280
Speaker 2: three billion dollar impairment in the fourth quarter on its

66
00:03:23,280 --> 00:03:27,480
Speaker 2: holding in China's Bank of Communications. CEO Noel Quinn says

67
00:03:27,560 --> 00:03:29,799
Speaker 2: the payment will have minimal consequences.

68
00:03:30,040 --> 00:03:32,519
Speaker 5: I just want to make clear that has no impact

69
00:03:32,639 --> 00:03:36,240
Speaker 5: on our capital position of any significance. It does not

70
00:03:36,360 --> 00:03:40,600
Speaker 5: prohibit distribution because it's non capital impactful. It is a

71
00:03:40,840 --> 00:03:44,560
Speaker 5: technical accounting issue, and I also want to reiterate we

72
00:03:44,640 --> 00:03:48,360
Speaker 5: have strong confidence in the China economy. We believe there

73
00:03:48,360 --> 00:03:52,760
Speaker 5: are huge opportunities ahead, and we believe that our partnership

74
00:03:52,800 --> 00:03:55,640
Speaker 5: with BOCOM has been a good partnership for twenty years

75
00:03:55,840 --> 00:03:57,520
Speaker 5: and that status has not changed.

76
00:03:57,960 --> 00:04:01,560
Speaker 2: HSBC CEO Noel Quinn all so announced a two billion

77
00:04:01,640 --> 00:04:02,680
Speaker 2: dollars share buyback.

78
00:04:02,920 --> 00:04:05,160
Speaker 1: On the economic front, today, Amy, we may get more

79
00:04:05,200 --> 00:04:08,160
Speaker 1: clues on the future of US interest rates This afternoon.

80
00:04:08,200 --> 00:04:10,840
Speaker 1: The Federal Reserve releases minutes from its last meeting. We

81
00:04:10,920 --> 00:04:13,080
Speaker 1: get a preview from Bloomberg's Michael McKee.

82
00:04:13,200 --> 00:04:17,120
Speaker 6: January's FED meeting began a concentrated, if not coordinated effort

83
00:04:17,160 --> 00:04:20,000
Speaker 6: by Fed officials to push back against market pricing of

84
00:04:20,080 --> 00:04:22,920
Speaker 6: an early rate cut. The minutes of the meeting may

85
00:04:22,960 --> 00:04:26,279
Speaker 6: offer hints at why what did the policymakers see in

86
00:04:26,320 --> 00:04:30,279
Speaker 6: the economy then too much strength building inflation pressures, a

87
00:04:30,320 --> 00:04:33,640
Speaker 6: too tight labor market, or was it just an abundance

88
00:04:33,640 --> 00:04:37,200
Speaker 6: of caution? Caution that has proved out as January retail

89
00:04:37,240 --> 00:04:41,280
Speaker 6: sales came in week and consumer prices rose. The minutes

90
00:04:41,320 --> 00:04:44,320
Speaker 6: are always a bit outdated, since the Fed Policy meeting

91
00:04:44,360 --> 00:04:47,320
Speaker 6: took place three weeks ago, but in this case, clues

92
00:04:47,360 --> 00:04:50,880
Speaker 6: to the Fed officials thinking may help investors anticipate when

93
00:04:50,960 --> 00:04:55,240
Speaker 6: and under what conditions they will finally cut. Michael McKee, Bloomberg.

94
00:04:54,880 --> 00:04:58,000
Speaker 2: Radio, all right, thank you, Mike, and deal News this morning,

95
00:04:58,000 --> 00:05:01,000
Speaker 2: Bloomberg News has learned that buyout from Thomas Bravo is

96
00:05:01,080 --> 00:05:04,719
Speaker 2: weighing a sale of JD Power for about eight billion dollars.

97
00:05:05,080 --> 00:05:08,640
Speaker 2: JD Power uses data and analytics to produce rankings and

98
00:05:08,720 --> 00:05:13,680
Speaker 2: reviews across industries including automotive, financial services, and healthcare.

99
00:05:13,360 --> 00:05:16,320
Speaker 1: And a tie up between two supermarket giants could be

100
00:05:16,400 --> 00:05:19,640
Speaker 1: in trouble, sources tell Bloomberg News. The Federal Trade Commission

101
00:05:19,640 --> 00:05:21,960
Speaker 1: and a group of states are preparing to sue to

102
00:05:22,040 --> 00:05:25,400
Speaker 1: block the combination of Kroger and Albertsonz. We get the

103
00:05:25,440 --> 00:05:27,360
Speaker 1: details from Bloomberg's Charlie Pellett.

104
00:05:27,600 --> 00:05:30,520
Speaker 7: The suit is expected before February twenty eighth, when an

105
00:05:30,560 --> 00:05:33,480
Speaker 7: agreement not to close the deal between the companies and

106
00:05:33,560 --> 00:05:37,400
Speaker 7: the FDC expires. The sources say several states are expected

107
00:05:37,440 --> 00:05:41,960
Speaker 7: to join the suit, alongside the federal antitrust enforcers. A

108
00:05:42,080 --> 00:05:45,760
Speaker 7: Kroger spokeswoman says the company remains at ongoing discussions with

109
00:05:45,880 --> 00:05:49,480
Speaker 7: the FDC and state regulators, and that the merger will

110
00:05:49,560 --> 00:05:53,520
Speaker 7: lead to lower prices, more union jobs, and broader choices

111
00:05:53,640 --> 00:05:57,960
Speaker 7: for consumers in New York. Charlie Pellett Bloomberg Radio.

112
00:05:57,920 --> 00:06:00,920
Speaker 2: Thank you, Charlie. Turning to politics now, more financial trouble

113
00:06:00,960 --> 00:06:03,440
Speaker 2: could be on the way for Donald Trump. New York

114
00:06:03,480 --> 00:06:07,200
Speaker 2: Attorney General Laditia James says she is prepared to seize

115
00:06:07,240 --> 00:06:10,960
Speaker 2: the former president's assets. Bloomberg's Ed Baxter with that story.

116
00:06:11,400 --> 00:06:13,760
Speaker 8: James says she'll follow the money if he does not

117
00:06:13,920 --> 00:06:15,960
Speaker 8: come up with a three hundred and fifty million dollar

118
00:06:16,000 --> 00:06:19,200
Speaker 8: plus fine ordered by the judge. She says a decade

119
00:06:19,240 --> 00:06:19,719
Speaker 8: of crime.

120
00:06:19,839 --> 00:06:25,200
Speaker 9: Financial frauds are not victimless crimes. He engaged in this

121
00:06:25,720 --> 00:06:29,320
Speaker 9: massive amount of fraud, and it wasn't just a simple mistake,

122
00:06:29,400 --> 00:06:34,000
Speaker 9: a slight oversight. The variations were wildly exaggerated and the

123
00:06:34,040 --> 00:06:35,800
Speaker 9: extent of the fraud was staggering.

124
00:06:36,240 --> 00:06:39,120
Speaker 8: James, refuting the Trump claimed that there were no victims,

125
00:06:39,520 --> 00:06:43,760
Speaker 8: She says financial markets, banks and the citizens were ed.

126
00:06:43,839 --> 00:06:50,480
Speaker 8: Baxter Bloomberg Radio.

127
00:06:48,080 --> 00:06:49,360
Speaker 1: Time Now to take a look at some of the

128
00:06:49,400 --> 00:06:52,000
Speaker 1: other stories making news in New York and around the world,

129
00:06:52,000 --> 00:06:54,000
Speaker 1: and for that were joined by Bloomberg's Michael Bark.

130
00:06:54,000 --> 00:06:57,120
Speaker 10: Good morning, Michael, Good morning, Nathan. The FBI is joining

131
00:06:57,120 --> 00:07:01,040
Speaker 10: the investigation into how many violent crimes iams nationwide are

132
00:07:01,080 --> 00:07:04,720
Speaker 10: linked to a suspected multi state serial attacker taken into

133
00:07:04,800 --> 00:07:07,880
Speaker 10: custody in Arizona. The twenty six year old man may

134
00:07:07,920 --> 00:07:11,560
Speaker 10: have targeted sex workers. He allegedly told police about his

135
00:07:11,640 --> 00:07:14,440
Speaker 10: involvement in a string of assaults on women in the

136
00:07:14,440 --> 00:07:17,760
Speaker 10: Phoenix area, Florida, and as well as a deadly attack

137
00:07:17,840 --> 00:07:21,400
Speaker 10: in New York in MYPD Chief of Detectives Joe Kinney

138
00:07:21,720 --> 00:07:25,600
Speaker 10: says the victim killed in Manhattan was found inside a

139
00:07:25,680 --> 00:07:27,760
Speaker 10: hotel room earlier this month.

140
00:07:27,800 --> 00:07:30,400
Speaker 6: He informs them that he is wanted for homicide in

141
00:07:30,440 --> 00:07:32,720
Speaker 6: New York City and tells the cops that they should

142
00:07:32,760 --> 00:07:34,960
Speaker 6: google Solho fifty four hotel.

143
00:07:35,800 --> 00:07:40,600
Speaker 10: The suspect, rod Almunsouri is believed to have arrived in

144
00:07:40,640 --> 00:07:44,480
Speaker 10: New York City in late January. Later credit card use

145
00:07:44,520 --> 00:07:47,680
Speaker 10: syndicates the purchase of a plane ticket to Arizona, where

146
00:07:47,720 --> 00:07:51,880
Speaker 10: he allegedly committed at least two more crimes. Two men

147
00:07:51,920 --> 00:07:54,800
Speaker 10: have been charged with murder in last week's shooting after

148
00:07:54,800 --> 00:07:58,720
Speaker 10: the Kansas City Chiefs Super Bowl parade. According to court documents,

149
00:07:58,760 --> 00:08:01,520
Speaker 10: the men were strangers who pulled out guns and began

150
00:08:01,680 --> 00:08:05,240
Speaker 10: firing within seconds of starting an argument. One person was

151
00:08:05,360 --> 00:08:09,360
Speaker 10: killed and about two dozen others were injured. New York

152
00:08:09,400 --> 00:08:12,520
Speaker 10: City police are doubling down on stopping more pedestrians in

153
00:08:12,560 --> 00:08:16,840
Speaker 10: twenty twenty three than the year prior. Pedestrian stops fell

154
00:08:16,880 --> 00:08:19,080
Speaker 10: out of favor in New York City after a federal

155
00:08:19,160 --> 00:08:23,160
Speaker 10: courts in twenty thirteen ruled that the NYPD stop in

156
00:08:23,280 --> 00:08:27,760
Speaker 10: frisk practices were unconstitutional, but that trend appears to be

157
00:08:27,800 --> 00:08:30,840
Speaker 10: reversing under Mayor Eric Adams, who took office in twenty

158
00:08:30,880 --> 00:08:35,120
Speaker 10: twenty two. President Joe Biden's administration announced that more than

159
00:08:35,200 --> 00:08:39,040
Speaker 10: one hundred and fifty thousand borrowers will receive one point

160
00:08:39,080 --> 00:08:42,560
Speaker 10: two billion dollars in student loan forgiveness under a program

161
00:08:42,679 --> 00:08:46,640
Speaker 10: unveiled in January seeking to provide relief for Americans who

162
00:08:46,640 --> 00:08:49,640
Speaker 10: had been making payments for at least a decade. The

163
00:08:49,720 --> 00:08:52,520
Speaker 10: move wipes out loans for those who borrowed less than

164
00:08:52,520 --> 00:08:56,880
Speaker 10: twelve thousand dollars for their higher education. A new study

165
00:08:56,920 --> 00:09:00,000
Speaker 10: finds one in four people who attended college earned legs

166
00:09:00,040 --> 00:09:03,960
Speaker 10: less than high school graduates ten years later. Michael Isskwitz

167
00:09:04,040 --> 00:09:07,840
Speaker 10: is president of the HA Group, which conducted the survey.

168
00:09:08,240 --> 00:09:11,199
Speaker 11: Out of the about four thousand institutions in the study,

169
00:09:11,600 --> 00:09:14,040
Speaker 11: eight hundred and fifty two of them, or about twenty

170
00:09:14,080 --> 00:09:17,560
Speaker 11: two percent of colleges, so the majority of students earning

171
00:09:17,600 --> 00:09:19,720
Speaker 11: below a fifteen dollars minimum wage.

172
00:09:19,800 --> 00:09:23,160
Speaker 10: Michael Isskowitz with AHA says most of the people who

173
00:09:23,240 --> 00:09:26,960
Speaker 10: earn less than high school grads went to for profit colleges,

174
00:09:27,000 --> 00:09:31,640
Speaker 10: but about fourteen percent attended public colleges. Global News twenty

175
00:09:31,640 --> 00:09:33,480
Speaker 10: four hours a day and whenever you want it with

176
00:09:33,520 --> 00:09:36,320
Speaker 10: Bloomberg News Now, I'm Michael Barr. This is Bloomberg Nah.

177
00:09:36,520 --> 00:09:43,760
Speaker 1: Thanks Michael. Time now for the Bloomberg Sports Update, brought

178
00:09:43,800 --> 00:09:47,199
Speaker 1: to you by Tri State OUTI. Here's John stashawanks Nathan U.

179
00:09:47,280 --> 00:09:47,480
Speaker 10: Kohn.

180
00:09:47,559 --> 00:09:50,880
Speaker 12: Husky's dominant in winning last year's NCAA tournament. They've been

181
00:09:50,880 --> 00:09:53,640
Speaker 12: dominant this season. They went to Omaha running a fourteen

182
00:09:53,679 --> 00:09:55,880
Speaker 12: game winn Is break. Most recently, they won by twenty

183
00:09:55,960 --> 00:09:59,080
Speaker 12: eight over Marquette, who was ranked fourth in the country.

184
00:09:59,120 --> 00:10:01,880
Speaker 12: Yucon's number one. The vote this week was unanimous, but

185
00:10:01,960 --> 00:10:05,440
Speaker 12: the Creighton Blue Jays ranked fifteenth themselves. They've won twenty games,

186
00:10:05,480 --> 00:10:08,760
Speaker 12: and they crushed Yukon eighty five sixty six. They stormed

187
00:10:08,760 --> 00:10:11,840
Speaker 12: the court after the school's first ever win over the

188
00:10:11,840 --> 00:10:15,200
Speaker 12: team rank number one. The Yukon coaches Dan Hurley, you.

189
00:10:15,240 --> 00:10:18,400
Speaker 13: Haven't lost him two plus months, and this doesn't happen

190
00:10:18,400 --> 00:10:20,600
Speaker 13: to us very often. So yeah, I mean, we were,

191
00:10:20,800 --> 00:10:23,840
Speaker 13: you know, we were definitely stunned. This wasn't the good

192
00:10:23,840 --> 00:10:26,600
Speaker 13: game we expected. We knew this was a dangerous game

193
00:10:26,679 --> 00:10:29,600
Speaker 13: and their quality opponent and one of the better teams

194
00:10:29,600 --> 00:10:32,760
Speaker 13: in the country, but we didn't expect this to happen.

195
00:10:32,840 --> 00:10:35,480
Speaker 12: Next up for Creighton is a game Sunday at Saint John's,

196
00:10:35,520 --> 00:10:37,360
Speaker 12: the Red Storm of lost eight of ten, their players,

197
00:10:37,400 --> 00:10:41,240
Speaker 12: recently severely criticized by their coach Rick Patino. Saint John's

198
00:10:41,240 --> 00:10:44,600
Speaker 12: play tonight at Georgetown at the Garden. Rangers scored once

199
00:10:44,679 --> 00:10:47,400
Speaker 12: in each period, got forty one saves from Igor Sisterkin.

200
00:10:47,480 --> 00:10:50,360
Speaker 12: Won there eighth in a row, three to one over Dallas.

201
00:10:50,400 --> 00:10:53,480
Speaker 12: It's the Rangers' longest winning streets in twenty sixteen two

202
00:10:53,520 --> 00:10:55,960
Speaker 12: more wins. They tied the club record of ten. That's

203
00:10:55,960 --> 00:10:59,520
Speaker 12: happened twice nineteen seventy three and in nineteen forty when

204
00:10:59,520 --> 00:11:01,319
Speaker 12: they won this Stanley Cup. Has any new interrot fan

205
00:11:01,400 --> 00:11:03,959
Speaker 12: knows They've only won it once since They played tomorrow

206
00:11:04,000 --> 00:11:06,600
Speaker 12: at New Jersey. The Devils were in Washington, the Capitals

207
00:11:06,600 --> 00:11:09,959
Speaker 12: one sixty two. Alex Lovechkin scored twice Islanders of five

208
00:11:09,960 --> 00:11:13,680
Speaker 12: to four overtime win. At Pittsburgh. Matthew Slater has retired.

209
00:11:13,720 --> 00:11:16,480
Speaker 12: Special teams stand out for the Patriots, went to ten

210
00:11:16,600 --> 00:11:19,440
Speaker 12: Pro Bowls, who was a Pats captain thirteen of his

211
00:11:19,520 --> 00:11:23,720
Speaker 12: sixteen seasons. The one time met shortstop Ahmedrasario assigned with

212
00:11:23,760 --> 00:11:26,839
Speaker 12: Tampa Bay at Yankee spring training. All eyes on Aaron

213
00:11:26,920 --> 00:11:30,000
Speaker 12: Judges Big Tow heard it last June at Dodger Stadium.

214
00:11:30,040 --> 00:11:33,440
Speaker 12: Never had surgery, and Judge said yesterday that to avoid

215
00:11:33,520 --> 00:11:36,959
Speaker 12: flare ups, he'll need constant maintenance on the tow.

216
00:11:37,000 --> 00:11:38,080
Speaker 10: For the rest of his career.

217
00:11:38,440 --> 00:11:40,200
Speaker 12: John Stashaward, Bloomberg.

218
00:11:39,720 --> 00:11:43,520
Speaker 1: Sports Steaven All right, John, thank you. Now let's turn

219
00:11:43,520 --> 00:11:46,280
Speaker 1: back to markets and our focus on earnings. This morning,

220
00:11:46,280 --> 00:11:49,480
Speaker 1: we're watching shares of HSBC. They are lower by more

221
00:11:49,520 --> 00:11:52,640
Speaker 1: than seven percent in London, and that move comes after

222
00:11:52,679 --> 00:11:56,120
Speaker 1: the lender reported earnings showing a fourth quarter profit falling

223
00:11:56,240 --> 00:12:01,200
Speaker 1: eighty percent after unexpected charges on its holdings in China's

224
00:12:01,280 --> 00:12:06,000
Speaker 1: Bank of Communications Bowcom. HSBC also announced a two billion

225
00:12:06,040 --> 00:12:08,960
Speaker 1: dollars share buy back, but the bank CEO, Noel Quinn

226
00:12:08,960 --> 00:12:12,720
Speaker 1: says the Bowcom charge was a technical accounting issue and

227
00:12:12,840 --> 00:12:16,920
Speaker 1: won't impact capital. Noel Quinn spoke with Bloomberg's Francine Lockwhile

228
00:12:17,000 --> 00:12:18,679
Speaker 1: let's listen in to part of that conversation.

229
00:12:18,840 --> 00:12:21,160
Speaker 5: Now, Well, I'm very pleased with the fact that we've

230
00:12:21,160 --> 00:12:24,160
Speaker 5: been able to report thirty billion of PBT, which is

231
00:12:24,240 --> 00:12:27,680
Speaker 5: obviously a record, but also I'm very pleased with the

232
00:12:27,720 --> 00:12:29,880
Speaker 5: return on tangible equity we've been working hard for the

233
00:12:29,920 --> 00:12:32,640
Speaker 5: past four years to make sure we deliver mid teen's returns,

234
00:12:33,000 --> 00:12:35,840
Speaker 5: and we did that last year. You know, before material

235
00:12:35,880 --> 00:12:38,320
Speaker 5: notable items, we had a return on tangible equitcy of

236
00:12:38,320 --> 00:12:42,079
Speaker 5: fifteen point six percent. I'm also really pleased with the dividends.

237
00:12:42,080 --> 00:12:44,320
Speaker 5: We've been owned sixty one cents, which is the highest

238
00:12:44,320 --> 00:12:47,240
Speaker 5: dividend for the full year since two thousand and eight.

239
00:12:47,840 --> 00:12:50,840
Speaker 5: And we completed seven billion dollars a buyback, and we

240
00:12:50,880 --> 00:12:53,360
Speaker 5: announced another two billion dollar up to two billion dollar

241
00:12:53,400 --> 00:12:55,160
Speaker 5: buy back this year. So I'm really pleased with the

242
00:12:55,760 --> 00:12:59,199
Speaker 5: strong capital generation and I believe with the cet one

243
00:12:59,280 --> 00:13:01,959
Speaker 5: ratio of fourteen zo point eight percent, we've got strong

244
00:13:02,040 --> 00:13:06,680
Speaker 5: potential future capital distribution as well. In the fourth quarter,

245
00:13:06,760 --> 00:13:08,840
Speaker 5: we did have some noise in the numbers. We had

246
00:13:08,880 --> 00:13:12,600
Speaker 5: three principle items that pulled down the profit. The first

247
00:13:12,679 --> 00:13:15,880
Speaker 5: one was we rebooked the loss on sale of our

248
00:13:16,440 --> 00:13:20,200
Speaker 5: French operation that we completed that transaction. It's neutral for

249
00:13:20,240 --> 00:13:22,880
Speaker 5: the year because we took a credit on that in

250
00:13:22,960 --> 00:13:25,240
Speaker 5: Q one and we've taken a charge in Q four,

251
00:13:25,679 --> 00:13:28,400
Speaker 5: so that nets each other out and neutral. There was

252
00:13:28,400 --> 00:13:32,560
Speaker 5: an adjustment for hyperinflation in Argentina driven by the devaluation

253
00:13:32,640 --> 00:13:35,960
Speaker 5: that took place. That's really a technical issue. And then

254
00:13:36,000 --> 00:13:42,079
Speaker 5: the third issue technical issue was Bocon. We have had

255
00:13:42,080 --> 00:13:45,400
Speaker 5: had an investment in Bocon for twenty years. Every quarter

256
00:13:45,480 --> 00:13:48,520
Speaker 5: we have to do a valuation in use test. We

257
00:13:48,559 --> 00:13:51,520
Speaker 5: did that again this quarter, updated the model and it

258
00:13:51,559 --> 00:13:55,000
Speaker 5: compares the value in use to the carrying value, and

259
00:13:55,920 --> 00:13:58,520
Speaker 5: value in use dropped below and that would resulting in

260
00:13:58,520 --> 00:14:00,440
Speaker 5: a three billion charger. I just want to make clear

261
00:14:00,880 --> 00:14:04,920
Speaker 5: that has no impact on our capital position of any significance.

262
00:14:05,080 --> 00:14:09,160
Speaker 5: It does not prohibit distribution because it's non capital impactful.

263
00:14:09,559 --> 00:14:12,679
Speaker 5: It is a technical accounting issue. And I also want

264
00:14:12,720 --> 00:14:16,600
Speaker 5: to reiterate we have strong confidence in the China economy.

265
00:14:17,080 --> 00:14:20,880
Speaker 5: We believe there are huge opportunities ahead, and we believe

266
00:14:21,160 --> 00:14:24,119
Speaker 5: that our partnership with BOCOM has been a good partnership

267
00:14:24,160 --> 00:14:26,840
Speaker 5: for twenty years and that status has not changed.

268
00:14:27,920 --> 00:14:30,480
Speaker 14: No, given what you've just explained, are are there any

269
00:14:30,600 --> 00:14:33,680
Speaker 14: large asset sales ahead? Is there anything else that you're

270
00:14:33,720 --> 00:14:37,480
Speaker 14: thinking either that you need to sell off or actually

271
00:14:37,520 --> 00:14:40,640
Speaker 14: that there could be some kind of accounting concern.

272
00:14:42,280 --> 00:14:44,800
Speaker 5: Well, I think we've got the final lego of our

273
00:14:44,800 --> 00:14:46,800
Speaker 5: disposal of Canada to come at the end of Q

274
00:14:47,000 --> 00:14:51,640
Speaker 5: one that will be a big sale completion. We're on

275
00:14:51,760 --> 00:14:54,040
Speaker 5: track for that at the end of Q one. That

276
00:14:54,080 --> 00:14:57,760
Speaker 5: will allow us to as we've already announced first use

277
00:14:57,760 --> 00:14:59,960
Speaker 5: of proceeds, we would like to use the first use

278
00:15:00,160 --> 00:15:03,880
Speaker 5: proceeds as a special dividend of twenty one sense. We

279
00:15:04,000 --> 00:15:06,440
Speaker 5: continue to look at the portfolio to make sure the

280
00:15:06,480 --> 00:15:12,440
Speaker 5: portfolio is strategically correctly positioned and no businesses are underperforming.

281
00:15:12,840 --> 00:15:16,040
Speaker 5: But I think we've done the material transactions, but we

282
00:15:16,120 --> 00:15:19,360
Speaker 5: will continue to adapt and change if we feel as

283
00:15:19,360 --> 00:15:22,960
Speaker 5: though part of the portfolio is not strategic or is underperforming.

284
00:15:23,200 --> 00:15:26,120
Speaker 5: I also want to recap on Q four if you revert,

285
00:15:26,160 --> 00:15:30,800
Speaker 5: if you take the profit, the underlying before material notables,

286
00:15:31,280 --> 00:15:33,800
Speaker 5: Q four reports would have been a seven point three

287
00:15:33,840 --> 00:15:38,280
Speaker 5: billion PBT, which is well up on the prior quarter

288
00:15:38,360 --> 00:15:39,400
Speaker 5: in twenty twenty two.

289
00:15:40,240 --> 00:15:43,080
Speaker 14: No, just going back to some of your potential significant sales.

290
00:15:43,320 --> 00:15:46,400
Speaker 14: Are you also close to identifying any potential new bolt

291
00:15:46,400 --> 00:15:47,680
Speaker 14: on acquisitions?

292
00:15:49,160 --> 00:15:51,360
Speaker 5: We keep looking at boltons and we've done quite a few.

293
00:15:51,440 --> 00:15:53,880
Speaker 5: I was really pleased that we were with announced the

294
00:15:53,880 --> 00:15:58,200
Speaker 5: acquisition of Citybank's wealth business in China. That follows two

295
00:15:58,240 --> 00:16:02,760
Speaker 5: other investments we put into China recently, taking our shareholding

296
00:16:02,800 --> 00:16:05,400
Speaker 5: in our insurance joint venture from fifty percent to one

297
00:16:05,440 --> 00:16:08,680
Speaker 5: hundred percent and the securities joint venture from fifty percent

298
00:16:08,720 --> 00:16:11,840
Speaker 5: to ninety percent. So you can see our confidence in

299
00:16:11,920 --> 00:16:14,440
Speaker 5: China is still strong and we're invested in and we've

300
00:16:14,440 --> 00:16:17,800
Speaker 5: done three boltons there. We'll continue to look for boltons,

301
00:16:17,880 --> 00:16:24,080
Speaker 5: particularly in our wealth management business. We believe buying additional

302
00:16:24,160 --> 00:16:30,440
Speaker 5: product capability, specialism or distribution capability would be interesting, but

303
00:16:30,560 --> 00:16:33,440
Speaker 5: we'll only announce anything on that as and when we

304
00:16:33,520 --> 00:16:37,240
Speaker 5: got a transaction to complete.

305
00:16:38,320 --> 00:16:41,360
Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the

306
00:16:41,400 --> 00:16:44,920
Speaker 1: story's making news from Wall Street to Washington and beyond.

307
00:16:45,000 --> 00:16:48,040
Speaker 2: Look for us on your podcast, fed by six am

308
00:16:48,160 --> 00:16:52,320
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you

309
00:16:52,400 --> 00:16:53,520
Speaker 2: get your podcasts.

310
00:16:53,760 --> 00:16:56,480
Speaker 1: You can also listen live each morning starting at five

311
00:16:56,520 --> 00:16:59,160
Speaker 1: am Wall Street time on Bloomberg eleven three to zero

312
00:16:59,160 --> 00:17:02,600
Speaker 1: in New York, Bloomberg ninety nine one in Washington, Bloomberg

313
00:17:02,640 --> 00:17:05,679
Speaker 1: one oh sixty one in Boston, and Bloomberg ninety sixty

314
00:17:05,800 --> 00:17:06,719
Speaker 1: in San Francisco.

315
00:17:06,920 --> 00:17:10,440
Speaker 2: Our flagship New York station is also available on your

316
00:17:10,520 --> 00:17:16,000
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus.

317
00:17:16,119 --> 00:17:19,520
Speaker 1: Listen coast to coast on the Bloomberg Business app, SiriusXM,

318
00:17:19,640 --> 00:17:23,920
Speaker 1: the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.

319
00:17:23,800 --> 00:17:27,280
Speaker 2: And I'm Maybe Morris. Join us again tomorrow morning for

320
00:17:27,520 --> 00:17:30,200
Speaker 2: all the news you need to start your day right

321
00:17:30,240 --> 00:17:31,920
Speaker 2: here on Bloomberg Daybreak