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Speaker 1: Good morning. It's Friday, the eighth of September here in London.

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Speaker 1: This is the Blueberg Day Recurate podcast. I'm Caroline Hepki.

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Speaker 2: And I'm Stephen Carroll. Coming up today, The Goldman Sachs

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Speaker 2: CEO David Solomon says media attacks have reduced him to

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Speaker 2: a caricature.

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Speaker 1: The White House says that Joe Biden has no plans

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Speaker 1: to sit down with the Chinese premiere at the G

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Speaker 1: twenty summits.

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Speaker 2: Plus, we bring you our exclusive reporting on the Bogus

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Speaker 2: plane parts supplier may have faked LinkedIn profiles for its

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Speaker 2: employees too.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 2: Goldban Sax CEO David Solomon says he feels he's been

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Speaker 2: caricatured by some recent press coverage. Speaking to CNBC, the

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Speaker 2: head one of Wall Street's biggest banks says, quote, it's

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Speaker 2: not fun watching some of the personal attacks in the media.

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Speaker 2: Bloomberg's Cristpace reports.

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Speaker 3: A failed retail venture, djaying, and heavy use of the

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Speaker 3: corporate jet. Those are just some of the criticisms of

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Speaker 3: David Solomon appearing in the business press. That's despite the

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Speaker 3: Goldman CEO scoring record annual profits. The bank's stock has

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Speaker 3: climbed almost fifty percent since Solomon took the helm, Yet

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Speaker 3: even rival CEOs casually point out the bank's major attentions,

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Speaker 3: Solomon says his focus remains on the firm's performance. He

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Speaker 3: put the criticism down to strategic changes at the firm

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Speaker 3: and declines in bonuses in London Crispit Bloomberg Radio Well.

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Speaker 1: The comments from Solomon come as Goldman is said to

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Speaker 1: be planning to dismiss its worst performers as soon as

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Speaker 1: next month. The lender had paused its annual cull of

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Speaker 1: its workforce during the pandemic. The Financial Time says that

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Speaker 1: the bank's staff cuts will be at the lower end

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Speaker 1: of its usual one to five percent range.

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Speaker 2: Apple is looking to stave off a crisis in China,

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Speaker 2: just days before the launch of its next iPhone, the

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Speaker 2: product unveiling their risks being overshadowed by a growing government

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Speaker 2: ban in Apple's largest market outside of the US. The

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Speaker 2: news sent Apple's shares sliding, erasing one hundred and ninety

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Speaker 2: billion dollars from the firm's market value in just two days.

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Speaker 2: MAP Signal's chief investment strategist Alec Jung says a key

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Speaker 2: concern is the resurgence in Chinese nationalism by consumers.

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Speaker 4: There's no question that part of the negative inferences that

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Speaker 4: are swirling around right now is this idea that Apple

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Speaker 4: gets caught up in a nationalist rivalry between the US

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Speaker 4: and China. If iPhones, for example, were to become stigmatized

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Speaker 4: throughout Chinese society over the next few months to the

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Speaker 4: point that it depressed demand, those types of narratives inevitably

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Speaker 4: are popping into investors' minds right now.

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Speaker 2: Alex Jung's comments are reflected in the markets. Traders have

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Speaker 2: been selling everything from chipstocks to and maggot cap technology

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Speaker 2: to US listed Chinese firms.

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Speaker 1: The US government has begun an official probe into an

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Speaker 1: advanced made in China chip in Huawei's latest smartphone. Exclusive

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Speaker 1: reporting by Bloomberg has set off a debate in Washington

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Speaker 1: about the effectiveness of sanctions intended to contain Beijing. Here's

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Speaker 1: the view of Dan Hutchison, who's the vice chair of

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Speaker 1: Tech Insights Now. They are the company that our reporters

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Speaker 1: worked with in order to break down Huiawei's Mate sixty

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Speaker 1: pro device and uncover the technology inside.

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Speaker 5: They've been able to clearly get from the fourteen animeter

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Speaker 5: to the next generation which is seven animeter, and it's

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Speaker 5: a pretty clean looking device in terms of when we

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Speaker 5: got in and we looked at the devices on shows

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Speaker 5: that there was a really lot of excellent engineering on

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Speaker 5: the part of the Snick engineers to bring this part

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Speaker 5: to market.

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Speaker 1: Tech Insights Dan Hutchison says that the original objective of

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Speaker 1: the US sanctions was to keep China's fabrication capability behind

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Speaker 1: that of the United States. While China is progressing more

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Speaker 1: rapidly than expected, he says that they still appear to

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Speaker 1: be behind their geo political rival.

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Speaker 2: The White House says President Joe Biden does not intend

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Speaker 2: to meet Chinese Premier League Kiang during the summit. During

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Speaker 2: the Group of G twenty summit this weekend in Delhi,

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Speaker 2: both China's leader Shooting Ping and RUSSN president Vladimir Putin

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Speaker 2: have now confirmed they will not be attending the summit.

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Speaker 2: The US president will be hoping to seize on their

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Speaker 2: absence to coordinations they've tried to influence, but former US

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Speaker 2: Ambassador to Beijing, Max Booker says that won't be easy.

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Speaker 6: The bigger danger, frankly, is that there'll be very blocks

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Speaker 6: that will develop. President Biden Western countries one China with

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Speaker 6: some of the South countries another President Modi himself. Then

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Speaker 6: don't forget Saudi Arabia is there in the mid East countries.

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Speaker 6: The South country's power is rising. The big danger is

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Speaker 6: that there's not very much an agreement because each of

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Speaker 6: the power blocks is going to be looking more to

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Speaker 6: increase its position in the world.

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Speaker 2: Focus out of the China's most recent economic struggles have

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Speaker 2: dentityese global standing.

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Speaker 1: Now, UK job recruit say that demand for staff fell

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Speaker 1: at the fastest pace in more than three years. Bloombig's

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Speaker 1: un Pot's reports.

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Speaker 7: Now the UK's buoyant jobs market is showing more signs

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Speaker 7: of calling. The Recruitments and Employment Confederation's measure of permanent

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Speaker 7: staff placements dropped to thirty nine in August, are reading

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Speaker 7: well under the threshold of fifty that indicates a decline.

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Speaker 7: Demand dropped at the fastest pace in three years, with

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Speaker 7: demand for temporary staff also shrinking for the first time

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Speaker 7: since COVID. While unwelcome news for job seek is the

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Speaker 7: data does point to lower inflationary pressures from the labour market,

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Speaker 7: something the Bank of England will be watching closely in

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Speaker 7: London immune pots.

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Speaker 2: Bloomberg Radio health officials are warning that a new highly

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Speaker 2: mutated variant of coronavirus as circulating across Europe. Doctors fear

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Speaker 2: the new Parola covid strain is triggering a surge in

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Speaker 2: cases across a number of countries. It's still unclear if

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Speaker 2: emerging variants are associated with more severe disease or a

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Speaker 2: reduction of vaccine effectiveness.

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Speaker 1: Those are your top stories. These are the markets right now.

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Speaker 1: The masci Asia Pacific Index is down by six tenths

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Speaker 1: of one percent. US stocks fifty futures are high at

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Speaker 1: a tenth of one percent this morning, and looking at

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Speaker 1: Benchmark Yield's tenure, US treasure yields trading down two basis

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Speaker 1: points at four point two percent.

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Speaker 2: Well after our conversation yesterday Caroline with the Lloyd's of

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Speaker 2: London CEO. Another story about insurance caught my eye this morning,

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Speaker 2: and it's actually to do with how much the skyrocketing

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Speaker 2: cost of home insurance in the US. It's dictating where

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Speaker 2: people can live. So at one end of the scale

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Speaker 2: you have the likes of exclusive enclaves in Miami, Star Island,

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Speaker 2: premium running to as high as six hundred and twenty

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Speaker 2: thousand dollars a year. But rates and Florida have actually

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Speaker 2: tripled in the past three years and insurers are pulling

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Speaker 2: back from the state. This is to do with the

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Speaker 2: risks increase risks linked to climate change, more hurricanes, more flooding,

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Speaker 2: meaning it's more expensive and a lot of people are

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Speaker 2: actually having to move out of neighborhoods because they can't

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Speaker 2: afford the insurance on their homes.

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Speaker 1: I do think that this is something new, This is

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Speaker 1: something that the insurance industry only just now in the

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Speaker 1: world has really begun to grapple with. Yes, I think

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Speaker 1: the boss of Lloyd's of London was so interesting. He

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Speaker 1: was saying to us when he talked to us about

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Speaker 1: the results, that prices have gone up nine percent. But

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Speaker 1: he pointed out, for example, that we saw a hurricane

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Speaker 1: in California for the first time since nineteen thirty five.

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Speaker 1: But I think that you know, Europe is still very

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Speaker 1: much underinsured. I mean, in the US it's sort of

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Speaker 1: common to understand that there are extreme weather events less

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Speaker 1: so I think still in Europe.

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Speaker 2: But insurance broker is in this story saying that if

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Speaker 2: you only had a twenty percent increase in your house

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Speaker 2: insurance this year you were doing well, and that some

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Speaker 2: people are facing increases of up to eight hundred percent

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Speaker 2: when it comes to renew their premiums as well. So

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Speaker 2: certainly a really interesting story to watch as we are

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Speaker 2: thinking about how these major weather events might affect the

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Speaker 2: future of insurance and as I said, where people can

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Speaker 2: afford to live. Now, it's not just house prices that

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Speaker 2: are influencing that.

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Speaker 1: Yeah, no, absolutely, So that's a story that caught our eye.

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Speaker 1: But of course we have to think about what's going

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Speaker 1: on geopolitically as well. This morning, let's get more on

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Speaker 1: this weekend's G twenty summit. So the US President Joe

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Speaker 1: Biden will attend the event in Delhi, but he won't

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Speaker 1: be meeting with China's Premier Lee. Leaders are expected to

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Speaker 1: discuss issues from the economy, to food security and so

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Speaker 1: much more. Bloomberg opinion columnist Karishma Vswani joins us now

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Speaker 1: for more. What do you think is actually at stake

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Speaker 1: at this G twenty summit? You know, this isn't something

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Speaker 1: this market movie, but geopolitically is very significant.

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Speaker 8: Yeah, and in terms of the geopolitics, it really doesn't

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Speaker 8: get bigger than this in terms of whatsapt state, Caroline,

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Speaker 8: you know you've got a packed agender in Deli this weekend.

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Speaker 8: Economic issues, of course always at the top of minds there.

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Speaker 8: Climate change a key concern as well. Restructuring of multilateral

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Speaker 8: development banks like the World Bank, for in since also

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Speaker 8: really important. And there's a lot of push and pull

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Speaker 8: on all of these issues, frankly, Caroline, because of course

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Speaker 8: you have emerging nations who are hoping to get more

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Speaker 8: funding from the rich ones and that's just one of

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Speaker 8: the issues that's got this club of twenty countries divided.

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Speaker 8: There's also obviously the Ukraine War, and I think it's

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Speaker 8: worth saying, you know, Caroline, I was at the last

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Speaker 8: G twenty in Bali. This was a major sticking point

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Speaker 8: at that point as well. At that time, the host

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Speaker 8: Indonesia was pushing nations to get some sort of consensus

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Speaker 8: through on the language for that final communicate, which they

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Speaker 8: managed to do in a quite hurrid fashion. In fact,

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Speaker 8: it's not clear whether that's going to happen this time

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Speaker 8: round with host India, and if they don't get a communicate,

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Speaker 8: it's pretty significant. It would be the first time in

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Speaker 8: the history of the G twenty that that doesn't happen.

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Speaker 2: Yes, that's me. We'll be watching for very closely as well.

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Speaker 2: We've had a lot of focus on who's attending this

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Speaker 2: meeting at Christmas shooting Ping not there. How significant is that?

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Speaker 8: I don't think you can get away from the fact

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Speaker 8: that this is pretty significant, right. I mean, you know,

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Speaker 8: he's the leader of the world's second largest economy. He's

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Speaker 8: a huge international player, and I was just writing about

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Speaker 8: this in a column for Bloomberg Opinion this week. In fact,

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Speaker 8: and as much as India and the US try and

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Speaker 8: downplay this, it's you know, you can't get away from

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Speaker 8: the fact that not having Si Jinping at the G

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Speaker 8: twenty summit isn't just bad for China, it's bad for

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Speaker 8: the rest of us, because this relationship between the US

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Speaker 8: and China arguably is the most pivotal of our time,

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Speaker 8: and relationships take time, they take effort, they take face

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Speaker 8: to face contact. There was the expectation, I think there

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Speaker 8: was the hope that Xi Jinping and Joe Biden would

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Speaker 8: actually meet at the G twenty. That's not going to happen.

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Speaker 8: There's now some doubts, some speculation about whether Shei Jinping

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Speaker 8: will attend Apek, another possible opportunity for the two leaders

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Speaker 8: to meet again, possibly not happening. When you have these

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Speaker 8: two players not sitting down to have a conversation the

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Speaker 8: way they did at the G twenty in Bali, it

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Speaker 8: must be said, it's really dangerous for the rest of us,

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Speaker 8: and particularly because it's happening at a time of the

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Speaker 8: Chinese economic slowdown and also signs that China is turning

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Speaker 8: more inward and more comfortable with countries that are more

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Speaker 8: welcoming to it.

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Speaker 1: But what do you think the message from Narendra Modi

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Speaker 1: will be India hosting this summit and clearly wanting, you know,

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Speaker 1: to make a major statement about its future economically.

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Speaker 8: Yeah, that's such a good point, Caroline, because of course

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Speaker 8: India is trying to position itself as the other important

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Speaker 8: rising Asian power, and it has to be said, economically

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Speaker 8: it is doing well. You know, it's managed to pull

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Speaker 8: together all of these nations at the G twenty summit.

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Speaker 8: It's sort of India's coming out party, if you will,

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Speaker 8: and particularly for Narendromody, it's hugely important ahead of that

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Speaker 8: election year. But I think trying to bring all of

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Speaker 8: these competing voices together. Notwithstanding that, India also has a

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Speaker 8: bit of a credibility problem because you know, on the

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Speaker 8: one hand, it's saying that it's this rising Asian power,

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Speaker 8: it is the bulwark against China, it is the ally

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Speaker 8: or the partner rather of the West. But at the

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Speaker 8: same time it has this rather weird, I mean, there's

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Speaker 8: no other word for it, relationship that it continues to

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Speaker 8: have with Russia. And that is problematic because it is

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Speaker 8: supposed to be this Western partner, being in the Quad

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Speaker 8: for instance, But at the same time it doesn't condemn

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Speaker 8: the Ukraine War. At the United Nations, it abstains from votes,

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Speaker 8: and it hasn't joined US led sanctions against Russia. So,

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Speaker 8: you know, frankly, it's a really difficult line for India

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Speaker 8: to tread and to balance. The other big thing, of course,

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Speaker 8: is it's trying to be the voice of the global South,

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Speaker 8: but it's got big competition. China's not going to let

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Speaker 8: that happen.

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Speaker 1: Karishma Karishma Varswani, our new Bloomberg opinion columnists, thank you

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Speaker 1: so much for joining us. We've known each other for

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Speaker 1: many years. Karishma. I'm delighted that you're with us on

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Speaker 1: Bloomberg Radio the Debut Conversation, but many more to come.

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Speaker 2: Let's bring you the latest now. In a story that

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Speaker 2: we brought you on the program last week, a little

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Speaker 2: known London based parts supplier that was supplying aircraft spare

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Speaker 2: parts with documents that were falsified, Bloomberg has now found

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Speaker 2: that even the employees that claim to work at the

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Speaker 2: company on LinkedIn may also be fake. Our senior reporters

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Speaker 2: that Dart Phillip joins us now for the details of

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Speaker 2: this story and said, just bring us, first of all,

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Speaker 2: a little bit of the background around this to remind

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Speaker 2: us what exactly is AOG Technicus and what do they do.

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Speaker 9: Yes, So, EOG Techniques is a little known company that

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Speaker 9: I didn't really know much about until last week when

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Speaker 9: we broke that story about how they were sort of

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Speaker 9: involved in documentation that's fraudulent for buds. So essentially every

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Speaker 9: single aircraft bat that's sold around the world has documentation

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Speaker 9: and certification behind it to prove that it's genuine, as

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Speaker 9: the industry is like one of the most certified industries

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Speaker 9: in the world, and EOG Techniques was one of those

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Speaker 9: suppliers in the mix of it, and they were falsifying

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Speaker 9: records for some jet engine parts which are crucial, including

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Speaker 9: engine turbine blades. And so essentially the regulators are looking

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Speaker 9: into this now and trying to see what the extent

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Speaker 9: of the problem was and how much how pervasive the

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Speaker 9: issue is.

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Speaker 1: Yeah, it was a staggering story, you know, something absolutely

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Speaker 1: new and choosally important for the industry. How is it discovered?

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Speaker 1: What are the regulators saying, because it's a number of

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Speaker 1: regulators absolutely.

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Speaker 9: I mean so the CAA in the UK is looking

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Speaker 9: into it, ESA is looking into it. We understand that

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Speaker 9: the US regulars are looking into it, and essentially everyone's

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Speaker 9: trying to see what the extent of this issue is

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Speaker 9: because the company's been around since twenty fifteen and we

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Speaker 9: know that at least some of the parts include turbine

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Speaker 9: blades that we wrote about a couple of days ago,

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Speaker 9: And essentially for the aviation industry, where trust and certification

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Speaker 9: is everything, this is a massive issue and or every

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Speaker 9: one of trying to stamp it out.

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Speaker 2: Talk to us about the later strand of the story

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Speaker 2: that we're reporting on you're reporting on today, which is

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Speaker 2: to do with the people who purport it to be

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Speaker 2: employees of this company.

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Speaker 7: Yeah.

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Speaker 9: Absolutely, This was actually a fascinating look into sort of

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Speaker 9: the profiles of the people who work there. And so

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Speaker 9: if you go onto LinkedIn the chief the purported chief

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Speaker 9: commercial officer of the company is someone called ray Kuog,

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Speaker 9: and ray Quog's picture is a stock photograph. And similarly

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Speaker 9: for other employees of the company, where we did reverse

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Speaker 9: image searches and we found that their images go from

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Speaker 9: anywhere from a dementia care specialist as well a dentist's

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Speaker 9: dentist practice blog, all sorts of things, and so the

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Speaker 9: company may have sort of built up its reputation citing

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Speaker 9: people who don't actually work there.

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Speaker 1: Wow, Okay, what's next then? Potentially in this story, what

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Speaker 1: are you watching out for?

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Speaker 9: We're looking to see what the the sort of scale

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Speaker 9: of the problem is, to be honest, because I think

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Speaker 9: at the moment we don't have a fix on how

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Speaker 9: big and how COVASI of the issue is, how many

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Speaker 9: aircraft might be potentially infected, and what regulators sort of

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Speaker 9: measures will be digging in terms of regulator's action and

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Speaker 9: sort of prosecution if possible, because this is a pretty

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Speaker 9: serious issue for the industry.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Streets and beyond.

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