1 00:00:02,800 --> 00:00:05,080 Speaker 1: This is Bloomberg Daybreak you up for this Thursday, the 2 00:00:05,120 --> 00:00:06,640 Speaker 1: fifteenth of June in London. 3 00:00:06,760 --> 00:00:08,960 Speaker 2: Coming up today, Cus and Run. 4 00:00:09,160 --> 00:00:13,000 Speaker 3: China's Central Bank ramps up rakecuts as the economy weakens. 5 00:00:13,200 --> 00:00:16,160 Speaker 1: A pause before the final pushed your own pal says 6 00:00:16,200 --> 00:00:19,000 Speaker 1: there is near consensus on the need for some for 7 00:00:19,160 --> 00:00:20,040 Speaker 1: the Fed hikes. 8 00:00:20,200 --> 00:00:23,400 Speaker 3: A sting in the tail City, CFO Warren's job lasses 9 00:00:23,480 --> 00:00:26,599 Speaker 3: will cast the bank four hundred million dollars. 10 00:00:26,440 --> 00:00:29,720 Speaker 4: Black Rocks, AI pipe dream and all your macrodata in 11 00:00:29,760 --> 00:00:31,960 Speaker 4: a box to the left. Those are the stories we're 12 00:00:31,960 --> 00:00:34,159 Speaker 4: looking at in today's papers. I'm James Walcock. 13 00:00:34,440 --> 00:00:38,800 Speaker 1: Plus we SODA's ipo goes flat. The firm scraps plans 14 00:00:38,840 --> 00:00:41,880 Speaker 1: to list in London citing extreme investor caution. 15 00:00:43,760 --> 00:00:47,600 Speaker 5: That's all straight ahead on Bloomberg Daybreak Europe. The business 16 00:00:47,640 --> 00:00:49,800 Speaker 5: news you need to start your day in just one 17 00:00:49,920 --> 00:00:54,400 Speaker 5: fifteen minute podcast on Apple, Spotify, the Bloomberg Business App 18 00:00:54,520 --> 00:00:56,680 Speaker 5: and everywhere you get your podcasts. 19 00:01:00,560 --> 00:01:02,160 Speaker 3: Good morning. I'm Stephen Carroll and. 20 00:01:02,120 --> 00:01:05,319 Speaker 1: I'm Caroline Hecker. Here are the stories that we're following today. 21 00:01:05,800 --> 00:01:09,000 Speaker 1: China's Central Bank has ramped up monetary stimulus to help 22 00:01:09,040 --> 00:01:12,360 Speaker 1: spur the economy Bloomberg's Brian Curtiz has more now from 23 00:01:12,360 --> 00:01:12,920 Speaker 1: Hong Kong. 24 00:01:13,120 --> 00:01:16,199 Speaker 6: The action comes on new signs of weakness. In May, 25 00:01:16,520 --> 00:01:18,880 Speaker 6: the PBOC cut the interest rate on its one year 26 00:01:18,920 --> 00:01:21,759 Speaker 6: policy loans by ten basis points to two point sixty 27 00:01:21,800 --> 00:01:24,840 Speaker 6: five percent. That's likely to prompt the banks to lower 28 00:01:24,880 --> 00:01:28,400 Speaker 6: their rates as well. On data, industrial output rose three 29 00:01:28,440 --> 00:01:31,640 Speaker 6: point five percent from a year earlier, matching estimates but 30 00:01:31,800 --> 00:01:35,720 Speaker 6: down from five point six percent. Retail sales gained twelve 31 00:01:35,800 --> 00:01:38,839 Speaker 6: point seven percent, but that missed an estimate as well, 32 00:01:39,200 --> 00:01:41,800 Speaker 6: and fixed asset investments slowing to four percent in the 33 00:01:41,800 --> 00:01:45,199 Speaker 6: first five months of the year also weaker than forecast. 34 00:01:45,600 --> 00:01:48,560 Speaker 6: The State Council is expected to discuss further measures of 35 00:01:48,600 --> 00:01:52,440 Speaker 6: support tomorrow in Hong Kong. Brian Curtis, Bloomberg Daybreak. 36 00:01:52,480 --> 00:01:56,000 Speaker 3: Europe, the Federal Reserve has paused hiking rates after fifteen 37 00:01:56,040 --> 00:01:58,320 Speaker 3: months of tightening, but the move is being viewed as 38 00:01:58,320 --> 00:02:00,919 Speaker 3: a hawkish hold with Fed chiefs your own power, warning 39 00:02:00,960 --> 00:02:03,680 Speaker 3: he expects more raise increases will be needed. 40 00:02:05,120 --> 00:02:08,160 Speaker 7: Today, we decided to leave our policy interest rate unchanged. 41 00:02:08,480 --> 00:02:11,760 Speaker 7: Nearly all committee participants expect that it will be appropriate 42 00:02:12,160 --> 00:02:15,160 Speaker 7: to raise interest rates somewhat further by the end of 43 00:02:15,200 --> 00:02:15,600 Speaker 7: the year. 44 00:02:16,720 --> 00:02:19,000 Speaker 3: Jerome Powell declined to say whether another hike could come 45 00:02:19,040 --> 00:02:21,320 Speaker 3: as soon as July, but emphasize that it will be 46 00:02:21,440 --> 00:02:24,400 Speaker 3: a live meeting. The news led traders to lift bets 47 00:02:24,440 --> 00:02:26,760 Speaker 3: on the fed's peak policy rate up to around five 48 00:02:26,960 --> 00:02:30,520 Speaker 3: point three percent in September. This trails the Fed's new 49 00:02:30,600 --> 00:02:33,320 Speaker 3: forecast of a peak rate at five point seventy five 50 00:02:33,400 --> 00:02:34,480 Speaker 3: percent now. 51 00:02:34,560 --> 00:02:37,440 Speaker 1: Unlike the Fed, the European Central Bank is expected to 52 00:02:37,520 --> 00:02:41,200 Speaker 1: continue hiking rates when it gives its policy decision today. 53 00:02:41,280 --> 00:02:43,200 Speaker 1: More from Bloomberg's Max Ramsey. 54 00:02:43,280 --> 00:02:47,040 Speaker 8: In Frankfurt, the overwhelming consensus is for a twenty five 55 00:02:47,080 --> 00:02:50,760 Speaker 8: basis point hike from the ECB's governing council today. The 56 00:02:50,880 --> 00:02:55,120 Speaker 8: real question remains how much longer this hiking cycle continues. 57 00:02:55,160 --> 00:02:58,200 Speaker 8: There'll be a lot of focus on Christine Lagard's press 58 00:02:58,240 --> 00:03:01,720 Speaker 8: conference for any signals over when a pause could come. 59 00:03:02,240 --> 00:03:05,680 Speaker 8: The current expectation from markets is there could be one 60 00:03:05,720 --> 00:03:08,960 Speaker 8: more hike at the following meeting after this one, and 61 00:03:09,000 --> 00:03:11,840 Speaker 8: that that could bring an end to this historic hiking 62 00:03:11,880 --> 00:03:15,360 Speaker 8: cycle that the ECB has taken to try to tackle inflation. 63 00:03:15,680 --> 00:03:19,160 Speaker 8: In Frankfurt, Max Ramsey, Bloomberg day break Europe, and. 64 00:03:19,120 --> 00:03:21,960 Speaker 1: That ECB decision comes at one fifteen pm a London 65 00:03:21,960 --> 00:03:22,560 Speaker 1: time today. 66 00:03:22,960 --> 00:03:25,919 Speaker 3: City's recent decision to cut sixteen hundred jobs will cost 67 00:03:25,919 --> 00:03:29,160 Speaker 3: the bank four hundred million dollars this quarter. That's according 68 00:03:29,200 --> 00:03:31,840 Speaker 3: to the lender's CFO Mark Mason, who says the severance 69 00:03:31,919 --> 00:03:34,400 Speaker 3: costs are tied to the loss of investment banking and 70 00:03:34,480 --> 00:03:38,480 Speaker 3: trading jobs. Speaking at a Morgan Stanley conference in New York, 71 00:03:38,520 --> 00:03:41,920 Speaker 3: Mason also warned that trading revenue has dropped twenty percent 72 00:03:42,040 --> 00:03:45,240 Speaker 3: so far this quarter, while investment banking revenue is down 73 00:03:45,320 --> 00:03:46,360 Speaker 3: twenty five percent. 74 00:03:47,160 --> 00:03:50,280 Speaker 1: Now some news from the City of London, We Soda 75 00:03:50,280 --> 00:03:53,680 Speaker 1: has canceled its London IPO plans just two weeks after 76 00:03:53,760 --> 00:03:57,240 Speaker 1: announcing that. Bloomberg's U and Potts reports. 77 00:03:56,640 --> 00:03:58,200 Speaker 9: It was said to be one of the few bright 78 00:03:58,240 --> 00:04:01,320 Speaker 9: spots for London's lackluster the List Things markets. But just 79 00:04:01,400 --> 00:04:04,400 Speaker 9: two weeks after announcing its plans, Wei Soda has now 80 00:04:04,440 --> 00:04:08,320 Speaker 9: scrapped its IPO, blaming what it calls extreme investor caution. 81 00:04:08,920 --> 00:04:12,080 Speaker 9: The loss of the world's largest producer of natural soda ash, 82 00:04:12,080 --> 00:04:14,520 Speaker 9: which was targeting evaluation of around seven and a half 83 00:04:14,600 --> 00:04:17,919 Speaker 9: billion dollars, is a major blow to London's stock exchange. 84 00:04:18,120 --> 00:04:20,360 Speaker 9: There were just four London listings in the first three 85 00:04:20,360 --> 00:04:23,039 Speaker 9: months of this year, making it the sixth worst quarter 86 00:04:23,120 --> 00:04:26,600 Speaker 9: for IPOs in the UK since nineteen ninety five. In London, 87 00:04:26,720 --> 00:04:28,400 Speaker 9: i'm Une pots Bloomberg Daybreak. 88 00:04:28,160 --> 00:04:30,880 Speaker 3: Europe a Bank of England right center, is calling for 89 00:04:30,920 --> 00:04:34,240 Speaker 3: a fundamental revisit of the UK's trading relationship with the 90 00:04:34,279 --> 00:04:37,400 Speaker 3: European Union. Swati Dingra, who sits on the Central Bank's 91 00:04:37,440 --> 00:04:42,120 Speaker 3: nine member Monetary Policy Committee, says Britain's trade strategy needs reinventing. 92 00:04:42,520 --> 00:04:45,120 Speaker 3: In a co authored paper with the principal economists for 93 00:04:45,160 --> 00:04:48,279 Speaker 3: the Resolution Foundation, Dinger suggests the UK should try to 94 00:04:48,360 --> 00:04:52,200 Speaker 3: replicate Northern Ireland's position. They argue that the UK should 95 00:04:52,200 --> 00:04:55,800 Speaker 3: become part of the EU's customs territory and single market 96 00:04:56,120 --> 00:04:56,679 Speaker 3: for goods. 97 00:04:57,400 --> 00:05:00,480 Speaker 1: France's President of Manu In Macart has pushed back against 98 00:05:00,520 --> 00:05:03,520 Speaker 1: a move by the EU Parliament to restrict the use 99 00:05:03,560 --> 00:05:07,520 Speaker 1: of artificial intelligence. Speaking out the Viva Tech event in Paris, 100 00:05:07,720 --> 00:05:11,520 Speaker 1: Macon said that Europe should be encouraging innovation first. 101 00:05:12,760 --> 00:05:15,640 Speaker 10: The worst scenario would be a Europe that would invest 102 00:05:15,720 --> 00:05:18,240 Speaker 10: much less than the United States or China not be 103 00:05:18,320 --> 00:05:21,279 Speaker 10: able to create the Great Champions, but instead of Europe 104 00:05:21,360 --> 00:05:25,200 Speaker 10: that would start with regulation. The scenario is possible, it 105 00:05:25,279 --> 00:05:27,320 Speaker 10: is not the one we stand for and it is 106 00:05:27,400 --> 00:05:28,679 Speaker 10: not the one I will support. 107 00:05:30,000 --> 00:05:32,719 Speaker 1: Maca and other leaders are keen to get a slice 108 00:05:32,720 --> 00:05:34,720 Speaker 1: of a sector that is estimated to be worth more 109 00:05:34,760 --> 00:05:38,000 Speaker 1: than one point three trillion dollars in the next decade. 110 00:05:38,680 --> 00:05:41,200 Speaker 1: This is the European Parliament voted to support a plan 111 00:05:41,320 --> 00:05:45,280 Speaker 1: restricting the use of technology, including a complete ban on 112 00:05:45,400 --> 00:05:49,359 Speaker 1: real time remote biometric surveillance. The bill will now be 113 00:05:49,480 --> 00:05:52,960 Speaker 1: negotiated with EU member states before being finalized. 114 00:05:53,320 --> 00:05:57,000 Speaker 3: So those are top stories on the program this morning. Caroline, 115 00:05:57,200 --> 00:06:00,400 Speaker 3: I'm loving this story from Arcoligerena and Gala Bouse the 116 00:06:00,760 --> 00:06:04,159 Speaker 3: idea of getting workers back to the office. The tug 117 00:06:04,200 --> 00:06:07,760 Speaker 3: of war between staff who want the flexibility being able 118 00:06:07,760 --> 00:06:11,000 Speaker 3: to stay at home, while corporate leaders want them back 119 00:06:11,000 --> 00:06:14,040 Speaker 3: in the office because they're worried about the lack of collaboration. 120 00:06:14,080 --> 00:06:16,720 Speaker 3: They're worried about a potential productivity slump if people are 121 00:06:16,760 --> 00:06:20,000 Speaker 3: working from home. This is I think a debate it's 122 00:06:20,040 --> 00:06:23,400 Speaker 3: been playing out in stages ycause we've you know, there 123 00:06:23,440 --> 00:06:26,000 Speaker 3: was the return to offas push which went down in 124 00:06:26,040 --> 00:06:28,600 Speaker 3: some places like a lead balloon to try and get 125 00:06:28,640 --> 00:06:30,679 Speaker 3: people back, and then other people who are very happy 126 00:06:30,720 --> 00:06:32,919 Speaker 3: to come back to the office as well, and striking 127 00:06:32,960 --> 00:06:34,720 Speaker 3: the balance still seems to be quite difficult. 128 00:06:34,800 --> 00:06:36,400 Speaker 1: I think this is the confluence of a couple of 129 00:06:36,400 --> 00:06:39,760 Speaker 1: stories though, because she quotes Martin Sorel, who's the founder 130 00:06:39,760 --> 00:06:42,320 Speaker 1: of WPP Yes, but also now the chairman of S 131 00:06:42,360 --> 00:06:43,040 Speaker 1: four Capital. 132 00:06:43,360 --> 00:06:44,400 Speaker 2: They work in like. 133 00:06:44,600 --> 00:06:49,240 Speaker 1: Thirty different countries with nine thousand employees, so he was saying, 134 00:06:49,600 --> 00:06:52,960 Speaker 1: you know, reflecting the change, and how actually if you 135 00:06:53,000 --> 00:06:55,600 Speaker 1: don't have people in the office, there's no glue, as 136 00:06:55,600 --> 00:06:57,400 Speaker 1: some Martin puts it. 137 00:06:57,440 --> 00:06:59,480 Speaker 2: But when he was last on radio. 138 00:06:59,480 --> 00:07:03,119 Speaker 1: Martin sol was telling us that the company, the marketing company, 139 00:07:03,200 --> 00:07:06,279 Speaker 1: is very much looking at AI and how that is 140 00:07:06,320 --> 00:07:09,360 Speaker 1: a disruptive technology that they're already beginning to sort of 141 00:07:09,360 --> 00:07:13,760 Speaker 1: include in terms of their marketing business. And that's you 142 00:07:13,800 --> 00:07:15,600 Speaker 1: know that there's another store in the terne this morning 143 00:07:15,640 --> 00:07:18,920 Speaker 1: about el how LVMH is going to be using the 144 00:07:19,000 --> 00:07:21,320 Speaker 1: metaverse to try to sell products. You know that this 145 00:07:21,400 --> 00:07:22,640 Speaker 1: is the future of business as well. 146 00:07:22,720 --> 00:07:24,200 Speaker 3: Yeah, I think the key point for me is piece 147 00:07:24,200 --> 00:07:27,520 Speaker 3: as well, is that it's about flexibility. You know, there's 148 00:07:27,960 --> 00:07:30,520 Speaker 3: a question that very few companies have actually implemented a 149 00:07:30,600 --> 00:07:33,640 Speaker 3: full time return to offers because they're worried about losing 150 00:07:33,680 --> 00:07:36,080 Speaker 3: people very simply. So, it's a question of there being 151 00:07:36,080 --> 00:07:38,200 Speaker 3: a balance between people having the flexibility of being able 152 00:07:38,240 --> 00:07:41,080 Speaker 3: to work from home when they need to and also 153 00:07:41,200 --> 00:07:43,400 Speaker 3: companies getting people into the office when they feel they 154 00:07:43,400 --> 00:07:44,040 Speaker 3: need to as well. 155 00:07:44,080 --> 00:07:46,880 Speaker 1: Absolutely, we're tracking work from home for you here on 156 00:07:46,920 --> 00:07:49,560 Speaker 1: Blueberg Radio, but we're also tracking, of course, all the 157 00:07:49,560 --> 00:07:53,080 Speaker 1: central bank and news. They FED has pause following fifteen 158 00:07:53,160 --> 00:07:56,680 Speaker 1: months of rate hikes, but it signaled that it would 159 00:07:57,040 --> 00:07:59,560 Speaker 1: likely resume tightening at some point in order to cool 160 00:07:59,680 --> 00:08:03,320 Speaker 1: US inflation. Now, our BlueBag markets supporta Vallee Titel joins us. 161 00:08:03,720 --> 00:08:06,760 Speaker 1: You've been keeping across all the expectations for the FED 162 00:08:06,840 --> 00:08:08,400 Speaker 1: to come on. What did you make of the dot 163 00:08:08,440 --> 00:08:13,600 Speaker 1: plot yesterday and why markets are actually more duvish. 164 00:08:13,320 --> 00:08:17,800 Speaker 11: Now, Yeah, yesterday's FED meeting was confusing at best. At first, 165 00:08:17,880 --> 00:08:22,280 Speaker 11: they delivered this quite hawkish dot plot showing not only 166 00:08:22,320 --> 00:08:26,200 Speaker 11: one hike more expected, but two more hikes expected. And 167 00:08:26,280 --> 00:08:30,440 Speaker 11: not only that, twelve out of the eighteen FMC members 168 00:08:30,760 --> 00:08:33,439 Speaker 11: thought two hike. More than two hikes were needed, right, 169 00:08:33,480 --> 00:08:37,040 Speaker 11: So a very very hawkish dot plot. Everyone kind of 170 00:08:37,040 --> 00:08:39,839 Speaker 11: stared at their screens blankly, very confused for thirty minutes 171 00:08:39,840 --> 00:08:43,080 Speaker 11: before Powell took the stand, and then immediately he just 172 00:08:43,280 --> 00:08:46,880 Speaker 11: did not follow it up with any hawkish language. The 173 00:08:46,920 --> 00:08:51,920 Speaker 11: press conference was rather doubvish, almost a kind of ambivalence 174 00:08:52,120 --> 00:08:55,040 Speaker 11: over whether these hikes are actually going to be used 175 00:08:55,160 --> 00:08:56,320 Speaker 11: or when they're going. 176 00:08:56,120 --> 00:08:56,760 Speaker 8: To be used. 177 00:08:57,559 --> 00:09:01,840 Speaker 11: It left the market with just a rather confused conclusion, 178 00:09:02,280 --> 00:09:04,840 Speaker 11: and you saw it happen in the markets. The equity 179 00:09:04,880 --> 00:09:08,600 Speaker 11: market ended the day unchanged. Two year yields only moved 180 00:09:08,640 --> 00:09:12,360 Speaker 11: higher by two basis points. It was just it was 181 00:09:12,480 --> 00:09:14,040 Speaker 11: a rather head scratching event. 182 00:09:14,200 --> 00:09:16,360 Speaker 1: Well, the economists from the University of Geneva that we 183 00:09:16,360 --> 00:09:19,000 Speaker 1: spoke to only a few minutes ago, Becaudachezzi, said that 184 00:09:19,040 --> 00:09:20,600 Speaker 1: he didn't think that the you know, he thought that 185 00:09:20,640 --> 00:09:22,280 Speaker 1: this was it in terms of US HIGs. I was 186 00:09:22,320 --> 00:09:24,079 Speaker 1: quite surprised by that comment too this morning. 187 00:09:24,080 --> 00:09:26,280 Speaker 11: So if if you take out the dot plot and 188 00:09:26,480 --> 00:09:27,880 Speaker 11: just listen to what Pwell said, you. 189 00:09:27,880 --> 00:09:29,640 Speaker 2: Would have thought this hiking cycle was over. 190 00:09:30,280 --> 00:09:33,880 Speaker 11: He was very relaxed about inflation. He said some quite 191 00:09:33,880 --> 00:09:37,280 Speaker 11: funny things like don't take our forecast too seriously because 192 00:09:37,360 --> 00:09:40,199 Speaker 11: much is uncertain, which I laughed at, and then he 193 00:09:40,240 --> 00:09:42,320 Speaker 11: did say things like well, risks to the inflation or 194 00:09:42,360 --> 00:09:45,160 Speaker 11: to the upside. It was just a very confusing message. 195 00:09:45,160 --> 00:09:47,880 Speaker 11: It was almost like it was a decision that was 196 00:09:47,920 --> 00:09:50,400 Speaker 11: made by a committee that was very divided. So maybe 197 00:09:50,440 --> 00:09:51,240 Speaker 11: that's the conclusion. 198 00:09:51,440 --> 00:09:54,440 Speaker 3: Interesting. What about the question of eight cuts? Falery any 199 00:09:54,480 --> 00:09:56,679 Speaker 3: indications on when that might be on the cards? 200 00:09:57,360 --> 00:09:59,680 Speaker 11: He was He really pushed back on that, said it 201 00:09:59,720 --> 00:10:02,439 Speaker 11: might not be for a few years, which is odd 202 00:10:02,440 --> 00:10:04,640 Speaker 11: because in the dot plot it reflects one hundred basis 203 00:10:04,679 --> 00:10:07,840 Speaker 11: points of cuts between this year and next. But I 204 00:10:07,880 --> 00:10:09,960 Speaker 11: get what he's trying to say is that it's something 205 00:10:09,960 --> 00:10:14,240 Speaker 11: that the board isn't discussing. We heartily have even discussed 206 00:10:14,280 --> 00:10:16,920 Speaker 11: what we want to do for July. We're not pre 207 00:10:17,000 --> 00:10:21,560 Speaker 11: penciling in anything. But yeah, it's just a confusing picture. 208 00:10:21,600 --> 00:10:23,360 Speaker 11: I'd be interested to hear what other people have to 209 00:10:23,360 --> 00:10:25,960 Speaker 11: say about it, how the US trades it later in 210 00:10:26,000 --> 00:10:28,880 Speaker 11: the afternoon, because you can see right now US yields 211 00:10:28,920 --> 00:10:31,040 Speaker 11: in the front end are moving higher so far in 212 00:10:31,080 --> 00:10:33,920 Speaker 11: the London session, so maybe there was some hawkish element 213 00:10:34,000 --> 00:10:36,559 Speaker 11: that Europe sees that the US. 214 00:10:36,280 --> 00:10:38,800 Speaker 2: Didn't layer onto that. 215 00:10:38,920 --> 00:10:41,320 Speaker 1: Then what's happening with the PBOC going in a different 216 00:10:41,320 --> 00:10:45,440 Speaker 1: direction starting to cut rates? How bad then was today's 217 00:10:45,480 --> 00:10:49,680 Speaker 1: economic data for the Chinese recovery story. 218 00:10:49,920 --> 00:10:52,439 Speaker 11: So they cut their MLF rate by ten basis points, 219 00:10:52,440 --> 00:10:55,559 Speaker 11: widely expected based on the cut they did in a 220 00:10:55,600 --> 00:10:58,000 Speaker 11: smaller interest rate at the earlier this week, and then 221 00:10:58,000 --> 00:11:00,400 Speaker 11: we got this China data dump which the one thing 222 00:11:00,440 --> 00:11:05,559 Speaker 11: that was sour was their retail sales coming and blowing expectations. 223 00:11:05,880 --> 00:11:08,800 Speaker 11: The rest of it didn't seem too much of a miss, 224 00:11:08,960 --> 00:11:13,400 Speaker 11: but it's clear now that the PBOC is on some 225 00:11:13,559 --> 00:11:16,640 Speaker 11: easing track. I think the confusing thing for the markets 226 00:11:16,679 --> 00:11:19,400 Speaker 11: right now is they just don't know what the nature 227 00:11:19,400 --> 00:11:22,319 Speaker 11: of the easing is going to be. They've almost precluded 228 00:11:22,320 --> 00:11:24,320 Speaker 11: that it's going to be different than what we've seen before, 229 00:11:24,800 --> 00:11:27,160 Speaker 11: Like they're not going to target the property sector like 230 00:11:27,160 --> 00:11:29,480 Speaker 11: they very much did in their last easing cycle. So 231 00:11:29,720 --> 00:11:31,880 Speaker 11: is this going to be fiscal stimulus? Is it going 232 00:11:31,920 --> 00:11:35,120 Speaker 11: to be monetary stimulus? That's the issue. The market is 233 00:11:35,400 --> 00:11:37,840 Speaker 11: trying to work out that because it has different ramifications 234 00:11:37,840 --> 00:11:40,080 Speaker 11: for different asset classes and people are trying to figure 235 00:11:40,080 --> 00:11:42,120 Speaker 11: out what the trade is here. The one clear trade 236 00:11:42,160 --> 00:11:46,080 Speaker 11: has been that the yuan has weakened almost in a 237 00:11:46,120 --> 00:11:49,840 Speaker 11: straight shot, nearly four percent, which for a managed currency 238 00:11:50,360 --> 00:11:53,080 Speaker 11: like the Chinese yuan, that doesn't happen very often. So 239 00:11:53,120 --> 00:11:55,559 Speaker 11: that's been the trade so far. It's just rather, if 240 00:11:55,559 --> 00:11:58,200 Speaker 11: they change to fiscal stimulus, will there also be some 241 00:11:58,320 --> 00:11:59,920 Speaker 11: upside for Chinese equities? 242 00:12:00,400 --> 00:12:02,960 Speaker 3: Okay, our market supporter, Valeries, I tell thank you very. 243 00:12:02,920 --> 00:12:03,840 Speaker 5: Much for that. 244 00:12:04,160 --> 00:12:08,079 Speaker 3: Up next, Blackrocks, AI, pipe Dream and Beyonce's Macro Data 245 00:12:08,320 --> 00:12:09,319 Speaker 3: in a buck to the left. 246 00:12:11,080 --> 00:12:15,280 Speaker 5: Now the paper review on Bluebird Daybreak Europe. The news 247 00:12:15,320 --> 00:12:17,600 Speaker 5: you need to know from today's papers. 248 00:12:18,200 --> 00:12:19,760 Speaker 2: Blue makes James will Cock joins us. 249 00:12:19,760 --> 00:12:22,080 Speaker 1: Now if we look through this morning's newspapers, let's start 250 00:12:22,120 --> 00:12:25,520 Speaker 1: with the Financial Times. Then they're covering Black Rocks invest today, 251 00:12:25,520 --> 00:12:26,959 Speaker 1: which took place yesterday. 252 00:12:27,280 --> 00:12:29,760 Speaker 4: I mean, Carolyn, I struggle to find a problem that 253 00:12:29,840 --> 00:12:32,400 Speaker 4: AI can't supposedly fix, so or someone will at least 254 00:12:32,400 --> 00:12:34,800 Speaker 4: try and tell me that it can. But it's interesting 255 00:12:34,840 --> 00:12:37,360 Speaker 4: that it's not just everyone else, it's also Black Rocks. 256 00:12:37,440 --> 00:12:37,960 Speaker 8: Larry Fake. 257 00:12:38,080 --> 00:12:41,160 Speaker 4: Now, when you manage nine trillion dollars, I'm far more 258 00:12:41,200 --> 00:12:43,240 Speaker 4: contested about what you have to say, and what he 259 00:12:43,280 --> 00:12:45,720 Speaker 4: has to say is that productivity is such a central 260 00:12:45,760 --> 00:12:48,120 Speaker 4: issue in the global economy. I mean you just talked 261 00:12:48,160 --> 00:12:50,280 Speaker 4: about working from home and how we fix that kind 262 00:12:50,280 --> 00:12:52,640 Speaker 4: of issue as well. For him, it's like, well, AI 263 00:12:52,760 --> 00:12:54,599 Speaker 4: is the answer. You have all these different ranges. It 264 00:12:54,600 --> 00:12:57,319 Speaker 4: will revolutionize technology, he says, just in terms of black 265 00:12:57,400 --> 00:13:00,559 Speaker 4: Rocks sector, they aggregate such massive amounts of data. Is 266 00:13:00,600 --> 00:13:04,680 Speaker 4: such a wide array of financial metrics. AI can change 267 00:13:04,679 --> 00:13:07,719 Speaker 4: the picture there. He also thinks it could bring down 268 00:13:07,760 --> 00:13:10,800 Speaker 4: inflation because if you can boost productivity, you can then 269 00:13:11,120 --> 00:13:12,600 Speaker 4: free all sorts of other sort of sex and say 270 00:13:12,640 --> 00:13:14,640 Speaker 4: the labor market, and then that will then have a 271 00:13:14,640 --> 00:13:18,160 Speaker 4: downward impact on prices. I mean, he adds. The firm 272 00:13:18,200 --> 00:13:20,320 Speaker 4: aims to double its private markets revenue of the next 273 00:13:20,320 --> 00:13:22,720 Speaker 4: five years to about two billion dollars from one billion 274 00:13:22,760 --> 00:13:25,079 Speaker 4: dollars in twenty twenty two. And then a final one 275 00:13:25,120 --> 00:13:27,640 Speaker 4: like he's a fan of dystopian movies. It turns out 276 00:13:28,280 --> 00:13:30,320 Speaker 4: when you'd ask, you can give any specifics. But I 277 00:13:30,320 --> 00:13:32,080 Speaker 4: do find this whole chat about AI and where we 278 00:13:32,120 --> 00:13:35,200 Speaker 4: go next fasceating that someone is both seeing the future 279 00:13:35,240 --> 00:13:36,800 Speaker 4: on one hand as we're being very aware of the 280 00:13:36,840 --> 00:13:38,760 Speaker 4: negative potential consequences on the other. 281 00:13:39,360 --> 00:13:43,840 Speaker 3: Okay, interesting stuff, James, Let's turn next to Beyance. What's 282 00:13:44,000 --> 00:13:45,040 Speaker 3: he got to do with the economy? 283 00:13:45,160 --> 00:13:47,480 Speaker 4: I mean, it's a slight tangent, but I am still 284 00:13:47,559 --> 00:13:49,800 Speaker 4: very proud to have got a giggle out of Valerie Titele. 285 00:13:50,040 --> 00:13:52,480 Speaker 4: The impressive Valerie ties out the way out for the story. 286 00:13:53,360 --> 00:13:57,360 Speaker 4: So Jerem Powell, any large central banker, if they could 287 00:13:57,440 --> 00:14:00,520 Speaker 4: take zero point two percent off of an inflation number 288 00:14:00,800 --> 00:14:02,960 Speaker 4: in a month, they would do it in a heartbeat. 289 00:14:03,040 --> 00:14:05,480 Speaker 4: So Beyonce possibly might be the first person ever to 290 00:14:05,520 --> 00:14:09,880 Speaker 4: add that on in just one gig her two nights 291 00:14:09,920 --> 00:14:13,960 Speaker 4: in the Stockholm friends Arena, Danskabank and Sweat Bank both 292 00:14:14,000 --> 00:14:17,280 Speaker 4: think it had a material impact on inflation, and they 293 00:14:17,320 --> 00:14:19,760 Speaker 4: say that might be the one and only time that 294 00:14:19,760 --> 00:14:22,240 Speaker 4: has ever happened as farm as they they're chief economists, 295 00:14:22,280 --> 00:14:25,280 Speaker 4: can figure out. So how that happens is And this 296 00:14:25,400 --> 00:14:27,000 Speaker 4: is for me a story that you don't need to 297 00:14:27,040 --> 00:14:29,000 Speaker 4: be a financial expert to understand the basics of. Say, 298 00:14:29,080 --> 00:14:32,200 Speaker 4: arbitrage tickets were going for two thousand dollars in the 299 00:14:32,280 --> 00:14:35,480 Speaker 4: US versus two hundred dollars in Sweden due to the 300 00:14:35,520 --> 00:14:38,840 Speaker 4: weak Krona. So there were tiktoks. I went to look 301 00:14:38,880 --> 00:14:40,280 Speaker 4: them up. This is possibly the only time I've ever 302 00:14:40,320 --> 00:14:42,160 Speaker 4: got Vulture dot Com into a pay per review. 303 00:14:42,760 --> 00:14:44,440 Speaker 3: There were ticket show as well. 304 00:14:44,600 --> 00:14:47,240 Speaker 4: Well, it's fascinating, Gene that you have all these us 305 00:14:47,280 --> 00:14:50,080 Speaker 4: TikTok stars going right. Here's how you go through the 306 00:14:50,120 --> 00:14:53,440 Speaker 4: Swedish ticket master website to buy the tickets. Here's like 307 00:14:53,440 --> 00:14:55,880 Speaker 4: how you get in the Swedish ticket queue, so that 308 00:14:55,920 --> 00:14:58,720 Speaker 4: way that you can then get in cheap, and the 309 00:14:59,080 --> 00:15:01,760 Speaker 4: ticketmaster said fan demand for the first round of tickets 310 00:15:01,800 --> 00:15:04,640 Speaker 4: exceeds the number of tickets available by more than eight 311 00:15:04,720 --> 00:15:07,320 Speaker 4: hundred percent. So when you think about that kind of 312 00:15:07,360 --> 00:15:10,520 Speaker 4: demand coming in, that then plays out into hotels, into 313 00:15:10,520 --> 00:15:13,240 Speaker 4: the sort of recreation sector. Both of those in that 314 00:15:13,400 --> 00:15:16,800 Speaker 4: ECO data were up about point two and point three percent, respectively. 315 00:15:17,320 --> 00:15:21,280 Speaker 4: So weak currency, a large event a pop star can 316 00:15:21,720 --> 00:15:25,880 Speaker 4: genuinely drive up inflation by a one off figure. Sure, 317 00:15:26,680 --> 00:15:28,480 Speaker 4: but in a way that as yet might be a 318 00:15:28,600 --> 00:15:29,520 Speaker 4: historic world first. 319 00:15:29,640 --> 00:15:32,600 Speaker 1: Look, so many people are clearly fascinated by this story 320 00:15:32,680 --> 00:15:35,320 Speaker 1: right because it's in the Ft, the Guardian, the Telegraph, 321 00:15:35,320 --> 00:15:37,800 Speaker 1: political forms. Everybody has done it. But I just want 322 00:15:37,840 --> 00:15:39,880 Speaker 1: to give a heads up to Nicholas Rollander because he 323 00:15:40,240 --> 00:15:42,760 Speaker 1: wrote up the story really early on the Blueberg terminal. 324 00:15:43,240 --> 00:15:46,720 Speaker 1: But yeah, look, put beonce into any story and clearly 325 00:15:46,800 --> 00:15:47,840 Speaker 1: you've got a hit. 326 00:15:47,960 --> 00:15:49,800 Speaker 2: When it comes to the economics. 327 00:15:49,840 --> 00:15:51,520 Speaker 4: Well, even the financial press is not immune. 328 00:15:51,920 --> 00:15:52,320 Speaker 2: So sorry. 329 00:15:52,360 --> 00:15:54,520 Speaker 1: We did manage to squeeze in a reference to one 330 00:15:54,560 --> 00:15:56,280 Speaker 1: of her songs though, right. 331 00:15:56,320 --> 00:15:58,680 Speaker 4: Well, everything you own in a box of left in 332 00:15:58,760 --> 00:16:01,240 Speaker 4: my closet, we don't. That's my stuff. 333 00:16:02,640 --> 00:16:05,360 Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the 334 00:16:05,440 --> 00:16:08,480 Speaker 3: stories making news from London to Wall Street and beyond. 335 00:16:08,760 --> 00:16:11,960 Speaker 1: Look for us on your podcast feed every morning, on Apple, 336 00:16:12,080 --> 00:16:14,800 Speaker 1: Spotify and anywhere else you get your podcasts. 337 00:16:14,840 --> 00:16:17,840 Speaker 3: You can also listen live each morning on London DAB Radio, 338 00:16:17,880 --> 00:16:20,600 Speaker 3: the Bloomberg Business app, and Bloomberg dot Com. 339 00:16:20,640 --> 00:16:23,400 Speaker 1: Our flagship New York station is also available on your 340 00:16:23,440 --> 00:16:28,160 Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 341 00:16:28,400 --> 00:16:29,680 Speaker 2: I'm Caroline Hepka and. 342 00:16:29,640 --> 00:16:32,280 Speaker 3: I'm Stephen Carroll. Join us again tomorrow morning for all 343 00:16:32,320 --> 00:16:34,720 Speaker 3: the news you need to start your day right here 344 00:16:34,760 --> 00:16:40,320 Speaker 3: on Bloomberg Daybreak Europe.