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Speaker 1: This is Bloomberg Daybreak here for this Tuesday, the fourth

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Speaker 1: of April in London. Coming up today one day Credit

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Speaker 1: Sweets was a single trading day from bankruptcy when sold.

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Speaker 1: Today it faces shareholders for its AGM charged atmosphere, Donald

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Speaker 1: Trump heads to court to face historic criminal charges and

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Speaker 1: on the right track. Fed Governor Cook says inflation is easy,

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Speaker 1: tax cutting, Chancellor Nigel Lawson dies and the ECB's warning

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Speaker 1: on commercial real estate. Those other stories we're looking at

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Speaker 1: in today's papers. And I'm Leanne Geron's class Britain's leading

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Speaker 1: business lobby. The CBI faces growing claims of sexual misconducts.

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Speaker 1: That's all straight ahead on Bloomberg Daybreak Europe. The business

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Speaker 1: news you need to start your day in just one

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Speaker 1: fifteen minute podcast on Apple, Spotify, the Bloomberg Business app

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Speaker 1: and everywhere you get your podcasts. Good morning, I'm Caroline Hepke.

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Speaker 1: Here are the stories we're following today. Credit Suis will

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Speaker 1: meet its shareholders in Zurich today, the first and perhaps

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Speaker 1: the last opportunity for them to speak directly to the

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Speaker 1: board after the government orchestrated rescue. Swiss National Bank Vice

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Speaker 1: president Martin Schlegel has said that without the UBS deal,

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Speaker 1: Credit Swiez face bankruptcy. Bloomberg's Oliver Kruk reports head Credit

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Speaker 1: Sui has not been sold to UBS, it would have

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Speaker 1: gone bankrupt the next trading day. That's according to Martin Schlegel,

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Speaker 1: who told SRF that without the buyout, it's very very

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Speaker 1: likely a financial crisis in Switzerland and worldwide would have happened.

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Speaker 1: The Swiss National Bank vice president says he doesn't see

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Speaker 1: any signs of financial stabilities under a threat now, so

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Speaker 1: the central bank will razorrates again if needed. Observers still

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Speaker 1: expect another twenty five basis point hike and June, but

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Speaker 1: possibly no further steps. In Zurich, I'm Oliver Krug Bloomberg

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Speaker 1: Daybreak Europe. Well, we will be going live to speak

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Speaker 1: to Oliver Kruk in Zurich for more on the Credit

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Speaker 1: Sweets AGM. He is right outside that AGM for us

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Speaker 1: this morning. Now. President Donald Trump arrives in court today

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Speaker 1: to face criminal charges, a first in US history. There

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Speaker 1: are fears of protests around the court, leading some streets

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Speaker 1: in New York to be closed for the hearing. President

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Speaker 1: Biden has asked was asked if he is worried about unrest,

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Speaker 1: although Biden says he has faith that the judge presiding

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Speaker 1: over the case has banned all electronic devices from the

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Speaker 1: courtroom to prevent a media circus. The European Central Bank

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Speaker 1: has not taken another half point hike off the table.

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Speaker 1: The ECB's governing council member, Robert Holtzman, said that the

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Speaker 1: increase is still on the cards. If the termoil that's

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Speaker 1: rock the global banking system doesn't worsen. Holtzman did acknowledge

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Speaker 1: the collapse of Silicon Valley Bank, but said that his

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Speaker 1: feeling would be to stay on course on interest rate

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Speaker 1: hikes in order to address in la. So that in

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Speaker 1: terms of the ECB. Then this morning, turning our attention

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Speaker 1: though to the Federal Reserve. Federal Reserve Governor Lisa Cook

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Speaker 1: says that inflation has started easing, but Cook, who is

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Speaker 1: a voting member, warned that a tight labor market could

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Speaker 1: derail the outlook. See in wage gains moderate in quite

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Speaker 1: a bit, so that I think is a hopeful sign.

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Speaker 1: But the disinflationary processes in I think it's it's in process,

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Speaker 1: it's in train, we're out theory. So Lisa Cook, speaking

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Speaker 1: there at the University of Michigan. It comes as FED

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Speaker 1: policymakers try to price in shocks from Ukraine, China reopening

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Speaker 1: and now oil so that in terms of central bank news.

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Speaker 1: Now for some politics who In the UK the Labor

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Speaker 1: Party is homing in on crime as a key election issue.

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Speaker 1: Leader Kissama says that Labor would add thirteen thousand neighborhood

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Speaker 1: police officers. The government's hollowed out policing. They got rid

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Speaker 1: of about twenty thousand officers. We say at the thirteen

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Speaker 1: but neighborhood and police officers that they're in their pack,

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Speaker 1: working with communities. Both major political parties in Britain are

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Speaker 1: seeking to present themselves as tough on crime, with public

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Speaker 1: confidence in the police plummeting in recent years. A damning

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Speaker 1: report last month found that London's Metropolitan Police is quote

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Speaker 1: institutionally racist, sexist and homophobic. Meanwhile, a leading a Labor

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Speaker 1: politician has pulled out of an event arranged by the

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Speaker 1: Confederation of British Industry this after the Loyby Group faced

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Speaker 1: fresh allegations of sexual misconduct among its staff, including reports

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Speaker 1: for more than a dozen women who say that they

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Speaker 1: were victims of sexual harassment Yesterday, the Guardian newspaper reported

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Speaker 1: that the CBI had widened an inquiry that it launched

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Speaker 1: last month. A spokesperson for the Lobby Group, which represents

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Speaker 1: one hundred and ninety thousand businesses in Britain, has responded

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Speaker 1: saying that it has treated and continues to treat all

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Speaker 1: matters of workplace conduct with the utmost seriousness. Okay, those

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Speaker 1: are a few of our top stories, and for you

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Speaker 1: this morning a couple of interesting other stories that have

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Speaker 1: caught my eye. So certainly when it comes to the

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Speaker 1: makeup of the Bank of England, I brought you a

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Speaker 1: bit of you know what the Fed thinking is now

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Speaker 1: on interest rates in the ECB. But here in the

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Speaker 1: UK the Treasury is going to announce successor to Sylvanna

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Speaker 1: ten Vera, actually as soon as this week. Her term

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Speaker 1: ends on the fourth of July. Quite interesting to note

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Speaker 1: which names are in the ring for this, one of

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Speaker 1: which our listeners will know quite well. Sarah Hwan, of course,

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Speaker 1: head of research for Europe and America's that Standard Chartered. Also,

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Speaker 1: a bloom Boy reports that Salaheen, who is chief economist

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Speaker 1: at Van god Asset Management, is another name. Both Huan

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Speaker 1: and Salaheen didn't comment, of course, on that report. Declined

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Speaker 1: to comment. The treasure keen to have a woman in

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Speaker 1: place to keep the gender balance in terms of the

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Speaker 1: external members of the MPC, but then it could sort

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Speaker 1: of tip the dove hawk balance on the Bank of

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Speaker 1: England committee. So I think that's quite interesting in terms

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Speaker 1: of what's happening with the BOE. I want to you

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Speaker 1: turn back then to our top story. Credit Sweeces Board

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Speaker 1: faces the music today at their first AGM since the

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Speaker 1: bank was sold off in emergency measures. The government broker

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Speaker 1: takeover of Credit sweez was quote the best among bad solutions,

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Speaker 1: so says the Swiss National Bank vice president Martin Schlegel,

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Speaker 1: joining us now live from outside Credit swieces agm our

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Speaker 1: Bloomberg reporter Oliver Krook. Oliver, thank you so much for

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Speaker 1: being with us. Why is there even an AGM happening

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Speaker 1: if Credit SUEECEE is now part of UBS. Yeah, I

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Speaker 1: think that's a good question. I think that's you know,

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Speaker 1: there are a lot of questions around the AGM, which

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Speaker 1: is fairly peculiar, as you say, for an AGM, given

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Speaker 1: that this will not exist as a standalone entergy I'm

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Speaker 1: in a couple of months, but it does. You know,

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Speaker 1: the share still trade and they did complete their last

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Speaker 1: year's financial results, which is why they're holding their AGM.

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Speaker 1: But the question is today. What is sort of so

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Speaker 1: interesting about this is that this is also the first

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Speaker 1: it will be their last AGM. It'll be their first

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Speaker 1: AGM in person since twenty nineteen, in four years, so

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Speaker 1: since the last AGM on April twenty six, twenty nineteen.

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Speaker 1: If you if you held shares since then, you were

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Speaker 1: wiped out to the tune of ninety three percent. That

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Speaker 1: was a company of a thirty five billion dollars market

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Speaker 1: caps that was sold for three billion dollars just a

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Speaker 1: couple of weeks ago. So you have to imagine the

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Speaker 1: daunting task before the board facing shareholders who are coming

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Speaker 1: in today. So this will all kick off at ten

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Speaker 1: thirty local time. The chairman will speak, the CEO speaks,

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Speaker 1: and then it's question time. Shareholders will give their statements,

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Speaker 1: they will ask questions and it can go well into

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Speaker 1: the evening. Yeah. Absolutely, I mean that's good to be

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Speaker 1: quite a clash. Then surely what do we think might happen?

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Speaker 1: Norway Suffering Wealth Funds has also come out with a

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Speaker 1: view around the reelection of Credit Suis directors. I mean again,

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Speaker 1: question mark doesn't really matter now. I think it's a

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Speaker 1: very good question, and I think that part of this

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Speaker 1: will obviously be symbolic and about having confidence and about

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Speaker 1: kind of who is held to account for what has

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Speaker 1: gone on with Credit sweet Um. There are a few

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Speaker 1: of the more contentious votes who are already pulled before

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Speaker 1: the meeting, but there is also I took to one

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Speaker 1: shareholder yesterday and making the point that actually the board

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Speaker 1: going forward is going to be the board that is

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Speaker 1: going to be determining, you know what. Is all the

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Speaker 1: information going to get out to shareholders, to investigators, to

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Speaker 1: ubs to make sure that the board that is seating

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Speaker 1: seated when this transition is going on, has the right

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Speaker 1: people in it and has the people that are untainted

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Speaker 1: by all the issues of the past. So I think

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Speaker 1: this is where one area where you could have, you know,

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Speaker 1: some substantial move for the share olds. But I think

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Speaker 1: for them it's just going to be questions. You know,

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Speaker 1: was there no other alternative to the takeover? What were

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Speaker 1: the conversations, Is there any other way for shareholders to

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Speaker 1: get compensated our cloudbacks? On the table for pay for example,

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Speaker 1: all of this stuff will be you know, I think

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Speaker 1: addressed today. Yeah, I mean well, I mean mentioned prosecutors.

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Speaker 1: Prosecutors are probing the deal. What do we know about

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Speaker 1: that currently? We don't know a great deal about it.

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Speaker 1: I think that, you know, I think the sense that

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Speaker 1: we've gotten from the very beginning from this deal is

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Speaker 1: that it is hugely contentious, right. It is hugely contentious

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Speaker 1: obviously for Credit Swiss shareholders. It is contentious for UBS

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Speaker 1: shareholders who didn't even get to vote on it. It It

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Speaker 1: is contentious for Swiss citizens and may not even have

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Speaker 1: been what the government wanted. So I think for them

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Speaker 1: it's really very important to make sure that there is

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Speaker 1: no stone unturned, that everything has been looked at, that

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Speaker 1: there is a completely clean slate going into this. So

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Speaker 1: I think that this investigation will be part of that.

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Speaker 1: And we hear it constantly right from government officials that

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Speaker 1: there was no other alternative, as we were mentioning, you know,

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Speaker 1: earlier from the SMB, and so I think that this

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Speaker 1: is part of that effort and really kind of certifying

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Speaker 1: that this had to happen, and that it happened in

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Speaker 1: a way that was legitimate, okay, Oliver, thank you so

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Speaker 1: much for being with us this morning. That is our

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Speaker 1: bliebeg Reporter Oliver Crook there live outside of Credit Suisses AGM,

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Speaker 1: which does take place today. Thank you so much for

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Speaker 1: your time. Coming up next though, tax cutting Chancellor Nigel

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Speaker 1: Lawson dies and the ECB's warning on real estate now

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Speaker 1: the paper review on blue Bird day Break Europe, the

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Speaker 1: news you need to know from today's papers and joining

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Speaker 1: me this morning is me Begs. Leanne Gerin's the headlines

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Speaker 1: the Telegraph Nigel Lawson, tax cutting chancellor under Margaret Thatcher

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Speaker 1: dies aged and ninety one. The Financial Times meanwhile calls

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Speaker 1: it radical tax cutting. UK Chancellor Nigel Lawson dies at

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Speaker 1: ninety one leanne Garin's what is the view now looking

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Speaker 1: back on perhaps one of the most influential chancellors in

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Speaker 1: Britain in the last fifty years and one of the

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Speaker 1: longest serving two Caroline So you know he holds a

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Speaker 1: few accolades, we must say, and the papers have paid

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Speaker 1: him respect and the Telegraph does describe him as a

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Speaker 1: man who really changed things here in Britain, and a

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Speaker 1: lot of that we can still see in the City

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Speaker 1: of London. The newspaper said, Lord Lawson headed up the

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Speaker 1: Treasury under Thatcher, and that was from nineteen eighty three

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Speaker 1: to nineteen eighty nine, and he was really well known

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Speaker 1: for modernizing London's financial markets in the so called Big

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Speaker 1: Bang of deregulation. The Telegraph said he helped lead the

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Speaker 1: privatization drive that put swaves of the public sector under

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Speaker 1: the control of private companies. His work led to the

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Speaker 1: privatization of British airways, British telecoms, British gas and also

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Speaker 1: national electricity generators. So he did change things, Carolina, And

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Speaker 1: as you said, a lot of people know his name

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Speaker 1: and remember what he did during that time of Thatcher's reign.

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Speaker 1: The ft says Lawson was revered by many conservative politicians

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Speaker 1: as a small state revolutionary and they also said he

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Speaker 1: was signed from the government in nineteen eighty nine, but

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Speaker 1: he later won these further admirers on the Tory right,

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Speaker 1: and that was because of his support for the Brexit

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Speaker 1: referendum and for brexiting the country. And it's also important

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Speaker 1: to say that he did run the Treasury under Thatcher

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Speaker 1: for three years. They ultimately, Caroline, they down for was

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Speaker 1: all over economic policy. This what's made the two of

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Speaker 1: them really fall out with each other. And do you

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Speaker 1: know what it was all over? It was over Thatcher's

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Speaker 1: opposition to Britain during the europe joining the European exchange

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Speaker 1: rate mechanisms, and he saw as a means of controlling inflation.

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Speaker 1: Well this and I think this is why it is

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Speaker 1: so fasct and so much will be written about this.

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Speaker 1: I mean, Lawson is an absolutely towering figure because frankly

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Speaker 1: he created the modern financial system that has made London,

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Speaker 1: you know, a kind of glow noble center. Yes, he

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Speaker 1: presided over the end largely of open up cry trading

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Speaker 1: and the move to electronic trading hugely important. Also though

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Speaker 1: there was this idea of the kind of dash for

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Speaker 1: growth in Britain, and haven't we heard that again in

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Speaker 1: recent times? The idea of trying to revive written that

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Speaker 1: was a laws and theme and so I think it's

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Speaker 1: very very interesting that his economic thinking, you know, is

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Speaker 1: something that is being thought about a great deal by

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Speaker 1: the Conservative Party now. That has both pluses and minuses.

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Speaker 1: I mean, Lawson's tenure was sandwiched between two absolutely awful

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Speaker 1: and catastrophic recessions and the kind of rereading sometimes of

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Speaker 1: Lawson's time is that slashing income taxes as he did,

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Speaker 1: and all of that deregulation led to the kind of world,

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Speaker 1: the Lawson boom and bust. Basically that led to that

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Speaker 1: deep recession in the early nineties. And you know, Caroline,

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Speaker 1: I was born when Lawson was Chancellor, so I was

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Speaker 1: very young, but I was just having a really good

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Speaker 1: read through what all the papers were saying about Nigel

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Speaker 1: Lawson today and his legacy, and what you said is

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Speaker 1: so true. I can see so many parallels to how

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Speaker 1: things are being carried out now and how the Tories

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Speaker 1: are making movement on what Nigel Lawson's legacy was. If

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Speaker 1: you want to say that in a lot of respects

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Speaker 1: and I know Rishie Sunac has a lot of respect

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Speaker 1: for him. Our Prime Minister was the former chancellor and

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Speaker 1: said the first thing he did when he got the

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Speaker 1: top job as Chancellor was put a picture of Nigel

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Speaker 1: Lawson above as desk. And that was really because that's

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Speaker 1: what he wanted to do. He wanted to draw on

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Speaker 1: that legacy. This is Bloomberg Daybreak. You up your morning

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Speaker 1: brief on the stories making news from London to Hall

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Speaker 1: Street and beyond. Look for us on your podcast feed

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Speaker 1: Amazon Alexa device. Just Say Alexa played Bloomberg eleven thirty.

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Speaker 1: I'm Caroline Hebker. Join us again tomorrow morning for all

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Speaker 1: the news you need to start your day right here

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Speaker 1: on Bloomberg Daybreak Europe