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Speaker 1: This is Bloomberg Daybreak. Heure for this Friday, the tenth

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Speaker 1: of February in London. Coming up today, no nickel and

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Speaker 1: more than a dime metal fraud leaves traffic euro facing

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Speaker 1: half a billion dollar lass, the pound in your pocket,

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Speaker 1: public sector pay rises makesbur inflation, says the Bank of England.

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Speaker 1: I was on a lamb was one stratagist bets the

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Speaker 1: FED funds rate will hit eight percent. The Margaret remains

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Speaker 1: convinced it's close to five. Britain's two billion pounds fraud

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Speaker 1: bills bags can't be copied in cyberspace and Sam, are

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Speaker 1: you there? The final hours of FTX. Those other stories

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Speaker 1: we're looking at in today's papers are nine Leanne Gern's

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Speaker 1: plus a multi billion pound of football pitch. Jim Ratcliffe

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Speaker 1: lines up golden sacks to bank roll his Manchester United bid.

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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 blue Book, Business

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

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Speaker 1: Stephen Carroll and I'm Caroline Hike. Here are the stories

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Speaker 1: that we're following Today, traffic Eura is facing a five

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Speaker 1: and seventy seven million dollar loss after discovering metal cargoes

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Speaker 1: that bought didn't contain the nickel they were supposed to.

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Speaker 1: The commodity trader says it has spent the past two

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Speaker 1: months uncovering what it believes is a systematic fraud against

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Speaker 1: the company. Bloomberg's Sukinan broke down how Trafficura found out

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Speaker 1: it had been duped. Traffic Our began reviewing its relationships

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Speaker 1: with various trading partners late last year. It's apparently been

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Speaker 1: buying nickel in containers that are already on board ships,

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Speaker 1: and then it sells it when the vessels reached their destination.

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Speaker 1: The trade began to unravel when the company's investigators arrived

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Speaker 1: at a port in Rotterdam. They checked the contents of

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Speaker 1: the container and guess what, no nickel inside? It was

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Speaker 1: some other worthless metal, Szukeenan reporting there. The revel another

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Speaker 1: black mark for the metals trading industry, which in recent

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Speaker 1: years has been beset by tales of fake warehouse receipts,

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Speaker 1: duplicate shipping documents, and even containers filled with painted rocks. Now,

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Speaker 1: thousands of AID workers are pouring into Turkey and Syria,

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Speaker 1: where deaths from Monday's massive earthquakes have now risen past

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Speaker 1: twenty thou people. Prime Minister Rishi soonac Here is urging

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Speaker 1: everyone to donate what they can to support those in need.

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Speaker 1: We will do everything that we can to help Turkey.

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Speaker 1: I already said that to the President when I spoke

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Speaker 1: to him a couple of days ago, and what the

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Speaker 1: government's also said is that we will match all of

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Speaker 1: the country's donations pound for pound. Soon I spoke as

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Speaker 1: the first un AID shipment arrived in Syria loaded with blankets,

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Speaker 1: hygiene products and materials to give people temporary shelter. Meanwhile,

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Speaker 1: the World Bank will provide Turkey with nearly one point

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Speaker 1: eight billion dollars for disaster relief and recovery. The Bank

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Speaker 1: of England Governor Andrew Bailey says big increases in public

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Speaker 1: sector pay will add to inflate and if they aren't

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Speaker 1: offset by tax increases. Speaking to the Treasury Committee in Parliament,

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Speaker 1: Bailey said that even with falling energy costs, inflationary risks remain.

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Speaker 1: If you've got those powerful sort of downside forces, why

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Speaker 1: are you raising interest rates again? And the answer for

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Speaker 1: me to that question is, I'm very uncertain, particularly about

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Speaker 1: price setting and wage setting in this country. We have

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Speaker 1: got the largest upside skew on and our forecast that

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Speaker 1: we've ever had on inflation. Bank Ofving governor is speaking

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Speaker 1: as firefighters called off the threat of strikes after receiving

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Speaker 1: an improved pay offer. The Fire Brigades union send its

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Speaker 1: members would vote on a seven percent raised back dated

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Speaker 1: to last summer, and a further five percent increase from

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Speaker 1: this July. Now. China's consumer inflation accelerated last month as

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Speaker 1: the lunar New Year holiday stimulated demands. Bulloomberg's Brian Curtis

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Speaker 1: has more now From Hong Kong, the CPI rose two

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Speaker 1: point one percent from a year earlier. That was in

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Speaker 1: line of estimates. Core inflation, stripping out food and energy,

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Speaker 1: gained just one percent. In the meantime, the pp I

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Speaker 1: fill zero point eight percent as commodity prices lagged. The

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Speaker 1: estimate was for a drop of zero point five percent.

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Speaker 1: Bloomberg Economics says the pickup in cp I was down

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Speaker 1: to higher food prices, not services. As such, the signal

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Speaker 1: is underwhelming in Hong Kong, Brain Curtis Bloomberg Daybreak Europe.

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Speaker 1: British billionaire Jim Ratcliffe is said to have lined up

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Speaker 1: banks including Goldman Sacks, to bankroll a bid to buy

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Speaker 1: Manchester United. The source says the banks are prepared to

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Speaker 1: fund a takeover offer for the English football club with

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Speaker 1: bonds and loans. Bloomberg understands this would include covering Manus

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Speaker 1: existing eight hundred million dollars of debt. Shares in the

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Speaker 1: company starts this week. On reports, Qutari investors are also

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Speaker 1: looking to bid for the clubs that as the latest

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Speaker 1: on man United and the potential takeover bid their interesting

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Speaker 1: stuff on a day where here at home we saw

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Speaker 1: tst he has another record high. Yeah absolutely, this was

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Speaker 1: results from astro Zenica Standard charted the help to lift

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Speaker 1: share prices in London. I mean the one was an

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Speaker 1: our performer losses is quite interesting that it's continuing to

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Speaker 1: power higher today, But that's not top of my list

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Speaker 1: I think today in terms of the most interesting stories.

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Speaker 1: It's a Friday, after all, This one has my attention.

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Speaker 1: Um Lux walls, net zero glass. This is all about

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Speaker 1: how heat is we know escapes from people's homes through windows.

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Speaker 1: Bill Gates is making an investment into this business. I mean,

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Speaker 1: look at prominting, what what what? Windows? Are we talking

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Speaker 1: about it? But it's known for his success with windows.

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Speaker 1: Is now investing in a different kind of windows. As

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Speaker 1: one of our our office wags equipped earlier, doesn't mean

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Speaker 1: we'll have to upgrade it every year. Ah Yes, very

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Speaker 1: funny butt of heat basically from buildings escapes through windows.

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Speaker 1: So yeah, really interesting that the billionaire is putting money

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Speaker 1: into that. And the other one weekend reads that I like,

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Speaker 1: so we know that kind of staying trim can perhaps

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Speaker 1: and make you live longer. But now that Columbia University

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Speaker 1: is doing a two year long study cutting calories by

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Speaker 1: apparently slows aging. So there we are. And it depends

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Speaker 1: on where you start from. I would imagine, yes, perhaps

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Speaker 1: I think perhaps if you're a normal way, but yeah, anyway,

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Speaker 1: if you're slimmer, you get to live longer. I will

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Speaker 1: retain judge, reserve judgment on that one. Okay, up next,

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Speaker 1: Britain's two billion pounds fraud bill Rams bags can't be

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Speaker 1: copied in cyberspace? And Sam are you there? The final

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Speaker 1: hours of ft X now the paper review on blue

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Speaker 1: Bird Daybreak Europe. The news you need to know from

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Speaker 1: today's papers. Go into is here for the newspaper review

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Speaker 1: this morning. The headline in the Telegraph reads Britain forced

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Speaker 1: to pay Brussels two point three billion pounds over import fraud.

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Speaker 1: What's going on? Yes, indeed, Caroline, and good morning to you.

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Speaker 1: Just one quick thing. Apparently if you're in a relationship

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Speaker 1: you also live longer too, so not just cutting calories.

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Speaker 1: So there we are lots of studies all around. But

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Speaker 1: let's get back to the story. Actually that's in the

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Speaker 1: Telegraph today, Caroline, and the government has paid this huge

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Speaker 1: sum of two point three billion pounds to the EU.

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Speaker 1: Now this comes after a court rule that Britain had

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Speaker 1: actually failed to collect billions as a result of fraud

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Speaker 1: on imports, and these came in from China. The newspaper says.

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Speaker 1: The European Commission did complain that importers into Britain had

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Speaker 1: really escaped a number of customs duties and this has

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Speaker 1: all to do with false invoices and artificially low value

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Speaker 1: documents for things like Chinese textiles and also footwear. The

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Speaker 1: European Court of Justice ruled against the UK, saying it

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Speaker 1: had failed to adopt the measures necessary to combat import

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Speaker 1: fraud and this is between the years twenty eleven and

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Speaker 1: twenty seventeen. And remember at this time Britain was still

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Speaker 1: a member of the EU. John Glenn, the Chief Secretary

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Speaker 1: to the Treasury, said Britain had maintained that it had

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Speaker 1: taken appropriate steps to counter forward throughout the legal proceedings

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Speaker 1: that were ongoing. However, he also said the UK has

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Speaker 1: increased its measures to prevent a fraud going forward. So

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Speaker 1: there we are. We see the battle between the EU

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Speaker 1: and the UK government. I mean, it's interesting because it

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Speaker 1: was such a huge case. I mean it's more than

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Speaker 1: half of all textiles and footwear actually imported into the

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Speaker 1: UK from China were below the kind of acceptable levels

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Speaker 1: that that that they were meant to be according to Europe.

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Speaker 1: But yeah, it was. It was huge affected a lot

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Speaker 1: of imports into Britain. Thanks le leantoone to a story

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Speaker 1: next which maybe one of the most twenty three stories

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Speaker 1: that I can imagine at the Times headline Erma's bags

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Speaker 1: wining digital token copyright case. Is it a bag? Is

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Speaker 1: it not a bag? Who knows? It isn't a meta broken?

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Speaker 1: We don't know, But you know what, I think you're

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Speaker 1: completely right. This is a very very modern court battle, Stephen.

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Speaker 1: And it's one between the extremely expensive handbags and digital tokens. Okay,

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Speaker 1: let me break this down for you. So a digital

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Speaker 1: token featuring copies of M's broken bags did infringe the

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Speaker 1: fashion houses trademark rights. Now, this is all according to

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Speaker 1: a New York jury. The moment has been described as

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Speaker 1: a terrible day for artists. The case before a federal

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Speaker 1: court in Manhattan was one of the very first disputes

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Speaker 1: over the popular non fungible tokens to go all the

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Speaker 1: way to trial. So there we are. This is why

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Speaker 1: the battle is so modern. Now the French luxury design

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Speaker 1: house has been awarded one hundred thirty three thousand dollars

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Speaker 1: in damages. And this is for trademark infringement, evolution and

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Speaker 1: also skybus squatting, cyber squatting, a term I hadn't heard before. Now,

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Speaker 1: you know, these bags are so expensive, and they are

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Speaker 1: so so rare, and they retail between seven thousand, five

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Speaker 1: hundred and nearly twenty five thousand. But we must remember

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Speaker 1: if a rare one has been made, it can sell

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Speaker 1: for a whole lot more than that. So I was

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Speaker 1: wondering if meta bookins they're no longer on the market,

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Speaker 1: but would they have been cheaper? But you can't show

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Speaker 1: them off. So I was a bit like you screen.

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Speaker 1: So do you walk around with your screen saying I've

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Speaker 1: got a meta book and on a night just split

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Speaker 1: it in your home? Yes, this is true, further proving

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Speaker 1: than in cyberspace, only intellectual property lawyers can hear you scream.

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Speaker 1: Just last you though this story is a long reading

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Speaker 1: the ft B. It's really interesting, Sam, are you there?

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Speaker 1: The bizarre and brutal final hours of FTX. I actually

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Speaker 1: printed it out and I think it's a six page

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Speaker 1: read on both sides of the paper, So if you've

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Speaker 1: got a bit of time, please do reader. But Stephen

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Speaker 1: Carroll really inspired me when it came to the story,

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Speaker 1: because reading six pages on a Friday morning it's not

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Speaker 1: very easy. But this is an amazing account of what

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Speaker 1: happened during the collapse of the crypto firm f t X.

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Speaker 1: We have been covering this extensively on Bloomberg Now. Joshua

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Speaker 1: Oliver has spoken to the former x f t X employees,

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Speaker 1: people with real first hand knowledge of the events that

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Speaker 1: sent it really spiraling, and he's also spoken to Sam

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Speaker 1: bankmun Freed himself. Now, the article does include so many

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Speaker 1: messages from slack signal and other messaging platforms from Sam

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Speaker 1: bankmun Freed and other senior figures in the business. There

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Speaker 1: were really some incredible details, including how when reports of

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Speaker 1: troubles at f t X did start spreading, staff for

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Speaker 1: rushing to leave their offers, throwing out clothes with the

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Speaker 1: company's logo on because there were rumors people we have

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Speaker 1: been searched at airports. One employee said it was the

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Speaker 1: most crazy head take twenty four hours of my life.

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Speaker 1: I felt like my world was falling apart. F t

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Speaker 1: X was not just a job for me and for

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Speaker 1: other people. F t X was my life, and I

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Speaker 1: think this is something we do need to take into

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Speaker 1: account when we read this, real people were working there

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Speaker 1: and this has impacted their life and investors too. And

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Speaker 1: the article also saw an exchange between s PF himself

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Speaker 1: SPF and CZ, his arch rival. We see these text

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Speaker 1: message exchange when Sam bankmun Freed asks about the buyout

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Speaker 1: deal and CZ, Sam's biggest arch rival just basically said,

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Speaker 1: we can't continue with there's too many issues. Real short

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Speaker 1: reply to something that had been so eagerly anticipated and

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Speaker 1: also another nice thing in this article talks about Sam

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Speaker 1: bankman Fried's life and just how normal it seemed when

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Speaker 1: the journalist Joshua Oliver went over to his house. Apparently

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Speaker 1: there were hummingbirds around the fountain and his parents were

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Speaker 1: extreme degeneration welcoming. Yeah, I mean, look, I think it's

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Speaker 1: it's a great bit of reporting in the ft Um.

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Speaker 1: The thing is it's all going to court, and so

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Speaker 1: that that's the issue. I think it's what's what happens

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Speaker 1: in the court case is going to be a very

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Speaker 1: fascinating Thank you so much the against for our newspaper review. Now,

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Speaker 1: the latest inflation figures from China give us an indication

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Speaker 1: of the picture for consumer demand in the world second

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Speaker 1: largest economy, following countries easing of its COVID zero restrictions.

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Speaker 1: But what does it feed into the global inflation picture

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Speaker 1: and the demands on central banks. Let's bring in our

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Speaker 1: te Frates correspondent Garfield Reynolds. Garfield, great to have you.

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Speaker 1: Inflation picking up in China. What does it mean for

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Speaker 1: the rest of the world. Well, I mean I moved

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Speaker 1: a couple of things. You're on. On the positive side,

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Speaker 1: it does you know, speak to the idea that China

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Speaker 1: coming out of COVID can look forward to a stronger

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Speaker 1: growth profile than had been the case. And that's something

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Speaker 1: that a lot of people have been encouraged by, uh,

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Speaker 1: you know, the idea that the reopening trade would restore

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Speaker 1: that whole of the global economy that China had created.

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Speaker 1: It does also, though, add to the potential that inflation

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Speaker 1: comes bouncing back despite the concerns that you know, despite

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Speaker 1: the optimism that the slowdown we've seen in inflation rates

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Speaker 1: could extend. So that's something to keep an eye on.

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Speaker 1: One slightly positive factor there is that the producer prices

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Speaker 1: in China, and that is a key part of the

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Speaker 1: way that China feeds into global inflation is what's going

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Speaker 1: on with its manufacturing sector. They fell zero point eight percent,

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Speaker 1: which was a bigger than expected decline. So the inflationary

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Speaker 1: impulse out of China might not be too strong. And

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Speaker 1: I think in fact that, to be honest to FED

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Speaker 1: and so on, a far more worried about what's going

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Speaker 1: on with services and the potential for um, you, wage

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Speaker 1: wage inflation, for a wage price spiral, and that's something

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Speaker 1: that's far more about services industry in the US, bottlenecks

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Speaker 1: and and and other, and the long term impact of

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Speaker 1: the pandemic. Garford. Just speaking of the US, the treasury

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Speaker 1: yield curve has moved significantly. It's the most inverted since

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Speaker 1: the eighties. There seems to be a real rethink in

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Speaker 1: markets now they're getting the message from a hook ish FED.

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Speaker 1: How do you see it briefly, Well, I mean a

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Speaker 1: lot of ways markets have been, you know, not totally

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Speaker 1: out of that with the FED, especially when it comes

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Speaker 1: to long end the short and there's been a bit

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Speaker 1: of the optimism, like I said about the idea of

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Speaker 1: FED you could ease off sooner rather than later. But

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Speaker 1: you know, the jobs numbers last week really didn't help

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Speaker 1: on that front, or last month, and the curve has

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Speaker 1: been about this inverted for a while. It's also just

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Speaker 1: gone past a hundred and fifty trading days, which was

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Speaker 1: how long the yield curve in version lasted back in

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Speaker 1: two thousand and six, two thousand and seven in the

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Speaker 1: lead up to the two thousand and eight crisis. So

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Speaker 1: we've now got the longest inversion since the one that

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Speaker 1: ended in two thousand. The bad news is that back

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Speaker 1: in the nineteen eighties. That era again, we keep mentioning it.

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Speaker 1: Back then, we had inversions that lasted two hundred and

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Speaker 1: seventy and four hundred plus days. This is Bloomberg Daybreak Europe,

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