Speaker 1: This is Bloomberg Daybreak. Heure for this Friday, the tenth
Speaker 1: of February in London. Coming up today, no nickel and
Speaker 1: more than a dime metal fraud leaves traffic euro facing
Speaker 1: half a billion dollar lass, the pound in your pocket,
Speaker 1: public sector pay rises makesbur inflation, says the Bank of England.
Speaker 1: I was on a lamb was one stratagist bets the
Speaker 1: FED funds rate will hit eight percent. The Margaret remains
Speaker 1: convinced it's close to five. Britain's two billion pounds fraud
Speaker 1: bills bags can't be copied in cyberspace and Sam, are
Speaker 1: you there? The final hours of FTX. Those other stories
Speaker 1: we're looking at in today's papers are nine Leanne Gern's
Speaker 1: plus a multi billion pound of football pitch. Jim Ratcliffe
Speaker 1: lines up golden sacks to bank roll his Manchester United bid.
Speaker 1: That's all straight ahead on Bloomberg Daybreak Europe. The business
Speaker 1: news you need to start your day in just one
Speaker 1: fifteen minute podcast on Apple, Spotify, the blue Book, Business
Speaker 1: Appen and everywhere you get your podcasts. Good morning, I'm
Speaker 1: Stephen Carroll and I'm Caroline Hike. Here are the stories
Speaker 1: that we're following Today, traffic Eura is facing a five
Speaker 1: and seventy seven million dollar loss after discovering metal cargoes
Speaker 1: that bought didn't contain the nickel they were supposed to.
Speaker 1: The commodity trader says it has spent the past two
Speaker 1: months uncovering what it believes is a systematic fraud against
Speaker 1: the company. Bloomberg's Sukinan broke down how Trafficura found out
Speaker 1: it had been duped. Traffic Our began reviewing its relationships
Speaker 1: with various trading partners late last year. It's apparently been
Speaker 1: buying nickel in containers that are already on board ships,
Speaker 1: and then it sells it when the vessels reached their destination.
Speaker 1: The trade began to unravel when the company's investigators arrived
Speaker 1: at a port in Rotterdam. They checked the contents of
Speaker 1: the container and guess what, no nickel inside? It was
Speaker 1: some other worthless metal, Szukeenan reporting there. The revel another
Speaker 1: black mark for the metals trading industry, which in recent
Speaker 1: years has been beset by tales of fake warehouse receipts,
Speaker 1: duplicate shipping documents, and even containers filled with painted rocks. Now,
Speaker 1: thousands of AID workers are pouring into Turkey and Syria,
Speaker 1: where deaths from Monday's massive earthquakes have now risen past
Speaker 1: twenty thou people. Prime Minister Rishi soonac Here is urging
Speaker 1: everyone to donate what they can to support those in need.
Speaker 1: We will do everything that we can to help Turkey.
Speaker 1: I already said that to the President when I spoke
Speaker 1: to him a couple of days ago, and what the
Speaker 1: government's also said is that we will match all of
Speaker 1: the country's donations pound for pound. Soon I spoke as
Speaker 1: the first un AID shipment arrived in Syria loaded with blankets,
Speaker 1: hygiene products and materials to give people temporary shelter. Meanwhile,
Speaker 1: the World Bank will provide Turkey with nearly one point
Speaker 1: eight billion dollars for disaster relief and recovery. The Bank
Speaker 1: of England Governor Andrew Bailey says big increases in public
Speaker 1: sector pay will add to inflate and if they aren't
Speaker 1: offset by tax increases. Speaking to the Treasury Committee in Parliament,
Speaker 1: Bailey said that even with falling energy costs, inflationary risks remain.
Speaker 1: If you've got those powerful sort of downside forces, why
Speaker 1: are you raising interest rates again? And the answer for
Speaker 1: me to that question is, I'm very uncertain, particularly about
Speaker 1: price setting and wage setting in this country. We have
Speaker 1: got the largest upside skew on and our forecast that
Speaker 1: we've ever had on inflation. Bank Ofving governor is speaking
Speaker 1: as firefighters called off the threat of strikes after receiving
Speaker 1: an improved pay offer. The Fire Brigades union send its
Speaker 1: members would vote on a seven percent raised back dated
Speaker 1: to last summer, and a further five percent increase from
Speaker 1: this July. Now. China's consumer inflation accelerated last month as
Speaker 1: the lunar New Year holiday stimulated demands. Bulloomberg's Brian Curtis
Speaker 1: has more now From Hong Kong, the CPI rose two
Speaker 1: point one percent from a year earlier. That was in
Speaker 1: line of estimates. Core inflation, stripping out food and energy,
Speaker 1: gained just one percent. In the meantime, the pp I
Speaker 1: fill zero point eight percent as commodity prices lagged. The
Speaker 1: estimate was for a drop of zero point five percent.
Speaker 1: Bloomberg Economics says the pickup in cp I was down
Speaker 1: to higher food prices, not services. As such, the signal
Speaker 1: is underwhelming in Hong Kong, Brain Curtis Bloomberg Daybreak Europe.
Speaker 1: British billionaire Jim Ratcliffe is said to have lined up
Speaker 1: banks including Goldman Sacks, to bankroll a bid to buy
Speaker 1: Manchester United. The source says the banks are prepared to
Speaker 1: fund a takeover offer for the English football club with
Speaker 1: bonds and loans. Bloomberg understands this would include covering Manus
Speaker 1: existing eight hundred million dollars of debt. Shares in the
Speaker 1: company starts this week. On reports, Qutari investors are also
Speaker 1: looking to bid for the clubs that as the latest
Speaker 1: on man United and the potential takeover bid their interesting
Speaker 1: stuff on a day where here at home we saw
Speaker 1: tst he has another record high. Yeah absolutely, this was
Speaker 1: results from astro Zenica Standard charted the help to lift
Speaker 1: share prices in London. I mean the one was an
Speaker 1: our performer losses is quite interesting that it's continuing to
Speaker 1: power higher today, But that's not top of my list
Speaker 1: I think today in terms of the most interesting stories.
Speaker 1: It's a Friday, after all, This one has my attention.
Speaker 1: Um Lux walls, net zero glass. This is all about
Speaker 1: how heat is we know escapes from people's homes through windows.
Speaker 1: Bill Gates is making an investment into this business. I mean,
Speaker 1: look at prominting, what what what? Windows? Are we talking
Speaker 1: about it? But it's known for his success with windows.
Speaker 1: Is now investing in a different kind of windows. As
Speaker 1: one of our our office wags equipped earlier, doesn't mean
Speaker 1: we'll have to upgrade it every year. Ah Yes, very
Speaker 1: funny butt of heat basically from buildings escapes through windows.
Speaker 1: So yeah, really interesting that the billionaire is putting money
Speaker 1: into that. And the other one weekend reads that I like,
Speaker 1: so we know that kind of staying trim can perhaps
Speaker 1: and make you live longer. But now that Columbia University
Speaker 1: is doing a two year long study cutting calories by
Speaker 1: apparently slows aging. So there we are. And it depends
Speaker 1: on where you start from. I would imagine, yes, perhaps
Speaker 1: I think perhaps if you're a normal way, but yeah, anyway,
Speaker 1: if you're slimmer, you get to live longer. I will
Speaker 1: retain judge, reserve judgment on that one. Okay, up next,
Speaker 1: Britain's two billion pounds fraud bill Rams bags can't be
Speaker 1: copied in cyberspace? And Sam are you there? The final
Speaker 1: hours of ft X now the paper review on blue
Speaker 1: Bird Daybreak Europe. The news you need to know from
Speaker 1: today's papers. Go into is here for the newspaper review
Speaker 1: this morning. The headline in the Telegraph reads Britain forced
Speaker 1: to pay Brussels two point three billion pounds over import fraud.
Speaker 1: What's going on? Yes, indeed, Caroline, and good morning to you.
Speaker 1: Just one quick thing. Apparently if you're in a relationship
Speaker 1: you also live longer too, so not just cutting calories.
Speaker 1: So there we are lots of studies all around. But
Speaker 1: let's get back to the story. Actually that's in the
Speaker 1: Telegraph today, Caroline, and the government has paid this huge
Speaker 1: sum of two point three billion pounds to the EU.
Speaker 1: Now this comes after a court rule that Britain had
Speaker 1: actually failed to collect billions as a result of fraud
Speaker 1: on imports, and these came in from China. The newspaper says.
Speaker 1: The European Commission did complain that importers into Britain had
Speaker 1: really escaped a number of customs duties and this has
Speaker 1: all to do with false invoices and artificially low value
Speaker 1: documents for things like Chinese textiles and also footwear. The
Speaker 1: European Court of Justice ruled against the UK, saying it
Speaker 1: had failed to adopt the measures necessary to combat import
Speaker 1: fraud and this is between the years twenty eleven and
Speaker 1: twenty seventeen. And remember at this time Britain was still
Speaker 1: a member of the EU. John Glenn, the Chief Secretary
Speaker 1: to the Treasury, said Britain had maintained that it had
Speaker 1: taken appropriate steps to counter forward throughout the legal proceedings
Speaker 1: that were ongoing. However, he also said the UK has
Speaker 1: increased its measures to prevent a fraud going forward. So
Speaker 1: there we are. We see the battle between the EU
Speaker 1: and the UK government. I mean, it's interesting because it
Speaker 1: was such a huge case. I mean it's more than
Speaker 1: half of all textiles and footwear actually imported into the
Speaker 1: UK from China were below the kind of acceptable levels
Speaker 1: that that that they were meant to be according to Europe.
Speaker 1: But yeah, it was. It was huge affected a lot
Speaker 1: of imports into Britain. Thanks le leantoone to a story
Speaker 1: next which maybe one of the most twenty three stories
Speaker 1: that I can imagine at the Times headline Erma's bags
Speaker 1: wining digital token copyright case. Is it a bag? Is
Speaker 1: it not a bag? Who knows? It isn't a meta broken?
Speaker 1: We don't know, But you know what, I think you're
Speaker 1: completely right. This is a very very modern court battle, Stephen.
Speaker 1: And it's one between the extremely expensive handbags and digital tokens. Okay,
Speaker 1: let me break this down for you. So a digital
Speaker 1: token featuring copies of M's broken bags did infringe the
Speaker 1: fashion houses trademark rights. Now, this is all according to
Speaker 1: a New York jury. The moment has been described as
Speaker 1: a terrible day for artists. The case before a federal
Speaker 1: court in Manhattan was one of the very first disputes
Speaker 1: over the popular non fungible tokens to go all the
Speaker 1: way to trial. So there we are. This is why
Speaker 1: the battle is so modern. Now the French luxury design
Speaker 1: house has been awarded one hundred thirty three thousand dollars
Speaker 1: in damages. And this is for trademark infringement, evolution and
Speaker 1: also skybus squatting, cyber squatting, a term I hadn't heard before. Now,
Speaker 1: you know, these bags are so expensive, and they are
Speaker 1: so so rare, and they retail between seven thousand, five
Speaker 1: hundred and nearly twenty five thousand. But we must remember
Speaker 1: if a rare one has been made, it can sell
Speaker 1: for a whole lot more than that. So I was
Speaker 1: wondering if meta bookins they're no longer on the market,
Speaker 1: but would they have been cheaper? But you can't show
Speaker 1: them off. So I was a bit like you screen.
Speaker 1: So do you walk around with your screen saying I've
Speaker 1: got a meta book and on a night just split
Speaker 1: it in your home? Yes, this is true, further proving
Speaker 1: than in cyberspace, only intellectual property lawyers can hear you scream.
Speaker 1: Just last you though this story is a long reading
Speaker 1: the ft B. It's really interesting, Sam, are you there?
Speaker 1: The bizarre and brutal final hours of FTX. I actually
Speaker 1: printed it out and I think it's a six page
Speaker 1: read on both sides of the paper, So if you've
Speaker 1: got a bit of time, please do reader. But Stephen
Speaker 1: Carroll really inspired me when it came to the story,
Speaker 1: because reading six pages on a Friday morning it's not
Speaker 1: very easy. But this is an amazing account of what
Speaker 1: happened during the collapse of the crypto firm f t X.
Speaker 1: We have been covering this extensively on Bloomberg Now. Joshua
Speaker 1: Oliver has spoken to the former x f t X employees,
Speaker 1: people with real first hand knowledge of the events that
Speaker 1: sent it really spiraling, and he's also spoken to Sam
Speaker 1: bankmun Freed himself. Now, the article does include so many
Speaker 1: messages from slack signal and other messaging platforms from Sam
Speaker 1: bankmun Freed and other senior figures in the business. There
Speaker 1: were really some incredible details, including how when reports of
Speaker 1: troubles at f t X did start spreading, staff for
Speaker 1: rushing to leave their offers, throwing out clothes with the
Speaker 1: company's logo on because there were rumors people we have
Speaker 1: been searched at airports. One employee said it was the
Speaker 1: most crazy head take twenty four hours of my life.
Speaker 1: I felt like my world was falling apart. F t
Speaker 1: X was not just a job for me and for
Speaker 1: other people. F t X was my life, and I
Speaker 1: think this is something we do need to take into
Speaker 1: account when we read this, real people were working there
Speaker 1: and this has impacted their life and investors too. And
Speaker 1: the article also saw an exchange between s PF himself
Speaker 1: SPF and CZ, his arch rival. We see these text
Speaker 1: message exchange when Sam bankmun Freed asks about the buyout
Speaker 1: deal and CZ, Sam's biggest arch rival just basically said,
Speaker 1: we can't continue with there's too many issues. Real short
Speaker 1: reply to something that had been so eagerly anticipated and
Speaker 1: also another nice thing in this article talks about Sam
Speaker 1: bankman Fried's life and just how normal it seemed when
Speaker 1: the journalist Joshua Oliver went over to his house. Apparently
Speaker 1: there were hummingbirds around the fountain and his parents were
Speaker 1: extreme degeneration welcoming. Yeah, I mean, look, I think it's
Speaker 1: it's a great bit of reporting in the ft Um.
Speaker 1: The thing is it's all going to court, and so
Speaker 1: that that's the issue. I think it's what's what happens
Speaker 1: in the court case is going to be a very
Speaker 1: fascinating Thank you so much the against for our newspaper review. Now,
Speaker 1: the latest inflation figures from China give us an indication
Speaker 1: of the picture for consumer demand in the world second
Speaker 1: largest economy, following countries easing of its COVID zero restrictions.
Speaker 1: But what does it feed into the global inflation picture
Speaker 1: and the demands on central banks. Let's bring in our
Speaker 1: te Frates correspondent Garfield Reynolds. Garfield, great to have you.
Speaker 1: Inflation picking up in China. What does it mean for
Speaker 1: the rest of the world. Well, I mean I moved
Speaker 1: a couple of things. You're on. On the positive side,
Speaker 1: it does you know, speak to the idea that China
Speaker 1: coming out of COVID can look forward to a stronger
Speaker 1: growth profile than had been the case. And that's something
Speaker 1: that a lot of people have been encouraged by, uh,
Speaker 1: you know, the idea that the reopening trade would restore
Speaker 1: that whole of the global economy that China had created.
Speaker 1: It does also, though, add to the potential that inflation
Speaker 1: comes bouncing back despite the concerns that you know, despite
Speaker 1: the optimism that the slowdown we've seen in inflation rates
Speaker 1: could extend. So that's something to keep an eye on.
Speaker 1: One slightly positive factor there is that the producer prices
Speaker 1: in China, and that is a key part of the
Speaker 1: way that China feeds into global inflation is what's going
Speaker 1: on with its manufacturing sector. They fell zero point eight percent,
Speaker 1: which was a bigger than expected decline. So the inflationary
Speaker 1: impulse out of China might not be too strong. And
Speaker 1: I think in fact that, to be honest to FED
Speaker 1: and so on, a far more worried about what's going
Speaker 1: on with services and the potential for um, you, wage
Speaker 1: wage inflation, for a wage price spiral, and that's something
Speaker 1: that's far more about services industry in the US, bottlenecks
Speaker 1: and and and other, and the long term impact of
Speaker 1: the pandemic. Garford. Just speaking of the US, the treasury
Speaker 1: yield curve has moved significantly. It's the most inverted since
Speaker 1: the eighties. There seems to be a real rethink in
Speaker 1: markets now they're getting the message from a hook ish FED.
Speaker 1: How do you see it briefly, Well, I mean a
Speaker 1: lot of ways markets have been, you know, not totally
Speaker 1: out of that with the FED, especially when it comes
Speaker 1: to long end the short and there's been a bit
Speaker 1: of the optimism, like I said about the idea of
Speaker 1: FED you could ease off sooner rather than later. But
Speaker 1: you know, the jobs numbers last week really didn't help
Speaker 1: on that front, or last month, and the curve has
Speaker 1: been about this inverted for a while. It's also just
Speaker 1: gone past a hundred and fifty trading days, which was
Speaker 1: how long the yield curve in version lasted back in
Speaker 1: two thousand and six, two thousand and seven in the
Speaker 1: lead up to the two thousand and eight crisis. So
Speaker 1: we've now got the longest inversion since the one that
Speaker 1: ended in two thousand. The bad news is that back
Speaker 1: in the nineteen eighties. That era again, we keep mentioning it.
Speaker 1: Back then, we had inversions that lasted two hundred and
Speaker 1: seventy and four hundred plus days. This is Bloomberg Daybreak Europe,
Speaker 1: your morning brief on the stories making news from London
Speaker 1: to Wall Streets and beyond. Look for us on your
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Speaker 1: you get your podcasts. You can also listen live each
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Speaker 1: Europe