BOJ Ends Period of Detrimental Charges, Nvidia’s Original AI Processor | The Pulse with Francine Lacqua 03/19

>> NEWSMAKERS AND MARKETMOVERS, THIS IS “THE PULSE WITH FRANCINE LACQUA. ” FRANCINE:GOOD MORNING, EVERYONE, AND WELCOME TO “THE PULSE.”I'M FRANCINE LACQUA IN LONDON. THE BANK OF JAPAN IS THE MOSTAGGRESSIVE MONETARY STIMULUS PROGRAM IN HISTORY, BY HIKINGFOR THE FIRST TIME IN 17 YEARS. NVIDIA UNVEILS NEW CHIPS,DOMINANCE AND AI COMPUTING, A POSITION THAT HAS ALREADY MADEAT THE WORLD'S THIRD-MOST VALUABLE BUSINESS.UBS'S HISTORIC TAKEOVER OF CREDIT SUISSE, WE TAKE A LOOKAT HOW THE COMPANY HAS PUSHED.

ITS MARKET CAP PASSED $100BILLION TO THE HIGHEST LEVEL IN ALMOST 16 YEARS.OUR EXCLUSIVE CONVERSATION WITH THE CHIEF EXECUTIVE OFHONEYWELL ON HOW THE COMPANY IS REPAIRING FOR THE FUTURE OFAUTOMATION, AVIATION, AND ENERGY.FIRST, WHEN IT COMES TO CENTRAL BANKS, THE MOVES THAT WE SAW INJGB'S AND YEN. FED U.S. FUTURES PRETTY MUCH UNCHANGED,A LOT OF WHAT WAS PRICED IN, FOR EXAMPLE, FROM NVIDIA, THATIS PLAYING OUT OF THE MARKETS NOT SO MUCH, NVIDIA PRETTY MUCHFLAT PREMARKET.

THE BIG ONE IS THE BANK OFJAPAN TO AFTER 17 YEARS — AND I'M ACTUALLY QUITE SURPRISEDTHE MARKET IS SO COOL ABOUT THIS, BECAUSE THE BOJ DID AGREAT JOB OF TELEGRAPHING IT, SO EVERYONE WAS NICE ANDPREPARED FOR IT, BUT THIS IS THE FIRST HIKE IN 17 YEARS BYTHE BOJ. IT HAS BEEN WIDELY EXPECTED.THE GOVERNOR STRUCK A NEUTRAL NOTE AT THE NEWS CONFERENCE,SAYING THERE'S A GOOD CHANCE THE GO WILL NOT BE HIT,SCRAPPING THE YIELD PROGRAM, BUYING SOME LONG-TERMGOVERNMENT BONDS.

THEY ARE IN THE MARKET. OVERALL, YOU CAN SEE THE YEN, 150.35. THE U.S. 10-YEAR AGAIN WAITING FOR THATFED, AT 4.3183. FOR MORE ON THE MARKETS, THEBOJ, WE ARE A — WE ARE JOINED BY MADISON FALLER, GOOGLEINVESTMENTS — GLOBAL INVESTMENT STRATEGIST AS JPMORGAN VANKE, AND PAUL JACKSON. DOESN'T JUST GO TO SHOW THAT IFTHE CENTRAL BANK TELEGRAPHS IT CLEARLY TO THE MARKET, YOU CANPRAY MUCH GET YOURSELF OUT OF ANY SITUATION — PRETTY MUCHGET YOURSELF OUT OF ANY.

SITUATION? [LAUGHTER] MADISON: I HAVE BEEN WAITING TO WATCH ITUNFOLD, AND FROM MY PERSPECTIVE, IT FEELSEMBLEMATIC, BECAUSE IT DOES FEEL LIKE WE ARE NOW IN A NEWERA. MAYBE THIS TIME IS DIFFERENT FOR JAPAN, BUT I THINK TO YOURPOINT, THE MEETING BY ITSELF IS NOT QUITE A GAME CHANGER IN THESENSE THAT, ONE, IT WAS VERY WELLTELEGRAPHED, SLOWING SOME OF THE MARKET MOVES WE ARE SEEING,AND ALSO, YOU KNOW, EVEN THOUGH.

WE ARE SEEING THE RATE HIKE, WEARE SEEING ACCOMMODATIVE LEADINGS — LEANINGS. FRANCINE:LET'S GO TO PAUL JACKSON. WHEN YOU SEE WITH THE BOJ HADTO SAY, IT PLEDGED TO KEEP BUYING LONG-TERM GOVERNMENTDEBT. FOR HOW MUCH LONGER AND HOWMUCH? PAUL: HEY, LOOK, I DON'T THINK THEBANK OF JAPAN IS EVER GOING TO STOP BUYING GOVERNMENT BONDS,TO BE HONEST. I THINK THERE'S TOO MUCH IN STAKE IN TERMS OFIT JAPANESE GOVERNMENT, IT'S HUGE DEBT.GOTTA ALWAYS KEEP AN EYE ON.

THOSE BOND YIELDS.BUT LOOK, WE'VE HEARD GOVERNOR YOU ETA — UEDA REPEAT THISTHROUGHOUT HIS PRESS CONFERENCE. THIS IS THE END OF THE EASINGOF ANOTHER DIMENSION, THE UNPRECEDENTED EV CAMPAIGN THATGOVERNOR KURODA, THE PREVIOUS GOVERNOR, BROUGHT IN.WE ARE AT A TURNING POINT. HAVE THE MOST TODAY BEEN HUGEIN ITSELF? WELL, NO, IT IS OBVIOUSLY NOTTHAT BIG, BUT THERE'S A LOT OF TALK THAT IT IS ONE AND DONE,AND HE'S NOT GOING TO BE RAISING INTEREST RATES AGAINTHIS YEAR.

I WOULD SAY, HEY, BE CAUTIOUSON THAT ONE. WE'VE HEARD GOVERNOR UEDA GIVEIN THE PAST, BUT HE HAS ACHIEVED A LOT MORE IN 11MONTHS THAN ANYONE EXPECTED, AND I WAS CERTAINLY CAUTIONAGAINST THE VIEW THAT HE HAS DONE FOR THIS YEAR. FRANCINE:YEAH. MADISON, WHAT IS YOUR TAKE,GIVEN WE HAVE VERY FEW CLUES ON FURTHER HIKES, IF THE MARKETMISPRICING IT? MADISON: IT IS A FAIR QUESTION, AND IWOULD BE RETICENT TO SAY THAT IT IS JUST, YOU KNOW, ONE ANDDONE WHEN IT COMES TO THE RATE.

HIKE WE JUST SAW. .I THINK IT IS POSSIBLE WE COULD SEE FURTHER MOVES LATER THISYEAR, BUT I DO THINK THE BOJ WILL REMAIN VERY CAUTIOUS, ANDIN TERMS OF COACH, OF COURSE, IT WAS — IN TERMS OF ITSAPPROACH, OF COURSE, IT WAS WELL TELEGRAPHED.TO SAY THE 2% INFLATION WILL BE ACHIEVED, IT IS GIVING A SAYTHAT IT IS ALREADY ACHIEVED. WE HAVE NOT SEEN THAT REALLYFLOW THROUGH INTO HIGHER CONSUMER SPENDING, SO WE NEEDTO WATCH THAT DOMESTIC DEMAND AND THE BUSINESS INVESTMENT INCAPEX DATA TO REALLY GIVE US A.

CLEAR SENSE FOR HOW SUCCESSFULJAPAN HAS REALLY BEEN IN THE INFLATION ECONOMY. FRANCINE: HOW DIFFICULT, YOU KNOW, WEHAVE THE WAYS NEGOTIATIONS. WE ARE NOW OUT OF NEGATIVERATES. HOW DIFFICULT WILL IT BE TOREACH 2% AND STAY THERE? PAUL:HEY, WELL, IS SHE ASKING ME? I CAN TELL YOU THAT THE POINT OF THE POSITIVE VIRTUAL CYCLEPRICED INTO WAGE CONSUMPTION, YOU ARE RIGHT, THIS IS NOT YETPROVEN.

WE ARE NOT YET SURE THAT THECYCLE IS STRONG. IT IS NOT FREE TO BECONSUMPTION YET. . WE SEE THAT IN GP — GDPFIGURES, THREE-QUARTERS AND CONSUMPTION FORMING.IT IS STILL TO BE PRODUCED THAT WE ARE AT THIS VIRTUOUS CYCLE.HOWEVER, I THINK THAT GOVERNOR UEDA HAS A MUCH MORECONVENTIONAL POLICY MINDSET THAN HIS PREDECESSOR, KURODA.THAT IS THE POINT PEOPLE NEED TO HAVE AT THE BACK OF THEIRMINDS WHEN THEY ARE THINKING ABOUT HOW MUCH FACE HE WANTS TOCREATE WITH HIS POLICY TOOL.

FRANCINE:PAUL, IS THE BIGGER UPWARD PRICE RISK SOMETHING THAT IS APOSSIBILITY FOR THIS YEAR, OR IS THAT THE STORY FOR 2025.PAUL: HEY, THIS IS THE TRICKY PART.WE HAVE A LOT OF COMPLICATIONS IN THESE FIGURES, GOVERNMENTSUBSIDIES. HEY, YOU KNOW, IF THEGOVERNMENT PULLS AWAY THESE SUBSIDIES, YOU WILL HAVE PRICEIMPACTS THERE. ALREADY WE ARE EXPECTING QUITE A BUMP AND INFLATION ANDFEBRUARY ON A SUBSIDY.

DISTORTION THAT IS GOING TOTAKE IT PROBABLY TO ABOUT 2.8%. HEY, YOU KNOW, WITH THOSE KINDSOF NUMBERS IN APRIL, THERE IS A RISK THAT THAT UPWARD TREND ININFLATION IS GOING TO LOOK STRONGER THAN IT DOES RIGHT NOW.AND, HEY, UEDA WAS ASKED THIS SPECIFICQUESTION, IF THE FORECAST, THE RISKS A STRONGER IN APRIL,WOULD YOU HAVE TO RAISE RATES? HE SAID HEY, LOOK, IF THE RISKON PRICES IS OUTPERFORMING WHAT WE EXPECT, WE WOULD HAVE TORAISE RATES. FRANCINE: MADISON, WHAT DOES THIS MEANFOR THE FED?.

AGAIN, THE DYNAMIC, JAPANESEAND U.S. RATES ARE SET TO CONTINUE?MADISON: I THINK THAT IS RIGHT. U.S.RATES ARE STILL IN THE DRIVER'S SEAT FROM THAT PERSPECTIVE.THE YIELD DIFFERENTIAL REMAINS QUITE WIDE, EVEN WITH THIS RATEHIKE. WHEN WE TAKE THAT IN TANDEMWITH WHAT WE’'VE SEEN FROM THE FED, WE ARE LOOKING AT THE IDEATHAT RATE CUTS NOW FEEL LESS URGENT THAN THEY PERHAPS DID ATTHE START OF THE YEAR. IT IS GIVING US RESILIENCYWE'VE SEEN IN THE ECONOMIC.

GROWTH DATA, THAT WE SEEN ININFLATION, AND WE THINK ROUGHLY 75 BASIS POINTS WORTH OF CUTSARE REASONABLE FOR THE COURSE OF 2024, AND WE WILL BE WATCHING THAT MEDIUM FOR 2044AS — THAT MEDIUM DOT AS WE HEAD INTO 2024.THERE'S A BALANCE RISK FROM MY PERSPECTIVE WHEN YOU'RE IN ASOFTER LANDING, PROGROWTH ENVIRONMENT.IT IS STILL WITHIN EQUITIES. AGAIN YOU HAVE TO THINK ABOUTTHE FACT THAT THE FED IS CUTTING OUT, BECAUSE YOU ARE INA MORE PROTRACTED DOWN GROWTH,.

BECAUSE DEFLATION IS INACCELERATING. THAT LEADS ME TO BECONSTRUCTIVE. BUT THAT FIRST MOVE NEEDS TOCOME FROM STEPPING OUT OF CASH. A LOT OF INVESTORS ARE STILLSITTING ON THE SIDELINE, WITH FIELDS STILL QUITE HIGH, YOUPROBABLY DON'T HAVE TO RUN OUT OF CASH, BUT PERHAPS YOU SHOULDSTILL JOG. THERE ARE OTHER OPPORTUNITIESACROSS THE FIXED INCOME CURVE, BUT I THINK IN APRIL RISKENVIRONMENT, I WOULD STILL — IN A PRO RISK ENVIRONMENT, IWOULD STILL FAVOR STOP.

FRANCINE:OK, MADISON FALLER, JPMORGAN CHASE, AND PAUL JACKSON. COMING UP, NVIDIA UNVEILS BLACKWELL. WE HAVE DETAILS NEXT. TAKE A LOOK AT THE SHARE PRICE.UNILEVER PLANS TO SHED ITS ICE CREAM BUSINESS, THAT INCLUDESBRANDS SUCH AS BEN & JERRY'S, AS THE EXECUTIVE STREAMLINESTHE FIRM BY CUTTING 7500 JOBS. SO UNILEVER IS ACTUALLY ON THEWAY UP. WE WILL HAVE MORE ON UNILEVERSHORTLY. THIS IS BLOOMBERG. ♪ JENSEN: THE INDUSTRY IS BEINGTRANSFORMED, NOT JUST OURS.

BECAUSE OF THE COMPUTERINDUSTRY, COMPUTERS, IT IS THE SINGLE MOST IMPORTANT INDUSTRYOF SOCIETY TODAY. FUNDAMENTAL TRANSFORMATIONS INCOMPUTING AFFECT EVERY INDUSTRY. FRANCINE:WELL, NVIDIA CHIEF EXECUTIVE JENSEN HUNG SPEAKING AT THECOMPANY'S ANNUAL AI CONFERENCE. IT IS EXPANDING IS DOMINANCE INAI COMPUTING. STILL WITH US IS MADISON FALLERFROM JP MORGAN CHASE AND BLOOMBERG'S ALEX WEBB.THAT IS IN, THANK YOU FOR STICKING AROUND.WHEN YOU LOOK AT NVIDIA, HE.

SEEMS TO BE A TEAM MAKER, THEOPRAH OF THE AI WORLD. THERE WERE CONCERNS HE COULDNOT KEEP UP WITH THE GROWTH SO FAR, OR IS IT THAT ANALYSTEXPECT TOO MUCH FROM HIM? ALEX: IT IS KIND OF THE ADAGE, BUYTHE RUMOR, SELL THE NEWS. IN TERMS OF TECHNOLOGY, IT WASIMPRESSIVE, AND EVEN WITH APPLE, YOU KNOW, WITH AUNVEILED THE VISION PRO, THE STOCK ACTUALLY LOST SOMETHINGLIKE $80 BILLION WORTH OF — $18 BILLION WORTH OF VALUE.WITH A $3 TRILLION COMPANY, THAT IS JUST A BLIP, BUT WHENPRODUCTS ARE UNVEILED, PEOPLE.

KNOW WHAT HIS COMPANY, ANDMAYBE THERE'S A LITTLE BIT OF PROFIT TAKING. FRANCINE:SO WHAT WAS YOUR MAIN TAKE AWAY FROM YESTERDAY, ALEX? ALEX:I MEAN, THERE ARE TWO THINGS BASICALLY.THERE'S A NEW CHIP OBVIOUSLY SETTING A NEW STANDARD.IT IS GOING TO BE HARDER FOR WOULD-BE COMPETITORS TO CATCHUP, TO KNOW AS THEY ARE TRYING TO CATCH UP WITH WHAT NVIDIAWAS ALREADY SELLING LAST YEAR, AND IS ALREADY MOVING ONTO THENEXT THING. THAT DOES GIVE THEM A GREATDEAL OF PRICING POWER.

ONE OF THE REASONS WE SAW SUCHA SURGE OF LAST YEAR WAS NOT BECAUSE THEY WERE SELLING MORECHIPS BUT BECAUSE THEY WERE ABLE TO CHARGE PREMIUM PRICESFOR THOSE CHIPS. AS MORE SUPPLY COMES ONLINE,THERE'S SOME CONCERN MAYBE THAT WOULD REDUCE THE PRICING POWER.BY CONTINUING TO INNOVATE AND INTRODUCING THIS OUTCOME OFWHICH, YOU KNOW, IS CONSIDERABLY PRI FASTER, THEYARE ABLE TO MAINTAIN THAT HIGH PRICING TO GET MORE PROBABLY,WHICH, OF COURSE, HELPS SUPPORT THE PRETTY PUNCHY EVALUATION WEHAVE SEEN. FRANCINE:.

MADISON, WHAT DOES THIS MEANFOR YOUR PORTFOLIO BUILDING, AGAIN, DO YOU LOOK AT THEMAGNIFICENT SEVEN? IS THAT SOMETHING YOU WANT TOBE INVESTED IN, OR DO YOU LOOK AT IT MORE HOLISTICALLY, LIKEAI WILL TRANSFORM ALL INDUSTRIES? MADISON:I THINK IT IS BOTH PAID I THINK THERE'S A LOT OF DISPERSIONWITHIN THAT. YOU DO NEED TO BE SELECTED.FOR INSTANCE, NOT ALL MAGNIFICENT SEVEN NAMES AREEQUAL. YOU THINK ABOUT THE EARNINGSSOURCE POTENTIAL WITHIN THE.

MAGNIFICENT SEVEN, BOTH, YOUKNOW, IN THE YEAR AHEAD, BUT WHAT WE ALREADY SAW LAST YEAR,IT IS SOMETHING WE WANT TO MAKE SURE WE HAVE EXPOSURE TO ANDPORTFOLIOS. TO YOUR POINT, WE ARE SEEINGBROAD INDUSTRY ADOPTION. WHAT WE ARE SEEING THERE IS HOWDOES THAT TRANSLATE INTO THE PROPERTY OF THE — THEPRODUCTIVITY DATA, HOW DOES IT TRANSFORM ACROSS SECTORS?WE DO ANTICIPATE THAT INVESTMENT IN AI SHOULDCONTRIBUTE TO REAL REVENUE GROWTH PROBABLY SOONER THANPEOPLE EXPECT. FRANCINE:.

IS THE 60/40 PORTFOLIO STILLALIVE? MADISON: I VERY MUCH THINK SO.I THINK I HAVE TO SAY THAT FROM A MULTI-ASSET CLASS INVESTMENTPERSPECTIVE. WHEN YOU THINK ABOUT CHANGES WEHAVE SEEN OVER THE COURSE OF THE LAST DECADE, YOU'VE SEEN ITHINK BONDS ARE VERY MUCH BACK. WE HAD A LITTLE BIT OF ASTRUGGLE OVER THE PAST THREE YEARS AND WE'VE HAD INTERESTRATE VOLATILITY. I THINK WITH INCOME RATES ASHIGH AS THEY ARE NOW, YOU CAN NOW ARGUABLY ACHIEVE THE SAMERETURN YOU WOULD HAVE PERHAPS.

5, 10 YEARS AGO WITH LESS RISKTODAY. SO I THINK FROM THATPERSPECTIVE, YOU KNOW, YOU ARE LOOKING AT THE BENEFITS OFHAVING A 60/40 PORTFOLIO. WITH THAT SAID, I DO THINK, YOUKNOW, IT WOULD BE PRUDENT TO BOOSTER THAT WITH ALTERNATIVES,SO WHEN YOU ARE IN AN INFLATIONARY ENVIRONMENT, YOUCOULD LOOK AT INFRASTRUCTURE AND REAL ASSETS TO PROVIDE SOMEOF THAT PROTECTION, AND, OF COURSE, PRIVATEMARKETS OFFER THE OPPORTUNITY TO CAPITALIZE ON SOME OF THOSEMORE NICHE OPPORTUNITIES THAT.

PERHAPS YOU CANNOT ALWAYSUNLOCK WITHIN PUBLIC MARKETS. FRANCINE:THE BANK OF ENGLAND, THERE'S NOT MUCH EXPECTED IN TERMS OFPOLICY CHANGE. DO YOU START WORRYING ABOUT THEWEAKENING OF THE LABOR MARKET? MADISON:MADISON:I THINK IT IS A FAIR POINT. OUT OF ALL OF THE DEVELOPEDWORLD, CENTRAL BANKS, YOU KNOW, WHEN YOU THINK ABOUT THE BOE,THE FED, AND THE ECB, WE THINK THE BOE IS PROBABLY THE LAST TOCUT. IT IS PROBABLY GOING TO HAPPENTOWARD THE BACK HALF, THE END.

OF THIS YEAR, IN OUR VIEW.OF COURSE THE RISK OF HOLDING ONTO HIGHER RATES FOR TOO LONGCREATES THE POTENTIAL FOR WEAKENING THE LABOR MARKET.BUT AT THE SAME TIME, YOU ARE STILL LOOKING AT INFLATION THATIS STILL QUITE HIGH, EVEN THOUGH IT IS PAST ITS PEAK.WE ARE HEADING OFF THAT TENSION AND THAT BALANCE THAT ALLCENTRAL BANKS ARE GRAPPLING WITH AT THE MOMENT. FRANCINE:THANK YOU BOTH FOR DOING THIS. MADISON FALLER FROM JP MORGANPRIVATE BANK, AND ALEX WEBB. COMING UP, WE CHAT WITH THEFORMER DIRECTOR OF CHATHAM.

HOUSE, BUT ALSO THE AUTHOR OFTHE NEW BOOK “THE NEW COLD WAR.” THAT IS NEXT, AND THIS ISBLOOMBERG. ♪ FRANCINE:WELL, TENSIONS BETWEEN CHINA AND THE UNITED STATES SHOW NOSIGNS OF LETTING UP, AS THE TWO SIZES FAR OVERAREAS LIKE DEFENSE AND TECHNOLOGY AND THEIR RESPONSETO TWO WARS ON THE GLOBAL STAGE. ROBIN NIBLETT IS THE DIRECTOROF CHATHAM HOUSE AND AUTHOR OF THE NEW BOOK “THE NEW COLD WAR.”ROBIN JOINS US NOW. FIRST OF ALL, IT IS AGOOD-LOOKING BOOK.

WAS THAT THE HARDEST PART,ACTUALLY GETTING A COVER FOR THE BOOK? SIR ROBIN:WORKING SO HARD. THE FOLKS DELIVERED A COVER,SAID WHAT YOU THINK, I SAID IT LOOKS GREAT. FRANCINE:I THOUGHT YOU CHOSE THE COVER. THIS GOES OUT TO THE COLD WARERA. YOU ARE TRYING TO DROP PARALLELS. CHINA IS NOT LIKE THE U.S., ANDTHE U.S. IS NOT LIKE IT USED TO BE.SIR ROBIN: WE THINK IT IS A GEOPOLITICALCOMPETITION ALONE, RISING POWER.

TAKES ALL, THE FRAMERS SAIDTHESE TRAPS, BUT AS I POINT OUT IN THE BOOK, THERE'S A REALLYIMPORTANT UNDERLYING THEME, WHICH IS THE IDEOLOGICALCONTEST BETWEEN THE TWO SIDES. CHINA IN PARTICULAR BELIEVESTHAT CHECKS AND BALANCES, WHAT WE ARE USED TO IN DEMOCRATICSOCIETIES, ARE BAD FOR GOVERNMENT.THE UNITED STATES, WITH ITS ALLIES, OBVIOUSLY SUPPORTCHECKS AND BALANCES, DEMOCRATIC GOVERNMENT.IT MIGHT BE MESSY, BUT AT LEAST TO GET LONG-TERM, SUSTAINABLEANSWERS.

EACH SIDE HAS REALIZED THEOTHER IS A THREAT TO ITS SYSTEM. CHINA REALIZED IT EARLIER.THEY STARTED BACKING AWAY. I'M TALKING ABOUT REVERSINGINTO A COLD WAR. THEY STARTED BACKING AWAY FROMTHE U.S. IN PARTICULAR A LONG TIME AGO,EVEN FROM TRADE. I THINK THE U.S. IS CATCHING UP.FRANCINE: THERE ARE TWO THINGS, FIRST OFALL, YOU UNDERSTAND CHINA QUITE INTIMATELY BECAUSE OF ALL YOURYEARS AT CHATHAM HOUSE. BUT WE ON THE BRINK?WE HAVE A U.S. ELECTION.

IF, YOU KNOW, THE WEST PUSHESBACK AGAINST CHINA FOR LONG, WHAT WILL THEY DO? SIR ROBIN:WELL, I THINK THE SIMPLE ANSWER IS IN A CONTEST, BETWEEN RUSSIAAND UKRAINE AS WELL, THE DANGERS IN THE LAST COLD WARWAS MISSING CLARIFICATION, NOT UNDERSTANDING THE PURPOSE OFTHE OTHER SIDE, FOR EXAMPLE, AROUND TAIWAN, THIS IS ACLASSIC AREA WHERE CHINA IS TRYING TO PUT DOWN REDLINES.CLARITY BECOMES ESSENTIAL TO OPEN LINES OF COMMUNICATIONBECOME ESSENTIAL. THE PROBLEM IS, WE ARE IN THEEARLY STAGES OF THIS COLD OR.

IT IS LIKE A — THIS COLD WAR.IT IS LIKE A PRETTY CUBAN MISSILE CRISIS.THE SOUTH CHINA SEA WORRIES ME MORE THAN THE TIME ONE CRISIS.FRANCINE: I KNOW PRESIDENT XI HAS CERTAINCHARGES FOR 2049, TO BE THE WORLD'S SUPERPOWER.DO WE ACHIEVE THAT, GIVEN WHAT WE'VE SEEN THE LAST FEW YEARS?SIR ROBIN: HE'S TALKING ABOUT ACHIEVINGREJUVENATION, BEING A PROSPEROUS COUNTRY, AMBITIOUSGOALS, BY 2049, HOWEVER, THE COMMUNIST PARTY NEEDS TO BELEGITIMIZED IN ITS CONTINUING.

RULERSHIP OF CHINA, AND THATMEANS TAIWAN FOLDING BY THAT TIME. A LOT OF TALK ABOUT 2027.I THINK WHAT CHINA IS TRYING TO DO IS MAKE SURE IT IS NOTDEPENDENT UPON ENEMIES. YOU SEE CHINA PULLING BACK ITSTECHNICAL LINKAGES WITH UNITED STATES, AND VICE VERSA,OBVIOUSLY. I THINK CHINA UNDER XI JINPINGIS WILLING TO SUFFER ECONOMICALLY FOR A PERIOD INORDER TO BE MORE SECURE IN THE LONG TERM. FRANCINE:ROBIN, THANK YOU SO MUCH. ROBIN NIBLETT STAYS WITH US.WE WILL TALK ABOUT WHERE THE.

NEW POLITICAL ENVIRONMENTLEAVES THE U.K. THAT IS COMING UP SHORTLY, ANDTHIS IS BLOOMBERG. ♪ FRANCINE:THE BANK OF JAPAN ENDS THE MOST AGGRESSIVE MONETARY STIMULUSPROGRAM IN MODERN HISTORY BY HIKING RATES FOR THE FIRST TIMEIN 17 YEARS. NVIDIA UNVEILS NEW CHIPS AIMEDAT EXTENDING THE COMPANY'S DOMINANCE OF AI COMPUTING.ON THE FIRST YEAR ANNIVERSARY OF UBS'S HISTORIC TAKEOVER OFCREDIT SUISSE WE LOOK AT HOW THE COMPANY HAS PUSHED ITSMARKET CAP PAST $100 BILLION TO.

THE HIGHEST LEVEL IN ALMOST 16YEARS. WELCOME TO “THE PULSE.” ROBIN NIBLETT IS STILL WITH USFOR MORE ON HIS BOOK “THE NEW COLD WAR.”LET'S DISCUSS WHAT THE NEW REALITY MEANS FOR WESTERNPOWERS AND THE FUTURE OF THE U.K..CONGRATULATIONS ON A BOOK THAT TRIES TO EXPLAIN THECOMPLICATED WORLD WE LIVE IN. WHERE DOES THE EU SIT ON THIS? BETWEEN THIS BIG RIVALRY, THEEU IS STRUGGLING TO FIND ITS OWN VOICE. ROBIN:THE EU WOULD BE STRUGGLING MORE.

IF IT WERE NOT FOR RUSSIA'SINVASION OF UKRAINE. THE POSSIBILITIES TO DIVIDEEUROPE AWAY FROM THE U.S. IN THE CONTEST WITH CHINA WOULDHAVE BEEN MORE POSSIBLE IF PUTIN HAD NOT INVADED UKRAINE.CHINA IS FORCED TO MAKE A CALL ONE WAY OR THE OTHER.FOR CHINA RUSSIA LOSING IS THE WORST OUTCOME.THEY DO NOT NEED RUSSIA TO WIN, BUT IF RUSSIA LOST CHINA WOULDBE LEFT ALONE AGAINST THE UNITED STATES AND THE RESURGENTWEST. BY LICKING THOSE SIDES TOGETHER THE EUROPEANS HAVEREALIZED WE RELY MORE ON.

AMERICA FOR SECURITY.EVEN THOUGH THEY ARE SKEPTICAL ABOUT SOME OF THE U.S.STEPS TO TRY TO EXTRACT CHINA FROM THEIR ECONOMY, WE HAVE RUNTRADE SERVICES OVER TIME, IT IS A DIFFERENT TYPE OF CONTEST.FOR EUROPEANS RIGHT NOW IT IS A MATTER OF TRYING TO WORK OUTWILL BIDEN WIN OR WILL TRUMP WIN?IF TRUMP WINS THE RELIANCE ON THE UNITED STATES BECOMES MORERISKY. FRANCINE: YOU HAVE A CHAPTER ON THISRENEWED TRANSATLANTIC PARTNERSHIP. CAN THE U.S.SUSTAIN IT? WE TALK ABOUT U.S.

EXCEPTIONALISM.THEY ARE VERY DIVIDED INTERNALLY.CAN THEY AFFORD ALL OF THIS? ROBIN: THE U.S.CAN AFFORD ALL OF THIS IN TERMS OF MONEY.THEY CAN AFFORD 40 OR 50 BILLION OR $60 BILLION TOSUPPORT UKRAINE. IF YOU LOOK AT THE MAP OFSPENDING AND EXPENSE, ESPECIALLY AS THE BULK OF THATMONEY IS SPENT INSIDE THE UNITED STATES.THE QUESTION IS CAN THEY AFFORD IT PSYCHOLOGICALLY.AS AMERICA WAS STARTING TO.

THINK WE NEED TO FOCUS MORE ONOURSELVES, THAT WAS THE SOURCE OF THE FIRST TRUMP VICTORY.BIDEN SAYS I HAVE A BETTER PLAN FOR REBUILDING AMERICA. INSTEAD AMERICAN VOTE ARESEEING THE UNITED STATES PULLED INTO THREE CONFLICTSSIMULTANEOUSLY. IT IS ABOUT MONEY AND POLITICALSUPPORT AND THAT IS WHAT EUROPEANS ARE DOING.EUROPEANS ARE SAYING WE WILL PUT MORE SKIN IN THE GAME, WEWILL DO THE THING THAT TRUMP ASKED US TO DO SO YOU WILLSTICK WITH US. FRANCINE:.

IS THIS THE END OFMULTILATERALISM AND WHERE DOES IT LIVE? IN THE U.K.WE HAVE AN ELECTION THIS YEAR. ROBIN:IT IS MULTILATERALISM IF YOU'RE TALKING ABOUT A U.N.SYSTEM ON HOLD FOR THE NEXT 20 OR 30 YEARS.CHINA SEES MULTILATERALISM AS A USEFUL PROP.THEY THINK THEY ARE IN COMPETITION WITH THE G7 ANDTHAT IS THE WAY THEY ARE SEEING THE WORLD.FOR A COUNTRY LIKE THE U.K., IT WILL BE MORE DIFFICULT FOR THEU.K.

IF THE WORLD WAS STABLE BECAUSETHAT WOULD EXPOSE THE UK'S MOTOR ABILITIES.AS A PERMIT MEMBER OF THE — THE UK'S VULNERABILITY. AS A MEMBER OF THE SECURITYCOUNCIL — I THINK THE U.K. CAN NAVIGATE THIS. FRANCINE:THE WORLD IS VERY COMPLEX AND IT FEELS LIKE THERE IS MORE BADNEWS THAN ENCOURAGING NEWS. HOW IS A COUNTRY THRIVE IN THISENVIRONMENT? ROBIN: MY BOOK IN THE END IS TARGETEDON WHAT LIBERAL DEMOCRACIES NEED TO DO.

KEY ELEMENTS OF THIS IS TO MAKESURE WE ARE STRONG IN OURSELVES. THAT MEANS STRONG ECONOMICALLY,STRONG POLITICALLY, AND IN THE END TRY TO KNIT TOGETHER THISG7 WHICH IS NOW INCLUDING AUSTRALIA AND SOUTH KOREA INTOA GROUPING THAT CAN SURVIVE THE TURBULENCE OF THE NEXT FEWYEARS. RIGHT NOW, DONALD TRUMP MIGHTLOOK AT THE G7 AND SAY WHO DO I HAVE THE BIGGEST TRADE DEFICITWITH? THE U.S. HAS A TRADE DEFICIT WITH THE G7THAT IS BIGGER THAN THE DEFICIT IT HAS WITH CHINA.YOU CAN SEE HIM SAYING I DO NOT.

CARE ABOUT THE G7.AT THE MOMENT WHAT WE NEED TO DO AS EUROPEANS IS FOCUS ONOURSELVES, BUILD MORE INTERNALLY COME INVEST MORE INOUR ECONOMIES AND DEFENSE AND TAKE IT FROM THERE. FRANCINE:EVERY TIME I ASK THIS QUESTION TO A HEAD OF STATE THEY ROLLTHEIR EYES. IS THERE ANY WAY OFTRUMP-PROOFING SOME OF OUR ECONOMIES IN CASE HE GETS TOTHE WHITE HOUSE? ROBIN: THE TRUMP PROOFING IS ABOUTDEFENSE BUT ALSO ECONOMICALLY IT MEANS BEING ABLE TO MAKESURE YOU HAVE ALTERNATIVES IN.

YOUR GLOBAL MARKETS.THE BIGGEST CHALLENGE FOR EUROPE WILL BE THINKING ABOUTHOW TO INTEGRATE AFRICA. THE MAIN THING I TALK ABOUT INTHIS BOOK IS ALTHOUGH IT IS A NEW COLD WAR IT IS NOT LIKE THELAST ONE. THE REST OF THE WORLD DOES NOTCARE ABOUT IT AT ALL. THEY ARE TRIANGULATING BETWEENTHE TWO BIG SIDES. THERE IS AN OPPORTUNITY TO LOOKAT THE GLOBAL SOUTH COUNTRIES, TO LOOK AT LATIN AMERICA ANDAFRICA. BRAZILIANS ARE BEING FLOODEDWITH CHEAP CHINESE EXPORTS.

THEY ARE NOT HAPPY WITH THATAPPROACH. WE NEED TO TRY TO WIN THE NEWCOLD WAR IN THE GLOBAL SOUTH. FRANCINE:WHILE WRITING THIS BOOK IS THERE SOMETHING THAT SURPRISEDYOU? I KNOW YOU HAVE BEEN LOOKING ATTHIS DAY IN AND DAY OUT AND HAVE BEEN IN FOREIGN AFFAIRSFOR THE LAST 16 YEARS. THROUGH YOUR RESEARCH, WHAT ISSOMETHING YOU ARE MOST OPTIMISTIC ABOUT? ROBIN: THE THING THAT CAME TO MYREALIZATION IS THIS SENSE WE.

ARE IN THE EARLY STAGES OF ANEW COLD WAR AND WE DO NOT HAVE RULES FOR NUCLEAR WEAPONS.CHINESE ARE INVESTING IN NUCLEAR WEAPONS.AROUND 1000 NUCLEAR WARHEADS NOON.THEY PROBABLY WANT TO GET TO MATCHING THE U.S.IF YOU'RE THINKING IT IS NOT CHINA WITH 1500 AND THE U.S.WITH 1500, IT IS 3000. I TALK A LOT ABOUT ARMS-CONTROL.ON THE POSITIVE SIDE I'VE BEEN AMAZED TO WHICH FOR THE FIRSTTIME WE ARE SEEING A KNITTING TOGETHER OF AMERICA'S PACIFICALLIES AND ITS TRANSATLANTIC.

ALLIES.YOU HAVE JAPAN, SOUTH KOREA, AUSTRALIA BEING INTEGRATED WITHNATO, EU, U.K., NORWAY. THAT IS A POWERFUL COMBINATIONIF YOU CAN EDIT TOGETHER. THIS IS WHERE THE TRUMPPRESIDENCY IS A RISK. USE 2024, THE 50TH ANNIVERSARYOF THE G7, TO TRUMP PROOF THE TRANSATLANTIC ALLIANCE.FRANCINE: THANK YOU FOR JOINING US.FORMER DIRECTOR OF CHATHAM HOUSE. ROBIN NIBLETT. TODAY MARKS A YEAR SINCE UBSTOOK OVER CREDIT SUISSE.

WILL DO A DEEP DIVE OVER JUSTHOW ADVANTAGEOUS THE DEAL HAS BEEN FOR THE BANK, NEXT.THIS IS BLOOMBERG. ♪ FRANCINE:COMING UP ON “BLOOMBERG SURVEILLANCE,”AN INTERVIEW WITH THE BANK OF AMERICA CHAIRMAN AND CHIEFEXECUTIVE BRIAN MOYNIHAN. THAT IS AT 7:00 EASTERN.THIS IS BLOOMBERG. >> WOULD'VE EXPECTED UBS SHARESTO HAVE SWORD SINCE THE BANK TOOK OVER CREDIT SUISSE ONEYEAR AGO.

THAT IS EXACTLY WHAT HASHAPPENED, WITH THE STOCK HITTING A 16 YEAR HIGH IN EARLYMARCH BEHIND CONFIDENCE IN THE CHIEF EXECUTIVES TURNAROUND OFTHE SWISS LENDER AND INTEGRATION OF THE BANKS. >> IT IS VERY IMPORTANT FORINVESTORS TO UNDERSTAND HOW WE ARE CONNECTING THE DOTS BETWEENWHAT WE SEE IN SUMMER AND LAST YEAR AND RESPECTIVE OURLONG-TERM PLANS. >>'S GOAL IS SIMPLE.TO MAKE UBS THE UNDISPUTED GLOBAL WEALTH CHAMPION AND TAKEON WALL STREET RIVALS FOR THEY.

HAVE HOME ADVANTAGE IN THE U.S..THE BS CHEAP — THE UBS CHIEF HOPES TO LEVERAGE FORMERCLIENTS INCLUDING THOSE STILL BUILDING THEIR FORTUNES.CATCHING UP WITH THESE AMERICAN FINANCIAL GIANTS WILL TAKE TIMEAND COME AT A COST. >> MORE THAN 50% OF OUR COSTS IS ATCOUNT AND THERE ARE DUPLICATIONS.WE TRY TO DO IT OVER TIME. >> EUROPEAN BANKS AND EVEN UBSHAVE TRIED TO CRACK THE U.S. MARKET AND HAD TO PULL BACK.THIS TIME, UBS AIMS TO BE THE ONE LEFT STANDING AT THE END OFTHIS ROUND. FRANCINE:.

BLOOMBERG REPORTING ON THEOUTLOOK FOR UBS ONE YEAR AFTER THE LENDER TOOK OVER TROUBLEDRIVAL CREDIT SUISSE. WE ARE JOINED BY BLOOMBERG'SCHARLIE WELL IN THE STUDIO. I CANNOT BELIEVE IT HAS BEEN AYEAR ALREADY. MARCH 2023. PRESS CONFERENCE.IT FEELS LIKE UBS HAS DONE VERY WELL OUT OF THIS DEAL. CHARLIE:SO MUCH BETTER THAN EXPECTED. I MEMBER IMMEDIATELY AFTER THESHARE PRICE FELL BUT FAST FORWARD TO WHERE WE ARE NOW.THE SHARE PRICE IS UP 60%. A MARKET CAP OF $100 BILLION.THIS IS GOING A LOT BETTER THAN.

EXPECTED.WHAT UBS GOT IS A BIGGER INVESTMENT BANK AND THEY GOTTHE POTENTIAL FOR WEALTH MANAGEMENT THAT IS SOATTRACTIVE TO THEM BY ACQUIRING CREDIT SUISSE.THE FUNDS ARE UP 1/5 TO $3.4 TRILLION.THAT IS A HUGE OPPORTUNITY. FRANCINE:THEY WERE WORRIED BECAUSE IN AUGUST THEY SAID THEY DO NOTNEED THAT MUCH GOVERNMENT BACKING.SOME OF THE UNWINDING IS LESS MESSY THAN IT COULD HAVE BEENUNLESS THIS COMES FURTHER DOWN.

THE LINE. CHARLIE:THEY DID NOT HAVE TIME TO DO A LOT OF THAT DILIGENCE.SERGIO ERMOTTI SEEMS TO BE DOING A GOOD JOB.HE HAS DONE THIS BEFORE. HE WAS BROUGHT BACK TO DO THIS. HE WAS A STABILIZING FORCE FROM2011 TO 2020 AND HE DID THE PIVOT AWAY FROM INVESTMENTBANKING INTO WEALTH MANAGEMENT AND THAT IS SOMETHING THEY WANTTO DO HERE THERE FOCUSES ON THE UNITED STATES. FRANCINE:AND IT HAS TO BE THE ULTRARICH IF THEY WILL CLOSE THAT GAPWITH MORGAN STANLEY? CHARLIE:.

ABSOLUTELY.HE LOVES TO CITE THE STAT THAT THERE ARE 36,000 PEOPLE IN THEUNITED STATES WITH LIQUID NET WORTH OF OVER $100 MILLION INWE HEAR HOW THE U.S. IS STILL THE CENTER OF GLOBALMONEY AND THAT IS THE CASE. THEY FACE A LOT OF COMPETITION.MORGAN STANLEY IS WHAT THEY HAVE THEIR EYES SET ON AND THEGOAL IS TO USE THEIR INCREASED FOOTING IN INVESTMENT BANKINGTHEY HAVE THROUGH CREDIT SUISSE TO TRY TO FUNNEL CLIENTS INTOTHEIR WEALTH MANAGEMENT UNIT. THEY HAVE A LOT OF COMPETITION.UBS HAS ABOUT 6000 FINANCIAL.

ADVISORS IN THE UNITED STATES.MORGAN STANLEY HAS 16,000. FRANCINE:THE CONCERN IS THEY LOST CLIENTS.HOW DO YOU GET THE CLIENTS BACK? CHARLIE:YOU HAVE TO REBUILD CONFIDENCE. THAT IS SOMETHING WE ARE SEEINGWITH CONCERNS ABOUT THE LARGER SWISS BANKING INDUSTRY ANDREGULATORS ARE TALKING ABOUT THE NEED FOR THIS BANK TO HAVEMORE CAPITAL. IT IS REBUILDING TRUST BUT ALSOUSING THEIR INCREASED TOOLS THEY HAVE WITH THIS LARGERINVESTMENT BANK TO FUNNEL.

PEOPLE IN.IN THE UNITED STATES THEY HAVE TRIED TO DO THIS BEFORE WITHTHE ATTEMPTED ACQUISITION OF WEALTH FRONT, WHICH IS A ROBOADVISOR. IT IS A NEW TAKE TO HELP CREATEWEALTH THROUGH INVESTMENT BANKING CLIENTS AND BRING THEMINTO THAT WEALTH. FRANCINE: LET'S ALSO BRING IN TOM METCALFWHO EVER SEES OUR BANKING COVERAGE ACROSS EMEA.I DO NOT KNOW IF THERE'LL BE MORE INTROSPECTION ABOUT WHATHAPPENED WITH CREDIT SUISSE AND WHETHER SOMETHING LIKE THISNEEDS TO BE AVOIDED.

WHAT IS THE FEELING INSWITZERLAND? TOM: IS INTERESTING TO BE HERE AYEAR ON. I REMEMBER A YEAR AGO IT WASSUCH AN INTENSE PERIOD. WALK-THROUGH EUROPE TODAY ANYOLD DAY. I THINK IT IS A HUGE MOMENT FORFINANCE BUT FOR SWITZERLAND SPECIFICALLY.WE HAVE THE SWISS NATIONAL BANK SAYING WE SHOULD THINK ABOUTGIVING MORE REGULATORY CAPITAL REQUIREMENTS TO SOMETHING LIKEUBS GIVEN ITS SIZE. FROM MY PERSPECTIVE TO SIT HEREIS ONE OF THOSE STORIES THAT.

WILL RUN AROUND FOR MONTHS ORYEARS. FINANCE HAS CHANGED FOREVER. FRANCINE:ARE YOU SURPRISED AT HOW WELL THEY HAVE DONE OUT OF IT.THEY ARE PITCHING FOR A NEW BUSINESS OR NEW CLIENTS.THEY ARE FLYING THE AIRPLANE WHILE I HAVE TO INTEGRATE ANDLET PEOPLE GO. THIS IS NOT AN EASY JOB. TOM:ABSOLUTELY. THAT IS WHAT THE EXECUTIVESHAVE BEEN SAYING. THE HARD PART STARTS NOW INTERMS OF THE NEED TO START TO.

DRILL DOWN INTO COSTS.MANY MORE JOB CUTS TO COME. IT WAS ONCE DESCRIBED ASPOTENTIALLY THE DEAL OF THE CENTURY BUT LOTS OF CAVEATSBECAUSE IT IS SO HARD TO INSTITUTE.FOR A REPORT PART OF THE FIRST YEAR UBS WILL BE HAPPY.THE SHARE PRICE IS NORTH OF $100 BILLION.ON THE DAY OF THE DEAL IT WAS AROUND $60 BILLION.IT IS ALL ABOUT THE EXECUTION. ANALYSTS ARE SAYING IF THEY CANEXECUTE THIS WILL BE THE DEAL OF THE CENTURY.THERE IS A LOT OF MINEFIELDS.

AND TRIPS UP AHEAD. FRANCINE: THE QUESTIONS WE HAVE COME ARETHEY AROUND EXECUTION? IF YOU WERE A SWISS CITIZENUSED TO BE ABLE TO CHOOSE BETWEEN TWO BANKS.YOU NOW HAVE ONE BANK THAT IS TOO BIG TO FAIL. TOM:THAT IS PART OF THE DEAL, COMPETITION CONCERNS.THOSE CONCERNS ARE STILL FLOATING AROUND.IT IS LIKE IS THERE REALLY ANY RECOURSE?QUITE RIGHTLY UBS — THIS WAS ALL PASSED THROUGH, THIS WASALL LEGAL AND THEY WERE VERY.

KEEN TO KEEP THE SWISS UNIT ANDTHE SENSE IS THEY WILL DO THE UTMOST TO KEEP IT WITHIN THEGROUP. THAT IS MORE OF A POLITICALTHING THAN A CORPORATE CONCERN RIGHT NOW. FRANCINE: I KNOW WE WERE TALKING LASTYEAR AND I REMEMBER BEING ON TEXT MESSAGES WITH YOU THATSUNDAY, IT IS TATTOOED TO OUR BRAIN BECAUSE IT FELT LIKE ITWAS SUCH A BIG DEAL AND IT WAS COBBLED TOGETHER AND FOUR DAYSBEFORE NO ONE IS EXPECTING THIS HUGE TAKEOVER.AT THE TIME WE WERE TALKING.

ABOUT WHETHER IT WOULD PUSHMORE CONSOLIDATION, MORE M&A IN THE INDUSTRY.YOU THINK THAT IS A POSSIBILITY WITH THE CAPITAL MARKETS UNIONOR IS THIS TO — IS THIS JUST SPECIFIC TO UBS AND CREDITSUISSE? TOM: IF WE ARE TALKING ABOUT THE BIGCROSS-BORDER DEALS EVERYTHING THE EXECUTIVE SAY AS AROUND THECAPITAL MARKET UNION AND FOR THAT TO HAPPEN IN EUROPE THEYNEED THE REGULATORS TO SMOOTH THE WAY.THAT IS THEM TALKING THEIR OWN BOOK.THE MEGA DEALS WILL PROBABLY.

NOT HAPPEN WITHOUT CHANGES ONTHE REGULATORY FRONT. EVERY DAY WE ARE HEARINGCHATTER ABOUT MIGHT THIS FIRM DO SOMETHING WITH THIS FIRM.THERE ARE DEFINITELY ANIMAL SPIRITS STIRRING.IT MIGHT BE MORE DOMESTIC DEALS. IN TERMS OF WHAT IS COMING DOWNTHE PIPE IN 2024, I SUSPECT IT WILL BE A YEAR OF MANY M&A INBANKING. FRANCINE: I LIKE THAT. MINI M&A.WE TALK ABOUT WHETHER UBS CAN RIVAL MORGAN STANLEY.IT IS DIFFICULT WITH AN INVESTMENT BANK THAT IS NOWHERENEAR WALL STREET TITANS FOR.

EUROPEAN BANK TO TAKE ON WALLSTREET. CHARLIE: THAT IS RIGHT AND OTHER PEOPLEARE TRYING TO DO THIS AS WELL. THERE WAS A GREAT INTERVIEWWITH THE CEO OF BARCLAYS. TALKING ABOUT HOW BARCLAYSWANTED TO ESTABLISH AND BUILD ON THE FOOTING IT HAS IN THEUNITED STATES. WHAT IS INTERESTING IS THATBARCLAYS AS THIS ALMOST DEGLOBALIZATION PLAY IS HOWINVESTMENT BANKING, SOMETIMES IT CAN BE GOOD NOT TO HAVEEVERYTHING CONCENTRATED. HE WAS PITCHING LONDON.UBS CAN BE TALKING THAT AS WE.

SEE THIS THEME, HAVING THATCOUNTERPART IN ANOTHER COUNTRY CAN DO WELL FOR THEM. FRANCINE:CHARLIE WELLS AND TOM METCALF JOINING US ON BANKING.MORE TO COME. THIS IS BLOOMBERG. ♪ FRANCINE:THE CONVERSATIONS THAT MATTER, THE INSIGHTS YOU NEED.BARCLAYS IS SEEKING TO EXPAND ITS RELATIONSHIP WITH SOVEREIGNWEALTH FUNDS AND PRIVATE EQUITY GIANTS AS IT BROADENS ITSFOOTPRINT IN ADVISORY AND EQUITY UNDERWRITING.BARCLAYS CHIEF EXECUTIVE.

EXCLUSIVELY TO BLOOMBERG. >> LENDING IS AN IMPORTANT PARTOF WHAT WE DO. WE ARE A BIG PLAYER IN THEFIXED INCOME MARKET. LENDING IS A PART OF WHAT WE DO.WE ARE TRYING TO BROADEN IT INTO MORE ADVISORY AND MOREEQUITY-RELATED REVENUES. LISA:HOW MUCH IS THIS A NEW MODEL OF BANKING THAT IS TRYING TO CATERTO THE WHOLE CLIENT RATHER THAN GO AFTER SPECIFIC DEALS AND BEFOCUSED ON BEING AT THE TOP OF THE TABLE?.

>> IT IS AN IMPORTANT PART OFTHE SHIFT THAT IS HAPPENING AND IT IS HAPPENING BECAUSEPREVIOUSLY IN THE INVESTMENT BANKING SIDE WE WERE WORKINGWITH CORPORATIONS AND SINCE THEN , WE STILL WORK WITHCORPORATIONS IN A BIG WAY BUT IN ADDITION YOU HAVE THEFINANCIAL SPONSORS IN THE SOVEREIGN WEALTH FUNDS.THE GROWTH OF CONCENTRATED CAPITAL MAKES IT IMPORTANT TOHAVE THE FULL RELATIONSHIP. LISA:WE DO GET A BANK OF ENGLAND DECISION.IS IT BENEFICIAL IF RATES STAY.

HIGHER FOR LONGER YOU WANT THEMTO COME DOWN TO SUPPORT ECONOMIC GROWTH? >> ULTIMATELY THAT IS ADECISION THEY HAVE TO MAKE. I ACTUALLY THINK A LITTLEPRUDENCE AND WAITING IS NOT A BAD THING. JONATHAN:YOU THINK THERE IS AN OPTION TO WAIT LONGER?WHY IS THE RISK TO CUT TOO SOON AND NOT HOLD TOO LONG? >> I THINK THE ECONOMY ISSTABILIZING, EMPLOYMENT IS.

STILL ROBUST. INFLATION ISCOMING DOWN. ON THE BALANCE IT MIGHT BE MOREPRUDENT TO WAIT A LITTLE LONGER. OUR HOUSE VIEW AND THAT OF MANYOTHERS IS FOR MORE RATE CUTS OVER THIS YEAR. JONATHAN:WITH THE SAME APPLIED TO THE U.S.?THE SAME CHARACTERIZATION OF THE SITUATION? >> YES. LISA:WITH THAT BE GOOD FOR YOU? ARE HIGH RATES GOOD FOR BANKSARE BAD FOR BANKS? >> STAPLE RATES ARE GOOD FORTHAT. FRANCINE:.

THAT WAS THE BARCLAYS OFFICERSPEAKING EXCLUSIVELY TO BLOOMBERG.CHINA'S TOPS OF — CHINA'S TOP SECURITY REGULATOR HAS ACCUSEDEVERGRANDE OF FALSELY INFLATING REVENUE IN THE TWO YEARSLEADING UP TO ITS FAILURE. TINY REGULATORS HAVE LAID MUCHOF THE BLAME ON THE COMPANY'S FOUNDER AND FORMER CHAIRMAN.NO CRIMINAL CHARGES HAVE BEEN MADE PUBLIC.HIS WHEREABOUTS ARE NOT KNOWN. BLOOMBERG HAS LEARNED DONALDTRUMP HAS RULED OUT VIVEK RAMASWAMY AS HIS RUNNING MATEFOR PRESIDENT.

SOURCES SAY THE REPUBLICANNOMINEE IS EYEING THE ENTREPRENEUR FOR A CABINET JOB.TRUMP PERSONALLY TOLD VIVEK RAMASWAMY HE WILL NOT BE HISVICE PRESIDENT BUT IS CONSIDERING HIM FOR A PICK INCABINET INCLUDING HOMELAND SECURITY. WE NOW MOVE ON TO THE FED NEXTAND BOE UP THURSDAY. “SURVEILLANCE” IS NEXT. ♪

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