Bloomberg Radio, David Solomon, Westminster Whitehall discussed on Bloomberg Daybreak Europe


This is Bloomberg daybreak Europe but pretending that those in Westminster Whitehall know far better than those with skin in the game in the communities in which they live. We need to rethink the way central banks are operating these days. They're not the cavalry that's riding to the rescue when the economy turns down. Inflation has been more persistent than expected, it's higher than we expected. So more action by sender banks is required. Bloomberg daybreak, Europe, on Bloomberg radio. It is 6 30 a.m. in London, good morning. I'm Stephen Carol. And I'm Lizzie Burton. This is Bloomberg daybreak Europe. We check the markets every 15 minutes for you throughout the trading day on Bloomberg radio and it's a mixed picture in Asia, the MSCI Asia Pacific index currently down 8 tenths of a percent that's after weaker than expected Chinese imports data on the one hand, but on the other hand reports that China would relax COVID restrictions. We've got the offshore yuan currently trading at nearly $7 and Wall Street risk off as a host of U.S. banks as we just heard from Chrissy Gupta, struck a gloomy note about the economic outlook, including Goldman's David Solomon in that exclusive interview with Bloomberg TV's chinali Bassett. You've got S&P E minis currently flat, same for NASDAQ futures, but you had the S&P 500 yesterday down 1.4%. Okay, those are your markets. Let's get to our stop top stories and we will start in China where ten new measures have been announced to ease COVID rules, a major policy shift. They include home quarantining and scrapping mandatory PCR testing to enter public spaces. This has come after the country is faced public outcry and poor economic outlook due to its strict COVID zero policy. The Democrats have narrowly gained Georgia's Senate seat giving them an outright majority in the U.S. upper house. Senator Raphael Warnock defeated Republican challenger Herschel Walker in the state's hotly contested runoff election, with nearly all ballots counted Associated Press gave Warnock 50.8% of the vote. President Joe Biden's Democrats will now have a 51 to 49 seat majority in the Senate. The Democrats have narrowly retained Georgia's Senate seat, giving them an outright majority in the U.S. upper house. Morgan Stanley will reduce its global workforce by about 2% as Wall Street prepares for a potential recession in the United States. Bloomberg has learned the cuts amount to roughly 1600 employees during an exclusive interview with Bloomberg, Goldman Sachs CEO, David Solomon, told us he was considering job cuts. We always look at the environment and we always size the firm to the environment. If the environment gets tougher, we will obviously make decisions the size of the footprint of the farm appropriately. That can come from slowing down higher in which we've already done considerably in the second half of the year. And that might also come from pruning in certain areas. Meanwhile, Bank of America's CEO, Brian moynihan is also warning of a slowdown in hiring. And the fallout from sun bank from and freed's crypto empire continues to unfold after a hedge fund was declared in default on almost $36 million of loans, orthogonal trading says it's been severely impacted by the FTX collapse and is unable to repay a $10 million crypto loan. Kraken incoming CEO Dave Ripley says the contagion risk is high. Genesis froze withdrawals recently BlockFi cited impact directly from FTX and is moving forward with they've already shut down withdrawals. And so, you know, the potential for more companies to be impacted by this contagion, this kind of circular leverage out there, significant. With FTX is collapsed, cracking becomes the second largest crypto exchange operation. That prompted the entity that runs the lending pool on DeFi protocol maple to issue a notice of default for all the funds active borrowings. Yeah, really interesting to see the latest on that crypto story in another story that caught my eye in this area on the terminal this morning is from Nomura and Moro's crypto arms still planning to break a profit in that unit within two years as the failure of FTX is spurring demand for safer counterparties than the digital asset sectors. The universe is called laser digital and they're planning to leverage the backing of Nomura to win over institutional investors. They're adding 50 employees by March. That's what jez mohidin is saying about the future of that. So interesting to see how other parts of this sector are looking to mop up some of the mess after after FTX is collapsed, looking at Bitcoin still trading under $17,000 a unit this morning, 16,988 crypto Bitcoin is trading at Ethereum is a touch stronger at 1256. So not seeing huge price moves since, of course, we have that big slump on the back of FTX collapse. There's also I've just shout out and really amazing big take about the Audi, this Abu Dhabi royal family, brilliant graphics in this piece, tracing all the wealth from Manchester

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