5 Burst results for "Chrissy Gupta"
Bloomberg Radio New York
"chrissy gupta" Discussed on Bloomberg Radio New York
"We've got strikes on the railways, 13, 14, 70, and 16th of December, so days of strike action. Yeah, you may as well wear your sweater whilst you can. Well, the fears in the hospitality industry is that they're going to hurt yet again another Christmas for them. The trade body UK hospitality saying businesses seeing cancellation rates as much as 30% could knock one and a half billion pounds off revenues this year. That's as bad as it was at their omicron wave of COVID this time last year. It's been years now since these businesses have actually had a good Christmas. Yeah, I think especially when it's at short notice, I think the damage is particularly bad. But look, the employment figures that we were also mentioning just earlier, the couple of surveys that have been done, there are short term squeezes people dropping out of the workforce in the UK and also kind of long-term concerns around creating and building talent and keeping businesses interested in the UK workforce. So look, it's really difficult moments. Yeah, another side of that complicated story. Let's turn to what's making headlines in the newspapers in the UK here today with James wolcot the front page as James and mix of jingles, Cole and Matt Hancock, but you're excitingly focused on financial reforms. Yes, Stephen. Although I will like to say there are no Christmas jumpers in the studio today, so if you need to up your own game, I had to struggle not to sing this headline from the daily mail saying it's beginning to look a lot like an xmas general strike and we have got strikes in London today, but like you said, I'm really focused on this idea of what Jeremy hunt is calling his Edinburgh reforms and you know a politician wants to sell for them when they give it a big name like that, which are happening on Friday, these sort of 30 reforms that are supposed to be this Big Bang two that can search has been promising 6 Brexit free up all the eager legislation and sort of unleash the financial markets. Now for a long time the question has been okay, but what was going to replace it was set to find out a Friday and the FT have this scoop saying there'll be a review of method two. We've already heard about the removal of the cap on bankers bonuses and we may hear that the FT say that new laws which were introduced after the factual crisis to make it a criminal offense if you commit sort of bank failure if you're irresponsible may get scrapped. Okay, I mean good that it did one could argue for the 2008 in 2008 9 global financial crisis because there was little accountability from that in many, in some senses. But turning away from that, there's also this very interesting take on apprenticeships in the UK. This is sort of the path forwards where not everybody goes to university, but how those apprenticeships are really being used. Exactly. And we're talking so much right now about the UK economy and skills in this labor market, Caroline. I mean, I want to go back to the Blair era sort of talk about this idea that the universities were the future and getting a degree was your pathway to a better life, and that was sort of the social engine. The conservatives they came in and said, apprenticeships as well, we're going to do what we need working people when he trades. And that's the way around, but this report out in the time sir from the Sutton trust is showing that broadly apprenticeships are not as many young people used to be, not as regionally diverse and quite crucially, are mostly middle class with universities, I think, being 6.2% of people from a worse background and in sort of apprenticeships, that's only 5%. And so the big issue we've got here is the share of pro tips at all levels in the most deprived areas is decreasing from 2015 to 2020. And so with a lot of government money and levees being put sort of the incentivize employers to put forward these apprenticeships, there's a big issue Steven of how the government is actually seeing that sort of payoff in terms of leveling up. Shall we take a sharp angle to turn back to Brexit for a moment and the attempt to, I suppose, a fresh raid is what the telegraph is calling it. They are. And they're framing as kind of Brussels is taking a land grab of the City of London's financial training and derivatives clearing. Because they're saying that if these assets are going to be held, we're a bit worried about any kind of regulation if they're held outside of an EU market. And given what we just talked about in terms of cutting red tape, they have some sort of leeway and saying, well, it would be a completely different regulatory system in London. Why wouldn't we want that to be on shored onto Europe? So they are potentially looking at the next month announcing new regulation that would force that to happen, which the telegraph will save have written up a quite a punchy raid on the city. Okay, you can always trust the telegraph for those sort of headlines. James Wilcox, thank you very much for that look through the newspapers today. Let's get more though on one of our top stories there and this is to do with Vanguard, which is announced that it's leaving the world's largest climate finance alliance. It's to quit the net zero asset managers initiative part of the alliance announced by Mark Carney for back of the governor in the cop 26 conference in Glasgow last year. This is happening as Republicans in the United States have stepped up threats against firms that are deemed hostile to the fossil fuel industry for more on this, we're joined by our markets correspondent Chrissy Gupta, great to have you with us. How significant is this move by Vanguard? Good morning, very significant. Look, Vanguard and its competitor BlackRock, two of the largest companies in the world when it comes to the way that you access the American equity market, arguably equity markets around the world, so think about if you are wanting to invest in the S&P 500, you don't just buy the index you buy the ETF that tracks the index while Vanguard and BlackRock are the ones that make it. So Vanguard really exiting this kind of move actually determines where a lot of these fund flows go because they are essentially the mechanism through which you can invest into the market. And so this move away from ESG in a way from climate actually opens them up to people who do have those very strong political affiliations that aren't in line with that kind of agenda. Okay, what about, I mean, it's interesting to see the different positions being taken by Vanguard and BlackRock on this because they are diverging as well in their positions. They are so BlackRock has been very steadfast and sticking with the ESG theme. They are part of this alliance as well, and they're really sticking with it, but what it's done is actually create a little bit of an exodus out of black rock funds. And this is important because when you look at where a lot of the money going into the market is coming from and specifically into Vanguard and BlackRock's products will think about is coming from pension funds is coming from the U.S. retirement system. So think Texas and California think Florida, some of the biggest states in the United States. Those are trillions of dollars entering the market from everyday Americans who aren't necessarily on Wall Street and they're doing it through these products. But if you are aligned with the ESG narrative, that does eliminate certain sectors or certain parts of the American market that these trillions of dollars aren't exposed to. I mean, people in Europe will sigh a little bit at this what could be seen as quite a politicization of something that again is hugely important that fundamentally goes back to the idea of climate change, but not just climate change. How much is this political versus financial? Very political and I would argue financial. It's kind of a chicken and the egg situation almost, but I would argue right now these decisions are being driven by politics. We know that in the United States, polarization is very much on the agenda and has been for that I want to say at least the last 5 or 6 years. What's important to keep in mind though is that voting with your money is a relatively new concept when it comes to Wall Street. You've had this kind of bipartisanship when it comes to where a lot of these funds go where a lot of the
Bloomberg Radio New York
"chrissy gupta" Discussed on Bloomberg Radio New York
"And a way of hopefully restructuring to sort of make more growth come through. Yeah, absolutely it is pretty interesting isn't it to see obviously the competition is from the Labor Party. We're going to be talking to Bloomberg's UK correspondent Lizzie Bergen about that there offering is also coming this week. And yet, the EU has its own agenda, doesn't it when it comes to the City of London? Yes, photograph we've got this story. They've written up as a punchy sort of Brussels launches fresh raid on London's derivative clearing houses. But what is quite interesting from the European perspective for a second is that the UK have long signaled they're going to be diverging on financial services. A lot of European assets are being held outside of EU rules. And now they're increasingly looking to sort of take those assets in-house into Europe as a way of protecting them from some sort of downturn or crash as we saw earlier this year. But this is going to be a big challenge to sort of City of London finance as the EU would effectively be sort of fourth thing on my assets to be held for safekeeping on mainland Europe. So to take off I've written that sort of story up. Now, they obviously have almost done this ahead of the hundreds reforms we've heard earlier today, which would quite likely bring the UK financial sector sort of in contradiction to a lot of the EU rules. James May and Azure or other EU member states are available. These are not part of the mainland Europe as well. You're looking also at apprenticeships and the times that they are more elitist than degrees. Giving a bit of everything, Stephen. So the point with apprenticeships is we are seeing according to the times a higher proportion of students from middle class background taking on degree apprenticeships. That's where a company will work for them and they will sponsor you doing a degree in the side What is really interesting about this, if you go back to the Blair era, the idea that everyone will get a degree and that will boost your higher education, that policy then change under the conservatives. This idea that we are again going to boost local areas, boosted projects, boost proper skills. Now, that idea is great in principle. And this kind of tallying the leveling up agenda, but what these stats show from report from the southern trust is that in actuality, more students from a middle class background are getting these sort of very valuable degree apprenticeships where you get a degree out of it, you get a job out of it and you get gain experience in the middle and companies which are forced to give these kind of apprenticeship levies are in many cases giving it both to sort of middle class families, but also to their exacts who want middle management training. So there's this big question about how far is the government actually delivering on the skills it needs to improve its workforce? I think that's really, really interesting, isn't it, especially as the idea as we were mentioning with some of the latest surveys show that there's a big sort of dropout rate in the labor force in the UK at the moment, in fact, the labor force has shrunk. Now it's one percentage point, smaller than it was back in 2019, and so yeah, the where are the golden opportunities who gets their hands on them. It's very interesting one. And on that, this idea of who gets them, it's mostly those who increasingly those who aren't under 25 and these objects aren't spread out very locally, so it's often quite centralized to London and again at that point I made earlier about it being off in middle managers who the company wants to train more, they're using the apprentice scheme to do that, but that is very different to what the government envisions of kind of training up young people and getting them into the workforce. Okay, James Lockhart with a look at us today's newspapers. Thank you very much for that. Let's turn back to one of our top stories though. This is to do with Vanguard leaving the world's largest climate finance alliance. It's to quit the net zero asset managers initiative, which is part of the alliance announced by Mark Carney and they're up to cop 26 climate conference in Glasgow last year. This comes as in the United States Republicans have stepped up threats against firms that are deemed to be hostile to the fossil fuel industry for more on the story were joined in studio biomarkers correspondent Chrissy Gupta, Christie good morning to you. High significant is this move by Vanguard. Well, good morning. It is massive. Look, Vanguard is a massive asset manager. They're also a major player when it comes to institutional research among other things. So to see them walk out of this is almost a game changer and sets a pretty scary precedent for some other asset managers think UBS, for example, think Goldman think even JPMorgan's asset management fund. So these are a really important time where Vanguard's kind of setting the tone for how much climate change should actually really factor into these decisions. Okay. What do we know about why they made this decision? Understanding the ramifications is understanding the detail here. Yeah, so I think the context is everything. I mean, you have to look at the political landscape in the United States right now. And a lot of this comes down to some of the funds that are actually entering on the state level. And this is where the idea of fossil fuels and the oil industry really comes into handy. We talk about nymex crude and the American oil industry a lot in terms of the global crude picture, but also keep in mind that there are individual states in the south where their entire GDP think Texas, for example, my home state is actually based on these oil revenues. So if you were starting to perhaps remove funds or remove funding going into the likes of Exxon, Chevron, whatever the company may be, that indirectly also removes funds from some of those local GDPs, and that's really where you're starting to see a lot of pressure by these Republican led states in Congress with the Biden administration and now in the financial industry as well. Where does it leave these sorts of initiatives then, like the Glasgow financial alliance for net zero, which was announced with such fanfare last year, when you have funds like Vanguard who are leaving? Well, like I said, it has a pretty significant precedent. And in the United States, it's actually turning into a much bigger political issue than I think it is on this side of the Atlantic because it's such a key pillar of the Biden administration's kind of agenda. And I think what's important here to talk about is that it's not just the climate change stories also talking about issues on the social front, the governance front. So think uncontrolled, for example, this has become another major issue where a lot of Wall Street funds think JPMorgan think Goldman Sachs have actually said, you know what, we're not going to provide funding or even funds or exposure to say even gun companies in the United States because of the issues that led there. So this is a much broader issue that isn't just about climate change and the environment, but really how much money do we want to put on those social issues? Yeah, okay. That's really interesting. And Florida's CFO urging the state's pension funds to ditch black rock again because of these ESG practices. So look, are these decisions political or financial? Well, a little bit of both, and so I've outlined the political aspects of his talk about the financial because here's where Vanguard and black work are on the opposite ends of the spectrum, BlackRock has really dug into their heels and said, look, ESG is something we want to pursue. ESG is something we want to really make a part of our offerings. Remember BlackRock has a lot of ETF offerings as well. The iShares product. So this is going to be significant in terms of attracting investment. They want to make sure
Bloomberg Radio New York
"chrissy gupta" Discussed on Bloomberg Radio New York
"The financial industry is pretty gloomy. Morgan Stanley is cutting around 1600 jobs while the CEOs of several major U.S. banks are warning about the possibility of a looming recession. The CEO of Goldman Sachs David Solomon sees bumpy times ahead, our markets correspondent Chrissy Gupta is here with more on this story. Good morning to Chris. So take us through some of the commentary then that we're getting from U.S. bank chiefs. Well, David Solomon, I think, has been a little bit skeptical on the U.S. economy for some time now. I think interesting is the game changer here is that a lot of his peers think Jamie Dimon of JPMorgan think Brian moynihan of Bank of America. They were very vocal advocates for the U.S. consumer. They said that look, you recession in the U.S. is not their base case. It's not even likely until more recently where they really changed their tune. And I think that almost forbearing is very notable that they're actually perhaps following on the heels of David Solomon of Goldman Sachs to really talk about the fact that there is going to be pain in the economy this downturn may actually be deeper than downturns we've seen in the past. Does any of this come as a surprise, though, given that we have had quite a lot of gloom from quite a lot of recent forecasts. Not necessarily a surprise. I would say the surprise is more a little bit more of the timing, and this is where a lot of their commentary, especially from David Solomon, is very interesting where they start talking about that recession that's been priced into the market. Especially in the equity markets, the carnage that you're seeing, well, that recession is going to show up in 2023. Once again, it is still not their base case, but it is saying that, look, things are looking a little bumpy as he specifically said, and it's happening in 2023. So we're getting more and more specific about timing as opposed to some sort of inevitability that could be anywhere from three to 5 years, at least that was the case in their previous comments. And what does this mean for jobs in finance then? Because the broader story here, Christy is in the U.S. and in the UK and in lots of other places, we have actually really quite tight labor markets, don't we? And then we started to see technology companies cutting jobs and we started to see finance jobs going, but we still have quite tight labor markets. It's a tale of two stories almost because if you look at the headline data as recently as last week where we had an extremely strong payrolls number and extremely strong wage growth month over month, you are still actually seeing a lot of the industry, not just in banks but specifically in tech as well. Tax kind of being the canary in the coal mine banks following on their heels this idea that cutting costs is becoming of more and more importance and you mentioned Morgan Stanley 1600 jobs on the line about 2% of their global workforce, according to Bloomberg reporting, what's important to keep in mind though is that some of these other banks aren't necessarily cutting jobs yet. They are cutting pay. They are cutting bonuses and they are cutting perhaps new positions, but the layoffs, the firings that hasn't happened yet. What about then looking ahead towards the fad meeting next week, what are the signals are we getting from the markets about the outlook for the U.S. economy? Well, 50 basis points is priced in for the Federal Reserve, the timing is once again everything when it comes to what comes ahead. Remember, we were supposed to be done with the tightening cycle by September of this year that has clearly not happened. And it looks like more and more pricing shows that we might even see 50 basis points in February, at least that was the call coming out of Goldman Sachs's economic team just recently, some calls even saying that we're still going to see hiking going into the summer of 2023. So timing is everything here as we talk about the U.S. economy. They don't want to have a 1970s vulgar repeat where they pause too early. Okay, critic group two, thank you very much for taking us through all of that latest commentary we've been getting and we'll be bringing you more on our interview with David Thomas and the CEO of Goldman Sachs coming up later in the program and we'll be hearing more about his comments on those bumpy times ahead as he describes it for now though. Let's
Bloomberg Radio New York
"chrissy gupta" Discussed on Bloomberg Radio New York
"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
Bloomberg Radio New York
"chrissy gupta" Discussed on Bloomberg Radio New York
"This is he wasn't a maga Republican, he hasn't been out in front of president Trump. In fact, he's thought of as a contender for the 2024 presidential election. So what's interesting is that the Republicans that you are seeing that have been these very vocal Trump supporters, they're not actually winning the races that they were expected to win. In fact, though, you are still seeing Republicans win who weren't as vocal. So there are some early indications here that perhaps the Republican Party may in fact choose Ron DeSantis if he emerges more victorious than some of these Trump supporters. I'm just seeing some comments in the former White House spokesperson Jen Psaki saying that the Dems have a Florida problem but Republicans have a Trump problem and that seems harder to solve. That's her view anyway, but of course someone who is just out of the Biden White House. What are the key races that we're still watching out for Christy? We're still watching out for Arizona. This is crucial. A major major potential flip there. You're also looking for Georgia that is largely expected to turn off into a runoff race. What's important about Pennsylvania, which I should highlight for the 2020 presidential election took four days for the ballots to count. We were expecting that kind of delay, the fact that you're already seeing this projections is huge and Pennsylvania was the key swing state in addition to Virginia as well. But Pennsylvania because it is historically been this bellwether of where the following presidential election will lead at least that's been the case historically. So the assumption here is that if you're able to flip Pennsylvania, does that have an early and I emphasize early a two year early indication that that state might actually prefer President Biden against whoever he does go up against in the 2024 election. So I would still keep an eye on Pennsylvania. We want to make sure those results are confirmed Virginia, Arizona, and Georgia are the other ones you want to keep an eye on. Okay. That's the sort of detail of the races. But what do you think is the impact for markets that for financial markets of these as they come in? Well, regulation is everything right now. And you know, when we think about regulation for politics, I think what immediately comes to mind is a lot of antitrust legislation. It was something that was priced in with a Biden victory about two years ago when he became president this idea that Democrats want to go very hard on big tech. Want to charge them higher taxes, really talk about the free speech issue, as well and regulate a lot of these social media companies, think Mark Zuckerberg, think Elon Musk with his new Twitter acquisition now as well. These are all things that have been on the Democrat agenda. They've also been on the Republican agenda. I might add. So antitrust is a big one for the tech story. If you do see gridlock, however, there is a bull case for the S&P 500 that that gridlock will then help tech kind of come out from the beating it's taken year to date. The other sector you want to keep an eye on is oil regulation. This is, I think, an immediate impact to Europe because something that Republicans really want to do is invest more in defense and invest more in energy investments as well. Those are two things that could actively help Europe defense spending in terms of the aid to Ukraine, oil energy investments in terms of perhaps creating this infrastructure that will ultimately pull oil prices down globally. So these are both two crucial issues that people are certainly keeping an eye on. Okay, Chrissy Gupta in Washington. Thank you very much. We'll be back with you throughout the program for updates on the results of the midterm elections is also a tea live blog on the terminal if you want to follow the results there. This is Bloomberg. Markets, headlines and breaking news 24 hours a day at Bloomberg dot com, the Bloomberg business app. Quick take. This is a Bloomberg business flash. From Bloomberg's European headquarters here in London I'm Caroline Hepburn with these Bloomberg radio business. From Bloomberg's European headquarters here in London I'm Caroline Hepburn with these Bloomberg radio business flash and the S&P 500 has been wavering between gains and losses right now. It's down by two tenths of 1% and NASDAQ futures also slight the lower the potential as we were speaking to brembo pretty Gupta there saying for government gridlock in the U.S. effectively being positive for shares. Having said that, U.S. stocks 50 futures also down significantly four tenths of 1%. There is a bright spot, though, in the stock prices of Chinese developers which have soared more than the most basically in the last 8 months because there's been extra state help, but there's been a debt crisis obviously in Chinese developers for at least a year now, but a key Bond regulator is expanded. The financial support program that they've offered in terms of debt sales to the tune of 34 and a half billion U.S. dollars and so that has propped up a Chinese property developer stocks. Also, the other thing to keep an eye on though, COVID cases, hitting a 5 month high in China. And so the CSI 300 is down 9 tenths of 1% a sell off on the Shanghai and Shenzhen comps and the hang seng index down by 1.7% this morning. Elsewhere, the Bloomberg dollar spot index a weekends we've seen a sell off a drop around two and a half percent in the strength of the dollar since last week's FOMC meeting. Right now the Bloomberg dollar spot index is just about flat to slightly positive, as for benchmark yields then, U.S. yields trading at four 14 up by basis point. You've got a number of speakers to think about later today the fed's Williams and barking and also Jonathan Haskell of the Bank of England and we'll be talking about the wild west of the cryptocurrency space in just a moment, Bitcoin down 1.7% just over $18,300. That is your Bloomberg radio business flash is near and going with our