Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 1: First, a hard fought, bi partisan deal to impose new
Speaker 1: border restrictions in the US and unlock Ukraine waraid is
Speaker 1: on the brink of collapse in the Senate. Bloomberg's Amy
Speaker 1: Morris has the latest from Washington.
Speaker 3: Republican senators left a contentious ninety minute meeting last night
Speaker 3: arguing that a planned Wednesday vote on the measure is
Speaker 3: too soon, delaying aid for Israel and Ukraine and leaving
Speaker 3: the border situation unresolved. Republican support for the bill crumbled
Speaker 3: in the face of opposition from Donald Trump, prompting a
Speaker 3: reaction from Senate Majority Leader Chuck Schumer.
Speaker 4: Everyone's asking the same question, are maga Republicans serious about
Speaker 4: fixing the border or is this merely political?
Speaker 3: The one hundred and eighteen billion dollar deal was the
Speaker 3: result of months of closed door Senate negotiations. The key
Speaker 3: Republican in those talks, James Langford, says he expects Wednesday's
Speaker 3: planned procedural vote to fail. GOP discussion continue through today
Speaker 3: in Washington. Amy Moore as Bloomberg Radio.
Speaker 2: All Right, Amy thanks now to the latest from the
Speaker 2: Middle East. Secretary of State Anthony Blincoln is back in
Speaker 2: the region for his fifth trip since the October seventh
Speaker 2: Hamas attacks. He met with Saudi Crown Prince Muhammed Ben
Speaker 2: Salmon and is in Egypt this morning to rally support
Speaker 2: around a ceasefire deal with Gaza. Meanwhile, Israel is warning
Speaker 2: that time is running out for diplomacy with Hesbelah. They
Speaker 2: ran back group it's been fighting along its northern border
Speaker 2: with Lebanon. Bloomberg's Elisa Odenheimer has more on that from Jerusalem.
Speaker 5: Kasballa actually has been attacking Israel since October seventh. They
Speaker 5: said that they are backing up Commas and its attack
Speaker 5: against Israel, and in response, Israel has been striking back
Speaker 5: and has hit Heisbola pretty hard. But it looks like
Speaker 5: both sides are trying not to inflame the other side
Speaker 5: too much. Both sides have had casualties for sure.
Speaker 2: Bloomberg's Alizadenheimer reports the near daily attacks, which in Israel
Speaker 2: and Hesba Lah have forced about one hundred thousand people
Speaker 2: to flee their homes on both sides of the border.
Speaker 1: Turn back to markets. Karen we saw a huge rally
Speaker 1: overnight in Asia. Stocks in China gained three and a
Speaker 1: half percent. In Hong Kong's Hang Sang Index surged four percent.
Speaker 1: The games came after Beijing took more steps to stem
Speaker 1: a stock route, including a pledge by Sovereign Wealth funds
Speaker 1: to further increase holdings of ETFs. More from Bloomberg Asia
Speaker 1: Daybreak anchor Brian Curtis in Hong Kong.
Speaker 6: No more so called national team. This is an official statement.
Speaker 6: Central Hoijin Investment has expanded its buying of ETFs. Central
Speaker 6: Hoigen is the unit that holds Chinese government stakes in
Speaker 6: big financial institutions. It's under the Sovereign Wealth Fund. In addition,
Speaker 6: President Shijin Ping is set to receive a briefing from
Speaker 6: Chinese regulators on the markets that underscores the urgency of
Speaker 6: supporting the country's plunging assets. Also, the regulator, the CSRC,
Speaker 6: said it will support listed companies to increase their stock buybacks.
Speaker 6: In On Kong. Briant Curtis Bloomberg Radio.
Speaker 2: Right, Brian Thanks in Europe, it's a very busy day
Speaker 2: for earnings. We go to London and get the latest
Speaker 2: with Bloomberg Daybreak Europe banker Stephen Carroll, Steven.
Speaker 7: Good Morning, Karen, and Nathan Ubs is resuming share buybacks,
Speaker 7: handing up to one billion dollars back to shareholders this year.
Speaker 7: The Swiss lander also increasing its cost cutting targets, but
Speaker 7: that wasn't enough for investors. Shares have fallen in Zurich
Speaker 7: over at BP buybacks are getting a better reception the
Speaker 7: oil giants, stepping up the pace and planning to buy
Speaker 7: back three and a half billion dollars in the first
Speaker 7: half of this year. Less optimism for the future from
Speaker 7: the German chip maker Infinian, which is forecasting lower revenue
Speaker 7: this year as it's hit by a slump in demand
Speaker 7: from industrial customers.
Speaker 8: In London.
Speaker 7: Stephen Carrol Bloomberg Radio.
Speaker 1: And Stephen's staying in tech. But here in the US,
Speaker 1: we're watching shares of palent Here They're up eighteen and
Speaker 1: a half percent in early trading. The company gave a
Speaker 1: higher than expected profit outlook for this year thanks to
Speaker 1: artificial intelligence. Bloomberg's Charlie Pellett has the story.
Speaker 9: With Denverb Software and analysis. Company said it expects adjusted
Speaker 9: income from operations of eight hundred thirty four to eight
Speaker 9: hundred and fifty million dollars for this year. Analysts had
Speaker 9: expected seven hundred and sixty point three million, according to
Speaker 9: estimates compiled by Bloomberg. Palenteer CEO Alex Karp said in
Speaker 9: a letter to shareholders. Palenteer also reported twenty twenty three
Speaker 9: net income of two hundred ten million, its first year
Speaker 9: of being profitable. The results exceeded analyst estimates of one
Speaker 9: hundred ninety four point five million. In New York, Charlie
Speaker 9: Pellett Bloomberg Radio.
Speaker 2: Right, Charlie, thanks, we have some more news on the
Speaker 2: artificial intelligence front, and Video and Cisco Systems are teaming
Speaker 2: up to make it easier for corporations to build their
Speaker 2: own AI computing infrastructure. For Nvidia, the partnership opens up
Speaker 2: another channel for its technology. Cisco, meanwhile, gets to capitalize
Speaker 2: on the AI spending boom that's helped turn Nvidia into
Speaker 2: the world's most valuable chip maker.
Speaker 1: Well, Karen more, trouble may lie ahead for Boeing after
Speaker 1: it's spent most of this year grappling with problems involving
Speaker 1: the seven thirty seven Max Jet. Let's get the latest
Speaker 1: with Bloomberg' John Tucker, Johnny and.
Speaker 8: Nathan Bowing's largest union will demand a forty percent pay
Speaker 8: raise for its workers. The International Association the Machinists and
Speaker 8: Aerospace Workers so as it's willing to go on strike
Speaker 8: that would shut down Boeing plants in Washington and Oregon,
Speaker 8: including assembly lines for the cash Cows seven thirty seven jets.
Speaker 8: The current worker contract expires in September A talks are
Speaker 8: set to start at March eighth. Pile this on top
Speaker 8: of a host of problems. Boeing already faces questions from
Speaker 8: lawmakers and investors over manufacturing. The latest problem an issue
Speaker 8: with misdrilled rivet holes. On John Tucker Bloomberg Radio.
Speaker 2: Time Now for a look at some of the other
Speaker 2: stories making news around the world, and for that we're
Speaker 2: joined by Bloomberg's Amy Morris.
Speaker 3: Amy, Good morning, the Good morning, Karen. The House of
Speaker 3: Representatives Committee on Rules held in meeting yesterday concerning the
Speaker 3: possible impeachment of Homeland Security Secretary Alejandro Majorcz Republican Committee.
Speaker 10: Chair, consequences of this crisis have been stark and sobering,
Speaker 10: and there's hardly a community anywhere in this country it's
Speaker 10: not felt the impact.
Speaker 3: Democratic Committee ranking Member Jim McGovern truly, this is.
Speaker 11: One of the most pathetic, embarrassing things that this committee
Speaker 11: has ever done.
Speaker 3: And the House plans to vote today on two impeachment
Speaker 3: articles against Mayorcis. The wind whipped storm that dropped an
Speaker 3: historic amount of rain on California this week has killed
Speaker 3: two people and has caused as much as eleven billion
Speaker 3: dollars in damage and economic losses, and it's not over yet.
Speaker 3: More rain is expected and there is said to be
Speaker 3: a risk of landslides and rock slides. More than two
Speaker 3: dozen structures are reported damaged by heavy rain and mudslides.
Speaker 3: Los Angeles Fire Chief Kristin Crowley please stay away from
Speaker 3: the La River and other moving water now.
Speaker 5: Due to the heavy rains.
Speaker 3: The ground has become soft and slippery. You could easily
Speaker 3: fall into the wash, so please please be careful. Los
Speaker 3: Angeles Mayor Karen Bass has declared a local state of emergency.
Speaker 3: Some areas, like Montecito, are under evacuation orders. The Mali
Speaker 3: Police Department has released the first probe into the wildfires
Speaker 3: that broke out on the island in Hawaii back in August.
Speaker 3: The fires that destroyed the historic Lahena district of the
Speaker 3: island were responsible for the deaths of one hundred people
Speaker 3: and the burning of more than sixty six hundred acres.
Speaker 3: The report found that emergency dispatch was overwhelmed by call volume,
Speaker 3: with wind and flames leaving Lehino without cellular or Wi
Speaker 3: Fi capacity. King Charles the Third is receiving treatment for
Speaker 3: an unspecified form of cancer. It was discovered during his
Speaker 3: hospital stay last month for treatment of an enlarged prostate.
Speaker 3: Buckingham Palace did not disclose the type of cancer that
Speaker 3: was found, but did say it was not connected to
Speaker 3: what it called a benign prostate condition. King Charles will
Speaker 3: continue state business but has suspended public duties and appearances,
Speaker 3: and Prince Harry has spoken to the King about that
Speaker 3: diagnosis and is set to travel to the UK from
Speaker 3: California to see his dad in the coming days. Global
Speaker 3: news twenty four hours a day and whenever you want
Speaker 3: it with Bloomberg News Now. I Amy Morris, This is
Speaker 3: Bloomberg Karen.
Speaker 2: All right, Amy, thank you. We do bring you news
Speaker 2: throughout the day right here on Bloomberg Radio. But now
Speaker 2: you can get the latest news on demand, and that
Speaker 2: means whenever you want it. Subscribe to Bloomberg News Now
Speaker 2: to get the latest headlines. Right at the click of
Speaker 2: a button. Get informed on your schedule. You can listen
Speaker 2: and subscribe to Bloomberg News Now on the Bloomberg Business app,
Speaker 2: Bloomberg dot com, plus Apple, Spotify, and anywhere else you
Speaker 2: get your podcasts. Time now for the Bloomberg Sports Update.
Speaker 2: Here's John stash Hour, John Ken.
Speaker 6: And now call it Super Bowl Opening Nights.
Speaker 4: So in Las Vegas, the Chiefs and forty nine Ers
Speaker 4: met the media for the first time this week as
Speaker 4: they prepare for Sunday's game, just as they did four
Speaker 4: years ago in Miami, and the coaches are the same,
Speaker 4: Andy Reid for the Chiefs, Skyle Shanahan for the Niners.
Speaker 4: Shanahan was asked about the difference from last and Andy.
Speaker 12: And their staff too, as good of a job as anybody,
Speaker 12: with their scheme and their coverage, beaters and everything they do.
Speaker 12: They still have the same quarterback and Patrick, who's as
Speaker 12: good as it gets. He was then and it's hard
Speaker 12: to get much better than he was then, but I
Speaker 12: bet he is a little bit, and Travis and everybody,
Speaker 12: so it's not a big difference.
Speaker 4: A little controversy about the field and the forty nine
Speaker 4: Ers are using to practice this week at UNLV. They're
Speaker 4: a little upset with it, but they will continue to
Speaker 4: practice there. Kansas City Royals, with a big signing their
Speaker 4: young shortstop Bobby Witch Junior, who's been sensational in his
Speaker 4: first two seasons and the Majors that has been the
Speaker 4: number two pick of the twenty nineteen draft, locked up
Speaker 4: an eleven year contract for two hundred and eighty nine
Speaker 4: million dollars. Upsett in college oops, Kansas ranked fourth in
Speaker 4: state game lost in Manhattan to Kansas State seventy five
Speaker 4: to seventy in overtime. NBA Lakers making three wins in
Speaker 4: the last four days. They won in Charlotte one twenty
Speaker 4: four to one eighteen for Anthony Davis twenty six points,
Speaker 4: fifteen rebounds, eleven assists. Cleveland stays on fourteen to the
Speaker 4: last fifteen to one to thirty sixty one to ten.
Speaker 4: Route of Sacramento, struggling six ers without Joe LMB lost
Speaker 4: a home to Dallas one eighteen one two. Johns Dashdownwick
Speaker 4: Bloomberg Sports.
Speaker 10: From coast to coast, from New York to San Francisco,
Speaker 10: Boston to Washington, DC, nationwide on Syrias exam. The Bloomberg
Speaker 10: business app in Bloomberg dot com. This is Bloomberg Daybreak.
Speaker 10: Good morning, I'm Nathan Hager.
Speaker 1: On a big day for earnings in Europe, including from UBS,
Speaker 1: the Swiss banking giant announced it will resume share buybacks
Speaker 1: this year, vowing to hand as much as a billion
Speaker 1: dollars to shareholders as it seeks to move beyond the
Speaker 1: integration of Credit SUITEE. The CEO of UBS, Sergio Ormady,
Speaker 1: was brought back to lead the bank last year after
Speaker 1: it stepped into rescue its competitor and a government back deal.
Speaker 1: Last March, Sergio Maddy sat down for a conversation with
Speaker 1: Bloomberg Editor at Large Francine Lockwell, let's listen in now.
Speaker 11: I'm very pleased that we finished the year with a
Speaker 11: very strong momentum. We achieved a strong underlying profitability for
Speaker 11: the second quarter, for the fourth quarter, and also we
Speaker 11: saw clients confirming their trust in our organizations twenty two
Speaker 11: billions of new assets, strong deposit influds across wealth management
Speaker 11: and the P and C. We made good progress in
Speaker 11: winding down part of the now core exposures, and also
Speaker 11: that has allowed us to then also reiterate the story
Speaker 11: that we are a capital. We want to have a
Speaker 11: dividend that is increasing progressively, so we have an increase
Speaker 11: of twenty seven percent of our dividend and also in
Speaker 11: the second half of twenty twenty four, we will do
Speaker 11: a share buy back.
Speaker 13: How would you describe twenty twenty four. I know your
Speaker 13: chairman has said in the past, it's difficult here.
Speaker 11: It's a peopletal here because if you think about the journey,
Speaker 11: the first six months are very intense. I think we're
Speaker 11: going to go through the merger of the two operating
Speaker 11: entity UBS and Credit Swiss AG will merge in the
Speaker 11: first half of the year. The subsidiaries in the US
Speaker 11: and Switzerland will merge also during twenty twenty four. So
Speaker 11: this is the prerequisite to be able to realize our syndergies.
Speaker 11: We already achieved four billions of cost savings Etcitate twenty
Speaker 11: twenty three. We now plan to have another gross savings
Speaker 11: of nine billions between twenty four and twenty twenty six.
Speaker 11: Partially this will be reinvested in the business to make
Speaker 11: our platform more resilient and up to speed with the requirements,
Speaker 11: but also to invest in our future.
Speaker 13: So sera, how important was this investor update? Just to
Speaker 13: give up a blueprint.
Speaker 14: Of the kind of growth that you want to a
Speaker 14: chain and how I think it's.
Speaker 11: Very important for investors to understand how we are connecting
Speaker 11: the dots between what we say in summer last year
Speaker 11: and in respect of our long term plans in twenty
Speaker 11: twenty six plans and going beyond that. So today we
Speaker 11: are providing few dots between twenty twenty four and twenty
Speaker 11: twenty six, how we achieve cost savings, how we manage
Speaker 11: our balance sheet, how we want to manage growth that
Speaker 11: has to come in a sustainable way. And also we
Speaker 11: give also some indications about what to look forward after
Speaker 11: the completion of the restructuring, which is then going to
Speaker 11: enable us to harvest you know, the work and we
Speaker 11: did with the quite attractive.
Speaker 13: Returns, So how will we achieve this quality sustainable growth.
Speaker 11: I think that one thing that we need to do
Speaker 11: is to be willing in the next couple of years
Speaker 11: to sacrifice a little bit of top line growth in
Speaker 11: order to improve the returns on of our financial resources,
Speaker 11: particularly on the balance sheet. So I think that you
Speaker 11: know what we both was very strong business in terms
Speaker 11: of client based, very good people, very good capabilities, but
Speaker 11: the balance sheet was not properly priced. We need to
Speaker 11: price risk in a better way and that will help
Speaker 11: us to contribute to our financial targets for twenty twenty
Speaker 11: six and beyond.
Speaker 14: So exactly what does that growth look like?
Speaker 13: Is it, you know, focus on the US or elsewhere everywhere?
Speaker 11: I think that when you look at our wealth management
Speaker 11: and business, we are planning to add around one hundred
Speaker 11: million a year in terms of assets. This is basically
Speaker 11: the net numbers. We're going to want to grow more
Speaker 11: on a growth basis, but we are willing also to
Speaker 11: let some assets go that are not yielding what we
Speaker 11: believe is the appropriate level to cover for risk and
Speaker 11: capital cost. And then beyond that, we believe we're going
Speaker 11: to grow at around two hundred billions. So if you
Speaker 11: think about what it is we are recreating, you know,
Speaker 11: the business we just acquired, you know, we acquired seven
Speaker 11: hundred billions of assets. In the next three to four years,
Speaker 11: we're going to build up organically the size of credit
Speaker 11: suits again, so it's very important for us to do that,
Speaker 11: but in a sustainable way.
Speaker 14: For the US, for example, can we se an acquisition No,
Speaker 14: I think.
Speaker 11: That the US what we need to do is now
Speaker 11: to institutionalize our platform by giving more capabilities on deposits,
Speaker 11: on credits. We need to brought up more of our
Speaker 11: global expertise in terms of CIO offering products, the asset
Speaker 11: management capability that are coming in. And what we need
Speaker 11: to do is also to allow and make it easier
Speaker 11: for our non US clients to book business in the
Speaker 11: US because a lot of our global clients they want
Speaker 11: to be also booked in the US and this is
Speaker 11: the real opportunity.
Speaker 14: So we believe that.
Speaker 11: By doing that, we're going to be able to narrow
Speaker 11: the gap to our competitors and setting the base for
Speaker 11: the next phase of growth.
Speaker 1: Bloomberg Daybreak Today your morning brief on the stories making
Speaker 1: news from Wall Street to Washington and beyond.
Speaker 2: Look for us on your podcast feed at six am
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 2: get your podcasts.
Speaker 1: You can also listen live each morning starting at five
Speaker 1: am Wall Street time on Bloomberg eleven three to zero
Speaker 1: in New York, Bloomberg ninety nine one in Washington, Bloomberg
Speaker 1: one oh six' one in Boston, and Bloomberg ninety sixty
Speaker 1: in San Francisco.
Speaker 2: Our flagship New York station is also available on your
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Speaker 1: Listen coast to coast on the Bloomberg Business app, serriusxmb
Speaker 1: iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
Speaker 3: And I'm Karen Moscow.
Speaker 2: Join us again tomorrow morning for all the news you
Speaker 2: need to start your day right here on Bloomberg Daybreak