No Nickel Costs Trafigura More Than A Dime

convinced it's close to five. Britain's two billion pounds fraud bills bags can't be copied in cyberspace and Sam, are you there? The final hours of FTX. Those other stories we're looking at in today's papers are nine Leanne Gern's plus a multi billion pound of football pitch. Jim Ratcliffe lines up golden sacks to bank roll his Manchester United bid.

That's all straight ahead on Bloomberg Daybreak Europe. The business news you need to start your day in just one fifteen minute podcast on Apple, Spotify, the blue Book, Business Appen and everywhere you get your podcasts. Good morning, I'm Stephen Carroll and I'm Caroline Hike. Here are the stories that we're following Today, traffic Eura is facing a five and seventy seven million dollar loss after discovering metal cargoes that bought didn't contain the nickel they were supposed to.

The commodity trader says it has spent the past two months uncovering what it believes is a systematic fraud against the company. Bloomberg's Sukinan broke down how Trafficura found out it had been duped. Traffic Our began reviewing its relationships with various trading partners late last year. It's apparently been buying nickel in containers that are already on board ships, and then it sells it when the vessels reached their destination.

The trade began to unravel when the company's investigators arrived at a port in Rotterdam. They checked the contents of the container and guess what, no nickel inside? It was some other worthless metal, Szukeenan reporting there. The revel another black mark for the metals trading industry, which in recent years has been beset by tales of fake warehouse receipts,

duplicate shipping documents, and even containers filled with painted rocks. Now, thousands of AID workers are pouring into Turkey and Syria, where deaths from Monday's massive earthquakes have now risen past twenty thou people. Prime Minister Rishi soonac Here is urging everyone to donate what they can to support those in need. We will do everything that we can to help Turkey.

I already said that to the President when I spoke to him a couple of days ago, and what the government's also said is that we will match all of the country's donations pound for pound. Soon I spoke as the first un AID shipment arrived in Syria loaded with blankets, hygiene products and materials to give people temporary shelter. Meanwhile, the World Bank will provide Turkey with nearly one point

eight billion dollars for disaster relief and recovery. The Bank of England Governor Andrew Bailey says big increases in public sector pay will add to inflate and if they aren't offset by tax increases. Speaking to the Treasury Committee in Parliament, Bailey said that even with falling energy costs, inflationary risks remain. If you've got those powerful sort of downside forces, why

are you raising interest rates again? And the answer for me to that question is, I'm very uncertain, particularly about price setting and wage setting in this country. We have got the largest upside skew on and our forecast that we've ever had on inflation. Bank Ofving governor is speaking as firefighters called off the threat of strikes after receiving

an improved pay offer. The Fire Brigades union send its members would vote on a seven percent raised back dated to last summer, and a further five percent increase from this July. Now. China's consumer inflation accelerated last month as the lunar New Year holiday stimulated demands. Bulloomberg's Brian Curtis has more now From Hong Kong, the CPI rose two point one percent from a year earlier. That was in line of estimates. Core inflation, stripping out food and energy,

gained just one percent. In the meantime, the pp I fill zero point eight percent as commodity prices lagged. The estimate was for a drop of zero point five percent. Bloomberg Economics says the pickup in cp I was down to higher food prices, not services. As such, the signal is underwhelming in Hong Kong, Brain Curtis Bloomberg Daybreak Europe. British billionaire Jim Ratcliffe is said to have lined up banks including Goldman Sacks, to bankroll a bid to buy

Manchester United. The source says the banks are prepared to fund a takeover offer for the English football club with bonds and loans. Bloomberg understands this would include covering Manus existing eight hundred million dollars of debt. Shares in the company starts this week. On reports, Qutari investors are also looking to bid for the clubs that as the latest on man United and the potential takeover bid their interesting stuff on a day where here at home we saw

tst he has another record high. Yeah absolutely, this was results from astro Zenica Standard charted the help to lift share prices in London. I mean the one was an our performer losses is quite interesting that it's continuing to power higher today, But that's not top of my list I think today in terms of the most interesting stories. It's a Friday, after all, This one has my attention.

Um Lux walls, net zero glass. This is all about how heat is we know escapes from people's homes through windows. Bill Gates is making an investment into this business. I mean, look at prominting, what what what? Windows? Are we talking about it? But it's known for his success with windows. Is now investing in a different kind of windows. As one of our our office wags equipped earlier, doesn't mean

we'll have to upgrade it every year. Ah Yes, very funny butt of heat basically from buildings escapes through windows. So yeah, really interesting that the billionaire is putting money into that. And the other one weekend reads that I like, so we know that kind of staying trim can perhaps and make you live longer. But now that Columbia University is doing a two year long study cutting calories by apparently slows aging. So there we are. And it depends

on where you start from. I would imagine, yes, perhaps I think perhaps if you're a normal way, but yeah, anyway, if you're slimmer, you get to live longer. I will retain judge, reserve judgment on that one. Okay, up next, Britain's two billion pounds fraud bill Rams bags can't be copied in cyberspace? And Sam are you there? The final hours of ft X now the paper review on blue Bird Daybreak Europe. The news you need to know from today's papers. Go into is here for the newspaper review

this morning. The headline in the Telegraph reads Britain forced to pay Brussels two point three billion pounds over import fraud. What's going on? Yes, indeed, Caroline, and good morning to you. Just one quick thing. Apparently if you're in a relationship you also live longer too, so not just cutting calories. So there we are lots of studies all around. But

let's get back to the story. Actually that's in the Telegraph today, Caroline, and the government has paid this huge sum of two point three billion pounds to the EU. Now this comes after a court rule that Britain had actually failed to collect billions as a result of fraud on imports, and these came in from China. The newspaper says.

The European Commission did complain that importers into Britain had really escaped a number of customs duties and this has all to do with false invoices and artificially low value documents for things like Chinese textiles and also footwear. The European Court of Justice ruled against the UK, saying it had failed to adopt the measures necessary to combat import fraud and this is between the years twenty eleven and twenty seventeen. And remember at this time Britain was still

a member of the EU. John Glenn, the Chief Secretary to the Treasury, said Britain had maintained that it had taken appropriate steps to counter forward throughout the legal proceedings that were ongoing. However, he also said the UK has increased its measures to prevent a fraud going forward. So there we are. We see the battle between the EU and the UK government. I mean, it's interesting because it

was such a huge case. I mean it's more than half of all textiles and footwear actually imported into the UK from China were below the kind of acceptable levels that that that they were meant to be according to Europe. But yeah, it was. It was huge affected a lot of imports into Britain. Thanks le leantoone to a story next which maybe one of the most twenty three stories that I can imagine at the Times headline Erma's bags wining digital token copyright case. Is it a bag? Is

it not a bag? Who knows? It isn't a meta broken? We don't know, But you know what, I think you're completely right. This is a very very modern court battle, Stephen. And it's one between the extremely expensive handbags and digital tokens. Okay, let me break this down for you. So a digital token featuring copies of M's broken bags did infringe the fashion houses trademark rights. Now, this is all according to a New York jury. The moment has been described as

a terrible day for artists. The case before a federal court in Manhattan was one of the very first disputes over the popular non fungible tokens to go all the way to trial. So there we are. This is why the battle is so modern. Now the French luxury design house has been awarded one hundred thirty three thousand dollars in damages. And this is for trademark infringement, evolution and

also skybus squatting, cyber squatting, a term I hadn't heard before. Now, you know, these bags are so expensive, and they are so so rare, and they retail between seven thousand, five hundred and nearly twenty five thousand. But we must remember if a rare one has been made, it can sell for a whole lot more than that. So I was wondering if meta bookins they're no longer on the market, but would they have been cheaper? But you can't show them off. So I was a bit like you screen.

So do you walk around with your screen saying I've got a meta book and on a night just split it in your home? Yes, this is true, further proving than in cyberspace, only intellectual property lawyers can hear you scream. Just last you though this story is a long reading the ft B. It's really interesting, Sam, are you there? The bizarre and brutal final hours of FTX. I actually printed it out and I think it's a six page read on both sides of the paper, So if you've

got a bit of time, please do reader. But Stephen Carroll really inspired me when it came to the story, because reading six pages on a Friday morning it's not very easy. But this is an amazing account of what happened during the collapse of the crypto firm f t X. We have been covering this extensively on Bloomberg Now. Joshua Oliver has spoken to the former x f t X employees, people with real first hand knowledge of the events that sent it really spiraling, and he's also spoken to Sam

bankmun Freed himself. Now, the article does include so many messages from slack signal and other messaging platforms from Sam bankmun Freed and other senior figures in the business. There were really some incredible details, including how when reports of troubles at f t X did start spreading, staff for rushing to leave their offers, throwing out clothes with the company's logo on because there were rumors people we have

been searched at airports. One employee said it was the most crazy head take twenty four hours of my life. I felt like my world was falling apart. F t X was not just a job for me and for other people. F t X was my life, and I think this is something we do need to take into account when we read this, real people were working there and this has impacted their life and investors too. And the article also saw an exchange between s PF himself

SPF and CZ, his arch rival. We see these text message exchange when Sam bankmun Freed asks about the buyout deal and CZ, Sam's biggest arch rival just basically said, we can't continue with there's too many issues. Real short reply to something that had been so eagerly anticipated and also another nice thing in this article talks about Sam bankman Fried's life and just how normal it seemed when

the journalist Joshua Oliver went over to his house. Apparently there were hummingbirds around the fountain and his parents were extreme degeneration welcoming. Yeah, I mean, look, I think it's it's a great bit of reporting in the ft Um. The thing is it's all going to court, and so that that's the issue. I think it's what's what happens in the court case is going to be a very

fascinating Thank you so much the against for our newspaper review. Now, the latest inflation figures from China give us an indication of the picture for consumer demand in the world second largest economy, following countries easing of its COVID zero restrictions. But what does it feed into the global inflation picture and the demands on central banks. Let's bring in our te Frates correspondent Garfield Reynolds. Garfield, great to have you. Inflation picking up in China. What does it mean for

the rest of the world. Well, I mean I moved a couple of things. You're on. On the positive side, it does you know, speak to the idea that China coming out of COVID can look forward to a stronger growth profile than had been the case. And that's something that a lot of people have been encouraged by, uh, you know, the idea that the reopening trade would restore that whole of the global economy that China had created.

It does also, though, add to the potential that inflation comes bouncing back despite the concerns that you know, despite the optimism that the slowdown we've seen in inflation rates could extend. So that's something to keep an eye on. One slightly positive factor there is that the producer prices in China, and that is a key part of the way that China feeds into global inflation is what's going on with its manufacturing sector. They fell zero point eight percent,

which was a bigger than expected decline. So the inflationary impulse out of China might not be too strong. And I think in fact that, to be honest to FED and so on, a far more worried about what's going on with services and the potential for um, you, wage wage inflation, for a wage price spiral, and that's something that's far more about services industry in the US, bottlenecks and and and other, and the long term impact of the pandemic. Garford. Just speaking of the US, the treasury

yield curve has moved significantly. It's the most inverted since the eighties. There seems to be a real rethink in markets now they're getting the message from a hook ish FED. How do you see it briefly, Well, I mean a lot of ways markets have been, you know, not totally out of that with the FED, especially when it comes to long end the short and there's been a bit of the optimism, like I said about the idea of

FED you could ease off sooner rather than later. But you know, the jobs numbers last week really didn't help on that front, or last month, and the curve has been about this inverted for a while. It's also just gone past a hundred and fifty trading days, which was how long the yield curve in version lasted back in two thousand and six, two thousand and seven in the lead up to the two thousand and eight crisis. So we've now got the longest inversion since the one that

ended in two thousand. The bad news is that back in the nineteen eighties. That era again, we keep mentioning it. Back then, we had inversions that lasted two hundred and seventy and four hundred plus days. This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Streets and beyond. Look for us on your podcast feed every morning, on Apple, Spotify, and anywhere else

you get your podcasts. You can also listen live each morning on London D A B Radio, the Bloomberg Business app, and Bloomberg dot Com. Our flagship New York station is also available on your Amazon and of devices. Just say Alexa played Bloomberg thirty. I'm Caroline Hitka and I'm Stephen Carroll. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak Europe