Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
The latest first on Dahlia, the storm that's smashed into Florida's Big Bend as a Category three hurricane yesterday, is still dumping heavy rain on the deep South. Florida Governor Ron Desanta says some of the worst effects are in a lightly populated part of his state.
Oh He clearly have significant damage throughout the Big Bend region, but the response has been swift and people are getting help.
Bloomberg meteorologists Rob Carolyn is here with more. So Rob, what is the latest on this storm.
Nathan and Kareny. Dahia has been downgraded to a tropical storm. It's going to be exiting the coast, probably very close to Wilmington, North Carolina this morning. Of the winds are now under sixty miles an hour, and that's in gus. The big problem with the system, as we mentioned yesterday, is now heavy rain which is falling over portions of eastern and northeastern North Carolina. That will gradually wind down today,
but flash flooding is likely across that area. Storm's going to be moving out into the atlant Antike over the next couple of days, and due to strong upper level winds, it's going to be weakening.
Okay, so is there any risk this storm does any more damage from here?
I think this storm is probably going to be drifting in the southwestern Atlantic off the coast of the United States for a couple of days. But as I mentioned, there's going to be strong upper level wind shear effecting the system. That's probably going to prevent it from redeveloping. I don't think it's going to be a threat to the continental in the United States once it gets offshore.
The only thing it may do is produce some swells which will affect the beaches on the east sides of Florida up through South and North Carolina next week.
All right, Rob, thank you now. Dahlia did lead to more than one thousand canceled flights yesterday, left about three hundred and twenty five thousand people without power from Florida into the Carolinas, and will likely cause ten to twenty billion dollars in damage.
When we turn to the markets now, Nathan and shares of ubs are surging the era more than five and a half percent. The Swiss Bank has posted the biggest ever quarterly profit for a bank in the second quarter as a result of its emergency takeover of Credit Suisse. The twenty nine billion dollar gain as a result of the account difference between the three point eight billion dollar price UBS paid for Credit Suiez and the value of
the acquired lenders balance sheet. We spoke with UBS Chief Executive Sergio or Madi, who confirm that thousands of job cuts are on the way.
We will have around three thousand jobs that will be made redundant over the next years. One thousand are in relation to our decision to integrate the Swiss Bank.
UBS CEO Sergio or Mahdi made the comments in an interview with Bloomberg's editor at large, Franca in Lagua. Here more of that conversation in a few minutes.
Well on the flip side, Karen, investors in Pernel Ricard maybe crying in their drinks this morning. Those shares are down more than four percent. The maker of Absolute vodka and Jamison Irish whiskey says its first fiscal quarter will be negative in the US as drinkers pull back on pricey booze after a pandemic surge. Company also expects weak sales growth in China.
We turned to the economy Now, Nathan, and we get some key economic data ahead of tomorrow's job support and a warning from a top FED official. We get the latest of Bloomberg's John Tucker.
John, Yeah, Good morning, Karen. Atlanta. FED President Raphael Bostik believes the Fed's job is pretty much done, it remarks to a conference in South Africa this morning. He says policy is appropriately restrictive.
I think we should be cautious and patient and let the restrictive policy continue to influence the economy less we risk tightening too much and inflicting unnecessary pain.
The FED has made clear their data dependent, and this morning we get another big piece of the possible with FED chair Jerome Piles that preferred the inflation metric. That may suggest there's more work to do. Bloomberg Economics says supercre PCEE inflation likely accelerated in the month of July. It could raise the odds of another FED hike in November. I'm John Tucker, Bloomberg Daybreak.
All right, John, Thanks.
We got inflation data out of the Eurozone this morning. Consumer prices stopped slowing last month in fact, they rose five point three percent from a year earlier because of energy. Economists had expected weakening well in Asia.
Nathan, China's manufacturing contraction ease slightly in August, and a gauge of new orders improved, and that's providing some hope that the worst of the sector's slump may be ending well.
Meanwhile, Karen, the Chinese developer Country Garden has warned it made default on its debt and raised concerns about staying in business. The warning came as the property giant posted a record first half loss of almost seven billion dollars.
I'm back here in the US, Nathan shares of salesforce or up about five and a half percent. The software giant gave a revenue and profit forecast for the current period that topped analyst estimates, and analysts say its cost cutting campaign is easing some anxiety about a sales slowdown.
In corporate news, Karen, more changes are coming to X that's the social media company formerly known as Twitter. In the post this morning, Elon Musk said users will soon be allodded to make video and.
Voice calls through X.
He says no phone number will be needed.
Well.
Another corporate news This morning, Nathan Bloomberg News has learned a as testing the use of three D printers to produce the steel chassis that he is used by some of its upcoming smartwatches. Then we get the story from Bloomberg's Charlie Pillett.
It would herald a major change to how the company manufacturers products. The technique would do away with the need to cut large slabs of metal into the product shape. Sources say that would reduce the time it takes to build devices, while also helping the environment by using less material. The new approach has the potential to streamline Apple's supply chain and kick off a broader shift in New York. Charlie Palelett Bloomberg Daybreak, and it's.
Time now for a look at some of the other stories making news around the world. For that, we're joined by Bloomberg's Amy morris Any. Good morning, Good morning, Karen.
Senate Republican leader Mitch McConnell froze after a reporter asked his thoughts about seeking reelection. The senator abruptly stopped and stared for more than thirty second, even as his aides intervened, all right, I'm sorry, you already to need a minute. A spokesman for McConnell said in an emailed statement that the senator felt momentarily lightheaded and paused during the press conference. An aid said he felt fine, but planned to consult
a doctor before the next event. President Biden planned to reach out to McConnell after that incident.
Mitch is a friend, as you know, not a joke. We always know. People don't believe that case. But we have disagreements politically. But he's a good friend, and so I'm going to try to get in touch with him later this afternoon. I don't know enough to know.
There are concerns about the eighty one year olds Republicans' health. McConnell's had had a similar freeze moment during a news conference at the US Capitol in July. Donald Trump and his company are formally accused of inflating the value of his assets by as much as two point two billion dollars.
A new court filing by New York Attorney General Letitia James says the evidence of inflated values from twenty eleven to twenty twenty one is so strong wrong that the state should be granted summary judgment in its lawsuit, which claims persistent and repeated fraud. Peter Navarro is a one time aided former President Trump, and he'll be on trial next week for criminal contempt of Congress after failing to
answer a subpoena for the January sixth Select Committee. After the ruling, Navarro said the legal fees are bankrupting him.
We're going to go up to seven hundred and fifty thousand by the end of the trial, and the appeals are going to be over a million.
Okay, do I look like a rich man? This is the same suit I wore thanks the twenty seventeen going into the white Asse.
Varro's trial begins on Tuesday, and a plan by Tesla to purchase hard to get construction materials is being investigated by US prosecutors who are looking at whether the project was an appropriate use of company funds. Prosecutors are reviewing a twenty twenty two purchase order for a construction material identified as suspicious by company officials. Global News twenty four hours a day, powered by I had more than twenty seven hundred journalists and analysts in more than one hundred
twenty countries. I'm Amy Morris. This is Bloomberg.
Karen, all right, Amy, thank you. I just time now for the Bloomberg Sports Update with John stash Hour John kemn.
The Cincinnati Bengals. The last two years, they've played in a Super Bowl and at AFC Championship Game, led by the terrific young quarterback Joe Burrow. So Bengals fans had to hold the breath when Burrow suffered a calf injury just when training camp began in late July. But yesterday he was back at practice and Burrow hopes to play the Bengals season opener. Jonathan Taylor will miss the colts first four games, put on the physically unable to perform list.
Taylor has demanded a trade. It was already known that the Colts were talking to Miami. Now it's been learned they had talks with Green Bay as well. Couldn't make a deal. Colts GM Chris ballad yesterday's seen the situation with Taylor sucks. Baseball Giants lost at home to the Reds four to one. A's lost in Seattle five to four, the Mariners twenty first win in the month of August.
The Astros were the first ever sweep in Boston. They beat the Red Sox seven to four, Orioles out of four to nothing lead, then lost to the White Sox ten to five. In Baltimore's lead of the Al East over Tampa Bay is down to a game and a half. Nationals were shut out in Toronto seven to nothing. Upsets at the US Open castper Rude, the fifth seed who played in the final last year, lost in five sets. Seven seed sefinal Sitzepas lost to the twenty one year
old dominic stricker from Switzerland. And last night Caroline Wozniaki, who's been retired for three and a half years, upset Petrikvideva at Arthur Ashe Stadium seven to five, seven six. John stash Ewer Bloomberg.
Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
The biggest ever quarterly profit for a bank has just been posted in Switzerland. UBS reported those results nearly three months after the Swiss lenders emergency acquisition of rival Credit Suisse, and this morning the CEO of the last Swiss megabank, Sergio or Madi, says he is turning his focus to continue implementing one of the biggest mergers ever in global finance,
and that means more changes on the way. Are Mahdi discussed at all with Bloomberg editor at large Francine Lacqua, Let's bring you part of that conversation.
Our industry is very difficult to do restructuring the deeper structure and necessary a credit swizz and extract the synergies without going through people and account Having say that there is a big element of the cost that is driven by real estate planning, by rationalizing legal entities and by it platforms shutdowns. On the account front, first of all, we are mounting a lot on natural attrition, on retirements and internal mobility and shifting also our permanent to external
account ratio. Having say that, of course we're going to have to take some practical actions in redundancies in the.
Years to come, mainly in Switzerland.
No, I think this is something that will affect, of course our entire workforce as much as you know in Switzerland, we expect from a proactive standpoint of view, we will have around three thousand jobs that will be made redundant over the next years. One thousand are in relation to our decision to integrate the Swiss Bank.
Will you believe that there weren't any nasty surprises?
Yes, I mean I think that.
I always felt that disintegration is not risky. It's complex and it takes time, It takes focus, it takes dedication. Of course, we have to. We cannot underestimate that the situation at Credit Swizz was as a situation that was clearly indicating that the business was not viable any longer. Creti Swiz has a very strong people, clients, franchises, product capabilities, but the business model was not there. It was not the right to want any longer. And I think that
the excellence is the excellence part of Cretit Switez. Now as part of UBS can flourish and make UBS stronger.
What will happened to the Credit Swiz.
Brand, the Critswist brand, you know outside Switzerland, we will face it it out. We may keep it for niches situation, but the brand that we will use outside Switzerland will be UBS. In Switzerland until the end of twenty twenty four, we will keep both brands. As we go through the integration of the Swiss operations, you.
Talk about the complexities of churs. I mean, this is a masterful job that you needed to do. How important was it to really almost get everything done or have a blueprint today so that customers, so that a lot of your also employees knew what was going to happen.
Yeah.
Of course, we announced the transaction five months ago. We closed it in June, and so everybody has an expectations that we have an answer for everything. So we made a commitment, for example, in the Swiss case where people were waiting for our answers, we made a commitment to go deeper and really analyze every possible option. At the end of the day, we did it as fast as possible.
The outcome was crystal clear. The best option is to integrate and that will help to give a t is the visibility and about the future too many of our people and our clients. But although nothing will really change between now and twenty twenty four four clients and we're going to make it smooth for clients to be onboarded at UBS sergery.
When you look at the AUMs and the net new flows, how much of it are actually coming from UBS.
First of all, I think it's very important to see that already in the second quarter at Krity Swiss, although we April and May we're still negative out negative flows. In June they saw positive inflows after the closing, so good momentum, clients coming back. At UBS, we add the second the best quart, the best second quarter in a decade in terms of nine new money, sixteen billions, and now as we speak in the third quarter, we see inflows on both platforms.
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