Tina. As always, thank you so much for giving us a little bit of your busy schedule. Now, the government has this Global Investment Summit on Monday here in the UK. It will be one of the first times that international investors really get to know this new administration. Do you think they've done enough to try and attract investment to the UK.
No, it's early days. I think they've absolutely set up their stall and it's right that they have put investment and growth at the heart of their strategy. The question is how do they do it and what is the role of government in terms of really unlocking private capital,
and that's both international capital and domestic capital. So having the opportunity to have this Global Investment Summit next week, I think is a great opportunity really for the government to set out its stall and really put a little bit more flesh on some of the ideas around, for example, the National Wealth Fund, and particularly the role of the UK Infrastructure Bank and the British Business Bank in terms of working with the private sector to de risk some
of these sort of longer term investments that are so needly needed in the UK.
Are you optimistic about the prospects of the UK economy, but also you know, outside investment, I.
Am actually I mean, look, this year, we do expect there to be quite sluggish growth in the UK economy. We've only had one into straight cut so far this year, even though we're expecting another one later on in the year. But we do expect the pace of those cuts to accelerate into twenty twenty five, so that does create a
positive backdrop for growth. And at the same time, really what we're hearing from clients, and this is both international and domestic, is what they really value is the political stability that has been brought to the UK after the general election, but most importantly wanting to see predictability and policy stability to allow them to invest in long dated opportunities.
So you know, do you think that you know, the October thirtieth budget is a really big test for the government as again the labor probably hasn't been in power for a long time. So what I'm hearing from big international investors is that they want to see really what it's about, and it's the first time we get a properate test.
That's absolutely right. So all attention is really focused on October thirty and we've already seen there's quite a lot of speculation with regard to what is going to be in the budget. You know, we have seen guilt yields rise, you know, over the last week as there have been
some concerns around increased investment spending. But certainly I think the government has done the right thing in terms of just setting out their intention around the right guardrails, the fact that that investment is not going to come all in one go, it's going to be phased across the electoral cycle, and most importantly that they intend on working closely with both the OBR and the National Debt Office or the National Audit Office, because that will reassure both
domestic and international investors.
What are you most excited about in the UK? I know there, you know, there needs to be more apos at some point hopefully. Is London the right place for that?
I think so. I mean, for me, the UK is the gateway to the world. And actually when we look at the IPO market here in London, it has actually performed pretty well compared to previous years. So we have seen a significant increase in IPOs, admittedly from a low base, it's up about fifty percent so far this year, but most importantly, those IPOs have performed very well, So I think there is a backdrop with the rising foot seat
and the interstrate environment. That actually means the backdrop in terms of the macro environment is actually looking broadly positive for twenty twenty five. And certainly when we speak to the C suite and to our corporate clients, they continue to look for opportunities to invest, so that is key.
So corporate balance sheets are strong. There's been a lot of financing which has gone in the deck capital markets, both for M and a financing hybrid capital refise, liability management exercises, so that means that we don't see much stress in the system, which I think is also important.
You've been in charge of ze Group UKIT for a year? Has it been? I mean there's been a lot going on at the bank.
There has There's always a lot going on at City, but the year has flown by and I really remain so excited about the opportunity in the UK. You know, where I've really been focused on is really taking advantage of cities global network. We're in ninety six different countries, but really focusing on those key trade corridors for US. So we're looking to grow business between London and New York. Of course the US is our home market, but also in fast growing regions such as the Middle East and
in countries such as India. So for me, it's not just about our banking business, but it is also about how can we deliver one city through our markets, our wealth and of course our world class services franchise.
We are basically one year on from the biggest reorganization of City Group, with the chief executive Jane Fraser, putting a number of things in place, and you were talking about how you're also taking advantage of some of the unique challenges but opportunities that you have. What's been the biggest difference, So we have.
Really simplified our management structures. It sounds very mundane, but things like fewer committees, fewer meetings, fewer management layers. We've reduced management layers in some cases down to twelve from fifteen sixteen seventeen, you know, so that means we're able to really speed up decision making much better and drive accountability. So that really has been I think the biggest change.
Will you hire people in the UK now that you've kind of do have it where you want it? To be eaten.
We're pretty much at the right size. We will continue to hire selectively as we always have done. So we've recently had our new head of our commercial bank for the UK join he joined last week James Morris, and of course at our most senior levels we've been able to hire some really world class talent with this Ragavan joining as head of Banking Tim Ryan in terms of technology,
so it is less about actually hiring significantly. We will always be strategic around needing to fill fill roles, but at the same time we have a deep bench at cities, so it's also around giving people within our own organization the ability to step up.
Do you know when you look at Europe, I mean the banking world was like with speculation and then I guess almost confirmation that there could be a merger although the Germans don't want it. But between Commerce Bank and UniCredit, how does that change the banking landscape and you your world?
So, I mean the European banking sector has been highly fragmented forever and there has been lots of discussion over the years around the need for banking union, capital markets union. So certainly from our perspective, I mean we have a significant presence in Europe in many different countries. So for us, really any developments that require or actually allow for a greater free flow of capital across the region we would welcome because that allows us to deliver our cross border
capabilities more effectively. So we look on with interest.
But is it a litmus test of whether there's you know, appetite for a political banking consolidation.
I think it's certainly going to be an important moment for European banks, and I think it's interesting both. You know, some of the comments that have come out from Mario Draghi in his most recent report around competitiveness in the EU, around regulation and again the need to drive capital markets union, I think all plays into I think this next phase.
Do you know when you look at you know, I guess the banking landscape here in London. I know you're committed to Canary Wharf, but also maybe looking at other places, what do you think happens to Canary Wharf?
Well, as you know, Francine, we are committed to Canary Wolf are in the middle of a significant renovation of our iconic city tower that's going to be completed in the middle of twenty six. So when that's done, we will have ten thousand people in London, the majority of which will be at the wharf. So I think it's a great environment to work in and I think what Showby is doing with regard to that mixed use, I
think is to be welcomed. We also have four thousand people in Belfast, so that has grown from the low two hundreds twenty years ago. So again that is a region that we are very committed to.
Tina, thanks so much as always for coming on, Tina Lee. They're chief executive of City Group UK. Now coming up as