Bloomberg Audio Studios, podcasts, radio news.

Bloomberg Audio Studios, podcasts, radio news.

David Livingstone is the City Chief Client Officer, and David joins us now for more. David Commooniti, I's going to see you. I'm fantastic. Let's talk about where the action is at the moment. We've been saying around this table for a while that maybe the investment bank in recession is over behind us. We want to talk about where things are picking up the IPO market. How strong is the pipeline for this year.

David Livingstone is the City Chief Client Officer, and David joins us now for more. David Commooniti, I's going to see you. I'm fantastic. Let's talk about where the action is at the moment. We've been saying around this table for a while that maybe the investment bank in recession is over behind us. We want to talk about where things are picking up the IPO market. How strong is the pipeline for this year.

It's building, it's solid. But the conditions that you want to talk about and that investors are looking at as well as issuers are looking at in terms of rate out look and not so much the absolute, but particularly the volatility in the rate outlook. We're sitting here with some of the biggest spread in terms of potential outlook for year end rates in dollars that we've seen in a while. The issuers are looking at that and saying, well, how does that impact not just equity markets, but also investor appetite to be investing in IPOs right now? You're right, we've seen a very strong last few weeks, particularly in the United States, particularly in the healthcare sector. We expect those conditions to continue, but a broader rally and deepening of the markets I think relies on some of those other factors.

It's building, it's solid. But the conditions that you want to talk about and that investors are looking at as well as issuers are looking at in terms of rate out look and not so much the absolute, but particularly the volatility in the rate outlook. We're sitting here with some of the biggest spread in terms of potential outlook for year end rates in dollars that we've seen in a while. The issuers are looking at that and saying, well, how does that impact not just equity markets, but also investor appetite to be investing in IPOs right now? You're right, we've seen a very strong last few weeks, particularly in the United States, particularly in the healthcare sector. We expect those conditions to continue, but a broader rally and deepening of the markets I think relies on some of those other factors.

Has there been a structural shift because of what's developing a private markets that's maybe holding back companies and basically they've decided that I don't need to go public in quite the same way they perhaps needed two decades ago.

Has there been a structural shift because of what's developing a private markets that's maybe holding back companies and basically they've decided that I don't need to go public in quite the same way they perhaps needed two decades ago.

I think there has been a shift over decades and the growth of private markets, not just here in the United States but around the world give alternative capital formation opportunities. And you've seen I think the US is the standout in terms of the public market still being deep liquid, accepting very strong following in sectors with multiple comparables you go elsewhere around the world, UK, for example, very challenging in terms of the number of companies either leaving exchanges, moving to the United States or not coming to market, and with IPO levels being very significantly done.

I think there has been a shift over decades and the growth of private markets, not just here in the United States but around the world give alternative capital formation opportunities. And you've seen I think the US is the standout in terms of the public market still being deep liquid, accepting very strong following in sectors with multiple comparables you go elsewhere around the world, UK, for example, very challenging in terms of the number of companies either leaving exchanges, moving to the United States or not coming to market, and with IPO levels being very significantly done.

Speaking of which I have to go there. Zeker came to market in the US and New York, which is basically an after set of gly Rate them. This electric vehicle maker in China did really well, and it just raised this larger question of do you still see the same degree of cross border IPOs of companies not just in China but other places coming to New York. How much are people concerned about some of the geopolitics behind it versus Hey, a lot of people have money.

Speaking of which I have to go there. Zeker came to market in the US and New York, which is basically an after set of gly Rate them. This electric vehicle maker in China did really well, and it just raised this larger question of do you still see the same degree of cross border IPOs of companies not just in China but other places coming to New York. How much are people concerned about some of the geopolitics behind it versus Hey, a lot of people have money.

Let's go. I think it's not just a lot of people have money, but it's also just the depth and quality of the US capital markets. I mean it is gapping and significantly ahead of the rest of the world if you go around. I've mentioned the UK, but also the European markets are not as deep as they need to be, Asian markets the same. So I think it's that just continued attraction of the quality of the equity capital markets here in the US.

Let's go. I think it's not just a lot of people have money, but it's also just the depth and quality of the US capital markets. I mean it is gapping and significantly ahead of the rest of the world if you go around. I've mentioned the UK, but also the European markets are not as deep as they need to be, Asian markets the same. So I think it's that just continued attraction of the quality of the equity capital markets here in the US.

Is there a rival? At this point, we were hearing a lot from Paris. You buying that John talking to David Solomon, Brian moynihan talking about building out in Paris. It's looking better and better from every point of view.

Is there a rival? At this point, we were hearing a lot from Paris. You buying that John talking to David Solomon, Brian moynihan talking about building out in Paris. It's looking better and better from every point of view.

It was Micron doing the salek and they were doing the buying. So are you doing the buying too?

It was Micron doing the salek and they were doing the buying. So are you doing the buying too?

Particularly in Europe. I'll say that the Europe is the place that has to do the most structural chain post Brexit, because they need to build capital markets and as you know, they've been trying to build capital markets and banking union for many, many years now. And what you're seeing, I think in France, in the Netherlands, to a certain extent in Germany, is member states realizing that they need to deepen their independent capital markets before there can be an EU layer created. There is too many impediments and so what President mccron is talking about is absolutely sensible. And yes, Paris will grow, the markets will deepen, but I don't think, as to your question, will be a competitor of the United States.

Particularly in Europe. I'll say that the Europe is the place that has to do the most structural chain post Brexit, because they need to build capital markets and as you know, they've been trying to build capital markets and banking union for many, many years now. And what you're seeing, I think in France, in the Netherlands, to a certain extent in Germany, is member states realizing that they need to deepen their independent capital markets before there can be an EU layer created. There is too many impediments and so what President mccron is talking about is absolutely sensible. And yes, Paris will grow, the markets will deepen, but I don't think, as to your question, will be a competitor of the United States.

What does that mean for your regional footprint as city, Where do you want to be located, Where do you want to boost staff, pulled back on staff, given those forces that we've just discussed.

What does that mean for your regional footprint as city, Where do you want to be located, Where do you want to boost staff, pulled back on staff, given those forces that we've just discussed.

Well, we follow clients and so we've talked about an IPO market's obviously a very narrow bits of what we do. So our network remains. We operate in over one hundred and sixty countries around the world, and we continue to see broad opportunity in all of those regions that we operate in, So no dilution. Of course, there'll be at different times, different areas and more positive growth. Again, I come back to the US being with the characteristics of not just economic but innovation and some of the stimulus that's happening here Europe cautious, but many European clients see that as an opportunity to take their own business models outside outside of Europe.

Well, we follow clients and so we've talked about an IPO market's obviously a very narrow bits of what we do. So our network remains. We operate in over one hundred and sixty countries around the world, and we continue to see broad opportunity in all of those regions that we operate in, So no dilution. Of course, there'll be at different times, different areas and more positive growth. Again, I come back to the US being with the characteristics of not just economic but innovation and some of the stimulus that's happening here Europe cautious, but many European clients see that as an opportunity to take their own business models outside outside of Europe.

Do you think the US policy makers risks undermining the exceptionalism that we talk about every day on programs like this with some of the decisions that they're making. I'm thinking more broadly, perhaps more narrowly actually around things like M and A being unable to really know with any real clarity what kind of deal can get done in this economy with this White House.

Do you think the US policy makers risks undermining the exceptionalism that we talk about every day on programs like this with some of the decisions that they're making. I'm thinking more broadly, perhaps more narrowly actually around things like M and A being unable to really know with any real clarity what kind of deal can get done in this economy with this White House.

Yeah, I would make a Governments clearly need to look at policy, particularly in terms of foreign direct investment in sensitive industries and other things. That's always been present and will always be a be a factor. So I wouldn't point to one administrative decision. But if you're involved in cross border remanade you want to invest it in a market, it's the fact that you have to examined, whether you're in the tech sector, defense sector, banking, whatever it might be, you need to have that really considered carefully. To John's point, as you travel around you hear from clients, how concerned are they.

Yeah, I would make a Governments clearly need to look at policy, particularly in terms of foreign direct investment in sensitive industries and other things. That's always been present and will always be a be a factor. So I wouldn't point to one administrative decision. But if you're involved in cross border remanade you want to invest it in a market, it's the fact that you have to examined, whether you're in the tech sector, defense sector, banking, whatever it might be, you need to have that really considered carefully. To John's point, as you travel around you hear from clients, how concerned are they.

About policies that may change drastically next year depending on a change at the White House.

About policies that may change drastically next year depending on a change at the White House.

They're all asking the question. They're all, I think, who's going to win and what will be the policy setting. And that's very sensible, though, because the news announced yesterday in terms of the tariffs that the US is imposing, may indicate that actually policy differential won't be that great depending on who's in the White House. Of course, that's just speculation, but I think looking through that, it's really the volatility in the second half of this year that a lot of investor clients looking at, and on the corporate strategic side, I think people just want to see a little bit more certainly. You'll talk about that range of potential outcomes on monetary policy around the world, but they want to see a little bit more certainty in the fiscal situation and also that policy setting. So they're not making big decisions necessarily leading into the election, but they want to be as informed as possible about what it might be straight after.

They're all asking the question. They're all, I think, who's going to win and what will be the policy setting. And that's very sensible, though, because the news announced yesterday in terms of the tariffs that the US is imposing, may indicate that actually policy differential won't be that great depending on who's in the White House. Of course, that's just speculation, but I think looking through that, it's really the volatility in the second half of this year that a lot of investor clients looking at, and on the corporate strategic side, I think people just want to see a little bit more certainly. You'll talk about that range of potential outcomes on monetary policy around the world, but they want to see a little bit more certainty in the fiscal situation and also that policy setting. So they're not making big decisions necessarily leading into the election, but they want to be as informed as possible about what it might be straight after.

How are you preparing, given the fact that you've had clients in a lot of different countries, potentially even in China, at a time where we're going to get potentially a big disruption. How is that informing some of the restructuring that city has done in terms of not just the footprint and where you are, but how you are arranging your sweeter products.

How are you preparing, given the fact that you've had clients in a lot of different countries, potentially even in China, at a time where we're going to get potentially a big disruption. How is that informing some of the restructuring that city has done in terms of not just the footprint and where you are, but how you are arranging your sweeter products.

So nothing about our reorganization, not restructure, but nothing of our reorganization that we've executed over the last number of months is to do on our geographic footprint. Indeed, we've reconfirmed the importance of our sort of global network and footprint. So what we have done though is sharpened our ability in our focus of our businesses and also the capabilities that we have to address clients needs is make sure that they're direct. Did very clearly towards the client. So where that network, that footprint and some on and that products that remains unchanged from what we had previously.

So nothing about our reorganization, not restructure, but nothing of our reorganization that we've executed over the last number of months is to do on our geographic footprint. Indeed, we've reconfirmed the importance of our sort of global network and footprint. So what we have done though is sharpened our ability in our focus of our businesses and also the capabilities that we have to address clients needs is make sure that they're direct. Did very clearly towards the client. So where that network, that footprint and some on and that products that remains unchanged from what we had previously.

So you said that the reorganization has been largely completed, and yet there have been a number of recent access and I'm wondering how difficult it is to really retain some of the top talent at a time of turn of change, which is always tough.

So you said that the reorganization has been largely completed, and yet there have been a number of recent access and I'm wondering how difficult it is to really retain some of the top talent at a time of turn of change, which is always tough.

It t is tough. I'd say that what we announced yesterday in terms of two senior retirements of t D col and Mike Whittaker absolutely planned all part of the execution the Jane Fraser, our CEO, had in mind. So this was normal, unexpected. But I go back and say, actually, our ability to attract very senior talent is high. Andy seeg who joined to run our wealth business, Tim Ryan, who announced yesterday will be joining us as had of technology in business enablement. This is very, very high quality talent. This Ragavan who's joining us shortly to run our banking business, top tier talent. Attracted a city attracted to the opportunity in the platform that we have.

It t is tough. I'd say that what we announced yesterday in terms of two senior retirements of t D col and Mike Whittaker absolutely planned all part of the execution the Jane Fraser, our CEO, had in mind. So this was normal, unexpected. But I go back and say, actually, our ability to attract very senior talent is high. Andy seeg who joined to run our wealth business, Tim Ryan, who announced yesterday will be joining us as had of technology in business enablement. This is very, very high quality talent. This Ragavan who's joining us shortly to run our banking business, top tier talent. Attracted a city attracted to the opportunity in the platform that we have.

What do you think changed? Do you think something has changed to attract that talent? Is it something as simple as the stock price performance, which is up more than sixty percent is the end of October because silly stock, as you know, without being too critical for a lot of people, has been dead money for a long time starting to perform. Is that attracting talent? What is it that's changed for you?

What do you think changed? Do you think something has changed to attract that talent? Is it something as simple as the stock price performance, which is up more than sixty percent is the end of October because silly stock, as you know, without being too critical for a lot of people, has been dead money for a long time starting to perform. Is that attracting talent? What is it that's changed for you?

I think you need to go well above the share price for it. I think it's clarity of strategy, and I think our chief executive has set out a very clear strategy, made some very clear decisions in twenty twenty one in terms of some of the business activities that we would discontinue, and being really clear through this reorganization of the accountability that she wants the businesses to have but also to perform, and that I think is the factor which is attracting this talent.

I think you need to go well above the share price for it. I think it's clarity of strategy, and I think our chief executive has set out a very clear strategy, made some very clear decisions in twenty twenty one in terms of some of the business activities that we would discontinue, and being really clear through this reorganization of the accountability that she wants the businesses to have but also to perform, and that I think is the factor which is attracting this talent.

Language is important. You keep saying reorganization. What is the difference? Just help me understand between a reor and a restructuring.

Language is important. You keep saying reorganization. What is the difference? Just help me understand between a reor and a restructuring.

I think restructuring implies that you're changing fundamentally your business mix. Also implants that you might be sort of divesting in certain things. It's not. We've had a management reorganization, so our structure catches up with our strategy and we have a much simpler management structure than we had previously.

I think restructuring implies that you're changing fundamentally your business mix. Also implants that you might be sort of divesting in certain things. It's not. We've had a management reorganization, so our structure catches up with our strategy and we have a much simpler management structure than we had previously.

Seems to be pay enough big time based on the share price performance, because that's what I focus on. Setties up this morning, or rather down just a little bit, but over the last six months or so, pretty phenomenal price sanction there, David, Thank you, sir, good to see you. Thank you very much. David limitson that of City

Seems to be pay enough big time based on the share price performance, because that's what I focus on. Setties up this morning, or rather down just a little bit, but over the last six months or so, pretty phenomenal price sanction there, David, Thank you, sir, good to see you. Thank you very much. David limitson that of City