♪ dani: good morning. this is "bloomberg daybreak:

europe." i am dani burger in london and these are the stories that set your agenda. sources tell bloomberg that ubs plans to cut over half of credit suisse's workforce with the trading and investment banking hardest hit. security risk. nvidia and amd shares fall after the wall street journal reports that washington may curb on selling ai chips to china. the world's top central bankers, including fed chairman jerome powell, speak at date two of the ecb forum. we are live in portugal. the aussie dollar draws on sop inflation with global equities mixed. apple hits an all-time high, yet again. big cap tech, microsoft, nvidia, all those things led the rally. what we see this morning is a different story. let me show you what nasdaq futures are doing at this very moment. here is the two day shirts. you see that big pickup -- day charts. you see that big pickup into the dig yesterday.

almost at. $3 trillion for apple. look what's happened today. the nasdaq leading losses in the futures session, concerns about the u.s. closing loopholes around ai chips. we will get to that in a moment. let me show you what treasuries have done. we have the spat of really strong u.s. data yesterday, everything from housing to durable goods to consumer confidence. yields picked up by about six basis points and held onto that for the most part. the action was in the belly of the curve. if we are going to be higher for longer, here's where you would expect selling to be. five year yields coming in less than one basis point. that rise is holding. on the bond story, on the inflation story, some moves in australia. let's check it out asia markets are faring and get over to charlotte yang. charlotte: the biggest surprise in asia markets this morning is cooler than expected inflation,

which is the latest data tells us consumer prices rose 5.6% in australia for may, the smallest increase since april 2022. some investors were caught off guard because this came in well below analyst estimates. helping the decline, easing the pies -- pricing pressures is fueling a drop in fuel prices and accommodation prices. if we exclude those more volatile items, we see the core inflation decline is much -- we see stickiness in terms of rents. when the rba meets next week at their policy meeting, they might consider taking a step back, to take a pause from the rate hikes we have seen. they might consider, you know, the four rate hikes we have seen in the past year. from the markets aside, we saw australia's currency take a hit, dropped as much as 1% before paring some losses. the three year treasury yield

also declined. dani: thank you so much for the very thorough update. that is charlotte yang. you can get a roundup of the stories you need to know to get your day started in today's edition of daybreak. dayb is where you want to go on your terminal today. . we are leading with robot clampdown. nvidia drops on reports of u.s. plans to curb ai. ubs also planning more than half of credit suisse's staff to cut. fabia panetta picked as bank of england governor. let's go to our other top stories. time for our morning roundtable. joining this morning's lizzy burden and rebecca choong wilkins. lizzy, second-most top story here, ubs cutting half the credit suisse staff. >> three months after ubs took over credit suisse. it was going to happen at some point, wasn't it? we are seeing plans to cut more than half of credit suisse's staff.

it's going to be traders and bankers who are bearing the brunt, as well as support staff. this is across london, new york, and asia. obviously, a difficult moment for the staff. dani: i go back to what ubs chair column said in may, that we are worried about cultural contamination. we will have an incredibly high bar for those we bring into ubs. it's now clear how high that bar is. they said they wanted to keep the top 20% of dealmakers, they wanted to keep private bankers. so many have already left. between the folks that are going to rivals and the cuts, it's going to be dominated by ubs, this new entity. lizzy: true. we also had second quarter results from jeffrey's financial group, revenue in investment banking clenched 26% -- banking plunged 26%. it looked likely but worse than expectations. it's a barometer of how wall

street fared during that turmoil. we had the collapse of various u.s. regional banks. dani: i think if i could start my career over again, i would want to be an internet citadel -- an intern at citadel. $120 per hour for an intern from levels.fyi, who gathers this data. $4400 for a 40 hour week. that's not too bad. lizzy: it's not too bad. i suppose they are trying to lure these gen z because they want to work from home, but this will force them to come into the office. dani: i would have happily come into the office for that type of pay. we saw this huge slump in chipmakers yesterday. nvidia fell, amd fell. this is after markets on that wall street journal story about new curbs on exports from these ai chipmakers. what exactly is being discussed

here, rebecca? >> there is two main components. the first, the u.s. may be extending the curbs on, you know, the so-called less capable chips. these so far have just required a license from the commerce department. the talking now from the journal is that the curbs we have seen may now be extended to these type of chips, and these are particularly used in generative ai technology. nvidia had focused on deciding -- design more of these types of ships this year. nvidia -- chips this year. nvidia, about 1/5 of its revenue is from china. the second part is that the u.s. may be looking to limit cloud service to chinese ai technologies. that covers a broad range of firms and may be an attempt to tackle this issue of dual use technology.

and a lot of chinese technology that goes into military, for example, it originally starts its life in the private sector in civilian use. that may be an attempt to seek that the riskier is that -- risk here is that unless these type of curbs are enforced rigorously, china has been quite effective in figuring out innovative ways to get around these types of restrictions. dani: yeah, certainly. as you say, we saw the reaction pretty immediately. that's our top stories right now. let's take a look at what we are going to be looking ahead to for the rest of the day today. at 2:30 p.m., this is the big one, it is the big panel which will have a jerome powell, andrew bailey, christina lagarde, ueda, going to be massive. later in the evening if you're in the u.k., 9:30 p.m. it will be the fed,'s banking stress test. they will incorporate more into the stress test.

there were criticisms last time around that it did not capture higher interest rates and what that meant for banks. finally, the other thing i will be looking out for today post market in the u.s. is micron earnings. i want to bring it back to you on this. we are talking about a further hit to nvidia, amd. micron is already in the crosshairs of u.s.-china politics. rebecca: absolutely. this is on the others of the fence. if nvidia and amd are victims of u.s. policy, micron taking the brunt of chinese retaliation against that. china launched a cybersecurity review in may, announced that micron has failed that. micron saying it expects about a low double-digit impact on revenues as a result of that failure. it is worth pointing out that china has been relatively muted in its response. it has not enforced a lot of this type of tit-for-tat policy so far. micron of only problem that u.s. firm to face this type a big

security review in the context of this chinese-u.s. tensions. the question now is whether or not we see china extending this type of scrutiny, extending this type of pushback to the u.s. and its allies' efforts more widely to u.s. firms operating in china. that is still unknown. so far, and has been relatively reserved. it is really the u.s. administration policies that are impacting and driving constraints to sales at the moment. dani: i guess for you on the day ahead, you're going to be looking at that panel, right? what is andrew bailey going to say? lizzy: we had a mixed picture in u.k. inflation news yesterday. shot price inflation is coming down. we heard from the last standing dove on the committee, she is optimistic about the future path for u.k. inflation. at the same time, bloomberg economics changed its forecast to the best case scenario is a recession because of these higher rates. you can expect in the q&a with

andrew bailey, he will be asked about a recession, is inevitable? i am sure he's going to be asked about his credibility, given that for so long, the boe insisted that inflation is going to be transitory. dani: not that anyone on that panel has it easy, but especially not so for andrew bailey. that is bloomberg's lizzy burden and rebecca choong wilkins. thank you both so much for discussing the top stories today. coming up on the program, u.s. exceptionalism. data on housing, manufacturing, consumer confidence, all of them come ahead of expectations. we are going to talk about markets and the strength of the u.s. economy with henrietta pacquement from allspring global investments, next. this is bloomberg. ♪ ♪

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dani: for all of the predictions of an american recession, the data has been surprisingly resilient. this is what we got yesterday. purchases of new homes climbing at the fastest rate in more than a year. house prices rose for a third straight month. durable goods orders topped estimates. consumer confidence reached the highest since the start of 2022. these are all readings that came in just one day, every single

one of them beating estimates. let's get to our markets conversation with henrietta pacquement, senior portfolio manager and head of global fixed income at allspring global investments. are you surprised by just how strong this american data has been coming in? henrietta: i will be honest, yes, i am. but i think it is a trend we have seen since the beginning of the year. you know, the consumer has been extremely resilient in the face of rate hikes, in the face of dealing with inflation, so it is a continuation of that trend. you know, we are continuing to expect more of a slowdown into the end of the year, but it has been decisively pushed into second half of the year. dani: well, we are looking at a chart right now that is the economic surprise index. to be clear, literally everyone has been surprised by this strong data. we are at the highest level since early 2021. the yield curve continues to flatten, 2's/10's is still

around -100 basis points. should we be positioning for this thing to rebound or to steepen or not if we are just pushing out recession estimates? henrietta: i think we are getting to the stage where central banks, not just the u.s., are getting to the stickier part of inflation. we've had their turn in terms of energy prices, goods, but we are waiting for, you know, more signs of a turn on the services side. so, you know, that warrants the stance that we have seen so far in rates, and possibly explains as well the sort of hawkish cause we saw out of the fed -- hawkish pause we saw out of the fed eight few weeks ago -- a few weeks ago. we are still expecting possible hikes in the u.s., and certainly in europe and the u.k.

that is starting to weigh on consumers, it is starting to weigh on certain areas of the economy. not as much as we anticipated, not as much as the market anticipated at this point. but, and i think we will see that this afternoon, central bankers are still focused on the inflation picture, and you know, that is the issue that they are trying to deal with at this point. dani:, this afternoon the big panel we get every year with all of the developed market central bank leaders put mesh, are we going to see an even more hawkish jay powell with all of this data in hand? henrietta: i think it is not helpful for him at this point to have data the strong. yes, we are sort of seeing chi nks, be it in claims, in earlier earnings, but we need to see more of that and more of a slowdown in terms of inflation numbers going forward. so yes, that strong data is not

helpful at this point. dani: now, when it comes to the european picture, we have seen, again, the same thing that's happening in the yield curve in the u.s. is also happening in the u.k., in germany. the flatness of those curves plumbing new lows. can you be buying risk assets? can you be buying corporate credit, especially more junky type credit in europe when there is this kind prediction for the economy? henrietta: so i think, you know, a slightly different situation in europe, and you know, they were slower to start their hiking cycle, particularly on the continental europeans i'd. -- continental european side. so yes, we favor upping quality at this point, be it on the investment grade side or the high-yield side. what we are looking and seeing from clients as well is an

interest in the sort of more defensive, given the context we are in at this point. you've got the case of the u.k. i think the u.k.'s, you know, a bit of a story on its own, because it's got its own issues and its own challenges related to brexit as well. i think this sort of situation and numbers actually in the u.k. are a lot more complicated than in continental europe. so yes, as the central banks continue to sort of put pressure and to deal with the inflation issue, you know, the corollary of that will be slower growth at some point. dani: henrietta, just before we let you go, i know your call is also to look beyond the dollar. the data goes to show this idea of american exceptionalism. the u.s. is the strongest economy. if you want to go somewhere safe, go for the dollar. why should we be looking elsewhere? and where else where do we look? in just less than imminent, henrietta. henrietta: yes, of course.

if we have a stronger recession, the dollar should benefit out of the. that being said, i think there is a return of yields globally outside the u.s., which does warrant an opportunity for investors to look outside the u.s. at this point. particularly if you are dollar based and you are looking at costs at this point, that can add a nice little kicker in terms of those investments as well. those are the reasons why we think it is an interesting place to look at outside of the u.s. at this point. dani: henrietta, thank you so much for joining us this morning. henrietta pacquement, senior portfolio manager at allspring global investments. coming up, is an economic storm brewing in the u.k.? we are going to discuss that, the brexit landscape with the ceo of brewdog. this is bloomberg. ♪

>> at the imf, we said that we thought we would prove the imf forecast drug. the managing director -- forecast wrong. the managing director very generously said we had proven wrong because she upgraded the forecast. the u.k. economy is proving more resilient than many people predicted, but inflation is too high, and that is the most important challenge we face and we would do what it takes to tackle that. dani: u.k. chancellor jeremy hunt on the country's economic outlook. sticking with the u.k., we often hear from commentators that britain is a less desirable place to do business than it used to be. to exploring a proposition, lizzy burden has been speaking to top british business leaders. brewdog is one of the country's biggest craft brewers and a major exporter from its base in scotland. before discussing that specific

business landscape, lizzy asked ceo james watt about the open letter signed by more than 60 brewdog staff alleging toxic attitudes towards junior staff. james: it's fair to say we could have done more to look after the fantastic members of our team. . we always want to be an amazing employer. when you are growing at 100% year on year, it's tough to do everything and i apologize to anyone who at that time did not have a good experience working for us. dani: lizzy continued her conversation, asking how the company has been impacted by brexit. james: as well. lizzy: you have been strongly anti-brexit? james: we have. that's had a significant negative impact on our business and that's been tough. we own bars in germany, france, italy, holland, and getting our beer to those buyers is significantly more expensive, significantly more difficult.

. getting beer to customers in europe has been significantly more difficult as well. it has massively handicapped u.k. companies that do business in europe with zero benefit at all. i think it's been tragic for u.k. business. a lot of the economic issues the u.k.'s facing over the last 12-24 months as as a result of the catastrophic decision to leave the eu and really cripple businesses in the u.k. for no reason at all. lizzy: you're taking a clear stance on brexit. what is your stance on scottish independence? james: i am not sure because i think there is so many details and questions that would need to be answered. what is the implications for european union? there is not enough information to make an informed decision but very anti-brexit. like i said, it has affected our ability to employ people, to invest. we could have grown more significantly had it not been for brexit. it is crazy the government shows to handicap u.k. businesses that significantly. lizzy: has it affected where you choose to invest? james: 100%, not only where we choose to invest but will be can

invest. . if it hadn't been for brexit, we would be able to grow european sales more. most of our european beer beer for europe is manufactured -- most of our beer for europe is manufactured in the u.k. we've now had to invest more in australia, japan, and america because of brexit. lizzy: food price inflation is a major concern for policymakers. james: yes. lizzy: how much has that affected you? is it still affecting you? james: it is a huge issue and we are lucky we do business in some countries around up on. . the u.k. has been impacted more severely than anywhere else we do business. i think it's a direct consequence of brexit and two, just the sheer incompetence we have seen from our leaders, unfortunately, over the last 12-24 months and the impact that has had on the u.k.'s economic viability. for instance, it costs me almost 40% more to make a case of beer now than it did 18 months ago. that is at a time the consumers got less disposable income to

spend so we've got to absorb the vast majority of that, which has made things challenging. we have just got to kind of find that margin through efficiencies within our own business. lizzy: does that include breakups? not as big pay rise -- pay cuts? not as big pay rises as people would want? james: we continue to invest in our people. lizzy: in line with inflation? james: not quite in line with inflation but the most we can afford at the time. it was 6% across the business. lizzy: do you see that inflation easing? james: i see it easing slightly from a point that was very dangerous and difficult but not easing to a point where any business could feel safe or comfortable or confident at the moment. lizzy: in general, because you work across the world, not just in britain, is your view that britain is open for business? james: i think the u.k. is a very, very tough place to do business. there is two thanks. i think brexit has been so, so tough. the u.k. is a decent sized

markets but not massive. most u.k. firms depend on business not just in the u.k., but a business saieh handicap,, that they are now handicapped is such a crazy decision. just investors and confidence in u.k. markets and you can business posted the catastrophic -- and u.k. business post the catastrophic experiment, it's had a huge negative impact as well. i think u.k. is a very difficult to invest at the moment and i think it's a very difficult place to do business. dani: brewdog ceo and cofounder jameswatt. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright.

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>> good morning and welcome back to bloomberg daybreak: europe i

am dani burger in london. where was that recession that was called for? it is certainly not happening here in the u.s. yet, we got some data yesterday. everything from homebuilding, home prices, durable orders, durable good orders, consumer confidence. all of them are really strong and that propelled a solid risk on session yesterday. heck did very well. you can see yesterday's session apple hit an all-time high but that has started to we can today. nasdaq futures dipped from that yesterday top, down about 4/10 of 1% so far this morning. the concern there being more curbs on ai chips. closing of loopholes for the lake of nvidia, amd, both of those fell at least 2% post-market. that strong u.s. data also fueled a bond selloff yesterday, it happened in the belly of the curve. five-year kurt -- came in about six basis points. it happened in the belly and we will be higher for longer if the economy is looking good. elsewhere if we are expecting

inflation to come in perhaps we can look to australia. we had figures this morning were cpi did indeed come in more than expected the growth weight there was not as much. aussie dollar sells off perhaps less impetus for the rva to keep hiking. at the same time we are looking at bond yields falling in australia. now let's turn our attention to europe where bloomberg has learned that ubs is preparing to cut more than half of credit suisse is 45,000 global workforce after the banks emergency takeover. if bankers, traders and staff in london, new york and asia will bear the brunt of the job losses . for more on this bloomberg scoop let's get to the reporter behind it, marion hopton meyer. tell us about the details of these job cuts, how surprising is the scale? >> with such a big bank merger, the combined bank ends up with over 120,000 employees and that is quite large. there is a lot of overlap and

they had similar businesses. we were expecting in the tens of thousands of job cuts but it was not clear exactly where yet here we have had, they are expecting somewhere between 35,000 job cuts overall with the bulk of that coming from credit suisse staff. we are going to be seeing that across the investment bank most predominantly because that is the part where ups wants to downsize because it has the businesses it wants in the investment banking area. it what it wants to keep his the private anchors will see less of those people go. >> has there been any reaction to this so far yet? >> we did see it shares rise in the u.s. after the story came out late last night, european time. but that is definitely a positive. what i understand is i think investors and analysts will really be welcoming this news in the sense that they want the cost cutting to happen. it is unfortunate for people losing their jobs but in order for ubs to make this merger work they need to get cost under control and that is often

staffing so they said they want to save at least $6 billion in costs by 2027 which is where they expect the integration to be finished. this is a key step in that direction. >> thank you so much, fantastic reporting. our banking reporter in zürich. i want to bring you some breaking lines we got about the ecb earlier this morning, some officials are weighing a faster reduction of their bond portfolio. some 5 trillion euros, the debate is whether you have sales of the securities to complement some of the steps taken to date or you do just a rolling off of the bonds and phase out reinvestment of the bonds that were bought during the pandemic. all of this lends itself to tighter policy. if you want to more quickly reduce the bond portfolio. part of that has been the conversation of where the world's top central bankers are speaking today at the ecb forum in portugal. we saw it open already with a choir of hawkish warnings,

christine lagarde of the ecb said officials probably won't be able to declare at the end of their tightening push anytime soon. >> it is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached. >> if inflation turns out to be more persistent, further action is needed so interest rates and other things will be needed. >> we will do what is necessary for inflation to come down to 2%. >> we should not exclude the possibility that we are going to hike or might hike in september. >> in some countries, especially the u.s., they were expecting three rate cuts this year for u.s. fed policy and they have adjusted. >> the momentum being stable in the u.s. and europe at around 5% on a yearly basis, we need to see that coming down. >> i think markets have been

very optimistic and i suspect they are still somewhat optimistic about the path for interest rates. >> leading all of those conversations is francine in portugal. what is going on here, i feel like you are drying out all of the hawks? what is the sense of the ground? >> partly you are right we did speak to a lot of hawks. i think there is a general sense that they need to re-guide the markets. the big one today is a policy panel, we will have the bank of japan governor. he has concerns of his own so we will get to that, but then you have christine lagarde who said come what may we will continue raising rates so inflation does not come down. this feels like a whatever it takes, but the market to not take it like that. we also had jay powell and his testimony, we both followed it closely. he kept saying despite no market movement that interest rates will probably have to go up and

then you have andrew bailey, highest inflation amongst the g7. it is almost like a dance because a lot of them are hawkish because i wonder the market is not understanding the hawkish messages and we saw a lot of the hawks, especially pushing back against cuts at the beginning of the year or the ecb. mr. ueda is different because he is pushing back against all of the tightening against world so it will be interesting in this panel the first time he speaks on the panel or has a big public appearance since appointed governor outside of japan. he needs to make sure that markets understand that he means business so he may threaten with some kind of yield control loosening without actually following it through. he is also a lot more dovish than a lot of people thought when he became head of the bank of japan. >> it is so true, a lot of those bets for yield control normalization have not paid off. back to the ecb, when it comes to the balance of hawks and

doves things might be changing a little with maloney picking the ecb's panetta as the bank of italy governor. what more do we know about this? >> he is actually a very well-known figure, he has been at the bank of italy for around 30 years. or about 25 years if you count some of his stents elsewhere. he became an executive board member of the ecb in 2020 so he is very well-known to the markets. he is very well-known in frankfurt, he is a dove a little bit and has -- if you look at some of the southern countries especially italy with its huge debt problem and so much of their banks reliant on the tltro's, we have seen in the last couple days a lot of political aggression towards the ecb. it is different, they are dovish because any interest rate hike for a lot southern countries who are extremely indebted could really hurt the economy. we have a right-wing coalition

that is already pretty fragile in terms of economics because they can't get all of the funds from the eu in time. we could hear a lot of the government trying to push back against the ecb and then mr. panetta with a lot of heavy weight exposure from frankfurt but still a dove to counter may be some of the hawks that we have been speaking to. >> thank you so much. looking forward to your conversations throughout the day there. that is bloomberg's francine at the ecb forum on central banking. we are going to have a lot of interviews, we will bring you with francine from that format and the ecb vice president. we begin is at 8:15 a.m. u.k. time. of course don't miss the imf european director and the greek central bank governor. that will happen later in the day here on bloomberg tv. now let's get the latest on geopolitics and russia. belarusian president alexander

lukashenko it says he personally intervened with russia's president putin and the founder of the wagner mercenary group. this after wagner forces came within about 200 km of moscow. from a wider look at the story joining us now is our africa correspondent, jen what is happening in the wider context of wagner and africa too? >> it is really fascinating when you take a look at this. wagner has been in and across africa for a number of years which many people have talked about in the past that has been brought to light given what we have seen over the last few days. when we talk about countries across the region, libya, mali and sudan. really what is the most critical to the wagner group and over the past few years what we have seen it, their stronghold grow in the central african republic. this has been a country that many people potentially know as one that has faced instability for a number of decades but it

is a country rich in diamonds, gold and uranium. what we have seen from the wagner group with the backing of the kremlin's they have gained a strong hold over a number of things, like security contracts across the region, backing the army there, and also mining licenses. there is one report that suggests that wagner controls a gold mine that is capable of producing about $290 million worth of gold. they really have a lot of influence in the region and they are seen as a crucial player for the kremlin to be able to insert its influence across the region. when we talk about the events over the past weekend, there is concern with the dissipating relationship between wagner and russia and what that means for african nations. what we heard from russia's foreign minister over the weekend is that he reportedly got a number of calls from african nations with concern about what this means for them.

there is a lot of questions right now about what exactly wagner is going to look like across africa, what this means for countries such as the car where wagner has over a number of years been reportedly some -- supporting the army and potentially committing human rights abuses. there is a lot of questions rolling right now about how this plays out, especially on the continent. >> we have been talking about what this means for russia, it is not just those whose countries it is a whole continent. thank you so much for that, that is bloomberg's africa correspondent. coming up with plenty of consumer appetite for designer goods, we are going to talk next to maximilian bittner ceo of the luxury resale plat norm vest year collective, on the luxury market. this is bloomberg. ♪

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>> we continue to see and unabated appetite for designer goods this year, that itself has helped make one of the most valuable companies in the world and europe, of course it's founder one of the most richest men. that demand is also fueling a fast-growing secondhand market that has tripled in size from 2020 and late 2022. that according to research from the boston consulting group, one of the biggest luxury resale markets. it joining us now is the ceo, maximilian bittner. thank you for joining. i have got to tell all of our viewers out there, i told you this during the break. i use vestiere all the time, i have been using it a lot lately. how do you see consumer behavior change on your platform with

inflation, the cost of living pension really starting to hit consumers? >> good morning i think the cost of living crisis or the recession these days has in many ways reflected in the microcosm that is vestiaire not just because of inflation prices have increased but we have been able to push their higher prices almost at will. we have seen an increase in supply on the platform over the last 12 months because we have sellers that are cash strapped and selling items on the platform. we have seen a change in the average price points being sold across the platform, so if you look at it being a global platform there is a whole lot of economic drivers that are being spotted across the whole business. >> when you say change in price point, i am assuming they are

going down, what is that change? >> no, the brands are pricing up. chanel bags is a very visible example, if you look at kelly bags, most of these brands have forced up higher prices and consumers have followed those. we also see that consumers are much more price-sensitive than before. if we do some sort of commercial activations on special sales days or vouchers or coupons, we see consumers much more reactive to those activations. we see there is clearly some softness in the way people use their purchasing power but they are still buying, they are still looking for luxury goods so on one side we are benefiting in on the others we are feeling the weaker consumer sentiment. >> what is the most popular thing on your platform now, be it item or brand, what are you seeing demand for?

>> if you look at it by turnover the biggest brands are chanel if you look at it by volume it is louis vuitton and gucci. you have these big brands driving the biggest part of both turnover and gme but we are also seeing the latest trends happening across the platform so let's say one is very hot and we see those bags and searches for anything related to that brand reflecting in the business. >> i also feel like with the popularity of succession in that wonderful quote about the ludicrously capacious bag, the burberry bag, everyone is talking about quiet luxury. are you seeing a of that, does everyone want to buy those sleek bags right now? >> we do see it actually and i have to admit i am guilty of that also. on our app you see notifications

of newer items coming onto the platform and i do follow brands where a jumper from them now costs north of 1000 euros buying a secondhand one at 150 or 200 is a great deal. and we have seen a volume increase for searches of brands like brunello and obviously on the lady side also. >> for anyone listening, december when it rolls around i am very happy to get some secondhand laura piano loafers. what is the most you have sold something for recently, i am curious whether we are still buying not just kelly bags but the hundreds of thousands of euros type kelly bags. >> we have sold 158,000 euro bergen bags last year that was

her all-time record. we sold a very expensive himalayan bag also which was around 130 140,000 euros. it is absolutely mind-boggling, how far we have come as a platform. there is such a high trust in our authentication service that we provide. people are looking for these very unique collection items, almost obsessively. being global and having by far the biggest supply globally, just to put things in perspective we get about 30,000 new in items every day onto the platform so people are still on the prowl for these unique items. >> it is clear that folks are still paying up for items, they are selling more, buying more. does that mean the collective is now profitable? >> not quite. i will be honest i think our business is still investing for the future and in an economics basis we are profitable across

all price points, our business model is very sound and healthy. but we are also still investing into the future, we have a big tech team which is still investing into improving the platform. if you are using it there are many things we can still do better and we are very focused on doing that. we are trying to keep the balance right at the moment, 2023 is not 2021 in our tech space whether it is the funding environment or the focus that investors have and is conscious of this new reality that everyone else's. we want to keep the right balance between investing for the future and focusing on profitability but we have seen a huge improvement on our roadmap to profitability and feel quite confident about the future. >> that is your roadmap for profitability tell me about your roadmap for going public, would you ipo? let's the good thing about the current environment is that i can say like everyone else i have no clue what the future will bring with regards to the

capital markets. i am very relaxed about it. i think the roadmap to the public markets and the roadmap to profitability have to be closely tied because i think we have all learned over the last couple years that this is sometimes the downside of being public that the market can become unforgiving. right now i am happy to be a private company, to work on the things that will drive the fundamentals of our business and when the time is right let's revisit it. but as i don't have the optionality at the moment, i don't have to worry about it and that is quite relaxing. >> we will see what happens first, whether i get my loafers first or you guys go public. it is a race against time, i am afraid that's all the time we have. >> we need you to continue shopping, yes. >> i don't want to be the only one supporting the collective that's not good for my own personal finances. max bittner their ceo of the

collective we have plenty more ahead, this is bloomberg. ♪

>> let's get you set up for the rest of the day, joining us now is bloomberg markets anchor tom mackenzie with a look at what's coming up in the next couple hours. you are never too far from an ai story. >> big focus again today with the restrictions that may be coming through from the u.s. around countries -- companies like nvidia. later we will have someone talking to us about how to invest in these areas, she says evaluations are stretched in these areas but for stock pickers and asset managers there is a real opportunity in her focus is on the equipment maker's rather than the chip designer so we will be talking to eleanor about how she thinks you can position around ai even some valuations look stretched. >> we were just having a conversation with the ceo of

luxury resale and says everyone is still selling and paying up for bergen bags, i know you will be looking at watch sales. >> we love the story. this is the bloomberg sub dial watch index monitoring the 50 most traded on the secondary market luxury markets by value. prices have come off by about the most in two years. you can pick up a rolex daytona for about 25 k less than last year, you saw all of this money in cash is going to u.s. households and all this money and crypto going into luxury watches that it's come off now and you're getting some discounts now on the secondary market in these luxury brands like rolex. we will talk about that story and how the prices will have further downside for some of these luxury timepieces. >> and finally some central coverage? >> yes we have some big names, we will be focusing in the most interesting will be with the central bank governor of south africa. he said in the last few weeks

there are more hikes than are needed because the inflation dynamics in that country but that country is facing and grappling with its own idiosyncratic challenges like rolling blackouts. it is a challenging time and will be interesting to hear from the governor of the central bank of south africa. >> looking forward to all of it, tom will join us later in just a few minutes time with anna edwards and of course mark. we will be sitting down with the ceo allison rose don't miss that conversation at the bloomberg sustainable summit happening at 9:30 a.m. london time. next we count down to the european market open, with markets today. this is bloomberg. ♪

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