00:002025 was a year of a lot of, in a strange way,
00:04volatility. I mean, the volatility measures that you see overall were down and
00:09relative.
00:09Relatively moderate, but within that, there was a fair amount of activity and
00:13obviously making markets for.
00:14Clients being willing to step in to risk positions, provide.
00:19Providing good prices in moving markets is what we do, and the team
00:23under Ramniac did a fact.
00:24Fabulous job, really strong start to the quarter.
00:26So it's really just, it started where it left off.
00:29And as you say, the events, obviously the market has reacted with, I'd say,
00:34sans-froid, if you like, to the geopolitical events that are going on.
00:39But nevertheless, in sort of pockets of the market, there are, of course,
00:43movements.
00:44And those movements create activity and some degree of volatility that we aim.
00:49to serve our clients.
00:50Well, we had one of our occasional visits from the prosecutors yesterday.
00:54And as you may have seen in some of the reporting yesterday, the investigation
00:58relates to...
00:59Transactions from the years 2013 to 2018, naturally, we're...
01:04We're cooperating as we do in each case with the prosecutor and...
01:09in their search, and we will continue to do that.
01:13You know, we can't really say much in this early...
01:14early stage of the investigation, but it builds on earlier...
01:19investigations on similar matters.
01:21Well, look, there's remarkable strength across...
01:24risk assets around the world.
01:26As you say, some of the paradigms that we're used to...
01:29you know, strong dollar and risk-off situations, allocations of...
01:34capital around the world, including to the United States of...
01:39significant amounts, and then growth paradigms that...
01:44that we got used to.
01:45Those things are all changing in a world...
01:49of uncertainties around geopolitical alignments, the impact of AI...
01:54still a high degree of liquidity.
01:56So, investors, I think, are reacting to some of those paradigms.
01:59For us, obviously, we're positioned, I think, to help in...
02:04in reallocations to Europe as they take place.
02:07We're very focused on acting...
02:09as a gateway to opportunities to invest in Europe.
02:12And, obviously, helping Europe to...
02:14finance all of the investments that are needed here, whether that's...
02:19again, AI, defense, infrastructure, digital transition, also the sustainable...
02:24these are all things that are still going on...
02:26and where Europe will require immense capital investment.
02:29I think probably saying sell America slightly overstates what's going on,
02:32but there's been, you know, different kind of...
02:34characterizations of trying to describe what's happening.
02:36There's one that's sort of quietly quitting America, i.e.
02:39you know, diversifying away.
02:40Are you seeing that represented in Europe?
02:41Are you seeing clients moving more?
02:43Or is that...
02:44I...
02:44I'm not sure I'd use those words, but I mean, more thought given to,
02:47for example, if you're a non-dollar...
02:49investor, do you hedge your dollar positions?
02:51You're going to be invested in the United States for sure, but do you need to...
02:54hedge the currency?
02:55That is a question.
02:57Seeking growth outside the United States...
02:59there has sometimes been valuation differentials for companies in similar...
03:04circumstances between the United States and outside.
03:06So there's...
03:07put it this way, looking for...
03:09value, but it doesn't mean instead of the United States as an investment destination.
03:14And then also as we sort of think about the corporate world getting further and further
03:17enmeshed sometimes...
03:19not sort of by their own desire with politics.
03:21We saw last week a note that came out of Deutsche Bank.
03:24that obviously did the rounds around Davos, about Greenland and the risks associated,
03:28and the idea that basically...
03:29Europe is a large creditor to the United States.
03:31And then that could at some point be used as a point of leverage, which is just...
03:34the fact that one of your analysts pointed out that prompted a call from the...
03:39CEO of Deutsche Bank to the US Treasury Secretary to kind of distance itself from it in a certain
03:44way.
03:44I'd like to just get your perspective on that and whether we're living in a time now where
03:48independent...
03:49of research is coming into question or is that something that in your mind is rock solid?
03:53No.
03:54I mean...
03:54It's rock solid.
03:55And you know, the independence of research is absolutely sacrosanct.
03:58I think our...
03:59our research is just outstanding.
04:01And David Porcos-Landau runs a...
04:04a great team of independently minded analysts.
04:09who I think come up with great sort of ideas and analysis.
04:14for investors.
04:15And it needs to be independent.
04:16Sometimes it can be awkward for the...
04:19the corporations, the banks that sponsor the research.
04:22But that independence is absolutely...
04:24as it should be.
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