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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: dayba q At podcast, available every morning on Apple, Spotify

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Speaker 1: or wherever you listen. It's Friday, the twenty fourth of May.

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Speaker 1: Here in London. I'm Caroline Hedge.

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Speaker 2: And I'm Stephen Carroll. Coming up today. City of London

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Speaker 2: execs tel Bloomberg. They want certainty from the general election result,

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Speaker 2: with many open to a labor government.

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Speaker 1: G seven finance ministers and central bankers meet in Italy.

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Speaker 1: Is their economies take different growth paths.

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Speaker 2: Plus weighing up a starring role in the AI. Boom

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Speaker 2: Alphabet and Meta offer multimillion dollar deals to partner with Hollywood.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 2: Financial industry executives and the City of London say they're

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Speaker 2: looking for clarity from the general election, with many open

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Speaker 2: to a labor government. In past votes, the incumbent Conservative

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Speaker 2: parties argued labor couldn't be trusted with the economy, but

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Speaker 2: a range of business leaders of toe Bloom, the opposition party,

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Speaker 2: has shown it's willing to listen to UKPLC. Lloyd's of

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Speaker 2: London CEO John Neil told Bloomberg Radio earlier this year.

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Speaker 2: Britain needs stability no matter who wins.

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Speaker 3: I think we all need the confidence of a two

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Speaker 3: term government, whatever that government is, because we just need

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Speaker 3: the sense that there is a plan and that plan

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Speaker 3: is going to have to stretch beyond one term a government.

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Speaker 3: So I would say we need change, and I'm not

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Speaker 3: saying that has to be a labor government versus a

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Speaker 3: conservative government. We do need to change. We cannot carry

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Speaker 3: on the way we are.

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Speaker 2: You can listen to the full interview with John Neil

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Speaker 2: online by searching for Daybreak Europe's Bullish Britain podcast. Bloomberg

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Speaker 2: has learned that the Chancellor Jeremy Hunt and his labor

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Speaker 2: counterpart Rachel Reeves may go head to head in a

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Speaker 2: televised debate on the economy ahead of polling day.

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Speaker 1: G seven finance ministers are meeting in Italy today as

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Speaker 1: officials confront the prospect of increasing monetary policy divergence while

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Speaker 1: cooling price pressure and lack luster growth and likely to

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Speaker 1: drive rate cup in the Eurozone and the UK. In

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Speaker 1: the US, a durable economy and sticky inflation are leading

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Speaker 1: to a wait and see approach from the Fed. Italian

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Speaker 1: Minister Jiancarlo Georgetti, who is hosting the G seven meeting,

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Speaker 1: says that growing turmoil around the world is also front

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Speaker 1: of mind for those attending.

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Speaker 4: The Geopolitical tension increases every day, not only in Ukraine,

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Speaker 4: but in severe part of the world. That means that

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Speaker 4: here are G seven countries and Western democracies. That means

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Speaker 4: that we have to decide together, how could share a

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Speaker 4: common value, a common perhaps answer to these challengers.

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Speaker 1: John Carlo Georgetti, speaking there as the G seven, also

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Speaker 1: converges on a US plan to squeeze value out of

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Speaker 1: frozen Russian assets to support Ukraine. The move would secure

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Speaker 1: as much as fifty billion dollars in critical financing for

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Speaker 1: Ukraine and help shield it from political shift on both

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Speaker 1: sides of the Atlantic.

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Speaker 2: Siganty is shutting down and suspending redemptions in an abrupt

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Speaker 2: end for one of ages Asia's largest hedge funds. Sources

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Speaker 2: tell Bloomberg redemptions requests had hit one billion dollars after

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Speaker 2: an insider trading scandal spooked investors. Bloomberg's Manual Baguri says

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Speaker 2: on the unwinding of the firm's five billion assets under

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Speaker 2: management is causing a stir in Asia.

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Speaker 5: I can tell you that the community you know is

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Speaker 5: talking on the top about these topic here in Hong

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Speaker 5: Kong and the impact he may have on other firms

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Speaker 5: as well. It highlights the severe impact in confidence right

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Speaker 5: when these insider trading canosat hit a firm, Lake Siganty

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Speaker 5: definitely has a big impact.

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Speaker 2: Brigori adds that the firm says it could liquidate eighty

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Speaker 2: four percent of its portfolio within a day and ninety

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Speaker 2: seven percent within five days. Bloomberg has learned Saganty's liquid

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Speaker 2: holdings have included e startups Klarna, Ola, Bundle and Enable.

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Speaker 1: Sources Tel Bloomberg, Elon Musk's SpaceX has initiated discussions about

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Speaker 1: selling existing shares at a price that could value the

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Speaker 1: closely held company at roughly two hundred billion dollars. The

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Speaker 1: story from Bloomberg's Charlie Pellett.

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Speaker 6: Sources Tel Bloomberg. SpaceX is discussing a tender offer that

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Speaker 6: may kick off in June. The price for the offer

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Speaker 6: has not been decided, but sources say SpaceX is weighing

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Speaker 6: offering shares at one hundred eight to one hundred ten

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Speaker 6: dollars a piece. A two hundred billion dollar valuation would

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Speaker 6: be a premium to the one hundred eighty billion valuation

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Speaker 6: the company obtained through its most recent tender offer. In

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Speaker 6: New York, Charlie Pellett, Bloomberg, Radio.

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Speaker 2: City Group, Barclay's and HSBC are ramping up demands for

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Speaker 2: staff to return to the office five days a week.

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Speaker 2: The order comes as shifting regulation from the financial industry

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Speaker 2: Regulatory Authority forces World Street firms to reinstate pre pandemic

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Speaker 2: rules for monitoring workplaces. HSBC's us CEO Michael Roberts says

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Speaker 2: he doesn't want to force employees back to working in person.

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Speaker 7: Well, make sure that whoever needs to be a fighter's

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Speaker 7: week will be here frider weeks. But I don't want

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Speaker 7: to decree people coming back. I want them to come

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Speaker 7: back as they want to come back, and they do so,

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Speaker 7: and they're productive, they feel good about it, and that's

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Speaker 7: essentially the environment we have built today.

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Speaker 2: Hspc's Michael Roberts. They're speaking to Bloomberg. While some lenders

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Speaker 2: are blaming new rules for the changes, others, including Barclay's,

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Speaker 2: cite the benefits of office working, such as collaboration and culture.

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Speaker 2: It may spell the end of remote working from any

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Speaker 2: deal makers, but regulators say they're trying to encourage greater flexibility,

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Speaker 2: not less.

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Speaker 1: Alphabet and Meta offering Hollywood studios millions of dollars to

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Speaker 1: partner with them on AI video generation software. Both companies

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Speaker 1: are developing technology that can create realistic scenes from a

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Speaker 1: text prompt. Open having similar conversations with studios last month,

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Speaker 1: the chief operating officer, Bred Brad Lightcap said that open

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Speaker 1: ai will work towards building media partnerships.

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Speaker 8: We have a long way to go, I think, to

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Speaker 8: build those tools still and start to work with the

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Speaker 8: industry to get there, but we are committed to doing

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Speaker 8: that work and that's really where I think the foundation

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Speaker 8: of our partnership efforts come from. And then also being

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Speaker 8: able to just bring what is source of truth information

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Speaker 8: into the chat GPT experience for people.

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Speaker 1: That was open AI's Brad Lightcap speaking there. Hollywood studios

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Speaker 1: are keen to discuss ways to use AI to reduce

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Speaker 1: costs whilst also protecting themselves from having their work stolen. Now,

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Speaker 1: in a moment, we are going to be talking about

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Speaker 1: the G seven gathering in Italy, very beautiful part of Italy.

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Speaker 1: In a moment talking about the most serious issues affecting

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Speaker 1: those countries. Also, we are into electioneering in the election

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Speaker 1: campaign here in the UK, so we'll talk about that too.

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Speaker 1: But first this story caught my eye. So New Zealand.

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Speaker 2: This feels a bit like you've been searching for our

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Speaker 2: property online Friday.

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Speaker 1: Why not look. I know that New Zealand is a

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Speaker 1: very long way from the UK, but it has been

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Speaker 1: enormously popular with the super rich, especially Americans, and especially

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Speaker 1: doomsday preppers. Not so many of those perhaps here in

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Speaker 1: the UK, but certainly plenty of them in the US,

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Speaker 1: and a lot have been looking to New Zealand as

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Speaker 1: one of these wonderful places where you might be able

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Speaker 1: to have that kind of splended isolation.

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Speaker 2: Really is the thing that's being offered. But of course

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Speaker 2: New Zealand change the rules in twenty eighteen which doesn't

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Speaker 2: allow people who aren't citizens or tax residents of the

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Speaker 2: country to buy property there. There's a debate under way

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Speaker 2: though in the current government, because that under the previous

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Speaker 2: government these rules are put in place, but whether or

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Speaker 2: not to change those rules, and our colleague Ainsy Thompson

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Speaker 2: has been writing about it quite quite honestly fantastic house.

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Speaker 2: That's great photos as well, worth looking. You know, one

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Speaker 2: of these beautiful isolated ranch type properties that you could buy.

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Speaker 2: But it's actually this is having a huge effect on

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Speaker 2: the market that these buyers are bars from getting into

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Speaker 2: the market if you're, as I say, not a setisen our,

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Speaker 2: a tax resident. So it'd be very interesting to see

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Speaker 2: if the current government would consider in the budget. We

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Speaker 2: weren't able to get an answer out of the politicians

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Speaker 2: in New Zealand that we spoke to. They pointed to

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Speaker 2: the next budget as being a potential source of somewhere

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Speaker 2: that an announcement might be made, but an interesting one

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Speaker 2: to watch and perhaps if you are a super rich

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Speaker 2: person looking for an isolated rush, maybe that's right.

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Speaker 1: Yeah, well, I mean it's close to vineyards and golfing

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Speaker 1: and skiing. I mean this Friday it sounded fantastic. Yes.

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Speaker 1: Next week, though, you see, LINT will have its budget

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Speaker 1: and so perhaps we will get an answer on that point.

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Speaker 2: Let's turn back to matters more concretely here in the UK,

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Speaker 2: latest consumer confidence biggers improving for a second consecutive month.

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Speaker 2: Welcome news, no doubt for the Prime minister who called

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Speaker 2: that general election this week. For the fourth of July,

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Speaker 2: a campaign expected to be fought in large part on

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Speaker 2: living standards and the economy. Our UK correspondent Lizzie Burden

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Speaker 2: is with us for more and of course across all

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Speaker 2: of the developments in the election campaign. Lizzie, we've been

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Speaker 2: reporting today about how the has been thinking about this

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Speaker 2: election campaign. What have we been hearing about the mood

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Speaker 2: among executives and as what sort of impact might that

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Speaker 2: have on the campaign.

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Speaker 9: Good vibes as they have been really for the past

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Speaker 9: couple of years building up to this election. Caroline and

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Speaker 9: I have been to party conference and we've seen firsthand

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Speaker 9: the enthusiasm among business leaders for a change of government.

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Speaker 9: You have to under whether that's actually because the polls

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Speaker 9: suggest Labor are going to be the next government and

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Speaker 9: so they want to cozy up and have influence. But

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Speaker 9: really we're looking forward to these manifestos to see what

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Speaker 9: the detail will be because so far it's been rolling

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Speaker 9: out the red carpet for business, promises of stability and growth,

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Speaker 9: respect for Rachel Reeves and a Boek rank of England credentials.

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Speaker 9: Can they translate that into serious policy when, as you say,

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Speaker 9: both parties are extremely fiscally constrained. One of the key

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Speaker 9: measures of success on this front post election will be

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Speaker 9: can they bring listings back to London. If you look

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Speaker 9: at the stats at the moment, just two percent of

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Speaker 9: the twelve billion dollars raised for IPOs in Europe this

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Speaker 9: year went to the London Stock Exchange. Yes, we've had

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Speaker 9: some big names recently announcing plans to list in London,

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Speaker 9: like Shean and Raspberry Pie, but the situation since Brexit

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Speaker 9: has been pretty diret more and more companies listing elsewhere.

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Speaker 9: So you can expect to hear throughout the next six weeks.

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Speaker 9: Both parties planned for how they're going to encourage more

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Speaker 9: companies to bring their business and keep their business in the.

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Speaker 1: UK, although wisely surely the Labor Party have been reluctant

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Speaker 1: and to make big promises on that front. It is

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Speaker 1: a very difficult thing for a government to turn around,

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Speaker 1: you know, private business listing in the UK. But look,

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Speaker 1: the election campaign is fully underway.

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Speaker 9: What comes next, Well, we're going to see Parliament in

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Speaker 9: place today the Commons and the Lords, but then formally

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Speaker 9: dissolved on Thursday. So until then very little legislation is

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Speaker 9: likely to be passed, except in a thing that passes

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Speaker 9: by consensus, then you have every common seat vacant, so

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Speaker 9: there'll be no more MPs, just ministers. They can make

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Speaker 9: decisions in the national interest, but they have to do

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Speaker 9: it in consultation with Kirs Starmer. Then you've got to

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Speaker 9: have candidates delivering their nomination papers by June the seventh,

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Speaker 9: and that might be quite a scramble because of course

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Speaker 9: this is a snap election. And then most excitingly for us,

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Speaker 9: we'll get the manifest Stowe Pledges leaking out and then

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Speaker 9: if you look at history, it's about eighteen to twenty

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Speaker 9: nine days before the election that they're usually fully published.

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Speaker 9: But on the detail of the economics, I'm really looking

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Speaker 9: forward to hopefully getting a television debate between the Chancellor

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Speaker 9: Jeremy Hunt and his Labor counterpart Rachel Reeves.

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Speaker 2: Okay, and give us a little snapshot as because of

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Speaker 2: what we're expecting from the campaigning today.

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Speaker 9: Well, the opposition Labor leader Kirs Starmer's heading up to Scotland,

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Speaker 9: as we've been covering on the Bloomberg UKPE Politics podcast,

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Speaker 9: an absolutely key battleground for Labour, really trying to capitalize

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Speaker 9: on the disarray in the Scottish Nationalist Party, National Party.

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Speaker 9: But remember Labor used to dominate north of the border,

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Speaker 9: so it's not an impossibility that they could do that again.

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Speaker 9: In twenty ten they had forty one of the fifty

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Speaker 9: nine seats in Westminster in Scotland, but that kind of

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Speaker 9: collapsed with support for independence. Can they get it back now?

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Speaker 9: So kirst Arma today is going to be focusing on

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Speaker 9: energy policy and their proposal within Labor for a publicly

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Speaker 9: owned clean power company called Great British Energy. Can he

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Speaker 9: inspire votes north of the border?

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Speaker 1: Okay? Really interesting? Thank you so much to you Lizzie

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Speaker 1: Burden for being with us or UK correspondent.

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Speaker 2: Turning next to the finance ministers and central bank governors

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Speaker 2: from the Group of Seven Nations who are gathering in

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Speaker 2: Straisa and Italy. US Secretary of the Treasury Janet Yellen

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Speaker 2: will be there with as more aid for Ukraine will

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Speaker 2: be one key issue on the agenda. This meeting happening

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Speaker 2: before the G seven leaders summit in June, which Ukraine's

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Speaker 2: President Vadi mer Zelinski is expected to attend. Let's go

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Speaker 2: live to Stressa and Italy and join our correspondent to

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Speaker 2: Oliver Crook, who's there Oliver, good morning. Ukraine's finance minister

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Speaker 2: is going to be at this gathering. At frozen Russian

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Speaker 2: assets and their proceeds a key issue up for discussion.

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Speaker 10: Yeah, I think Stephen, this is going to be kind

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Speaker 10: of the main project here for the finance ministers is

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Speaker 10: to try to get an architecture that everybody is happy

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Speaker 10: with that then the leaders can sign off on on

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Speaker 10: three weeks that will somehow monetize the Russian assets that

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Speaker 10: are being held by central banks across the world in

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Speaker 10: a meaningful way, not just in these sort of the

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Speaker 10: profits that are generated every year to the tune of

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Speaker 10: about three billion years. What they're trying to do is

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Speaker 10: write a big, big check about fifty billion dollars and

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Speaker 10: basically amortize that and kind of link that to the

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Speaker 10: future earnings of those Russian assets. However, it is a

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Speaker 10: little bit more complicated. As ever with these things, the

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Speaker 10: devil is in the details. There are a lot of

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Speaker 10: questions about let's say the war ends in five years,

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Speaker 10: you've committed fifteen years of future profits. Who then is

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Speaker 10: going to pave to fill that gap? And those are

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Speaker 10: the kinds of questions that the finance ministers need to

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Speaker 10: answer here, and really there's a couple there's a couple

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Speaker 10: other things. Why this is extremely important for the G seven.

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Speaker 10: They need to continue to demonstrate unity. Jennet Yellen said

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Speaker 10: yesterday Putin is counting on everybody sort of fatigue on

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Speaker 10: this and not to stand by Ukraine. But also, let's

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Speaker 10: not forget we're a few months away from a US

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Speaker 10: presidential election. For the Europeans and for the G seven

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Speaker 10: that are currently empowered, this is a way of trump

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Speaker 10: proofing financing for the Ukraine defense into the future.

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Speaker 1: Okay, we'll speaking of Janet Yellen. She will be laying

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Speaker 1: out her priorities for the G seven later. How much

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Speaker 1: she thinks she's going to also say about the trade

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Speaker 1: threat from China.

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Speaker 10: Yeah, so what's really interesting about this, Caroline, is that

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Speaker 10: it's not really in the communicating terms of the items

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Speaker 10: that are technically on the agenda, China is not mentioned

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Speaker 10: by name. However, Jenny Yellen has made it extremely clear

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Speaker 10: that this is one of her priorities, and again it

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Speaker 10: is partially to try to demonstrate unity among the G

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Speaker 10: seven In terms of the language about China. This conversation

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Speaker 10: about overcapacity, whether the Chinese are over manufacturing and dumping

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Speaker 10: it onto global economies is something that Jennie Yellen wants

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Speaker 10: to really get buy in from the Europeans and the

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Speaker 10: G seven and really the elephant in the room, I

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Speaker 10: think for these ministers and for essential bankers alone, is

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Speaker 10: are we actually kind of slowly walking towards a possible

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Speaker 10: trade war?

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Speaker 9: Right?

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Speaker 10: We've got the Biden tariffs coming in. We expect the

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Speaker 10: ev tariffs from Europe to kick in in a couple

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Speaker 10: of weeks time. The Chinese have threatened to retaliate. Where

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Speaker 10: does that leave trade going forward at a time when

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Speaker 10: the sort of global economy and growth is in question?

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Speaker 10: And what critically will it mean for inflation. So that's

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Speaker 10: what we're going to ask some of the central bankers

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Speaker 10: and finance ministers as we speak to them over the

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Speaker 10: next couple of days.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Street and beyond.

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Speaker 1: I'm Caroline Hepka and.

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Speaker 2: I'm Stephen Carol. Join us again tomorrow morning for all

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