1
00:00:02,440 --> 00:00:11,039
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

2
00:00:11,080 --> 00:00:13,440
Speaker 1: Da Big You're At podcast, available every morning on Apple,

3
00:00:13,520 --> 00:00:16,279
Speaker 1: Spotify or wherever you listen. It's Thursday, the first of

4
00:00:16,280 --> 00:00:17,240
Speaker 1: August here in London.

5
00:00:17,280 --> 00:00:20,280
Speaker 2: I'm Caroline Hepka and I'm Stephen Carroll. Coming up today

6
00:00:20,360 --> 00:00:22,599
Speaker 2: the Federal Reserves Jr Own pals as a rate reduction

7
00:00:22,680 --> 00:00:25,960
Speaker 2: could come as soon as September, as the BOE gears

8
00:00:26,040 --> 00:00:28,720
Speaker 2: up for a possible cut. At today's meeting.

9
00:00:28,760 --> 00:00:31,600
Speaker 1: The Prime Minister will meet with police leaders as more

10
00:00:31,640 --> 00:00:34,960
Speaker 1: than one hundred people are arrested during protests in London.

11
00:00:35,200 --> 00:00:39,040
Speaker 2: Plus, Donald Trump questions Kamala Harris's racial identity at a

12
00:00:39,120 --> 00:00:42,920
Speaker 2: round table with black journalists, as polling suggests the race

13
00:00:43,000 --> 00:00:43,880
Speaker 2: is now a dead heat.

14
00:00:44,200 --> 00:00:46,239
Speaker 1: Let's start with a roundup of our top stories.

15
00:00:46,440 --> 00:00:48,879
Speaker 2: Federal Reserve charge your Own Pal has signaled to the

16
00:00:48,960 --> 00:00:51,720
Speaker 2: US Central Bank is on course to cut interest rates

17
00:00:51,760 --> 00:00:56,200
Speaker 2: next month on less progress on cooling inflation stalls. Speaking

18
00:00:56,240 --> 00:00:59,680
Speaker 2: after the FOMC again held its key rate unchanged at

19
00:00:59,760 --> 00:01:02,320
Speaker 2: two two decade high of five and a quarter to

20
00:01:02,360 --> 00:01:06,039
Speaker 2: five and a half percent, Powell offered his clearest hint

21
00:01:06,280 --> 00:01:07,480
Speaker 2: about a rate cut.

22
00:01:08,160 --> 00:01:11,120
Speaker 3: The question will be whether the totality of the data

23
00:01:11,319 --> 00:01:14,560
Speaker 3: the evolving outlook in the balance of risks or consistent

24
00:01:14,600 --> 00:01:17,919
Speaker 3: with rising confidence on inflation and maintaining a solid labor market.

25
00:01:18,120 --> 00:01:20,480
Speaker 3: If that test is met, a reduction in our policy

26
00:01:20,560 --> 00:01:22,720
Speaker 3: rate could be on the table as soon as the

27
00:01:22,760 --> 00:01:24,040
Speaker 3: next meeting in September.

28
00:01:25,080 --> 00:01:28,360
Speaker 2: Markets took the news in their stride, with treasuries rallying

29
00:01:28,400 --> 00:01:31,840
Speaker 2: after Powell's press conference. Interest rates swaps show traders have

30
00:01:31,920 --> 00:01:35,240
Speaker 2: fully priced in a quarter point cut in September and

31
00:01:35,280 --> 00:01:38,560
Speaker 2: a total of almost seventy basis points worth of reductions

32
00:01:38,600 --> 00:01:39,160
Speaker 2: for the year.

33
00:01:39,840 --> 00:01:42,440
Speaker 1: Now to the Bank of England, where it's a close school,

34
00:01:42,520 --> 00:01:45,000
Speaker 1: but there could be the first rate cut since the

35
00:01:45,040 --> 00:01:48,720
Speaker 1: start of the pandemic today. Investors last night placed a

36
00:01:48,800 --> 00:01:52,240
Speaker 1: fifty seven percent chance on a quarter point cut, taking

37
00:01:52,240 --> 00:01:54,600
Speaker 1: the key lending rate from five and a quarter to

38
00:01:54,840 --> 00:01:57,840
Speaker 1: five percent. Barring costs have been at a sixteen year

39
00:01:57,920 --> 00:02:00,720
Speaker 1: high for almost a year. Inflation may pressures in the

40
00:02:00,840 --> 00:02:04,600
Speaker 1: UK are receding, and the Bank has signaled since February

41
00:02:04,640 --> 00:02:07,280
Speaker 1: that it is weighing when to cut. The decision will

42
00:02:07,280 --> 00:02:09,800
Speaker 1: be announced at twelve noon with Governor Andrew Bailey's press

43
00:02:09,840 --> 00:02:12,839
Speaker 1: conference at twelve thirty pm London time, and we will

44
00:02:12,880 --> 00:02:15,200
Speaker 1: have live coverage here on Bloomberg Radio.

45
00:02:15,560 --> 00:02:18,360
Speaker 2: That's some earnings results out this morning Associated General the

46
00:02:18,360 --> 00:02:21,040
Speaker 2: French bank reporting net income of one point one to

47
00:02:21,120 --> 00:02:23,600
Speaker 2: one billion euros to the second quarter, that beats the

48
00:02:23,800 --> 00:02:27,040
Speaker 2: beat the average analyst estimate. Another French bank, Credit Agricult,

49
00:02:27,120 --> 00:02:30,079
Speaker 2: also beating estimates with its second quarter results with net

50
00:02:30,120 --> 00:02:33,639
Speaker 2: income of one point eight three billion euros. IG the

51
00:02:33,760 --> 00:02:36,640
Speaker 2: Dutch lender, also beating on net income in the second

52
00:02:36,680 --> 00:02:40,320
Speaker 2: quarter and increasing its total income outlook for twenty twenty

53
00:02:40,360 --> 00:02:43,519
Speaker 2: four to over twenty two billion euros.

54
00:02:44,240 --> 00:02:49,480
Speaker 1: Now, the US is considering placing unilateral restrictions on China's

55
00:02:49,520 --> 00:02:54,079
Speaker 1: access to AI memory chips and equipment capable of making semiconductors.

56
00:02:54,560 --> 00:02:56,680
Speaker 1: The move may come as soon as next month and

57
00:02:56,720 --> 00:03:00,760
Speaker 1: would further escalate tech rivalry between the world's biggest economies,

58
00:03:01,000 --> 00:03:03,240
Speaker 1: according to people familiar with the matter, The new rules

59
00:03:03,240 --> 00:03:07,079
Speaker 1: are designed to stop leading chip makers sk Heinix and

60
00:03:07,160 --> 00:03:11,880
Speaker 1: Samsung from supplying high bandwidth memory chips to Chinese firms.

61
00:03:12,320 --> 00:03:16,520
Speaker 1: President Biden's administration is working on several restrictions aimed at

62
00:03:16,600 --> 00:03:21,240
Speaker 1: keeping vital technology from Chinese manufacturers, but Bloomberg understands that

63
00:03:21,360 --> 00:03:23,520
Speaker 1: no final decision has been made.

64
00:03:24,120 --> 00:03:27,280
Speaker 2: Meta reported better than expected sales for the second quarter,

65
00:03:27,400 --> 00:03:30,960
Speaker 2: suggesting that the company's AI investments could be paying off.

66
00:03:31,280 --> 00:03:34,520
Speaker 2: Shares of the social media company rose in late trading yesterday.

67
00:03:34,720 --> 00:03:39,400
Speaker 2: CEO Mark Zuckerberg says he believes artificial intelligence will be transformative.

68
00:03:39,760 --> 00:03:42,760
Speaker 4: They're all the jokes about how all the tech CEOs

69
00:03:42,760 --> 00:03:44,640
Speaker 4: get on these earnings calls and just talk about AI

70
00:03:44,720 --> 00:03:47,040
Speaker 4: the whole time. It's because it's actually super exciting and

71
00:03:47,040 --> 00:03:49,760
Speaker 4: it's going to change all these different things over multiple

72
00:03:49,760 --> 00:03:50,400
Speaker 4: time horizons.

73
00:03:51,200 --> 00:03:54,720
Speaker 2: That's metas Mark Zuckerberg. According to Bloomberg Data, the Facebook

74
00:03:54,760 --> 00:03:58,200
Speaker 2: and into Instagram parent company reported sales of just over

75
00:03:58,280 --> 00:04:01,960
Speaker 2: thirty nine billion dollars for the second compared with analyst

76
00:04:02,160 --> 00:04:05,880
Speaker 2: estimates of thirty eight point three billion dollars. Meta had

77
00:04:06,040 --> 00:04:09,640
Speaker 2: three point two seven billion users across all of its

78
00:04:09,680 --> 00:04:12,280
Speaker 2: apps as of the end of June. That's an increase

79
00:04:12,280 --> 00:04:14,280
Speaker 2: of seven percent from last year.

80
00:04:15,160 --> 00:04:18,000
Speaker 1: In the UK, Prime Minister Kiss Starmer will meet senior

81
00:04:18,040 --> 00:04:21,440
Speaker 1: police leaders to give them his full backing after several

82
00:04:21,560 --> 00:04:25,200
Speaker 1: violent protests. More than one hundred people were arrested in

83
00:04:25,279 --> 00:04:29,159
Speaker 1: central London last night in a demonstration organized by far

84
00:04:29,279 --> 00:04:32,560
Speaker 1: right groups. It follows on rest in Southport in the

85
00:04:32,600 --> 00:04:36,039
Speaker 1: wake of a stabbing attack that killed three girls, where

86
00:04:36,080 --> 00:04:39,480
Speaker 1: a crowd of several hundred people held bricks and bottles

87
00:04:39,520 --> 00:04:41,640
Speaker 1: at riot police near a mosque.

88
00:04:41,880 --> 00:04:44,720
Speaker 2: British Police meanwhile so they've charged a seventeen year old

89
00:04:44,760 --> 00:04:47,320
Speaker 2: with the murders of three girls who were stabbed to

90
00:04:47,360 --> 00:04:50,960
Speaker 2: death in that attack in Southport. The children were attacked

91
00:04:51,040 --> 00:04:54,880
Speaker 2: during a Taylor Swift themed holiday workshop on Monday morning.

92
00:04:55,240 --> 00:05:00,520
Speaker 2: Merseyside Chief Merseyside Chief Constable Serena Kennedy explains the other charges.

93
00:05:00,560 --> 00:05:02,560
Speaker 2: The teenager faces.

94
00:05:02,320 --> 00:05:05,400
Speaker 3: Ten counts of attempted murder and possession of a bladed

95
00:05:05,480 --> 00:05:10,520
Speaker 3: article following the tragic incident in Southport. The seventeen year

96
00:05:10,560 --> 00:05:13,120
Speaker 3: old cannot be named for legal reasons as he is

97
00:05:13,200 --> 00:05:13,880
Speaker 3: under eighteen.

98
00:05:14,960 --> 00:05:18,520
Speaker 2: Merseyside Chief Constable Serena Kennedy speaking there. Five children remain

99
00:05:18,560 --> 00:05:21,159
Speaker 2: in critical condition, along with two adults who tried to

100
00:05:21,200 --> 00:05:23,719
Speaker 2: help them. The seventeen year old will appear in court

101
00:05:23,880 --> 00:05:24,600
Speaker 2: later today.

102
00:05:25,760 --> 00:05:29,640
Speaker 1: Now to the US Republican nominee Donald Trump has questioned

103
00:05:29,760 --> 00:05:34,680
Speaker 1: rival Kamala Harris's black identity during a combative roundtable event

104
00:05:35,000 --> 00:05:38,800
Speaker 1: with black journalists. The former president responded to a question

105
00:05:38,920 --> 00:05:42,800
Speaker 1: about comments from his party casting Harris as a quote

106
00:05:42,960 --> 00:05:44,160
Speaker 1: diversity higher.

107
00:05:44,920 --> 00:05:48,800
Speaker 3: She was always of Indian heritage, and she was only

108
00:05:48,920 --> 00:05:52,400
Speaker 3: promoting Indian heritage. I didn't know she was black until

109
00:05:52,440 --> 00:05:55,000
Speaker 3: a number of years ago when she happened to turn black,

110
00:05:55,040 --> 00:05:56,640
Speaker 3: And now she wants to be known as black.

111
00:05:57,120 --> 00:05:59,400
Speaker 5: So I don't know is she Indian or is she black?

112
00:05:59,440 --> 00:06:04,919
Speaker 1: She has always original, w Donald Trump, speaking at the

113
00:06:05,000 --> 00:06:09,680
Speaker 1: National Association of Black Journalists convention in Chicago. His comments

114
00:06:09,760 --> 00:06:13,479
Speaker 1: drew boos and gasps from the audience. In response, the

115
00:06:13,560 --> 00:06:19,480
Speaker 1: Vice President condemned his comments as quote divisiveness and disrespect. Meanwhile,

116
00:06:19,480 --> 00:06:25,040
Speaker 1: Bloomberg understands Kamala Harris's representatives met with potential vice president pick,

117
00:06:25,400 --> 00:06:29,640
Speaker 1: that is, Pennsylvania Governor Josh Shapiro yesterday as part of

118
00:06:29,680 --> 00:06:33,839
Speaker 1: a quote selection process. That is, as some labor groups

119
00:06:33,920 --> 00:06:40,240
Speaker 1: express worries about Arizona leader Mark Kelly joining the Democratic ticket. Now,

120
00:06:40,320 --> 00:06:42,760
Speaker 1: lot's discuss this morning. Let's get more on the federal

121
00:06:42,760 --> 00:06:45,719
Speaker 1: reserve decision. Now these signals from your own power that

122
00:06:45,760 --> 00:06:49,400
Speaker 1: officials are on course to cut rates at their next meeting.

123
00:06:49,520 --> 00:06:53,680
Speaker 1: In September. Garfield Reynolds leads Bloomberg's Markets Live team in

124
00:06:53,760 --> 00:06:56,599
Speaker 1: Asia and he joins us this morning. Garfield High, thanks

125
00:06:56,640 --> 00:07:00,200
Speaker 1: for your time. So is the September cut a certainty? Now?

126
00:07:00,279 --> 00:07:00,799
Speaker 1: Do you think?

127
00:07:01,920 --> 00:07:05,279
Speaker 6: Well? Depends on who you ask. From the point of

128
00:07:05,360 --> 00:07:10,400
Speaker 6: what the Federal Reserve statement said and what j. Powell said,

129
00:07:11,040 --> 00:07:15,440
Speaker 6: it's possible, but they still need to see more data

130
00:07:15,560 --> 00:07:18,600
Speaker 6: to back that up, especially we do get your two

131
00:07:18,680 --> 00:07:23,040
Speaker 6: CPI reports, two payrolls reports between now and that September decision.

132
00:07:23,640 --> 00:07:26,400
Speaker 6: If you look at the markets, they've fully priced in

133
00:07:26,440 --> 00:07:29,280
Speaker 6: a September cut. They were already fully pricing one in

134
00:07:29,880 --> 00:07:35,600
Speaker 6: before the FOMC. So they've taken this as confirmation that yeah, yeah,

135
00:07:35,640 --> 00:07:38,800
Speaker 6: whatever the Fed says they're going to cut, because inflation

136
00:07:39,560 --> 00:07:42,880
Speaker 6: has slowed significantly, and because the jobs market is showing

137
00:07:42,920 --> 00:07:47,720
Speaker 6: signs of weakness, which the Fed, to be fair, is acknowledging,

138
00:07:47,920 --> 00:07:52,560
Speaker 6: and so that balance of risks has markets betting that

139
00:07:53,160 --> 00:07:55,679
Speaker 6: the Fed's going to cut in September and then most

140
00:07:55,760 --> 00:07:58,360
Speaker 6: likely cut in November and cut in December.

141
00:08:00,040 --> 00:08:02,400
Speaker 2: That's what we heard from Jerome Pound the Fed. Of course,

142
00:08:02,400 --> 00:08:05,920
Speaker 2: the market reaction fairly muted, though we are seeing some

143
00:08:06,000 --> 00:08:09,640
Speaker 2: interesting currency moves today in Asia, further strengthening of the

144
00:08:09,720 --> 00:08:12,840
Speaker 2: yen after yesterday's Bank of Japan decision. It's just under

145
00:08:12,880 --> 00:08:16,040
Speaker 2: the one fifty handle against the dollar. Now some traders

146
00:08:16,040 --> 00:08:18,560
Speaker 2: are thinking that maybe one forty could be in sight

147
00:08:18,600 --> 00:08:19,280
Speaker 2: against the dollar.

148
00:08:20,440 --> 00:08:24,680
Speaker 6: Well, we do love our round numbers, but you know,

149
00:08:25,240 --> 00:08:26,760
Speaker 6: it does make sense when you think about it, that

150
00:08:26,840 --> 00:08:31,600
Speaker 6: the yen you've topped out around one hundred and sixty,

151
00:08:31,760 --> 00:08:39,360
Speaker 6: which was also aligned with some very very major long times,

152
00:08:39,400 --> 00:08:42,920
Speaker 6: instead of in that week. So now it's come barreling

153
00:08:43,040 --> 00:08:47,080
Speaker 6: through one hundred and fifty. A move back down towards

154
00:08:47,120 --> 00:08:50,160
Speaker 6: one hundred and forty would start to bring it back

155
00:08:50,160 --> 00:08:52,400
Speaker 6: into line with you know what some people are saying

156
00:08:52,480 --> 00:08:56,040
Speaker 6: of the long term fundamentals, especially in an environment where

157
00:08:56,520 --> 00:09:00,320
Speaker 6: you do have expectations that the FED will cut several times,

158
00:09:00,440 --> 00:09:04,360
Speaker 6: and BOJ Governor Huaida made it clear that the Bank

159
00:09:04,400 --> 00:09:07,760
Speaker 6: of Japan is likely to raise rates several times. So

160
00:09:07,800 --> 00:09:09,720
Speaker 6: you're going to get a narrowing of what is still

161
00:09:09,720 --> 00:09:14,120
Speaker 6: a very wide divergence between US rates and Japanese rates

162
00:09:14,400 --> 00:09:18,440
Speaker 6: that should fuel yen gains. And the feeling is that

163
00:09:18,480 --> 00:09:23,800
Speaker 6: the momentum would start to wane for those for yen strength.

164
00:09:24,040 --> 00:09:26,360
Speaker 6: When you get down to route about you one hundred

165
00:09:26,360 --> 00:09:28,120
Speaker 6: and forty or one hundred and thirty five or so,

166
00:09:29,200 --> 00:09:31,400
Speaker 6: that's the sort of level that people think would make sense,

167
00:09:31,400 --> 00:09:35,040
Speaker 6: which based on recent history, would still be quite weak.

168
00:09:35,200 --> 00:09:39,360
Speaker 6: It's just there's a lot of concern that the yen

169
00:09:39,559 --> 00:09:45,439
Speaker 6: is still two weak considering those fundamentals and some other fundamentals.

170
00:09:46,200 --> 00:09:48,840
Speaker 1: Okay, so that on the yen, huge moves and obviously

171
00:09:48,880 --> 00:09:52,160
Speaker 1: big reaction also in Japanese stocks this morning.

172
00:09:52,440 --> 00:09:52,760
Speaker 6: I mean.

173
00:09:52,840 --> 00:09:56,640
Speaker 1: Our third major point though, of course, is another central

174
00:09:56,679 --> 00:10:00,520
Speaker 1: bank decision from the Bank of England. Markets leaning towards

175
00:10:00,600 --> 00:10:04,880
Speaker 1: a cut, but it's probably expected to be divided vote

176
00:10:05,120 --> 00:10:07,280
Speaker 1: in terms of the MPC. What do you think is

177
00:10:07,480 --> 00:10:10,319
Speaker 1: the likelihood that we get twenty five basis points today?

178
00:10:11,679 --> 00:10:14,880
Speaker 6: Well, in many ways it's extremely hard to tell precisely,

179
00:10:14,920 --> 00:10:18,720
Speaker 6: because we haven't really heard, certainly from the Bank of England,

180
00:10:19,040 --> 00:10:21,120
Speaker 6: the head of the Bank of England since before the

181
00:10:21,160 --> 00:10:24,320
Speaker 6: election was called, because he didn't want to go having

182
00:10:24,360 --> 00:10:28,240
Speaker 6: an influence on the political scene. So that makes it

183
00:10:28,280 --> 00:10:32,040
Speaker 6: particularly hard to tell. There are arguments on both sides

184
00:10:32,240 --> 00:10:35,719
Speaker 6: leaning towards you would think a cut, especially after the

185
00:10:35,720 --> 00:10:41,560
Speaker 6: FED delivered ultimately a dubvish outlook, so a cut would

186
00:10:41,600 --> 00:10:44,040
Speaker 6: seem likely in a lot of ways. What's going to

187
00:10:44,080 --> 00:10:46,800
Speaker 6: matter most for markets is whether they cut or not,

188
00:10:47,400 --> 00:10:53,440
Speaker 6: what they're indicating about how rapidly or slowly they might

189
00:10:53,600 --> 00:10:58,240
Speaker 6: move going forward. The pound has been one of the

190
00:10:58,280 --> 00:11:01,640
Speaker 6: best performing currencies this year, and there are a lot

191
00:11:01,840 --> 00:11:06,400
Speaker 6: of speculators bending on further gains, so there's perhaps some

192
00:11:06,480 --> 00:11:11,720
Speaker 6: vulnerability for a reversal if the isn't a little bit

193
00:11:11,760 --> 00:11:16,440
Speaker 6: too dubvish. Because the thing is, you know, that pound

194
00:11:16,520 --> 00:11:19,440
Speaker 6: move those pound bits have been driven by the perception

195
00:11:19,520 --> 00:11:22,559
Speaker 6: that yes, the UK is going to see lower rates,

196
00:11:22,600 --> 00:11:24,719
Speaker 6: but they're not going to come down as fast as

197
00:11:24,760 --> 00:11:28,400
Speaker 6: the FED. So if they do anything that indicates they

198
00:11:28,480 --> 00:11:31,480
Speaker 6: might come down as fast as the Fed, that could

199
00:11:31,520 --> 00:11:35,400
Speaker 6: cause some volatility given the way that there are a

200
00:11:35,440 --> 00:11:36,880
Speaker 6: lot of pound balls out there.

201
00:11:37,600 --> 00:11:40,280
Speaker 2: Okay, Garfield, thanks very much for bringing us up to date.

202
00:11:40,280 --> 00:11:43,240
Speaker 2: That's Garfield Reynolds there, who leads Bloomberg's Markets Live team

203
00:11:43,280 --> 00:11:43,800
Speaker 2: in Asia.

204
00:11:44,440 --> 00:11:47,920
Speaker 1: Now to the UK story, Prime Minister Kiss Starmer. We'll

205
00:11:47,960 --> 00:11:50,839
Speaker 1: meet with senior police leaders to give them his full

206
00:11:50,880 --> 00:11:54,480
Speaker 1: backing today. The move comes after several violent protests with

207
00:11:54,559 --> 00:11:57,600
Speaker 1: more than one hundred people arrested in central London last night.

208
00:11:57,960 --> 00:12:01,160
Speaker 1: Joining us now as our reporter James Walker, Good Morning, James.

209
00:12:01,200 --> 00:12:03,600
Speaker 1: Flares were thrown at the gates of Downing Street in

210
00:12:04,040 --> 00:12:07,920
Speaker 1: this demonstration and it's highly unusual, really, isn't it. Or

211
00:12:07,960 --> 00:12:09,640
Speaker 1: you're going to put it into context for us in

212
00:12:09,720 --> 00:12:13,800
Speaker 1: terms of protests, What actually happened last night in London well,

213
00:12:13,800 --> 00:12:14,040
Speaker 1: as you.

214
00:12:14,000 --> 00:12:15,640
Speaker 5: Said, and the MET have told us that more than

215
00:12:15,640 --> 00:12:18,760
Speaker 5: one hundred were arrested for offenses including find disorders from

216
00:12:18,800 --> 00:12:22,079
Speaker 5: emergency worker and breach of protest conditions. There was a

217
00:12:22,200 --> 00:12:24,959
Speaker 5: ride that was agreed to be going on outside Downing

218
00:12:24,960 --> 00:12:27,920
Speaker 5: Street between the hours about seven and nine last night,

219
00:12:28,200 --> 00:12:30,360
Speaker 5: but it dragged on vilation into the evening and in

220
00:12:30,520 --> 00:12:33,040
Speaker 5: sort of UK law, if you break protesting rules, that

221
00:12:33,080 --> 00:12:34,560
Speaker 5: then puts you up for a public or defense, so

222
00:12:34,559 --> 00:12:38,280
Speaker 5: that arrest started beginning from offosite minor injuries. The MET

223
00:12:38,320 --> 00:12:41,640
Speaker 5: has said it is hard to compare sizes given this

224
00:12:42,040 --> 00:12:43,840
Speaker 5: rally just happened last night and a lot of information

225
00:12:43,880 --> 00:12:45,920
Speaker 5: is still coming in, but just to put this in perspective,

226
00:12:46,679 --> 00:12:49,880
Speaker 5: we've had pro Palestine protests all this year and last

227
00:12:49,920 --> 00:12:53,800
Speaker 5: year since October, and there you will see numbers like

228
00:12:53,840 --> 00:12:56,160
Speaker 5: the METS saying there were roughly thirty thousand people in

229
00:12:56,200 --> 00:12:59,400
Speaker 5: a protest last November twenty nine arrests seventy thousand just

230
00:12:59,400 --> 00:13:03,120
Speaker 5: after Locto nine arrests last night, you have the METS

231
00:13:03,120 --> 00:13:05,920
Speaker 5: saying roughly a few hundred people with more than one

232
00:13:05,960 --> 00:13:08,880
Speaker 5: hundred arrests. And compare that to one of the worst

233
00:13:08,960 --> 00:13:11,480
Speaker 5: rights in modern UCA history, the twenty eleven London Rights.

234
00:13:11,480 --> 00:13:13,440
Speaker 5: So over a period of five days supposed to just

235
00:13:13,440 --> 00:13:15,559
Speaker 5: one night, there was a difference in times. There more

236
00:13:15,600 --> 00:13:18,559
Speaker 5: than three thousand arrests and five deaths at its worst

237
00:13:18,600 --> 00:13:23,000
Speaker 5: in twenty eleven. So the disorder as yet is not

238
00:13:23,200 --> 00:13:25,240
Speaker 5: on the kind of scale of like record breaking scales.

239
00:13:25,280 --> 00:13:28,600
Speaker 5: But however it is quite a sudden and shocking occurrence

240
00:13:28,640 --> 00:13:32,320
Speaker 5: that almost suddenly we see violence outside of down the street.

241
00:13:32,320 --> 00:13:35,360
Speaker 5: You've also seen disorder over night in Hartlepool and some

242
00:13:35,440 --> 00:13:36,800
Speaker 5: in Manchester as well.

243
00:13:37,160 --> 00:13:39,959
Speaker 2: Yeah, and quite small number is involved in those cases

244
00:13:40,000 --> 00:13:43,360
Speaker 2: as well. And what sparked this protest, James, It's hard to.

245
00:13:43,280 --> 00:13:46,920
Speaker 5: Point to one easy cause, especially for large social movements

246
00:13:47,000 --> 00:13:51,240
Speaker 5: like this. However, a lot of the organization for this

247
00:13:51,360 --> 00:13:55,840
Speaker 5: began in Southport where there was a vicious stabbing attack

248
00:13:55,880 --> 00:13:58,120
Speaker 5: that led to the deaths of three girls. Now the

249
00:13:58,160 --> 00:14:01,120
Speaker 5: police and media followed strict rules what we can report.

250
00:14:01,240 --> 00:14:04,160
Speaker 5: There is now an active court case ongoing, so we

251
00:14:04,240 --> 00:14:06,280
Speaker 5: have to maintain the right to a fair trial and

252
00:14:06,280 --> 00:14:08,480
Speaker 5: we are limited in what we can say now that

253
00:14:08,520 --> 00:14:10,719
Speaker 5: a seventeen year old has been charged in Southport. But

254
00:14:10,800 --> 00:14:13,679
Speaker 5: in the gap of that sort of in what we

255
00:14:13,720 --> 00:14:17,520
Speaker 5: can say in this social media era, that gap has

256
00:14:17,559 --> 00:14:19,840
Speaker 5: been filled by a lot of far right groups and

257
00:14:19,880 --> 00:14:24,000
Speaker 5: conspiracy theorists. They have filled that gap with a lot

258
00:14:24,080 --> 00:14:27,440
Speaker 5: of misinformation about who this seventeen year old is, where

259
00:14:27,480 --> 00:14:30,240
Speaker 5: they have come from, the motivations behind the attack, all

260
00:14:30,240 --> 00:14:33,360
Speaker 5: of which is complete speculation, and the police have taken

261
00:14:33,360 --> 00:14:37,400
Speaker 5: the unusual step of revealing that there are some invented

262
00:14:37,480 --> 00:14:39,880
Speaker 5: names on social media. They are incorrect, the police say,

263
00:14:40,200 --> 00:14:41,960
Speaker 5: and that the charge team was born in Britain, so

264
00:14:42,000 --> 00:14:46,240
Speaker 5: some of the false rumors about their origin are also incorrect. However,

265
00:14:46,320 --> 00:14:50,720
Speaker 5: that hasn't stopped far right groups organizing and putting out

266
00:14:50,800 --> 00:14:54,160
Speaker 5: leaflets and organizing rallies to say that immigration is out

267
00:14:54,200 --> 00:14:55,920
Speaker 5: of control, and that has led to some of the

268
00:14:55,960 --> 00:14:57,520
Speaker 5: events of last night.

269
00:14:57,760 --> 00:14:59,840
Speaker 1: And so just in terms of what we're expecting to

270
00:15:00,160 --> 00:15:03,480
Speaker 1: they form the government from the Prime Minister. What comes

271
00:15:04,440 --> 00:15:05,960
Speaker 1: next in the response.

272
00:15:05,600 --> 00:15:08,160
Speaker 5: Well, I mean Kis Darma meets senior police leaders this afternoon.

273
00:15:08,200 --> 00:15:10,240
Speaker 5: He's expected to say that they have his full backing

274
00:15:10,280 --> 00:15:12,040
Speaker 5: to use the full powers of the law to stop

275
00:15:12,200 --> 00:15:16,560
Speaker 5: mindless violence, and so he will potentially be speaking after

276
00:15:16,600 --> 00:15:18,800
Speaker 5: that as well. And we also take note that the

277
00:15:18,800 --> 00:15:21,040
Speaker 5: Home secuity of at Cooper earlier this week said that

278
00:15:21,120 --> 00:15:24,680
Speaker 5: social media giants need to take some responsibility for how

279
00:15:24,720 --> 00:15:25,920
Speaker 5: this information was spread.

280
00:15:27,320 --> 00:15:30,080
Speaker 2: This is Bloomberg Daybreak Europe. You're morning brief on the

281
00:15:30,120 --> 00:15:33,200
Speaker 2: stories making news from London to Wall Street and beyond.

282
00:15:33,480 --> 00:15:37,440
Speaker 1: Look for us on your podcast feed every morning on Apple, Spotify,

283
00:15:37,520 --> 00:15:39,480
Speaker 1: and anywhere else you get your podcasts.

284
00:15:39,520 --> 00:15:42,560
Speaker 2: You can also listen live each morning on London Dab Radio,

285
00:15:42,600 --> 00:15:45,280
Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

286
00:15:45,320 --> 00:15:48,120
Speaker 1: Our flagship New York station is also available on your

287
00:15:48,120 --> 00:15:52,840
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

288
00:15:53,080 --> 00:15:54,320
Speaker 1: I'm Caroline Hepka and.

289
00:15:54,320 --> 00:15:56,960
Speaker 2: I'm Stephen Carroll. Join us again tomorrow morning for all

290
00:15:57,000 --> 00:15:59,400
Speaker 2: the news you need to start your day right here

291
00:15:59,440 --> 00:16:05,000
Speaker 2: on Bloomberg day Break Europe,