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Speaker 1: Good morning. It's Monday, the eighteenth of September here in London.

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Speaker 1: This is the Bloomberg Daybreak You At podcast. I'm Caroline Hepko.

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Speaker 2: And I'm Stephen Carroll. Coming up today, Keir Starmer pledges

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Speaker 2: to renegotiate the post breggs At trade agreement with the EU.

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Speaker 2: As traders voice their support for a labor government.

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Speaker 1: UK rental cost surge at the fastest pace in at

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Speaker 1: least a decade plus.

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Speaker 2: We take a closer look at a money laundering trial

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Speaker 2: in Monaco that sees six bankers accused of helping an

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Speaker 2: Italian businessman store bags of cash.

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

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Speaker 2: Two thirds of finance professionals believe a labor led government

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Speaker 2: would be the best results for UK stocks and the pound.

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Speaker 2: Despite Prime Minister Richi's sunac's efforts since replacing trust last year,

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Speaker 2: eighty percent of traders in a Bloomberg survey believe confidence

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Speaker 2: in UK assets hasn't fully recovered. The result comes as

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Speaker 2: the labor leader, Kiirs Starmer, refused to rule out tax

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Speaker 2: increases for the wealthy if he were to win the

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Speaker 2: next general election. Here's his response when asked if the

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Speaker 2: tax spurred and would rise under Labor.

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Speaker 3: I want it to come down for working people, but

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Speaker 3: I also am absolutely focused on growing the economy. If

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Speaker 3: the economy in the last thirteen years had grown at

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Speaker 3: the same rate as the last Labor government, we'd have

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Speaker 3: tens of billions of pounds to spend on our public

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Speaker 3: services without raising a penny more intact.

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Speaker 2: Speaking separately to The Financial Times for Keir Starmer also

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Speaker 2: said he would seek to secure a quote much better

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Speaker 2: Brexit trade deal with the EU, but ruled out rejoining

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Speaker 2: the Customs Union.

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Speaker 1: So an increasing focus on Keir Starmer's economic policies as

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Speaker 1: the former Conservative Prime Minisilis Trust prepares to blame the

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Speaker 1: UK's anemic growth on too much quote economic consensus. Almost

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Speaker 1: exactly a year since Truss's ill fated Many budget, the

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Speaker 1: ex leader will use a speech today to argue that

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Speaker 1: her plans would have saved the UK almost thirty six

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Speaker 1: billion pounds over two years. Her intervention comes as the

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Speaker 1: current Prime Minister i she soon act faces growing criticism

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Speaker 1: from a range of voices in the Toy Party who

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Speaker 1: say that he should cut taxes to boost economic growth.

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Speaker 2: The UK's property markets mashed another record, as casts to

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Speaker 2: rent rise at the fastest pace in at least a decade.

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Speaker 2: Bloomberg's Crispett has the details.

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Speaker 4: Tenants are paying twelve percent more than a year ago

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Speaker 4: for new rental agreements, the largest rise since property broker

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Speaker 4: Hampton's began publishing its lettings index. The average person is

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Speaker 4: now paying thirteen hundred pounds a month for rent. That's

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Speaker 4: up one hundred and forty pounds from a year ago

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Speaker 4: and the highest on record in the sales market. Property

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Speaker 4: portal right Move says sellers were asking zero point four

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Speaker 4: percent more in September, the first time asking prices have

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Speaker 4: risen since May, but it's still well below the increase

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Speaker 4: usually seen at this time of year. The figures underscore

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Speaker 4: inflationary pressures that are alarming the Bank of England and

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Speaker 4: adding to pressure for another hike in interest rates. On

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Speaker 4: Thursday in London, I'm Chris Pitt Bloomberg Radio Now.

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Speaker 1: The president of the United Auto Workers union, says that

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Speaker 1: he is unmoved by the twenty one percent pay rise

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Speaker 1: offered from Stilantis as the strike against the Big three

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Speaker 1: US automakers continues. Here's the exchange between Shawn Faine and

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Speaker 1: the news anchor on CBS. It's face the nation in

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Speaker 1: our demands are just We're asking for our fair share

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Speaker 1: in this economy and the fruits of our labor.

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Speaker 2: So twenty one percent is a no go for you.

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Speaker 2: It's definitely an no go, and we've made that very

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Speaker 2: clear of the companies.

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Speaker 1: Fanes comments signal the union and Detroit executives at four

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Speaker 1: GM and stillants are still far apart when it comes

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Speaker 1: to negotiations. Workers at plants in Michigan, Ohio, and Missouri

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Speaker 1: walked off the job on Friday in a partial strike

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Speaker 1: that's threatening billions of dollars in losses if it spreads

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Speaker 1: to more plants.

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Speaker 2: Bloomberg understands that global banks in India are expanded maternity

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Speaker 2: benefits to include perks rarely seen elsewhere in the country

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Speaker 2: in an effort to attract and retain female employees. India

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Speaker 2: already requires them in twenty six weeks of maternity leave

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Speaker 2: at full pay, among the longest in the G twenty economies.

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Speaker 2: According to the World Bank's Gender Data Portal. Overall, less

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Speaker 2: than a quarter of adult women in India work, among

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Speaker 2: the lowest rates in the world. Really interesting story, Kopmar.

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Speaker 2: This morning on the terminal Caroline about the role of

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Speaker 2: sponsors in women's football and the effort that they can

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Speaker 2: have in turning I suppose their financial contributions into also

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Speaker 2: promotion of the sport, looking at some of the stories

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Speaker 2: of course around the controversy around Luis Rubialis in Spain

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Speaker 2: as well, and how Adi Das has stayed out of

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Speaker 2: the Ferrari for the moment. But looking at suppose the

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Speaker 2: broader influence they can have and at what moment brands

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Speaker 2: choose to step in when there are controversies in the

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Speaker 2: sport and to use their influence in that way. Quite

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Speaker 2: an interesting read on the subject.

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Speaker 1: Yeah, no, absolutely, I mean the fact is that that

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Speaker 1: participation and viewership has increased in normalcy, but we saw

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Speaker 1: in the Women's World Cup that wasn't matched really by

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Speaker 1: the broadcasting might in terms of pay to watch those games.

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Speaker 1: And so yes, the question is how much sponsorship money

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Speaker 1: is they're out there, especially when controversies hit the game.

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Speaker 2: Let's turn now to one of the stories we're following

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Speaker 2: for you here in the UK, the details on the

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Speaker 2: m Live Pulse survey from Bloomberg showing investors hoping for

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Speaker 2: a clear labor victory at the next election. This as

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Speaker 2: Kiir Starmer has been speaking about his tax policy plans

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Speaker 2: and his ambitions for beefing up the UK trade deal

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Speaker 2: with the EU if he becomes Prime Minister after the

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Speaker 2: next election. Our UK correspondent Lizzie Burden is here with

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Speaker 2: us for more on this so Kire Starmer doing a

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Speaker 2: series of interviews over the weekend, Lizzie giving us some

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Speaker 2: more clues about Labour's policies. What did we learn well.

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Speaker 5: Starmer refused to guarantee that there won't be tax rises

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Speaker 5: for the rich if Labour comes to power. He said

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Speaker 5: that he wants the tax burden to come down for

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Speaker 5: working people, which seems to contradict what the Shadow Chancellor

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Speaker 5: Rachel Reeves said recently that Labor wouldn't raise capital gains tax,

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Speaker 5: that it wouldn't introduce a mansion tax. She also said

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Speaker 5: that Labour no longer planned to raise the top rate

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Speaker 5: of tax, which Starmer had pledged back in twenty twenty.

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Speaker 5: Look he said that his plan is to grow the

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Speaker 5: economy out of public funding shortfalls, which is pretty similar

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Speaker 5: to what the Chancellor Jeremy Hunt told has Linda Amin

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Speaker 5: at Bloomberg last week. At the G twenty in New Delhi.

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Speaker 5: But Starmer was also forced to admit that if that

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Speaker 5: plan doesn't work, he might be reforced to turn to

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Speaker 5: tax rises. He's also meeting the French President Emmanuel mccorn

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Speaker 5: this week, so trying to get the edge on the

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Speaker 5: Conservatives by increasing cooperation with the EU. And it makes

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Speaker 5: me think of Friday's episode of the Bloomberg UK Politics podcast.

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Speaker 5: We were talking to Morrison, the CEO of the Northern

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Speaker 5: Powerhouse Partnership. Stay with me for this comparison, right, He

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Speaker 5: said that Northern businesses are basically looking past the next

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Speaker 5: fifteen months or so of Conservative rule and assuming that

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Speaker 5: Labour's going to win the election and basically planning for that.

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Speaker 5: So I wonder whether international leaders are taking the same approach.

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Speaker 1: Yeah, it was a great interview. It was incredibly combative

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Speaker 1: because of course the Northern Powerhouse leader was talking about

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Speaker 1: rail connection and connectivity that the Conservative government has pulled

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Speaker 1: back on progressive He sounded frankly furious about it, and

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Speaker 1: you know, but that was a long term project. Labour's

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Speaker 1: also been on a mission, of course to win over

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Speaker 1: the business community in the city and around and our

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Speaker 1: mlive Pulse survey shows that that does seem to be working.

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Speaker 5: Really a line in the sand moment, So about two

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Speaker 5: thirds of finance professionals back Keir Starmer as Prime Minister.

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Speaker 5: This is according as you say, to our latest M

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Speaker 5: Life Pulse sur the majority think that Starmer would be

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Speaker 5: better for the pound and better for the foot Sea.

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Speaker 5: So it suggests that this smoked salmon and scrambled eggs

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Speaker 5: offensive is actually working. This is Starmer's version of Tony

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Speaker 5: Blair's prawn cocktail offensive, of course, to woo the city.

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Speaker 5: And remember, Starmer's had to work extra hard here because

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Speaker 5: his predecessor as Labor Leader, Jeremy Corbyn, was so distrusted

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Speaker 5: by the business community, so he scrapped Corbin's nationalization plans.

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Speaker 5: He's picked x boee economist Rachel Reeves as his shadow Chancellor.

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Speaker 5: He's given her more profile than any of his front

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Speaker 5: bench and then for the Toy's part, it shows just

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Speaker 5: how hard Starmer's sunak is having to work. I should say,

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Speaker 5: to heal those reputational scars left by Liz Truss, and

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Speaker 5: it doesn't seem he's managed yet, but she's going to

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Speaker 5: be coming back today. A year on from her mini

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Speaker 5: budget to tell us about whether well her thoughts a

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Speaker 5: year on from her premiership.

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Speaker 2: I mean, is Liz Tross returning to I suppose a

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Speaker 2: little bit more prominently the political scene going to cause

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Speaker 2: trouble for us, So now.

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Speaker 4: I bet he hopes not.

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Speaker 5: She's stayed on the fringes of politics since that short,

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Speaker 5: disastrous term. What she's expected to say is that she's

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Speaker 5: glad both both political parties agree on the need for

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Speaker 5: economic growth. She blames the lack of it on what

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Speaker 5: she calls twenty five years of economic consensus that now

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Speaker 5: needs to be shattered. She's expected to say that free

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Speaker 5: market economists were lured by city money and that's left

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Speaker 5: academia to be captured by the left. So it doesn't

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Speaker 5: look like we're going to get any apologies today. More

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Speaker 5: attacks on the blob and if you can believe it,

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Speaker 5: A preview of this speech that she's set to give

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Speaker 5: to the Institute for Government at ten am this morning,

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Speaker 5: says she's going to remind us it's not about sharing

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Speaker 5: the pie, it's about growing the pie. I thought we'd

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Speaker 5: learned that you can't grow pies anyway. She's expected to

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Speaker 5: defend what has been described as unfunded tax cuts that

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Speaker 5: she was planning to and she's expected to say they

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Speaker 5: weren't implemented because there was a reaction from the political

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Speaker 5: and economic establishment which fed into the markets, markets that

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Speaker 5: were already destabilized by the BOE slowdus to hike interest

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Speaker 5: rates and the failure to regulate LDIS. Look, our listeners

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Speaker 5: are the markets. They were the guardrails. I think they

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Speaker 5: can decide why they did what they did.

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Speaker 1: Yeah, absolutely, okay, Lizzie Man, thank you so much for

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Speaker 1: being with us. Our UK correspondent, Lizzie Burden. I mean

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Speaker 1: very interesting. I think to look at that Bloomberg m

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Speaker 1: Live Pulse survey about the support around a labour's policies

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Speaker 1: and you know some even looking through it really interesting. Lizzie,

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Speaker 1: thank you so much.

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Speaker 2: Well, let's turn next to a story from Monaco. Six

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Speaker 2: bankers there are about to face trial following an investigation

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Speaker 2: that shows how eager they were to accept regular bundles

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Speaker 2: of cash from an Italian businesspan a set of links

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Speaker 2: to the mafia. Our legal reporter Gaspar Sebag joins us

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Speaker 2: now from Paris with more on this story. Good morning

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Speaker 2: to you, Gaspar, are great to have you with us

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Speaker 2: what struck you most in this investigation?

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Speaker 6: Good morning, thanks for having me too. Well, here we

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Speaker 6: have an Italian businessman who's making these regular visits to

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Speaker 6: Monaco with the bundles of cash, and I think what's

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Speaker 6: quite striking really is the size of them. We've got

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Speaker 6: a a banker who's telling investigators that he would arrive

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Speaker 6: with a bag foot of cash, not an envelope, a

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Speaker 6: bag full of cash. And also the frequency is quite striking.

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Speaker 6: He comes three times in just under six weeks, and

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Speaker 6: each time he deposits one hundred and fifty thousand euros

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Speaker 6: in cash, and none of these alarm bells are rung

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Speaker 6: at the banks, and it just keeps on going.

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Speaker 1: Tell us about the man himself, more about this Italian

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Speaker 1: man and more, what do we know of him?

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Speaker 6: Well? Sure, so he presents himself to bankers as a

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Speaker 6: real estate and construction enterpren And that's what also is

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Speaker 6: quite striking in this investigation is that the bankers never

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Speaker 6: try to ascertain where his funds come from. They actually

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Speaker 6: candidly admit to investigators that they thought the money that

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Speaker 6: he was bringing in was money stemming from tax fraud.

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Speaker 6: But according to them, the tax world was committed elsewhere,

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Speaker 6: maybe in Italy or elsewhere, and not in Monaco where

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Speaker 6: it's not a crime. And so therefore they had just

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Speaker 6: no concerns and they said, no, it's not money laundering,

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Speaker 6: keep keeping going going on.

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Speaker 2: So how did this case get started, then, the one

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Speaker 2: that's set to begin.

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Speaker 6: Well, as you can imagine from what I'm saying, it's

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Speaker 6: not in Monaco that it began. They didn't really start

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Speaker 6: to look into the bonnet until until the Italians started

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Speaker 6: closing in on this fellow mister Murray. They the Italians

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Speaker 6: had this vast investigation into corruption allegation, which is known

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Speaker 6: as Matthia capitally. It led to about eighty arrests throughout

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Speaker 6: the country. It was, it was, it was a huge case.

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Speaker 6: Mister Amory himself was named suspect and he was charged

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Speaker 6: in a peril investigating into an allegedly rigged contract to

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Speaker 6: renovate a city building in Rome. And so when news

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Speaker 6: of Amora's involvement actually made it to the public, Monaco

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Speaker 6: was kind of forced to lick into it, you know,

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Speaker 6: it or became quite strange. And so that's how it

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Speaker 6: got kick started from from elsewhere.

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Speaker 1: And then what do you think that the probe tells

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Speaker 1: us about what's going on in Monaco.

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Speaker 6: Well, so in Monaco, some of these allegations date date

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Speaker 6: back a little bit, but I think the issue is

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Speaker 6: very topical because just in in January, we had a

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Speaker 6: report from European anti moneying laundering officials who were very

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Speaker 6: critical of Monaco's control systems concerning money laundering, and they

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Speaker 6: have then asked on their findings to another organism known

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Speaker 6: as fat F, and fat F has the power to

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Speaker 6: put a country on what's known as the gray list

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Speaker 6: of countries which don't do enough to stem the flow

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Speaker 6: of dirty money. So Monaco's at a real risk here

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Speaker 6: to possibly be kind of, you know, gray listed and

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Speaker 6: put into this category of kind of unsavory nations.

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Speaker 2: What about the bankers themselves, what do we know about

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Speaker 2: the case that's been mounted against them.

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Speaker 6: So the investigation was a bit more far reaching in

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Speaker 6: its initial steps. I think as many as eleven bankers

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Speaker 6: were initially prosecuted, but only six will face trial. Two

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Speaker 6: are facing money laundering accusations and these two were banned

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Speaker 6: from the industry, and the other four actually accused of

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Speaker 6: having not filed what's known as a suspicious Transaction Report,

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Speaker 6: which is this is mental tool which helps you know

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Speaker 6: anti money journdinge processes actually come to life and they

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Speaker 6: just didn't, you know, they stood by and didn't do anything.

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Speaker 6: That's what they're accused of.

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