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

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Speaker 1: Day Bacate podcast, available every morning on Apple, Spotify or

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Speaker 1: wherever you listen. It's Wednesday, the twenty seventh of November

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Speaker 1: in London. I'm Caroline Hepka.

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

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Speaker 3: Israel and Hezbeler start a sixty day ceasefire following weeks

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Speaker 3: of talks.

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Speaker 1: US President elect Trump adds more names to his top

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Speaker 1: economic team as talk of tariffs drives, increasing our ease

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Speaker 1: outside the US.

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Speaker 3: Plus the intriguing case involving France's richest man, a mystery paparazzo,

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Speaker 3: and the country's former spy chief.

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Speaker 4: Let's start with a roundup of our top stories.

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Speaker 1: Israel has begun a sixty day ceasefire with the Lebanese

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Speaker 1: militant group Hizballah. The deal comes after weeks of talks

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Speaker 1: mediated by the United States. While the agreement drew objections

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Speaker 1: from some hardliners in Israel, President Joe Biden it as

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Speaker 1: a step towards a broader, more lasting peace in the region.

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Speaker 5: This is designed to be a permanent cessation of hostilities.

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Speaker 5: What is left of Hesbelah and another terrorist organization will

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Speaker 5: not be allowed well our emphasized, will not be allowed

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Speaker 5: to threaten security visual again. Over the next sixty days,

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Speaker 5: the Lebanese Army and State Security Force will deploy and

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Speaker 5: take control of their own territory once again. HESBLA terrorist

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Speaker 5: infrastructure and southern Lebanon will not be allowed to be rebuilt,

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Speaker 5: and over the next sixty days, Israel will gradually withdraw

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Speaker 5: its remaining forces.

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Speaker 1: While President Biden hailed the agreement as a major turning point,

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Speaker 1: Bloomberg's US national security reporter Nick woodhams says that a

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Speaker 1: cease fart in Gaza still remains a challenge.

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Speaker 6: The intractable problem there is that Israel says it will

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Speaker 6: not step stop the fight in Gaza until Hamas no

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Speaker 6: longer exists as a fighting force. Hamas meanwhile says, even

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Speaker 6: though it's in a vastly degraded state, it says it

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Speaker 6: will not end the fighting until Israel withdraw us from

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Speaker 6: the Gaza strip. I mean, those are two fundamentally oppositional goals,

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Speaker 6: and so far the two sides have found no way

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Speaker 6: to be able to reconcile.

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Speaker 1: Nick Wodham's assessment comes as Israel's prime Minister Benjamin Ettnia,

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Speaker 1: who says the deal would allow the country to focus

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Speaker 1: on the threat from Ivan. He also alluded to the

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Speaker 1: strain of sustaining the war on two fronts, saying quote,

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Speaker 1: the second reason is to give our forces a breather

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Speaker 1: and replenish stocks.

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Speaker 3: France's Prime Minister Michelle Barnier is warning of a storm

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Speaker 3: in markets if his government's budget proposals are rejected. Speaking

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Speaker 3: during an interview with the French TV CHANNELFM, Barnier discussed

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Speaker 3: the challenges facing the government.

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Speaker 7: An unbelievable debt three point two three trillion euros, a

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Speaker 7: record deficit, no majority in the National Assembly the first

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Speaker 7: time since nineteen fifty eight, two weeks to come up

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Speaker 7: with the budget, only two weeks and so I have

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Speaker 7: prepared this budget. It is not perfect. I know we

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Speaker 7: have to modify it and improve it.

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Speaker 3: I have already suggested some improvements, Michelle Barnier.

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Speaker 2: They're speaking through a translator.

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Speaker 3: His survival as prime minister depends on whether far right

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Speaker 3: leader Marrying Lapen tables a no confidence vote in response

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Speaker 3: to the budget. The pen has plaged to do, so

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Speaker 3: have her demands to better protect household purchasing power aren't met. Meanwhile,

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Speaker 3: French bond risk has risen to levels last scene during

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Speaker 3: the Euro Area death crisis.

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Speaker 2: Amidst the political standoff.

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Speaker 1: Taxes on Britain's biggest businesses spiked even before the autumn budget.

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Speaker 1: That is, according to new figures from the auditing firm PwC.

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Speaker 1: Patoomberg's Tiba Adebayo has more.

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Speaker 8: A group of the largest UK companies paid thirty one

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Speaker 8: point eight billion pounds in direct taxes over the last

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Speaker 8: fiscal period, say accountants at PwC. That's up more than

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Speaker 8: ten percent from the previous year, an increase largely due

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Speaker 8: to corporate ration tax break reversals by the Conservative Party.

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Speaker 8: Labour's Rachel Reeves left corporation tax unchanged in her autumn budget,

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Speaker 8: but drew frustration from industry by raising employers' national insurance contributions,

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Speaker 8: which made up a quarter of the direct taxes on

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Speaker 8: big businesses. Ministers from both parties have avoided raising taxes

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Speaker 8: directly on voters in recent years, choosing to target large

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Speaker 8: companies instead. In London, Tima Adebayo Bloomberg.

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Speaker 3: Radio Stillantas has announced plans to close its Vauxhall van

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Speaker 3: factory in Luton, with around one thy one hundred jobs affected.

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Speaker 3: The automaker cited the UK government's stringent EV mandate as

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Speaker 3: part of the reason for the move. The firm says

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Speaker 3: that intends to consolidate its manufacturing in the UK at

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Speaker 3: Ellesmere Port, where it says hundreds of workers could be relocated.

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Speaker 3: Business Secretary Jonathan Reynolds has described the news as disappointing.

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Speaker 2: The fact they're.

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Speaker 9: In going to Ellesmere Port and there's going to be

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Speaker 9: a fifty sixty million pounds understand investment in the paint

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Speaker 9: shop to do that. Of course that bid is good news,

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Speaker 9: but I wouldn't want to give any other impression than

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Speaker 9: I believe this is a very difficult day for people in.

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Speaker 3: Lwton Business Accery Jonathan Reynold speaking there. Pant has threatened

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Speaker 3: to pull out of the UK entirely earlier this year,

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Speaker 3: warning that the government's EV objectives are too ambitious as

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Speaker 3: demand in Europe wanes. The UK rules require ten percent

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Speaker 3: of new van sales this year to be zero emission,

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Speaker 3: rising to seventy percent by the end of the decade.

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Speaker 1: US person elect Donald Trump has named Kevin Hassett to

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Speaker 1: direct the National Economic Council and Jameson Greer as his

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Speaker 1: trade representative. Both men served in the last Trump administration,

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Speaker 1: with Hassett now expected to play a key role in

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Speaker 1: Trump's plans to cut taxes and as Blimberg's Doug Krisner reports,

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Speaker 1: if Greer is confirmed by the Senate, he's likely to

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Speaker 1: have a direct hand in the present elect's aggressive approach

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Speaker 1: to reshaping US trade policy.

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Speaker 10: The selection of Greer highlights the central role tariffs will

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Speaker 10: play in Trump's second agenda. He's a long time protege

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Speaker 10: of Robert Leittheiser, Andy was involved in Trump's first term

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Speaker 10: trade policy decisions, including steep duties on China and the

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Speaker 10: negotiations for a partial trade deal with Beijing, concluded shortly

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Speaker 10: before the outbreak of the pandemic. Greer is now expected

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Speaker 10: to play a pivotal role in implementing the president Alexe

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Speaker 10: tear of plans, including twenty five percent levies on Canadian

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Speaker 10: and Mexican goods, as well as an additional ten percent

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Speaker 10: on existing Chinese tariffs. In New York Time, Doug Prisoner

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Speaker 10: Bloomberg Radio.

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Speaker 3: FAT officials indicated broad support for a careful approach to

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Speaker 3: future interest rate cuts. According to minutes from their last

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Speaker 3: policy meeting. The US Central Bank lowered its banchmark rate

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Speaker 3: by a quarter percentage point earlier this month, followed by

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Speaker 3: a larger than usual half point reduction in September. Here

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Speaker 3: is Boomberg's International Economics and Policy correspondent Michael McKee on

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Speaker 3: what we learned from the fomc's November minettes.

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Speaker 11: The conditions were pretty good for the economy, better than

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Speaker 11: expected in terms of growth and unemployment. Inflation had stalled

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Speaker 11: out a little bit, but they still didn't think it

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Speaker 11: was going to be a problem to get it down

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Speaker 11: to two percent, and so rake cuts were called for.

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Speaker 3: That's Bloomberg's Michael McKee speaking there. The insights come after

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Speaker 3: fed charge your own. Powell said earlier this month that

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Speaker 3: the economy is not sending signals policymakers need to be

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Speaker 3: in a hurry to lower rates.

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Speaker 1: Now those are your top stories this morning. On the markets.

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Speaker 1: Right now you have European stock futures edging lower, expecting

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Speaker 1: a weeker open. Here in Europe we're currently down by

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Speaker 1: two tenths of one percent. Also, the Japanese yen strengthening

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Speaker 1: against the US dollar as much as six tenths of

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Speaker 1: one percent. Ten year US treasury yields have also fallen

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Speaker 1: two basis points, treading at four twenty eight this morning.

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Speaker 1: It comes after Wall Street notched up another record closed yesterday.

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Speaker 1: The S and P five hundred closed up by six

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Speaker 1: tenths of one percent. Also worth noting French and German yields,

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Speaker 1: the spread closed that the widest since twenty twelve yesterday,

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Speaker 1: moving five basis points to a spurt of eighty six

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Speaker 1: basis points. The budget disagreement that imperils the French government

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Speaker 1: or threatens the French government is the main driver there,

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Speaker 1: so another issue that will watch in markets this morning.

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Speaker 3: In a moment, we'll bring you the latest on the

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Speaker 3: seas fire between Israel and Hezwella, plus the court case

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Speaker 3: involving France's richest man and mystery paparazzo on the country's

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Speaker 3: former spy chief.

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Speaker 2: But first, another story that caught our eye this morning.

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Speaker 3: You may have seen or heard about Jaguar's latest ad,

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Speaker 3: which for its brand makeover, will sue a lot of attention.

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Speaker 3: I think it's fair to say on social media and

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Speaker 3: traditional media as well, lots of people had lots of

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Speaker 3: opinions about what JLR was trying to put forward funny letters.

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Speaker 1: I suppose the fact that it's changed the look of

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Speaker 1: its logo maybe.

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Speaker 3: Yeah, plenty to discuss on that front. But actually our

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Speaker 3: colleague Jamie Nimmo has been writing about another challenge that

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Speaker 3: the carmaker is facing, and it's its Chinese partner, Cherry,

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Speaker 3: that wants to bring its upmarket j Coup brand to

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Speaker 3: the UK. And this car would be a competitor to

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Speaker 3: the Range Rover Evoke and it's significantly cheaper.

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Speaker 1: Yeah, it's really interesting. I mean, Cherry's a push comes

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Speaker 1: after JLR was forced to defend that teaser ad. As

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Speaker 1: you say, it's an interesting move. It isn't necessarily about

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Speaker 1: the threat of EU tariffs though, because Cherry's UK boss

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Speaker 1: says that they're moving ahead in all European countries at

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Speaker 1: the same pace, so they're not worried about those levees.

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Speaker 1: But it's pretty fascinating that you've got basically a company

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Speaker 1: that's been involved in a joint venture with JLR and

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Speaker 1: how becoming a competitor sort of on home turf and

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Speaker 1: as you say, at a lower price point. I had

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Speaker 1: to watch lots of videos about the jqu does actually

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Speaker 1: look quite a lot like a land Rover in lots

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Speaker 1: of ways. But yeah, loads of brands out there now

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Speaker 1: in that kind of mid range suv space.

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Speaker 3: Well, let's bring you more now on development in the

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Speaker 3: Middle East, where a temporary cease fire between Israel and

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Speaker 3: Hezbollah has come into effect. Our head of Middle East,

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Speaker 3: North Africa and Russia coverage, Stuart Livingston Wallace joins us

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Speaker 3: now for more. It's Stuart, good to have you. What

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Speaker 3: are the terms of this ceasefire agreement?

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Speaker 12: Good morning, Steven. Yeahs broadly as the US President laid

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Speaker 12: out in EU earlier clip. I mean, it will be

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Speaker 12: a gradual withdrawal of israel taries from southern Lebanon, with

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Speaker 12: a simultaneous move into that land by a reinforced Lebanese army,

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Speaker 12: and of course the UN force is already there. We

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Speaker 12: presume that will be bolstered over the next couple of months,

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Speaker 12: and during that period there will be further negotiations about

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Speaker 12: what what the state of affairs will be going forward

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Speaker 12: for the next several years. So the key points here

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Speaker 12: are basically a cessation of hostilities while those talks go on,

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Speaker 12: but with the clear implication that should hiss bullow fire

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Speaker 12: any rockets during that time, and sorry, Israel will respond

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Speaker 12: extremely forcefully.

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Speaker 1: In terms of what shifted the two sides to this deal,

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Speaker 1: obviously we've witnessed the intense kind of military action. What

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Speaker 1: actually got the two sides to an agreement, I.

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Speaker 12: Mean, I think there's a couple of things on the

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Speaker 12: Israeli side, Probably a tactical decision in the sense that

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Speaker 12: you know, they are fighting at multiple theaters. Yes, Garsa

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Speaker 12: are still going on. Leban was sucking up a lot

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Speaker 12: of resources in time, and of course there's the ongoing

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Speaker 12: threat of Iran, which Nesseniovu did mention, you know, in

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Speaker 12: his comments last night. So a sense that they have

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Speaker 12: probably eliminated most of the Hezbula's infrastructure in southern Lebanon.

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Speaker 12: And the key point there is as follows that one

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Speaker 12: of the big warriors they had was a repeat of

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Speaker 12: the attacks that we had coming in from Gaza a

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Speaker 12: year ago. In a scenario where you can push Hezbullah

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Speaker 12: back several kilometers from the border, that makes it that

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Speaker 12: much more difficult for Hezbolla to sort of attempt the

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Speaker 12: same kind of thing. You know, it gives Israel a

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Speaker 12: little bit more of a heads up, and there is

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Speaker 12: the practical implication as well that if Hezbula is several

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Speaker 12: kilometers further away from the border, that any missiles fired

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Speaker 12: in the direction of Israel should be captured earlier enough

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Speaker 12: so that Israel's air defenses can sort of take them out.

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Speaker 12: When you're right next to the border and you've literally

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Speaker 12: got five six seconds to act, that Jenny doesn't give

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Speaker 12: you enough time. I think On the Hosbola side, it

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Speaker 12: was a sense that you know, most of its senior

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Speaker 12: lige has been eliminated, a great deal of its arsenal,

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Speaker 12: though we don't know how much has been eliminated, and

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Speaker 12: it was sort of losing popular support within Lebanon because

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Speaker 12: of the scale of the destruction that was going on.

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Speaker 3: Okay, thank you very much. That's Stuart Levinson Wallace. There

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Speaker 3: are ahead of Middle East, North Africa and Russia coverage now too.

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Speaker 1: One of our key stories this morning, France's richest man

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Speaker 1: LVMH boss Bernard Arnault, could face some embarrassing questions in

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Speaker 1: court when he appears as a witness in a case

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Speaker 1: in Paris this week. The case focuses on the former

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Speaker 1: spy chief Bernard Squarcini and his activities whilst he worked

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Speaker 1: as a bodyguard for Arnault. Our legal reporter guests bar

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Speaker 1: siebay Jones is now from Paris for more on this

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Speaker 1: story which has fascinated much of France.

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Speaker 4: What is this case actually about?

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Speaker 13: Good morning, thank you for having me on the show. Well, look,

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Speaker 13: this case centers on Bernard Squarsini. He was indeed the

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Speaker 13: head of Francis intelligence agency called DCRI, and there are

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Speaker 13: several allegations which relate to two different periods of this

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Speaker 13: man's life.

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Speaker 14: Of the first part is.

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Speaker 13: When he was in office as the head of this

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Speaker 13: intelligence agency, and the second part is when he left

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Speaker 13: public service and went into private practice and was pretty

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Speaker 13: much immediately hired by LVMH as an external contractor. The

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Speaker 13: accusation has built a case and suggests that Squarsini's hiring,

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Speaker 13: which happened in twenty thirteen, may have had something to

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Speaker 13: do with the operation he launched in two thousand and

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Speaker 13: eight to help bern r and Alvimh unmask these blackmailers.

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Speaker 13: It may have been some sort of a thank you,

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Speaker 13: it seems. So that's the case in a nutshell.

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Speaker 3: We're going to be watching closely to see what Barner

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Speaker 3: Arnaut is asked when he gives evidence in this case,

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Speaker 3: what's he likely to be asked?

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Speaker 2: Well?

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Speaker 13: So, like I said, the case against Squarsini is actually

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Speaker 13: vaster than just a blackmail incident. And Arnault was called

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Speaker 13: to testify during this trial by a man called Francois Ruffin.

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Speaker 14: He claims he's a victim in this case.

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Speaker 13: And RUFIN was at in between twenty thirteen and twenty

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Speaker 13: sixteen filming a documentary which went to be a big

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Speaker 13: success that was a critical of Arnau. And what Squarsini

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Speaker 13: and several others are accused of is of having carried

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Speaker 13: out some surveillance operation of RUFA as he was filming

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Speaker 13: this documentary. So Arnault, I suspect will be asked many

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Speaker 13: questions about, in fact, how much he knew about all

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Speaker 13: these operations, the mission to unmask the blackmailers and this

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Speaker 13: surveillance operation.

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Speaker 14: That's the key question. I think he'll be asked, how

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Speaker 14: much did you know?

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Speaker 4: Yeah? And what is a sort of a spoiling case,

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Speaker 4: isn't it.

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Speaker 1: LVMH is also under investigation as part of the case.

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Speaker 1: It has already settled the claims.

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Speaker 14: Though absolutely this happened.

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Speaker 13: In twenty twenty one, LVMH paid ten million, and it

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Speaker 13: was a settlement that didn't include any admission of guilt.

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Speaker 14: At the time, this same Frostvo Rufa was.

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Speaker 13: Very critical of this settlement and well, in the end,

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Speaker 13: it means that.

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Speaker 14: LVMH was not part of this trial.

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Speaker 13: And we have you know, we're going to have a

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Speaker 13: big moment tomorrow when Arlo testifies. It starts at nine

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Speaker 13: thirty am, and you know, I think all eyes are

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Speaker 13: going to be very much riveted on what he may

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Speaker 13: have to say. So far, he has claimed he has

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Speaker 13: known nothing about this extortion attempt, but the judge in

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Speaker 13: the case is somewhat dubious that might be possible. He

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Speaker 13: said that if Bernardo was indeed taken, you know, a

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Speaker 13: photo was taken over him with someone who wasn't his wife,

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Speaker 13: then surely he would have been the first notified to

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Speaker 13: avoid any other photos from being taken.

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Speaker 14: So we're all very curious to know what he might

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Speaker 14: have to say.

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Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 4: I'm Caroline Hepka.

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