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

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Speaker 1: Daybreaker podcast, available every morning on Apple, Spotify or wherever

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Speaker 1: you listen. It's Monday, the second of September in London.

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Speaker 1: I'm Caroline Hepkin and.

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Speaker 2: I'm Stephen Carroll. Coming up today. Far right and left

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Speaker 2: party surge in Germany's regional elections. As I'll have Schultz

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Speaker 2: coalition is punished.

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Speaker 1: Israel's largest labor group prepares for a nationwide strike in

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Speaker 1: a bid to push Benjamin Nettnyahoo to secure a hostage

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Speaker 1: release deal.

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Speaker 2: Plus a billionaire who's invested one hundred and thirty five

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Speaker 2: million dollars in the America's Cup sailing race bemoans a

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Speaker 2: lack of public interest.

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

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Speaker 2: A far right party has won a state election in

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Speaker 2: Germany for the first time since the Second World War.

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Speaker 2: The Alternative for Germany Party secured a clear victory in

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Speaker 2: Thuringia as populous parties on the extreme right and left

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Speaker 2: may big aims against Olaf Schaltz ruling coalition. Former MEP

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Speaker 2: from the Center Rights CDU party, Almar Brock says the

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Speaker 2: significance of the moment should not be underestimated.

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Speaker 3: I'm very concerned about that to have in Germany, especially

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Speaker 3: in the former GDR dictatorship Sprong non democratic parties Again

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Speaker 3: the question which should we have to consider?

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Speaker 2: Elmar Brock's comments reflect growing concerns among voters over the

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Speaker 2: country's economy and approach to immigration. The results deal another

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Speaker 2: blow to Schultz and highlight the risks his party faces

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Speaker 2: ahead of a federal election due later next year.

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Speaker 1: In France, Emanuel Macon will meet former Socialist Prime minister

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Speaker 1: Bernard Kasneuv today, as well as holding talks with conservative

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Speaker 1: politician Xavier bertand it comes as the French president prepares

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Speaker 1: to name the country's next prime minister. Macol could announce

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Speaker 1: the decision in the next few days, according to a

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Speaker 1: government official. Macron also plans to consult former president cidents

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Speaker 1: francois Lande and Nicola Sarkozi on the decision. French politics

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Speaker 1: has been in chaos since Macwell called snap elections almost

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Speaker 1: three months ago, in which no party won a majority

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Speaker 1: in the National Assembly.

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Speaker 2: Israel's largest union is posed for poised for a nationwide

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Speaker 2: strike today. The labor group wants to force the government

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Speaker 2: into a Gaza ceasefire and secure the release of hostages

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Speaker 2: held by Hamas. Yesterday, hundreds of thousands of Israelis demonstrated

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Speaker 2: in cities around the country after six hostages were found

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Speaker 2: dead in Gaza. Sharona Lifschitz's father Odad, is one of

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Speaker 2: those still missing. She blames Prime Minister Benjamin Nettan Yahoo

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Speaker 2: for the latest deaths.

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Speaker 4: I believe that he is an enemy of the people

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Speaker 4: of Israel. I believe that those six people could have

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Speaker 4: been with us. I believe all hostages could have been

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Speaker 4: with us now and they are not here because there

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Speaker 4: is a kind of dunce of death.

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Speaker 2: Both the protests and the planned strike reflect deepening anger

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Speaker 2: at Yahoo has been accused of putting conditions into potential

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Speaker 2: cease fire deals that Hamas will not agree to. About

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Speaker 2: two hundred and fifty people were abducted on October seventh

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Speaker 2: when Hamas stormed into southern Israel, killing one thousand, two

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Speaker 2: hundred people. More than forty thousand Palestinians have been killed

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Speaker 2: in the subsequent war in Gaza, according to the territory's

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Speaker 2: Health Ministry.

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Speaker 1: Now to all the news, inventories of key raw materials

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Speaker 1: are piling up in china the world's biggest commodities import

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Speaker 1: more evidence of weak economic activity. China's economic growth target

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Speaker 1: now looks increasingly out of reach. Bloomberg's min Min Low

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Speaker 1: explains that the property market remains a major drag.

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Speaker 5: Goldman Sex had written that so far year to date,

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Speaker 5: so far that revenue collected from Texas and lens sales

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Speaker 5: may not be able to meet the projected budget this year,

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Speaker 5: which could weigh on government spending. In really, government spending

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Speaker 5: this year is really one of the few leavers left

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Speaker 5: to boost the economy, given that private spending has really

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Speaker 5: been extremely let luster.

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Speaker 1: Our China correspond at mid mid Low speaking there, the

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Speaker 1: private kaishin manufacturing PMI released on Monday has flashed warning

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Speaker 1: signs despite climbing back into expansionary territory.

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Speaker 2: New UK wage data shows pay growth hitting its highest

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Speaker 2: level in twenty twenty four during the three months to July.

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Speaker 2: The figure some reed recruitment raised questions for Bank of

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Speaker 2: England officials, who hailed signs of cooling wage growth when

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Speaker 2: they cut rates last month. For Prime Minister kir Starmer,

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Speaker 2: the numbers highlight the challenge his government faces to end

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Speaker 2: staff shortages and bolster UK growth.

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Speaker 1: Well MP's return to Parliament today after the summer recess

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Speaker 1: and an eventful few weeks, the government will look to

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Speaker 1: move ahead now with its legislative agenda. Blombog Sophie Arundel reports.

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Speaker 6: In the five weeks since Parliament last met, the UK

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Speaker 6: has seen riots, strike threats and the Prime Minister warning

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Speaker 6: of painful spending decisions to come. That's plenty for MPs

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Speaker 6: to discuss as they returned to Westminster. Preparing the October

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Speaker 6: budget will be a key priority for the Labor government,

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Speaker 6: and on Wednesday Kirstamer will face Rishi Sunak for Prime

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Speaker 6: Minister's questions. As the Conservatives continue their search for a

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Speaker 6: new leader. There's lots to do in two weeks before

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Speaker 6: Parliament takes another break for the party conferences in London.

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Speaker 6: Sophie Arundel Bloomberg Radio.

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Speaker 2: In deal's news. RIA Group, part of Rupert Murdoch's Empire,

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Speaker 2: is considering a takeover offer for the UK property portal

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Speaker 2: Right Move, The Australian property listing provider said on Monday

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Speaker 2: it's considering a cash and share offer, a disclosure triggered

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Speaker 2: by media speculation, shares of RIA dropped as much as

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Speaker 2: four excuse me, dropped as much as eight percent in

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Speaker 2: Sydney on Monday, amid concerns that it may have to

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Speaker 2: issue stock to fund a deal. Under UK takeover rules,

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Speaker 2: Aria must announce a firm intention on whether to bid

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Speaker 2: by five pm on the thirtieth of September. In a moment,

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Speaker 2: will get you details of the election results from Germany

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Speaker 2: after a battering for ruling parties and state elections in

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Speaker 2: Saxony and Thuringia. But first, another story that caught her

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Speaker 2: eye this morning. Carol, and I don't know how much

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Speaker 2: this was the conversation that you were having over the weekend.

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Speaker 2: Did you know anyone that got away as tickets?

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Speaker 1: I don't, but it was absolutely everybody.

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Speaker 2: The news was. I don't think anything got done. I

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Speaker 2: think forty probably dropped massively in the UK and Saturday

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Speaker 2: because everyone spent apparently hours on ticket websites, notably ticket Master,

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Speaker 2: trying to get access to those prize tickets for the

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Speaker 2: seventeen dates for the UK and Ireland tour. When I

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Speaker 2: do have a few friends that got tickets really for

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Speaker 2: the gigs in Doublin.

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Speaker 1: I mean, this is the kind of I must say,

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Speaker 1: it's the sound of my university years, so yeah, it's

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Speaker 1: the Nolan. Liam Gallagh of course, actually had to put

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Speaker 1: out a statement saying that any tickets that were being

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Speaker 1: resold from these websites, tickets hous and so on, that

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Speaker 1: actually that they would try to kind of disallow those tickets.

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Speaker 1: I'm exactly sure how they would manage to do that,

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Speaker 1: but any tickets sold in breach of the terms and

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Speaker 1: conditions apparently will be canceled.

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Speaker 2: Yeah, I'm sure there plenty of our listeners this morning

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Speaker 2: have been frustrated they didn't get tickets to Oasis gigs,

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Speaker 2: So that's certainly something that was dominating the conversations over

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Speaker 2: the weekend. Let's bringing more details now on the results

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Speaker 2: of Germany's regional elections, which saw the first victory of

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Speaker 2: a far right party in a regional vote since the

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Speaker 2: Second World War. Our Germany correspondent Oliver Croke joins us

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Speaker 2: for more from Berlin this morning. Good morning, Ali. How

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Speaker 2: significant is this victory for the alternative for Germany in

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Speaker 2: the state of their India.

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Speaker 7: Yeah, listen, Stephen, it is very significant. It is the

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Speaker 7: first time the AfD has ever won a sort of

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Speaker 7: a majority, or it's not a full majority. But the

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Speaker 7: biggest party in the local parliament. They won thirty two

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Speaker 7: almost thirty three percent of the vote. They were trailed

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Speaker 7: by the CDU more than ten points, just about ten

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Speaker 7: points behind in that region. It's significant is it's their first,

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Speaker 7: but it's also the first sort of far right victory

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Speaker 7: in a German election like this since the Second World

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Speaker 7: War and the ascent of national socialism and Thuringia back then,

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Speaker 7: you know, in those days was also one of these

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Speaker 7: sort of first places for where the Nazis got real

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Speaker 7: political power. So from a sort of the context of

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Speaker 7: a sort of the German psychology, this is something that

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Speaker 7: is certainly very significant. It's something that people play close

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Speaker 7: attention to. It's also that the AfD chapters are also

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Speaker 7: all a bit different from one another, and both the

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Speaker 7: chapters in Saxony and in Thuringia where they have won,

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Speaker 7: they've been designated sort of extremist political groups by the

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Speaker 7: sort of domestic intelligence agency of Germany, and the leader

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Speaker 7: there has also been fined twice for using Nazi slogans

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Speaker 7: this year in speeches to supporters. So these are the

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Speaker 7: things that you know, people in Germany, particularly in mainstream politics,

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Speaker 7: really it resonates with them. They are a lot of

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Speaker 7: concerns about it, which is why you've seen so many

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Speaker 7: protests and counter protests in the months coming up to

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Speaker 7: this election. In Saxony you saw something slightly different, but

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Speaker 7: that is really sort of what we saw going forward.

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Speaker 7: The question is what will they be able to do

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Speaker 7: in terms of getting to power. There is a sort

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Speaker 7: of historical firewall where a lot of political parties will

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Speaker 7: not work with them in parliament, which will sort of

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Speaker 7: constrain them to a large extent. But again there is

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Speaker 7: sort of significance in the fact that they were able

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Speaker 7: to make such strong advances.

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Speaker 1: Okay, and so in also these two elections, the poor

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Speaker 1: performance of the three main parties that make up olof

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Speaker 1: Schultz's coalition is quite remarkable. What does those results mean

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Speaker 1: for them now?

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Speaker 7: I mean it is totally remarkable. If you look at

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Speaker 7: the SPD, which is obviously Schultz's party and the sort

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Speaker 7: of main party that's in this coalition governing right now,

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Speaker 7: they got six and seven and a half percent, which

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Speaker 7: when you think about it, is really very very poor.

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Speaker 7: This is one of the sort of main political pillars

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Speaker 7: within Germany. But you look at the other parties. It's

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Speaker 7: not much better. I mean, the FDP was knocked out

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Speaker 7: of both of the parliaments because they got fewer than

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Speaker 7: five percent of the votes, and that's what happens when

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Speaker 7: you get less than five percent. The Greens got knocked

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Speaker 7: out of one, so this is really a very bad

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Speaker 7: omen for the coalition, But it's not really a total

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Speaker 7: shock because these regions are sort of more prone to

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Speaker 7: voting for the extremes. We've seen it in the polling,

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Speaker 7: and this is a government that is just fundamentally very

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Speaker 7: unpopular in Germany at a time when there is a

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Speaker 7: great deal of economic anxiety about what is coming down

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Speaker 7: the pipeline for Germany, so of course they're sending their

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Speaker 7: referendum there. I think it really poses some interesting questions

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Speaker 7: about what this looks like in the federal election next

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Speaker 7: year and if Schultz is going to be able to

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Speaker 7: really front it for the SPD.

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Speaker 2: Because of course, the main rivals to Schultz in terms

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Speaker 2: of the federal election is the conservative CDU and CSU alliance.

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Speaker 2: And the CDU won in Saxony and came second in Throngia,

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Speaker 2: So does that set them up in a stronger position

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Speaker 2: than heading towards that.

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Speaker 7: Federal I think it does when you actually look at

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Speaker 7: the sort of historical polling in Germany over the last

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Speaker 7: few years, and you look at just kind of the

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Speaker 7: moment when the federal election was held. That was a

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Speaker 7: sort of a rare moment when the CDU had dipped

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Speaker 7: below the SPD and sort of got them into power.

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Speaker 7: But really they've maintained their lead to national level. You

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Speaker 7: look at the polling right now, the CDU has about

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Speaker 7: thirty one percent of the national voting, so they're in

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Speaker 7: a very good position to go into the election. But

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Speaker 7: the second party now is the AfD at eighteen percent.

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Speaker 7: So there's a lot of interesting things that will be

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Speaker 7: happening in the coming months in terms of seeing where

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Speaker 7: the coalitions are built and also who is going to

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Speaker 7: be the CDU candidate. We know that the head of

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Speaker 7: the CDU right now is as Mertz, but could it

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Speaker 7: also be Marcus Zuda, who's ahead of the CSU down

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Speaker 7: in Bavaria, And they say that they're going to put

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Speaker 7: their candidate forward after the Brandenburg election, which is at

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Speaker 7: the end of September. So we're waiting for that to

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Speaker 7: happen because really the federal election is the next thing

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Speaker 7: to watch for.

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Speaker 1: Yeah, absolutely, Ollie, thank you so much for being with

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Speaker 1: us this morning. Our Germany correspondent Oliver Krook.

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Speaker 2: Now Switzerland, Switzerland's richest man, has invested one hundred and

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Speaker 2: thirty five million dollars in a sailing race that some

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Speaker 2: people at least have never heard of. ERNESTO Bertarelli has

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Speaker 2: joined the ranks of billionaires backing teams in the America's Cup,

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Speaker 2: the final of which takes place next month in Barcelona.

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Speaker 2: Bloomberg Starnathan Browning has been writing about this, and he

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Speaker 2: joins us now for more. Johnny, good morning. First, for

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Speaker 2: those who might not know what what is the America's Cup.

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Speaker 8: Well, this is the thing actually, and a great fear

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Speaker 8: of Ernest Bertarelli that the people don't know that this

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Speaker 8: tournament is taking place. It's the oldest trophy in international sport.

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Speaker 8: It's over one hundred and seventy years old. It's a

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Speaker 8: match race between two nations or teams. And this time

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Speaker 8: round they are flying on effectively flying on boats that

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Speaker 8: glide above the water on hydrofoils. These boats are capable

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Speaker 8: of up to fifty knots of speed and when the

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Speaker 8: hull lifts above the water. They are effectively they're effectively

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Speaker 8: gliding on these foils.

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Speaker 1: Yeah, it's absolutely incredible to watch. Why has Arnessa Bertarelli

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Speaker 1: become involved in this.

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Speaker 8: Race, Well, he was the first European to actually ever

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Speaker 8: win this up in two thousand and three and then

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Speaker 8: defended the cup successfully in two thousand and seven, and

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Speaker 8: then he was in dispute effectively with Larry Ellison in

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Speaker 8: a effectively a dispute that ended all that went all

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Speaker 8: the way to court and Withdrew and after that he's he's, he's,

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Speaker 8: he sat out and sat out on the sidelines, and

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Speaker 8: then this time round he's he's said. One of the

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Speaker 8: things that was really attractive was the fact that he

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Speaker 8: could partner with Red Bull, the Formula one team, to

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Speaker 8: bring an entirely new approach to this team. And so

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Speaker 8: and so Alingi his Swiss team is working with Red Bull,

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Speaker 8: is working with the Formula one technicians. They're working on

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Speaker 8: the hydraulics, on the systems and the simulations in order

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Speaker 8: to get to get an.

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Speaker 2: Edge as main competitors.

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Speaker 8: Then Bella Billionaires. We have Jim Ratcliffe of Ineos, who

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Speaker 8: himself also is involved with the Formula one Formula one

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Speaker 8: team McClaren Mercedes, and then there is the Prada chairman Bertelli,

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Speaker 8: and then we have Doug de Vos, who's a scion

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Speaker 8: of the Amwaycourt family in the US. Then there is

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Speaker 8: the French team and the defenders New Zealand, the team

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Speaker 8: that won the last race, and they get to organize

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Speaker 8: the race. They get to they get to make the rules,

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Speaker 8: they get to the final and they they set, they

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Speaker 8: set the terms of the race.

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Speaker 1: How have the early stages of the competition gone.

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Speaker 8: Not so great for Bertarelli? He is four kneeled down

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Speaker 8: in the round robin series, which is assimi as if

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Speaker 8: races where everybody races against each other and the team

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Speaker 8: to beat at the moment is the Italian team led

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Speaker 8: by the Telly.

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Speaker 2: So a lot of billionaire's money, as he outlined, involved

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Speaker 2: in this right already. What about the commercial side of it?

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Speaker 2: What's the kind of commercial future or ambitions for this competition?

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Speaker 8: So Bertarelli has huge ambitions. He talks of He talks

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Speaker 8: of Drive to Survive, which was this transformational Netflix series

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Speaker 8: that completely hooked American audiences on Formula One, and says,

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Speaker 8: why can't we have that for sailing. Well, there are

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Speaker 8: TV cameras on the basis in Barcelona this time round,

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Speaker 8: and he also talks about pre regattas to stir up interest.

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Speaker 8: He has actually, I think an ambition for more teams

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Speaker 8: to take place in order basically to let the rest

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Speaker 8: of the world know that this is happening. He sees

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Speaker 8: a scenario where we have a summer that has the

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Speaker 8: Wimbledon tennis, it has the Olympic Games, and he said, well,

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Speaker 8: why not the America's Cup Tea.

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