WEBVTT - Boeing's Loose Bolts, Red Sea Warning & Barclays Headcount Drops

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<v Speaker 1>Good morning. It's Tuesday, the ninth of January here in London.

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<v Speaker 1>This is the Bloomberg Daybreak you at podcast. I'm Caroline Hepkit.

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<v Speaker 2>And I'm Stephen Carroll coming up today. In another blow

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<v Speaker 2>to Boeing, United finds loose bolts on multiple seven three seven.

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<v Speaker 1>Max jets, as Anthony Blinkn warns of consequences for continued

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<v Speaker 1>attacks in the Red Sea. We have a special report

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<v Speaker 1>on the sailors risking their lives to make the crossing.

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<v Speaker 2>Plus picking up the tab. Taxpayers face a ten billion

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<v Speaker 2>pounds bill for student loans, including those that have already

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<v Speaker 2>been repaid.

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<v Speaker 1>Let's start with a round up of our top stories.

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<v Speaker 2>United Airlines says it has found loose bolts and multiple

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<v Speaker 2>Boeing seven three seven Max jets during inspections of the planes.

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<v Speaker 2>The discovery follows a mid air blowout on an Alaska

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<v Speaker 2>Airlines flight, which prompted the Federal Aviation Administration to ground

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<v Speaker 2>more than one hundred and seventy jets. Bloomberg Intelligence's senior

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<v Speaker 2>aerospace analyst, George Ferguson has more.

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<v Speaker 3>When you look of the way the plug, the sort

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<v Speaker 3>of that the shots later on and you see where

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<v Speaker 3>the plug was, and how clean the plug seemed to

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<v Speaker 3>have left the airplane. It does seem to indicate that

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<v Speaker 3>either fasteners failed or someone didn't apply the fasteners correctly,

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<v Speaker 3>and I think the United News kind of confirms that

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<v Speaker 3>maybe somebody on the manufacturing line didn't understand the right

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<v Speaker 3>procedure for applying this plug.

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<v Speaker 2>Thats George Ferguson from Bloomberg Intelligence. The setback comes after

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<v Speaker 2>a series of manufacturing and quality lapses at Boeing. It

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<v Speaker 2>Shares suffers their biggest decline in more than a year

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<v Speaker 2>on the news, dropping by eight percent.

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<v Speaker 1>In New York, America's top diplomat says that Huthy militants

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<v Speaker 1>will face consequences if they continue to attack ships in

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<v Speaker 1>the Red Sea. Anthony Blincoln's warning comes as the US

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<v Speaker 1>and its allies contemplate strikes on the Iran backed group

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<v Speaker 1>in Yemen. He told reporters that the principle of freedom

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<v Speaker 1>of navigation is at stake.

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<v Speaker 4>We've got forty countries come together to make clear the

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<v Speaker 4>one who these are doing has to stop, and we

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<v Speaker 4>have other countries that have made clear that if it continues, there.

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<v Speaker 5>Have to be consequences.

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<v Speaker 4>So our strong view, our strong preference is that the

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<v Speaker 4>Houthis get the message, but they're receiving from countries around

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<v Speaker 4>the world that this needs to stop, and that's what.

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<v Speaker 5>We're focused on.

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<v Speaker 1>Blinken meets with Israel's leader Benjamin Netanyahu late today. He

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<v Speaker 1>is hoping to contain the conflict in Gaza and potentially

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<v Speaker 1>broker a post war government for the Strip.

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<v Speaker 2>Francis Prime Minister Elizabeth Bonon has resigned, prompting a government

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<v Speaker 2>reshuffle expected to be unveiled today. Bonne said that President

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<v Speaker 2>Emmanuel Macran told her he wanted to replace her. The

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<v Speaker 2>French leaders seeking to refresh his government agenda head of

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<v Speaker 2>European elections in June. French media reporting that Education Minister

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<v Speaker 2>Gabrielle A Dale is the favorite to replace Bonn as

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<v Speaker 2>the next prime minister.

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<v Speaker 1>Samsung's profits have fallen by thirty five percent, amits weak

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<v Speaker 1>consumer demand in the tech industry. Company six straight quarter

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<v Speaker 1>of declining operating profit, which missed estimates by about twenty

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<v Speaker 1>four percent. Tom Kang, who is Research direct at Counterpoint

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<v Speaker 1>Technology Market Research, says that the results indicate that the

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<v Speaker 1>sector's revival might take longer than previously expected.

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<v Speaker 6>The numbers are a bit disappointing, but they are rebounding,

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<v Speaker 6>so I think this shows that the rebound is going

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<v Speaker 6>to be if it's slower than we all thought. So

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<v Speaker 6>the semiconductor market has been starting to recover since the

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<v Speaker 6>third quarter last year. Prices were rising, but it looks

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<v Speaker 6>like the pricing the prices are not rising that fast

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<v Speaker 6>and the demand from certain sectors are not that strong.

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<v Speaker 1>Kang's comments come after Samsung executives predicted in October twenty

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<v Speaker 1>twenty three that the one hundred and sixty billion dollar

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<v Speaker 1>memory market would bounce back gradually this year, driven by

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<v Speaker 1>a boom in AI development. Investors will want to hear

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<v Speaker 1>about Samsung's long term investment plans when it releases full

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<v Speaker 1>results on the thirty first of January.

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<v Speaker 2>Barkley has let go approximately five thousand staff last year.

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<v Speaker 2>The move is the most visible sign yet of cost

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<v Speaker 2>cutting at the lender. Bloomberg's Teawa aut of Bio has

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<v Speaker 2>the details.

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<v Speaker 7>Barkley has cut about six percent of its global headcount

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<v Speaker 7>last year during what was described as its quote ongoing

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<v Speaker 7>efficiency program. According to a company statement, the majority of

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<v Speaker 7>roles affected were in support functions, reflecting increased automation capacity.

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<v Speaker 7>The Bank's stock lagged behind piers in twenty twenty three

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<v Speaker 7>and faces slowing tailwinds from higher interest rates in the

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<v Speaker 7>UK this year. Despite the cuts, Barkley says it will

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<v Speaker 7>continue hiring in some business areas in London. To you

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<v Speaker 7>Are added Bio Bloomberg Radio.

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<v Speaker 1>The UK Treasury is facing a yearly ten billion pound

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<v Speaker 1>hit due to its student loan scheme. It's a cost

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<v Speaker 1>that the Institute for Fiscal Studies says is not on

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<v Speaker 1>the books. Botomberg's James Wilcock explains.

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<v Speaker 8>The think tank says the government will lose an average

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<v Speaker 8>of fifteen thousand pounds per student this year. That's because

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<v Speaker 8>the price of financing new government borrowing is more than

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<v Speaker 8>three times higher what it was two years ago, and

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<v Speaker 8>will outpay students inflation tracking interest, the IFS say the

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<v Speaker 8>spread is not one the Office of National Statistics tracks,

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<v Speaker 8>and is set across the government ten billion pounds annually,

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<v Speaker 8>right at a moment when Chancellor Jeremy Hunt is hoping

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<v Speaker 8>for fiscal headroom in London. James Walcock Blundergradio.

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<v Speaker 2>And UK Christmas shopping sales fail to deliver a festive

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<v Speaker 2>boost for retailers. According to the latest data, the British

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<v Speaker 2>Retel Consort Team and KPMG say that total sales grew

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<v Speaker 2>by just one point seven percent in December, compared to

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<v Speaker 2>almost seven percent growth a year earlier. The difficult trading

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<v Speaker 2>environment for retailers is expected to continue this year as

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<v Speaker 2>sharpers see little respites from higher living costs. Ongoing week

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<v Speaker 2>data may also stoke concerns that the UK economy could

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<v Speaker 2>tip into recession and the possibility of rate cuts by

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<v Speaker 2>the Bank of England. Now, in a moment, we'll bring

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<v Speaker 2>you some first hand reporting from those sailing the world's

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<v Speaker 2>most dangerous shipping lane. Bluebrig's Aaron Clark's going to join

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<v Speaker 2>us for hot piece about the perils for seafarers braving

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<v Speaker 2>the Red Sea and sewers Canal as those attacks by

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<v Speaker 2>Huthy militants have taken place over the past couple of months.

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<v Speaker 2>But on story that cotterrye this morning, Caroline.

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<v Speaker 1>Yeah, do you buy branded sports where gear? I should

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<v Speaker 1>ask should have asked this to Leanne Gerns of great

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<v Speaker 1>who's in the Middle East of longtime listeners keen sports familiar?

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<v Speaker 7>Right?

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<v Speaker 1>Yes? Indeed, I don't know whether you you do. Maybe

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<v Speaker 1>you were influenced if you did by of course that.

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<v Speaker 2>I'm very susceptible to influencing.

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<v Speaker 1>Get Tiger Woods. Twenty seven years, Tiger Woods and Nike

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<v Speaker 1>have had this iconic partnership, partnership worth six hundred and

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<v Speaker 1>sixty million dollars. Now, the golf legend that was announced

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<v Speaker 1>a split, all very friendly, wishing each other well for

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<v Speaker 1>the future and so. But the relationship going back to

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<v Speaker 1>nineteen ninety six, really taking golf to new heights.

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<v Speaker 2>Yeah, hard to imagine how who Tiger Woods was in

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<v Speaker 2>nineteen ninety six, I mean comparatively to the global name

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<v Speaker 2>that he is now.

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<v Speaker 1>Yeah, absolutely, fifteen major titles and obviously still playing. But yes,

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<v Speaker 1>I think this the idea of whether this kind of

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<v Speaker 1>partnership would continue has been in doubt actually for some

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<v Speaker 1>months now, the splits that have come, so there's still

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<v Speaker 1>lots of question marks there about what Tiger Woods might do.

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<v Speaker 1>He does have his own clothing line apparently, not that

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<v Speaker 1>I've ever seen it, but you know, the Nike sworsh

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<v Speaker 1>I think he many revolutionized, you know, sports icons, and.

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<v Speaker 2>I mean he was signed up tonight before Lebron James t.

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<v Speaker 2>I didn't realize I would have sameed that that relationship

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<v Speaker 2>was back much longer anyway. Yeah, fascinating news in the

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<v Speaker 2>words of sports sponsorship as well.

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<v Speaker 1>Now, let's talk about the latest from the Middle East. Now,

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<v Speaker 1>the U S Secretary of State Anthony Blincoln is in

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<v Speaker 1>Israel and meeting with the Prime minist of Benjamin Netanya,

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<v Speaker 1>who this is Israel's longest serving leader, is also facing

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<v Speaker 1>increasing questions about his leadership after the October seventh attack

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<v Speaker 1>and the ensuing war in Gaza. Let's bring in Israel

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<v Speaker 1>Bureau Chief Ethan Bonnet now for more on this topic.

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<v Speaker 1>Good morning, Ethan. First of all, what is Anthony Blincoln

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<v Speaker 1>hoping to achieve on this trip? Now? I believe his

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<v Speaker 1>fourth has the tone shifted.

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<v Speaker 9>I'm not sure how much the toner shifted, but certainly

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<v Speaker 9>Lincoln's goal here has been to urge the Israelis to

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<v Speaker 9>move from a more robust form of warfare to a

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<v Speaker 9>more targeted one, and the Israelis have said that's what

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<v Speaker 9>they're doing at the urging of the United States. So

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<v Speaker 9>partly it's to kind of button that down and make

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<v Speaker 9>sure the Israelis say they're pulling five brigades out in

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<v Speaker 9>the coming days and weeks.

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<v Speaker 5>So that's part of what they want.

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<v Speaker 9>And the goal here is to reduce civilian casualties and

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<v Speaker 9>reduce the risk of starvation and disease spreading and God

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<v Speaker 9>and to start thinking in some concrete terms about the

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<v Speaker 9>so called day after how Gaza is going to be

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<v Speaker 9>run once Israel ends its military efforts to take out Hamas.

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<v Speaker 5>So that's all of that.

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<v Speaker 9>Don't forget that Lincoln arrived in Israel from Saudi Arabia

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<v Speaker 9>and the Emirates, and he comes with a very specific message,

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<v Speaker 9>which is that the Golf leaders are eager and willing

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<v Speaker 9>to help rebuild Gaza, but only in the context of

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<v Speaker 9>the agreement for a Palestinian state. The Israelis are unlikely

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<v Speaker 9>to be willing to say those words at the moment,

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<v Speaker 9>so we'll have to see where it goes.

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<v Speaker 2>What about Benjamin Etniau and all of this as well,

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<v Speaker 2>How has the war with Hamas changed his leadership?

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<v Speaker 5>Well, first of all, it has deeply threatened it.

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<v Speaker 9>I mean, he had sold himself and he'd his entire

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<v Speaker 9>image been as mister Security, a guy who has presided

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<v Speaker 9>over the longest sort of moment of peace and prosperity

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<v Speaker 9>in Israel from around two thousand and six to October seventh,

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<v Speaker 9>a few skirmishes, but fundamentally a great increase in GDP percapit,

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<v Speaker 9>a huge increase in the economy and international investment in Israel,

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<v Speaker 9>and in a sense that the place was safe and secure.

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<v Speaker 9>That's all over, and his poll numbers are way down.

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<v Speaker 5>In addition, of course, you know, he's been.

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<v Speaker 9>Fighting charges of corruption, fraud, bribery.

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<v Speaker 5>So he's got that going.

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<v Speaker 9>But there have been basically and then there was this

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<v Speaker 9>attempt along with his far right partners and government to

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<v Speaker 9>remake the judiciary, weaken the judiciary, which upset people and

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<v Speaker 9>produced weekly demonstrations in the country until October seventh.

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<v Speaker 5>So there was a lot going on to begin with.

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<v Speaker 5>And his numbers are down.

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<v Speaker 9>He is not the most popular leader in Israel right now,

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<v Speaker 9>Benny Gonsay is. But the system is that he doesn't

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<v Speaker 9>have to call an election and he may well not.

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<v Speaker 1>So in terms of the pressure then that he might

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<v Speaker 1>be under. From Anthony Blinkin, how much is Netnyahu's fate

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<v Speaker 1>tied with what happens in Gaza? I mean, might he

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<v Speaker 1>be forced out before the end of the war. I

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<v Speaker 1>mean these Raelis are talking about many, many months of

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<v Speaker 1>war and conflict.

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<v Speaker 5>They are.

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<v Speaker 9>The problem is what does it mean to force them out?

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<v Speaker 9>There is no real legal system to force them out.

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<v Speaker 9>He has a sixty four member a Kinesset majority out

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<v Speaker 9>of one hundred and twenty, and as long as he

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<v Speaker 9>holds his coalition together, there is no way to drive

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<v Speaker 9>him from power unless he were to be convicted, and

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<v Speaker 9>that's not going.

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<v Speaker 5>To happen quickly enough for that to happen.

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<v Speaker 9>So the idea would be that there's this emergency cabinet

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<v Speaker 9>war cabinet, which includes members of the opposition.

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<v Speaker 5>If this war shifts into a more.

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<v Speaker 9>Low level operation and they decide there's no longer a

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<v Speaker 9>need for an emergency cabinet, then we're back to the

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<v Speaker 9>old government and you know, they'll probably be weekly demonstrations

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<v Speaker 9>again calling for him to resign, and people are very

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<v Speaker 9>angry and eager for the remaining hundred plus hostages to

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<v Speaker 9>be returned. But you know, there is no specific way

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<v Speaker 9>of making him leave, and what we know about him

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<v Speaker 9>suggests he's unlikely to go on his own.

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<v Speaker 2>Okay, well, a story for us to honoror then Israel

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<v Speaker 2>Buia Chief Ethan Browner, thank you very much for joining us.

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<v Speaker 5>With that.

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<v Speaker 1>We've been reporting in recent weeks though on the attacks

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<v Speaker 1>on cargo ships traveling through the Red Sea. The strikes

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<v Speaker 1>by militant group in Yemen have endangered civilian seafares, raise

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<v Speaker 1>costs along a crucial global trade artery, and of course

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<v Speaker 1>it's related to the war in Gaza, to attentions in

0:12:45.480 --> 0:12:48.360
<v Speaker 1>the Middle East. Bloomberg's Aaron Clark has been speaking though

0:12:48.360 --> 0:12:51.480
<v Speaker 1>to some of those aboard these ships, and he joins

0:12:51.559 --> 0:12:53.840
<v Speaker 1>us now for more Alan, good morning, Thank you for

0:12:53.880 --> 0:12:58.040
<v Speaker 1>being with us. Just remind us why are Iran backed

0:12:58.080 --> 0:13:01.800
<v Speaker 1>Houthi militants based in Yemen attacking commercial vessels in the

0:13:01.840 --> 0:13:02.400
<v Speaker 1>Red Sea.

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<v Speaker 10>Yeah, the Huthi militants and you men, they're attacking ships

0:13:08.800 --> 0:13:12.040
<v Speaker 10>connected to Israel, or they've said they're attacking ships connected

0:13:12.080 --> 0:13:14.840
<v Speaker 10>to Israel in order to break the siege on Gaza

0:13:14.840 --> 0:13:19.160
<v Speaker 10>and stop Israeli aggression. You know, they're they're demanding people

0:13:19.200 --> 0:13:21.600
<v Speaker 10>in Gaza get access to things like food and medicine.

0:13:22.240 --> 0:13:24.559
<v Speaker 10>Some of the initial attacks were on vessels that appeared

0:13:24.600 --> 0:13:28.360
<v Speaker 10>to have a link to you know, Israel or Israeli ownership.

0:13:28.440 --> 0:13:32.240
<v Speaker 10>Those connections have begun to look a lot more tenuous

0:13:32.440 --> 0:13:35.040
<v Speaker 10>now and just in terms of the numbers. You know,

0:13:35.080 --> 0:13:37.400
<v Speaker 10>the US Central Command have said that there have been

0:13:37.440 --> 0:13:40.959
<v Speaker 10>twenty four at least twenty four attacks between November nineteenth

0:13:41.040 --> 0:13:45.280
<v Speaker 10>and January two. And there's still, you know, a vessel

0:13:45.360 --> 0:13:47.880
<v Speaker 10>that was hijacked and remains off the coast of you men,

0:13:47.960 --> 0:13:52.160
<v Speaker 10>there's a twenty five member crew that's that's effectively hostage

0:13:52.240 --> 0:13:52.680
<v Speaker 10>right now.

0:13:54.000 --> 0:13:56.200
<v Speaker 2>And you spoke to sephars whose ships have been attacked

0:13:56.240 --> 0:13:59.120
<v Speaker 2>by by drones? Can you describe what they experienced?

0:14:00.960 --> 0:14:04.360
<v Speaker 10>Yeah, I mean, you know, it's it's pretty traumatic. One

0:14:04.400 --> 0:14:07.760
<v Speaker 10>seafair I spoke with he described how, you know, he

0:14:07.920 --> 0:14:11.400
<v Speaker 10>was on the bridge helping navigate the ship through the

0:14:11.440 --> 0:14:14.720
<v Speaker 10>Red Sea. It was around midday, most of the most

0:14:14.760 --> 0:14:17.200
<v Speaker 10>of the crew was was having launch in the dining

0:14:17.240 --> 0:14:21.880
<v Speaker 10>hall and basically, you know, there there was a loud

0:14:22.000 --> 0:14:25.680
<v Speaker 10>bang and it was very clear that that there had

0:14:25.720 --> 0:14:29.520
<v Speaker 10>been some sort of an attack. It didn't actually directly

0:14:29.560 --> 0:14:31.880
<v Speaker 10>strike the ship. They believe it was a drone. He

0:14:31.920 --> 0:14:34.000
<v Speaker 10>said it was very windy that day and he thinks

0:14:34.000 --> 0:14:37.360
<v Speaker 10>the wind actually probably saved the ship from a direct strike,

0:14:37.840 --> 0:14:41.760
<v Speaker 10>which obviously could have been catastrophic. But anyway, there was

0:14:41.800 --> 0:14:45.000
<v Speaker 10>a huge bang. The captain quickly ran up from the

0:14:45.040 --> 0:14:47.360
<v Speaker 10>dining room and got on the public address system and

0:14:47.480 --> 0:14:51.000
<v Speaker 10>ordered most of the crew into the ship's citadel. This

0:14:51.160 --> 0:14:53.560
<v Speaker 10>is basically a safe room where you can sort of

0:14:53.600 --> 0:14:57.320
<v Speaker 10>barricade in the event the ship is being attacked by

0:14:57.440 --> 0:15:00.800
<v Speaker 10>by pirates. But the people were maining on the bridge

0:15:00.800 --> 0:15:04.400
<v Speaker 10>sent out distress messages. Very quickly. A US warship arrived

0:15:06.040 --> 0:15:08.000
<v Speaker 10>and and sort of checked them for damage, and they

0:15:08.040 --> 0:15:10.080
<v Speaker 10>continued through the strait and were able to make it

0:15:10.120 --> 0:15:13.640
<v Speaker 10>out safely. But you know, clearly it can be traumatic,

0:15:13.680 --> 0:15:15.760
<v Speaker 10>and you know the seafair I spoke to him and

0:15:15.760 --> 0:15:18.400
<v Speaker 10>he said that some some other seafares broke down in

0:15:18.480 --> 0:15:22.080
<v Speaker 10>tears because it was you know, they could have they

0:15:22.080 --> 0:15:25.120
<v Speaker 10>could have they could have died. So it's it's it's

0:15:25.320 --> 0:15:28.280
<v Speaker 10>can be quite traumatic and dangerous for these folks who

0:15:28.280 --> 0:15:29.520
<v Speaker 10>are civilian seafarers.

0:15:31.160 --> 0:15:33.880
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