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

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

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Speaker 1: you listen. It's Tuesday, the twenty third of April in London.

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Speaker 1: I'm Caroline Hipki.

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

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Speaker 3: After a long fight and much controversy, Rishi Sinaks Rwanda

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Speaker 3: deportation plan is passed through Parliament.

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Speaker 1: Goldman Sachs moves a top deal maker from London to

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Speaker 1: Paris in the latest relocation away from the city of London.

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Speaker 3: Plus fighting to pull Gucci off the discount rack, some

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Speaker 3: analysts and investors question whether Carring CEO Francois Henri Pino

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Speaker 3: is the right man to overhaul the fashion house.

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

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Speaker 3: After months of delays, the UK's controversial Rwanda deportation bill

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Speaker 3: will now become law. Following weeks of legislative back and

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Speaker 3: forth between MP's and the House of Lords. The Upper

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Speaker 3: House backed down last night, allowing Rishisunak's plan to say

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Speaker 3: it send failed asylum seekers to the African country to

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Speaker 3: pass through Parliament. The government is relying on the policy

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Speaker 3: to deter migrants from making the perilous journey in small

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Speaker 3: boats across the English Channel. Rishisunak says plans are well underway.

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Speaker 4: We've put an airfield on standby, booked commercial charter planes

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Speaker 4: for specific slots, and we have five hundred highly trained

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Speaker 4: individuals ready to escort a legal migrants all the way

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Speaker 4: to Rwanda, with three hundred more trained in the coming weeks.

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Speaker 3: Sunak's advisors see the policy as a potential electoral game changer,

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Speaker 3: showing he's delivering on a promise to stop the boats.

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Speaker 3: The number of migrants reaching the UK by boat hit

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Speaker 3: a record in the first three months of this year.

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Speaker 1: Meanwhile, the UK is preparing its biggest military aid package

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Speaker 1: for Ukraine since Russia's invasion. The Prime Minister says that

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Speaker 1: long range missiles, boats and armored vehicles totaling five hundred

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Speaker 1: million pounds will be sent to Kiev the news as

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Speaker 1: President Biden promised his administration would move quickly to distribute

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Speaker 1: more weapons after the Senate votes on an aid package

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Speaker 1: this week. Retired US Army briggerdier General Mark Kimmitt says

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Speaker 1: the assistance will help slow Russia's progress.

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Speaker 5: It will allow Ukraine to defend the front lines for

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Speaker 5: this fighting season. I don't think we're at the point

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Speaker 5: where this aid alone will allow them to conduct a

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Speaker 5: counter offensive. And I think that we've got to realize

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Speaker 5: that Russia is making gains and the most important thing

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Speaker 5: is to stop those gains, to reinforce the lines.

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Speaker 1: Mark Kimmitt, speaking there, Ukrainian President Volodomi Zelenski says the

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Speaker 1: package will really strengthen the armed forces of Ukraine.

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Speaker 3: A key Goldman Sachs executive has moved from London to Paris,

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Speaker 3: and the latest sign of finances Brexit exodus. The head

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Speaker 3: of deal making for EMEA financial Institutions, Derek Levens, has

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Speaker 3: told Bloomberg he intends to double the size of the

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Speaker 3: team in France.

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Speaker 2: Chris Pett has the story.

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Speaker 6: Financial deal making is heating up in Europe and the

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Speaker 6: UK is not necessarily invited. Firms have excess cash and

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Speaker 6: want to deploy it across the continent, making Paris a

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Speaker 6: key place to drive m and a activity. That's what

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Speaker 6: Goldman's Dirk Levines told Bloomberg when we asked about why

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Speaker 6: he'd moved there from London. He added, there is a

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Speaker 6: Brexit component, but it's not the main driver. It's the

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Speaker 6: latest exit of a senior investment banker from the city

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Speaker 6: in the wake of Britain's decision to leave the European Union.

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Speaker 6: In London, Chris Pitt Bloomberg Radio the foot.

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Speaker 1: To one hundred clothes at are record high for the

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Speaker 1: first time in more than a year. On Monday, the

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Speaker 1: indexes Mining an energy focus gave it a boost in

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Speaker 1: the face of geopolitical uncertainty and OPEC plus supply limits.

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Speaker 1: It's up four percent a year to date, with Shell

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Speaker 1: and bp A loan accounting for almost half of those gains.

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Speaker 1: The rise will come as a relief to the London

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Speaker 1: Stock Exchange after the CEO of Shell Whales Swan told

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Speaker 1: Bloomberg that investors undervalue the business where it is if

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Speaker 1: the valuation gap with the United States doesn't close, though,

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Speaker 1: Swan says the oil major would have to look at

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Speaker 1: all options for its listing.

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Speaker 3: As tensions with Iran ease, Israel is returning its focus

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Speaker 3: to Rafa and southern Gaza An area. Israeli Prime Minister

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Speaker 3: Benjaminettan Yaho has described as the last remaining stronghold of

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Speaker 3: hamas more than one million people have been sheltering in

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Speaker 3: the small city after fleeing their homes since the start

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Speaker 3: of Israel's offensive in October. Speaking on Sunday, Netanyaho indicated

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Speaker 3: he's about to send troops into Raffa.

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Speaker 7: We will land additional and painful blows on it, and

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Speaker 7: it will happen soon.

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Speaker 2: Mimkovin.

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Speaker 7: In the coming days, we will increase the military and

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Speaker 7: political pressure on Hamas because this is the only way

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Speaker 7: to free our hostages and achieve of victory.

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Speaker 3: Netaniahu's comments were followed by airstrikes on Rafa overnight into Monday.

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Speaker 3: Israeli military officials estimate that up to eight thousand TAMAS

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Speaker 3: fighters are holed up in the city. The US and

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Speaker 3: other allies have strongly urged Israel not to invade Rafa

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Speaker 3: amid fears that it would likely worsen the humanitarian crisis

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Speaker 3: in Gaza.

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Speaker 1: Pro Palestinian protests are spreading across some of America's most

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Speaker 1: prestigious universities, including Harvard, MIT, and Yale. It comes in

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Speaker 1: the wake of a decision by Columbia University to call

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Speaker 1: in the police to arrest hundreds of students for trespassing.

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Speaker 1: The move was intended to clear pro Palestinian demonstrators who

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Speaker 1: want the school to exit all investments that benefit Israel's government,

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Speaker 1: but the crackdown appears to have had the opposite effect.

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Speaker 1: Speaking yesterday, President Biden also weighed in on the protests.

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Speaker 2: Protest that wife shut up to deal with that.

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Speaker 5: I also condemn those who don't understand what's going now

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Speaker 5: with a panel schellus.

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Speaker 1: Joe Biden's reaction there. Columbia has now moved its classes online,

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Speaker 1: while other universities have got tough with demonstrators. At Yale,

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Speaker 1: police arrested sixty people, including forty seven students, early on Monday,

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Speaker 1: and Harvard restricted access to parts of its campus this week. Now,

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Speaker 1: in a moment, we'll bring you more on the vote

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Speaker 1: in the UK Parliament to approve plans to deport failed

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Speaker 1: asylum seekers to Rwanda. And also we'll look at why

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Speaker 1: the luxury giant Curring is facing challenges for its main brand, Gucci,

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Speaker 1: and what the way forward and might be. But another

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Speaker 1: story called Hi this morning, Actually you you prodded me

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Speaker 1: and said that you thought this was a really good one,

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Speaker 1: talking about, you know, summer holidays. Our opinion columnist Tyler Cohen,

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Speaker 1: writing about the ongoing dilemma about over tourism. I mean

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Speaker 1: this is a familiar one for us in Europe.

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Speaker 2: Yeah, it certainly is.

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Speaker 3: And so Tyler was sparked to write about this by

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Speaker 3: the fact that our authoritism in Barcelona have gotten Apple

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Speaker 3: and Google mapps to take a bus route off their

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Speaker 3: apps to basically mean that tourists won't know it's there

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Speaker 3: and thus won't overcrowd a route that locals use as well. Now,

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Speaker 3: he says that oftentimes in the arguments you hear much

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Speaker 3: louder from those cities that want to try and reduce

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Speaker 3: over tourism, and he's putting the tourist case forward, and

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Speaker 3: he's essentially saying, make them pay for it, make the dilemma.

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Speaker 2: That you should do something like.

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Speaker 3: He uses the example of the price the higher prices

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Speaker 3: for bullet trains in Japan for tourists.

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Speaker 2: He says that's the way to do it.

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Speaker 3: Essentially, when a tourist experience costs more, tourists themselves can

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Speaker 3: decide whether or not they think it's working.

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Speaker 5: Yeah.

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Speaker 1: The bus route, of course, is one of the most

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Speaker 1: fabulous in Barcelona, and it goes to Anthony Gaalavi's Park

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Speaker 1: in Barcelona. So I think it's in some ways it's

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Speaker 1: going to make the tourists walk further. I have an

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Speaker 1: issue with making all tourists pay more to see those

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Speaker 1: things which are kind of global heritage sites. But I

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Speaker 1: do get that Cohen says, you know, if you're up

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Speaker 1: the price, then you reduce the tourism, and it also

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Speaker 1: benefits the locals if you reuse that money, let's say,

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Speaker 1: to build affordable housing, et cetera in your city.

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Speaker 3: Exactly, And that's sort of part of his argument. He

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Speaker 3: essentially says, comes to the conclusion that actually having too

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Speaker 3: many tourists is not as big a problem as having

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Speaker 3: too few for a lot of places as well. Anyway,

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Speaker 3: worth your time to read on the turn of this morning,

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Speaker 3: and of course I'm Bloomberg doc Ham as well.

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Speaker 1: Okay, let's get to then RICHI soon acts controversial deportation

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Speaker 1: bill to send failed asylum seekers to Africa. Well, it

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Speaker 1: is becoming law after the House of Laws dropped its

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Speaker 1: opposition to the government's plan that was first announced two

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Speaker 1: years ago. The Prime Minister said in a news conference

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Speaker 1: on Monday that the first flights would take off in

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Speaker 1: ten to twelve weeks. Joining us now to discuss our

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Speaker 1: UK Politics reporter James Walcott, good morning. Firstly, just what

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Speaker 1: happened last night? It was set to be this sort

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Speaker 1: of huge battle between the Lords and the Commons.

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Speaker 2: I mean, Karen, it was.

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Speaker 8: I mean you say they dropped their opposition and is

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Speaker 8: technically correct, but I mean the better way to put

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Speaker 8: this is strong arm the lords into accepting this. I mean,

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Speaker 8: not to take you back to the nineteen hundreds. In

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Speaker 8: the Parliament Act, the Lords effectively say our job is

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Speaker 8: to critique. We can't block forever a bill and the

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Speaker 8: Government basically said we're just going to keep passing this

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Speaker 8: until you will go home. And they went back and

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Speaker 8: forth five times. The heart of the Lord's objection is

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Speaker 8: how do you independently and in future as sure that

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Speaker 8: Rwanda is safe? Because the bill basically says Randa is safe.

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Speaker 8: That makes the Supreme Court so like ruling last year

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Speaker 8: that Randa was not safe invalid and therefore flights can

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Speaker 8: start straight away. And the Lords went, but how are

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Speaker 8: you showing that and how will you show.

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Speaker 2: That in future? Now?

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Speaker 8: I want to read from the person who was putting

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Speaker 8: that to the concerned part who was leading that amendment,

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Speaker 8: Lord David Anderson, who was a cross bench independent peer.

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Speaker 8: So at the end of this he said, the purpose

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Speaker 8: of ping pong, where this goes back and forth between

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Speaker 8: the chambers, is to persuade the government through force of arguments,

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Speaker 8: to come to the table and compromise. They have refused

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Speaker 8: to do so. So they did back down, they did

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Speaker 8: drop the opposition, but basically they did that because Parliament

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Speaker 8: convention states they can't hold up an elected chamber, not

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Speaker 8: because their objections have been yet dealt with.

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Speaker 2: James.

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Speaker 3: Why has this become such an important issue for the

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Speaker 3: Prime Minister?

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Speaker 8: I think three answers Stephen. One is the net migration

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Speaker 8: numbers from twenty twenty two at a record of seven

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Speaker 8: hundred and forty five thousand, put the issue back on

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Speaker 8: the table. The second is Richards himself has chosen this

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Speaker 8: issue in an election year and has given it that way.

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Speaker 8: I mean he did the press conference yesterday. He has

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Speaker 8: multiple times chosen to put this issue at the spotlight

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Speaker 8: and in the center of attention. And thirdly, it's his

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Speaker 8: own party, many of which have driven breaksit through an

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Speaker 8: intense personal and political cost of which a key message

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Speaker 8: of that twenty sixteen referendum was to get migration down.

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Speaker 8: This is where it gets messy because a lot of

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Speaker 8: the messaging around that referendum and by Torrian Pas is

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Speaker 8: around net migration stopped the votes fro around it's specifically

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Speaker 8: about illegal migration. However, that kind of strength of feeling

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Speaker 8: from MPs and the Prime Minister is what has driven

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Speaker 8: this issue back to the top of agenda, driven as

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Speaker 8: well by that data.

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Speaker 1: Yeah, exactly. The data is sort of undermining the kind

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Speaker 1: of argument that the government's made progress. I mean, will

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Speaker 1: it deter boat crossings?

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Speaker 2: Again?

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Speaker 1: Much debate on that.

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Speaker 8: That is an impossible question to answer, Caroline, because we

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Speaker 8: simply don't know. I mean, look, I will get you

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Speaker 8: a letter from twenty twenty two that the head of

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Speaker 8: the Home Office Civil Service wrote a pretty petel at

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Speaker 8: the time saying we cannot because we have zero estimates

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Speaker 8: of how this policy will deter migrants give it a

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Speaker 8: good enough value for money. So he basically has to

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Speaker 8: write a letter saying we don't think this is value

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Speaker 8: for money because we can't prove it. And that's what

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Speaker 8: Labour keep using the attack and they call it an

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Speaker 8: expensive gimmick to use the migration observative stats. Briefly, they say,

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Speaker 8: look we have a few hundred people sent every year

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Speaker 8: for the UK government's figures to be taken at face value,

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Speaker 8: and if you take the numbers of people commingly crossing

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Speaker 8: the boats, you've got about a one to two percent

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Speaker 8: chance if you cross illegally. A being sent for Rowanda

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Speaker 8: will that one to pursue two percent chance if flights

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Speaker 8: do start taking off in twelve weeks, Rick says deter

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Speaker 8: people that he's the question whether it will is at

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Speaker 8: this point hard to say, But what I will say

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Speaker 8: is as and when it does start, the public will

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Speaker 8: start to make a judgment on if it has and

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Speaker 8: then re sixt policy will have to face the question

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Speaker 8: if it has succeeded or failed, and that is weeks away.

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Speaker 2: Okay, James will Cock, are you eco politics supporter? Thank you?

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Speaker 1: After Curring's shocking profit warning in the first quarter, some

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Speaker 1: investors are questioning whether CEO of fas A Rippino is

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Speaker 1: the right man to overhaul this brand at a critical juncture.

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Speaker 1: Gucci is undergoing a designer transition with Sabatta de Sano's

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Speaker 1: quiet luxury push, but the corporate governance issue is also

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Speaker 1: at state. Joining us now to discuss today's big take

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Speaker 1: is Bloomberg's Caroline Cunna in Paris. Great to have you

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Speaker 1: on the program this morning, you know, talking about Curring.

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Speaker 1: Good morning. I mean, unlike LVMH and el Meyer's Curring

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Speaker 1: share price has lost about a third of its value

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Speaker 1: since the pandemic, and so one could ask what has

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Speaker 1: gone wrong with the brand.

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Speaker 9: So, you know, one issue is that Karen has been

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Speaker 9: over reliant on Gucci. The brand Gucci represents two thirds

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Speaker 9: of profitability, whereas if you compare to Return, for example,

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Speaker 9: it only represents about half of LVMH profitability. So Kerring

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Speaker 9: also has only thirteen brands, whereas LVMH has a more

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Speaker 9: diverse portfolio seventy five brands, so they can also be

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Speaker 9: more resistant when you have some downturns, for example in China,

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Speaker 9: and that is a problem with Gucci as well. Gucci

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Speaker 9: is very exposed to China and less to the US,

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Speaker 9: so they cannot really benefit from the rebound of US

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Speaker 9: demand as much as rivals. But there's something more that

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Speaker 9: you can read in this big take is that Gucci

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Speaker 9: is actually suffering from a declining desirability. So they failed

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Speaker 9: to number twelve in what we call the least Index

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Speaker 9: which tracks, which tracks brands acording to online searches and

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Speaker 9: on social media. So they have a new designer, Sabertodosano,

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Speaker 9: who comes from Valentino, presented his first collection in Milan

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Speaker 9: last September, but it's hard to tell yet whether his

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Speaker 9: style of quiet luxury, which is very different from his

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Speaker 9: predecessor Lessandro Michele, who was very colorful, will actually work out.

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Speaker 9: And his level of fame, of course, is pretty far

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Speaker 9: from the former legendary a Gucci designer Tom Ford in

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Speaker 9: the early two thousands.

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Speaker 3: Karen In central to Caring's future, of course, is the

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Speaker 3: CEO of Francoisino, a fascinating figure, but some investors and

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Speaker 3: company executives are pointing the finger at him for the

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Speaker 3: problems at carrying Yes.

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Speaker 9: Some investors have been questioning his responsibility. He's already his

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Speaker 9: second generation. His father Francois Pino founded the group, and

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Speaker 9: he does not have the same management style as his

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Speaker 9: rival Bernarano, who is still at the helm at LVMH.

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Speaker 9: Berano is very controlling, was Pino is considered very lasse

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Speaker 9: fair living, perhaps too much freedom to the brands, and

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Speaker 9: also the question of his daily involvement. He spends a

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Speaker 9: lot of time on the West Coast in the US

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Speaker 9: with his wife Salma ak and last year he spent

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Speaker 9: close to seven billion dollars to buy Creative Artist Agency,

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Speaker 9: which manage his talents from Brad Pitt to his own wife. Actually,

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Speaker 9: and yet one source that Karen told us in this

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Speaker 9: Big Take that that hasn't distracted him from caring. He's

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Speaker 9: also done some good moves recently, purchasing a biggest take

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Speaker 9: in Valentino, investing in luxury I wear, in fact becoming

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Speaker 9: the number two in luxury I wear in the world.

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Speaker 9: But there's still a long way to go to catch

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Speaker 9: up revivals, and his son Francois is only twenty six

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Speaker 9: years old, so he's too young to succeed him quite yet.

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

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Speaker 3: stories making news from London to Wall Street and beyond.

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Speaker 3: the Bloomberg Business app, and Bloomberg dot Com.

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Speaker 1: I'm Caroline Hepka.

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Speaker 3: And I'm Stephen Carol. Join us again tomorrow morning for

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