1
00:00:02,520 --> 00:00:07,000
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:09,600 --> 00:00:11,799
Speaker 2: This is the Bloomberg Day Bak You podcast. Good morning,

3
00:00:11,840 --> 00:00:15,200
Speaker 2: It's Wednesday, the twelfth of November. I'm Caroline Hepka in London.

4
00:00:15,560 --> 00:00:18,599
Speaker 1: And I'm Stephen Carolin Brussels. Coming up today, the British

5
00:00:18,600 --> 00:00:21,080
Speaker 1: Prime Minister ker Starmer seeks to head off the threat

6
00:00:21,079 --> 00:00:23,639
Speaker 1: of a leadership challenge from one of his best known

7
00:00:23,680 --> 00:00:24,680
Speaker 1: cabinet ministers.

8
00:00:25,280 --> 00:00:29,680
Speaker 2: China's banks KNJA phantom loans to hit quotas as a

9
00:00:29,800 --> 00:00:32,200
Speaker 2: slowing economy SAPs real demand.

10
00:00:32,920 --> 00:00:36,960
Speaker 1: Plus no visa no problem. Wall Street ramps up hiring

11
00:00:37,040 --> 00:00:40,440
Speaker 1: in India as Trump cracks down on foreign workers coming

12
00:00:40,440 --> 00:00:41,519
Speaker 1: to the United States.

13
00:00:42,040 --> 00:00:44,120
Speaker 2: Let's start with the roundup of our top stories.

14
00:00:44,280 --> 00:00:46,720
Speaker 1: In the UK. Bloomberg has learned that allies of Prime

15
00:00:46,720 --> 00:00:49,720
Speaker 1: Minister kir Starmer have sought to ward off a feared

16
00:00:49,880 --> 00:00:53,120
Speaker 1: leadership challenge from one of the most high profile members

17
00:00:53,120 --> 00:00:56,400
Speaker 1: of his cabinet. The news comes after polling last month

18
00:00:56,680 --> 00:00:59,480
Speaker 1: showed that support for Starmer's party had slumped to its

19
00:00:59,560 --> 00:01:03,880
Speaker 1: lowest raising unrecorded, with just seventeen percent of Britain's telling

20
00:01:03,920 --> 00:01:07,360
Speaker 1: YouGov they'd vote for Labor if an election were held. Tomorrow,

21
00:01:07,520 --> 00:01:09,959
Speaker 1: but brigsw and Parts has more just.

22
00:01:09,840 --> 00:01:12,240
Speaker 3: Two weeks ahead of what's likely to be a contentious

23
00:01:12,240 --> 00:01:15,600
Speaker 3: budget and with labour trading reform UK in opinion polls

24
00:01:15,600 --> 00:01:18,520
Speaker 3: for more than six months now fused within the cabinet

25
00:01:18,560 --> 00:01:22,839
Speaker 3: are spilling into the open. Bloomberg understands Kissed Armer supporters

26
00:01:22,880 --> 00:01:27,039
Speaker 3: privately accused Health Secrety Where Streeting of plotting to replace

27
00:01:27,120 --> 00:01:30,920
Speaker 3: the Prime Minister. A spokesperson for Streeting described the claims

28
00:01:30,959 --> 00:01:34,959
Speaker 3: as categorically untrue, but another official said that Downing Street

29
00:01:35,000 --> 00:01:38,119
Speaker 3: had gone into bunker mode and initiated what they called

30
00:01:38,160 --> 00:01:42,360
Speaker 3: a circular firing squad. Starmer supporters argue any attempt to

31
00:01:42,440 --> 00:01:45,440
Speaker 3: change leader would risk a market shock and undermine the

32
00:01:45,480 --> 00:01:48,280
Speaker 3: government's finances. In London, I'm un pots.

33
00:01:48,320 --> 00:01:52,920
Speaker 2: Bloomberg Radio economists have worn that weakness in the UK

34
00:01:53,080 --> 00:01:56,920
Speaker 2: labor market is likely to have been overstated. After official

35
00:01:56,960 --> 00:02:02,120
Speaker 2: figures showed unemployment rows to five percent yesterday. Policymakers, including

36
00:02:02,120 --> 00:02:04,520
Speaker 2: the Bank of England rate set of Meghan Green, are

37
00:02:04,560 --> 00:02:07,960
Speaker 2: concerned the numbers rely on erratic data from the Office

38
00:02:08,000 --> 00:02:11,680
Speaker 2: for National Statistics. The jobs market is being monitored closely.

39
00:02:11,760 --> 00:02:14,320
Speaker 2: After the Chancellor was blamed for ramping up the burden

40
00:02:14,360 --> 00:02:18,239
Speaker 2: on employers in her first budget. Neil Carbrey, CEO of

41
00:02:18,280 --> 00:02:22,840
Speaker 2: the Recruitment and Employment Confederation, said payroll taxes should be

42
00:02:22,960 --> 00:02:25,200
Speaker 2: left alone in the upcoming budget.

43
00:02:26,040 --> 00:02:30,840
Speaker 4: The Chancellor took a swinging swipe at National Insurance last year,

44
00:02:30,960 --> 00:02:34,160
Speaker 4: not just in increasing the rate, but in reducing the threshold,

45
00:02:34,200 --> 00:02:36,160
Speaker 4: which is one of the reasons why we see so

46
00:02:36,240 --> 00:02:40,320
Speaker 4: much pain coming from hospitality retail sectors where the threshold

47
00:02:40,360 --> 00:02:42,519
Speaker 4: had a particular effect because we just on average, tend

48
00:02:42,560 --> 00:02:45,280
Speaker 4: to be lower. I think if there are to be

49
00:02:45,360 --> 00:02:47,560
Speaker 4: tax rises, if they're for business, they have to come

50
00:02:47,600 --> 00:02:49,000
Speaker 4: on profit, not on activity.

51
00:02:49,840 --> 00:02:54,200
Speaker 2: That was Neil Carbrey, CEO of the Recruitment and Employment Confederation,

52
00:02:54,280 --> 00:02:58,160
Speaker 2: speaking to Blomberg Radio. As traders reacting to the latest

53
00:02:58,280 --> 00:03:01,920
Speaker 2: jobs data, priced in a roughly eighty percent chance of

54
00:03:02,000 --> 00:03:04,960
Speaker 2: a rate cut in December by the Bank of England.

55
00:03:05,600 --> 00:03:08,440
Speaker 1: Stocks and bonds have risen in tandem after softer US

56
00:03:08,600 --> 00:03:12,120
Speaker 1: jobs data strengthened bets on a federal reserve rate cut

57
00:03:12,240 --> 00:03:16,000
Speaker 1: at the next meeting. Numbers from ADP suggest the labor

58
00:03:16,080 --> 00:03:19,600
Speaker 1: market slowed in the second half of October, prompting traders

59
00:03:19,600 --> 00:03:23,240
Speaker 1: to raise bets on a December cut to around seventy percent.

60
00:03:23,880 --> 00:03:26,920
Speaker 1: Private data such as ADP's has taken on greater importance

61
00:03:26,960 --> 00:03:30,760
Speaker 1: as the US government shutdown deprives investors of official indicators.

62
00:03:30,840 --> 00:03:34,880
Speaker 1: Here's the White House National Economic Director Kevin Hassett on CNBC.

63
00:03:35,800 --> 00:03:38,720
Speaker 5: There's been quite a lot of disruption because of this

64
00:03:38,840 --> 00:03:41,720
Speaker 5: terrible shutdown, and so, for example, I've been told that

65
00:03:41,760 --> 00:03:44,560
Speaker 5: some of the surveys were never actually completed, so we'll

66
00:03:44,600 --> 00:03:47,120
Speaker 5: never perhaps even know what happened in that month. And

67
00:03:47,160 --> 00:03:49,480
Speaker 5: so we're going to be staring a little bit in

68
00:03:50,520 --> 00:03:53,080
Speaker 5: cloudy weather for a while until we get the data

69
00:03:53,120 --> 00:03:53,960
Speaker 5: agencies back.

70
00:03:53,880 --> 00:03:57,360
Speaker 1: Up, Kevin Hassett, speaking there to CNBC. As the broader

71
00:03:57,440 --> 00:04:01,160
Speaker 1: artificial intelligence raley got another boost overnight. Chip maker AMD

72
00:04:01,360 --> 00:04:04,560
Speaker 1: is now forecasting average revenue growth of more than thirty

73
00:04:04,560 --> 00:04:07,720
Speaker 1: five percent over the next three to five years. The

74
00:04:07,720 --> 00:04:10,960
Speaker 1: stock rallied and extended trading, with CEO Lisa Su saying

75
00:04:10,960 --> 00:04:13,560
Speaker 1: she now expects the total AI chip market to each

76
00:04:13,640 --> 00:04:15,880
Speaker 1: one trillion dollars by twenty thirty.

77
00:04:17,080 --> 00:04:20,279
Speaker 2: Well now to China, where a practice known as quick

78
00:04:20,400 --> 00:04:24,279
Speaker 2: lend and recover is spreading as banks face rising pressure

79
00:04:24,360 --> 00:04:27,840
Speaker 2: to hit steep targets. Bloeberg's Tiba Adebayo has more.

80
00:04:28,880 --> 00:04:32,120
Speaker 6: Chinese lenders are asking clients to take out loans and

81
00:04:32,160 --> 00:04:36,400
Speaker 6: then immediately repay them, covering the interest. According to employees,

82
00:04:36,440 --> 00:04:39,880
Speaker 6: these phantom loans are becoming more common as real demand

83
00:04:39,920 --> 00:04:43,840
Speaker 6: struggles to keep up with government pressure. Bloomberg understands banks

84
00:04:43,880 --> 00:04:46,120
Speaker 6: have been told to lend at least as much as

85
00:04:46,240 --> 00:04:49,240
Speaker 6: last year and worry the number of borrowers could shrink

86
00:04:49,320 --> 00:04:53,400
Speaker 6: even further. The news comes as policymakers face a major

87
00:04:53,520 --> 00:04:58,279
Speaker 6: challenge as China's economy slows, encouraging people to borrow, spend

88
00:04:58,560 --> 00:05:03,520
Speaker 6: and invest. Meanwhile, regulators have vowed to prevent funds circulating

89
00:05:03,600 --> 00:05:07,360
Speaker 6: in the banking sector instead of flowing to the real economy.

90
00:05:07,880 --> 00:05:10,400
Speaker 6: In London, to You, added by Bloomberg.

91
00:05:10,000 --> 00:05:13,200
Speaker 1: Radio, the US military is looking at plans to build

92
00:05:13,240 --> 00:05:16,880
Speaker 1: a temporary base capable of housing ten thousand personnel near

93
00:05:16,880 --> 00:05:19,960
Speaker 1: the Gaza Strip. According to a request for information seen

94
00:05:20,000 --> 00:05:22,680
Speaker 1: by Bloomberg, the Navy is looking at cast estimates and

95
00:05:22,720 --> 00:05:26,160
Speaker 1: a list of contractors for a site quote near Gaza,

96
00:05:26,240 --> 00:05:29,520
Speaker 1: Israel that would provide ten thousand square feet of office

97
00:05:29,520 --> 00:05:33,039
Speaker 1: space for a period of twelve months. Bloomberg understands that

98
00:05:33,080 --> 00:05:35,720
Speaker 1: any potential base would be used to support an international

99
00:05:35,760 --> 00:05:39,680
Speaker 1: stabilization force to help secure the fragile truce between Israel

100
00:05:39,760 --> 00:05:40,919
Speaker 1: and Hamas.

101
00:05:41,720 --> 00:05:45,480
Speaker 2: Euro Group finance ministers gather in Brussels today to discuss

102
00:05:45,600 --> 00:05:49,080
Speaker 2: fiscal developments in the currency Block, it comes as French

103
00:05:49,160 --> 00:05:53,000
Speaker 2: lawmakers are set to debate suspending the country's pension reform,

104
00:05:53,279 --> 00:05:56,360
Speaker 2: a key demand by socialists in order to help keep

105
00:05:56,400 --> 00:06:00,480
Speaker 2: the Prime Minister Sebastia Locorno in power. French Minister European

106
00:06:00,480 --> 00:06:03,840
Speaker 2: Affairs Benjamin had Aired told Bloomberg Radio he's confident that

107
00:06:03,880 --> 00:06:07,640
Speaker 2: parliament will reach a budget compromise, but he said France

108
00:06:07,760 --> 00:06:10,520
Speaker 2: must adapt to a new political reality.

109
00:06:11,360 --> 00:06:13,680
Speaker 7: The truth is now we're fitting a lot with the

110
00:06:13,720 --> 00:06:16,960
Speaker 7: European norm. You know, for a long time in France,

111
00:06:17,120 --> 00:06:20,560
Speaker 7: we used to have absolute majorities in parliament and you'd

112
00:06:20,560 --> 00:06:23,440
Speaker 7: have the majority adopt laws and the opposition being in

113
00:06:23,480 --> 00:06:26,960
Speaker 7: the opposition. And most of our neighbors have fragmented parliaments,

114
00:06:27,000 --> 00:06:29,599
Speaker 7: have coalitions and they have a spirit and a culture

115
00:06:30,000 --> 00:06:32,560
Speaker 7: of compromise, of reaching to one another.

116
00:06:33,800 --> 00:06:37,120
Speaker 2: French Minister for European Affairs Benjamin had Had speaking there

117
00:06:37,120 --> 00:06:41,520
Speaker 2: to Bloomberg Radio Finance ministers of the wider European Union

118
00:06:41,560 --> 00:06:44,160
Speaker 2: will meet tomorrow for a summit that could include a

119
00:06:44,200 --> 00:06:47,880
Speaker 2: debate on the use of Russian assets to support Ukraine.

120
00:06:48,839 --> 00:06:50,640
Speaker 1: And those are your top stories on the markets. The

121
00:06:50,720 --> 00:06:54,159
Speaker 1: mscirishpecific index up by four tenths of one percent this morning.

122
00:06:54,200 --> 00:06:56,080
Speaker 1: The ten yure treasure yield in the US down three

123
00:06:56,080 --> 00:06:58,760
Speaker 1: basis points to four point zero nine percent, as the

124
00:06:58,839 --> 00:07:01,720
Speaker 1: US jobs data I had showed that suffering and a

125
00:07:01,839 --> 00:07:05,039
Speaker 1: ramping up of Federal reserve rate cup bets. European stocks

126
00:07:05,120 --> 00:07:07,200
Speaker 1: close did a record high yesterday. This stock six hundred

127
00:07:07,200 --> 00:07:09,000
Speaker 1: was up by one point three percent of the clothes

128
00:07:09,040 --> 00:07:13,040
Speaker 1: and Italy's finally passed its two thousand and seven peak.

129
00:07:14,080 --> 00:07:14,560
Speaker 4: Well in a.

130
00:07:14,520 --> 00:07:17,640
Speaker 2: Moment, we're going to bring you more on the possibility

131
00:07:17,680 --> 00:07:23,080
Speaker 2: the potential leadership challenge facing Kirstarma, plus how American investment

132
00:07:23,160 --> 00:07:26,840
Speaker 2: banks are expanding in India in response to President Trump's

133
00:07:26,880 --> 00:07:31,119
Speaker 2: moves to titan visa rules in the US. But another

134
00:07:31,160 --> 00:07:33,680
Speaker 2: story has caught our rye, as it often does at

135
00:07:33,680 --> 00:07:37,320
Speaker 2: this time of the morning. Twenty twenty five apparently is

136
00:07:37,400 --> 00:07:40,720
Speaker 2: turning out to be a great year for wine well.

137
00:07:40,800 --> 00:07:43,000
Speaker 1: Depends on where you are, is the key part of this.

138
00:07:43,120 --> 00:07:47,080
Speaker 1: So climate conditions led to excellent or what winemakers are

139
00:07:47,080 --> 00:07:49,880
Speaker 1: saying will be excellent production exceptional. Indeed, some of the

140
00:07:49,920 --> 00:07:52,640
Speaker 1: language being used in the likes of the Bordeaux region

141
00:07:52,680 --> 00:07:55,200
Speaker 1: in France and Champagne as well in England. It looks

142
00:07:55,240 --> 00:07:57,320
Speaker 1: like it's going to be a great year for wine.

143
00:07:57,360 --> 00:08:00,560
Speaker 1: There two Pied mount in Italy, but then dess and

144
00:08:00,600 --> 00:08:03,280
Speaker 1: other places the Door of Valley and Portugal that's going

145
00:08:03,320 --> 00:08:06,720
Speaker 1: to be a terrible year for them. Corbier and France

146
00:08:06,760 --> 00:08:09,360
Speaker 1: in the Longdock region they had suffered with forest fires

147
00:08:09,360 --> 00:08:12,840
Speaker 1: in particular that had also led to damaging a lot

148
00:08:12,840 --> 00:08:14,640
Speaker 1: of grapes spheres, and some of the grapes there might

149
00:08:14,640 --> 00:08:17,360
Speaker 1: actually end up with a smoky tint as a result

150
00:08:17,400 --> 00:08:20,760
Speaker 1: of the fires in the area as well. But I

151
00:08:20,760 --> 00:08:22,920
Speaker 1: suppose if we focus on the positive, it does look

152
00:08:22,960 --> 00:08:25,000
Speaker 1: like twenty twenty five is going to be one of

153
00:08:25,040 --> 00:08:28,520
Speaker 1: those years ending in five that produces excellent wine. I

154
00:08:28,520 --> 00:08:30,400
Speaker 1: didn't know this was a thing, but apparently it's a

155
00:08:30,400 --> 00:08:33,600
Speaker 1: trend among wine makers. Bank on twenty twenty five.

156
00:08:33,960 --> 00:08:36,880
Speaker 2: We need to get ourselves educated about the best things

157
00:08:36,920 --> 00:08:40,439
Speaker 2: to quaff of a weekend. But yes, I mean there's

158
00:08:40,480 --> 00:08:44,160
Speaker 2: also been a massive surge in demand for English wines,

159
00:08:44,160 --> 00:08:48,360
Speaker 2: which I think is really interesting. But I think overhanging

160
00:08:48,400 --> 00:08:52,040
Speaker 2: all of this is the question mark about demand. For one,

161
00:08:52,160 --> 00:08:55,160
Speaker 2: even if it's a fantastic year, consumption has actually been down.

162
00:08:55,440 --> 00:08:58,240
Speaker 2: People are drinking less, particularly red wine, and we talked

163
00:08:58,240 --> 00:09:00,880
Speaker 2: about that in the past, and then there's tariffs on

164
00:09:01,440 --> 00:09:04,160
Speaker 2: the prices of a lot of these wines. But I

165
00:09:04,160 --> 00:09:08,040
Speaker 2: think it's a really interesting piece, yes, with highs and lows.

166
00:09:08,200 --> 00:09:11,160
Speaker 2: I suppose, mirroring the worries about climate change. Really from

167
00:09:11,200 --> 00:09:15,559
Speaker 2: Bloomberg's Ellen McCoy. She was reporting on the latest when

168
00:09:15,600 --> 00:09:17,280
Speaker 2: it comes to why, we're going to put a link

169
00:09:17,360 --> 00:09:20,200
Speaker 2: to that story if you're interested, maybe a buyer or

170
00:09:20,200 --> 00:09:21,920
Speaker 2: a drinker, or put a link to it in our

171
00:09:21,920 --> 00:09:25,439
Speaker 2: show notes. Now let's bring you more on our exclusive

172
00:09:25,559 --> 00:09:29,040
Speaker 2: reporting on the threat of a leadership challenge against the

173
00:09:29,120 --> 00:09:31,640
Speaker 2: Prime Minister here in the UK. Our UK correspondent Lizzie

174
00:09:31,679 --> 00:09:34,520
Speaker 2: Burden joins us now for more. Lizzie, good morning. Firsty,

175
00:09:34,760 --> 00:09:37,199
Speaker 2: what do we actually know about this challenge?

176
00:09:37,280 --> 00:09:40,199
Speaker 8: Well, our UK Political editor Alex Wickham has been speaking

177
00:09:40,240 --> 00:09:44,160
Speaker 8: to allies of the Prime Minister, who've privately accused the

178
00:09:44,240 --> 00:09:48,160
Speaker 8: Health secretary. Where's Streeting of plotting a leadership challenge? Now,

179
00:09:48,160 --> 00:09:50,920
Speaker 8: it's not the first time that Streeting's name has been floated.

180
00:09:51,040 --> 00:09:54,840
Speaker 8: He's younger than Starmer at forty two. He's charismatic, he's

181
00:09:55,000 --> 00:09:58,080
Speaker 8: from a council estate in London. He's gay, so he'd

182
00:09:58,080 --> 00:10:01,400
Speaker 8: be seen as a fresh face the party when Starmer's

183
00:10:01,440 --> 00:10:05,520
Speaker 8: personal ratings been languishing behind Nigel Farages, the reformer UK

184
00:10:05,679 --> 00:10:09,719
Speaker 8: Party leader. But Starmer's team say the market wouldn't like it.

185
00:10:09,760 --> 00:10:12,960
Speaker 8: Remember when Guilt sold off, when the Chancellor cried a

186
00:10:13,040 --> 00:10:16,720
Speaker 8: taste of the potential reaction if she were sacked. Starmer

187
00:10:16,720 --> 00:10:20,319
Speaker 8: will be hoping for the same loyalty from the Bond vigilantes.

188
00:10:20,559 --> 00:10:23,400
Speaker 8: And we should say Streeting's team say that this is

189
00:10:23,480 --> 00:10:24,720
Speaker 8: categorically untrue.

190
00:10:25,440 --> 00:10:27,840
Speaker 1: But Starmer has been struggling to keep his own MPs

191
00:10:27,880 --> 00:10:31,120
Speaker 1: on board over the sixteen months of his premiership. Is

192
00:10:31,160 --> 00:10:34,720
Speaker 1: this more serious than previous rumblings we've heard.

193
00:10:34,840 --> 00:10:38,079
Speaker 8: Well, you'll remember the rumblings around Starmer's leadership, Stephen. They

194
00:10:38,160 --> 00:10:41,960
Speaker 8: crescendoed around the Labor Party conference. But there was a

195
00:10:42,000 --> 00:10:44,840
Speaker 8: sense that the Mayor of Manchester, Andy Burnham stuck his

196
00:10:44,880 --> 00:10:47,320
Speaker 8: head too far above the parapet and then he had

197
00:10:47,360 --> 00:10:50,040
Speaker 8: to backtrack, and it was seen as Starmer getting a

198
00:10:50,040 --> 00:10:52,719
Speaker 8: bit of a grip on his party. The other name

199
00:10:52,760 --> 00:10:55,120
Speaker 8: at the top of Bookie's list is the former Deputy

200
00:10:55,120 --> 00:10:59,240
Speaker 8: Prime Minister Angela Rayner. But Streeting himself has flirted with

201
00:10:59,360 --> 00:11:03,760
Speaker 8: disloyalty before. He openly criticized President Donald Trump around his

202
00:11:03,880 --> 00:11:07,559
Speaker 8: second state visit, so breaking with Starmer's softly softly approach.

203
00:11:08,120 --> 00:11:11,840
Speaker 8: But what's interesting about Streeting is he only won his

204
00:11:12,000 --> 00:11:14,839
Speaker 8: seat by five hundred and twenty eight votes last July,

205
00:11:14,960 --> 00:11:17,280
Speaker 8: and he could be vulnerable to a challenge by an

206
00:11:17,360 --> 00:11:21,560
Speaker 8: independent candidate that's pro Palestine. He might not even rewin

207
00:11:21,679 --> 00:11:23,560
Speaker 8: his seat when there is an election.

208
00:11:24,320 --> 00:11:26,480
Speaker 2: But all of this is coming only two weeks before

209
00:11:26,520 --> 00:11:29,000
Speaker 2: the budget. How do you think the events behind the

210
00:11:29,080 --> 00:11:33,199
Speaker 2: scenes affect what is seen to be a very painful

211
00:11:33,280 --> 00:11:35,240
Speaker 2: set of announcements that come from the Chancellor.

212
00:11:35,360 --> 00:11:38,000
Speaker 8: Well, the Chancellor is expected to raise taxes, as we

213
00:11:38,080 --> 00:11:41,600
Speaker 8: know Caroline, and she's hinted that she could break Labour's

214
00:11:41,600 --> 00:11:44,760
Speaker 8: manifesto pledge not to raise the three main leavers of

215
00:11:44,840 --> 00:11:47,360
Speaker 8: tax The Times of London, reporting that she's already asked

216
00:11:47,400 --> 00:11:50,160
Speaker 8: the Office for Budget Responsibility, the Fiscal watchdog, to do

217
00:11:50,240 --> 00:11:53,560
Speaker 8: the sums on raising income tax, even if no final

218
00:11:53,600 --> 00:11:57,040
Speaker 8: decision has been made yet. Now that would be deeply unpopular,

219
00:11:57,120 --> 00:11:59,400
Speaker 8: hence all the pitch rolling, but it would create an

220
00:11:59,440 --> 00:12:04,080
Speaker 8: opportunity for a leadership challenge. Clearly though, if Starma goes

221
00:12:04,120 --> 00:12:06,839
Speaker 8: so soon into his premiership it would smack of that

222
00:12:06,920 --> 00:12:11,520
Speaker 8: instability under the Conservatives. Johnson trust Sunak that Starma promised

223
00:12:11,559 --> 00:12:12,120
Speaker 8: he would end.

224
00:12:12,559 --> 00:12:15,000
Speaker 2: Okay, Lizzie, thank you so much for being with us

225
00:12:15,000 --> 00:12:20,360
Speaker 2: our UK, corresponded, Lizzie Burden, stay with us. More from

226
00:12:20,400 --> 00:12:22,640
Speaker 2: Bloomberg daybaqube coming up after this.

227
00:12:24,280 --> 00:12:24,439
Speaker 3: Now.

228
00:12:24,480 --> 00:12:26,920
Speaker 1: A recruitment drive by US investment banks in India is

229
00:12:26,960 --> 00:12:30,040
Speaker 1: expected to accelerate after moves by the White House to

230
00:12:30,080 --> 00:12:33,000
Speaker 1: reduce immigration that included pushing up the cost of the

231
00:12:33,160 --> 00:12:36,240
Speaker 1: H one B skilled worker visa to one hundred thousand dollars.

232
00:12:36,679 --> 00:12:39,840
Speaker 1: The prospect of expansion by global banks abroad underscores the

233
00:12:39,880 --> 00:12:45,360
Speaker 1: limits of Trump's strategy to safeguard domestic employment through tighter

234
00:12:45,520 --> 00:12:50,560
Speaker 1: immigration controls. OUR Finance reporter Sudi Naya joins US from

235
00:12:50,640 --> 00:12:52,679
Speaker 1: Mumbai for more. Sod be great to talk to you.

236
00:12:53,040 --> 00:12:56,320
Speaker 1: What has changed then for US banks in India as

237
00:12:56,360 --> 00:12:59,360
Speaker 1: the Trump administration has been making these changes and tightening

238
00:12:59,480 --> 00:13:00,240
Speaker 1: visa rules.

239
00:13:01,160 --> 00:13:04,920
Speaker 9: So financial services firms and banks that are headquartered in

240
00:13:04,960 --> 00:13:08,720
Speaker 9: the US have a significant employee base in India. Just

241
00:13:08,760 --> 00:13:11,839
Speaker 9: to give you some numbers, the top six US banks

242
00:13:11,880 --> 00:13:16,160
Speaker 9: in India, including JP Morgan City, Goldman Sachs, employ about

243
00:13:16,320 --> 00:13:19,040
Speaker 9: one hundred and fifty thousand employees in India. That's a

244
00:13:19,120 --> 00:13:24,520
Speaker 9: significant employee base, right. So when Trump announced the RISA fee,

245
00:13:25,040 --> 00:13:27,360
Speaker 9: a lot has changed for these players as well as

246
00:13:27,360 --> 00:13:30,600
Speaker 9: the banks. So US firms are now walking a fine

247
00:13:30,760 --> 00:13:34,280
Speaker 9: line as they look to add more of these sophisticated

248
00:13:34,520 --> 00:13:38,439
Speaker 9: job roles in India. These firms are now looking inwards

249
00:13:38,440 --> 00:13:42,040
Speaker 9: in India for hiring talent to ensure there is optimum

250
00:13:42,800 --> 00:13:45,840
Speaker 9: So there's to ensure that there's cost optimization to save

251
00:13:45,920 --> 00:13:49,960
Speaker 9: up on costs. So the banks that may have considered

252
00:13:50,200 --> 00:13:53,120
Speaker 9: transferring a worker to the US may now opt to

253
00:13:53,200 --> 00:13:57,200
Speaker 9: hire them in India to save their costs. That is

254
00:13:57,200 --> 00:14:00,400
Speaker 9: going to lead to more jobs in India, ultimately feed

255
00:14:00,440 --> 00:14:04,319
Speaker 9: into revenue generation and boost India's growth prospects.

256
00:14:05,240 --> 00:14:08,640
Speaker 2: Yes, that's very interesting, isn't it. Well who is hiring

257
00:14:09,080 --> 00:14:11,920
Speaker 2: and you've talked a little bit about roles, but what

258
00:14:11,960 --> 00:14:14,160
Speaker 2: sort of roles are the banks actually hiring?

259
00:14:14,240 --> 00:14:18,720
Speaker 9: For sure? A little bit of background here. Initially, when

260
00:14:18,800 --> 00:14:23,160
Speaker 9: the GCC operations started in India, these vccs were viewed

261
00:14:23,200 --> 00:14:26,520
Speaker 9: as call centers in the late nineteen nineties or early

262
00:14:26,560 --> 00:14:30,760
Speaker 9: two thousands, if you had a grievance related issue, say

263
00:14:30,800 --> 00:14:34,040
Speaker 9: if you're somebody in the US and had some inshortance

264
00:14:34,080 --> 00:14:38,400
Speaker 9: related grievances or issues, the chances were that they would

265
00:14:38,400 --> 00:14:42,520
Speaker 9: be handled out of India. But that has significantly changed now.

266
00:14:43,040 --> 00:14:46,240
Speaker 9: Indians are now expected to build the tech here. As

267
00:14:46,280 --> 00:14:51,320
Speaker 9: the technology here. They're expected to do high end sophisticated roles,

268
00:14:51,400 --> 00:14:55,520
Speaker 9: indulged in research and development, do most of the legal work,

269
00:14:55,640 --> 00:14:59,520
Speaker 9: and ensure that the back end processes run smoothly. So

270
00:14:59,640 --> 00:15:02,080
Speaker 9: just to give you an example, what we found from

271
00:15:02,160 --> 00:15:05,480
Speaker 9: our reporting is the zell app, which is a US

272
00:15:05,600 --> 00:15:10,160
Speaker 9: based digital payment service app for sending and receiving payments.

273
00:15:11,000 --> 00:15:14,360
Speaker 9: The entire app was developed from India in their Indian

274
00:15:14,440 --> 00:15:18,880
Speaker 9: gccs of these Wall Street banks. So just this was

275
00:15:18,920 --> 00:15:22,880
Speaker 9: to give you some light on how the job roles

276
00:15:22,920 --> 00:15:25,920
Speaker 9: are changing now coming to a question of what kind

277
00:15:25,960 --> 00:15:29,880
Speaker 9: of roles banks are hiring for. These are mostly high end,

278
00:15:29,920 --> 00:15:37,000
Speaker 9: sophisticated and finance roles, mostly in the software automation testing

279
00:15:38,200 --> 00:15:41,200
Speaker 9: based for the X side and on the audit side.

280
00:15:41,480 --> 00:15:44,240
Speaker 9: For the finance side. We have audits, we have business

281
00:15:44,240 --> 00:15:48,040
Speaker 9: development roles. A certain amount of high end roles that

282
00:15:48,360 --> 00:15:50,320
Speaker 9: are being transferred to India.

283
00:15:51,280 --> 00:15:54,040
Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

284
00:15:54,120 --> 00:15:57,160
Speaker 1: stories making news from London to Wall Street and beyond.

285
00:15:57,480 --> 00:16:01,479
Speaker 2: Look for us on your podcast feed every morning on Apples, Spotify,

286
00:16:01,560 --> 00:16:03,560
Speaker 2: and anywhere else you get your podcasts.

287
00:16:03,640 --> 00:16:06,720
Speaker 1: You can also listen live each morning on London Dab Radio,

288
00:16:06,760 --> 00:16:09,440
Speaker 1: the Bloomberg Business app, and Bloomberg dot Com.

289
00:16:09,480 --> 00:16:12,240
Speaker 2: Our flagship New York station is also available on your

290
00:16:12,280 --> 00:16:17,000
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

291
00:16:17,240 --> 00:16:18,640
Speaker 2: I'm Caroline Hepka.

292
00:16:18,400 --> 00:16:20,800
Speaker 1: And I'm Stephen. Carol. Join us again tomorrow morning for

293
00:16:20,960 --> 00:16:23,320
Speaker 1: all the news you need to start your day right

294
00:16:23,360 --> 00:16:28,520
Speaker 1: here on Bloomberg Daybreak Europe.