1 00:00:02,520 --> 00:00:10,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Blue 2 00:00:10,480 --> 00:00:13,160 Speaker 1: Big Day BAC podcast. Good morning, It's Tuesday, the thirtieth 3 00:00:13,200 --> 00:00:15,680 Speaker 1: of September. I'm Caroline Hepgitt in London. 4 00:00:15,600 --> 00:00:18,560 Speaker 2: And I'm Stephen Caroline Brussels. Coming up today, the US 5 00:00:18,680 --> 00:00:21,239 Speaker 2: Vice President says the federal government is headed for a 6 00:00:21,320 --> 00:00:25,640 Speaker 2: shutdown as the uncertainty sends gold prices to another record high. 7 00:00:26,000 --> 00:00:29,200 Speaker 1: Donald Trump and Benjamin Ettania who back a twenty point 8 00:00:29,320 --> 00:00:32,440 Speaker 1: plan to end the war in Gaza, but it appears 9 00:00:32,520 --> 00:00:35,360 Speaker 1: unlikely to win support from Hermas. 10 00:00:35,280 --> 00:00:39,120 Speaker 2: Plus from landslide to low poll ratings, caer Starmer bets 11 00:00:39,159 --> 00:00:42,560 Speaker 2: on a message of decency over division as he seeks 12 00:00:42,600 --> 00:00:45,160 Speaker 2: to revitalize Labour's political fortunes. 13 00:00:45,560 --> 00:00:47,680 Speaker 1: Let's start with the roundup of our top stories. 14 00:00:48,320 --> 00:00:51,120 Speaker 2: The price of gold has hit another record high as 15 00:00:51,200 --> 00:00:54,760 Speaker 2: fears mount that a looming US government shutdown will stall 16 00:00:54,960 --> 00:00:58,680 Speaker 2: data releases crucial for charting the federal reserves rate path. 17 00:00:59,160 --> 00:01:01,600 Speaker 2: The spot price for the metal climbed above three thousand, 18 00:01:01,760 --> 00:01:05,039 Speaker 2: eight hundred and sixty five dollars announce as Democratic and 19 00:01:05,080 --> 00:01:09,800 Speaker 2: Republican leaders remained far apart after meeting President Trump. Democrats 20 00:01:09,840 --> 00:01:13,480 Speaker 2: want to extend healthcare subsidies and reverse Medicaid cuts from 21 00:01:13,480 --> 00:01:17,120 Speaker 2: Trump's tax law before agreeing to a spending bill. Speaking 22 00:01:17,120 --> 00:01:19,720 Speaker 2: after the White House meeting, Vice President jad Vance sought 23 00:01:19,760 --> 00:01:22,240 Speaker 2: to blame the Democratic Party for any shutdown. 24 00:01:22,520 --> 00:01:24,360 Speaker 3: If they want to talk about how to fix American 25 00:01:24,360 --> 00:01:27,039 Speaker 3: healthcare policy, let's do it. The Speaker would love to 26 00:01:27,040 --> 00:01:28,680 Speaker 3: do it, the CITI majority of leader would love to 27 00:01:28,720 --> 00:01:28,960 Speaker 3: do it. 28 00:01:29,080 --> 00:01:30,200 Speaker 4: Let's work on it together. 29 00:01:30,520 --> 00:01:32,559 Speaker 3: But let's do it in the context of an open 30 00:01:32,640 --> 00:01:36,240 Speaker 3: government that's providing essential services to the American people. That's 31 00:01:36,319 --> 00:01:38,480 Speaker 3: all that we're proposing to do, and the fact that 32 00:01:38,480 --> 00:01:41,600 Speaker 3: they refuse to do that shows how unreasonable their position is. 33 00:01:41,640 --> 00:01:44,039 Speaker 3: I think we're headed into a shutdown because the Democrats 34 00:01:44,040 --> 00:01:44,920 Speaker 3: won't do the right thing. 35 00:01:45,120 --> 00:01:46,160 Speaker 4: I hope they changed their mind. 36 00:01:46,200 --> 00:01:50,480 Speaker 2: What we're to see Jedivance speaking there as US government 37 00:01:50,480 --> 00:01:53,160 Speaker 2: funding is set to expire at five oh one am 38 00:01:53,280 --> 00:01:56,480 Speaker 2: London time tomorrow. If funding laps is, the first major 39 00:01:56,560 --> 00:01:59,360 Speaker 2: data release that could be delayed would be Friday's Bureau 40 00:01:59,400 --> 00:02:02,920 Speaker 2: of Labors to take STICS Employment report. The agency's Marquee 41 00:02:02,920 --> 00:02:07,120 Speaker 2: report on CPI inflation could follow, while data on retail 42 00:02:07,200 --> 00:02:11,080 Speaker 2: sales and new housing construction are also at risk of 43 00:02:11,160 --> 00:02:13,239 Speaker 2: delay in an extended shutdown. 44 00:02:14,680 --> 00:02:18,040 Speaker 1: Now, President Donald Trump and Israeli Prime Minister Benjamin Netanya 45 00:02:18,120 --> 00:02:20,919 Speaker 1: who say they have agreed a twenty point plan to 46 00:02:21,000 --> 00:02:24,040 Speaker 1: end the war in Gaza. At a joint press conference 47 00:02:24,040 --> 00:02:26,720 Speaker 1: in the White House, the two leaders presented the framework 48 00:02:26,800 --> 00:02:30,280 Speaker 1: as an ultimatum to Hamas to surrender and play no 49 00:02:30,480 --> 00:02:33,480 Speaker 1: role in the future of Gaza. Trump called the plan 50 00:02:33,560 --> 00:02:36,720 Speaker 1: an opportunity for quote eternal peace in the Middle East, 51 00:02:37,000 --> 00:02:40,079 Speaker 1: beginning with the release of the remaining Israeli hostages. 52 00:02:41,280 --> 00:02:44,080 Speaker 5: I also want to thank Prime Minister Ntniale for agreeing 53 00:02:44,080 --> 00:02:48,000 Speaker 5: to the plan if accepted by Hamas's proposal calls for 54 00:02:48,120 --> 00:02:53,480 Speaker 5: the release of all remaining hostages immediately, but in no 55 00:02:53,600 --> 00:02:56,160 Speaker 5: case more than seventy two hours. 56 00:02:57,840 --> 00:03:00,359 Speaker 1: President Trump said the plan had the support of a 57 00:03:00,440 --> 00:03:03,800 Speaker 1: number of Middle Eastern leaders. However, the prospective peace remains 58 00:03:03,880 --> 00:03:08,840 Speaker 1: unclear without the direct involvement of Hamas. The plan involves 59 00:03:08,880 --> 00:03:13,280 Speaker 1: Gaza being handed over to a technocratic a political Palestinian 60 00:03:13,280 --> 00:03:16,760 Speaker 1: committee overseen by a Board of Peace, which would be 61 00:03:16,840 --> 00:03:20,560 Speaker 1: chaired by President Trump, with former UK Prime Minister Tony 62 00:03:20,639 --> 00:03:24,600 Speaker 1: Blair playing a role. Prime Minister Benjamin Netanya, who said 63 00:03:24,840 --> 00:03:28,200 Speaker 1: Israel will achieve its objectives either way. 64 00:03:29,160 --> 00:03:32,080 Speaker 6: But if Hamas rejects your plan, mister President, or if 65 00:03:32,120 --> 00:03:37,360 Speaker 6: they supposedly accepted and then then basically do everything to 66 00:03:37,560 --> 00:03:41,640 Speaker 6: counter it, then Israel will finish the job by itself. 67 00:03:42,720 --> 00:03:45,760 Speaker 1: Prime Minister Netanyahu there as, President Trump said that Israel 68 00:03:45,800 --> 00:03:48,680 Speaker 1: would have full US backing to destroy Hamas if it 69 00:03:49,080 --> 00:03:50,040 Speaker 1: rejects the deal. 70 00:03:51,320 --> 00:03:54,200 Speaker 2: Binberg understands that China has asked the Trump administration to 71 00:03:54,280 --> 00:03:59,480 Speaker 2: officially declare that it opposes Taiwan's independence. The suggested wording 72 00:03:59,520 --> 00:04:03,160 Speaker 2: is stronger than the Biden administration's previous statement, which was 73 00:04:03,160 --> 00:04:07,280 Speaker 2: that US officials do not support the island seeking formal independence. 74 00:04:07,680 --> 00:04:10,640 Speaker 2: The Trump administration hasn't decided on the request, which is 75 00:04:10,680 --> 00:04:13,720 Speaker 2: part of a broader list of demands from Beijing. The 76 00:04:13,760 --> 00:04:17,320 Speaker 2: State Department said yesterday that Washington's position on Taiwan hasn't 77 00:04:17,440 --> 00:04:21,040 Speaker 2: changed and the US remains committed to the One China policy. 78 00:04:21,400 --> 00:04:24,960 Speaker 2: Taiwan's Ministry of Foreign Affairs spokesman said Taipei continues to 79 00:04:25,000 --> 00:04:28,160 Speaker 2: closely monitor Beijing's manipulative narratives. 80 00:04:30,000 --> 00:04:33,680 Speaker 1: EU leaders will this week discuss major new defense projects, 81 00:04:33,720 --> 00:04:38,120 Speaker 1: including plans for a so called European drone Wall. Bloomberg's 82 00:04:38,160 --> 00:04:40,080 Speaker 1: Mihal Kabbala reports now. 83 00:04:40,800 --> 00:04:43,600 Speaker 7: It's a push that's gained urgency after a wave of 84 00:04:43,680 --> 00:04:47,960 Speaker 7: Russian incursions in Tornado airspace. The European Commission has outlined 85 00:04:47,960 --> 00:04:51,040 Speaker 7: plans to boost air and missile defenses, which leaders will 86 00:04:51,040 --> 00:04:54,120 Speaker 7: discuss in Copenhagen in the coming days. The drone wall 87 00:04:54,160 --> 00:04:57,760 Speaker 7: would build on Ukraine's battle field experience and involve European 88 00:04:57,800 --> 00:05:02,680 Speaker 7: startups and experts. An Eastern Flankwatch project aims to add 89 00:05:02,800 --> 00:05:06,039 Speaker 7: layers of protection against hybrid threats. It's all a part 90 00:05:06,040 --> 00:05:09,120 Speaker 7: of you plans to close gaps in European defenses by 91 00:05:09,120 --> 00:05:12,559 Speaker 7: twenty thirty in Brussels, Michael Kobola, Bloomberg Radio. 92 00:05:14,440 --> 00:05:16,640 Speaker 2: In the UK, the Prime Minister will use his Labor 93 00:05:16,680 --> 00:05:20,040 Speaker 2: Party conference speech today to say Britain faces a defining 94 00:05:20,240 --> 00:05:24,680 Speaker 2: choice between decency and division. Ker Starmer is seeking to 95 00:05:24,720 --> 00:05:28,240 Speaker 2: adopt a tougher line on immigration while going on the 96 00:05:28,320 --> 00:05:33,640 Speaker 2: attack against Nigel Faraj's pole leading reform UK Party. Starmer's 97 00:05:33,680 --> 00:05:36,880 Speaker 2: speech comes as as Chancellor Rachel Reeves used her conference 98 00:05:36,920 --> 00:05:40,400 Speaker 2: speech to hit back at those criticizing how she's. 99 00:05:40,200 --> 00:05:42,640 Speaker 4: Handling the economy with a. 100 00:05:42,640 --> 00:05:45,200 Speaker 2: Global uncertainty that we have seen ripple. 101 00:05:45,000 --> 00:05:46,240 Speaker 4: Through financial markets. 102 00:05:46,560 --> 00:05:48,719 Speaker 8: There are still critics out there who are too readily 103 00:05:48,760 --> 00:05:51,359 Speaker 8: forget the consequences of reckless economic choices. 104 00:05:51,520 --> 00:05:54,640 Speaker 2: We will never ever do what the Conservatives did to 105 00:05:54,920 --> 00:05:59,640 Speaker 2: ordinary working people in this country. Rachel Reeves spoke there 106 00:05:59,680 --> 00:06:02,080 Speaker 2: as new polling from IPSAS shows her to be the 107 00:06:02,080 --> 00:06:06,640 Speaker 2: most unpopular chancellor since records began almost fifty years ago. 108 00:06:06,839 --> 00:06:09,360 Speaker 2: While she's largely been able to keep the bond markets 109 00:06:09,400 --> 00:06:13,600 Speaker 2: on side, voters now see her less favorably than Quasi Kwarteng, 110 00:06:13,640 --> 00:06:17,200 Speaker 2: the architect of Liz Truss's mini budget that saw debt 111 00:06:17,240 --> 00:06:18,560 Speaker 2: premiums spiral. 112 00:06:20,120 --> 00:06:24,119 Speaker 1: Now, Glaxo Smith Klein CEO Emma Walmsley is stepping down 113 00:06:24,160 --> 00:06:28,240 Speaker 1: after nine years leading the pharmaceutical giant, but her departure 114 00:06:28,320 --> 00:06:32,000 Speaker 1: means the UK is losing another high profile female business leader. 115 00:06:32,160 --> 00:06:34,440 Speaker 1: Bloomberg's Tiba at A Bio has the story. 116 00:06:35,080 --> 00:06:38,960 Speaker 9: Despite efforts to attract more female CEOs to the FOOTSYA Index, 117 00:06:39,080 --> 00:06:42,479 Speaker 9: the number will remain at just nine after GSK CEO 118 00:06:42,680 --> 00:06:46,440 Speaker 9: Emma Walmsley's exit. The lack of women leading the country's 119 00:06:46,480 --> 00:06:50,400 Speaker 9: biggest firms has been criticized by campaigners who say businesses 120 00:06:50,440 --> 00:06:54,480 Speaker 9: have boosted border representation but failed to crack leadership roles. 121 00:06:55,200 --> 00:06:58,359 Speaker 9: Some of the country's biggest companies did appoint women to 122 00:06:58,400 --> 00:07:02,560 Speaker 9: top jobs this year, in uading, WPP, National Grid and 123 00:07:02,560 --> 00:07:06,560 Speaker 9: in Tain, but their arrivals come alongside departures from other 124 00:07:06,680 --> 00:07:10,080 Speaker 9: senior figures, such as Pets at Home CEO Lissa McGowan, 125 00:07:10,320 --> 00:07:13,400 Speaker 9: who left this month and Rita Rose Gang will step 126 00:07:13,440 --> 00:07:18,160 Speaker 9: down from shopping center Landlord Hammerson in twenty twenty six. Walmsley, 127 00:07:18,200 --> 00:07:19,920 Speaker 9: who will leave her role at the end of the year, 128 00:07:20,080 --> 00:07:23,240 Speaker 9: was a prominent fixture, leading the firm through the pandemic 129 00:07:23,400 --> 00:07:26,520 Speaker 9: and the separation of its consumer business in London. 130 00:07:26,560 --> 00:07:28,160 Speaker 4: Tea Adebay a Bloomberg Radio. 131 00:07:28,640 --> 00:07:31,400 Speaker 2: Those are your top stories on the program this morning. 132 00:07:31,440 --> 00:07:34,520 Speaker 2: Looking at the markets, the MSCIS Pacific Index is three 133 00:07:34,600 --> 00:07:37,040 Speaker 2: tenths of one percent higher this morning. We're keeping eyeing 134 00:07:37,080 --> 00:07:40,920 Speaker 2: those goal prices up eight tenths of one percent to 135 00:07:41,440 --> 00:07:44,320 Speaker 2: three thousand, eight hundred and sixty four dollars, just half 136 00:07:44,440 --> 00:07:47,880 Speaker 2: the highs that have been hit into trading, but still 137 00:07:47,880 --> 00:07:50,880 Speaker 2: hovering close to us. The Bloomberg Dollar Sparta Index holding 138 00:07:50,880 --> 00:07:52,880 Speaker 2: on to its weakness yesterday down slightly on the day, 139 00:07:52,880 --> 00:07:55,840 Speaker 2: so the Euro's training at one seventeen thirty This morning, 140 00:07:55,880 --> 00:07:59,040 Speaker 2: eurostocks fifty futures are down by two tenths of one percent. 141 00:08:00,160 --> 00:08:01,760 Speaker 1: Now, in a moment, we'll bring you more on the 142 00:08:01,840 --> 00:08:05,720 Speaker 1: latest regarding risks of a US government shut down, but 143 00:08:05,840 --> 00:08:08,760 Speaker 1: before we discuss that, something else has caught our ride 144 00:08:08,800 --> 00:08:11,560 Speaker 1: this morning. Are you decent at games, Stephen Carroll? 145 00:08:11,960 --> 00:08:15,320 Speaker 2: No, horrible at them, is the short answer. But actually 146 00:08:15,600 --> 00:08:17,880 Speaker 2: this really appeals to me because it sort of combines 147 00:08:17,920 --> 00:08:21,400 Speaker 2: a few different ways of exercising parts of your brain. 148 00:08:21,520 --> 00:08:25,200 Speaker 2: So Alpha Dot Alpha Dots is the Bloomberg's new daily 149 00:08:25,720 --> 00:08:29,400 Speaker 2: word game. So it's sort of a cross between a 150 00:08:29,440 --> 00:08:34,560 Speaker 2: word puzzle, a crossword, and then also a chart. So 151 00:08:34,679 --> 00:08:37,080 Speaker 2: I'll try to explain it and see if you follow me, right, Okay, 152 00:08:37,080 --> 00:08:39,480 Speaker 2: So their cryptic clues like a crossword, suggest the worth 153 00:08:39,480 --> 00:08:41,360 Speaker 2: you're trying to guess. You know how many letters it is, 154 00:08:41,640 --> 00:08:43,120 Speaker 2: and you have to try and fill in the blanks. 155 00:08:43,120 --> 00:08:46,040 Speaker 2: What you get, in addition is a line graph which 156 00:08:46,240 --> 00:08:49,440 Speaker 2: on the vertical axis goes from A at the top 157 00:08:49,480 --> 00:08:51,400 Speaker 2: to Z at the bottoms. The dot on the chart 158 00:08:51,400 --> 00:08:53,400 Speaker 2: will tell you whether it's closer to the start or 159 00:08:53,440 --> 00:08:55,679 Speaker 2: the end of the alphabet, and of course they're all 160 00:08:55,679 --> 00:08:57,800 Speaker 2: relative as well. You also have a chance to guess, 161 00:08:57,800 --> 00:09:00,280 Speaker 2: so you can basically say, okay, is there an A 162 00:09:00,600 --> 00:09:02,439 Speaker 2: in the world, and it will tell you where it 163 00:09:02,559 --> 00:09:04,080 Speaker 2: is made of A fair idea if it was an A, 164 00:09:04,120 --> 00:09:05,240 Speaker 2: because it's going to be at the top of the 165 00:09:05,320 --> 00:09:07,480 Speaker 2: chart as well. But that's a mistake I made the 166 00:09:07,520 --> 00:09:10,360 Speaker 2: first time I played it. Two but it is you 167 00:09:10,400 --> 00:09:12,440 Speaker 2: can sort of piece together at the bits. Then I 168 00:09:12,480 --> 00:09:14,400 Speaker 2: have to say, when I was trying it, I either 169 00:09:14,559 --> 00:09:16,480 Speaker 2: got the word immediately based on the clue or I 170 00:09:16,520 --> 00:09:19,760 Speaker 2: had absolutely no idea, so I made quite a lot 171 00:09:19,800 --> 00:09:24,640 Speaker 2: of use of the plot feature to try and guess 172 00:09:24,679 --> 00:09:29,760 Speaker 2: what the word was. Really diverse subjects in it, lots 173 00:09:29,760 --> 00:09:30,360 Speaker 2: to play. 174 00:09:30,120 --> 00:09:33,080 Speaker 1: With, and it's really good fun. It is way harder 175 00:09:33,120 --> 00:09:35,000 Speaker 1: to explain this game than it is just to play. 176 00:09:35,280 --> 00:09:38,120 Speaker 1: I got it once I played it, and yeah, it's 177 00:09:38,400 --> 00:09:41,959 Speaker 1: I don't know. So many people are addicted to daily crosswords. 178 00:09:42,000 --> 00:09:43,600 Speaker 1: Great for your brain, yes. 179 00:09:43,480 --> 00:09:45,320 Speaker 2: And this is a daily game as well, so you 180 00:09:45,320 --> 00:09:46,559 Speaker 2: can all join in and play, and of course you 181 00:09:46,600 --> 00:09:48,840 Speaker 2: can share how you get on how long it takes 182 00:09:48,840 --> 00:09:50,920 Speaker 2: it to solve it. How many hints you needed? I 183 00:09:50,960 --> 00:09:52,320 Speaker 2: needed a loss to try and get to the end 184 00:09:52,360 --> 00:09:55,480 Speaker 2: as well. Bloomberg dot Com forward slash alpha dots to play. 185 00:09:57,000 --> 00:10:00,200 Speaker 1: Now, let's bring you more on the looming guv meant 186 00:10:00,240 --> 00:10:02,560 Speaker 1: shut down in the United States after a meeting of 187 00:10:02,600 --> 00:10:07,200 Speaker 1: congressional leaders and President Trump which ended without agreements. 188 00:10:07,600 --> 00:10:09,920 Speaker 2: A little earlier, we spoke to our senior US Government editor, 189 00:10:09,960 --> 00:10:12,920 Speaker 2: Derek Woolbank and started by asking him whether a deal 190 00:10:13,040 --> 00:10:15,640 Speaker 2: could be found before tomorrow's deadline. 191 00:10:16,559 --> 00:10:18,440 Speaker 8: Well, Steve and I would say at this point, there 192 00:10:18,440 --> 00:10:21,280 Speaker 8: are certainly exit ramps. There are ways that you can 193 00:10:21,320 --> 00:10:24,439 Speaker 8: get to a conclusion without a shutdown, but they are 194 00:10:24,520 --> 00:10:30,280 Speaker 8: becoming increasingly distant. Right now, Republicans and Democrats are locked 195 00:10:30,360 --> 00:10:34,760 Speaker 8: in a stalemate. Democrats are demanding some healthcare money that 196 00:10:34,800 --> 00:10:38,960 Speaker 8: Republicans do not want to give, and right now, I mean, 197 00:10:39,040 --> 00:10:43,559 Speaker 8: it's not even looking like they want to talk seriously. 198 00:10:43,920 --> 00:10:47,680 Speaker 8: Congressional leaders joined President Donald Trump and Vice President JD. 199 00:10:47,840 --> 00:10:49,080 Speaker 4: Vance at the White House. 200 00:10:49,559 --> 00:10:53,640 Speaker 8: Those talks seemed to be a franken candid exchange of views, 201 00:10:54,040 --> 00:10:57,440 Speaker 8: but it doesn't necessarily look like we are any closer 202 00:10:57,440 --> 00:11:00,440 Speaker 8: to a deal as a result of them. Indeed, after 203 00:11:00,520 --> 00:11:06,160 Speaker 8: the meeting, Donald Trump posted something on his social media mocking. 204 00:11:06,000 --> 00:11:07,000 Speaker 4: Chuck Schumer and. 205 00:11:08,800 --> 00:11:12,160 Speaker 8: Hakeem Jeffries and very much not seeming like the sort 206 00:11:12,200 --> 00:11:15,720 Speaker 8: of guy who is looking to try and find seven 207 00:11:15,760 --> 00:11:18,000 Speaker 8: Democratic votes he currently doesn't have. 208 00:11:19,720 --> 00:11:23,200 Speaker 1: So then, in terms of what a shutdown means for 209 00:11:23,480 --> 00:11:27,120 Speaker 1: Donald Trump, for his administration, what might happen? 210 00:11:28,559 --> 00:11:30,960 Speaker 8: Ok, Caroline, I would say in a shutdown, you sort 211 00:11:30,960 --> 00:11:34,040 Speaker 8: of start with the idea that things start off medium 212 00:11:34,080 --> 00:11:37,320 Speaker 8: bed and then get worse as time progresses. And you 213 00:11:37,320 --> 00:11:40,560 Speaker 8: could say that in a number of different ways, but basically, 214 00:11:42,240 --> 00:11:48,079 Speaker 8: things start to have consequences, let's say in phases. And 215 00:11:49,440 --> 00:11:53,040 Speaker 8: so initially you'll sit there and say, Okay, national parks 216 00:11:53,080 --> 00:11:58,000 Speaker 8: are shut down, and you're evicting people from federal campsites, 217 00:11:58,040 --> 00:12:00,920 Speaker 8: and it's things like that. Event you get to the 218 00:12:00,960 --> 00:12:05,000 Speaker 8: point where US troops and foreign deployments aren't getting paid, 219 00:12:05,600 --> 00:12:09,240 Speaker 8: and members of the military might be missing mortgage payments 220 00:12:09,280 --> 00:12:12,960 Speaker 8: and things of that nature, and so your political consequences 221 00:12:13,000 --> 00:12:17,000 Speaker 8: start stepping up and stepping up. You have difficulties in 222 00:12:17,040 --> 00:12:21,120 Speaker 8: the US government, economic data that markets rely on may 223 00:12:21,160 --> 00:12:24,280 Speaker 8: not be released on time, other things of that nature. 224 00:12:24,320 --> 00:12:27,280 Speaker 8: The more that this goes on, the more it gets difficult, 225 00:12:27,320 --> 00:12:30,040 Speaker 8: and one of the key questions is going to be 226 00:12:30,200 --> 00:12:35,800 Speaker 8: who do US voters blame for the shutdown, particularly independent voters. 227 00:12:35,840 --> 00:12:40,960 Speaker 8: Now I've seen some polling initially suggest that maybe by 228 00:12:41,000 --> 00:12:45,760 Speaker 8: a small margin, independent voters are currently saying Republicans are 229 00:12:45,760 --> 00:12:48,560 Speaker 8: a little bit more responsible. But a lot of this 230 00:12:48,640 --> 00:12:51,520 Speaker 8: stuff does come down to a pox on both their houses. 231 00:12:51,920 --> 00:12:56,800 Speaker 8: And we talked to Lindsey Graham, the Republican Senator from 232 00:12:56,840 --> 00:12:59,200 Speaker 8: South Carolina, and one of the things he was saying 233 00:12:59,640 --> 00:13:02,720 Speaker 8: was that Republicans, in his view, have learned a lesson 234 00:13:02,840 --> 00:13:06,000 Speaker 8: about asking for policy things they don't have the votes 235 00:13:06,040 --> 00:13:09,480 Speaker 8: for in context of a shutdown, saying that when you 236 00:13:09,640 --> 00:13:13,320 Speaker 8: play that game, you only wind up getting burned and 237 00:13:13,440 --> 00:13:17,959 Speaker 8: have to eventually eat funding the government for nothing in exchange. 238 00:13:18,800 --> 00:13:21,560 Speaker 2: Yeah, okay, So the consequence is potentially big politically, And 239 00:13:21,600 --> 00:13:24,040 Speaker 2: of course, the first piece of economic data that could 240 00:13:24,040 --> 00:13:26,360 Speaker 2: be disrupted by this is the jobs reports and the 241 00:13:26,400 --> 00:13:31,000 Speaker 2: initial jobless claims numbers to come later this week. In 242 00:13:31,240 --> 00:13:34,439 Speaker 2: the meantime, are there issues that we should be watching 243 00:13:34,440 --> 00:13:37,560 Speaker 2: in these negotiations where we might see progress or the 244 00:13:37,640 --> 00:13:39,079 Speaker 2: key blocking of any deal. 245 00:13:40,600 --> 00:13:42,719 Speaker 8: Well, the thing that I'm looking for is what's your 246 00:13:42,800 --> 00:13:46,560 Speaker 8: possible exit ramp. And the most obvious one that I 247 00:13:46,679 --> 00:13:50,959 Speaker 8: see that could be taken if people wanted to take it, 248 00:13:51,000 --> 00:13:54,400 Speaker 8: that's my big caveat, if people wanted to take it, 249 00:13:54,440 --> 00:13:59,439 Speaker 8: is the idea of trying to extend some Obamacare subsidy 250 00:13:59,520 --> 00:14:03,400 Speaker 8: money and do that a little bit for maybe a 251 00:14:03,480 --> 00:14:06,600 Speaker 8: year or two years or something like that. There are 252 00:14:06,600 --> 00:14:09,200 Speaker 8: some cost controls you could put that on, and if 253 00:14:09,200 --> 00:14:13,400 Speaker 8: that were seriously being discussed, it's possible that lawmakers could 254 00:14:13,400 --> 00:14:17,959 Speaker 8: agree to a short term stopgap bill to kind of 255 00:14:18,040 --> 00:14:21,040 Speaker 8: keep the government open while they worked on the legislative 256 00:14:21,120 --> 00:14:23,720 Speaker 8: language of that. So that's one of those things that 257 00:14:23,800 --> 00:14:28,640 Speaker 8: could be an exit ramp, but right now we don't 258 00:14:28,680 --> 00:14:32,000 Speaker 8: see people looking at taking that. The biggest caveat of 259 00:14:32,040 --> 00:14:33,920 Speaker 8: all that I have to say, though, is across all 260 00:14:33,960 --> 00:14:38,600 Speaker 8: of these sort of US government examples of people hitting 261 00:14:38,640 --> 00:14:42,240 Speaker 8: themselves in the face governmentally, you get a lot of 262 00:14:42,440 --> 00:14:46,280 Speaker 8: no's before you get to yes. And so, you know, 263 00:14:46,320 --> 00:14:49,800 Speaker 8: it's very true that old axiom it's always darkest before 264 00:14:49,840 --> 00:14:52,840 Speaker 8: the dawn, but that really is the case here. A 265 00:14:52,880 --> 00:14:57,160 Speaker 8: lot of the times, you know, US negotiations become a 266 00:14:57,200 --> 00:15:00,800 Speaker 8: sort of vicar of Dibley's Sketch where it's no no no, no, no, no, no, Yes. 267 00:15:01,920 --> 00:15:04,320 Speaker 2: Our senior US government out of Derek worldbang, proving that 268 00:15:04,360 --> 00:15:06,480 Speaker 2: he can be funny in every culture by the sound 269 00:15:06,520 --> 00:15:10,320 Speaker 2: of things as well, getting a very specifically British reference 270 00:15:10,320 --> 00:15:12,760 Speaker 2: into the end of our conversation a little earlier. 271 00:15:14,760 --> 00:15:15,440 Speaker 4: Stay with us. 272 00:15:15,560 --> 00:15:18,440 Speaker 2: More from Bloomberg Daybreak Europe coming up after this. 273 00:15:20,200 --> 00:15:22,280 Speaker 1: Now, let's turn our attention to the Middle East. So 274 00:15:22,320 --> 00:15:25,840 Speaker 1: the US President and Israel's Prime minister agreed a plan 275 00:15:25,960 --> 00:15:28,880 Speaker 1: to end the war in Gaza, but there's no indication 276 00:15:29,000 --> 00:15:32,920 Speaker 1: yet whether her mass will accept the offer. Joining us. 277 00:15:33,160 --> 00:15:35,840 Speaker 1: Now is our Middle East and Africa Managing editor Paul 278 00:15:36,040 --> 00:15:39,360 Speaker 1: Wallace for more on this story, Paul, Hello, there are 279 00:15:39,440 --> 00:15:43,760 Speaker 1: twenty points on this plan. What is actually new compared 280 00:15:43,760 --> 00:15:45,480 Speaker 1: to previous attempts to end the war? 281 00:15:47,000 --> 00:15:48,640 Speaker 4: Hi, Carolyne Well. 282 00:15:48,720 --> 00:15:53,000 Speaker 10: One of the things that is new is Trump setting 283 00:15:53,120 --> 00:15:55,600 Speaker 10: sort of a firm deadline for ending this war, which 284 00:15:55,640 --> 00:15:59,600 Speaker 10: is that it would that would happen within seventy two 285 00:15:59,640 --> 00:16:04,560 Speaker 10: hours of both sides accepting this proposal, which now means 286 00:16:04,560 --> 00:16:08,800 Speaker 10: Hamas because Israel has accepted it, it would definitively see 287 00:16:09,000 --> 00:16:14,200 Speaker 10: Israel pulling its forces back from Gaza, not immediately, it 288 00:16:14,240 --> 00:16:17,520 Speaker 10: would be done in stages, and Israel would maintain a 289 00:16:17,560 --> 00:16:22,120 Speaker 10: buffer zone within the Palestinian territory for an indefinite period. 290 00:16:23,400 --> 00:16:30,480 Speaker 10: The language also made clear that the US, you know, 291 00:16:30,560 --> 00:16:33,640 Speaker 10: believes Gazans should be allowed to stay in the territory. 292 00:16:33,720 --> 00:16:35,240 Speaker 4: That there's you know, there's no. 293 00:16:35,200 --> 00:16:38,480 Speaker 10: More talk of turning it into a riviera, as Trump 294 00:16:38,560 --> 00:16:40,960 Speaker 10: did back in earlier in the year just after he 295 00:16:41,040 --> 00:16:44,080 Speaker 10: returned to power. In fact, the wording now says that 296 00:16:44,160 --> 00:16:49,160 Speaker 10: it encourages Palestinians to stay there, but that if they 297 00:16:49,240 --> 00:16:52,040 Speaker 10: do leave voluntarily, they must be allowed to come back in. 298 00:16:52,520 --> 00:16:56,920 Speaker 10: That's different the ramping up of AID two and Trump's 299 00:16:56,920 --> 00:17:00,360 Speaker 10: plants specifying that that will be done through UN agencies. Again, 300 00:17:00,680 --> 00:17:04,760 Speaker 10: that's a change and sort of implies that the the GHF, 301 00:17:04,880 --> 00:17:09,040 Speaker 10: the sort of Israeli linked group that has been managing 302 00:17:09,080 --> 00:17:13,920 Speaker 10: AID since an Israeli blockade ended a few months ago, 303 00:17:14,640 --> 00:17:18,399 Speaker 10: that GHF would no longer be working. So there are 304 00:17:18,480 --> 00:17:21,480 Speaker 10: quite a lot of things in this plan. I think 305 00:17:21,560 --> 00:17:25,119 Speaker 10: it's fair to say that both sides, if they accept this, 306 00:17:26,560 --> 00:17:30,919 Speaker 10: will will have conceded on some points. But obviously the 307 00:17:30,920 --> 00:17:34,960 Speaker 10: big question is what Hamas says. They're studying the proposal. 308 00:17:35,840 --> 00:17:37,600 Speaker 2: Have we heard anything from them yet? I mean, what 309 00:17:37,960 --> 00:17:41,400 Speaker 2: could we did you use that they might respond to this. 310 00:17:42,280 --> 00:17:45,120 Speaker 10: So we've heard nothing beyond that they are studying it, 311 00:17:45,240 --> 00:17:47,840 Speaker 10: and they've not said when they're going to give an answer. 312 00:17:47,920 --> 00:17:52,040 Speaker 4: By there is a lot of thinking that. 313 00:17:51,960 --> 00:17:56,160 Speaker 10: They won't, you know, among analysts, that they won't accept 314 00:17:56,160 --> 00:18:00,600 Speaker 10: this because it's too much. The concessions on part would 315 00:18:00,640 --> 00:18:02,880 Speaker 10: have to be too big. They would have to surrender 316 00:18:02,960 --> 00:18:05,800 Speaker 10: and give up all the hostages that they still hold, 317 00:18:05,880 --> 00:18:08,719 Speaker 10: forty eight of them roughly twenty of whom are alive. 318 00:18:09,040 --> 00:18:15,040 Speaker 10: They'd have to give them up immediately without Israel fully 319 00:18:15,200 --> 00:18:17,879 Speaker 10: withdrawing its forces from Gaza. 320 00:18:17,560 --> 00:18:18,480 Speaker 4: At that point. 321 00:18:18,680 --> 00:18:22,919 Speaker 10: So there's certainly a lot of skepticism, and there are 322 00:18:22,920 --> 00:18:26,200 Speaker 10: already some people saying that this is a bit of 323 00:18:26,280 --> 00:18:30,760 Speaker 10: a cynical plan from both the Americans and Israel that 324 00:18:31,080 --> 00:18:33,880 Speaker 10: you know, will end up making you know, that will 325 00:18:34,000 --> 00:18:38,240 Speaker 10: end up being you know, if Hamas rejects it, then 326 00:18:38,400 --> 00:18:43,720 Speaker 10: it will be presented as something that proves Hamas and 327 00:18:44,840 --> 00:18:48,040 Speaker 10: it is not does not want peace. 328 00:18:47,800 --> 00:18:48,879 Speaker 4: Whereas Israel does. 329 00:18:49,040 --> 00:18:51,960 Speaker 10: So there's a lot of skepticism but it is certainly 330 00:18:52,000 --> 00:18:54,400 Speaker 10: I think the most you know, this is the closest 331 00:18:54,800 --> 00:18:58,800 Speaker 10: we've got to ending this war and achieving a cease 332 00:18:58,840 --> 00:19:01,639 Speaker 10: fire in it in many, many months. 333 00:19:02,640 --> 00:19:06,960 Speaker 1: Okay, so it's significant. What about the involvement of states 334 00:19:07,119 --> 00:19:12,080 Speaker 1: like Cutter and Turkey for this plan maybe potentially to work. 335 00:19:13,119 --> 00:19:17,600 Speaker 10: I think that definitely is important that those you know, 336 00:19:17,680 --> 00:19:20,440 Speaker 10: those countries you've mentioned, Katar, which is a key mediator 337 00:19:20,480 --> 00:19:24,080 Speaker 10: between Hamas and Israel and Turkey and broadly speaking the 338 00:19:24,119 --> 00:19:28,120 Speaker 10: our world, you know, the likes of Saudi Arabia, the UE, 339 00:19:28,400 --> 00:19:31,600 Speaker 10: they are on board with this plan. And it seems Egypt, 340 00:19:31,600 --> 00:19:36,520 Speaker 10: which is another mediator and obviously borders Gaza, it's also 341 00:19:36,640 --> 00:19:40,000 Speaker 10: on board with this. So that might increase the pressure 342 00:19:40,840 --> 00:19:46,240 Speaker 10: on Hamas to to to accept this. I think some 343 00:19:46,280 --> 00:19:50,359 Speaker 10: of that, some of those things I mentioned earlier, the 344 00:19:50,520 --> 00:19:53,399 Speaker 10: wording that says Gardzan should stay or you know, should 345 00:19:53,440 --> 00:19:56,360 Speaker 10: be encouraged to stay in Gaza, and that if they 346 00:19:56,400 --> 00:20:00,280 Speaker 10: do leave, it must be voluntary, voluntary, and then must 347 00:20:00,280 --> 00:20:02,840 Speaker 10: be allowed to return as and when they want to. 348 00:20:03,600 --> 00:20:05,919 Speaker 4: Language like that is important. 349 00:20:05,960 --> 00:20:10,480 Speaker 10: And Trump also spoke about an eventual pathway being created 350 00:20:10,680 --> 00:20:12,160 Speaker 10: for Palestinian statehood. 351 00:20:12,240 --> 00:20:14,040 Speaker 4: Again that language is. 352 00:20:14,160 --> 00:20:20,680 Speaker 10: Very important for other Middle Eastern countries and obviously Palestinians themselves, 353 00:20:20,960 --> 00:20:24,000 Speaker 10: they wanted to see something like that. That's the kind 354 00:20:24,000 --> 00:20:28,480 Speaker 10: of language that is arguably, arguably amounst to a concession 355 00:20:28,920 --> 00:20:32,399 Speaker 10: on Nettinohu's part. And already, you know, there's been some 356 00:20:32,520 --> 00:20:35,359 Speaker 10: criticism within the country that you know, this is the 357 00:20:35,440 --> 00:20:41,000 Speaker 10: kind of language that could you know, increase pressure on 358 00:20:41,080 --> 00:20:44,200 Speaker 10: Israel to eventually accept a Palestinian state, which it does 359 00:20:44,240 --> 00:20:48,359 Speaker 10: not want to do at all. So there's you know, 360 00:20:48,600 --> 00:20:52,280 Speaker 10: there is, as Trump would say it, there's something for 361 00:20:53,040 --> 00:20:57,200 Speaker 10: both warring sides in this. It certainly is key that 362 00:20:57,480 --> 00:21:00,000 Speaker 10: you know, Turkey, Katar and other Middle East and states 363 00:21:00,320 --> 00:21:03,560 Speaker 10: are on board, and that's something that's been a change 364 00:21:03,560 --> 00:21:06,119 Speaker 10: in the last week. Trump met with those states in 365 00:21:06,240 --> 00:21:09,040 Speaker 10: New York on the sidelines of the UN General Assembly 366 00:21:09,119 --> 00:21:12,600 Speaker 10: last Tuesday, and it seemed to be a very constructive 367 00:21:12,640 --> 00:21:16,480 Speaker 10: meeting and much of the plan that was announced yesterday 368 00:21:16,840 --> 00:21:20,960 Speaker 10: or sort of published yesterday, came out of that meeting 369 00:21:21,040 --> 00:21:22,400 Speaker 10: with those states. 370 00:21:23,880 --> 00:21:26,600 Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the 371 00:21:26,680 --> 00:21:29,720 Speaker 2: stories making news from London to Wall Street and beyond. 372 00:21:30,080 --> 00:21:34,040 Speaker 1: Look for us on your podcast feed every morning on Apple, Spotify, 373 00:21:34,119 --> 00:21:36,160 Speaker 1: and anywhere else you get your podcasts. 374 00:21:36,240 --> 00:21:39,280 Speaker 2: You can also listen live each morning on London DAB Radio, 375 00:21:39,320 --> 00:21:42,000 Speaker 2: the Bloomberg Business app, and Bloomberg dot Com. 376 00:21:42,040 --> 00:21:44,840 Speaker 1: Our flagship New York station, is also available on your 377 00:21:44,840 --> 00:21:49,560 Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty. 378 00:21:49,800 --> 00:21:51,120 Speaker 1: I'm Caroline Hepka and. 379 00:21:51,080 --> 00:21:53,720 Speaker 2: I'm Stephen Carroll. Join us again tomorrow morning for all 380 00:21:53,720 --> 00:21:56,160 Speaker 2: the news you need to start your day right here 381 00:21:56,200 --> 00:22:01,080 Speaker 2: on Bloomberg day Break Europe f