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

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Speaker 1: Day bake At podcast, available every morning on Apple, Spotify

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Speaker 1: or whatever you listen. It's Thursday, the eleventh of July

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Speaker 1: here in London. I'm Caroline Hepkin.

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

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Speaker 2: of Joe Biden go cold on the US President's bid

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Speaker 2: for reelection as a Democratic senator calls on him to withdraw, the.

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Speaker 1: UK overhauls its listings, regime, and a major push to

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Speaker 1: lumore IPOs to London.

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Speaker 2: Plus how bombs tied to toy drones are helping to

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Speaker 2: rewrite the economics of war. We have a Bloomberg Business

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Speaker 2: Week special report on how Ukraine's low cost flying arsenal

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Speaker 2: is changing the way conflicts are fought.

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

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Speaker 2: US President Joe Biden is facing mounting pressure from within

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Speaker 2: his own party to step aside. Democrat Peter Welch became

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Speaker 2: the first sitting Senator to directly endorse replacing the President

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Speaker 2: and joins a growing number of House lawmakers and calling

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Speaker 2: on him to step aside. Meanwhile, Axios is reporting that

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Speaker 2: Senate Majority Leader Chuck Schumer is open to replacing Joe

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Speaker 2: Biden as the Democrats nominee, and, in a further blow

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Speaker 2: to the president, former House Speaker Nancy Pelosi told MSNBC's

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Speaker 2: Morning Joe program on Wednesday that Biden needs to make

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Speaker 2: a decision quickly.

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Speaker 3: It's up to the president to subside if he is

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Speaker 3: going to run. We're all encouraging him to make that

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Speaker 3: decision because time is running short. I want him to

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Speaker 3: do whatever he decides to do, and that's that's the

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Speaker 3: way it is. Whatever he decides, we go with.

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Speaker 2: The sense of disquiet in the Democratic Party from Pelosi

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Speaker 2: and others was further amplified by an article in The

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Speaker 2: New York Times by George Clooney yesterday titled I love

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Speaker 2: Joe Biden, but we need a new nominee. A lifelong

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Speaker 2: Democrat who helped raise thirty million dollars for the president

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Speaker 2: at an event last month, Clooney wrote, we can put

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Speaker 2: our heads in the sand and pray for a miracle

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Speaker 2: in November, or we can speak the truth well.

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Speaker 1: The president's domestic issues loom large over his hosting of

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Speaker 1: the NATO summit. Biden called Britain the not tying the

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Speaker 1: NATO alliance together. In his first meeting with the new

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Speaker 1: Prime Minister, Kiss Darmer, world leaders are gathering in Washington

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Speaker 1: for the Military Blocks seventy fifth anniversary summit. The US

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Speaker 1: leader noted Britain's key role as an ally on a

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Speaker 1: wide range of issues.

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Speaker 4: I kind of see you guys as the not tying

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Speaker 4: transplanting allis together closer. You are on Europe more, You're

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Speaker 4: engaged for more because we know where in your home

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Speaker 4: and we know what we are in all the country.

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Speaker 1: That was ZERUS person Joe Biden there. Kiss Darmer, who

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Speaker 1: agreed with Biden's comments, has also taken the rest step

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Speaker 1: of bringing his European relations Minister Nick Thomas Simmons to

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Speaker 1: the NATO gathering in order to the new UK government's

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Speaker 1: relationship with European leaders.

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Speaker 2: The UK's financial regulator is overhauling listing rules. It's part

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Speaker 2: of a long running push to try and drive IPOs

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Speaker 2: back into London. James Wilcock has more.

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Speaker 5: We do not believe the status quo is an option.

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Speaker 5: That's how the boss of the Financial Conduct Authority put it.

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Speaker 5: London has been falling behind as a financial capital, with

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Speaker 5: new rising stars like armed dusing to list in the

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Speaker 5: US SO now the regulator is finalizing its reforms, allowing

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Speaker 5: listings in dual countries, letting bosses make more decisions without

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Speaker 5: shareholders voting, and opening up two tier shares, moves likely

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Speaker 5: to empower founders and venture capitalists. The rules take effect

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Speaker 5: in just eighteen days, but with growth being a central

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Speaker 5: mission of the new government, politicians are watching to see

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Speaker 5: if the regulators changes deliver. In London, James Wilcock Blomberg Radio.

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Speaker 1: Well that new government has also promised to fix the

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Speaker 1: UK's ailing public services, but an unforl seen shortfall in

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Speaker 1: the national finances could make that even more difficult. Potoomberg's

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Speaker 1: Tia Adebayo has the details.

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Speaker 6: Newly minted Chancellor Rachel Reeves has big plans for galvanizing

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Speaker 6: the economy, but she may not have bet on a

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Speaker 6: budgetary whole of up to thirty billion pounds. Private sector

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Speaker 6: economists are warning that any economic upside from labour policies

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Speaker 6: risks being wiped out by downgrades to forecast growth. Government

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Speaker 6: economic plans are routed in a twenty twenty five to

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Speaker 6: one point nine percent growth prediction from the Office for

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Speaker 6: Budget Responsibility but economists surveyed by Bloomberg put the figure

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Speaker 6: at a lower one point three percent. Their warnings expose

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Speaker 6: the precarious nature of public finances Whilst the government tries

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Speaker 6: to generate funding for the crumbling public sector, it's an

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Speaker 6: economic reality which could make it even harder for Reeves's

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Speaker 6: self declared growth centered national mission to be achieved. In London,

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Speaker 6: teaa Adebayo Bloomberg Radio.

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Speaker 2: In France, Emmanuel Macrons called on parties from the center

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Speaker 2: right to the center left to join a broad coalition

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Speaker 2: and exclude the far left and far right from government.

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Speaker 2: In his first detailed statement since the elections, the French

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Speaker 2: president appealed to parties that represent what he described as

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Speaker 2: republican forces to build a solid majority. Macron's definition excludes

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Speaker 2: the far left France On Bowed Party as well as

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Speaker 2: the far right National Rally. The statement also confirmed the

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Speaker 2: president won't name a prime minister until political negotiations reached

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Speaker 2: some sort of conclusion. Sunday's second round vote failed to

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Speaker 2: produce a clear majority for any party.

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Speaker 1: Now Our Quigos founder Bill Wong has been convicted of

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Speaker 1: fraud and market manipulation after a two month trial in

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Speaker 1: the US. The company's former CFO, Patrick Halligan, was also

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Speaker 1: found guilty by the Manhattan Court jury. The ruling comes

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Speaker 1: after both men were accused of defrauding counterparties, including Credits

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Speaker 1: Suite and UBS by lying to them about trading activity

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Speaker 1: and risk exposure. Bloombergs. Vonnie Quinn says, the case is

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Speaker 1: a victory for US authorities.

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Speaker 7: It's basically a clean sweep for the US for US

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Speaker 7: Attorney Damian Williams, a massive success following on the heels

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Speaker 7: of the Handbagmann free conviction. So essentially, what the prosecution

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Speaker 7: was saying was that Bill Wong in Archaeos was running

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Speaker 7: an enterprise right like any other kind of criminal enterprise.

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Speaker 7: He broke the Rico statute, he manipulated stocks higher, he

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Speaker 7: continued to try to a mass capacity, and levered himself

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Speaker 7: to the extent that it was always going to be

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Speaker 7: a wash.

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Speaker 1: So that was Bimberg's volley. Quinn speaking there now, Bill

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Speaker 1: Wong and Patrick Halligan a weight sentencing on the twenty

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Speaker 1: eighth of October. One remains free on a one hundred

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Speaker 1: million dollar bond, whilst Halligan is free on a million

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Speaker 1: dollar bond.

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Speaker 2: England's men's football team are through to their first ever

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Speaker 2: major tournament final on foreign soil. They beat the Netherlands

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Speaker 2: two to one in the last four of Euro twenty

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Speaker 2: twenty four to set up a trophy deciding slash with Spain.

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Speaker 2: Substitute Ali Watkins scored a ninetieth minute winner to book

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Speaker 2: the England side a place in the decider. Manager Garett

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Speaker 2: Southgate says he's proud to be making more history with

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Speaker 2: his team.

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Speaker 8: I think we've given our supporters some of the best

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Speaker 8: nights over the last fifty years. But from our point

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Speaker 8: of view, we're not finished. We've got the greatest possible

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Speaker 8: test to prepare for. We came here to try and

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Speaker 8: win the tournament and that's sill our.

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Speaker 2: Aim, that's thing Men's Garrett Sadgate speaking there. The final

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Speaker 2: will take place in Berlin on Sunday, where are the

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Speaker 2: three lines will face Spain in a moment.

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Speaker 1: We're going to get more on the Democrats and even

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Speaker 1: Hollywood turning on President Biden are really questioning his reelection campaign.

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Speaker 1: Plus special reporting on Ukraine with an eye opening Bloomberg

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Speaker 1: Originals documentary on how the drone war is changing the

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Speaker 1: economics of conflict. But first I also want to talk

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Speaker 1: a little bit about the stock market shakeup. I think

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Speaker 1: it's really interesting that the FCA has come out with

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Speaker 1: these new regulations.

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Speaker 2: Yeah, these are rules that are going to come into

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Speaker 2: force from the end of July that are going to well,

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Speaker 2: the goal is anyway to try and boost the number

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Speaker 2: of IPOs and London in pursuit of what everyone tells

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Speaker 2: us the UK needs more of growth.

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Speaker 1: Yeah. Absolutely, Look, it's been widely understood that one of

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Speaker 1: the UK's problems has been the stock market, the lack

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Speaker 1: of IPOs, the inability to get the kind of investment

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Speaker 1: capital that the US does. The labor government, I will

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Speaker 1: remind people if they haven't read the manifesto in detail,

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Speaker 1: does talk about a new Regulatory Innovation Office, basically new

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Speaker 1: metrics for the regulators in Britain. In other words, that

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Speaker 1: they would have to show demonstrate progress towards their secondary

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Speaker 1: objective of growth and competitiveness. So it's interesting that there

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Speaker 1: is pressure on the regulators to do more. The first changes,

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Speaker 1: the changes that the FCA is announcing today, they first

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Speaker 1: of course came up and they started under the Conservative government.

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Speaker 1: They are meant to be the biggest shakeup in list

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Speaker 1: rules in thirty years in Britain. But the regulators have

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Speaker 1: got a lot of issues on their plate already, the

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Speaker 1: new consumer mandate for example. And the major question I

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Speaker 1: would say is whether it's going to actually deliver because

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Speaker 1: a year ago there was also talk about the Mansion

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Speaker 1: House Compact around getting much more pension money going into

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Speaker 1: unlisted UK companies. You know, eleven pension providers did that deal,

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Speaker 1: and that is basically the anniversary is about now and

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Speaker 1: nobody's really come out to say that that has been

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Speaker 1: a decisive win. So the question is is this FCA

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Speaker 1: shakeup going to work?

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Speaker 2: Yeah, of course the results of this is going to

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Speaker 2: be very closely watched. Let's bring you more details next though.

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Speaker 2: On our top story, and this the Vermount Democratic Senator

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Speaker 2: Peter Welch becoming the first sitting senator to call for

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Speaker 2: Joe Biden to withdraw from November's election race. It comes

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Speaker 2: as screen engine George Clooney has summed up the mood

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Speaker 2: in Hollywood saying that dam has broken. Joining us now

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Speaker 2: from Marblin Books managing out of Derek Worldbank. Derek, great

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Speaker 2: to have you with us. So we have two op

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Speaker 2: eds pressing for change, one from Senator another from George Clooney.

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Speaker 2: How much impact will this have?

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Speaker 9: Well, I think the Senator may be a little bit

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Speaker 9: more substantial than George Clooney's, although I can tell you

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Speaker 9: that there are reports out that the Biden campaign tried

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Speaker 9: hard to prevent you know, Clooney's op ed from coming out.

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Speaker 9: I think, realistically, though, what you're looking at is a

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Speaker 9: bit of a you know, a continued ground swell of

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Speaker 9: skeptical voices of where Joe Biden is right now, what

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Speaker 9: he's able to do, and candidly a lot of fear

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Speaker 9: within the Democratic Party and other folks who are not

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Speaker 9: in the pro Trump camp that Biden may not be

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Speaker 9: strong enough to press the case against Donald Trump, and

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Speaker 9: then associated with that questions about how he would be

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Speaker 9: able to deal with the next four years, especially the

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Speaker 9: further out into that that you get all of this

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Speaker 9: being fueled by a debate performance that was less than satisfactory,

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Speaker 9: shall we say. I do think that that every single

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Speaker 9: moment that you see Biden from here forward is going

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Speaker 9: to be viewed in part through this lens.

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Speaker 1: Right.

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Speaker 9: People are going to be watching his every move, how

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Speaker 9: he acts, how he speaks, and all of that is

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Speaker 9: going to take on a higher significance.

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Speaker 1: Yeah, And he's due to hold a press conference today.

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Speaker 1: He's also doing a series of interviews. He did one

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Speaker 1: with ABC. I think he's got one scheduled next week

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Speaker 1: as well. I mean, what are we expecting, as you say,

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Speaker 1: from those performances closely watched?

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Speaker 9: Yeah, I think that's exactly right. You know, he does

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Speaker 9: have a press conference, It's going to be a really,

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Speaker 9: really major event that I think the whole world is

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Speaker 9: going to be watching. Frankly, and again, you know that

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Speaker 9: this is one of those things where the President will

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Speaker 9: want to come out and talk about NATO, He'll want

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Speaker 9: to come out and talk about Ukraine, He'll want to

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Speaker 9: talk about countering Russia, He'll want to talk about countering China,

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Speaker 9: all those sorts of things. And what a lot of

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Speaker 9: people will be watching for are any of those moments

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Speaker 9: like he had during the debate where he you know,

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Speaker 9: repeatedly stumbled, seemed to have lost his way, go off

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Speaker 9: on non secuitars, et cetera. That's going to be where

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Speaker 9: a lot of the focus is already. That's not where

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Speaker 9: the White House wants it to be. Let's start there.

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Speaker 9: But you know, I've said for a while now, and

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Speaker 9: I would stick with this, like the way to counter

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Speaker 9: questions are you up to the challenge is to go

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Speaker 9: be up to the challenge? Right. If Biden sits there

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Speaker 9: and has strong after strong after strong performance, I mean,

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Speaker 9: really starts taking the message to Trump, starts to turn

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Speaker 9: around those poll numbers, this is a problem that maybe

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Speaker 9: solves itself. If he cannot do that, this is a

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Speaker 9: problem that gets worse with time.

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Speaker 2: Okay, Derek Wellbank, thank you very much for bring us

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Speaker 2: today on that story. That's our managing.

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Speaker 1: After Derek Wellbank there, well he mentioned the US President

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Speaker 1: might want to talk about Ukraine, and obviously NATA is happening.

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Speaker 1: And now to Bloomberg's in depth reporting on how a

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Speaker 1: four hundred dollars drone is rewriting the economics of war

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Speaker 1: in Ukraine. Joining us now from Berlin. It's Bloomberg's Jake Ridnitsky,

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Speaker 1: who's the reporter behind this exclusive story. Jake, I read

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Speaker 1: the piece and I also watched the Bloomberg Originals documentary

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Speaker 1: that has come out accompanying it. It's about thirteen minutes long.

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Speaker 1: It's extraordinary. You see the drones being made in these workshops,

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Speaker 1: being tested, then deployed. How has Ukraine built this wartime industry?

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Speaker 10: Well, one of the most fascinating things for me was

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Speaker 10: to meet the people who really emerged out of nowhere

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Speaker 10: to produce what has become maybe the most essential weapons

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Speaker 10: in the war. Alexey Babenko was literally a steampunk street

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Speaker 10: performer before the Russians invaded. He started off with some

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Speaker 10: duct tape C four and a drone that you can

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Speaker 10: buy at Walmart, and now he's running one of the

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Speaker 10: country's top five drone producers. He's just twenty five years old.

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Speaker 10: Francisco Sarah Martin used to work on a project to

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Speaker 10: send aid to hard to reach African villages by drone.

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Speaker 10: Now he makes drones that target Russian oil refineries. There

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Speaker 10: are over one hundred drone producers that have popped up

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Speaker 10: in Ukraine since the Russian invasion, and what they all

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Speaker 10: have in common is they rely on off the shelf components,

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Speaker 10: a lot of which come from China, and they're very,

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Speaker 10: very cheap.

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Speaker 2: So how is this changing the economics of war? You know,

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Speaker 2: this is a decision about getting something that's very cheap

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Speaker 2: and very effective versus you know, a three million dollar tank.

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Speaker 10: Yeah, I mean, Babenko's drones cost about four hundred dollars

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Speaker 10: and two or three of them can take out a tank.

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Speaker 10: The most starket example is the Russian black sea fleet,

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Speaker 10: which has been rendered pretty much useless due to Ukrainian

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Speaker 10: sea based drones. So I think militaries are going to

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Speaker 10: have to think long and hard about whether it makes

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Speaker 10: sense to feel these really expensive, big ticket items that

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Speaker 10: can be easily taken out by something that you make

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Speaker 10: in a garage. Ukraine.

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Speaker 1: Yeah, I was going to say. The other extraordinary contrast

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Speaker 1: is the sort of technologies. You say when Ukraine and

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Speaker 1: the war there is also described as being a lot

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Speaker 1: like the trenches of World War One.

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Speaker 10: That's quite a contrast, yeah, And I mean for soldiers

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Speaker 10: on the front, I guess that's an accurate description. The

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Speaker 10: front has been fairly static in the last several months.

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Speaker 10: One way it does differ from World War One, though,

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Speaker 10: is that both sides can see everything that's happening, and

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Speaker 10: they can see that for miles beyond the trenches, so

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Speaker 10: it really lifts the fog of war. They can strike

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Speaker 10: with precision, and that makes it really hard to mass

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Speaker 10: troops or move big amounts of equipment. And that's all

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Speaker 10: because of drones, I think, But for grunts, I guess.

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Speaker 10: The main effect is that you know, you can't even hide.

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Speaker 10: There's no where to hide now, so it's probably even

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Speaker 10: more perilous than now World War One.

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