WEBVTT - UPDATE: UK Inflation Cools & 'Weaponizing Climate Change' 0:00:02.400 --> 0:00:05.320 Good morning. It's Wednesday, the twentieth of September here in London. 0:00:05.320 --> 0:00:08.960 This is the Bloomberg Daybrecate podcast. I'm Caroline Hepka and. 0:00:08.880 --> 0:00:11.280 I'm Stephen Carroll. Coming up today. The rate of UK 0:00:11.360 --> 0:00:15.280 inflation unexpectedly cools, raising the prospect that interest rates could 0:00:15.320 --> 0:00:16.280 be close to their peak. 0:00:16.560 --> 0:00:19.239 The Mayor of London tells us that Rishi Sunak is 0:00:19.400 --> 0:00:23.239 weaponizing climate change, as the Prime Minister considers delaying a 0:00:23.360 --> 0:00:26.160 ban on the sale of combustion engines. 0:00:25.920 --> 0:00:28.800 And as electric vehicle sales saw in the EU, Ursula 0:00:28.840 --> 0:00:33.040 Vanderline warns that China's massive subsidies need to be investigated. 0:00:33.240 --> 0:00:35.440 Let's start with a round up of our top stories. 0:00:36.920 --> 0:00:40.720 Britain's inflation has unexpectedly fallen to the lowest level in 0:00:40.920 --> 0:00:44.800 eighteen months, easing pressure for further interest rate hikes from 0:00:44.840 --> 0:00:48.319 the Bank of England. The consumer price INDEGS rose by 0:00:48.360 --> 0:00:50.959 six point seven percent from a year ago in August, 0:00:51.360 --> 0:00:53.440 but that was less than the six point eight percent 0:00:53.520 --> 0:00:55.920 gain the month before, and it was well below the 0:00:55.960 --> 0:01:00.720 seven percent that economists had expected. Bloomberg's UK corus Lizzie 0:01:00.720 --> 0:01:04.679 Burden says it's good news for central bank policy makers 0:01:04.720 --> 0:01:05.240 in the UK. 0:01:05.720 --> 0:01:08.200 We've heard the chief economists of the Bank of England, Huepill, 0:01:08.560 --> 0:01:11.880 talking about us reaching the peak of table mountain, maybe 0:01:11.920 --> 0:01:14.600 the end of the rate rises, and it makes it 0:01:14.640 --> 0:01:16.759 easier that that could be the case tomorrow. 0:01:17.440 --> 0:01:20.560 Bloomberg'slazy Burden says that the latest data may still not 0:01:20.640 --> 0:01:23.319 be enough though to stop another quarter point interest rate 0:01:23.400 --> 0:01:27.040 increase tomorrow, given that inflation is still more than three 0:01:27.200 --> 0:01:29.080 times the bank's target of two percent. 0:01:29.560 --> 0:01:31.959 The Mayor of London has offered a stinging rebuke of 0:01:32.040 --> 0:01:35.759 Conservative Party plans to roll back some green policies, calling 0:01:35.760 --> 0:01:39.279 it lazy politics from a weak prime minister. Richie Sunac 0:01:39.280 --> 0:01:41.600 says he wants to implement climate pledges in a quote 0:01:41.680 --> 0:01:45.720 more proportionate way. It's understood Sinax considering delaying a ban 0:01:45.800 --> 0:01:47.840 on the sale of new patrol and diesel cars until 0:01:47.880 --> 0:01:51.240 twenty thirty five. Speaking to Bloomberg, London's Mayor, City Can 0:01:51.360 --> 0:01:52.840 derided the move and this. 0:01:52.880 --> 0:01:55.680 Is basically, you know, lazy politics from a weak prime 0:01:55.720 --> 0:02:00.280 minister throwing red meat to his backbenches because he so. 0:02:00.240 --> 0:02:01.080 We can in effectual. 0:02:02.560 --> 0:02:05.440 That's not only Can who's been pouring scorn on the idea. 0:02:05.480 --> 0:02:08.400 The former Conservative business secretary and COP twenty six president 0:02:08.480 --> 0:02:12.119 Alek Sharmer says the change won't help economically or electorally. 0:02:12.840 --> 0:02:15.440 The head of the European Commission says that the EU 0:02:15.720 --> 0:02:19.960 needs to investigate massive subsidies that China gives its electric 0:02:20.040 --> 0:02:23.799 vehicle industry. The comments come as the EU's latest car 0:02:23.919 --> 0:02:28.560 sales data shows electric vehicles exceeded twenty percent of overall 0:02:28.639 --> 0:02:32.000 sales for the first time in August. As If Onderlion 0:02:32.080 --> 0:02:35.960 told Bloomberg that the Bloc won't accept unfair competition. 0:02:36.639 --> 0:02:39.200 We want the level playing field for our companies, and 0:02:39.280 --> 0:02:43.160 what we see is massive subsidies in the EV sector 0:02:43.240 --> 0:02:46.440 in China, which is of course unleveling our playing field, 0:02:46.560 --> 0:02:49.840 and we do not accept this in the internal market 0:02:49.960 --> 0:02:52.920 for our companies, so we do also not accept it 0:02:53.240 --> 0:02:54.520 for Chinese companies. 0:02:55.520 --> 0:02:59.360 Rondallian's comments come after the European Commission announced the anti 0:02:59.400 --> 0:03:03.120 subsidy of destigation last week, which could lead to tariffs 0:03:03.160 --> 0:03:07.320 on made in China evy imports. Beijing has called the 0:03:07.360 --> 0:03:11.400 move a naked act of protectionism and could restrict access 0:03:11.400 --> 0:03:12.639 to Europein exporters. 0:03:12.680 --> 0:03:16.480 In response, the Federal Reserve is expected to pause rateikes 0:03:16.520 --> 0:03:19.120 today for the second time this year, while leaving the 0:03:19.160 --> 0:03:22.360 door open for another increase as early as November. With 0:03:22.800 --> 0:03:25.720 the inflation still well above the fed's two percent target 0:03:25.800 --> 0:03:29.200 and the US economy resilient, officials made pencil in one 0:03:29.280 --> 0:03:33.320 more hike in their quarterly projections. Bridgewater Associates co Chief 0:03:33.360 --> 0:03:37.160 investment Officer Karen Carneal Tambor says the FED may be 0:03:37.200 --> 0:03:39.520 slower to cut rates than many expect. 0:03:39.920 --> 0:03:43.440 The bar is high to either raise or lower rates 0:03:43.440 --> 0:03:45.880 from where we are today. When you look at what 0:03:45.920 --> 0:03:49.240 it takes to get fast rate declines, usually you need 0:03:49.240 --> 0:03:52.280 the economy collapsing pretty quickly. There's a sense of urgency, right, 0:03:52.360 --> 0:03:55.200 economies collapsing sense of urgency, lower rates as fast as 0:03:55.200 --> 0:03:58.320 you can. That's very far from where we are today. 0:03:58.360 --> 0:04:01.240 We don't have a collapsing economy create that, and inflation 0:04:01.360 --> 0:04:04.240 is still uncomfortably high. It's not as as it was. 0:04:04.480 --> 0:04:07.480 It has been coming down, but the impetus for I 0:04:07.480 --> 0:04:09.520 got a lower rate quickly is certainly not there. 0:04:10.920 --> 0:04:13.920 You can hear that full conversation with Karen Carneel tambora 0:04:13.960 --> 0:04:16.680 accorded at the end of August on the latest episode 0:04:16.680 --> 0:04:19.840 of Bloomberg Wealth of David Rubinstein will bring you their 0:04:19.880 --> 0:04:22.720 FED rate decision live here on Bloomberg at seven pm 0:04:22.800 --> 0:04:26.200 London time, followed by Jern Powell's press conference thirty minutes later. 0:04:27.120 --> 0:04:30.799 Now, the Confederation of British Industry has postponed its annual 0:04:30.920 --> 0:04:34.680 meeting at the last minute over concerns about cash flow. 0:04:34.920 --> 0:04:37.039 Poomberg's You and Potts reports. 0:04:37.000 --> 0:04:40.000 The CBI is long beeing, Britain's biggest business lobby group. 0:04:40.120 --> 0:04:42.440 Now Sky News reports it's thought to be as little 0:04:42.480 --> 0:04:45.520 as four weeks away from running out of money. Up 0:04:45.600 --> 0:04:48.520 until early this morning, the CBI's website listed it's AGM 0:04:48.640 --> 0:04:51.839 due to kickoff today at ten am, but the business 0:04:51.880 --> 0:04:54.920 group told members yesterday its big annual meeting is being 0:04:55.000 --> 0:04:58.440 postponed due to cash flow issues. Its money problems come 0:04:58.560 --> 0:05:01.760 after dozens of the UK's biggas company suspending engagement with 0:05:01.839 --> 0:05:04.159 the CBI in the wake of a series of allegations 0:05:04.240 --> 0:05:07.320 of serious sexual misconduct to the group in London. I'm 0:05:07.360 --> 0:05:08.680 you in Pots of Bloomberg. 0:05:08.320 --> 0:05:11.840 Radio President Joe Biden is calling on world leaders to 0:05:11.920 --> 0:05:15.720 stand with the Ukraine in its war against Russia. He 0:05:15.839 --> 0:05:19.160 made the appeal at the UN General Assembly in New York. 0:05:19.880 --> 0:05:22.720 If you allow Ukraine to be carved up, is the 0:05:22.800 --> 0:05:27.520 independence of any nation secure? Hid respectfully suggest the answers, No, 0:05:28.360 --> 0:05:30.599 we have to stand up to this Neked aggression today 0:05:31.279 --> 0:05:33.320 and the tour other would be aggressiors tomorrow. 0:05:34.360 --> 0:05:39.080 Biden's remarks attracted applause from UN delegates, including his Ukrainian counterpart, 0:05:39.120 --> 0:05:42.720 Valdomei Zelenski, who was in the audience. Concerns have been 0:05:42.760 --> 0:05:46.080 growing over the cost of backing Ukraine's fight, with Kiev's 0:05:46.120 --> 0:05:50.920 forces struggling to make major battlefield gains. Boomberg understands that 0:05:51.080 --> 0:05:54.080 one G seven official sees the war lasting as long 0:05:54.200 --> 0:05:57.360 as seven years, and says that allies need to plan 0:05:57.600 --> 0:05:59.720 financially to continue supporting. 0:06:01.520 --> 0:06:05.080 Consumers accidentally caught a glimpse of Microsoft's future video game 0:06:05.200 --> 0:06:09.760 plans after the tech giant mistakenly provided confidential information to 0:06:09.880 --> 0:06:12.960 a federal court website. The details were part of the 0:06:13.120 --> 0:06:17.760 FTC's antitrust suit against its takeover of Activision Blizzard, including 0:06:17.880 --> 0:06:22.520 unannounced games under refreshed Xbox console. The information has since 0:06:22.560 --> 0:06:23.240 been removed. 0:06:23.880 --> 0:06:25.840 Those are our top stories for you this morning. On 0:06:25.920 --> 0:06:28.799 the markets. European stocks are currently up by three tenths 0:06:28.880 --> 0:06:31.880 of one percent, forty one hundred shares also gaining six 0:06:31.960 --> 0:06:35.640 tenths of one percent. Two year Treasury yields trading at 0:06:35.680 --> 0:06:38.880 five sports zero eight. The big move though markets a 0:06:39.040 --> 0:06:41.920 thirteen and a half basis point decline for two year 0:06:42.080 --> 0:06:45.120 UK guilt yields now trading at four point eight five percent. 0:06:45.839 --> 0:06:48.559 The story linked to those inflation numbers we were talking 0:06:48.600 --> 0:06:51.640 about from Bloomberg opinion column of some More and Summerset 0:06:51.680 --> 0:06:54.000 Web this morning writing about the slump in the buy 0:06:54.160 --> 0:06:56.480 to let market. So we know that rents have been 0:06:56.520 --> 0:06:58.920 going up at an almost record pace, in fact twelve 0:06:59.000 --> 0:07:01.680 percent year on year, thirty percent hiresince the start of 0:07:01.720 --> 0:07:05.000 the pandemic, but the number of people who are willing 0:07:05.120 --> 0:07:07.120 to stay in the by to let markets splickly take 0:07:07.120 --> 0:07:11.120 out to new mortgages has slumped. Obviously, rising rates is 0:07:11.120 --> 0:07:14.080 a big problem. Add to that, marrin Somerset Web says 0:07:14.240 --> 0:07:19.040 rising regulatory costs, incoming net zero rules, few extra wealth taxes, 0:07:19.520 --> 0:07:22.160 and the risk that rent control could pose to the 0:07:22.280 --> 0:07:26.320 income on these properties as well. And essentially many because 0:07:26.400 --> 0:07:27.960 a lot of we're talking about a lot of small players, 0:07:27.960 --> 0:07:30.000 and we talk about the vite let market are saying 0:07:30.040 --> 0:07:32.560 it's not worth it and pulling out. But that creates 0:07:32.560 --> 0:07:35.080 a whole different problem, is that the supply in the 0:07:35.120 --> 0:07:38.480 market shrinks, rents keep going up, and you're present potentially 0:07:38.560 --> 0:07:40.160 presented with a rental crisis. 0:07:40.280 --> 0:07:43.160 Yeah, look, rent on issue, aren't they. I mean there's 0:07:43.200 --> 0:07:47.280 a problem with landlords, with upgrading old buildings, with the 0:07:47.440 --> 0:07:50.720 cost of renting, you know, with how you professionalize it, 0:07:50.840 --> 0:07:53.880 with climate change coming. But I just wonder whether we're 0:07:53.920 --> 0:07:55.920 going to really get anything out of this government of 0:07:56.120 --> 0:07:59.680 Chuca's government. You know, this is a fraught issue. And 0:08:00.040 --> 0:08:02.600 lady we're talking about ris you talking about sort of 0:08:02.720 --> 0:08:05.920 rolling back some green pledges seeing that as a win 0:08:06.160 --> 0:08:08.640 electorally potentially for the Conservatives. 0:08:08.760 --> 0:08:09.160 Yeah, we'll be. 0:08:09.120 --> 0:08:11.320 Watching to see what the parties say about this when 0:08:11.360 --> 0:08:13.840 we get closer to the election. Let's get more details 0:08:13.880 --> 0:08:16.680 though on today's big data print. Consumer price inflation in 0:08:16.760 --> 0:08:20.240 the UK unexpectedly falling to the lowest level in eighteen months, 0:08:20.400 --> 0:08:23.240 easing pressure for further rate ikes from the Bank of England. 0:08:23.320 --> 0:08:25.360 We've already seen the market scaling back their bets on 0:08:25.440 --> 0:08:27.960 what the Bank will do next ahead of its meeting tomorrow. 0:08:28.320 --> 0:08:32.240 Let's get more from our senior UK economist, Dan Hansen. Dan, 0:08:32.320 --> 0:08:35.080 great to have you with us. Is took us through 0:08:35.120 --> 0:08:37.679 I suppose your reaction to what we saw in the 0:08:37.800 --> 0:08:41.240 data this morning, a slowdown in in core and in 0:08:41.320 --> 0:08:42.680 the headline CPI rate. 0:08:43.840 --> 0:08:47.040 Yeah, I mean it was in good morning. Sorry, it 0:08:47.160 --> 0:08:48.880 was a huge surprise, to be honest with you, but 0:08:49.240 --> 0:08:52.199 of course a welcome surprise because we've spent most of 0:08:52.240 --> 0:08:55.160 this year discussing upside CPI surprises, so it was nice 0:08:55.160 --> 0:08:57.520 to get a get a downside surprise, I think. So 0:08:58.320 --> 0:09:00.480 you're absolutely right. I mean, the thing that really caught 0:09:00.559 --> 0:09:03.440 my eye was the core number falling to six point 0:09:03.520 --> 0:09:06.520 two percent, and beneath that if you look at if 0:09:06.559 --> 0:09:09.160 you look at the breakdown, it looks pretty widespread, so 0:09:09.880 --> 0:09:13.760 that all important services inflation number fell from seven point 0:09:13.840 --> 0:09:16.640 four percent to six point eight percent. So it's still 0:09:16.720 --> 0:09:19.720 very elevated, but nonetheless it's finally moving in the right direction, 0:09:20.440 --> 0:09:22.599 particularly when we're thinking about the Bank of England. So 0:09:23.760 --> 0:09:25.040 I think there was there was a lot of good 0:09:25.080 --> 0:09:28.559 news in the in the release, and of course with 0:09:28.679 --> 0:09:31.720 the with the bank meeting tomorrow, it does throw up 0:09:31.720 --> 0:09:33.520 a bit of a cloud of uncertainty about what they 0:09:33.600 --> 0:09:34.679 might might decide to do. 0:09:35.559 --> 0:09:37.760 Yeah. Absolutely. Do you think that it is going to 0:09:37.960 --> 0:09:43.120 influence their decision tomorrow. I'm just looking at the function 0:09:43.200 --> 0:09:46.440 on the Blueberg terminal that shows what markets expect. I mean, 0:09:46.480 --> 0:09:49.319 you've seen a big pullback now in terms of the 0:09:49.440 --> 0:09:53.120 percentage probability of a rate height tomorrow out of the 0:09:53.200 --> 0:09:53.920 Bank of England. 0:09:55.160 --> 0:09:58.439 Yeah, I mean, and I think that's obviously the obviously 0:09:58.559 --> 0:10:00.880 the correct reaction to the day. I mean, I think 0:10:00.920 --> 0:10:02.319 there are a few things. I mean, the bank will 0:10:02.320 --> 0:10:05.680 definitely want to be sure this is durable. In terms 0:10:05.760 --> 0:10:09.560 of the dropping core inflation we've seen, particularly in the UK, 0:10:09.760 --> 0:10:11.719 less so in the Eurozone and the US, but core 0:10:11.760 --> 0:10:14.600 inflation has been quite volatile. It has bounced around. We've 0:10:14.600 --> 0:10:17.679 had upside mainly upside surprises, but now we've had a 0:10:17.720 --> 0:10:21.079 downside surprise as well, so the path down hasn't been smooth, 0:10:21.480 --> 0:10:23.120 so they want to be sure it's durable. I mean, 0:10:23.160 --> 0:10:26.760 in terms of tomorrow, I think there's still enough concern, 0:10:26.920 --> 0:10:29.040 or there will still be enough concern around the pay 0:10:29.160 --> 0:10:33.080 growth data for them to hike again. But I definitely 0:10:33.160 --> 0:10:35.760 think it's a much more balanced decision with this, because 0:10:35.760 --> 0:10:37.400 if you think about it, the pay data or the 0:10:37.440 --> 0:10:39.840 pay growth data is the only thing that's really surprised 0:10:39.880 --> 0:10:43.439 to the upside. Now you've got services inflation surprising to 0:10:43.520 --> 0:10:46.280 the downside, you've got the economy weakening, and you've got 0:10:46.280 --> 0:10:49.040 the unemployment rate rising fast than they expect. So there's 0:10:49.040 --> 0:10:51.439 a lot of dubbish news on the data front other 0:10:51.559 --> 0:10:54.559 than the pay growth data. But I think on balance, 0:10:54.679 --> 0:10:56.960 the bank is going to lean towards probably just doing 0:10:57.040 --> 0:11:01.839 one more, just essentially on insurance. But I think that 0:11:02.040 --> 0:11:05.599 beyond that, there's there's a real question about is that 0:11:05.679 --> 0:11:06.600 going to be the last one? 0:11:06.640 --> 0:11:07.240 And is that it? 0:11:07.559 --> 0:11:10.079 And will they will they choose to send a stronger 0:11:10.240 --> 0:11:13.960 signal that they're going to pause in following tomorrow's hike. 0:11:15.640 --> 0:11:18.400 If it is a hike and a pause, or perhaps 0:11:18.440 --> 0:11:21.400 signaling a pause now and one more hike to come, 0:11:22.240 --> 0:11:25.160 How how soon could we start to think about interest 0:11:25.280 --> 0:11:28.480 rate cut to the BIOI yeah, I mean, that's the that. 0:11:28.760 --> 0:11:31.440 Would be what the main question. And I think actually, 0:11:31.760 --> 0:11:33.360 when you think about tomorrow, that would be one of 0:11:33.400 --> 0:11:35.800 the things the bank wants to guard against having got 0:11:35.840 --> 0:11:37.400 to the peak. The last thing it wants is the 0:11:37.440 --> 0:11:40.240 debate quickly shift to the timing of the first cut. 0:11:40.880 --> 0:11:42.960 You know, we've heard from Hugh Peel, the Chief Economist, 0:11:43.000 --> 0:11:45.920 about this idea of table mountain rates staying higher for longer. 0:11:46.679 --> 0:11:49.800 For that to be an effective strategy, markets need to 0:11:49.840 --> 0:11:53.400 believe that tightening is still potentially on the table and 0:11:53.480 --> 0:11:56.200 there is a tightening bias. Jay Power has been very 0:11:56.240 --> 0:11:59.000 good at that doing that, the Federal Reserve chair. So 0:11:59.800 --> 0:12:02.160 I think for us at least we think in the 0:12:02.160 --> 0:12:05.280 middle of next year will be the timing of the 0:12:05.320 --> 0:12:07.440 first cut. So our first cuts in the second quarter 0:12:07.559 --> 0:12:10.480 of twenty twenty four. I think the risks are probably 0:12:10.559 --> 0:12:12.560 to it being a little bit later than that. I mean, 0:12:12.600 --> 0:12:14.640 we've had some good news on inflation today, but the 0:12:15.400 --> 0:12:18.079 grind lower is going to take time. Getting down to 0:12:18.160 --> 0:12:19.920 that two percent is going to take a very long time. 0:12:19.920 --> 0:12:21.920 We don't think it's going to happen till early twenty 0:12:22.040 --> 0:12:25.280 twenty five. So I think we've got the first cut 0:12:25.360 --> 0:12:27.000 coming in in the middle of next year. But I 0:12:27.080 --> 0:12:29.640 think it wouldn't surprise me at all if it was 0:12:29.679 --> 0:12:30.800 delayed all attle bit later. 0:12:32.040 --> 0:12:35.120 Okay, that's interesting, do you think though, I mean that 0:12:35.240 --> 0:12:37.680 the UK's position compared to the rest of the world 0:12:37.760 --> 0:12:40.960 does remain pretty fraught, doesn't it. I mean, compare us 0:12:41.040 --> 0:12:43.400 to the US and Europe, the inflation picture is still 0:12:43.520 --> 0:12:44.000 very difficult. 0:12:44.080 --> 0:12:47.880 Dan briefly, Yeah, and that's exactly the point. And I 0:12:47.960 --> 0:12:49.920 think that's why they're going to be careful about not 0:12:50.240 --> 0:12:53.520 claiming victory from one inflation number. So I think, you know, 0:12:53.600 --> 0:12:55.880 tomorrow it is likely we're going to get a hike, 0:12:56.000 --> 0:12:59.200 and they're also not going to be too confident about 0:12:59.320 --> 0:13:02.640 confident about signaling victory. And it's also why next year, 0:13:02.679 --> 0:13:05.040 if there are cuts, they'll be very limited. They're going 0:13:05.120 --> 0:13:08.280 to keep more to keep rates restrictive until infact really 0:13:08.320 --> 0:13:09.920 does get close to that two percent number. 0:13:10.440 --> 0:13:12.240 Okay, Dan, thank you so much for being with us. 0:13:12.240 --> 0:13:14.960 Bloomberg Senior UK economist Dan Hanson, let's. 0:13:14.840 --> 0:13:16.880 Bring you more now of our interviewed London's mayor City 0:13:17.080 --> 0:13:19.160 Can He says the Prime Minister is week for pulling 0:13:19.240 --> 0:13:22.480 back on green policies. He's been speaking to Bloomberg's Francine Lackway. 0:13:23.280 --> 0:13:26.439 Well, what's happening is some people are trying to weaponize 0:13:27.600 --> 0:13:32.640 climate change, weaponize air pollution. And here's the perversity of 0:13:32.880 --> 0:13:34.760 what Prime Minister Sunac is doing. 0:13:35.320 --> 0:13:37.760 We've seen in the UK and September. 0:13:37.880 --> 0:13:41.600 In London in September, for the first time ever, four 0:13:41.679 --> 0:13:46.880 consecutive days of temperatures north of thurny degrees celsius. We 0:13:47.040 --> 0:13:52.480 saw last year in London temperatures north of forty degrees celsius. 0:13:52.840 --> 0:13:55.520 Wildfires in London. We've seen across. 0:13:55.480 --> 0:14:01.160 Europe and the global North in America, wildfires, droughts, heat waves. 0:14:01.679 --> 0:14:04.360 The response of government should be actually to turn this 0:14:04.520 --> 0:14:09.960 awful crisis into an opportunity, creating green jobs, a green 0:14:10.040 --> 0:14:13.240 new deal, thinking about how we can both save the planet, 0:14:13.280 --> 0:14:16.920 address climate change, but also give people security and have 0:14:17.040 --> 0:14:19.920 that just transition. And this is basically, you know, lazy 0:14:20.000 --> 0:14:24.160 politics from a weak prime minister throwing red meat to 0:14:24.400 --> 0:14:26.720 his backbenches because he's so weak and ineffectual. 0:14:27.200 --> 0:14:29.400 Do you think you could have been better supported by 0:14:29.520 --> 0:14:30.880 Kerstarmarch with you guys. 0:14:31.240 --> 0:14:34.600 Well, I recognize that we've got to make sure we 0:14:34.760 --> 0:14:39.080 take people with us. I recognize that addressed people's concerns, 0:14:39.120 --> 0:14:42.440 but concerns. But from kir Starmer and the Labor Party, 0:14:43.680 --> 0:14:45.440 what I would hope to see and we are seeing, 0:14:46.200 --> 0:14:47.040 is plans to. 0:14:47.120 --> 0:14:49.800 Address the climate emergency. You've got an announcement from the 0:14:49.880 --> 0:14:50.920 Shadow of Finance. 0:14:50.600 --> 0:14:53.600 Secretary Rachel Rehees saying, you know what, in the first 0:14:53.720 --> 0:14:57.360 term of a labor government will be invested into the 0:14:57.480 --> 0:15:00.800 tune of twenty eight billion pounds a year, which is 0:15:00.960 --> 0:15:06.280 a wall terms, akin to more than President Biden's Inflation 0:15:06.360 --> 0:15:06.960 Reduction Act. 0:15:07.320 --> 0:15:09.480 But Mayor, is it fair to say that you could 0:15:09.480 --> 0:15:12.200 have gotten more support by Drestarma on u les and 0:15:12.280 --> 0:15:14.640 also in the by elections and you haven't because it's 0:15:14.680 --> 0:15:16.200 now a political hot potato. 0:15:16.600 --> 0:15:19.280 But what happened was the by election in Oxbridge and 0:15:19.360 --> 0:15:22.600 Rice that took place a few weeks before the units 0:15:22.720 --> 0:15:26.480 was expanded. People had judginge concerns which we were addressing 0:15:26.880 --> 0:15:29.400 at the same time people were playing on that as 0:15:29.480 --> 0:15:31.880 well as so. Kier and I are close friends. We've 0:15:31.880 --> 0:15:33.480 flowing to over for more than twenty five years. The 0:15:33.640 --> 0:15:36.280 only thing we disagree about is I support a great 0:15:36.360 --> 0:15:38.040 soccer team, great football team Liverpool. 0:15:38.320 --> 0:15:40.560 He sports a rubbish roun Arsenal okay. 0:15:40.400 --> 0:15:42.840 But apart from football, what kind of advice would you 0:15:42.880 --> 0:15:44.400 give him to win the general election? 0:15:44.680 --> 0:15:44.720 No? 0:15:44.800 --> 0:15:45.800 I don't give care advice. 0:15:46.320 --> 0:15:48.280 You know what I do is I'm a friend to 0:15:48.320 --> 0:15:51.920 care but also an example of what a labor politician 0:15:52.080 --> 0:15:55.640 winning the difference we can make being pro business, supporting 0:15:55.680 --> 0:16:00.240 businesses to flourish and thrived, being pro enterprise, being pro 0:16:00.440 --> 0:16:05.600 fighting a climmergency, being pro clean building, recognoumns, affordable homes, 0:16:06.040 --> 0:16:08.120 making sure we invest in public transfer and young people. 0:16:08.160 --> 0:16:10.800 And what do want people to see across the country 0:16:11.480 --> 0:16:15.360 is that that's the difference labor women can make. Compare 0:16:15.400 --> 0:16:19.880 to contrast to a Conservative government where there's been economic mismanagement. 0:16:20.080 --> 0:16:22.080 List trust is all from many budget last year, but 0:16:22.160 --> 0:16:24.920 also a week at ineffectual Conservative leader. 0:16:25.440 --> 0:16:28.560 What can labor now do to be closer to businesses? 0:16:28.720 --> 0:16:31.200 There has been a campaign to actually get them on board. 0:16:31.240 --> 0:16:33.520 I think the latest polls show that they be pretty 0:16:33.560 --> 0:16:34.760 happy with the labor government. 0:16:34.800 --> 0:16:35.520 What would you do more? 0:16:35.840 --> 0:16:37.920 Well, there's two There's two things that people want to 0:16:37.960 --> 0:16:42.480 see from good leaders. One is addressing social injustices, but 0:16:42.640 --> 0:16:46.640 also economic competence, supporting businesses, being proud to spaught businesses, 0:16:46.720 --> 0:16:48.760 being pro businesses. 0:16:48.560 --> 0:16:50.400 Being pro business. One of the things that we've got 0:16:50.440 --> 0:16:51.560 to have the humility. 0:16:51.280 --> 0:16:54.560 Is politicians to do accept is you know, we don't 0:16:54.560 --> 0:16:57.760 create the jobs the wealth of prospiracy for often we 0:16:57.840 --> 0:16:59.960 think we do, but we don't. We can create the 0:17:00.280 --> 0:17:04.359 environment where businesses flourish and thrive, and work with businesses 0:17:04.880 --> 0:17:07.680 to be pro well paid jobs, to work with businesses 0:17:07.760 --> 0:17:09.560 to make sure they invest in young people, to work 0:17:09.600 --> 0:17:12.679 with businesses to train up people to have the skills 0:17:12.720 --> 0:17:12.919 for the. 0:17:12.960 --> 0:17:14.360 Jobs being created. 0:17:14.800 --> 0:17:18.520 My nervousness about the Layer Party is our reputation in 0:17:18.520 --> 0:17:23.000 the recent past has been with anti growth or anti prosperity. 0:17:23.080 --> 0:17:27.000 What KOs Arma Rachel reeves their teams have done is 0:17:27.040 --> 0:17:30.479 to reassure businesses by listening to them that we are 0:17:30.520 --> 0:17:31.080 pro business. 0:17:31.200 --> 0:17:32.000 We're back at business. 0:17:32.000 --> 0:17:34.200 As a result, Mayor, sure, should London have gotten the 0:17:34.400 --> 0:17:36.359 rm IPO and was it a kick in the teeth 0:17:36.480 --> 0:17:37.240 not to have done so? 0:17:37.800 --> 0:17:39.360 I'm sorry, hey you the r IPO. 0:17:39.720 --> 0:17:41.600 Well listen, But the great thing about you know, London 0:17:41.760 --> 0:17:44.040 is our in the line strengths are still there. We 0:17:44.560 --> 0:17:47.040 you know, even post Brexit, we are still a city 0:17:47.119 --> 0:17:49.320 that has got all the things that businesses need to 0:17:49.440 --> 0:17:51.879 invest in London, to expand in London and to run 0:17:51.960 --> 0:17:52.280 in London. 0:17:52.800 --> 0:17:55.080 Mayor, what are you most excited about in the climate space? 0:17:55.240 --> 0:17:55.280 So? 0:17:55.400 --> 0:17:55.840 Is it green? 0:17:55.920 --> 0:18:00.840 Vard issuance. Can London Financial as a centre actually become 0:18:00.960 --> 0:18:03.800 a hub for a green finance and green issuance. 0:18:04.359 --> 0:18:07.520 We started our conversation by you talking about the Ultra 0:18:07.560 --> 0:18:10.639 Amission Zone, the world's biggest clean air zone. 0:18:10.960 --> 0:18:13.359 There are so many exciting things happening in London. 0:18:13.440 --> 0:18:15.960 We have the largest amount of electric buses in the 0:18:16.000 --> 0:18:19.080 western world, the largest amount of rapid charging points in 0:18:19.560 --> 0:18:23.359 the in Western Europe, bigger party you know, brecon numbers 0:18:23.359 --> 0:18:26.879 of trees being planted, rewild in half at taxi electric. 0:18:27.000 --> 0:18:30.879 What I'm saying to investors around the globis London is 0:18:30.960 --> 0:18:35.000 the green capital of the world. This crisis of the 0:18:35.040 --> 0:18:37.960 clim emergency can be an opportunity. We have a green 0:18:38.040 --> 0:18:41.439 bond in London, more than five hundred million pounds come 0:18:41.480 --> 0:18:44.040 to London invest and also at the same time make 0:18:44.119 --> 0:18:46.800 sure that the London Stock Exchange is known as the 0:18:46.920 --> 0:18:47.840 green stock Exchange. 0:18:48.040 --> 0:18:50.879 But may can London do that by itself? If you 0:18:50.920 --> 0:18:53.920 have a government that doesn't really believe in its own 0:18:53.960 --> 0:18:56.000 plasures in the transition I. 0:18:56.040 --> 0:18:59.240 Say this, I said this with the utmost humility and 0:18:59.320 --> 0:19:03.159 no complace. See this government is only here for a 0:19:03.200 --> 0:19:06.000 short time in the near future, there's a general election 0:19:06.040 --> 0:19:08.240 as soon as it's called. I'm hoping the British public 0:19:08.359 --> 0:19:11.199 gives Labor a chance to be in government. And one 0:19:11.200 --> 0:19:13.560 of the things that Kirstar has done this week, another 0:19:13.600 --> 0:19:15.680 good thing is done, is is to set out a 0:19:15.680 --> 0:19:18.240 direction of travel that with a Labor government will the 0:19:18.320 --> 0:19:21.359 closer in alignment with the European Union. And so what 0:19:21.480 --> 0:19:25.480 I say to people nervous about this ineffectual, ineffective Conservative 0:19:25.520 --> 0:19:28.080 government is their life span is very short. 0:19:28.440 --> 0:19:29.720 They'll be out of power very soon. 0:19:31.880 --> 0:19:34.560 This is Bloomberg Daybreak Europe, your morning brief on the 0:19:34.640 --> 0:19:37.679 stories making news from London to Wall Streets and beyond. 0:19:38.000 --> 0:19:41.199 Look for us on your podcast feed every morning, on Apple, 0:19:41.320 --> 0:19:43.960 Spotify and anywhere else you get your podcasts. 0:19:44.080 --> 0:19:47.080 You can also listen live each morning on London Dab Radio, 0:19:47.119 --> 0:19:49.440 the Bloomberg Business app, and Bloomberg dot Com. 0:19:49.880 --> 0:19:52.639 Our flagship New York station, is also available on your 0:19:52.680 --> 0:19:57.320 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 0:19:57.600 --> 0:19:58.960 I'm Caroline Hepka. 0:19:58.760 --> 0:20:01.480