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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg Day Bacate podcast, available every morning

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Speaker 2: on Apple, Spotify or wherever you listen. It's Friday, the

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Speaker 2: twenty second of November in London. I'm Caroline Hepke and.

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Speaker 1: I'm Stephen Carroll.

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Speaker 3: Coming up today, American defense firms are warned of the

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Speaker 3: threat of Russian sabotage. As Moscow fires an experimental missile

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Speaker 3: at Ukraine.

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Speaker 2: Exit gates enter Pam Bondi, President elect Trump is forced

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Speaker 2: to find a new nominee for US Attorney General.

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Speaker 3: Plus, as the rich and famous flood of Once Quiet

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Speaker 3: part of Portugal, the designer Christian Lebouta is among those

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Speaker 3: fighting to save the region.

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Speaker 2: Let's start with a roundup of our top stories.

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Speaker 3: US intelligence agencies have warned American defense firms to be

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Speaker 3: alert for Russian sabotage as Moscow seeks to undermine support

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Speaker 3: for Ukraine. In a joint statement to the National Counterintelligence

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Speaker 3: and Security Center, the FBI and others said Russia's sabatag

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Speaker 3: activities in Europe increased the risk to US companies abroad

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Speaker 3: and potentially at home. Russia so far focused mainly on

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Speaker 3: European targets, including a foiled plot to assassinate the CEO

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Speaker 3: of German armsmaker Rhine Mattal. President Biden's administration recently warned

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Speaker 3: allies about the risk of stepped up Russian sabotage if

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Speaker 3: the US and its allies allowed Kiev to fire Western

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Speaker 3: weapons deep inside Russia.

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Speaker 2: The threat of sabotage against Western businesses comes as the

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Speaker 2: US confirmed that Russia has fired an experimental intermediate range

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Speaker 2: holistic missile at Ukraine. President Putin said the attack was

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Speaker 2: in retaliation for Ukraine's use of American and British made

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Speaker 2: missiles on Russian territory earlier this week. In a TV address,

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Speaker 2: Vladimir Putin also raised the possibility of attacking uk or

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Speaker 2: US military facilities in response.

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Speaker 4: We consider ourselves entitled to use our weapons against military

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Speaker 4: facilities of those countries that allow their weapons to be

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Speaker 4: used against our facility, and in the event of an

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Speaker 4: escalation of aggressive actions, we will respond decisively.

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Speaker 2: Putin, speaking of Ora translator there, the Russian leader has

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Speaker 2: lowered the threshold for the use of Moscow's nuclear arsenal

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Speaker 2: after President Biden allowed Ukraine to use US supplied attackums

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Speaker 2: missiles to hit Russia. Ukraine also began using UK made

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Speaker 2: storm shadow missiles against Russian targets.

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Speaker 3: This week, Donald Trump has nominated former Florida Attorney General

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Speaker 3: Pam Bondy to run the Justice Department. That decision comes

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Speaker 3: after the President elect's previous pick, Matt Gates, withdrew from

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Speaker 3: consideration for the role. Yesterday, the former congressman was facing

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Speaker 3: scrutiny over allegations of sexual misconduct. Gates denied them, but

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Speaker 3: there were questions as if he had enough support to

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Speaker 3: be confirmed. In Pam Bondi Trump as elevating another longtime

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Speaker 3: ally with Florida roots. Here's Republican strategist Tricia mclachan.

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Speaker 5: She's the first female attorney general in Florida. She's known

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Speaker 5: to be highly competent. She's been a highly effective spokesperson

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Speaker 5: for Donald Trump. So I mean, I think she's going

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Speaker 5: to definitely have a pathway to confirmation and I think

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Speaker 5: she will absolutely action in all the.

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Speaker 3: Oil web Republicans tractors Trisia McLaughlin speaking there. In the

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Speaker 3: first Trump administration, Bondy worked out of the White House

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Speaker 3: assisting in communications related to his first impeachment trial.

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Speaker 2: After years of benign moves volatility sword following the US

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Speaker 2: presidential election. Now, currency traders are betting that Donald Trump's

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Speaker 2: policy agenda will jump start it again in the seven

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Speaker 2: and a half trillion dollar a day foreign exchange market

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Speaker 2: bluebigs Tava, added Bayo.

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Speaker 6: As more now, hedge funds are scooping up options contracts

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Speaker 6: that pay out of currency swings increase in anticipation of

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Speaker 6: January's presidential inauguration. It's not yet clear how quickly Trump

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Speaker 6: will implement policies such as trade tariffs, which could cause

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Speaker 6: pain for the Euro, but investors are pretty certain unpredictability

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Speaker 6: will be a major feature of his term. There's also

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Speaker 6: the unknown factor of how country will respond to Trump's

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Speaker 6: measures and what impact those countermeasures will have on markets.

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Speaker 6: Right now, traders are expecting a stronger dollar in greater

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Speaker 6: macroeconomic divergence, leading to bigger FX moves. The trend marks

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Speaker 6: a sharp turnaround from the past few years, when central

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Speaker 6: banks raising then cutting interest rates led to a period

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Speaker 6: of calm in London, Tea, added Bayo.

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Speaker 3: Bloomberg Radio Ken Griffin says he would consider selling a

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Speaker 3: piece of his sixty five billion dollar multi strategy hedge

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Speaker 3: fund Citadel. Speaking to Bloomberg at the Economic Club of

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Speaker 3: New York, the financier added he could see working with

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Speaker 3: a partner like Sequoia Capital, which invested in Citadel securities,

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Speaker 3: but ruled out an IPO for the market maker due

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Speaker 3: to regulatory concerns. When asked about his expectations of a

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Speaker 3: second Trump administration, Griffin, a major donor to Republican politicians,

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Speaker 3: expressed significant trepidation.

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Speaker 7: I am gravely concerned that the rise of terrors put

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Speaker 7: us on a slippery slope towards corneism Capital.

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Speaker 3: Ken Griffin there speaking to Boomberg's Shnali Bassak. He also

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Speaker 3: shared worries about other expected policies from the Trump from

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Speaker 3: the President elect, including mass deportations, and cautioned Republicans about

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Speaker 3: the impact of tax cuts on the national debt.

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Speaker 2: Here in the UK, consumer confidence rose in November alfter

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Speaker 2: the new government's budget. GfK has put the surprise increase

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Speaker 2: to minus eighteen on their index, down to uncertainty over

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Speaker 2: Labour's tax and spending plans ending. However, overall confidence remains

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Speaker 2: below August levels, which were taken before Prime Minister Kiss

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Speaker 2: Starmer warned of painful decisions.

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Speaker 1: Those are top stories on the markets.

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Speaker 3: The S and P five hundred closed on Thursday in

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Speaker 3: the green up half of one percent, and video shares

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Speaker 3: reversed earlier losses and closed up by half of one

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Speaker 3: percent as well. The dollar strength and four tenths yesterday.

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Speaker 3: It's a tenth stronger today on the Bloomberg Dollar Spot Index.

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Speaker 3: The Euro trading at one oh four to sixty eight

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Speaker 3: against the greenback.

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Speaker 1: Brent climbed two percent yesterday.

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Speaker 3: It's up another tenth of one percent today at seventy

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Speaker 3: four dollars thirty one. On geopolitical tensions, gold also rallied

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Speaker 3: seven tenths of one percent overnight. We've seen Bitcoin hits

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Speaker 3: another freshold time high at ninety nine point four ninety

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Speaker 3: nine thousand, four hundred dollars, just slightly below that level

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Speaker 3: at the moment. In Asia, Japanese shares are higher, but

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Speaker 3: China and Hong Kong are lower. The Hangsang is down

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Speaker 3: by one point eight percent.

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Speaker 2: Tho's the markets. We'll discuss the latest escalatory events in

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Speaker 2: Russia and Ukraine in just a moment, and also a

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Speaker 2: deep dive report on a really interesting topic, the Ultra

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Speaker 2: rich flooding A once quiet part of Portugal. Christian Labuta

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Speaker 2: is among those who's fighting to save the region. But

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Speaker 2: before we get into those big conversations, I was reading

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Speaker 2: this on the Bloomberg terminal this morning about airline premium premiumization.

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Speaker 2: Impossible to say, but earlier this week, do you remember

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Speaker 2: we were discussing how Delta was going to allow for

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Speaker 2: first class passengers to be able to order a hamburger

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Speaker 2: on the plane. Well, Bloomberg Business Week's we're looking into

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Speaker 2: this idea of premiumization. Pre pandemic, the big US airlines

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Speaker 2: spend ages sort of experimenting with all those extras, you know,

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Speaker 2: obviously the front row seats that have got extra leg

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Speaker 2: room and kind of slightly better snacks. But apparently now

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Speaker 2: they're switching focus. They're not looking at that part of

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Speaker 2: the plane anymore. They're looking at the front of the plane.

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Speaker 6: I e.

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Speaker 2: How to shift those first class tickets And I was

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Speaker 2: absolutely amazed to understand how much people are paying in

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Speaker 2: cash now first class tickets.

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Speaker 6: Yeah.

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Speaker 3: Well, look but it's not just first class either. It's

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Speaker 3: the premium economies, it's the business class. Because post pandemic,

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Speaker 3: when people return to travel, a lot of people realized

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Speaker 3: how awful, frankly parts of it are, and being squashed

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Speaker 3: into a seat if you're a toll person, for example,

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Speaker 3: can be very uncomfortable. So the question is, if I'm

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Speaker 3: going to travel because people aren't doing it perhaps as often?

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Speaker 3: Am I going to pay more for the little luxuries

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Speaker 3: to get on the way. And actually some airlines are

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Speaker 3: even considering redrawing their planes so that there are more

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Speaker 3: options in terms of presumably bargain basement to ultra luxury

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Speaker 3: and trying to find somewhere in between that you can afford.

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Speaker 2: Yeah, it's that extra hundred dollars that passengers might pay

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Speaker 2: for each additional item, you know, hugely important. Anyway, it's

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Speaker 2: a long read. It's got some really nicely drawn graphics

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Speaker 2: about where you sit on the plane and what you get,

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Speaker 2: and it's in on the blue big terminal on the website.

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Speaker 3: And in Business Week Caroline always turns left when she

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Speaker 3: gets on a plane.

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Speaker 1: That's all I know.

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Speaker 3: Let's bring you more though in our top stories this morning.

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Speaker 3: And we've heard from the Russian President Latimir Putin speaking

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Speaker 3: on Thursday, as US intelligence and national security agencies warn

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Speaker 3: of Russian threats to US defense companies. Our EMEA News

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Speaker 3: director Roslind Mathison joins US Now for more raz Good morning.

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Speaker 3: So this warning from the US to defense firms about

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Speaker 3: Russian sabotage. European firms have already seen instances of this.

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Speaker 3: What is this warning.

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Speaker 8: About, Well, it's in the realm of what we've seen

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Speaker 8: over the past couple of years since Russia invaded Ukraine,

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Speaker 8: which is this hybrid warfare that's accompanied that, so you know,

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Speaker 8: cyber attacks episodes, is sabotage and so we've seen that

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Speaker 8: a lot from all corners on this war. And we're

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Speaker 8: seeing European nations warning of this and increasing their drills

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Speaker 8: against cyber attacks and attacks on things like electricity grids,

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Speaker 8: and this shows rising concern, this particular warning that the

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Speaker 8: Russian intelligence services might be using tax to try and

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Speaker 8: recruit people from defense companies, recruit people who would come

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Speaker 8: and carry out things like arsen attacks, cyber attacks and

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Speaker 8: so on, and we know so far the focus has been.

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Speaker 1: Particularly on Europe.

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Speaker 8: We had that episode of course in July with the

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Speaker 8: fold plot to assassinate the CEO of Ryan Mattal and

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Speaker 8: that's the German arms maker of course, supplying Ukraine with weapons.

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Speaker 1: But now the US is in.

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Speaker 8: Focus, especially supplying so many weapons to Ukraine being used

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Speaker 8: on Russian soil, and this is the warning that the

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Speaker 8: Russians might try to recruit people insiders from the defense

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Speaker 8: community to carry out sort of arsen attacks, cyber attacks

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Speaker 8: and other sabotage on these companies.

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Speaker 2: Well, Putin gave a televised speech on Thursday. He was

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Speaker 2: talking about a number of issues, but this is he

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Speaker 2: and Ukraine say that Russia launched this new kind of

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Speaker 2: missile this week and experimental intermediate range ballistic missile on Denipro.

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Speaker 2: Why is that being seen as so significant?

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Speaker 8: Vladimir Putin said that the weapon was a new intermediate

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Speaker 8: range ballistic missile with carrying a conventional warhead, although they

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Speaker 8: did give the US a heads up right before they

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Speaker 8: launched it for safety reasons. But he said it was

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Speaker 8: in retaliation for Ukraine now using US made, UK made

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Speaker 8: missiles against Russian soil, firing those weapons at Russian soil,

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Speaker 8: and so it is an escalation in that regard. Even

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Speaker 8: though this was not the biggest missile I think that's

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Speaker 8: been fired against Ukraine so far, we've seen missiles carrying

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Speaker 8: larger warheads in this conflict. But this is a signal

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Speaker 8: that they have new weapons, that they're experimenting with these weapons,

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Speaker 8: and particularly that they're wanting to show they can reach

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Speaker 8: deep into Ukrainian territory to send that message. So certainly

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Speaker 8: it's part of what we're seeing at the moment, is

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Speaker 8: this idea of escalation coming with both sides positioning themselves

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Speaker 8: for potential talks.

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Speaker 3: And possessing themselves also ahead of the inauguration of Donald

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Speaker 3: Trump in January, this appears to have been moved into

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Speaker 3: a very dangerous time in this conflict.

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Speaker 1: That's absolutely right.

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Speaker 8: As you were saying, what we're seeing is Ukraine stepping

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Speaker 8: things up, Russia stepping things up, both on the ground

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Speaker 8: and particularly in the air. We have the Russians calling

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Speaker 8: it a dangerous position, but we also know that a

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Speaker 8: number of people in Donald Trump's circle are echoing that view,

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Speaker 8: saying that the US is antagonizing the situation under the

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Speaker 8: Biden administration, And what we're seeing is this esculatory pattern

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Speaker 8: as a result, and we do know that Donald Trump

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Speaker 8: wants this war to come to a close. We do

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Speaker 8: know he doesn't want to keep supporting Ukraine with aid,

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Speaker 8: military aid or financial aid. So he's going to be

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Speaker 8: seeking to push both Russia and Ukraine to the table

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Speaker 8: pretty early on. But in the meantime we're what we're

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Speaker 8: doing is we're seeing them escalate to be in the

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Speaker 8: best position, and that's highly dangerous.

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Speaker 2: Wells, thank you so much for being with us this morning.

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Speaker 2: Our EMA news director rosl In Matheson then bringing us

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Speaker 2: the latest when it comes to the war in Ukraine.

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Speaker 1: Now we're going to take you to Portugal next.

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Speaker 3: When French designer Christian le Bouton bought a secluded house

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Speaker 3: in Portugal's Milidus, it was a sleepy coastal area. Less

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Speaker 3: than two decades later, what was once a well kept

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Speaker 3: secret has transformed into a playground of the rich and famous,

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Speaker 3: and the man made famous by his rad sol shoes

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Speaker 3: isn't happy. He's now fighting to save his beloved Portuguese

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Speaker 3: retreat from a high end tourism surge. Joining us now

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Speaker 3: for more on this story is Bloomberg's Andy Kale Maida Erica.

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Speaker 3: Great to have you with us on the program. What

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Speaker 3: is happening that in this small coastal town that Christian neverertwn'

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Speaker 3: is not happy about?

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Speaker 9: Miliders was one of Portugal's best kept secrets until US

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Speaker 9: real estate developed the Discoveryland opened a luxury residential community

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Speaker 9: in the area and started attracting European royals, entrepreneurs, and

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Speaker 9: sports stars. Now Discoveryland belongs to real estate mogul Mike Melman,

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Speaker 9: who is famous for founding tequila company Casamigos with actor

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Speaker 9: George Clooney. So Ever, since this ultra luxury resort opened

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Speaker 9: in this small town on the edge of pine and

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Speaker 9: cork forests along untouched while Atlantic Beaches, investor interest has

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Speaker 9: increased significantly, and then due to that, property prices around

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Speaker 9: the area have soared. Some locals are struggling to cope

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Speaker 9: with the higher living costs, and others like Lobotin, who

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Speaker 9: discovered the area more than twenty years ago, well, they're

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Speaker 9: worried that the area might fall victim to over tourism,

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Speaker 9: and they're also worried about the depletion of resources like water.

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Speaker 9: Right now, there's this tension building up in this small

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Speaker 9: town of Mililish because locals aren't sure that it's able

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Speaker 9: to take all the growing interest that's been taking place

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Speaker 9: in recent years.

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Speaker 2: Yes, and perhaps this also taps into the wider concerns

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Speaker 2: about tourism in some towns and cities and tourist destinations

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Speaker 2: in other beautiful parts of Europe. What is Lebuta doing

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Speaker 2: then about it? I mean, is he gathering local politicians?

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Speaker 2: What's he thinking about?

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Speaker 9: Lobota He has a house in the Milidish Lagoon, which

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Speaker 9: is one of the most protected areas of Portugal, and

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Speaker 9: ever since he arrived there, he's been noticing that the

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Speaker 9: water levels in the lagoon have been dropping, and that's

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Speaker 9: because of consumption related to farming. There are a lot

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Speaker 9: of rice fields in the area. It's also related to

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Speaker 9: the golf courses that have been opening in the area.

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Speaker 9: There are five golf courses in an area of fifty kilometers.

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Speaker 9: And so what Lobotona did was he founded an association

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Speaker 9: to work with farmers to teach farmers or to help

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Speaker 9: farmers cultivate and useless water. That association's also working with

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Speaker 9: developers on ways to make tourism more sustainable, in the

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Speaker 9: use of water at golf courses and use of water

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Speaker 9: for consumption, and also with politicians on new legislation so

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Speaker 9: that the area becomes more sustainable. He's concerned about nature,

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Speaker 9: but he does believe, however, that it's possible former leaders

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Speaker 9: to have high end tourism and at the same time

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Speaker 9: continued to be sustainable.

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

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

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Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify,

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Speaker 2: and anywhere else you get your podcasts.

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Speaker 3: You can also listen live each morning on London Dab Radio,

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

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Speaker 2: Our flagship New York station, is also available on your

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Speaker 1: I'm Caroline Hepka and I'm Stephen Carroll.

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Speaker 3: Join us again tomorrow morning for all the news you

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Speaker 3: need to start your day right here on Bloomberg day

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Speaker 3: Break Europe.

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Speaker 6: Mm hmm