1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:10,119 --> 00:00:12,960 Speaker 2: This is the Blueberg Day BAQ podcast. Good morning, It's Wednesday, 3 00:00:13,000 --> 00:00:15,880 Speaker 2: the first of October. I'm Caroline Hipka in London. 4 00:00:15,760 --> 00:00:19,240 Speaker 3: And I'm Stephen Carolin Brussels. Coming up today out of time, 5 00:00:19,360 --> 00:00:22,000 Speaker 3: the United States government shuts down for the first time 6 00:00:22,079 --> 00:00:23,240 Speaker 3: since twenty eighteen. 7 00:00:23,760 --> 00:00:27,720 Speaker 2: President Trump threatens to permanently far a lot of federal workers. 8 00:00:27,760 --> 00:00:31,040 Speaker 2: As markets assess the impact of the US funding. 9 00:00:30,720 --> 00:00:34,559 Speaker 3: Lapse, plus shaping the future of finance and beyond, we 10 00:00:34,680 --> 00:00:37,280 Speaker 3: delve into the topics at the heart of Bloomberg's Women, 11 00:00:37,440 --> 00:00:39,440 Speaker 3: Money and Power event in London. 12 00:00:40,000 --> 00:00:42,080 Speaker 2: Let's start with a roundup of our top stories. 13 00:00:42,600 --> 00:00:45,280 Speaker 3: The United States government has entered its first shut down 14 00:00:45,320 --> 00:00:48,600 Speaker 3: in nearly seven years, as Democrats and Republicans remain in 15 00:00:48,640 --> 00:00:52,040 Speaker 3: a standoff over spending plans. At issue is whether to 16 00:00:52,080 --> 00:00:55,840 Speaker 3: attach healthcare and other policy changes demanded by Democrats to 17 00:00:55,880 --> 00:00:59,120 Speaker 3: a stop gap spending bill to fund the government. The 18 00:00:59,160 --> 00:01:02,760 Speaker 3: deadlock now threat to paralyze many US government operations while 19 00:01:02,800 --> 00:01:06,920 Speaker 3: suspending key services for Americans and paychecks for federal workers. 20 00:01:07,240 --> 00:01:09,080 Speaker 3: With more, here's Boomberg's Miles Meller. 21 00:01:09,400 --> 00:01:12,759 Speaker 4: National services are going to be disrupted everything from passports 22 00:01:12,800 --> 00:01:16,400 Speaker 4: and visas on hold, to federal oversights of the market 23 00:01:16,480 --> 00:01:21,080 Speaker 4: and workplace complaints as well. We also won't get our 24 00:01:21,120 --> 00:01:24,679 Speaker 4: economic data in a timely fashion. The Labor Department Shops 25 00:01:24,720 --> 00:01:28,400 Speaker 4: report scheduled for Friday won't be released. Inflation and GDP 26 00:01:28,640 --> 00:01:32,800 Speaker 4: updates are also frozen, along with many Treasury tax functions. 27 00:01:32,800 --> 00:01:35,320 Speaker 4: That means that the Federal Reserve and investors are going 28 00:01:35,360 --> 00:01:38,600 Speaker 4: to be basically flying blind without economic data. 29 00:01:39,240 --> 00:01:41,959 Speaker 3: And we'll see how long this goes for mis Miller 30 00:01:42,040 --> 00:01:44,840 Speaker 3: was speaking. Has Boomberg Economics calculated that if the shutdown 31 00:01:44,920 --> 00:01:48,120 Speaker 3: lasts for three weeks, the unemployment rate could spike to 32 00:01:48,240 --> 00:01:51,800 Speaker 3: four point seven percent from four point three percent, as 33 00:01:51,840 --> 00:01:55,720 Speaker 3: furloughed workers are counted as temporarily unemployed. Much of the 34 00:01:55,760 --> 00:01:59,320 Speaker 3: economic impacts from the government's shutdown has historically been recouped 35 00:01:59,360 --> 00:02:03,560 Speaker 3: after it, but not all. The Congressional Budget Office estimated 36 00:02:03,560 --> 00:02:06,880 Speaker 3: that the US economy failed to recover three billion dollars 37 00:02:06,880 --> 00:02:10,840 Speaker 3: of the eleven billion lost in output during the last shutdown. 38 00:02:11,760 --> 00:02:11,919 Speaker 5: Well. 39 00:02:11,960 --> 00:02:15,839 Speaker 2: This shutdown came into effect hours after President Trump said 40 00:02:16,200 --> 00:02:20,919 Speaker 2: his administration could use the shutdown to conduct mass layoffs 41 00:02:20,960 --> 00:02:25,119 Speaker 2: of federal workers. The Congressional Budget Office estimates about seven 42 00:02:25,240 --> 00:02:28,880 Speaker 2: hundred and fifty thousand federal employees will be furloughed each 43 00:02:29,000 --> 00:02:31,800 Speaker 2: day that the US government is shut down. Speaking to 44 00:02:31,840 --> 00:02:35,680 Speaker 2: reporters next Air Force One, Trump suggested mass layoffs as 45 00:02:35,720 --> 00:02:39,839 Speaker 2: he linked the standoff over healthcare funding to immigration. 46 00:02:40,520 --> 00:02:42,560 Speaker 6: Well, we made you alive, and that's only because of 47 00:02:42,600 --> 00:02:43,400 Speaker 6: the Democrats. 48 00:02:43,400 --> 00:02:45,120 Speaker 1: And as you know, they wanted to be. 49 00:02:45,040 --> 00:02:46,840 Speaker 4: Able to take care of people that have come into 50 00:02:46,880 --> 00:02:49,920 Speaker 4: our country illegally, and no system get hand on that. 51 00:02:50,760 --> 00:02:52,200 Speaker 1: So we're totally opposed on that. 52 00:02:52,360 --> 00:02:54,359 Speaker 5: But we can't take care. We just can't do it. 53 00:02:54,440 --> 00:02:56,120 Speaker 7: I'd love to do everybody, I'd love to do the 54 00:02:56,160 --> 00:02:57,079 Speaker 7: whole world, but. 55 00:02:57,080 --> 00:02:59,640 Speaker 6: Our country can't hand on people that come into our country. 56 00:03:00,760 --> 00:03:04,080 Speaker 2: That was President Trump speaking two reporters. As Democrats and 57 00:03:04,200 --> 00:03:08,520 Speaker 2: Republicans have shown no signs of resolving their deadlock. 58 00:03:08,919 --> 00:03:12,760 Speaker 3: Traders are becoming increasingly concerned over the effect on upcoming 59 00:03:12,840 --> 00:03:16,760 Speaker 3: data releases. Speaking moments after the shutdown took effect, Morgan 60 00:03:16,800 --> 00:03:21,040 Speaker 3: Stanley's senior Global economist re Chief Sibal, says the impact 61 00:03:21,080 --> 00:03:24,040 Speaker 3: on the flow of economic information is a real concern. 62 00:03:24,680 --> 00:03:26,680 Speaker 8: The delay in the release of data is going to 63 00:03:26,680 --> 00:03:29,560 Speaker 8: be critically important here. There are historical presidents that have 64 00:03:29,639 --> 00:03:33,240 Speaker 8: seen data sometimes released during government shutdowns, sometimes not released. 65 00:03:33,240 --> 00:03:35,800 Speaker 8: In this case, the BLS has gone ahead and stated 66 00:03:35,800 --> 00:03:37,520 Speaker 8: that they will not be released in the data and 67 00:03:37,800 --> 00:03:40,480 Speaker 8: as is important for investors in understanding what's happening in 68 00:03:40,520 --> 00:03:42,800 Speaker 8: the economy. Without that information, there's going to be a 69 00:03:42,840 --> 00:03:45,240 Speaker 8: lot of uncertainty. And we're in an environment where we've 70 00:03:45,280 --> 00:03:48,400 Speaker 8: had consistent growth, upside surprise, and the market is looking 71 00:03:48,440 --> 00:03:50,240 Speaker 8: for more of that. And so I think, you know, 72 00:03:50,400 --> 00:03:53,080 Speaker 8: not having non front payrolls, not having retail sales could 73 00:03:53,120 --> 00:03:56,880 Speaker 8: be I guess a bit of a wabble for markets. 74 00:03:57,240 --> 00:04:00,320 Speaker 3: For Chief Saba's comments come after recent economic data has 75 00:04:00,320 --> 00:04:03,560 Speaker 3: shown the labor market is slowing down in the United States, 76 00:04:03,600 --> 00:04:07,520 Speaker 3: while inflation remains relatively under control, though still above the 77 00:04:07,520 --> 00:04:08,800 Speaker 3: FADS two percent target. 78 00:04:09,400 --> 00:04:13,440 Speaker 2: Now, in terms of the market reaction from the shutdown 79 00:04:13,640 --> 00:04:18,360 Speaker 2: impact S and P five hundred EVENI futures currently down 80 00:04:18,400 --> 00:04:20,680 Speaker 2: by four tenths of one percent. Nows that futures are 81 00:04:20,680 --> 00:04:25,240 Speaker 2: also declining half of one percent. European stock futures, meanwhile, 82 00:04:25,279 --> 00:04:28,960 Speaker 2: are positive. In the green gold has hit another record high, 83 00:04:29,000 --> 00:04:31,799 Speaker 2: extending the four day rally we've seen so bullion edging 84 00:04:31,880 --> 00:04:34,560 Speaker 2: high two tens of one percent to trade at three 85 00:04:35,040 --> 00:04:38,880 Speaker 2: eight hundred and sixty eight dollars. The dollar itself is 86 00:04:38,960 --> 00:04:42,120 Speaker 2: currently off by a tenth of one percent. Asian shares 87 00:04:42,400 --> 00:04:45,760 Speaker 2: are also low, with China and Hong Kong close for holiday. 88 00:04:46,080 --> 00:04:49,440 Speaker 2: That is the key reaction in markets and the impact 89 00:04:49,800 --> 00:04:51,560 Speaker 2: from the government shutdown in the US. 90 00:04:52,440 --> 00:04:54,720 Speaker 3: Another news, Pfizer has won a reprieve from the US 91 00:04:54,800 --> 00:04:58,800 Speaker 3: President's threatened tariffs on the pharmaceutical industry. The drugmaker agreed 92 00:04:58,880 --> 00:05:01,560 Speaker 3: to cut some price by up to eighty five percent 93 00:05:01,720 --> 00:05:04,320 Speaker 3: and sell directly to the public in the US. The 94 00:05:04,360 --> 00:05:07,520 Speaker 3: pledge addresses Donald Trump's complained that Americans are paying more 95 00:05:07,560 --> 00:05:10,080 Speaker 3: for medicines his vizor CEO Albert Bula. 96 00:05:11,080 --> 00:05:15,360 Speaker 9: For years, other rich nations refused to pay the first 97 00:05:15,440 --> 00:05:20,479 Speaker 9: serve for the medical innovation, and as a result, Americans 98 00:05:20,640 --> 00:05:25,320 Speaker 9: had to assume this proportional costs on their soldiers. This 99 00:05:25,480 --> 00:05:28,000 Speaker 9: situation we all knew is not sustainable. 100 00:05:29,320 --> 00:05:32,359 Speaker 3: CEO of Pfizer, Albert will speaking there alongside Donald Trump 101 00:05:32,400 --> 00:05:35,440 Speaker 3: and the White House. The deal secures the company a 102 00:05:35,560 --> 00:05:38,719 Speaker 3: three year grace period from the anticipated pharmer levies. With 103 00:05:38,760 --> 00:05:41,480 Speaker 3: other major drugmakers expected to follow the. 104 00:05:41,440 --> 00:05:43,479 Speaker 1: Move now here. 105 00:05:43,520 --> 00:05:46,440 Speaker 2: In the UK, Prime Minister Ki Stormer has attempted to 106 00:05:46,720 --> 00:05:50,680 Speaker 2: quiet speculation about his leadership and take the fight to 107 00:05:50,760 --> 00:05:54,360 Speaker 2: his opposition. During a keynote address at the Labor Party 108 00:05:54,400 --> 00:05:57,440 Speaker 2: conference in Liverpool, he took aim at the pole Topping 109 00:05:57,480 --> 00:06:01,560 Speaker 2: Reform UK Party for its quote pics of grievance, and 110 00:06:01,640 --> 00:06:04,799 Speaker 2: referred to its leader Nigel Farage as a snake oil 111 00:06:04,880 --> 00:06:09,159 Speaker 2: salesman to an audience waving flags. He concluded these speech 112 00:06:09,240 --> 00:06:12,800 Speaker 2: with a rallying cry to progressive patriotism. 113 00:06:13,360 --> 00:06:16,520 Speaker 10: I believe Britain can come together, that we can pursue 114 00:06:16,560 --> 00:06:20,120 Speaker 10: a shared destination, that we can unite around a common good. 115 00:06:20,440 --> 00:06:23,960 Speaker 10: That is my ambition, the purpose of this government and 116 00:06:24,160 --> 00:06:27,680 Speaker 10: decline reform our public services, grow our economy from the 117 00:06:27,720 --> 00:06:31,120 Speaker 10: grassroots and with resolve, with respect, with a flag at 118 00:06:31,160 --> 00:06:34,359 Speaker 10: our hands, we've got renew this country until we consa 119 00:06:34,640 --> 00:06:38,560 Speaker 10: with total conviction. But Britain is built for all. 120 00:06:40,640 --> 00:06:44,239 Speaker 2: MPs and delegates told Bloomberg Starmer was in a more 121 00:06:44,400 --> 00:06:48,640 Speaker 2: comfortable position after his speech than he was at the 122 00:06:48,680 --> 00:06:51,560 Speaker 2: beginning of the conference, buying his government some time to 123 00:06:51,640 --> 00:06:56,039 Speaker 2: consolidate its position bars in the immediate vicinity of the 124 00:06:56,040 --> 00:06:59,320 Speaker 2: conference told Bloomberg that they had sold out of Champagne. However, 125 00:06:59,480 --> 00:07:02,320 Speaker 2: a UK indicator of business confidence has fallen to a 126 00:07:02,360 --> 00:07:06,479 Speaker 2: record low. The Institute of Directors Economic Confidence Index gave 127 00:07:06,520 --> 00:07:11,000 Speaker 2: its lowest reading since twenty sixteen, as business leaders ready 128 00:07:11,040 --> 00:07:15,120 Speaker 2: themselves for potential tax rises in the Chancellor's aught to budget. 129 00:07:16,520 --> 00:07:19,840 Speaker 3: Research from McKinsey says women will control roughly thirty eight 130 00:07:19,920 --> 00:07:23,360 Speaker 3: percent of investable assets by the year twenty thirty, close 131 00:07:23,360 --> 00:07:26,200 Speaker 3: to double last year's total. The shift will be discussed 132 00:07:26,240 --> 00:07:29,360 Speaker 3: during Bloomberg's second annual Women, Money and Power Conference in 133 00:07:29,400 --> 00:07:32,880 Speaker 3: London today, featuring some of the most influential voices from 134 00:07:32,920 --> 00:07:36,800 Speaker 3: across the global finance industry. The agenda covers issues including 135 00:07:36,800 --> 00:07:40,080 Speaker 3: the future of investing, real estate and private markets. Ahead 136 00:07:40,080 --> 00:07:43,200 Speaker 3: of attending the event, Diane Trader, founder and CEO of 137 00:07:43,320 --> 00:07:47,320 Speaker 3: Impact Investing Group The New Climate, said opportunities in her 138 00:07:47,440 --> 00:07:48,600 Speaker 3: sector are growing. 139 00:07:49,200 --> 00:07:52,360 Speaker 11: People in Europe, in particularly in the UK, family offices 140 00:07:52,360 --> 00:07:55,400 Speaker 11: and the like are wondering how to participate in this. 141 00:07:55,480 --> 00:07:59,320 Speaker 11: There's going to be tremendous, tremendous investment opportunities and so 142 00:07:59,680 --> 00:08:01,840 Speaker 11: they just want to be more connected and I think 143 00:08:02,320 --> 00:08:04,440 Speaker 11: with our climate salans, the way that we bring together 144 00:08:04,480 --> 00:08:07,600 Speaker 11: these conversations and you know, some examples in such an 145 00:08:07,640 --> 00:08:09,800 Speaker 11: areas of investment, I think that that's really helping to 146 00:08:09,840 --> 00:08:10,640 Speaker 11: move this forward. 147 00:08:11,360 --> 00:08:14,000 Speaker 3: Let's do on Trader, founder and CEO of the New Climate. 148 00:08:14,280 --> 00:08:17,480 Speaker 3: Speakers at today's conference include Jenny Johnson, the President's CEO, 149 00:08:17,520 --> 00:08:21,840 Speaker 3: It's Franklin Templeton, Ariander Rothschild, CEO of Edmund Rothschild, and 150 00:08:22,000 --> 00:08:25,520 Speaker 3: Julia Hoggett, CEO of the London Stock Exchange. 151 00:08:26,360 --> 00:08:28,320 Speaker 2: So in a moment, so we're going to bring you 152 00:08:28,360 --> 00:08:31,280 Speaker 2: more on the US government shutdown and how markets are 153 00:08:31,520 --> 00:08:35,160 Speaker 2: reacting to it. But before we get to that not 154 00:08:35,280 --> 00:08:38,680 Speaker 2: big conversation, something else that we've been focusing on this morning. 155 00:08:39,840 --> 00:08:44,400 Speaker 2: Some luxury butter with the luxury price tax. Stephon Yeah, Klie. 156 00:08:44,480 --> 00:08:47,280 Speaker 3: Christina Peters has been writing about a craze among Americans 157 00:08:47,280 --> 00:08:51,839 Speaker 3: for animal farm creamery butter Maid in Vermont, extra creamy 158 00:08:51,880 --> 00:08:55,160 Speaker 3: cultured butter. The price sixty dollars per pound or forty 159 00:08:55,160 --> 00:08:58,400 Speaker 3: five pounds or fifty euro, around fourteen times the average 160 00:08:58,440 --> 00:08:58,839 Speaker 3: price of. 161 00:08:58,800 --> 00:08:59,920 Speaker 5: Butter in the United States. 162 00:09:00,320 --> 00:09:02,760 Speaker 3: But I found fascinating about this is essentially what they're 163 00:09:02,760 --> 00:09:05,160 Speaker 3: buying is European butter or butter, but you and I 164 00:09:05,200 --> 00:09:07,320 Speaker 3: can buy in the supermarket every day of the week. 165 00:09:07,360 --> 00:09:09,960 Speaker 3: It has a higher rate. This part I didn't actually know. 166 00:09:10,040 --> 00:09:13,080 Speaker 3: So European butter required must have at least eighty two 167 00:09:13,200 --> 00:09:16,280 Speaker 3: percent butter fat, whereas American butter must have a minimum 168 00:09:16,320 --> 00:09:19,960 Speaker 3: of eighty percent. So already the taste is different. But 169 00:09:20,080 --> 00:09:23,360 Speaker 3: essentially this is you know, I love buying fancy butter, frankly, 170 00:09:23,520 --> 00:09:25,160 Speaker 3: but the idea of paying sixty. 171 00:09:24,880 --> 00:09:27,280 Speaker 5: Dollars for it is outrageous. Frankly. 172 00:09:28,160 --> 00:09:30,319 Speaker 2: Yeah, I look, I think this goes into the camp 173 00:09:30,320 --> 00:09:33,240 Speaker 2: of the little luxuries for maybe you know, the one percent. 174 00:09:33,320 --> 00:09:35,640 Speaker 2: I don't know. I did have a look actually at 175 00:09:35,679 --> 00:09:37,640 Speaker 2: some fancy butter. There is such a thing also in 176 00:09:37,679 --> 00:09:41,880 Speaker 2: London eight pounds forty five at La Fromagerie, which is this, 177 00:09:42,000 --> 00:09:44,560 Speaker 2: you know, the high end chain of cheese shops that 178 00:09:44,600 --> 00:09:48,400 Speaker 2: focuses on all things made from milk. Yeah, to me, 179 00:09:48,600 --> 00:09:51,079 Speaker 2: I didn't realize that there was another kind of butter. 180 00:09:51,320 --> 00:09:53,920 Speaker 2: But look, I thought it was an interesting story, isn't it. 181 00:09:53,960 --> 00:09:58,040 Speaker 2: But luxury food is all about even as food price 182 00:09:58,120 --> 00:10:00,360 Speaker 2: inflation in the UK is surging out. 183 00:10:01,040 --> 00:10:03,040 Speaker 3: Yeah, but it was not quite to those levels though, 184 00:10:03,040 --> 00:10:05,320 Speaker 3: which I think is probably a reef for everyone concerned. 185 00:10:05,320 --> 00:10:07,240 Speaker 3: I did start to look up some of the statistics 186 00:10:07,240 --> 00:10:10,520 Speaker 3: around this. France is the number one consumer of butter globally, 187 00:10:10,720 --> 00:10:13,680 Speaker 3: and in Europe the biggest producer is actually Germany, followed 188 00:10:13,679 --> 00:10:15,880 Speaker 3: by France and Ireland. So there you go, some butter 189 00:10:15,960 --> 00:10:18,480 Speaker 3: facts to take with you through your day. Let's bring 190 00:10:18,559 --> 00:10:20,400 Speaker 3: you more now. In the federal government shut down in 191 00:10:20,440 --> 00:10:23,880 Speaker 3: the United States, funding expired just after midnight Washington time, 192 00:10:23,960 --> 00:10:26,720 Speaker 3: or five am in London, after Democrats blocked a Republican 193 00:10:26,840 --> 00:10:30,439 Speaker 3: stop gap funding package which didn't meet their demands a 194 00:10:30,480 --> 00:10:32,480 Speaker 3: little earlier. We spoke to our senior US government out 195 00:10:32,520 --> 00:10:34,679 Speaker 3: of Derek Wolbank, and started by asking him if there 196 00:10:34,760 --> 00:10:37,520 Speaker 3: was any progress towards a deal in the hours running 197 00:10:37,600 --> 00:10:39,120 Speaker 3: up to the deadline. 198 00:10:39,160 --> 00:10:41,600 Speaker 5: Almost none, almost none. 199 00:10:42,280 --> 00:10:45,400 Speaker 12: The Republicans and Democrats are at a pretty big impasse. 200 00:10:45,480 --> 00:10:49,720 Speaker 12: Democrats want additional money for healthcare. Republicans want to have 201 00:10:49,920 --> 00:10:54,000 Speaker 12: just a straight up clean spending bill extension. There's a 202 00:10:54,040 --> 00:10:58,640 Speaker 12: big absence of trust between the two right now, particularly 203 00:10:58,800 --> 00:11:03,240 Speaker 12: over Donald Trump's, you know, moves to aggressively cut the 204 00:11:03,280 --> 00:11:08,840 Speaker 12: federal expense sheet without real consultation with Democrats, and so 205 00:11:08,920 --> 00:11:11,960 Speaker 12: this has been a sort of series of red lines 206 00:11:12,000 --> 00:11:14,840 Speaker 12: that have been crossed. And I would say, you know, 207 00:11:15,000 --> 00:11:20,320 Speaker 12: thinking specifically to that question, we have. You know, sometimes 208 00:11:20,360 --> 00:11:22,920 Speaker 12: you look at the last couple of hours and you 209 00:11:23,440 --> 00:11:26,800 Speaker 12: see people lobbying ideas back and forth, and it looks 210 00:11:26,840 --> 00:11:28,680 Speaker 12: like things might be going forward. 211 00:11:29,120 --> 00:11:30,440 Speaker 5: Really not the case here. 212 00:11:30,480 --> 00:11:33,640 Speaker 12: The last couple of hours was marked by the president 213 00:11:33,760 --> 00:11:40,800 Speaker 12: sharing social media memes absolutely trashing his democratic counterparts. So 214 00:11:40,840 --> 00:11:43,840 Speaker 12: that's really kind of where we sit right now. A 215 00:11:43,840 --> 00:11:48,319 Speaker 12: lot of acrimony in Washington right now. Government shutdown has started. 216 00:11:48,440 --> 00:11:50,559 Speaker 12: It's unclear how long this is going to go. 217 00:11:51,520 --> 00:11:54,760 Speaker 2: So what happens now to US government operations? 218 00:11:55,800 --> 00:11:59,640 Speaker 12: Well, we begin the process of shut down, and this 219 00:11:59,679 --> 00:12:01,800 Speaker 12: is a this is a little bit of a tricky thing, 220 00:12:01,920 --> 00:12:06,160 Speaker 12: right because the US divides between essential things that need 221 00:12:06,240 --> 00:12:10,040 Speaker 12: to get done and stuff that's deemed non essential. Basically, 222 00:12:10,160 --> 00:12:13,160 Speaker 12: think of it as about a sixty forty split. Essential 223 00:12:13,200 --> 00:12:17,600 Speaker 12: things would be like veterans' hospitals. You know, you're not 224 00:12:17,640 --> 00:12:22,000 Speaker 12: going to kick sick people out onto the street, the military, 225 00:12:22,160 --> 00:12:26,200 Speaker 12: things of that nature, but a lot of government workers 226 00:12:26,280 --> 00:12:28,640 Speaker 12: are going to get furloughed, which means that they are 227 00:12:28,640 --> 00:12:32,760 Speaker 12: going to be sent home, told not to work, told 228 00:12:32,800 --> 00:12:36,439 Speaker 12: not to do anything, and to come back only when funding. 229 00:12:36,200 --> 00:12:37,160 Speaker 5: Kicks back in. 230 00:12:37,640 --> 00:12:40,560 Speaker 12: Those who are still on the job won't get a 231 00:12:40,600 --> 00:12:43,840 Speaker 12: paycheck until all of this is done, and that starts 232 00:12:43,880 --> 00:12:48,479 Speaker 12: getting really significant really quickly, because once you start missing paychecks, 233 00:12:48,760 --> 00:12:52,319 Speaker 12: you're starting to talk about you know, members of the 234 00:12:52,440 --> 00:12:55,120 Speaker 12: Armed services and making their mortgage payments, and it gets 235 00:12:55,160 --> 00:12:56,640 Speaker 12: really serious, really quickly. 236 00:12:57,080 --> 00:12:59,600 Speaker 3: And that's the political jeopardy here as well. What does 237 00:12:59,600 --> 00:13:03,679 Speaker 3: it mean politically for Donald Trump but also for Democrats. 238 00:13:04,679 --> 00:13:07,120 Speaker 12: Well, I think that's a real key question. I think 239 00:13:07,160 --> 00:13:10,160 Speaker 12: nobody really knows the answer. Some polls that I saw 240 00:13:10,440 --> 00:13:13,040 Speaker 12: ahead of the shutdown were suggesting that there was going 241 00:13:13,080 --> 00:13:15,120 Speaker 12: to be a bit of a pox on both their houses, 242 00:13:15,400 --> 00:13:19,120 Speaker 12: with maybe a slight lean more towards blaming Republicans. But 243 00:13:19,240 --> 00:13:21,760 Speaker 12: let's see what that looks like a week into it, 244 00:13:21,840 --> 00:13:24,280 Speaker 12: two weeks into it, if we go, you know that. 245 00:13:24,400 --> 00:13:25,360 Speaker 5: Long or longer. 246 00:13:25,800 --> 00:13:28,000 Speaker 12: The other thing that I should say here is that 247 00:13:28,559 --> 00:13:32,800 Speaker 12: is that you know, shutdowns are not like you know, 248 00:13:32,840 --> 00:13:35,840 Speaker 12: there's always this tendency to sort of say, okay, who 249 00:13:35,880 --> 00:13:38,640 Speaker 12: wins who loses in a political context, but it's not 250 00:13:38,679 --> 00:13:41,160 Speaker 12: really a boxing match. You can't kind of score it 251 00:13:41,280 --> 00:13:43,800 Speaker 12: like that. One of the things that I would note 252 00:13:43,800 --> 00:13:47,199 Speaker 12: is that there have been prior shutdowns that Republicans instigated 253 00:13:47,520 --> 00:13:51,640 Speaker 12: where they just flat out lost the shutdown, according to 254 00:13:51,679 --> 00:13:55,520 Speaker 12: everyone involved, had to crawl back pass a funding bill, 255 00:13:55,600 --> 00:13:58,960 Speaker 12: getting nothing that they wanted, and then eventually went to 256 00:13:59,000 --> 00:14:01,880 Speaker 12: win on when the next elections at hand, you know, 257 00:14:01,920 --> 00:14:02,560 Speaker 12: a year later. 258 00:14:02,640 --> 00:14:04,280 Speaker 5: So that has happened before. 259 00:14:04,360 --> 00:14:07,080 Speaker 12: So it's not like there's necessarily a one to one 260 00:14:07,160 --> 00:14:12,520 Speaker 12: relationship here. Some of this is about, you know, trying 261 00:14:12,559 --> 00:14:15,640 Speaker 12: to trying to make your base more enthusiastic and gin 262 00:14:15,800 --> 00:14:18,280 Speaker 12: that up, you know. But really a lot of this 263 00:14:18,400 --> 00:14:21,160 Speaker 12: and where the big worry is for both sides is 264 00:14:21,160 --> 00:14:25,360 Speaker 12: that independent voters generally just want the government to get 265 00:14:25,360 --> 00:14:30,880 Speaker 12: on with the business of doing things in a sensible fashion, right, 266 00:14:31,800 --> 00:14:36,560 Speaker 12: and the shutdown is basically the antithesis of all of that. 267 00:14:37,400 --> 00:14:42,280 Speaker 2: Okay, So the thing is what is the path from here? 268 00:14:42,400 --> 00:14:48,480 Speaker 2: I mean, Republicans control both houses of Congress, they control 269 00:14:48,560 --> 00:14:51,720 Speaker 2: the White House, but they do need some Democrats. What 270 00:14:51,920 --> 00:14:53,360 Speaker 2: is the path forwards? 271 00:14:54,440 --> 00:14:57,479 Speaker 12: Yeah, that's right, And then the math is really straightforward. 272 00:14:57,880 --> 00:15:02,400 Speaker 12: Republicans need votes that adds to eight because Rand Paul 273 00:15:02,480 --> 00:15:05,080 Speaker 12: or Kentucky Republican tends to vote know on these things. 274 00:15:05,600 --> 00:15:08,800 Speaker 12: The last vote they got they got three Democratic votes, 275 00:15:09,480 --> 00:15:12,840 Speaker 12: which is actually an improvement because the time before that 276 00:15:12,880 --> 00:15:14,640 Speaker 12: they only got one. So there's been a little bit 277 00:15:14,640 --> 00:15:18,240 Speaker 12: of movement there, but you know, you're still sitting there 278 00:15:18,280 --> 00:15:21,560 Speaker 12: talking about I need about five more Democratic votes. If 279 00:15:21,600 --> 00:15:26,760 Speaker 12: I'm Republicans, that does get to be quite a challenging task. 280 00:15:27,120 --> 00:15:29,520 Speaker 12: I see this going kind of one of two ways 281 00:15:29,720 --> 00:15:32,120 Speaker 12: right now, just looking at the options on the table. 282 00:15:32,520 --> 00:15:35,240 Speaker 5: The first way is Republicans. 283 00:15:34,760 --> 00:15:37,680 Speaker 12: And Democrats do actually have an exit ramp if they 284 00:15:37,720 --> 00:15:42,480 Speaker 12: wanted to start talking about healthcare subsidy money that Democrats want. 285 00:15:42,680 --> 00:15:47,400 Speaker 12: There's a possibility that you could get some deal where 286 00:15:47,400 --> 00:15:52,320 Speaker 12: Democrats agree to a short extension while serious talks are ongoing. 287 00:15:52,400 --> 00:15:56,440 Speaker 12: That's one path. The other path, quite frankly, is someone 288 00:15:56,680 --> 00:16:00,880 Speaker 12: caves and just gives up. And of those things are 289 00:16:00,920 --> 00:16:03,400 Speaker 12: ways that we've seen shutdowns resolved previously. 290 00:16:03,920 --> 00:16:06,280 Speaker 5: Those are really the two big things right now. 291 00:16:06,320 --> 00:16:09,840 Speaker 12: And as I say, walking into this shutdown right now, 292 00:16:12,600 --> 00:16:16,720 Speaker 12: that road has been papered by you know, just straight 293 00:16:16,920 --> 00:16:21,200 Speaker 12: acrimony between the two sides and it's a lot of 294 00:16:21,280 --> 00:16:24,360 Speaker 12: tension right now, so you know, let's see where we go. 295 00:16:24,560 --> 00:16:26,600 Speaker 5: But those are the two most. 296 00:16:26,360 --> 00:16:29,080 Speaker 12: Obvious ways out if there is going to be a 297 00:16:29,120 --> 00:16:31,560 Speaker 12: way out that either side wants to actually take. 298 00:16:31,960 --> 00:16:32,480 Speaker 5: That was our saying. 299 00:16:32,480 --> 00:16:34,800 Speaker 3: You're at US government ader Derek Welbank speaking to us 300 00:16:34,800 --> 00:16:35,520 Speaker 3: a little earlier. 301 00:16:36,120 --> 00:16:39,040 Speaker 2: Well, let's think also about what this means for markets 302 00:16:39,080 --> 00:16:42,280 Speaker 2: now and bringing our Markets Live Executive Editor Mark Hudmore, 303 00:16:42,360 --> 00:16:45,720 Speaker 2: Good morning, Mark. In advance of the deadline for the 304 00:16:45,800 --> 00:16:49,160 Speaker 2: US government shut down, we did see gold rallying to 305 00:16:49,200 --> 00:16:53,560 Speaker 2: another record high, the dollars weakening. What does the shutdown 306 00:16:53,680 --> 00:16:55,680 Speaker 2: mean for markets. 307 00:16:55,640 --> 00:16:57,120 Speaker 1: In the short term? Very little. 308 00:16:57,520 --> 00:17:00,560 Speaker 6: It's a creeping story rather than a binary story for now. 309 00:17:00,680 --> 00:17:03,920 Speaker 6: If it extends for many weeks, it can become a 310 00:17:03,960 --> 00:17:08,040 Speaker 6: sudden binary story and really matter. So it's a creeping story. 311 00:17:08,119 --> 00:17:10,840 Speaker 6: Does still matter, but it's how does that matter? It 312 00:17:10,880 --> 00:17:14,320 Speaker 6: means largely a continuation of the trends we've seen. You 313 00:17:14,640 --> 00:17:16,159 Speaker 6: talked about a goals at a record there, but you 314 00:17:16,240 --> 00:17:19,280 Speaker 6: might use the word another record and goals we're making 315 00:17:19,320 --> 00:17:20,240 Speaker 6: records all year. 316 00:17:20,280 --> 00:17:21,639 Speaker 1: Such, just continuation that trend. 317 00:17:21,920 --> 00:17:24,520 Speaker 6: It's a continuation of the dollar deppreciation, trend we've seen 318 00:17:24,560 --> 00:17:29,119 Speaker 6: all year. Stocks should probably continue to be okay. The 319 00:17:29,160 --> 00:17:32,360 Speaker 6: one that's interesting, I think is that it's completely consensus, 320 00:17:32,440 --> 00:17:36,679 Speaker 6: and that's been the precedent that in shutdowns people by treasuries. 321 00:17:37,400 --> 00:17:39,120 Speaker 1: I'm a little bit more. 322 00:17:39,280 --> 00:17:41,120 Speaker 6: Worried about the conclusion that to Morad, I think that'll 323 00:17:41,160 --> 00:17:43,760 Speaker 6: be the knee jerk reactions as a run to a haven. 324 00:17:43,840 --> 00:17:46,840 Speaker 6: But treasury's haven status has been eroded over the past year, 325 00:17:46,960 --> 00:17:48,480 Speaker 6: so that might be the trade that disappoints. 326 00:17:49,440 --> 00:17:51,480 Speaker 3: Where's the cliff edge, then, mark where I just think 327 00:17:51,520 --> 00:17:52,720 Speaker 3: gets serious for markets. 328 00:17:54,359 --> 00:17:57,800 Speaker 6: I don't think people are are sure on that, but 329 00:17:58,240 --> 00:17:59,920 Speaker 6: you know, you're talking weeks away. 330 00:18:00,080 --> 00:18:01,000 Speaker 1: I mean, I thought it was very interesting. 331 00:18:01,000 --> 00:18:03,560 Speaker 6: Bloomberger Economics made the point that it'll be pretty much 332 00:18:03,560 --> 00:18:08,119 Speaker 6: irrelevant for fourth quarter GDP in the US unless it 333 00:18:08,160 --> 00:18:11,879 Speaker 6: extends beyond mid November. So they're basically saying economically, it 334 00:18:11,880 --> 00:18:14,440 Speaker 6: doesn't matter unless it's like we're talking six weeks or more. 335 00:18:14,720 --> 00:18:17,800 Speaker 6: I think markets will start to panic before then, but 336 00:18:17,920 --> 00:18:20,159 Speaker 6: you know, probably we could go a month before this 337 00:18:20,240 --> 00:18:23,080 Speaker 6: becomes a binary cliff edge. Now, the point is you 338 00:18:23,119 --> 00:18:24,639 Speaker 6: don't want it to get there, because it does get 339 00:18:24,640 --> 00:18:26,720 Speaker 6: to the cliff edge. These are markets that are not 340 00:18:26,840 --> 00:18:28,879 Speaker 6: priced to be disrupted. These are markets where people are 341 00:18:28,960 --> 00:18:31,720 Speaker 6: very extended in the consensus trades. So if we go 342 00:18:31,800 --> 00:18:34,360 Speaker 6: off that cliff edge, it could be horrible, but I 343 00:18:34,480 --> 00:18:35,600 Speaker 6: you know, we're a long way from that. 344 00:18:36,560 --> 00:18:38,439 Speaker 2: Yeah, okay, Well, taught to us a little bit more 345 00:18:38,440 --> 00:18:41,720 Speaker 2: about the bond markets then, because reporting on bond traders 346 00:18:42,080 --> 00:18:45,399 Speaker 2: putting money into options bets that ten year treasuries are 347 00:18:45,400 --> 00:18:49,480 Speaker 2: on the cusp of a significant rally. So how does 348 00:18:49,520 --> 00:18:52,480 Speaker 2: that thread into your view on treasuries? 349 00:18:52,480 --> 00:18:56,040 Speaker 6: Now, yeah, I mean that's kind of a consensus the 350 00:18:56,040 --> 00:18:58,360 Speaker 6: moment that this will be support treasuries, and it's supported 351 00:18:58,359 --> 00:19:00,560 Speaker 6: by the fact that, you know, the shut inn we'll 352 00:19:00,560 --> 00:19:03,919 Speaker 6: have some short term dynamics in terms of that it'll. 353 00:19:03,680 --> 00:19:05,880 Speaker 1: Delay data or cloud. 354 00:19:05,600 --> 00:19:08,119 Speaker 6: You know, or undermine the data that we do get, 355 00:19:08,359 --> 00:19:11,399 Speaker 6: and therefore there's no chance to kind of disrupt the 356 00:19:11,760 --> 00:19:15,320 Speaker 6: narrative that the administration is pushing, which is that inflation 357 00:19:15,400 --> 00:19:18,320 Speaker 6: is under control and the US needs to cut rates rapidly, 358 00:19:18,720 --> 00:19:21,480 Speaker 6: and that'll be facilitated at some point because if you know, 359 00:19:21,560 --> 00:19:23,400 Speaker 6: if you get a lot of fured workers who then 360 00:19:23,440 --> 00:19:25,960 Speaker 6: go on temporary job leaver status, you could get a 361 00:19:25,960 --> 00:19:29,040 Speaker 6: temporary spike at unemployment rate, which would then help Trump 362 00:19:29,080 --> 00:19:30,679 Speaker 6: put further pressure on the FED, And of course FED 363 00:19:30,720 --> 00:19:33,040 Speaker 6: officials would look through that theoretically, but if they're getting 364 00:19:33,040 --> 00:19:34,720 Speaker 6: a lot of pressure kind of going, oh my god, 365 00:19:34,760 --> 00:19:37,960 Speaker 6: we need to you know, cut rates dramatically, and then 366 00:19:38,000 --> 00:19:40,640 Speaker 6: suddenly those those insust rates would would sorry that theo's 367 00:19:40,760 --> 00:19:43,840 Speaker 6: unemployment rates would fall back down after the shut and ended. 368 00:19:44,080 --> 00:19:46,360 Speaker 6: So this kind of all plays into the administration kind 369 00:19:46,359 --> 00:19:49,080 Speaker 6: of hands, you know, And that's why I understand why 370 00:19:49,080 --> 00:19:52,000 Speaker 6: people are kind of going, hey, buy treasuries. The administration 371 00:19:52,040 --> 00:19:54,920 Speaker 6: wants to yields lower. It's the kind of consensus play here. 372 00:19:55,240 --> 00:19:58,320 Speaker 6: I just feel it's very consensus, and everyone knows that 373 00:19:58,400 --> 00:20:00,480 Speaker 6: the real problem in the US has got is that 374 00:20:00,760 --> 00:20:02,880 Speaker 6: it's got an inflation problem that it just can't get 375 00:20:02,920 --> 00:20:05,000 Speaker 6: away from. We talk about we're at the end of 376 00:20:05,000 --> 00:20:08,040 Speaker 6: the kind of deflationary phase, dissinflationary phase, and we're still 377 00:20:08,080 --> 00:20:10,879 Speaker 6: sticky above three percent. Really, so I think that I 378 00:20:10,880 --> 00:20:12,440 Speaker 6: don't think you'ld go massively lower. 379 00:20:12,440 --> 00:20:14,040 Speaker 1: But even if there's a knee jerk reaction. 380 00:20:14,440 --> 00:20:16,679 Speaker 3: Just on the question of the data release is being delayed, 381 00:20:16,680 --> 00:20:19,280 Speaker 3: of course, Friday's jobs report and focus for that. I mean, 382 00:20:19,680 --> 00:20:22,639 Speaker 3: how serious is that or how much does that affect 383 00:20:22,680 --> 00:20:24,399 Speaker 3: things in the medium term if we don't get that 384 00:20:24,480 --> 00:20:25,240 Speaker 3: data for a while. 385 00:20:26,280 --> 00:20:27,679 Speaker 1: Medium term, like not at all. 386 00:20:27,720 --> 00:20:31,120 Speaker 6: I mean, look, no one can remember, you know when 387 00:20:31,160 --> 00:20:33,199 Speaker 6: we got delay data before you go look up in 388 00:20:33,240 --> 00:20:35,040 Speaker 6: the precedent and go, yeah, that didn't come until two 389 00:20:35,040 --> 00:20:37,160 Speaker 6: weeks later. Oh yeah, we didn't get the CPI report 390 00:20:37,240 --> 00:20:39,639 Speaker 6: until thirtieth of October rather than sixteenth of October. And 391 00:20:39,680 --> 00:20:41,400 Speaker 6: like I was trading back during some of this the time, 392 00:20:41,480 --> 00:20:44,240 Speaker 6: you know, you move on from it. It doesn't decide the 393 00:20:44,240 --> 00:20:47,160 Speaker 6: medium term future from a short term point of view. Look, 394 00:20:47,200 --> 00:20:49,720 Speaker 6: first of all, the FED looks through all these delays 395 00:20:49,760 --> 00:20:52,640 Speaker 6: and stuff. It looks all through all these temporary problems 396 00:20:52,680 --> 00:20:54,240 Speaker 6: as long as they stay tempering. And that's why I 397 00:20:54,240 --> 00:20:55,760 Speaker 6: said there is a cliff edge, but it's not close 398 00:20:56,160 --> 00:20:58,560 Speaker 6: as long as temporarily look through it. Probably the other 399 00:20:58,760 --> 00:21:03,120 Speaker 6: thing is we over react to other alternative forms of data, 400 00:21:03,160 --> 00:21:06,560 Speaker 6: of which Bloomberg provides a lot and private forms of data. 401 00:21:06,640 --> 00:21:09,359 Speaker 6: People aren't used to look at these data's resources to there. 402 00:21:09,520 --> 00:21:13,040 Speaker 6: They're algos, their programs, their models, they're spreadsheets aren't worked 403 00:21:13,080 --> 00:21:14,720 Speaker 6: to trigger off them, which causes a little bit of 404 00:21:14,840 --> 00:21:17,840 Speaker 6: like disruption and kind of unnecessary short term volatility, but 405 00:21:17,880 --> 00:21:20,520 Speaker 6: again non medium term. So everything is important that this 406 00:21:20,560 --> 00:21:23,600 Speaker 6: causes is this is ultimately going to be a short 407 00:21:23,680 --> 00:21:25,560 Speaker 6: term story that consumes us for a couple of weeks 408 00:21:25,720 --> 00:21:27,800 Speaker 6: unless it passes some binary tipping point. And as I 409 00:21:27,800 --> 00:21:29,800 Speaker 6: said that binar timpoint point, we don't know when it is, 410 00:21:29,840 --> 00:21:30,960 Speaker 6: but it's probably a few weeks away. 411 00:21:31,440 --> 00:21:33,480 Speaker 3: Mark, great to have you with us. Thanks for your analysis. 412 00:21:33,480 --> 00:21:37,680 Speaker 3: Our Markets Live Executive editor Mark cod Moore, stay with us. 413 00:21:37,880 --> 00:21:42,760 Speaker 3: More from Bloomberg daybaqube coming up after this. Now let's 414 00:21:42,840 --> 00:21:46,919 Speaker 3: bring you another of our top interviews this morning. So 415 00:21:47,119 --> 00:21:51,720 Speaker 3: this year has seen huge uncertainty in terms of trade tensions, 416 00:21:51,720 --> 00:21:56,040 Speaker 3: fiscal policy, geopolitical risks. What does that mean for investors, 417 00:21:56,040 --> 00:21:59,680 Speaker 3: for CEOs and philanthropists looking forwards? Well, this is at 418 00:21:59,680 --> 00:22:04,200 Speaker 3: the high of Bloomberg's Women, Money and Power Conference today. 419 00:22:04,640 --> 00:22:07,760 Speaker 3: When it comes to the energy transition, climate change continues 420 00:22:07,800 --> 00:22:10,560 Speaker 3: to accelerate even as the Trump administration is pushed to 421 00:22:10,720 --> 00:22:16,040 Speaker 3: dismantle renewable energy projects and as we've seen ourtuitional intelligence 422 00:22:16,080 --> 00:22:20,520 Speaker 3: create power demands globally. Now the new climate is a 423 00:22:20,560 --> 00:22:24,720 Speaker 3: group which has tasked itself with accelerating institutional investment into 424 00:22:24,800 --> 00:22:28,520 Speaker 3: climate change technology. So ahead of the summit, I've been 425 00:22:28,520 --> 00:22:31,800 Speaker 3: speaking to the group's founder and CEO, Diane Schrader, and 426 00:22:32,080 --> 00:22:35,600 Speaker 3: been asking her what is on offer to investors who 427 00:22:35,680 --> 00:22:37,800 Speaker 3: are interested in the climate space. 428 00:22:37,880 --> 00:22:38,120 Speaker 12: Now. 429 00:22:38,560 --> 00:22:42,159 Speaker 11: I think that there are opportunities everywhere. I think one 430 00:22:42,240 --> 00:22:45,040 Speaker 11: of the things that we look at is, particularly the 431 00:22:45,160 --> 00:22:49,280 Speaker 11: energy side, is infrastructure. There's transmission, there's storage, There's all 432 00:22:49,320 --> 00:22:53,639 Speaker 11: sorts of opportunities. Ann and you've mentioned when that Europe 433 00:22:53,640 --> 00:22:57,800 Speaker 11: is certainly a leader in this area as well. If 434 00:22:57,800 --> 00:23:00,480 Speaker 11: you go back to nuclear, one of the things that 435 00:23:00,480 --> 00:23:03,199 Speaker 11: that the UK and the United States have done is 436 00:23:03,240 --> 00:23:06,960 Speaker 11: they've agreed to share lessons. And I think that not 437 00:23:07,000 --> 00:23:09,240 Speaker 11: only does this applied to nuclear, but I think especially 438 00:23:09,280 --> 00:23:12,400 Speaker 11: in private markets, this applies to all of the areas 439 00:23:12,840 --> 00:23:16,160 Speaker 11: of energy. You know, where we can go into new 440 00:23:16,240 --> 00:23:20,480 Speaker 11: frontiers and then share the lessons of those early pioneering 441 00:23:20,480 --> 00:23:23,359 Speaker 11: projects such that we can standardize and expand on those. 442 00:23:24,000 --> 00:23:28,320 Speaker 11: That's treminously important. And again we've seen this already in solar, 443 00:23:28,359 --> 00:23:30,879 Speaker 11: We've seen this in wind, We're seeing this in storage. 444 00:23:31,040 --> 00:23:33,960 Speaker 11: We'll see this as again we go further into nuclear, 445 00:23:34,040 --> 00:23:35,720 Speaker 11: enhanced geothermal and such. 446 00:23:37,080 --> 00:23:40,920 Speaker 2: You've just finished hosting your National Security Salon event, which 447 00:23:41,520 --> 00:23:45,720 Speaker 2: has been looking at the intersection between climate, national security, 448 00:23:45,840 --> 00:23:50,800 Speaker 2: and these institutional investors and investments. You had I think 449 00:23:51,240 --> 00:23:54,600 Speaker 2: something like thirteen trillion dollars in terms of assets onto 450 00:23:54,640 --> 00:23:59,000 Speaker 2: management being managed by the attendees. Did you get the 451 00:23:59,040 --> 00:24:01,800 Speaker 2: sort of buy in the you'd hoped for from that event? 452 00:24:03,320 --> 00:24:04,880 Speaker 7: Oh, it was absolutely thrilling. 453 00:24:05,320 --> 00:24:09,000 Speaker 11: We've been hosting the Climate Salon for eight years and 454 00:24:09,040 --> 00:24:12,600 Speaker 11: I had been saying that peak salon was in London 455 00:24:12,640 --> 00:24:15,640 Speaker 11: going into the Glasgow cop going back in twenty twenty one, 456 00:24:15,840 --> 00:24:18,639 Speaker 11: we had about eleven trillion nascets center management at that salon, 457 00:24:18,760 --> 00:24:21,080 Speaker 11: and if you look back at the trends, there is 458 00:24:21,160 --> 00:24:25,960 Speaker 11: tremendous interest in climate, not only from governments, from corporations, 459 00:24:26,000 --> 00:24:31,120 Speaker 11: from banks, and certainly from institutional investors. And so this year, 460 00:24:31,480 --> 00:24:34,639 Speaker 11: as you'd said, there are some kind of policy headwinds 461 00:24:35,160 --> 00:24:37,480 Speaker 11: in the climate area, and so it was surprising to 462 00:24:37,560 --> 00:24:41,760 Speaker 11: us to see so much interest in this particular intersection. Again, 463 00:24:41,840 --> 00:24:44,879 Speaker 11: it goes back to the fact that a lot of 464 00:24:44,920 --> 00:24:48,560 Speaker 11: this is focused on infrastructure, and these are very big 465 00:24:48,560 --> 00:24:52,160 Speaker 11: ticket items and so it takes institutional investment to drive 466 00:24:52,200 --> 00:24:52,679 Speaker 11: it forward. 467 00:24:53,440 --> 00:24:57,520 Speaker 2: I suppose there's a lot of attention also on the 468 00:24:57,600 --> 00:25:01,760 Speaker 2: China model effectively, which is not either all but and 469 00:25:02,040 --> 00:25:05,879 Speaker 2: when it comes to renewables and the carbon economy, do 470 00:25:05,920 --> 00:25:08,359 Speaker 2: you think that others are taking lessons away from that 471 00:25:08,520 --> 00:25:10,719 Speaker 2: strategy that is evident in China. 472 00:25:12,400 --> 00:25:16,400 Speaker 11: There's a tremendous, tremendous discussion about China at Climate Week 473 00:25:16,680 --> 00:25:20,159 Speaker 11: that I just attended last week, and I think that 474 00:25:20,200 --> 00:25:22,720 Speaker 11: a lot of folks are saying that I here in 475 00:25:22,720 --> 00:25:26,040 Speaker 11: the United States were really good at inventing from zero 476 00:25:26,119 --> 00:25:28,560 Speaker 11: to one, and China is great from one to two. 477 00:25:29,280 --> 00:25:31,960 Speaker 11: And if you look at where they've gone in their 478 00:25:32,000 --> 00:25:36,000 Speaker 11: investments and innovation in climate, they're just doing an exceptional 479 00:25:36,080 --> 00:25:41,080 Speaker 11: job of scaling and replicating and standardizing these opportunities. So 480 00:25:41,119 --> 00:25:43,280 Speaker 11: I think there are a lot of takeaways and such 481 00:25:44,359 --> 00:25:47,520 Speaker 11: from China that we could replicate in other places. For sure, 482 00:25:48,200 --> 00:25:50,000 Speaker 11: I would like to see us share, you know, more 483 00:25:50,000 --> 00:25:54,200 Speaker 11: of these technologies and again the information and such from them. 484 00:25:54,640 --> 00:25:57,159 Speaker 7: But it's inspiring. It's inspiring to see. 485 00:25:57,240 --> 00:25:59,760 Speaker 2: The biggest obstacle that you think is standing in the 486 00:25:59,760 --> 00:26:03,960 Speaker 2: way of harnessing institutional investment for climate purposes. 487 00:26:04,080 --> 00:26:06,359 Speaker 7: Right now, it's always product. 488 00:26:06,920 --> 00:26:10,399 Speaker 11: Institutional investors see a lot of opportunities, but they have 489 00:26:10,520 --> 00:26:13,040 Speaker 11: very strict requirements in what they invest in, and so 490 00:26:13,320 --> 00:26:16,439 Speaker 11: what we need is to provide them more opportunities that 491 00:26:16,480 --> 00:26:19,600 Speaker 11: fit their strict criteria. They have long term obligations to meet. 492 00:26:19,640 --> 00:26:22,200 Speaker 11: At the same time, they're also looking at some of 493 00:26:22,240 --> 00:26:26,399 Speaker 11: their shorter term needs as well, and so it's always 494 00:26:26,480 --> 00:26:29,880 Speaker 11: just advancing more product and that means getting some of 495 00:26:29,920 --> 00:26:33,720 Speaker 11: these small to mid range opportunities up to the scale 496 00:26:33,760 --> 00:26:35,880 Speaker 11: that institutional investors need done. 497 00:26:35,960 --> 00:26:38,359 Speaker 2: In the summer, you were in the UK with an 498 00:26:38,400 --> 00:26:41,119 Speaker 2: event and there was a lot of focus on national 499 00:26:41,119 --> 00:26:43,520 Speaker 2: security and energies, especially for the UK. 500 00:26:44,920 --> 00:26:47,880 Speaker 11: We hosted a series of dinners with institutional investors during 501 00:26:47,880 --> 00:26:50,520 Speaker 11: that time and it was interesting. One of them focused 502 00:26:50,560 --> 00:26:55,439 Speaker 11: on this area of climate national security and the big question. 503 00:26:55,560 --> 00:26:59,680 Speaker 11: Particularly there were family offices at that dinner wondering who's 504 00:26:59,760 --> 00:27:03,720 Speaker 11: now security. So if you go back to June and 505 00:27:03,760 --> 00:27:07,000 Speaker 11: there are all these conversations, of course around how needle 506 00:27:07,000 --> 00:27:10,840 Speaker 11: countries are going to participate more in investing in national security. 507 00:27:11,320 --> 00:27:14,399 Speaker 11: A lot of that innovation does come from the United States. Certainly, 508 00:27:14,400 --> 00:27:16,040 Speaker 11: not all of it, but a lot of it does. 509 00:27:16,600 --> 00:27:17,680 Speaker 7: And so I think a. 510 00:27:17,640 --> 00:27:20,040 Speaker 11: Lot of people in Europe, in particularly in the UK, 511 00:27:20,760 --> 00:27:24,280 Speaker 11: family offices and the like, are wondering how to participate 512 00:27:24,320 --> 00:27:28,000 Speaker 11: in this. There's going to be tremendous, tremendous investment opportunities, 513 00:27:28,119 --> 00:27:30,520 Speaker 11: and so they just want to be more connected. And 514 00:27:30,560 --> 00:27:33,000 Speaker 11: I think with our climate salons, the way that we 515 00:27:33,040 --> 00:27:37,080 Speaker 11: bring together these conversations and some examples in such areas 516 00:27:37,080 --> 00:27:39,160 Speaker 11: of investment, I think that that's really helping to move 517 00:27:39,200 --> 00:27:42,200 Speaker 11: this forward. 518 00:27:42,680 --> 00:27:45,399 Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the 519 00:27:45,480 --> 00:27:48,560 Speaker 3: stories making news from London to Wall Street and beyond. 520 00:27:48,880 --> 00:27:52,840 Speaker 2: Look for us on your podcast feed every morning, on Apples, Spotify, 521 00:27:52,960 --> 00:27:54,960 Speaker 2: and anywhere else you get your podcasts. 522 00:27:55,040 --> 00:27:58,080 Speaker 3: You can also listen live each morning on London Dab Radio, 523 00:27:58,119 --> 00:28:00,520 Speaker 3: the Bloomberg Business app, and Bloomberg. 524 00:28:00,880 --> 00:28:03,640 Speaker 2: Our flagship New York station. Is also available on your 525 00:28:03,680 --> 00:28:08,359 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 526 00:28:08,600 --> 00:28:09,920 Speaker 2: I'm Caroline Hepka and. 527 00:28:09,880 --> 00:28:12,520 Speaker 3: I'm Stephen Carol. Join us again tomorrow morning for all 528 00:28:12,560 --> 00:28:14,960 Speaker 3: the news you need to start your day right here 529 00:28:15,000 --> 00:28:20,200 Speaker 3: on Bloomberg Daybreak Europe.