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

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Speaker 2: This is the Bloomberg Daybreak europ podcast, available every morning

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

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Speaker 2: fourth of December in London. I'm Stephen Carroll.

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Speaker 1: And I'm Caroline Hepke. Coming up today, French President Emmanuel

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Speaker 1: Macon asks lawmakers to reject a no confidence motion that

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Speaker 1: would topple the government.

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Speaker 2: South Korea's leader ignites a political crisis after declaring and

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Speaker 2: then lifting martial law in the space of six hours.

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Speaker 1: Plus another blow for the city. London stock market shrinks

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Speaker 1: at the fastest pace in over a decade, as Revolute

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Speaker 1: CEO says he'd rather list in the US. Let's start

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Speaker 1: with a roundup of our top stories.

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Speaker 2: France's President Emanuel Macrar is urging lawmakers not to support

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Speaker 2: and no confidence motion that could topple the government. His

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Speaker 2: appeal comes after the Prime Minister used a constitutional mechanism

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Speaker 2: to force through his budget bill on My mind Day,

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Speaker 2: opening the government up to votes of no confidence. Speaking

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Speaker 2: during a visit to Saudi Arabia, Macron said he wouldn't

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Speaker 2: resign if the motions backed by Mary Lepen's National Rally

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Speaker 2: Party and a left wing coalition passed. During an interview

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Speaker 2: on French television last night, Michelle Broarnier called on politicians

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Speaker 2: to act responsibly.

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Speaker 3: I hope so, and it's indeed possible. It depends on

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Speaker 3: the members of the National Assembly, each whom has a

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Speaker 3: responsibility to the French people, to the voters of their constituency,

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Speaker 3: and before France too, which is at a rather serious moment.

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Speaker 2: Prime Minister Michelle Brognier is speaking through a translator during

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Speaker 2: interview broadcast on Franse and TFAN. Lawmakers in Paris will

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Speaker 2: begin debating the motions at three pm UK time, with

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Speaker 2: the vote expected later. Together, the National Rally and left

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Speaker 2: wing Coalition have enough votes to topple the government.

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Speaker 1: South Korea's opposition parties, including the main Democratic Party, have

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Speaker 1: submitted a motion of impeachment against President yunsuk yol, after

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Speaker 1: he breathed fe imposed martial law. The presidents done the nation,

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Speaker 1: lawmakers and investors with the initial declaration on Tuesday, claiming

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Speaker 1: he was taking the action to protect the country from

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Speaker 1: anti state forces and North Korean sympathizers. The country's military

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Speaker 1: leadership briefly mobilized troops that descended on Parliament before returning

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Speaker 1: to their posts after the president reverse course and rescinded

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Speaker 1: his martial law decree. South Korea's former trade minister, Johan Ku,

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Speaker 1: has been reacting to developments in a Bloomberg interview, I.

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Speaker 4: Think many Koreans find this really shocking and the unbelievable.

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Speaker 4: So actually I have more questions than answered about why

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Speaker 4: it happened and how it happened. For the next two

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Speaker 4: three days. I'm afraid that the political environment may shift

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Speaker 4: radically into this impeachment mode.

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Speaker 1: South Korea's former trade minister there speaking ahead of that

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Speaker 1: motion for impeachment being submitted. South Korea's financial markets are

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Speaker 1: still reeling from the political crisis. The benchmark Cosby is

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Speaker 1: down some two percent close to the end of the

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Speaker 1: trading day. Three year government bond yields trading flat at

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Speaker 1: two point five nine percent, and the one is down

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Speaker 1: some one point two percent against the US dollar, but

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Speaker 1: still above the level before Marshal Law was imposed.

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Speaker 2: London's stock market is shrinking at the fastest pace in

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Speaker 2: over a decade. That's as private equity firms hunt for

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Speaker 2: bargains amongst UK mid cap companies. Bloombergs Teawa out of

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Speaker 2: Bio has more.

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Speaker 5: About forty five companies have delisted from the UK market

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Speaker 5: this year, that's ten percent more than last year. Already,

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Speaker 5: the culprit mergers and acquisitions. The volume of deals has

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Speaker 5: grown by eighty one percent this year, totaling more than

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Speaker 5: one hundred and sixty billion dollars. Foreign private equity firms

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Speaker 5: have been particularly active, closing high profile takeovers of firms,

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Speaker 5: including software provided Trace and video game company Keywords Studios.

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Speaker 5: With UK equities now trading at a record discount of

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Speaker 5: more than forty percent to global peers, the market is

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Speaker 5: likely to remain popular. Earlier this year, UK regulators overhauled

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Speaker 5: listing rules in a bid to attract more IPOs, and

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Speaker 5: despite the losses, the London Stock Exchange Group stays its

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Speaker 5: pipeline looks encouraging. In London, he were added Bio Bloomberg Radio.

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Speaker 1: The CEO of the fintech company Revolute, says listing in

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Speaker 1: the US looks more appealing than floating here in the UK.

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Speaker 1: Nick Sturronsky believes the US market offers a better product,

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Speaker 1: adding that if he were to start Revolute today, he

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Speaker 1: would do so in America. If Revolut does decide to

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Speaker 1: shun the London Stock Exchange, it would be a blow

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Speaker 1: to the market, which is seeing a decline in IPOs

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Speaker 1: and companies also delisting despite government efforts to make it

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Speaker 1: more attractive.

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Speaker 2: Meta is looking to nuclear power as it races to

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Speaker 2: meet the massive electricity needs of it's artificial intelligence ambitions.

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Speaker 2: The Global Tech GIINT says it's asking developers to submit

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Speaker 2: proposals to deliver as much as four gigawatts of reactor

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Speaker 2: capacity starting in the early twenty thirties. The decision is

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Speaker 2: the latest sign of surging interest in nuclear plants that

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Speaker 2: can provide carbon free power to meet around the clock

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Speaker 2: AI needs. The news follows recent announcements from Alphabet and

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Speaker 2: Amazon to invest in companies developing advanced reactor technologies.

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Speaker 1: Those are our top stories for you this morning. Let's

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Speaker 1: get to the markets now, where the costb in South

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Speaker 1: Korea is down by one point four percent after South

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Speaker 1: Korea's political turmoil court investors off god. The broader masciash

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Speaker 1: Pacific index also down two tenths of one percent at

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Speaker 1: stop futures for the US in the green the euro

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Speaker 1: this morning. Given the French turmoil and the oncoming confidence

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Speaker 1: vote is slightly hard against the US stolar one. That's

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Speaker 1: spot zero five.

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Speaker 2: Well, in a moment, we'll bring you more. We're on

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Speaker 2: that conference vote due in France. Also the details and

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Speaker 2: the fallout from South Korea's president un briefly declaring martial

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Speaker 2: law for the first time in more than forty years.

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Speaker 2: But another story that caught our eye this morning to

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Speaker 2: do with the London nightlife scene, which I admit I

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Speaker 2: don't see much of. Not surprising because during the time

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Speaker 2: we get up in the morning, but it has been

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Speaker 2: something we know this it's a story from around post

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Speaker 2: COVID around the world, is that nightclubs didn't reopen and

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Speaker 2: essentially your options of places to go late at night

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Speaker 2: hard changing. And now it's restaurants that are stepping in

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Speaker 2: and they're providing DJs in their dining room, something ar

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Speaker 2: Colie ed Stapele's been writing about.

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Speaker 1: Yeah, I love this story. Look, it's always been quite

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Speaker 1: popular to sort of mix dining and nightlife. When it

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Speaker 1: comes to the private members clubs, it's never been done

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Speaker 1: really in.

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Speaker 2: Rest Caroline, the voice of Experienced the Revenge of Members

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Speaker 2: called Caroline, I have no idea.

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Speaker 1: Well, yes, perhaps perhaps that is once a time. Yeah exactly.

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Speaker 1: But now, yes, this is being done by you know,

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Speaker 1: the likes of JKS restaurants. They've got lots of kind

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Speaker 1: of exactly. So they're trying to bring this idea that

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Speaker 1: you can dine and then dance as you go into

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Speaker 1: the evening. It's quite difficult in London to get around.

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Speaker 2: This is the whole idea is it's supposed to take

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Speaker 2: the logistics out of it. Essentially, of this idea, if

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Speaker 2: you having to plan, Okay, well we'll do this and

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Speaker 2: then we'll go here and do this, and then we'll

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Speaker 2: do this. It's a sort of a one stop shop

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Speaker 2: for your night out. I quite like the idea of this.

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Speaker 2: Maybe I'll be to stay on past ten as a result.

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Speaker 1: Right, let's think about firstly then what's happening in France.

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Speaker 1: We've got two major political stories. But let's go to

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Speaker 1: the French at government first, which now faces a no

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Speaker 1: confidence vote today. The far right leader Marie la Penn

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Speaker 1: is expected to join a left wing coalition to support

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Speaker 1: the motion and topple the government of Michelle Barnier, despite

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Speaker 1: a last ditch appeal from President Macro. Joining us now

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Speaker 1: from Paris is our French Equity Markets report at Juliette Ponthus, Julia,

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Speaker 1: and thank you so much for being back on the program.

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Speaker 1: Does the Barnier administration fall today after what three months

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Speaker 1: in office?

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Speaker 6: Yes, that's what people expect, That's what everyone mis expects.

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Speaker 6: We can't really see how he could pull in pull

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Speaker 6: out the votes to put it off. Basically, he has

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Speaker 6: the left, the far left and the far right against

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Speaker 6: him and it's the numbers are just not there. So yeah,

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Speaker 6: the big expectation is that he falls today.

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Speaker 2: Now, we heard both from Emmanuel Macron and Michelle Baunier

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Speaker 2: yesterday making an appeal to for lawmakers to act responsibly

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Speaker 2: in their words and to avoid what Macron talked about

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Speaker 2: unbearable cynicism to bring down the government. Will any of

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Speaker 2: those calls have found a receptive audience.

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Speaker 6: Well, I think the cynicism Macon is talking about, you know,

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Speaker 6: must make a lot of lawmakers smile in the sense

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Speaker 6: that when Macron dissolved to Parliament there was no real,

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Speaker 6: no just reasons for that. So you know, you're in

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Speaker 6: a political game of thrones here and it seems like

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Speaker 6: Macon is losing that particular battle and that his Prime

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Speaker 6: Minister Abani is going to fall on this one. It's

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Speaker 6: really hard to see how they could put it off.

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Speaker 1: Does Macaon resign? Then we know that Marine Leapenn has

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Speaker 1: tried three times to become French president. She's run three

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Speaker 1: times and loss, and she wants another chance in twenty

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Speaker 1: twenty seven. As you say, it's this game of thrones

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Speaker 1: perhaps between Marine Leapen and Emmanue and MacCall.

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Speaker 6: Yeah, or houses cards. I don't know which one is

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Speaker 6: the best. But yeah, he said he won't resign, so

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Speaker 6: he has no intention to resign, and just from outside,

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Speaker 6: like the general feeling is like he's not the type

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Speaker 6: of a person who would resign. But I guess if

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Speaker 6: the situation continues to be stressful on the bond market

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Speaker 6: and you know there's you know, yield start really going up,

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Speaker 6: the spread with Germany widened, the stock market starts to

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Speaker 6: underperform even more, then you know, who knows, maybe there

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Speaker 6: would be pressure for him to resign because, as you

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Speaker 6: may know, we can't have general elections until this summer,

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Speaker 6: so there's no easy way out of out of this crisis.

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Speaker 6: So it's really hard to But again at the moment,

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Speaker 6: I don't see I really don't see my con resigning,

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Speaker 6: but who knows. I mean, it's it's always possible.

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Speaker 2: Practically speaking, if the government falls today, there's no budget

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Speaker 2: then in place for twenty twenty five. What happens and

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Speaker 2: what should we expect in terms of market reaction, Well.

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Speaker 6: The market reaction we've had a we have a good

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Speaker 6: taste during the last few days. And the Cake forty

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Speaker 6: is roughly stable, trailing on the performing it's European piers,

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Speaker 6: but it's not fallings. It's roughly flat. You could say

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Speaker 6: basically that situation has been priced in. It's the Cake forty.

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Speaker 6: Paris KIK forty is doing remarkably badly this year. It's

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Speaker 6: trailing roughly ten percent from its European piers. It's among

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Speaker 6: a few world indexes, i mean world benchmarks that have

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Speaker 6: a negative performance this year, so you know that's bad enough.

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Speaker 6: Maybe France, the ten year bond is trading roughly in

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Speaker 6: line with Greece. The spread with Germany is roughly at

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Speaker 6: the level it was during the sovereign dead crisis of

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Speaker 6: twenty twelve, So you could say a lot of this

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Speaker 6: has been you know, priced in the markets. So now

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Speaker 6: there are certain provisions in the constitutions that allow, you know,

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Speaker 6: the the budget to roll over from one month to

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Speaker 6: the next. You can do some emergency laws. Okay, you

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Speaker 6: know it's it's a tough situation, but maybe it's just

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Speaker 6: this one is already prised in.

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Speaker 1: Okay, Julian, thank you so much for being with us

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Speaker 1: this morning. Julia Pontus, who is our French equity markets

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Speaker 1: reported life on Paris.

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Speaker 2: Now to South Korea, where the president stunned voters, lawmakers

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Speaker 2: and investors by declaring martial law, then rescinding it and

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Speaker 2: now faces potential impeachment. The wand stocks and bonds were

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Speaker 2: whiplastered as a result. Let's get the latest life from

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Speaker 2: Seoul with our reporters. So He Kim, so He, thank

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Speaker 2: you for joining us this morning. Talk us through what

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Speaker 2: has happened, the most recent developments and the impeachment process

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Speaker 2: filed by opposition parties.

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Speaker 7: Sure so, yeah, it was a shocking knife for all

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Speaker 7: of us. And I'm right after presidential your declared martial law,

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Speaker 7: lawmakers than the National Assembly to vote for the motion

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Speaker 7: to block this decision, and the lawmakers moved quickly to

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Speaker 7: open the impeachment process. Half an hour ago, six supposition

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Speaker 7: parties proposed a motion to impeach President Yun and military

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Speaker 7: minister as well as Safety Minister. So earlier the main

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Speaker 7: opposition party said they charge Un over treats and charges

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Speaker 7: for declaring martial law illegally. So the National Assembly is

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Speaker 7: likely to put it on the vote as early as

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Speaker 7: this Friday, and the duty of president will be suspended

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Speaker 7: once the majority of members will vote for the impeachment bill.

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Speaker 1: What has been the reaction in markets to this and

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Speaker 1: what a policy makers been doing in the face of

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Speaker 1: this political instability?

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Speaker 7: Right, So, the market reactions right after this happened, it

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Speaker 7: was pretty wild overnight, one plunged and Korea ataps dropped

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Speaker 7: really sharply. But it's been stabilizing, I would say quite

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Speaker 7: quickly after the President Union was forced to reverse his

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Speaker 7: decision over the martial law. And interestingly, the Korean I

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Speaker 7: mean the some of stocks related to the opposition leader

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Speaker 7: Legion Young or to the daily highs as the chances

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Speaker 7: of him becoming the next president dramatically increased in a

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Speaker 7: couple of hours, and be Okayan of Korea, a governor

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Speaker 7: and officials and financial authorities. They held emergency meetings and

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Speaker 7: committed to stabilize the situation and they are ready to

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Speaker 7: jump on.

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Speaker 2: I just wanted to discuss next with you whether or

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Speaker 2: not this effects that some of the challenges that South

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Speaker 2: Korea is facing. More broadly, of course, we're looking ahead

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Speaker 2: to the prospect of the Donald Trump presidency. South Korea

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Speaker 2: could be facing tariffs like other parts of the world

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Speaker 2: world as well. I mean, what does this mean for

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Speaker 2: the South Korean economy to have this political turmoil underway?

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Speaker 4: Right?

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Speaker 7: The weak currency may not hurt fundamentals of Korean export

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Speaker 7: business for the short term, I would say, But the

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Speaker 7: thing is, the Korean market has been already seeing off

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Speaker 7: flows as some of backbone businesses reported disappointing earnings recently,

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Speaker 7: and uncertainties over the intensifying trade tensions and it's efforts

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Speaker 7: to gain entry into developed market indexes and improve corporate governance.

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Speaker 7: That the conglomerates may lose momentum for the next couple

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Speaker 7: of months during this political turmoil. But as I mentioned,

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Speaker 7: financial authorities are a community to committed to is this volatility,

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Speaker 7: and they are going to provide unlimited liquidity to markets

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Speaker 7: as needed. And there are some of our optimistic views

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Speaker 7: as well. Where I was in wish for thinking as

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Speaker 7: a democracy of Korea will even get stronger after all

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Speaker 7: this chaotic situation. Have probably have a or hopefully have

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Speaker 7: a stronger leader to our protected businesses from Trump's terriff plans.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Street and beyond.

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