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

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Speaker 2: This is the.

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Speaker 3: Bloomberg Day BAC podcast. Good morning, It's Monday, the fifteenth

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Speaker 3: of December. I'm Caroline Hepkat in London.

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Speaker 2: And I'm Stephen Caroline Brussels. Coming up today Australia's deadliest

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Speaker 2: terror attack. At least fifteen are killed and one gunman

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Speaker 2: dies as the Jewish community is targeted on Bondai.

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Speaker 4: Beach, Italy is Georgia.

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Speaker 3: Maloney says Trump's national security strategy lays bare Europe's dependence

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Speaker 3: on the US for defense.

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Speaker 2: Plus why a pioneer of private equity is facing his

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Speaker 2: most difficult trade yet.

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Speaker 4: Let's start with the roundup of our top stories.

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Speaker 2: Australia's government says it will consider toughening gun laws after

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Speaker 2: a father and his son killed fifteen people in the

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Speaker 2: deadliest terror attack in the country's history. The mass shooting

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Speaker 2: at a Jewish community celebration of Hanukah on Sydney's Bondai

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Speaker 2: Beach also left dozens injured. A bystander who rushed and

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Speaker 2: disarmed one of the attacks has won praise from leaders

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Speaker 2: around the world. Speaking at a press conference, Australian Prime

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Speaker 2: Minister Anthony Albanesi described the attack as an act of

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Speaker 2: evil anti Semitism.

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Speaker 5: What we saw Yesso was an active, pure evil, an

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Speaker 5: active any Semitism in an iconic Australian location, Bondo Beach,

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Speaker 5: that is associated with joy and it is forever tarnished

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Speaker 5: by what has occurred.

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Speaker 2: Australia's Prime Minister Anthony Alberzi, speaking there as police, said

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Speaker 2: the suspected shooters are a fifty year old and a

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Speaker 2: twenty four year olds in the city's western suburbs. The

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Speaker 2: Australian Broadcasting Corporation have named the gunman as Navide Akram,

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Speaker 2: who remains in hospital, and his father, Sajid, who was killed.

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Speaker 2: Three active improvised explosive devices were also found at the

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Speaker 2: scene and rendered safe by police.

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Speaker 3: Reacting to the attack, is well as Prime Minister Benjamin

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Speaker 3: Lettniaho sort of link the shooting to Australia's support for

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Speaker 3: a Palestinian state. In September, Australia joined the UK, Canada

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Speaker 3: and others in formally recognizing a Palestinian state, joining a

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Speaker 3: growing global consensus backing a two state solution in the region.

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Speaker 3: Netnia who says he wrote to the Australian prime minister

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Speaker 3: four months ago.

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Speaker 6: It pours fuel on the antisemitic fire. It encourages the

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Speaker 6: jew hatred now stocking your streets. Antisemitism is a cancer.

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Speaker 6: It spreads when leaders stay silent and replace. You must

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Speaker 6: replace weakness with action.

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Speaker 3: That was the Israeli Prime Minister Bennymedettan now who's speaking.

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Speaker 3: Several synagogues in Australia, along with Jewish businesses and homeowners,

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Speaker 3: have been targeted following the outbreak of war in Gaza

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Speaker 3: triggered by Hamas's attack on Israel on October the seventh,

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Speaker 3: twenty twenty three.

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Speaker 2: European leaders are talking about ending their alliance on the

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Speaker 2: United States for defense as they try to negotiate a

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Speaker 2: response to US President Donald Trump's peace plan for Ukraine.

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Speaker 2: President vosmo Zelenski has signaled that Kiev could accept security

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Speaker 2: guarantees instead of NATO membership after talks in Berlin this weekend.

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Speaker 2: Germany's Chancellor Friedrich Martz hosted the talks. Over the weekend,

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Speaker 2: he told a political rally that Europe needs to stand

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Speaker 2: on its own.

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Speaker 7: The Yamana, the decades of the Pax Americana are largely

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Speaker 7: over for US in Europe and for US in Germany

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Speaker 7: as well. It no longer exists as we knew it,

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Speaker 7: and nostalgia doesn't help either. And I would be one

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Speaker 7: of the last people who would not like to indulge

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Speaker 7: in this nostalgia.

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Speaker 4: But it's no use. That's the way it is.

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Speaker 7: The Americans are now very, very tough in pursuing their

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Speaker 7: own interests, and that can mean only one thing, that

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Speaker 7: we have to pursue our own interests to.

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Speaker 4: Un interesting va naming.

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Speaker 2: It's Germany's Chancellor, speaking through a translator. Russia has said

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Speaker 2: it would probably reject older proposals from Ukraine and Europe,

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Speaker 2: throwing doubt on whether Trump's push to end the nearly.

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Speaker 4: Four year war could succeed.

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Speaker 2: European and NATO leaders are set to join Zelanscae later

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Speaker 2: for summat on how to work with the US to

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Speaker 2: secure a peace deal with Russia.

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Speaker 3: It's Alian Prime Minister Georgia Maloney says the new US

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Speaker 3: national security strategy is a wake up call for Europe.

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Speaker 3: Her remarks come after a document published by the Trump

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Speaker 3: White House last week outlining the plans blamed EU policy

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Speaker 3: for tilting the region towards quote civilizational Erasia. Speaking at

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Speaker 3: a festival organized by her Brothers of Italy Party. Maloney

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Speaker 3: criticized the bloc's approach to defense.

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Speaker 4: What can I say, good morning Europe. Good morning.

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Speaker 1: We have contracted out security to the US for eighty years,

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Speaker 1: thinking this day would never come, but most importantly attending

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Speaker 1: this was free.

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Speaker 4: There was a price, lawyer Georgia Maloney.

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Speaker 3: They're speaking in Rome yesterday, her word spoken via a translator.

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Speaker 3: This week faces two crucial deadlines, one to fund Ukraine's

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Speaker 3: fight against Russia without help form Washington, and the other

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Speaker 3: to show it's move away from US supply lines by

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Speaker 3: striking up a trade deal with South America. Both come

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Speaker 3: after US President Donald Trump's warnings that many EU leaders

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Speaker 3: aren't grasping the risk of another World war.

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Speaker 2: The head of Britain's Armed Forces says the whole nation

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Speaker 2: needs to become more resilient and prioritize industry and infrastructure

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Speaker 2: to deter the growing threat from Russia. In a speech

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Speaker 2: later today, the UK Chief of Defense Staff, Richard Knighton,

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Speaker 2: will warn the price of pieces increasing as Russia attempts

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Speaker 2: to divide and destroy NATO. Night took up the post

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Speaker 2: in September, adds the current security situation as the worst

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Speaker 2: he's seen in his nearly thirty year career.

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Speaker 3: And lastly, Bank of England policymakers are expected to cut

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Speaker 3: interest rates by twenty five basis points when they meet

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Speaker 3: later this week. The move would bring the Central banks

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Speaker 3: benchmark rate to three point seventy five percent, close to

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Speaker 3: what some measures suggests Britain's neutral rate. Meanwhile, salary growth

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Speaker 3: for the country's lowest paid workers is slowing down. Bloomberg

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Speaker 3: sewer at Bio has the story.

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Speaker 8: A worsening job market means employees at the bottom end

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Speaker 8: of the pay scale have little bargaining power. They're a

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Speaker 8: section of the workforce that historically have proven resistant to

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Speaker 8: Bank of England inflation fighting efforts, but now new data

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Speaker 8: shows the effects are taking hold. Advertised salaries for low

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Speaker 8: wage jobs have posted their first moderation since April, according

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Speaker 8: to job search site Indeed. A separate report from the

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Speaker 8: Recruitment and Employment Confederation showed the number of active vacancies

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Speaker 8: declined eleven point two percent in November on a monthly

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Speaker 8: with hiring for Christmas jobs like delivery drivers or postal

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Speaker 8: work is down on last year's levels.

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Speaker 4: In London. To You added by Bloomberg Radio. Those are

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Speaker 4: some of our top stories.

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Speaker 2: Just wants to mention another piece so that we've been

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Speaker 2: reading this morning about the persuasive power of AI. This

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Speaker 2: from our opinion columnist Parmeelson has been writing about a

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Speaker 2: study showing that the newest models are getting better at

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Speaker 2: convincing people, but sometimes at the expense of the truth.

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Speaker 2: This study from the Oxygen University and Argus Kid of

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Speaker 2: Economics shows that while large language models can be very

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Speaker 2: effective in convincing people of things, when they're prompted to

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Speaker 2: overwhelm users with information, factual accuracy often declines, and that

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Speaker 2: party says it's something that we should be worried about.

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Speaker 3: Yeah, look, I feel like her story is pointing to

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Speaker 3: a new kind of advertising, sort of advertising on steroids.

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Speaker 3: But you might not even know what people are sort

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Speaker 3: of trying to sell you. AI chat boughts campus wade people.

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Speaker 3: We know that they can do that for good, like

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Speaker 3: addressing conspiracy theories. Some studies have shown that, but perhaps

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Speaker 3: they can more easily maybe even be used for ill.

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Speaker 3: Maybe not via chat GBT itself, but Palmy points to

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Speaker 3: these chatbots that people can use on their own websites,

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Speaker 3: on social media maybe to push these points.

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Speaker 6: Yeah.

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Speaker 2: Look, it's a fascinating I suppose aspect of the AI

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Speaker 2: rollout that we're getting to grips with still, and she

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Speaker 2: concludes that it really is up to the operators of

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Speaker 2: the big large language models, the likes of open Ai,

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Speaker 2: to make sure that their platforms aren't being used for

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Speaker 2: sort of distorting the political discourse as well. An interesting

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Speaker 2: piece worth reading this morning Bloomberg dot Com Forward Slash Opinion.

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Speaker 3: Now, I want to update you on the markets briefly

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Speaker 3: this week. This is the last full trading week of

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Speaker 3: twenty twenty five. We get the November jobs report out

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Speaker 3: on Tuesday, so that will be a big point with

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Speaker 3: a lot of decisions on central banks to think about

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Speaker 3: this week. In terms of stock futures, right now, it's

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Speaker 3: quite positive this Monday. Your socks fifty futures up three tens.

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Speaker 3: S and P and naza emanis also are hard this week.

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Speaker 3: But remember those two gauges in the US refeated more

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Speaker 3: than one percent on Friday, so it's still been volatile,

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Speaker 3: and we had very weak retail sales figures for China.

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Speaker 3: Amongst the slew of data out of China today, sales

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Speaker 3: only rose one point three percent in November, the slowest

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Speaker 3: figures on record outside of the pandemics. We have the

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Speaker 3: MSCI China Index down one point four percent this morning.

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Speaker 3: In terms of bond deals, four eighteen for US has

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Speaker 3: little movement there. Oil prices, golden bitcoin are all headed higher.

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Speaker 3: Those are the markets.

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Speaker 2: In a moment, we'll bring you a story from the

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Speaker 2: world of private equity and why a pioneer in the

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Speaker 2: sector is facing his most difficult trade yet. But I

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Speaker 2: wanted to bring you more on our top story this morning.

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Speaker 2: First the attack on Sunday on Bondai Beach in Sydney,

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Speaker 2: the Masco marketing, the deadliest terror attack in Australia's history.

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Speaker 2: Our Australia Economy and Government Editor Mike Keith joins usnow

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Speaker 2: for more from Sydney. Mike, thanks for being with us.

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Speaker 2: Just top to us about what's been happening in the

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Speaker 2: country over the past two days. What has it been

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Speaker 2: like in Australia seeing this attack, but also the criticism

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Speaker 2: that's come from Israel's Prime minister.

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Speaker 9: It's basically been surreal. You know, this is the sort

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Speaker 9: of thing that happens in other countries where we're at

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Speaker 9: the end of the world and usually a long long

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Speaker 9: way from these problems, and for it to happen at

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Speaker 9: Bondai Beach and it's sort of like, you know, in

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Speaker 9: Australia's that's a meeting spot, a melting spot for cultures

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Speaker 9: from all over the world. Everyone who comes to Australia

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Speaker 9: goes to that beach. It was a really hot, really

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Speaker 9: warm day and so the beach was packed. Then you

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Speaker 9: had the Jewish community who were having the you know,

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Speaker 9: the first day of Harnaka celebration, which they do is

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Speaker 9: on an annual basis, So it sort of has just

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Speaker 9: come absolutely out of nowhere. I mean, it's just the

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Speaker 9: sort of thing we'd normally read about somewhere else, so

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Speaker 9: quite surreal. And then we've sort of had promeinise to Ntnya,

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Speaker 9: who was some fairly strident comments. I mean he's he's

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Speaker 9: definitely not backwards and going forwards, and he has a

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Speaker 9: point to some extent that when you look back at

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Speaker 9: the incidents and what had been building, there was a

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Speaker 9: problem going on there and I think that a lot

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Speaker 9: of people were sort of perhaps a bit too focused

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Speaker 9: on you know, this is to do with the conflict

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Speaker 9: in Gaza and people upset about civilian casualties. But there

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Speaker 9: was a definite underlying theme of anti Semitism there and growing,

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Speaker 9: and you know, just the nature of how these things

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Speaker 9: tend to unfold. Somebody just does something really really crazy,

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Speaker 9: and really that's the only way you can describe it,

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Speaker 9: because it's just horrible. It's not something I've seen before.

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Speaker 4: Yeah, very devastating.

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Speaker 3: Well, what more do we know about the perpetrators, the

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Speaker 3: father and son gunman? It also looks like this incident

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Speaker 3: is prompting discussion about policy change, including on Australian gun control.

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Speaker 9: Yeah. Well, I mean, look, the police aren't releasing a

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Speaker 9: huge amount of information on them in terms of their

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Speaker 9: motivations and that sort of thing. What we do now,

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Speaker 9: As you said, it's a father and son. The father

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Speaker 9: was killed in the firefight. The son is injured and

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Speaker 9: in hospital. The son had been born in Australia. The

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Speaker 9: father had come on a visiting visa and then had

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Speaker 9: a spouse of visa and had been running on that

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Speaker 9: back and forth from going overseas. So yeah, there's not

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Speaker 9: a lot of detail other than the father had he

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Speaker 9: had half a dozen licensed weapons, and this is sort

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Speaker 9: of some of the question that's been going on, and

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Speaker 9: about thirty years ago we had a terrible massacre here

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Speaker 9: in Tasmania by a mentally unstable person and Australia introduced

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Speaker 9: very strict gun laws and just this idea that someone

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Speaker 9: would turn up or a couple of men would turn

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Speaker 9: up with these rifles and be able to start shooting people.

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Speaker 9: And there's been a lot of reports of criminal gun

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Speaker 9: violence and that sort of thing. It's really shone the

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Speaker 9: spotlight on what the situation is with guns. So that

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Speaker 9: the meeting of the federal government and state governments I

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Speaker 9: think that began about an hour ago, and what they're

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Speaker 9: talking about there is being able to POTENTI revoke people's

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Speaker 9: licenses if there's any any suspicions about them, to go

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Speaker 9: and keep looking at to keep it as an ongoing

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Speaker 9: process looking at licenses rather than you've got it you

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Speaker 9: find to keep going with it. But we'll get more

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Speaker 9: information on that and probably the next hour or time.

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Speaker 2: Okay, Mike, thanks very much for joining us. That's Mike

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Speaker 2: Keith Fair and Sydney, our Economy and Government editor.

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Speaker 4: Stay with us.

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Speaker 2: More from Bloomberg Daybreak Europe coming up after this.

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Speaker 3: Now for a story about finance. Color Capital has become

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Speaker 3: one of the most valuable niche finance firms in the

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Speaker 3: city of London, driven by its founder Jeremy Coller. He's

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Speaker 3: pioneering in secondaries, a strategy of helping investors exit unwanted

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Speaker 3: stakes in private equity funds. Has created a booming industry

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Speaker 3: and some investors are looking beyond its visionary founders. Our

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Speaker 3: leveraged finance reporter cat ital Go joins us now for

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Speaker 3: more tell us more about this business and the investment

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Speaker 3: strategy that co has become known for.

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Speaker 1: Yeah, and so Jeremy Coller is a character, to be sure,

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Speaker 1: a well known figure in the private equity world. He

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Speaker 1: owns one of the world's early secondaries firms, Collar Capital.

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Speaker 1: So secondaries is the strategy where firms investors can buy

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Speaker 1: and sell stakes in private equity firms. So really much

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Speaker 1: the same way that you'd think about another kind of

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Speaker 1: secondaries market, say in equities. It's really booming this market secondaries,

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Speaker 1: especially in the kind of difficult M and A environment.

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Speaker 1: You're seeing a lot more investors needing to sell out

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Speaker 1: of private equity firms to get a bit more capital in.

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Speaker 1: And that's where Jeremy Coller's firm comes in, he will

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Speaker 1: buy a lot of those sticks. So the firm itself

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Speaker 1: is very exciting. It's we think it's valued at about

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Speaker 1: three point five billion, and it's taking on in minority investors,

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Speaker 1: for example, in the form of State Street. The story

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Speaker 1: kind of follows Jeremy Collar and his journey to letting

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Speaker 1: go of the firm that he's given his name to,

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Speaker 1: because visionary founders are are no shocked to the private

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Speaker 1: equity world, but this is one that's really held on

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Speaker 1: for thirty years.

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Speaker 2: So what does the future of this industry look like?

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Speaker 2: At the moment, we're talking about huge growth, but also

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Speaker 2: that's casting questions over Color and his firm.

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Speaker 1: Yeah, so the industry is getting bigger and bigger. We

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Speaker 1: think it's going to be about two hundred and ten

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Speaker 1: billion this year. The thing about this particular firm is

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Speaker 1: that he's as the industry has professionalized and disintermediated and

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Speaker 1: become much more important, it's changed and investors' views of

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Speaker 1: Jeremy have changed as well, I guess over time, and

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Speaker 1: we see that kind of with performance of his funds

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Speaker 1: doing not quite as well as some of his competitors.

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Speaker 1: So you know, Jeremy Kller even talks himself about how

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Speaker 1: early on in the industry's history he would, you know,

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Speaker 1: the approach to secondaries would be why by someone else's trash?

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Speaker 4: And that's all changed now.

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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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Speaker 2: You can also listen live each morning on London DAB Radio,

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Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

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Speaker 4: I'm Caroline Hepka and.

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Speaker 2: I'm Stephen Carroll. Join us again tomorrow morning for all

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Speaker 2: the news you need to start your day right here

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Speaker 2: on Bloomberg day Break Europe