1
00:00:02,480 --> 00:00:10,400
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

2
00:00:10,480 --> 00:00:13,039
Speaker 1: Day Bake You At podcast, available every morning on Apple,

3
00:00:13,080 --> 00:00:15,880
Speaker 1: Spotify or wherever you listen. It's Tuesday, the twelfth of

4
00:00:15,920 --> 00:00:18,560
Speaker 1: November in London. I'm Caroline Hepkif.

5
00:00:18,120 --> 00:00:21,360
Speaker 2: And I'm Stephen Carroll. Coming up today, You're hired. Donald

6
00:00:21,400 --> 00:00:24,600
Speaker 2: Trump is expected to pick one time rival Marco Rubio

7
00:00:24,720 --> 00:00:27,360
Speaker 2: as his next secretary of State as he turns to

8
00:00:27,440 --> 00:00:29,120
Speaker 2: allies to fill top roles.

9
00:00:29,360 --> 00:00:33,879
Speaker 1: Bitcoin closes in on ninety thousand dollars as cryptocurrency bulls

10
00:00:34,080 --> 00:00:36,159
Speaker 1: bet on a boom onto the next president.

11
00:00:36,440 --> 00:00:39,199
Speaker 2: Plus Food for Thought, we unwrapped the story of a

12
00:00:39,280 --> 00:00:42,960
Speaker 2: Nesle insider who's been tasked with fixing the one hundred

13
00:00:43,040 --> 00:00:44,320
Speaker 2: billion dollar business.

14
00:00:44,479 --> 00:00:46,520
Speaker 3: Let's start with a roundup of our top stories.

15
00:00:46,800 --> 00:00:49,680
Speaker 2: Donald Trump is expected to name Marco Rubio as his

16
00:00:49,800 --> 00:00:53,200
Speaker 2: secretary of State, according to a person familiar with the matter.

17
00:00:53,560 --> 00:00:56,640
Speaker 2: A one time critic and rival, Senator, Rubio would take

18
00:00:56,680 --> 00:01:00,400
Speaker 2: on the top diplomatic role after transforming himself into one

19
00:01:00,440 --> 00:01:04,560
Speaker 2: of the President elect's most vocal supporters. Rubio has defended

20
00:01:04,600 --> 00:01:07,680
Speaker 2: Trump's position to bring a swift end to Russia's invasion

21
00:01:07,720 --> 00:01:11,600
Speaker 2: of Ukraine and taken an aggressive stance on China's emergence

22
00:01:11,640 --> 00:01:14,640
Speaker 2: as an economic power. Ploomberg's Gill Liesis has.

23
00:01:14,480 --> 00:01:18,479
Speaker 4: More Rubio has been a pretty enormous China hawk over

24
00:01:18,560 --> 00:01:21,640
Speaker 4: the last several years. He was actually sanctioned by Beijing

25
00:01:21,920 --> 00:01:24,480
Speaker 4: over a couple of different matters, whether that be about

26
00:01:24,600 --> 00:01:27,800
Speaker 4: the Hong Kong protests back in twenty nineteen. He also

27
00:01:28,200 --> 00:01:31,440
Speaker 4: was very outspoken about the Hinjin region in China in

28
00:01:31,480 --> 00:01:34,240
Speaker 4: a lot of the US allegations basing Beijing there. So

29
00:01:34,280 --> 00:01:36,880
Speaker 4: I mean, this is somebody that definitely China I think

30
00:01:36,880 --> 00:01:38,840
Speaker 4: has bristled against quite a bit.

31
00:01:39,120 --> 00:01:41,600
Speaker 2: Jill Lisis also highlights that Rubio has been a staunch

32
00:01:41,640 --> 00:01:44,840
Speaker 2: supporter of Israel's war in Gaza and its attacks on

33
00:01:44,920 --> 00:01:48,480
Speaker 2: Hezbola and Lebanon. His expected appointment to the top foreign

34
00:01:48,480 --> 00:01:53,320
Speaker 2: policy job alongside other ardently pro Israel lawmakers, suggests that

35
00:01:53,400 --> 00:01:57,880
Speaker 2: Trump will heighten support for Israel and increase pressure on

36
00:01:57,960 --> 00:01:59,840
Speaker 2: Iran once he takes off.

37
00:01:59,880 --> 00:02:04,480
Speaker 1: Of Now, Republicans are close to gaining unified control of

38
00:02:04,680 --> 00:02:09,160
Speaker 1: Washington under President elect Donald Trump. In the House of Representatives.

39
00:02:09,240 --> 00:02:12,160
Speaker 1: As of Monday night, Republicans have won two hundred and

40
00:02:12,160 --> 00:02:15,200
Speaker 1: fourteen seats and Democrats have two hundred and five, with

41
00:02:15,240 --> 00:02:19,160
Speaker 1: two hundred and eighteen needed for a majority. Republican incumbent

42
00:02:19,240 --> 00:02:24,360
Speaker 1: Mike Garcia conceded defeat to Democrat George Whitesides, the former

43
00:02:24,440 --> 00:02:29,840
Speaker 1: CEO of Virgin Galactic, in California's twenty seventh congressional district election.

44
00:02:29,960 --> 00:02:33,840
Speaker 1: This according to a post on ex other races are

45
00:02:33,880 --> 00:02:37,520
Speaker 1: on the brink of adding to the Republican numbers, with

46
00:02:37,639 --> 00:02:40,200
Speaker 1: Republicans assured of at least two hundred and.

47
00:02:40,080 --> 00:02:41,600
Speaker 3: Sixteen seats in the House.

48
00:02:42,040 --> 00:02:47,040
Speaker 1: Meanwhile, in the Senate, Democratic Representative Reuben Gayego defeated Republican

49
00:02:47,120 --> 00:02:49,720
Speaker 1: Carry Lake in the Arizona Senate race.

50
00:02:49,760 --> 00:02:51,840
Speaker 3: According to the Associated.

51
00:02:51,200 --> 00:02:55,320
Speaker 2: Press, bitcoin is continuing it's relentless surge, hire briefly climbing

52
00:02:55,360 --> 00:02:58,560
Speaker 2: above eighty nine thousand dollars for the first time. The

53
00:02:58,600 --> 00:03:01,320
Speaker 2: digital asset has now risen by more than thirty percent

54
00:03:01,520 --> 00:03:05,079
Speaker 2: since the election. Bobby Lee is the founder and CEO

55
00:03:05,320 --> 00:03:10,480
Speaker 2: of cryptocurrency firm Ballet, and says that investors have high

56
00:03:10,480 --> 00:03:14,680
Speaker 2: hopes that Donald Trump will deliver a friendlier regulatory environment.

57
00:03:14,960 --> 00:03:18,520
Speaker 5: From a policy perspective, We're anticipating a lot of favorable

58
00:03:18,720 --> 00:03:21,960
Speaker 5: crypto favorable policies in the United States, and the US,

59
00:03:22,000 --> 00:03:25,640
Speaker 5: of course leads the world in terms of regulation and

60
00:03:25,680 --> 00:03:29,240
Speaker 5: policy in the financial market, so there's no different for crypto.

61
00:03:29,560 --> 00:03:32,200
Speaker 2: Bobby Lee suggests there's appetite for the token to go

62
00:03:32,320 --> 00:03:36,960
Speaker 2: even higher. According to data from the Derabit Exchange, investors

63
00:03:36,960 --> 00:03:39,960
Speaker 2: are lining up bets that bitcoin will pass one hundred

64
00:03:40,000 --> 00:03:43,040
Speaker 2: thousand dollars as soon as the end of the year.

65
00:03:43,600 --> 00:03:46,720
Speaker 1: China is planning to cut taxes on home buying as

66
00:03:46,760 --> 00:03:50,600
Speaker 1: its property market stagnates. Bloomberg has learned that regulators are

67
00:03:50,640 --> 00:03:53,760
Speaker 1: working on a policy to cut taxes on deeds from

68
00:03:53,800 --> 00:03:57,320
Speaker 1: three percent down to one percent. JP organ Asset Managements

69
00:03:57,520 --> 00:04:02,360
Speaker 1: Asia Pacific head of Multi Asset Solutions, Leon Goldfeld, says

70
00:04:02,440 --> 00:04:07,240
Speaker 1: the government is attempting a huge rebalancing of the Chinese economy.

71
00:04:07,560 --> 00:04:11,000
Speaker 6: Well, China is basically having to reduce in size. Like

72
00:04:11,040 --> 00:04:13,960
Speaker 6: the property sector, infrastructure sector are very big. Well they're

73
00:04:13,960 --> 00:04:16,760
Speaker 6: trying to grow is still relatively modest in size, so

74
00:04:16,800 --> 00:04:20,599
Speaker 6: that rebalancing is multi year but at the and it

75
00:04:20,680 --> 00:04:22,599
Speaker 6: maybe three years, five years, but at the end of

76
00:04:22,600 --> 00:04:24,280
Speaker 6: this China is going to be much stronger and much

77
00:04:24,320 --> 00:04:25,239
Speaker 6: more productive economy.

78
00:04:25,360 --> 00:04:29,600
Speaker 1: JP Morgan Asset Managements Leon Goldfeld. There it highlights Beijing's

79
00:04:29,600 --> 00:04:33,360
Speaker 1: concerned about the sluggish domestic economy. Economists are calling, though,

80
00:04:33,400 --> 00:04:36,680
Speaker 1: for more fiscal support to ensure China's roughly five percent

81
00:04:36,760 --> 00:04:38,760
Speaker 1: economic growth target is met.

82
00:04:38,920 --> 00:04:42,760
Speaker 2: This year, climate negotiators are near creating the first ever

83
00:04:42,880 --> 00:04:46,559
Speaker 2: global carbon market. Officials of the CUP twenty nine Summits

84
00:04:46,560 --> 00:04:49,920
Speaker 2: and Azerbaijan hope the un run initiative will allow countries

85
00:04:49,960 --> 00:04:53,719
Speaker 2: to trade emissions allowances. It comes as doubts loom over

86
00:04:53,760 --> 00:04:57,200
Speaker 2: the two week Climate Convention, even though with even the

87
00:04:57,320 --> 00:05:00,599
Speaker 2: US's own envoy saying a Trump presidency will put green

88
00:05:00,640 --> 00:05:04,200
Speaker 2: action on the back burner. Axen Mobiles CEO Darren Woods

89
00:05:04,200 --> 00:05:06,960
Speaker 2: told Bloomberg at the summit that appetite for fossil fuels

90
00:05:07,200 --> 00:05:08,200
Speaker 2: has never been higher.

91
00:05:08,560 --> 00:05:11,680
Speaker 7: Demand is at record highs, both for oil and for

92
00:05:11,800 --> 00:05:14,520
Speaker 7: gasoline and diesel. So the demand is out of the day.

93
00:05:14,960 --> 00:05:17,360
Speaker 7: The industry has been very effective at supplying that demand.

94
00:05:17,360 --> 00:05:20,400
Speaker 7: I think that's what you're seeing. Unfortunately for US with

95
00:05:20,480 --> 00:05:23,520
Speaker 7: some of the turmoil in the Middle East, that available

96
00:05:23,560 --> 00:05:26,920
Speaker 7: supply has kept the market's fairly stable and so it's

97
00:05:26,960 --> 00:05:27,960
Speaker 7: less of a demand issue.

98
00:05:27,960 --> 00:05:29,000
Speaker 5: There's just a lot of supply.

99
00:05:29,360 --> 00:05:33,120
Speaker 2: That's Ax and Mobiles CEO Darren Woods. There many international

100
00:05:33,160 --> 00:05:38,880
Speaker 2: targets pegged to twenty thirty deadlines are already in severe jeopardy.

101
00:05:39,320 --> 00:05:42,640
Speaker 1: A surge of British companies are giving up rather than

102
00:05:42,680 --> 00:05:45,720
Speaker 1: dealing with the consequences of the recent budget. More than

103
00:05:45,720 --> 00:05:49,279
Speaker 1: one thousand companies filed insolvency papers in the week after

104
00:05:49,320 --> 00:05:53,280
Speaker 1: the Chancellor announced tax increases. That's a sixty four percent

105
00:05:53,880 --> 00:05:57,000
Speaker 1: increase or sixty four percent higher than the same week

106
00:05:57,040 --> 00:06:01,320
Speaker 1: in the previous year. UK Hospitalities CEO Kate Nichols says

107
00:06:01,320 --> 00:06:04,640
Speaker 1: that many businesses in her industry were caught off guard

108
00:06:04,680 --> 00:06:05,560
Speaker 1: by the changes.

109
00:06:06,000 --> 00:06:06,720
Speaker 3: Well, many of.

110
00:06:06,680 --> 00:06:09,080
Speaker 8: Us would have been able to forecast that the Chancellor

111
00:06:09,120 --> 00:06:11,800
Speaker 8: was going to look at employer nic rate and the

112
00:06:11,839 --> 00:06:15,440
Speaker 8: factor that in the real unexpected economic shock in the

113
00:06:15,560 --> 00:06:18,839
Speaker 8: budget was that that thresholder which it was applied was

114
00:06:18,880 --> 00:06:21,440
Speaker 8: going to be halved. That's a real hit to the

115
00:06:21,440 --> 00:06:24,560
Speaker 8: bottom line. And let's not forget around a third of

116
00:06:24,600 --> 00:06:28,760
Speaker 8: our businesses, particularly small independence, still operating at or below

117
00:06:28,800 --> 00:06:31,320
Speaker 8: break even because they haven't recovered from COVID.

118
00:06:31,640 --> 00:06:34,960
Speaker 1: UK Hospitality CEO Kate Nichols. There, while the surge in

119
00:06:35,000 --> 00:06:38,560
Speaker 1: businesses being shot is a potential headache for the Chancellor

120
00:06:38,560 --> 00:06:41,279
Speaker 1: a head of her annual speech to the financial sector

121
00:06:41,600 --> 00:06:43,600
Speaker 1: at Mansion House later this week.

122
00:06:43,880 --> 00:06:46,599
Speaker 2: The UK is planning to issue guilts on a blockchain

123
00:06:46,640 --> 00:06:49,360
Speaker 2: within the next two years. Bloomberg has learned the Labor

124
00:06:49,400 --> 00:06:52,880
Speaker 2: government once they use the technology that underpins bitcoin to

125
00:06:52,880 --> 00:06:57,080
Speaker 2: tokenize its government debt. While such transactions remain niche, the

126
00:06:57,160 --> 00:07:00,760
Speaker 2: hope is that it will make guilt trading faster and cheaper.

127
00:07:01,000 --> 00:07:04,040
Speaker 2: Treasury Secretary the Treasury declined to comment.

128
00:07:04,720 --> 00:07:07,400
Speaker 1: And those are your top stories this morning. In terms

129
00:07:07,480 --> 00:07:10,200
Speaker 1: of the markets then, well, on Monday, we saw the

130
00:07:10,320 --> 00:07:12,640
Speaker 1: US S and P five hundred clothes up per tenth

131
00:07:12,680 --> 00:07:16,120
Speaker 1: of one percent to another record high, Tesla extending a

132
00:07:16,240 --> 00:07:19,800
Speaker 1: rally up another nine percent, so the Trump trades really extending,

133
00:07:19,840 --> 00:07:22,920
Speaker 1: with bitcoin also rallying ten percent and the dollar closing

134
00:07:23,320 --> 00:07:26,000
Speaker 1: up half of one percent. Also, you saw a lift

135
00:07:26,040 --> 00:07:28,680
Speaker 1: to the Russell two thousand small caps in the US.

136
00:07:29,160 --> 00:07:32,520
Speaker 1: As of trading this morning, the Hang Seng Index is

137
00:07:32,560 --> 00:07:34,840
Speaker 1: down by two point nine percent this morning, so you've

138
00:07:34,840 --> 00:07:37,840
Speaker 1: got a big slide in Asian equities, the dollar hitting

139
00:07:37,840 --> 00:07:42,400
Speaker 1: afresh one year high, oil continuing to decline, down three

140
00:07:42,440 --> 00:07:45,280
Speaker 1: tens of one percent for break crud futures and treasuries

141
00:07:45,320 --> 00:07:49,400
Speaker 1: reopening lower in price after the holiday that we had

142
00:07:49,520 --> 00:07:52,760
Speaker 1: yesterday for veterans date, so ten year yields rising two

143
00:07:52,800 --> 00:07:53,560
Speaker 1: basis points.

144
00:07:53,560 --> 00:07:55,040
Speaker 3: Those are the markets in.

145
00:07:55,040 --> 00:07:57,200
Speaker 2: A moment will bring you the latest political news from

146
00:07:57,200 --> 00:07:59,160
Speaker 2: the US. Let's tell you about the challenges facing the

147
00:07:59,160 --> 00:08:02,160
Speaker 2: bars of nesle he faces investors have not upcome in

148
00:08:02,240 --> 00:08:05,240
Speaker 2: capital markets day. But another story that caught our eye

149
00:08:05,320 --> 00:08:08,440
Speaker 2: this morning. Did you know that you can't currently buy

150
00:08:08,480 --> 00:08:09,960
Speaker 2: a new Jaguar in the UK?

151
00:08:10,240 --> 00:08:10,440
Speaker 6: Really?

152
00:08:10,520 --> 00:08:12,840
Speaker 2: I've seen them on the road, went shopping on the weekend.

153
00:08:14,240 --> 00:08:17,520
Speaker 2: I didn't well, I mean kind of. Basically, the brand

154
00:08:17,560 --> 00:08:20,680
Speaker 2: is going dormant until twenty twenty six as it undergoes

155
00:08:20,880 --> 00:08:24,880
Speaker 2: a transition to electric cars, so until then Jaguar Orlandrover

156
00:08:25,000 --> 00:08:27,840
Speaker 2: won't ship any new models to UK dealers. Now, there

157
00:08:27,840 --> 00:08:30,880
Speaker 2: are still Jags available on the four courts already, but

158
00:08:30,920 --> 00:08:33,760
Speaker 2: they're now being classified as pre owned, even if they

159
00:08:33,840 --> 00:08:36,760
Speaker 2: haven't actually been out on the roads or had an owner.

160
00:08:37,200 --> 00:08:39,360
Speaker 2: So this means that it'll be the first time actually

161
00:08:39,400 --> 00:08:41,719
Speaker 2: since World War Two that Brits won't be able to

162
00:08:41,720 --> 00:08:44,120
Speaker 2: buy any new Jags for a while. I'm sure many

163
00:08:44,120 --> 00:08:48,360
Speaker 2: people out there devastated at that prospect. The new models though,

164
00:08:48,400 --> 00:08:50,679
Speaker 2: we'll get a sneak peak of them on the second

165
00:08:50,720 --> 00:08:53,600
Speaker 2: of December at Miami Art Week, whether they avail their

166
00:08:53,640 --> 00:08:55,760
Speaker 2: new models, but they won't actually be on sale until

167
00:08:55,880 --> 00:08:56,480
Speaker 2: twenty twenty.

168
00:08:56,480 --> 00:08:58,000
Speaker 1: Sort of a hint that it's all going to be

169
00:08:58,000 --> 00:09:01,440
Speaker 1: about designing. It very interesting, right, But the main story today,

170
00:09:01,440 --> 00:09:05,480
Speaker 1: of course, the additional picks that Donald Trump has begun

171
00:09:05,640 --> 00:09:08,959
Speaker 1: to make for really quite key roles. So we were

172
00:09:08,960 --> 00:09:13,120
Speaker 1: talking earlier about Marco Rubio as Secretary of State, but

173
00:09:13,400 --> 00:09:17,079
Speaker 1: there has also been discussion around head of the EPA

174
00:09:17,280 --> 00:09:21,559
Speaker 1: over in the US, that's the Environmental Protection Agency. And

175
00:09:21,600 --> 00:09:25,760
Speaker 1: you've also had out just the latest one for Homeland Security,

176
00:09:25,800 --> 00:09:29,400
Speaker 1: at least at the moment, CNN talking about Christy Neon

177
00:09:29,520 --> 00:09:33,680
Speaker 1: being picked there so very very rapidly, after just a

178
00:09:33,720 --> 00:09:37,600
Speaker 1: few days and ten weeks before the President actually enters

179
00:09:37,640 --> 00:09:40,400
Speaker 1: the White House, we already have actually a lineup of

180
00:09:40,440 --> 00:09:42,960
Speaker 1: a lot of the top cabinet roles for Trump.

181
00:09:43,080 --> 00:09:45,480
Speaker 2: Our Breaking Needs Managing editor Derek Wildbank is with us

182
00:09:45,840 --> 00:09:48,800
Speaker 2: for more. Derek talk us through than these latest appointments.

183
00:09:48,800 --> 00:09:50,920
Speaker 2: What do they tell us about the direction of policy

184
00:09:51,000 --> 00:09:51,600
Speaker 2: under Trump.

185
00:09:51,800 --> 00:09:55,160
Speaker 9: Well, look, I think that Marco Rubio and Walt are

186
00:09:55,240 --> 00:09:58,520
Speaker 9: both very significant appointments, especially if you're looking in a

187
00:09:58,600 --> 00:10:02,160
Speaker 9: kind of US China context. Right, Marco Rubio is an

188
00:10:02,240 --> 00:10:06,000
Speaker 9: incredibly stiff China hawk to the point, and he has

189
00:10:06,040 --> 00:10:09,840
Speaker 9: been sanctioned by China, and the idea of him coming

190
00:10:09,880 --> 00:10:15,040
Speaker 9: to the State Department raises literal operational questions about how

191
00:10:15,120 --> 00:10:17,079
Speaker 9: China is going to deal with him in a mechanical

192
00:10:17,160 --> 00:10:20,600
Speaker 9: sense because he has been sanctioned, and what ways they

193
00:10:20,640 --> 00:10:24,040
Speaker 9: could you know, what they might have to do in

194
00:10:24,200 --> 00:10:28,319
Speaker 9: order to simply go about the normal processes of diplomacy.

195
00:10:28,400 --> 00:10:31,760
Speaker 9: So Donald Trump here is in some of his very

196
00:10:31,800 --> 00:10:36,360
Speaker 9: first national security picks, signaling quite a tough line as

197
00:10:36,360 --> 00:10:38,120
Speaker 9: it comes to China. The other thing that I would

198
00:10:38,160 --> 00:10:41,080
Speaker 9: focus on here is that Donald Trump has made absolutely

199
00:10:41,160 --> 00:10:46,000
Speaker 9: no secret whatsoever about how he feels about Israel, and

200
00:10:46,240 --> 00:10:49,920
Speaker 9: the picks from a national security perspective have got all

201
00:10:50,040 --> 00:10:53,840
Speaker 9: a very common through line of a very very very

202
00:10:53,920 --> 00:10:58,320
Speaker 9: pro Israel stance. And so these are two things that

203
00:10:58,360 --> 00:11:01,360
Speaker 9: I think as you see this foreign team shaping up

204
00:11:01,360 --> 00:11:04,360
Speaker 9: for the President elect, you really do see tough on China,

205
00:11:04,440 --> 00:11:08,679
Speaker 9: and you really do see incredibly friendly to Israel and

206
00:11:08,880 --> 00:11:13,000
Speaker 9: indeed the incumbent Netniahu government as through lines throughout all

207
00:11:13,040 --> 00:11:14,160
Speaker 9: of these selections.

208
00:11:14,360 --> 00:11:16,800
Speaker 1: Okay, yes, I think that's very interesting, those points on

209
00:11:16,960 --> 00:11:20,720
Speaker 1: China and the Middle East. Meanwhile, Trump allies have also

210
00:11:20,760 --> 00:11:22,840
Speaker 1: been talking a lot about changes that they're planning to

211
00:11:22,840 --> 00:11:25,360
Speaker 1: make at various government agencies, and we've had a number

212
00:11:25,400 --> 00:11:29,080
Speaker 1: of other appointments, for example, to the Environmental Protection Agency

213
00:11:29,520 --> 00:11:33,280
Speaker 1: and the borders are in terms of what we understand

214
00:11:33,320 --> 00:11:36,520
Speaker 1: about those changes at government agencies, what do we actually know?

215
00:11:37,040 --> 00:11:39,480
Speaker 9: Well, look, we have seen there. I think there was

216
00:11:39,520 --> 00:11:42,200
Speaker 9: a lot of speculation in campaigning running up to this

217
00:11:42,320 --> 00:11:46,480
Speaker 9: about what exactly Republicans plan to do with let's call it,

218
00:11:46,559 --> 00:11:50,320
Speaker 9: the broad regulatory slave state. And one of the things

219
00:11:50,320 --> 00:11:52,720
Speaker 9: that we're seeing again is a through line across a

220
00:11:52,720 --> 00:11:55,480
Speaker 9: lot of the domestic picks is a real desire to

221
00:11:55,600 --> 00:11:59,440
Speaker 9: reshape some of the agencies that are seen as let's say,

222
00:11:59,480 --> 00:12:03,720
Speaker 9: operating in more kind of traditionally democratic spaces. I'm thinking

223
00:12:03,760 --> 00:12:07,080
Speaker 9: about regulatory agencies and things of that nature. We have

224
00:12:07,160 --> 00:12:09,160
Speaker 9: seen markets take bets that there's going to be a

225
00:12:09,160 --> 00:12:12,000
Speaker 9: lot more of a focus towards deregulation. That probably is

226
00:12:12,040 --> 00:12:15,400
Speaker 9: a reasonably sensible bet. You know, lee z Elden EPA

227
00:12:15,559 --> 00:12:19,120
Speaker 9: is a great example of this. You know, he's somebody

228
00:12:19,160 --> 00:12:22,360
Speaker 9: who has pushed for a little bit of a lighter

229
00:12:22,440 --> 00:12:26,800
Speaker 9: touch in terms of a regulatory environment. At the same time,

230
00:12:26,840 --> 00:12:31,120
Speaker 9: we've seen some comments from Trump and from others about

231
00:12:31,160 --> 00:12:34,240
Speaker 9: sweeping changes that they're looking to make in terms of

232
00:12:34,280 --> 00:12:38,160
Speaker 9: the Department of Education, in terms of education funding, in

233
00:12:38,240 --> 00:12:41,920
Speaker 9: terms of things that they want universities to do and

234
00:12:42,120 --> 00:12:47,160
Speaker 9: not do. And so I would expect overall, maybe on balance,

235
00:12:47,240 --> 00:12:49,880
Speaker 9: a slightly lighter regulatory touch, but there are may be

236
00:12:50,040 --> 00:12:54,320
Speaker 9: some examples, and universities would be one of them where

237
00:12:54,360 --> 00:12:59,000
Speaker 9: you might actually see increased regulation or increased sort of

238
00:12:59,640 --> 00:13:04,720
Speaker 9: state touched towards those towards those actors trying to try

239
00:13:04,800 --> 00:13:06,600
Speaker 9: to achieve certain outcomes.

240
00:13:07,000 --> 00:13:09,920
Speaker 2: We are also looking at the final race and the

241
00:13:09,920 --> 00:13:13,400
Speaker 2: segnup being called the Democrats holding the seat in Arizona.

242
00:13:13,440 --> 00:13:15,280
Speaker 2: Of course, the Republicans do have the majority in the

243
00:13:15,360 --> 00:13:18,600
Speaker 2: highest fifty three to forty seven. Still got counting underway

244
00:13:18,640 --> 00:13:20,320
Speaker 2: in a number of height rises, more than a dozen

245
00:13:20,360 --> 00:13:23,040
Speaker 2: of them. In fact, the Republicans currently just four seats

246
00:13:23,080 --> 00:13:24,120
Speaker 2: away from majority.

247
00:13:24,440 --> 00:13:27,200
Speaker 9: Yes, that's right, and look, let me take them in

248
00:13:27,280 --> 00:13:29,920
Speaker 9: the order that you presented them. The Senate here is

249
00:13:29,960 --> 00:13:33,040
Speaker 9: going to finalize at fifty three forty seven, although maybe

250
00:13:33,080 --> 00:13:35,280
Speaker 9: only just for a brief while. As we mentioned, Marco

251
00:13:35,360 --> 00:13:39,160
Speaker 9: Rubio is expected to be the Secretary of State nominee,

252
00:13:39,200 --> 00:13:42,000
Speaker 9: and so that would take Republicans' margins down. Ever, briefly,

253
00:13:42,360 --> 00:13:44,840
Speaker 9: the fifty three to forty seven is an interesting number.

254
00:13:45,000 --> 00:13:49,960
Speaker 9: It's enough that people who are moderates like Susan Collins

255
00:13:50,000 --> 00:13:53,080
Speaker 9: and Lisa Murkowski are not your majority makers on the votes,

256
00:13:53,160 --> 00:13:56,360
Speaker 9: so you don't necessarily have to stay within the bounds

257
00:13:56,400 --> 00:13:58,280
Speaker 9: of what they find acceptable. But at the same point,

258
00:13:58,320 --> 00:14:01,480
Speaker 9: it's not so many that you can just sort of

259
00:14:01,640 --> 00:14:04,640
Speaker 9: roughshot everything that you want to do. There is a filibuster.

260
00:14:05,000 --> 00:14:06,480
Speaker 9: You do need to find a way to get to

261
00:14:06,520 --> 00:14:09,400
Speaker 9: sixty votes on a lot of different legislative items. So

262
00:14:09,760 --> 00:14:12,880
Speaker 9: that may mean that President Trump, while he should have

263
00:14:12,920 --> 00:14:16,760
Speaker 9: a pretty fair hand legislatively outside of taxes, might need

264
00:14:16,800 --> 00:14:19,200
Speaker 9: a little bit of help from Democrats on the House side.

265
00:14:19,200 --> 00:14:22,200
Speaker 9: You are looking at a paper thin majority, no matter

266
00:14:22,240 --> 00:14:25,120
Speaker 9: how much it shapes up. It looks at this point

267
00:14:25,160 --> 00:14:27,560
Speaker 9: like Republicans are going to hold the House. My guess

268
00:14:27,600 --> 00:14:29,800
Speaker 9: right now, if I were counting it up, would be

269
00:14:29,800 --> 00:14:32,760
Speaker 9: somewhere around two hundred and twenty two seats. The majority

270
00:14:32,840 --> 00:14:35,160
Speaker 9: is at two to one eight, so that's not too

271
00:14:35,200 --> 00:14:38,640
Speaker 9: much of a distance. And we're already starting to see

272
00:14:38,680 --> 00:14:41,320
Speaker 9: you know, Staffanic to at least Staffanic to the United

273
00:14:41,400 --> 00:14:43,920
Speaker 9: Nations is one of the positions that Trump has offered,

274
00:14:44,080 --> 00:14:46,840
Speaker 9: so you're seeing him start to pull out of some

275
00:14:46,880 --> 00:14:50,200
Speaker 9: of his House members, narrowing that majority. There really will

276
00:14:50,240 --> 00:14:52,400
Speaker 9: be And I got to make two points real quick here.

277
00:14:52,480 --> 00:14:56,440
Speaker 9: They're very very important. One, the Republican House has struggled

278
00:14:56,480 --> 00:14:59,480
Speaker 9: to pass some very basic things over the last two years,

279
00:15:00,040 --> 00:15:03,080
Speaker 9: and Trump at the top should help with cohesion, but

280
00:15:03,120 --> 00:15:05,560
Speaker 9: that's going to be a problem. And two, the House

281
00:15:05,600 --> 00:15:08,080
Speaker 9: has so many members in it right four hundred and

282
00:15:08,080 --> 00:15:10,360
Speaker 9: thirty five voting members that a lot of the things

283
00:15:10,360 --> 00:15:12,400
Speaker 9: that you do have to worry about about is people

284
00:15:12,400 --> 00:15:15,960
Speaker 9: getting sick or taking another job or something like that.

285
00:15:16,000 --> 00:15:20,160
Speaker 9: The full House is very rarely actually full, and the

286
00:15:20,240 --> 00:15:24,840
Speaker 9: majority will hang by very thin threads at the very start.

287
00:15:24,960 --> 00:15:28,280
Speaker 9: So if they want to do something, emphasis ongoing now

288
00:15:28,440 --> 00:15:31,720
Speaker 9: and big emphasis on the president himself being able to

289
00:15:31,840 --> 00:15:34,000
Speaker 9: keep his own coalition fully in line.

290
00:15:34,240 --> 00:15:36,560
Speaker 2: Okay, Derek, thanks very much for joining us. That's our

291
00:15:36,600 --> 00:15:39,360
Speaker 2: managing aasure of breaking news. Derek Welbank, I want to

292
00:15:39,400 --> 00:15:42,040
Speaker 2: turn to a story around Nesle and the new boss

293
00:15:42,040 --> 00:15:43,640
Speaker 2: of the consumer goods giant is going to face a

294
00:15:43,720 --> 00:15:47,000
Speaker 2: key challenge and it's Capital Markets Day next week. Laura Frexo,

295
00:15:47,040 --> 00:15:49,920
Speaker 2: who's a company veteran, was appointed in August to replace

296
00:15:50,080 --> 00:15:53,800
Speaker 2: Mark Schneider after disappointing sales and a loss of investor confidence.

297
00:15:53,800 --> 00:15:56,960
Speaker 2: That's seeing the company's shares fall almost forty percent since

298
00:15:56,960 --> 00:16:00,800
Speaker 2: they're peak in twenty twenty two. Are your consumer goods

299
00:16:00,840 --> 00:16:03,400
Speaker 2: reporter Dasha fantasy Over has been writing about this and

300
00:16:03,440 --> 00:16:06,520
Speaker 2: she joins us now data Good morning. What's been going wrong?

301
00:16:06,600 --> 00:16:08,040
Speaker 2: First of all, for in Esleigh.

302
00:16:08,120 --> 00:16:10,840
Speaker 10: It's the growth. It's about the top plane sales growth.

303
00:16:10,880 --> 00:16:13,400
Speaker 10: They had five quarters of missed estimates and they've had

304
00:16:13,400 --> 00:16:16,600
Speaker 10: to downgrade their outlook for this year. And fundamentally, the

305
00:16:16,640 --> 00:16:18,920
Speaker 10: issue is that, like a lot of consumer goods companies,

306
00:16:18,960 --> 00:16:22,560
Speaker 10: they enjoyed this very high growth driven by high inflation

307
00:16:23,280 --> 00:16:27,000
Speaker 10: whilst even whilst volumes contracted, and they haven't been able

308
00:16:27,120 --> 00:16:30,840
Speaker 10: to get that growth back. Consumers have switched to supermarket

309
00:16:30,920 --> 00:16:35,400
Speaker 10: owned labels and branded goods. Companies have struggled to persuade

310
00:16:35,440 --> 00:16:37,240
Speaker 10: them that, no, you should pay that little bit more.

311
00:16:38,280 --> 00:16:42,160
Speaker 1: In terms of the former CEO, Mark Schneider, his departure,

312
00:16:42,240 --> 00:16:44,240
Speaker 1: was that a surprise and if you put that kind

313
00:16:44,240 --> 00:16:48,440
Speaker 1: of quite a difficult economy back job in focus, was

314
00:16:48,480 --> 00:16:49,760
Speaker 1: it surprising that he left?

315
00:16:50,400 --> 00:16:53,480
Speaker 10: It was? It was really surprising to both investors and

316
00:16:55,120 --> 00:16:58,320
Speaker 10: the media. I'd say it was the shock announcement on

317
00:16:58,360 --> 00:17:02,240
Speaker 10: a Thursday evening. I think he didn't have much time

318
00:17:02,280 --> 00:17:05,040
Speaker 10: from the time that he was told he was out

319
00:17:04,320 --> 00:17:09,280
Speaker 10: to the announcement, and I think it shows that they

320
00:17:09,280 --> 00:17:12,480
Speaker 10: acted really quickly. They acted quickly from the perspective of

321
00:17:12,560 --> 00:17:16,000
Speaker 10: companies acting too slow. But as I say, there had

322
00:17:16,040 --> 00:17:18,680
Speaker 10: been a few quarters of sluggish growth, and on top

323
00:17:18,720 --> 00:17:21,760
Speaker 10: of that, I think if it's just been growth, maybe

324
00:17:21,800 --> 00:17:23,440
Speaker 10: it would have been easier to turn around. But they've

325
00:17:23,480 --> 00:17:28,639
Speaker 10: been these really unfortunate mishaps, like it issues supply chain constraints,

326
00:17:29,320 --> 00:17:32,480
Speaker 10: which all came after the pandemic Nestlile actually whether those

327
00:17:32,680 --> 00:17:35,520
Speaker 10: supply chain challenges very well, and then it all kind

328
00:17:35,520 --> 00:17:38,240
Speaker 10: of came undone in the last couple of years.

329
00:17:38,680 --> 00:17:41,000
Speaker 2: Well talk to with then about about the new guy,

330
00:17:41,240 --> 00:17:43,560
Speaker 2: Laren Faxil. Is he a different breed of bass?

331
00:17:44,240 --> 00:17:48,639
Speaker 10: The biggest difference that's obvious is that he's been at

332
00:17:48,720 --> 00:17:53,080
Speaker 10: Nesle for thirty eight years. Mark Schneider had been a Frazenius.

333
00:17:53,160 --> 00:17:56,520
Speaker 10: He was an outside higher, the second only ever for

334
00:17:56,600 --> 00:17:59,520
Speaker 10: Nesle in its one hundred and fifty year history, the

335
00:17:59,600 --> 00:18:01,160
Speaker 10: last one before that in the twenties.

336
00:18:02,280 --> 00:18:05,000
Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

337
00:18:05,080 --> 00:18:08,120
Speaker 2: stories making news from London to Wall Street and beyond.

338
00:18:08,400 --> 00:18:12,400
Speaker 1: Look for us on your podcast feed every morning, on Apple, Spotify,

339
00:18:12,480 --> 00:18:14,359
Speaker 1: and anywhere else you get your podcasts.

340
00:18:14,480 --> 00:18:17,520
Speaker 2: You can also listen live each morning on London Dab Radio,

341
00:18:17,560 --> 00:18:20,240
Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

342
00:18:20,280 --> 00:18:23,040
Speaker 1: Our flagship New York station is also available on your

343
00:18:23,080 --> 00:18:27,800
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

344
00:18:28,040 --> 00:18:29,440
Speaker 1: I'm Caroline Hepka.

345
00:18:29,160 --> 00:18:31,600
Speaker 2: And I'm Stephen Carroll. Join us again tomorrow morning for

346
00:18:31,720 --> 00:18:34,120
Speaker 2: all the news you need to start your day right

347
00:18:34,160 --> 00:18:39,960
Speaker 2: here on Bloomberg Daybreak Europe.