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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is the Bloomberg

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Speaker 1: dayba Acurate podcast, available every morning on Apple, Spotify or

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Speaker 1: wherever you listen. It's Friday, the twenty seventh of September.

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Speaker 1: Here in London, I'm Caroline Hepka. Coming up today. Chinese

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Speaker 1: stocks make their biggest weekly gain since two thousand and eight,

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Speaker 1: as one major investor says that he's buying everything. Israel

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Speaker 1: vows to maintain its bombardment of Hezbola targets in Lebanon.

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Speaker 1: As Benjamin Etniaho prepares to address the United Nations. Plus

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Speaker 1: counting the possible cost, Rachel Reeves considers tweaking the case

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Speaker 1: tax plans for non don foreigners. Let's start with a

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Speaker 1: roundup of our top stories. China has cut the amount

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Speaker 1: of cash that banks need in reserve and slash the

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Speaker 1: key policy rate in a bid to bolster its economy.

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Speaker 1: Authorities say that the reduction in the seven day reverse

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Speaker 1: Repair just rate to one and a half percent we'll

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Speaker 1: kick in today, but a timeframe wasn't given for the

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Speaker 1: percentage point cut to the reserve requirement ratio. Carl Rodder,

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Speaker 1: Senior market analyst at Capital dot Com says this week's

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Speaker 1: strong stimulus package could change things significantly for the country.

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Speaker 2: So it looks like they've taken the opportunity now to

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Speaker 2: really do what they did take out the playbook. Potentially,

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Speaker 2: we still need to see the detail, but this could

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Speaker 2: be huge and this could be the turning point, not

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Speaker 2: just for China's markets, but certainly for the global economic

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Speaker 2: cycle as well.

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Speaker 1: Carl Rodder from Capital dot Com speaking there, the CSI

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Speaker 1: three hundred rows more than four percent on the stimulus

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Speaker 1: after Shanghai's trading session resumed. Investor David Tepper said yesterday

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Speaker 1: that he is buying more of quote, everything China related

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Speaker 1: following the measures. In an interview with CNBC, the billionaire

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Speaker 1: founder of Appa Loser Management put his big bet down

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Speaker 1: to the shift by Beijing's top leaders.

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Speaker 3: This week.

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Speaker 1: Israel's Prime minister that has vowed to continue attacks on

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Speaker 1: Hezbola targets in Lebanon indefinitely, speaking before his planned address

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Speaker 1: to the United Nations General Assembly, Benjamin Netnia, who also

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Speaker 1: said that he would engage with efforts by the US

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Speaker 1: and allies to secure a ceasefire. On arrival in New York, Netnya,

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Speaker 1: who told media his forces would not relent before their

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Speaker 1: objectives are realized.

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Speaker 4: So during the flight I gave approval for the elimination

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Speaker 4: of the head of the UAV unit and other things,

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Speaker 4: and he was eliminated. Our policy is clear. We're continuing

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Speaker 4: to strike Hesbella with full force and we will not

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Speaker 4: stop until we reach all of our goals.

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Speaker 1: Benjamin Netna who they're speaking VA translator. The US, European countries,

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Speaker 1: and Arab powers, including Saudi Arabia and Kutta, all have

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Speaker 1: urged a pause in fighting late on Wednesday, after Israel

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Speaker 1: indicated that it was preparing a possible ground invasion of Lebel.

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Speaker 1: Now to the UK, where the government's October budget is

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Speaker 1: fast approaching, but concerns about proposed changes to rules on

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Speaker 1: overseas wealth could spark a last minute change. Bloomberg's Tea

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Speaker 1: Adebayo has the story.

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Speaker 5: Scrapping the non don regime was one of Keir Starmer's

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Speaker 5: key pledgures before his party's landslide election victory in July,

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Speaker 5: but now Treasury fears that the policy could end up

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Speaker 5: costing revenue of putting a break on plans. Sources say

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Speaker 5: the Chancellor is considering tweaks to her rollback of the

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Speaker 5: system which allows foreigners living in the UK to avoid

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Speaker 5: local taxes on overseas earnings for up to fifteen years.

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Speaker 5: Two people familiar with the matter told Bloomberg that the

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Speaker 5: changes would be in line with Labour's manifesto promises and

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Speaker 5: announced in the October thirtieth budget in London, ta Adebayo

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Speaker 5: Bloomberg Radio.

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Speaker 1: Meanwhile, the Prime Minister Keir Starmer has met Donald Trump

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Speaker 1: for a two hour dinner. The British leader had hoped

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Speaker 1: to meet both the presidential candidate's face to face for

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Speaker 1: the first time, but he couldn't secure a meeting with

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Speaker 1: Kabla Harris. Ahead of the meeting, Donald Trump was asked

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Speaker 1: by the press what he thought of Kirs Starmer.

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Speaker 6: Well, I'm going to see him in in about an hour,

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Speaker 6: so I have to be nice, right, But I actually

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Speaker 6: think is very nice.

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Speaker 4: I think.

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Speaker 7: He ran a great race.

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Speaker 6: He did very well. It's very early, but he's popular

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Speaker 6: and I'll be seeing him and I'll send your regards.

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Speaker 1: Trump has said that he wants to peg security guarantees

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Speaker 1: on European nations, hitting goals for defense spending. The pair

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Speaker 1: are not natural allies with Starmer's foremous foreign secretary, sorry,

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Speaker 1: rather his current foreign secretary, referring to Trump as quote

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Speaker 1: a woman hating, neo Nazi sympathizing sociopath. Six years ago.

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Speaker 1: New York City Mayor Eric Adams has been indicted on

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Speaker 1: bribery and fraud charges following a federal corruption investigation. He's

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Speaker 1: accused of accepting more than one hundred thousand dollars in

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Speaker 1: lavish bra vibes from foreign nationals. Responding to the allegations,

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Speaker 1: Adams said that he will continue to serve as mayor

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Speaker 1: and plans to defend himself against the charges. Now, in

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Speaker 1: a moment, we're going to be talking about the latest

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Speaker 1: when it comes to the Middle East. Benjamin Letnia, who's

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Speaker 1: expected to address the United Nations today. We'll also talk

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Speaker 1: about what's happening in China. But before I get to that,

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Speaker 1: I want to talk about olive oil. A lot of

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Speaker 1: your food basket, of course, and your food bill is

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Speaker 1: all about the weather. You know that the cost of

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Speaker 1: your vegetables and fruits and also import prices into the

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Speaker 1: UK were more acutely aware of that post Brexit, aren't we.

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Speaker 1: But we've been doing some analysis of just the extraordinary

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Speaker 1: rise in olive oil prices. Do you know the price

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Speaker 1: of olive oil has tripled in three years? That can

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Speaker 1: be traced back to drought and heat wave conditions that

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Speaker 1: we've seen in the med But it means that criminals

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Speaker 1: are trying to exploit this or they are. Data that's

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Speaker 1: been released under a freedom of information request shows that

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Speaker 1: the EU has seen this record number of potential olive

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Speaker 1: oil fraud cases and that one of our reporters has

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Speaker 1: written about all the various ways in which criminal gangs

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Speaker 1: are trying to exploit this and what they're replacing the

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Speaker 1: olive oil with. It sort of makes your hair stand

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Speaker 1: on end, the idea of liquid gold and what it

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Speaker 1: might actually be replaced with us. Yeah, sometimes the term

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Speaker 1: for olive oil. So that's one of the stories that's

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Speaker 1: on the Bloomberg terminal this morning. Slightly lighter from our

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Speaker 1: reporter Lara Williams. China's benchmark cs I three hundred is

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Speaker 1: set for its best week since two thousand and eight.

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Speaker 1: It comes as the PBOC has pulled the trigger on

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Speaker 1: easing measures announced by the PBOC Governor Pangong Shme just

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Speaker 1: earlier this week. Joining me now from Hong Kong is

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Speaker 1: our Economy and Government Editor for Greater China, Jenny Marsh. Jenny,

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Speaker 1: very good morning to thank thank you for being with

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Speaker 1: me in terms of the size of the impact on China.

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Speaker 1: Just take us through what measures have now been enacted

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Speaker 1: and what the impact has been throughout the markets today.

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Speaker 3: Hi. So there's been a whole treasure trove of measures

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Speaker 3: this week.

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Speaker 8: So we've had rate cuts which have come into effect today,

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Speaker 8: a reduction of the triple rs and the amount of

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Speaker 8: my banks have to hold in reserve also coming into

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Speaker 8: effect today. Last night, the Pollit Bureau announced what it

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Speaker 8: talked about this month, and they used the September meeting

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Speaker 8: unusually to just talk about the economy. They normally only

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Speaker 8: do that in April, July, and December. And in that

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Speaker 8: meeting there was some really interesting lines. So they played

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Speaker 8: for the first time to stop property prices declining, to

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Speaker 8: stabilize the market. That phrase that they used to always

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Speaker 8: sort of roll out that housing is for living, not speculation,

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Speaker 8: it was gone. You know, we've moved away from that.

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Speaker 8: They talked about ramping up fiscal spending, and then there

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Speaker 8: was a lot of hints in there sort of tilt

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Speaker 8: towards more spending on welfare that were talking about really

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Speaker 8: making sure that the poorest people are taking care of

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Speaker 8: and listening to the voice of the people. So an

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Speaker 8: awareness there's a growing dissatisfaction well in Chinese society and

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Speaker 8: sort of a willingness to address it.

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Speaker 1: Yes, that's interesting, isn't it in terms of what that

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Speaker 1: means them when you think about the Chinese consumer and

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Speaker 1: Chinese businesses, does that give them more confidence then this support?

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Speaker 1: Does it mean an upgrade to the overall economic growth

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Speaker 1: forecast for China?

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Speaker 8: We aren't seeing a lot of economists upgrading their forecast

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Speaker 8: right now. It might be that they're taking a little

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Speaker 8: bit of time to digest the measures, but it hasn't

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Speaker 8: sort of shifted the needle for the Big Bank's official

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Speaker 8: forecasts yet. However, I think anecdotally people are saying this

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Speaker 8: makes it easier for them to get within that around

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Speaker 8: five percent. Around five percent of course anything as low

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Speaker 8: as four point eight, so they probably can hit the

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Speaker 8: official target now.

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Speaker 3: But a lot of these measures are sort of been

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Speaker 3: seen as a boon.

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Speaker 8: For markets but not really addressing in sort of the

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Speaker 8: fundamental underlying issues that are really troubling the economy. So

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Speaker 8: you know, it's a quick sort of adrenaline shot, if

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Speaker 8: you like, But it doesn't really do anything to sort

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Speaker 8: of adjust the structural problems they have around demand and

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Speaker 8: also the property.

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Speaker 3: Crisis as well. So I think there's still a lot

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Speaker 3: of more meat on the bone to be added.

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Speaker 8: Yeah, but it's definitely a signal from the government that

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Speaker 8: they care about slowing growth. They're not willing to left

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Speaker 8: this grind to a halt while she tries to reorient

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Speaker 8: the economy away from property driven growth sort of high

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Speaker 8: tech manufacturing. You can't basically focus on the new economy

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Speaker 8: and forget the old economy.

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Speaker 3: You have to take care of both.

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Speaker 1: Yeah, and when you talk about those big structural issues,

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Speaker 1: US officials who actually reacted to China's moves after a

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Speaker 1: number of warnings, the US Terressury Secretary Janet yelling that

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Speaker 1: China can't rely again, as you say, on the old

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Speaker 1: economy the exports for economic growth.

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Speaker 3: Well, that's right.

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Speaker 8: So Jay Jambro, the Treasury under Secretary, has come out

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Speaker 8: saying this is an important step and the mastive demand,

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Speaker 8: you know, needs to go faster, and that Chinese officials

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Speaker 8: now sort of waking up to that, and.

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Speaker 3: That is right.

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Speaker 8: I mean, I think the way that we're reading the

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Speaker 8: pol Bureau statement is the government is saying it knows

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Speaker 8: what needs to be done, whether or not it knows

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Speaker 8: how to do it.

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Speaker 3: You know. It's another thing.

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Speaker 8: It's sort of easy to give markets a boost, but

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Speaker 8: to sort of convince your nation to spend. This is

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Speaker 8: one of the countries that has one of the world's

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Speaker 8: highest household saving rates. It's sort of you know, embedded

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Speaker 8: within Chinese households to save money, partly because there's a

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Speaker 8: very thin social security net. If you get sick in China,

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Speaker 8: you money to pay for your medical care. The retirement

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Speaker 8: pension fund, you know, is not enough likely to.

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Speaker 3: See you through your old age.

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Speaker 8: Education costs a lot, So there's a lot of things

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Speaker 8: that sort of structurally are holding people back from spending.

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Speaker 8: Declining corporate profits also is making layoffs more prevalent. So

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Speaker 8: there's a lot of the government needs to do to

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Speaker 8: make people feel safe enough to spend, and that is

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Speaker 8: a much bigger, longer task. So I think this week's

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Speaker 8: been very positive. The government's showing urgency, but people have

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Speaker 8: to be realistic the big structural problems they have.

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Speaker 3: I want to eight years to fix.

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Speaker 8: But you know, I think, as Jayshamber saying, they are

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Speaker 8: at least now saying like we get it.

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Speaker 3: We've got to deal with demand.

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Speaker 1: Okay, Jenny, thank you so much for your time this morning.

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Speaker 1: Bloomberg's Greater China Economy and Government editor Jenny marsh so

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Speaker 1: putting this week's action in China in perspective. Thank you now.

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Speaker 1: Benjamin Letniel, who says that air strikes against Hezbolla targets

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Speaker 1: in Lebanon will continue indefinitely until Israel's northern residents can

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Speaker 1: return to their homes. The proposal for a three week

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Speaker 1: sea spar seems to be on pause. Joining me now,

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Speaker 1: Bloomberg's Paul Wallace, who leads our coverage of the Middle East.

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Speaker 1: So Nettnya, who is giving a speech at the UN today.

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Speaker 1: He spoke there only a year ago under very different circumstances.

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Speaker 1: What do you think he's going to say today?

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Speaker 7: I can and yeah, you're absolutely right.

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Speaker 9: A year ago he spoke just before the Sober the

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Speaker 9: seventh attacks by Hamas, and at that stage he was

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Speaker 9: very optimistic talking about the prospects of normalization with Saudi

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Speaker 9: Arabia and what a.

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Speaker 7: Different world that is. Now.

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Speaker 10: I think in a lot of ways he's going to

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Speaker 10: say many of the same things that he did to

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Speaker 10: the US Congress when he struck in July in a

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Speaker 10: very fiery speech, and in that one he defended Israel's

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Speaker 10: stance in Gaza despite all the destruction of the deaths

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Speaker 10: in the palace in territory and said Israel had no choice,

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Speaker 10: that this was a war that it didn't want, obviously,

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Speaker 10: and that it was completely brought upon Israel by Hamasa's actions.

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Speaker 7: I think he's going to say more of the same.

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Speaker 10: Today when he speaks, but also in the context of Hezbollah,

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Speaker 10: because there's huge concern about the escalations between the Shia

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Speaker 10: militant group and Israel. They're on the cusp over and

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Speaker 10: all our war, and there's a high chance that Israel

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Speaker 10: ends up sending ground troops into Lebanon. That's not inevitable,

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Speaker 10: but that's very much a concern of the US, European

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Speaker 10: powers and others. And I think Iran will also feature

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Speaker 10: heavily in Natan's speech today.

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Speaker 7: For four months, if.

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Speaker 10: If not ever, since October seventh, he and his officials

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Speaker 10: have consistently played up the threat of Iran and essentially

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Speaker 10: said it's creating or has already created a ring of

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Speaker 10: fire as they call it around Israel as a as

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Speaker 10: tearan sixty use its approximate groups to essentially destroy the country.

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Speaker 1: Yeah, so very difficult moment and highly anticipated beach then,

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Speaker 1: in terms of what is being proposed, just very briefly

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Speaker 1: on the idea of the CEA spy, is that being

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Speaker 1: engaged with a tool.

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Speaker 7: In terms of abla in Israel, it is.

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Speaker 10: However, I think there's a bit of a set of

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Speaker 10: deja boog here, and the US put out a joint

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Speaker 10: statement with France, Saldi Arabia cut on from others yesterday

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Speaker 10: closing a three weeks cease fire. The very immediate signals

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Speaker 10: from Israel were were that they would give this a

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Speaker 10: chance and that they were happy these talks were happening,

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Speaker 10: but very quickly as rare officials publicly said they don't

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Speaker 10: want three weeks, that that would only not as well.

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Speaker 7: To regroup and they're going to continue that. It set

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Speaker 7: strikes in emonon.

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