WEBVTT - Israel Response, Reserve Call Up, Labour Conference 0:00:02.520 --> 0:00:04.880 It's Tuesday, the tenth of October in London. This is 0:00:04.920 --> 0:00:08.520 the Bloomberg Daybreak Europe podcast. I'm Stephen Carroll. Coming up today, 0:00:08.800 --> 0:00:12.559 Israel unites. A fractured country comes together after a horrific 0:00:12.600 --> 0:00:16.840 attack that killed hundreds. Netanyahu says his country's response will 0:00:16.880 --> 0:00:20.560 reverberate with their enemies for generations as fears of mass 0:00:20.640 --> 0:00:24.239 civilian casualties grow, and will bring you the latest from 0:00:24.280 --> 0:00:27.200 the Labor Party conference in the UK, where Kirstahmer is 0:00:27.240 --> 0:00:30.480 set to warn that the country faces a difficult path 0:00:30.600 --> 0:00:33.760 to recovery. Let's start with a roundup of our top stories. 0:00:35.120 --> 0:00:38.319 More than nine hundred Israelis, mostly civilians, are now known 0:00:38.360 --> 0:00:41.560 to have died in Hamas's surprise attacks. At the weekend, 0:00:41.760 --> 0:00:45.680 nearly seven hundred Palestinians have been killed during retaliatory strikes. 0:00:46.200 --> 0:00:48.840 A survivor of the attack by Hamas on the Supernova 0:00:48.880 --> 0:00:53.040 festival in Israel says his escape was terrifying. Hi Cohen 0:00:53.120 --> 0:00:56.440 says he dodged bullets as he drove through a field 0:00:56.480 --> 0:00:59.280 with his girlfriend to get away from the violence. He 0:00:59.360 --> 0:01:01.160 described so of what he witnessed. 0:01:01.680 --> 0:01:06.160 We saw the chips in the motorcycles of Hamas pouching 0:01:06.680 --> 0:01:11.959 young children that they was under effect of trucks and alcohol. 0:01:12.480 --> 0:01:13.759 They just butchered. 0:01:13.440 --> 0:01:17.000 Them while Hai Con and his partner made it to safety. 0:01:17.080 --> 0:01:20.200 Israeli authorities are still trying to identify and remove the 0:01:20.280 --> 0:01:23.280 bodies of over two hundred and fifty people killed at 0:01:23.280 --> 0:01:27.160 the event. Many others have been taken hostage. A spokesman 0:01:27.200 --> 0:01:30.360 for Hamas told Al Jazeera that the Palestinian militant group 0:01:30.440 --> 0:01:33.959 is preparing to kill them should Israel strike civilian homes 0:01:33.959 --> 0:01:38.440 in Gaza without warning. Israel's army is now planning the 0:01:38.480 --> 0:01:41.720 largest mobilization in the country's history, calling up three hundred 0:01:41.760 --> 0:01:45.560 thousand reserve soldiers to fight. The Prime Minister benjaminettanie who 0:01:45.600 --> 0:01:50.760 says the response to Hamas has only started, willem. 0:01:51.440 --> 0:01:53.920 I know that we all want immediate results. It will 0:01:53.960 --> 0:01:57.040 take time, but I promise you, dear Israeli citizens, at 0:01:57.040 --> 0:01:59.720 the end of this campaign, all of our enemies will 0:01:59.760 --> 0:02:02.800 know there was a great mistake to attack Israel. What 0:02:02.920 --> 0:02:05.120 we will do to our enemies in the coming days 0:02:05.400 --> 0:02:07.640 will reverberate with them for generations. 0:02:08.639 --> 0:02:11.919 Netaniahu's comments come as the country's armed forces continue to 0:02:12.000 --> 0:02:15.840 launch airstrikes against the Gaza Strip. Israel's military often in 0:02:15.880 --> 0:02:19.400 struct civilians to evacuate before it hits apartment or office 0:02:19.440 --> 0:02:23.480 towers in Gaza where civilians might be present. Whoever, residents 0:02:23.480 --> 0:02:26.840 in Gaza now say buildings are being hit without warning. 0:02:28.960 --> 0:02:31.440 Of these six hundred and eighty seven people reported to 0:02:31.480 --> 0:02:34.079 have been killed in Gaza. The Health Ministry says one 0:02:34.120 --> 0:02:38.520 hundred and forty year children. Senior Hamas official Ari Baraka 0:02:38.680 --> 0:02:42.600 warned against an all out assault on the Palestinian territory Hola. 0:02:43.760 --> 0:02:46.040 Our allies are ready to join the fight. If Gaza 0:02:46.120 --> 0:02:49.280 subjected to a war of annihilation, they will not sit 0:02:49.320 --> 0:02:52.040 with their hands tied. The government of Israel knows they 0:02:52.040 --> 0:02:54.160 will open the gates of hell if they try to 0:02:54.200 --> 0:02:58.080 destroy Gaza and to use non traditional weapons to destroy Kaza, 0:02:58.240 --> 0:02:59.359 like American weapons. 0:03:00.800 --> 0:03:04.160 Ali Baraka's call for support comes as America's most senior 0:03:04.200 --> 0:03:07.799 military official, General Charles Q. Brown Junior, warned Iran to 0:03:07.919 --> 0:03:11.840 not get involved in the Israel Hamas conflict. Speaking to 0:03:11.840 --> 0:03:14.600 the Financial Times, the chairman of the US Joint Chiefs 0:03:14.600 --> 0:03:17.000 of Staff said, we do know what do not want 0:03:17.040 --> 0:03:19.920 this to broaden, and the idea is for Iran to 0:03:20.000 --> 0:03:24.040 get that message loud and clear. Meanwhile, the US government 0:03:24.040 --> 0:03:26.880 says the first shipments of security aids to Israel or 0:03:26.919 --> 0:03:29.760 already on the way. Bloomberg's At Baxter has the story. 0:03:29.919 --> 0:03:32.640 There had been some question about what the US could do, 0:03:32.800 --> 0:03:36.839 but National Security Council spokesman John Kirby says it's important 0:03:36.920 --> 0:03:39.520 that the aid go now and more will be on 0:03:39.560 --> 0:03:43.280 the way soon. Meanwhile, Kirby on MSNBC says there is 0:03:43.360 --> 0:03:46.920 no known direct link between Iran and AMAS on the 0:03:46.960 --> 0:03:47.800 initial attacks. 0:03:47.960 --> 0:03:48.480 No, we do not. 0:03:48.680 --> 0:03:51.480 We don't have any specific intelligence or evidence that points 0:03:51.520 --> 0:03:55.800 to direct participation by Iran. That said, of course, Iran 0:03:55.840 --> 0:03:58.920 has long supported HAMAS and other terrorist networks, and. 0:03:58.880 --> 0:04:01.480 The President is set to me can address later today, 0:04:02.280 --> 0:04:03.640 Ed Baxter, Bloomberg Radio. 0:04:05.040 --> 0:04:08.400 Top Federal Reserve officials increasingly feel that another rate hike 0:04:08.520 --> 0:04:11.280 may not be needed after a recent surge in US 0:04:11.320 --> 0:04:15.280 borrowing costs. Speaking at the National Association for Business Economics 0:04:15.320 --> 0:04:19.360 conference in Dallas, Federal Reserve Vice chair Philip Jefferson said 0:04:19.520 --> 0:04:22.480 he's watching the increase in treasury yields closely. 0:04:22.720 --> 0:04:26.680 What I think about is the real rate that is 0:04:26.760 --> 0:04:31.919 required to bring aggregate supply back in to balance with 0:04:31.960 --> 0:04:37.080 aggregate demand. I think current policy is restrictive in putting 0:04:37.080 --> 0:04:41.400 downward pressure on the inflation rate, and that's really what 0:04:41.560 --> 0:04:43.160 my concern is. 0:04:44.400 --> 0:04:46.839 Jefferson went on to say that he will quote remain 0:04:46.920 --> 0:04:50.960 cognizant of the tightening and financial conditions through higher bond yields. 0:04:51.279 --> 0:04:54.240 His comments were echoed by Dallas FED President Laurie Logan, 0:04:54.360 --> 0:04:57.839 who also spoke yesterday, saying that elevated borrowing costs could 0:04:57.880 --> 0:05:00.680 do some of the work of cooling the economy for us. 0:05:01.120 --> 0:05:03.640 That's reflected in the markets, which believe there's only a 0:05:03.640 --> 0:05:06.719 twenty percent chance of a quarter point hike at the 0:05:06.839 --> 0:05:10.200 upcoming policy meeting. And here in the UK, the Labor 0:05:10.200 --> 0:05:13.479 Party leader Keir Starmer will today warn that the country 0:05:13.520 --> 0:05:16.960 faces a difficult path to recovery as he urges voters 0:05:16.960 --> 0:05:20.200 to put their trust in him and his party. Starmer 0:05:20.240 --> 0:05:23.560 will tell Labour's annual conference this afternoon that quote what 0:05:23.720 --> 0:05:27.520 is broken can be repaired, what is ruined can be rebuilt. 0:05:28.200 --> 0:05:30.880 The speech comes after the Shadow Chancellor of the Exchequer, 0:05:30.960 --> 0:05:34.240 Rachel Reeves, told Bloomberg's Lizzie Burden that Labor plans to 0:05:34.320 --> 0:05:36.760 fight the election on the economy. 0:05:36.520 --> 0:05:38.920 Went borrowing to fun day to day spending. We'll bring 0:05:38.960 --> 0:05:41.320 dick down as the share of our economy and then 0:05:41.400 --> 0:05:44.160 only subject to that, we will invest in the things 0:05:44.440 --> 0:05:47.880 that can boost our productivity. Work it in conjunction with 0:05:47.960 --> 0:05:51.240 business to unlock further private sector investment. 0:05:52.040 --> 0:05:55.000 Rachel Reeves also says Labor will use government borrowing to 0:05:55.080 --> 0:05:58.800 invest in British industry if it wins power. While popular 0:05:58.880 --> 0:06:02.600 with many, the move risks playing into the typical conservative 0:06:02.760 --> 0:06:07.479 of tax over the party's fiscal discipline. Well, let's bring 0:06:07.480 --> 0:06:10.760 you more now on the attacks in Israel, as we 0:06:11.040 --> 0:06:15.080 are joined by our head of Middle East and North Africa, 0:06:15.160 --> 0:06:18.360 Stuart Livingstone. Wallace is in Dubai and in London, OURMA 0:06:18.440 --> 0:06:22.720 News director Rosland mathieson Roz to you. First, we heard 0:06:22.760 --> 0:06:26.239 from an international point of view, the leaders of the US, Germany, France, 0:06:26.279 --> 0:06:28.960 Italy and the UK spoke last night about the situation 0:06:29.080 --> 0:06:30.880 in Israel. What came out of that call. 0:06:31.960 --> 0:06:35.039 Well, an initial statement of course, strongly supporting Israel and 0:06:35.040 --> 0:06:38.760 condemning her mass but not a lot more beyond that. 0:06:38.800 --> 0:06:42.479 For now, Europe is unlikely to want to get caught 0:06:42.560 --> 0:06:45.560 up in the military aspect of things. Is As very 0:06:45.600 --> 0:06:49.799 much a US ally and that's where the military ties lie. 0:06:50.240 --> 0:06:52.800 Of course, Europe is worried about their citizens. They're worried 0:06:52.800 --> 0:06:57.080 about what's happening inside Israel. They've lit up their parliamentary 0:06:57.120 --> 0:07:00.440 buildings and places like Germany and the UK, but there 0:07:00.520 --> 0:07:05.159 is that caution about sort of supplying military aid to 0:07:05.480 --> 0:07:09.560 Israel or getting involved militarily, and in some places there 0:07:09.640 --> 0:07:12.320 is a sense of empathy over the years for the 0:07:12.400 --> 0:07:16.760 challenges facing Palestinian people. That's not to say they endorse 0:07:17.200 --> 0:07:20.400 the actions taken on the weekend by Hamas at all, 0:07:20.800 --> 0:07:24.400 but it's not as clear cup for people some officials 0:07:24.440 --> 0:07:28.200 really in Europe as when Russia invaded Ukraine. So you 0:07:28.280 --> 0:07:32.440 see protests in these countries in Europe both supporting Israel 0:07:32.600 --> 0:07:36.280 and supporting those advocating for a separate Palestinian state. So 0:07:36.400 --> 0:07:40.320 you are seeing that general statement of support overnight from Israel, 0:07:40.320 --> 0:07:43.120 but it's a little bit more complicated than say the 0:07:43.160 --> 0:07:46.720 immediate aftermath of Russia's invasion of Ukraine. 0:07:46.280 --> 0:07:49.440 And that played out as well at an EU level yesterday, 0:07:49.440 --> 0:07:52.040 where there was announcement from the European Commission that aide 0:07:52.160 --> 0:07:57.200 two Palestinians had been suspended. Now that was subsequently reversed. 0:07:57.280 --> 0:07:59.440 EU foreign ministers are meeting today and say they'll be 0:07:59.560 --> 0:08:03.760 reviewing humanitarian aid. Talk us through what happened in the EU. 0:08:04.880 --> 0:08:07.000 Well, that's right, we got that announcement it was going 0:08:07.040 --> 0:08:09.480 to be suspended, and then late last night the idea no, 0:08:09.560 --> 0:08:12.800 it's actually going to be reviewed but not suspended, and 0:08:12.800 --> 0:08:16.520 they will discuss that today. It came after the UN 0:08:16.560 --> 0:08:21.040 Secretary General Antonio Guteris, he spoke with his European Council 0:08:21.120 --> 0:08:24.880 President counterpart Charles Michelle, and said, hang on, this is 0:08:25.120 --> 0:08:29.600 humanitarian aid that Europe provides. It's aid aimed at supporting 0:08:29.640 --> 0:08:35.400 Palestinians who reject Hamas and in this situation we're seeing, 0:08:35.440 --> 0:08:39.120 for example in the Gaza strip right now, that the 0:08:39.679 --> 0:08:43.400 living conditions for people there for quite some time have 0:08:43.559 --> 0:08:45.720 been poor and the aim of this is to reach 0:08:45.800 --> 0:08:50.240 those people and to support them, regardless of their political affiliation. 0:08:50.400 --> 0:08:53.280 In some states so they weren't consulted on the initial decision, 0:08:53.400 --> 0:08:56.599 including Spain and Ireland, and so what you saw was 0:08:56.640 --> 0:08:59.360 this late night reversed and at least now an idea. 0:08:59.400 --> 0:09:00.559 It's not going to be suspended. 0:09:00.559 --> 0:09:02.960 It will be discussed today what more. 0:09:02.840 --> 0:09:04.880 Have we heard from the United States? RA was about 0:09:04.920 --> 0:09:06.840 the aid that they're providing to Israel. 0:09:08.120 --> 0:09:11.199 Well, this is also a bit complicated because of domestic politics. 0:09:11.280 --> 0:09:14.160 Right now in the US there is no House speaker 0:09:14.360 --> 0:09:16.760 and they've got to sort that out so the business 0:09:16.800 --> 0:09:19.480 of the House can resume. Of course, the Biden administration 0:09:19.640 --> 0:09:23.680 could do some munilateral announcements around aid military a but 0:09:23.679 --> 0:09:26.560 they've been a bit cautious there. Also, mean, the US 0:09:26.640 --> 0:09:30.520 provides already more than three billion dollars in military aid 0:09:30.559 --> 0:09:33.520 to Israel every year. They've said they're going to support 0:09:33.559 --> 0:09:37.840 Israel in whatever way is needed, that sort of diplomatic support, 0:09:37.880 --> 0:09:41.560 strategic support, and possibly further military support, but we haven't 0:09:41.559 --> 0:09:44.200 really heard a lot of specifics about that so far. 0:09:44.800 --> 0:09:47.240 And of course Israel is a well equipped military, but 0:09:47.280 --> 0:09:52.160 also that soldiers already seemingly running short on kit according 0:09:52.640 --> 0:09:55.200 to some reports, and so you're going to see this 0:09:55.320 --> 0:09:58.000 possibly get caught up a bit also in the wash 0:09:58.000 --> 0:09:59.640 of US domestic politics. 0:10:00.400 --> 0:10:02.120 Okay, Ras, and stay with us. We're going to turn 0:10:02.200 --> 0:10:04.720 to Stuart Livingston Wallace now who joins US from Dubai, 0:10:04.760 --> 0:10:07.040 a head of Middle East and North Africa. S Jude 0:10:07.040 --> 0:10:09.240 I wonder if we could start by just updating us 0:10:09.320 --> 0:10:13.160 on the security situation in southern Israel this morning and 0:10:13.200 --> 0:10:15.760 the efforts that are being made to secure the release 0:10:15.920 --> 0:10:17.600 of the hostages being held in Gaza. 0:10:19.480 --> 0:10:22.280 Yeah, good morning. So it's still things are still a 0:10:22.320 --> 0:10:25.240 little bit murky. We know that they have regained full 0:10:25.280 --> 0:10:28.840 control over certainly the majority of areas that we're infiltrated 0:10:28.880 --> 0:10:31.439 on Saturday and into Sunday, but I think there is 0:10:31.480 --> 0:10:35.800 still a concern that there are how much medicines knocking 0:10:35.840 --> 0:10:38.559 around somewhere inside its rail there's no great certainty with that. 0:10:39.400 --> 0:10:43.000 The regular ideas that of the Israel Defense Forces briefing 0:10:43.080 --> 0:10:46.160 kicked off about ten minutes ago, so we'll know what 0:10:46.240 --> 0:10:48.920 the latest situation is, hopefully in detail in about ten 0:10:48.920 --> 0:10:53.840 minutes from now. To the north. Again, we've had a 0:10:53.880 --> 0:10:57.760 few incidents, but nothing serious. On the border with Lebanon, 0:10:57.760 --> 0:11:01.240 We've have some rockets fired over a rather mortified over 0:11:01.679 --> 0:11:05.280 and some retaliatory responses there. We did have some infiltration, 0:11:05.400 --> 0:11:08.040 but again it was characterized as relatively low level and 0:11:08.080 --> 0:11:12.319 seemed to be locked up relatively quickly. So for as 0:11:12.360 --> 0:11:16.200 things stand right now, at least on the ground, things 0:11:16.200 --> 0:11:19.040 appear to be getting better in terms of regaining control, 0:11:19.559 --> 0:11:21.840 but as you know, there is a long way to 0:11:21.880 --> 0:11:24.600 go in this conflict. In terms of the hostages, we 0:11:24.720 --> 0:11:27.200 know that castAR has been trying to broak of some 0:11:27.360 --> 0:11:30.199 sort of deal since Saturday. Really not clear if they're 0:11:30.240 --> 0:11:33.000 getting anywhere, and I think anyone everyone would be very 0:11:33.000 --> 0:11:37.440 surprised if that was resolved soon. We think, based on 0:11:37.480 --> 0:11:40.440 comments from the US government yesterday, that there are Americans involved, 0:11:40.480 --> 0:11:43.680 but again no one quite knows the number in total. 0:11:44.160 --> 0:11:46.079 You know, We've been hearing all sorts of numbers. It's 0:11:46.240 --> 0:11:47.920 probably more than one hundred, but it could be a 0:11:47.920 --> 0:11:50.840 greater more than that. So in terms of where we 0:11:50.880 --> 0:11:53.199 go next on that, again we know the FBI is 0:11:53.280 --> 0:11:55.880 involved in helping out the regular authorities and figuring out 0:11:56.160 --> 0:11:57.760 how many there are and where they are and what 0:11:57.800 --> 0:12:00.120 they can do about it. But again, rather like the 0:12:00.120 --> 0:12:03.679 situation on the ground, things remain quite murky. 0:12:04.440 --> 0:12:07.199 We have, of course seen this series of airstrikes taking 0:12:07.240 --> 0:12:11.079 place in Gaza. I wonder what more you can tell 0:12:11.120 --> 0:12:14.640 us about what we know about what Israel as preparing 0:12:14.679 --> 0:12:16.880 to do next in its response to these attacks. 0:12:19.120 --> 0:12:21.760 Well, so far we've not had clarity. I mean As 0:12:21.840 --> 0:12:24.599 things stand, we continue to get attacks from both the 0:12:24.679 --> 0:12:27.920 land and the se into Gaza. The death toll in 0:12:27.960 --> 0:12:31.400 Gaza is into the several hundred now, and broadly speaking, 0:12:32.200 --> 0:12:34.400 again this from the Israeli side, they're going after what 0:12:34.440 --> 0:12:37.480 they considered to be military assets. Of that is tunnel, 0:12:37.600 --> 0:12:40.160 that is, houses where they say hamas meat, that's even 0:12:40.160 --> 0:12:43.600 includes moss that again the Israelis say Hamas are using 0:12:43.640 --> 0:12:48.080 for operational purposes. But we know they've targeted residential buildings 0:12:48.080 --> 0:12:52.560 as well on the grounds as they portrayed as being 0:12:52.679 --> 0:12:57.440 places where Hammas are operating from. Clearly, everyone is watching 0:12:57.480 --> 0:12:59.600 and waiting to see whether you're going to have troops 0:12:59.600 --> 0:13:02.520 on the ground, Israeli troops on the grounds in Gaza. 0:13:03.520 --> 0:13:06.920 The Israelis themselves have said nothing definitive on that so far. 0:13:07.600 --> 0:13:10.520 We had Ron Berber on yesterday. Now he's one of 0:13:10.760 --> 0:13:14.360 Netna's closest allies in the Kabinet, and we asked him 0:13:14.360 --> 0:13:16.839 that question specifically, and again he was very careful not 0:13:16.920 --> 0:13:20.160 to give anything beyond what Netna himself has said. But 0:13:20.240 --> 0:13:25.280 obviously the rhetoric coming from Israeli government has been pretty strong, 0:13:25.840 --> 0:13:28.160 but we've had no specifics yes on what that might 0:13:28.200 --> 0:13:29.800 be or when might have. 0:13:31.320 --> 0:13:34.760 We've been watching very closely the commentary around Iran's role, 0:13:35.520 --> 0:13:39.640 whether or not it supported or helped Hamas prepare for 0:13:39.760 --> 0:13:42.920 these attacks. What more have we heard about the role 0:13:42.960 --> 0:13:43.680 of Iran in. 0:13:43.600 --> 0:13:48.760 This, Well, everyone's being very cautious. I mean, I think 0:13:48.800 --> 0:13:52.000 the furthest that anyone's gone is probably Ron Bermerin saying 0:13:52.640 --> 0:13:54.840 something along the lines of initially we didn't think that 0:13:54.920 --> 0:13:58.240 they were directly involved. He then said, now there's some 0:13:58.280 --> 0:14:01.240 evidence that they might have known about, but that they 0:14:01.280 --> 0:14:03.680 were still working to verify that evidence. But again there's 0:14:03.720 --> 0:14:06.719 a wide gulf between perhaps being aware of it in 0:14:06.840 --> 0:14:10.000 advance and being actively involved in planning and the operational 0:14:10.080 --> 0:14:10.520 side of it. 0:14:11.000 --> 0:14:11.160 You know. 0:14:11.280 --> 0:14:13.520 Similarly, the US has been repeated and the arsked did 0:14:13.559 --> 0:14:16.600 we have any evidence that they were directly involved? And 0:14:16.640 --> 0:14:21.000 again we had the National Security Council spokesman John Kirby 0:14:21.640 --> 0:14:25.480 yesterday saying that there wasn't any specific intelligence or evidence 0:14:25.560 --> 0:14:28.360 that points the direct participation in Iran and the attacks 0:14:28.360 --> 0:14:33.520 against Israel. So for now, I think the general view 0:14:33.600 --> 0:14:35.880 is that there is no evidence for it. But again, 0:14:35.920 --> 0:14:38.600 there is a long history there of Iran providing support 0:14:38.640 --> 0:14:41.200 to how mass that. The question now is where they 0:14:41.280 --> 0:14:43.320 directly involved? Did they know about it? Do they not 0:14:43.400 --> 0:14:44.880 know about it at all? And I think that's what 0:14:44.920 --> 0:14:46.440 everyone's trying to figure out right now. 0:14:47.160 --> 0:14:49.560 Ros and Madsen turning back to you, what have we 0:14:49.560 --> 0:14:51.920 heard from other international powers in this as well? We've 0:14:51.960 --> 0:14:54.560 been watching the US Senate leader Chuck Schumer meeting China's 0:14:54.560 --> 0:14:55.720 president she yesterday. 0:14:56.840 --> 0:14:59.360 Well, so it's been fd quiet from countries like Russia 0:14:59.360 --> 0:15:02.640 and China. China's expressed sadness of what has happened and 0:15:02.680 --> 0:15:06.440 called for KHM, but it's not condemned Hamas. And so 0:15:06.480 --> 0:15:09.360 there was that criticism there, Yester, that you mentioned from 0:15:09.680 --> 0:15:13.600 Chuck Schuma. But China's response is hardly surprising. It's in 0:15:13.640 --> 0:15:16.520 line with its general approach not to be drawn into 0:15:16.560 --> 0:15:20.040 conflicts like this. On Russia's invasion of Ukraine, it said 0:15:20.120 --> 0:15:24.200 similar things but didn't really condemn Russia throughout calling for 0:15:24.320 --> 0:15:27.000 ceasefires and the like. And of course China is quick 0:15:27.040 --> 0:15:29.400 to spott an opportunity to try and drive a wage 0:15:29.400 --> 0:15:32.920 between other nations, particularly between the US and other nations, 0:15:33.400 --> 0:15:35.680 and exploit them. And you know in Ukraine there was 0:15:35.720 --> 0:15:38.240 a case of nations who didn't want that war to 0:15:38.240 --> 0:15:40.520 carry on. So it's a bit more complex so for 0:15:40.560 --> 0:15:42.760 countries as they may not feel it's as clear cut 0:15:43.120 --> 0:15:46.120 as Russia going into Ukraine. But the moment what we're 0:15:46.120 --> 0:15:49.400 seeing is like Russia China perhaps sitting on the sidelines 0:15:49.440 --> 0:15:52.160 watching developments but not wanting to get directly. 0:15:51.720 --> 0:15:55.400 Pulled in own news director Razlin Matheson and are Head 0:15:55.400 --> 0:15:57.960 of Middle Eastern North Africa Sture at Livingston Wallace. Thank you, 0:15:58.000 --> 0:15:59.920 boot to you both for joining us with the later 0:16:00.240 --> 0:16:03.240 on this story. Turning to politics here in the UK, 0:16:03.360 --> 0:16:05.800 Keir Starmer will tell us Parties Conference of the UK 0:16:05.880 --> 0:16:09.280 faces a difficult path to recovery as he urges voters 0:16:09.320 --> 0:16:12.840 to trust Labor to rebuild the UK after thirteen years 0:16:12.880 --> 0:16:15.680 of Conservative rule. His keynote speech is the main event 0:16:15.760 --> 0:16:18.480 at the conference at Liverpool today and carln Hepker is 0:16:18.520 --> 0:16:19.800 live there for us this morning. 0:16:19.840 --> 0:16:23.520 Carlin, good morning, very good morning to Stephen. Let's start 0:16:23.560 --> 0:16:25.920 with the day yesterday, shall we hear at Labour conference. 0:16:26.040 --> 0:16:31.200 It was a hugely ambitious day. Rachel Reeves received a 0:16:31.400 --> 0:16:35.120 hero's welcome and delivered a very persuasive speech. She has 0:16:35.160 --> 0:16:38.920 claimed the Tories usual stomping ground of the economy ahead 0:16:38.920 --> 0:16:41.360 of an election that Labour says they are preparing for 0:16:41.600 --> 0:16:45.280 as early as next May. Labor gave a clear response 0:16:45.320 --> 0:16:48.680 to the Hammus attacks in Israel, which could have been 0:16:48.800 --> 0:16:53.640 derailed by the previous leadership who were here yesterday in Liverpool. 0:16:54.280 --> 0:16:57.880 Now those you say, Stephen, the party waits Kirs Starmer's speech, 0:16:57.920 --> 0:17:00.440 in which he's expected to say that what is broken 0:17:00.560 --> 0:17:04.479 can be repaired, what is ruined can be rebuilt. So 0:17:04.560 --> 0:17:08.840 the former Bank of England economist Rachel Reeves described the 0:17:08.880 --> 0:17:12.679 mini budget last year from the Conservatives as devastation and 0:17:12.880 --> 0:17:16.200 voters trust in the toy's handling of the economy has 0:17:16.280 --> 0:17:19.600 more than half since March twenty twenty, according to a 0:17:19.680 --> 0:17:24.480 Yugov poll. So Addressing a packed hall, Reeves talked about 0:17:24.520 --> 0:17:28.600 boosting investment, increasing house building by easing the planning rules, 0:17:28.960 --> 0:17:34.639 scrapping non dom tax breaks, rebuilding infrastructure, including the electricity grid, 0:17:34.800 --> 0:17:39.480 all to spur desperately needed economic growth in the UK. 0:17:39.840 --> 0:17:42.960 The reception that she got from investors in business was 0:17:43.080 --> 0:17:46.560 positive and it is really notable that they are here 0:17:46.560 --> 0:17:50.440 in Liverpool in numbers not seen previously and that they 0:17:50.440 --> 0:17:54.520 are listening so attentively. So here is the Shadow Chancellor, 0:17:54.800 --> 0:17:55.600 Rachel Reeves. 0:17:56.080 --> 0:17:57.760 In the two and a half years that I've been 0:17:57.920 --> 0:18:01.199 Shadow Chancellor of the Exchequer reached out to business and 0:18:01.240 --> 0:18:02.960 I think you can see that in the speech that 0:18:03.000 --> 0:18:06.720 I delivered today where I set out that the lifeblood 0:18:06.760 --> 0:18:11.520 of any successful economy is private business investment. And the 0:18:12.440 --> 0:18:15.000 plans that I set out, whether that is a form 0:18:15.000 --> 0:18:19.000 of the planning system, the stability that we need to 0:18:19.080 --> 0:18:23.000 underpin and provide the foundation of a successful economy, are 0:18:23.040 --> 0:18:27.440 all ideas that have been generated in conjunction with business, 0:18:27.800 --> 0:18:30.679 because we do need to get Britain building, and that 0:18:30.760 --> 0:18:34.120 means giving business the confidence to invest, but also giving 0:18:34.119 --> 0:18:36.520 them a reason to invest here in Britain. And that's 0:18:36.520 --> 0:18:37.960 why I hope I did it conference today. 0:18:38.240 --> 0:18:40.840 Lots of them are non doms, and if you abolish 0:18:40.920 --> 0:18:43.720 the non dom regime but it doesn't raise as much 0:18:43.760 --> 0:18:46.200 money as you expect, are you still going to stick 0:18:46.240 --> 0:18:47.760 by it on ideological grounds. 0:18:47.840 --> 0:18:51.679 We've got a loophole in our tax system whereby you 0:18:51.680 --> 0:18:55.080 can live in Britain and Major Britain your home, but 0:18:55.280 --> 0:18:58.280 because your father was born somewhere else, you can pay 0:18:58.359 --> 0:19:01.359 tax in a different jurisdiction. There's outdated and it's not 0:19:01.480 --> 0:19:03.920 right and Labor will abolish it and we will use 0:19:03.920 --> 0:19:06.479 that money to put into our national health service and 0:19:06.520 --> 0:19:10.160 for breakfast clubs are all primary schools. But we've worked 0:19:10.160 --> 0:19:15.359 closely with businesses and investors to make sure that we 0:19:15.440 --> 0:19:18.879 do not deter foreign investment. We're determined to get that 0:19:18.920 --> 0:19:22.560 investment here in Britain, but that tax loophole will end 0:19:22.600 --> 0:19:23.399 with a Labor government. 0:19:23.600 --> 0:19:25.800 And you're a former Bank of England economist, you know 0:19:25.840 --> 0:19:30.080 the law of unintended consequences. If the money isn't raised 0:19:30.080 --> 0:19:32.840 as you expect, would you revive the measure under a 0:19:32.840 --> 0:19:33.360 different name. 0:19:33.480 --> 0:19:37.040 Well, if you look at what Gordon Brown died with 0:19:37.359 --> 0:19:40.639 George Osborne's reforms for non don's a lot of people 0:19:40.680 --> 0:19:43.600 said it won't raise the money, people will go and 0:19:43.640 --> 0:19:47.240 live elsewhere. That didn't happen. And what did happen was 0:19:47.240 --> 0:19:50.200 the tax review came in and we've got public services 0:19:50.200 --> 0:19:52.439 in Britain today that are on their knees. We've got 0:19:52.440 --> 0:19:55.760 seven point seven million people on hospital waiting this. We 0:19:55.840 --> 0:19:58.600 can't go on like this and that's why we are 0:19:58.640 --> 0:20:02.840 taking this straightforward measure bringing us into line with countries 0:20:02.880 --> 0:20:06.160 around the world that don't have these loopholes, and ensuring 0:20:06.400 --> 0:20:08.359 that if you make Britain your home, you pay your 0:20:08.400 --> 0:20:10.840 taxes here, and putting that money where it belongs in 0:20:10.880 --> 0:20:12.040 our national health service. 0:20:12.320 --> 0:20:15.480 So you promise you'll be cautious about borrowing to invest, 0:20:15.600 --> 0:20:18.400 But we've got debt at ninety nine percent of GDP already, 0:20:18.480 --> 0:20:21.439 yields are high. The reality is we just don't know 0:20:21.440 --> 0:20:23.680 how the market's going to react to borrowing even more. 0:20:23.720 --> 0:20:27.439 Idea, Well, I set out the fiscal rules that I 0:20:27.440 --> 0:20:30.479 would stick to with iron discipline, and I got support 0:20:30.480 --> 0:20:33.280 from conference again in setting out those rules where won't 0:20:33.320 --> 0:20:35.680 borrow to fun day to day spending. We'll bring debt 0:20:35.760 --> 0:20:38.240 down as the share of our economy, and then only 0:20:38.320 --> 0:20:41.080 subject to that, we will invest in the things that 0:20:41.160 --> 0:20:45.000 can boost our productivity, working in conjunction with business to 0:20:45.119 --> 0:20:49.159 unlock further private sector investment. So today, for example, I 0:20:49.200 --> 0:20:52.040 set out how a new National Wealth Fund you will 0:20:52.040 --> 0:20:55.520 be targeted for every pound that we invest that it 0:20:55.640 --> 0:20:59.600 unlocks three pounds of private sector investment. That is partnership 0:20:59.680 --> 0:21:03.600 between government and business in action you're seeing around the world. 0:21:03.720 --> 0:21:07.040 It is unlocking investment around the world. I want those jobs. 0:21:07.040 --> 0:21:10.360 I want that investment in Britain and with labor we. 0:21:10.359 --> 0:21:13.440 Will and shout out, Chancellor, none of your colleagues will 0:21:13.440 --> 0:21:16.880 tell me how fast after the general election you plan 0:21:17.000 --> 0:21:19.560 to have the fastest growth in the G seven. Isn't 0:21:19.560 --> 0:21:21.920 that a meaningless mission without a time frame. 0:21:22.080 --> 0:21:24.359 In the next parliament. We want to achieve that mission 0:21:24.440 --> 0:21:26.800 of having the highest sustained growth in the G seven, 0:21:27.119 --> 0:21:30.360 with good jobs and productivity in all parts of the country, 0:21:30.359 --> 0:21:33.280 making everyone not just a few better off. And today 0:21:33.320 --> 0:21:36.360 at conference and tomorrow in Keir Starmer's speech, we will 0:21:36.359 --> 0:21:39.040 set out we have set out today exactly how we're 0:21:39.040 --> 0:21:39.720 going to achieve that. 0:21:41.280 --> 0:21:43.960 This is Bloomberg Daybreak Europe, your morning brief on the 0:21:44.000 --> 0:21:47.080 stories making news from London to Wall Street and beyond. 0:21:47.200 --> 0:21:50.000 Look for us on your podcast feed every morning, on Apple, 0:21:50.080 --> 0:21:53.000 Spotify and anywhere you get your podcasts. You can also 0:21:53.000 --> 0:21:56.440