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Speaker 1: This is Bloomberg Daybakuru for this Thursday, the eighteenth of

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Speaker 1: May in London. Coming up today.

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Speaker 2: Speaking with one voice, Sunak says he's fully aligned with

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Speaker 2: the US on Beijing as the UK considers China investment.

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Speaker 1: Curbs, skirting catastrophe. Biden says he's confident a deal can

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Speaker 1: be done to avoid a default paying out.

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Speaker 2: Deutsche Bank agrees to settle with Epstein victims for seventy

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Speaker 2: five million dollars.

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Speaker 3: Starmer says he would read visit the Brexit deal, Automaker's

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Speaker 3: call for EU trade talks and purple brick cells itself

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Speaker 3: for one pound. Those are the stories we're looking at

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Speaker 3: in today's papers. And I'm Leanne Gerrins.

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Speaker 1: Plus Unfriended Meta faces a record eight hundred million dollar

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Speaker 1: EU privacy file.

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Speaker 4: That's all straight ahead on Bloomberg Daybreak Europe. The business

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Speaker 4: news you need to start your day in just one

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Speaker 4: fifteen minute podcast on Apple, Spotify, the Bloomberg Business App

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Speaker 4: and everywhere you get your podcasts.

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Speaker 2: Good morning, I'm Caroline Hipke and I'm Lizzie Burden. Here

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Speaker 2: are the stories we're following today. Prime Minister Rishi Sunak

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Speaker 2: says he's considering stricter export controls and curbs on investment

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Speaker 2: by British firms in China.

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Speaker 5: Samuel Ettien reports.

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Speaker 6: As G seven leaders gather in Japan, the US has

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Speaker 6: been lobbying of a nations to stem outward investment to China.

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Speaker 6: On curbing British money in the country, Rishi Sunak says

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Speaker 6: absolutely that will be something we'll be talking about, but

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Speaker 6: the UK leader added he did not expect specific restrictions

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Speaker 6: to come from the summit in London. Samuel Etti and

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Speaker 6: Bloomberg daybreak Europe.

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Speaker 1: Now getting a debt limit deal done this week is doable,

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Speaker 1: according to the US House Speaker Kevin McCarthy. His comments

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Speaker 1: echo those of President Biden, who says that he also

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Speaker 1: believes an agreement can be reached.

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Speaker 4: I can't fident dead we'll get the agreement on the budget.

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Speaker 4: Miracle will not default, and every leader in the room

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Speaker 4: which turns the consequences we failed up payer bills and

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Speaker 4: it would be catastrophic for the for American econmate.

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Speaker 1: On Tuesday, Biden and congressional leaders agreed to a new

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Speaker 1: narrower round of staff level talks. Both sides say that

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Speaker 1: the framework increases the prospect of reaching a partisan deal

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Speaker 1: to avoid an unprecedented US default.

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Speaker 2: Deutsche Bank has agreed to pay seventy five million dollars

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Speaker 2: to settle a lawsuit from victims of Jeffrey Epstein's sexual abuse.

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Speaker 2: The suit accuses the German banker facilitating Epstein's sex traffic operation.

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Speaker 2: JP Morgan is still fighting the suit against it, one

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Speaker 2: of three involving lenders to Epstein. Deutsche Bank hasn't admitted

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Speaker 2: to any wrongdoing and says it has bolstered its controls.

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Speaker 1: Bluemberger has learned that Meta Platforms is to be handed

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Speaker 1: a record privacy find by the European Union. The figure

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Speaker 1: eclipses the near seven hundred and fifty million euro penalty

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Speaker 1: imposed on Amazon. Speaking to us in April, Ireland's Data

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Speaker 1: Commissioner Helen Dixon, who oversees ease EU compliance for most

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Speaker 1: Silicon Valley firms, told us that they aren't afraid to

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Speaker 1: take action.

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Speaker 7: We are a match for the richest companies in the world,

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Speaker 7: and we've demonstrated that through key cases that have already

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Speaker 7: been concluded and through litigation that has already happened. Of course,

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Speaker 7: it's a never ending battle and the scale is vast.

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Speaker 1: Ireland's Data Protection Commissioner will punish the owner of Facebook

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Speaker 1: and Instagram for failing to protect users' data from the

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Speaker 1: prying eyes of US security services.

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Speaker 2: The European Union is moving closer to finalizing a memorandum

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Speaker 2: with the United Kingdom on financial regulation. The EU's Executive

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Speaker 2: Arm has adopted a long delayed draft agreement on how

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Speaker 2: financial regulators communicate post Brexit. If the agreement wins approval

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Speaker 2: from EU member states and is finalized by the European Commission,

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Speaker 2: it would be a massive boost for London. The capital

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Speaker 2: has made little progress since leaving the block in securing

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Speaker 2: agreements for how its lucrative financial sector will interact with

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Speaker 2: its lone just trading partner. And there are top stories

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Speaker 2: this morning.

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Speaker 1: Yeah, we'll be going live to Hiroshima and Japan in

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Speaker 1: just a moment to speak to our correspondent there. But

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Speaker 1: I first want to just mention the issue around commercial

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Speaker 1: real estate. We've been worried that this might be the

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Speaker 1: quarter when things would start to move, and there are

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Speaker 1: a number of stories on Bloomberg this morning that I

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Speaker 1: think point to that and underline it. So Jack Siders

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Speaker 1: has been writing about the European property market. The woes

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Speaker 1: beginning to roll in Vienna becoming the weakest housing market

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Speaker 1: amongst major European capitals, posting a twelve point two percent drop. Also,

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Speaker 1: this comes as US commercial property. There was data apped

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Speaker 1: yesterday and that is at the weakest level since twenty

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Speaker 1: and eleven. So there are quite a few issues commercial

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Speaker 1: and also kind of domestic property.

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Speaker 2: Yeah, and more bad news for commercial landlords from Deutsche Bank.

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Speaker 2: It's looking to cut forty percent to Frankfurt offices on

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Speaker 2: remote work. Basically it's cutting off a space to save

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Speaker 2: more because two thirds of staff have registered to work

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Speaker 2: from home up to three days a week. I was

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Speaker 2: at the British Chambers of Commerce conference yes date listening

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Speaker 2: to the UK Chancellor Jeremy Hunt and actually Caroline he

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Speaker 2: reckons the default is going to be that people come

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Speaker 2: to the office and then they have to have a

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Speaker 2: good reason to work from home so they don't miss

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Speaker 2: out on the old water cooler moments.

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Speaker 8: Yeah.

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Speaker 1: Absolutely, I'm kind of struck that it is a slow

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Speaker 1: burned story, isn't it worked from home versus being in

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Speaker 1: the office. But it's certainly an ongoing one. Okay, let's

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Speaker 1: turn our attention then to leaders of the Group of Seven,

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Speaker 1: the US, Japan, Germany, France, the UK, of course, Italy

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Speaker 1: and Canada if you want the list. They meet in Hiroshima,

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Speaker 1: Japanese Prime minister from Yo Kishida's hometown, with shared challenges

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Speaker 1: from Russia, from China and inflation and the cost of

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Speaker 1: living too. So in terms of the discussion points, let's

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Speaker 1: go live to Japan and our reporter Kareemi Maury, Good morning, Kareemi,

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Speaker 1: thank you so much for joining us.

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Speaker 5: Purity.

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Speaker 1: Good morning. Security and the threat of nuclear weapons is

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Speaker 1: perhaps the biggest overhang, the biggest worry surely for this

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Speaker 1: G seven gathering.

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Speaker 8: Oh absolutely yeah. The renewed threats to really use nuclear

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Speaker 8: bombs zooming over the summit. The Japanese Prime Minister for Miyokishida,

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Speaker 8: this is his hometown, Hidoshima. This is obviously the site

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Speaker 8: of the world's first atomic bomb, and so for him,

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Speaker 8: one of his main goals of his administration is to

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Speaker 8: really push world leaders to create a path towards abolishing

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Speaker 8: nuclear weapons. Now had a time when nuclear security in

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Speaker 8: this area is threatened by the likes of China, North

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Speaker 8: Korea and Russia. It's a pretty harsh reality that maybe

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Speaker 8: that ambition may not be such an easy path going forward. Again,

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Speaker 8: we have world leaders gathered here today, but they're going

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Speaker 8: to be thinking about how to deal with President Ladimir Plutin,

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Speaker 8: who of course threatened to only the first atomic attack

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Speaker 8: on European soil as part of his war on Ukraine.

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Speaker 8: So this is one of the biggest agenda items for

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Speaker 8: the world leaders gathered here in Hiroshima.

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Speaker 2: And yet at the same time the summit is kind

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Speaker 2: of competing for attention when you've got domestic issues in

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Speaker 2: the various member countries. You've got the debt ceiling in

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Speaker 2: the US, you know, France and Italy having this spotch

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Speaker 2: she expected to deliver a keynote speech at a two

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Speaker 2: day China Central Asia summit at the same time. How

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Speaker 2: does the G seven maintain its position at this point?

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Speaker 8: Absolutely, I mean, so much is going on at the

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Speaker 8: moment that timing is really interesting again also for China,

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Speaker 8: with their own summit happening at the same time, at

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Speaker 8: a time when G seven members are going to be

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Speaker 8: discussing and figuring out how to deal with China's you know,

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Speaker 8: expansion in terms of the military, they are going to

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Speaker 8: be in China meeting with the other members who are

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Speaker 8: mostly non Western countries to kind of counter the G

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Speaker 8: seven in a way. And so the G seven has

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Speaker 8: happened at the same time China is holding its own

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Speaker 8: summit as part of the Belt and Road initiative connecting

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Speaker 8: China and Europe. They're trying to invest, you know, in

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Speaker 8: more pipelines other projects in Central Asia to secure that

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Speaker 8: stable supply of natural resources. So all of these countries

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Speaker 8: that are involved in the summit in China have been

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Speaker 8: keeping some distance actually from the West, from the US

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Speaker 8: and European kind of style of democracy. So of course

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Speaker 8: the timing very interesting that it is happening at the

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Speaker 8: same time as this G seven summit in Hyoshima.

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Speaker 1: Kareemy, thank you so much for being with us this morning.

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Speaker 1: Kareemimur is lifeless in Hushima in Japan. Oh, thanks to

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Speaker 1: her for being with us. And it is a hugely

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Speaker 1: important moment, isn't it for that G seven of course.

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Speaker 1: Coming up next on the program, Starmer says that he

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Speaker 1: would revisit the UK's Brexit deal. Automakers call for EU

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Speaker 1: trade talks and Purple Bricks sells itself four a pound.

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Speaker 4: Now the paper review on blue Bird Daybreak Europe. The

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Speaker 4: news you need to know from today's papers.

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Speaker 2: Well for a look at the front pages today, we've

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Speaker 2: got Leon Gerrin to take us through Leon the Times.

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Speaker 2: How's the headline? Kirs Starmer says he would revisit Brexit

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Speaker 2: deal to boost economy.

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Speaker 3: Tell us more, Yes, exactly, Lizzie, Good morning to you.

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Speaker 3: So Keir Starmer says exactly that he wants to renegotiate

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Speaker 3: the Brexit trade deal and that's of course, if this

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Speaker 3: party does get into power. The Labor leader says a

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Speaker 3: new deal could bring more opportunities, especially for businesses.

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Speaker 5: And you mentioned that you were at the British.

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Speaker 3: Chambers of Commerce yesterday listening to that, Lizzie.

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Speaker 5: And he did tell business leaders that Labor.

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Speaker 3: Would fix the weakness in the current trade agreement to

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Speaker 3: give UK firms greater access to the European market. However,

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Speaker 3: he did insist that this could be done without the

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Speaker 3: UK rejoining either the European Single Market or the Customs Union. Now,

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Speaker 3: Rishie soon acts deal with the EU over the future

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Speaker 3: of Northern Ireland. That not that long ago. We can

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Speaker 3: all remember the Windsor Framework was actually backed by Labor

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Speaker 3: and Keirths. Stamer says, in a way this will increase

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Speaker 3: the scope for cooperation between London and Brussels if Labor

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Speaker 3: gets some power, because there's a much warmer relationship now.

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Speaker 3: He was speaking after Global carmakers called on the UK

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Speaker 3: government to renegotiate the Brexit deal, saying there could be

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Speaker 3: job losses if the current rules in place don't change.

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Speaker 7: Yeah.

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Speaker 1: I think it's very interesting as we count down or

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Speaker 1: eighteen months the next general election. The fact that Labour

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Speaker 1: are revealing and unveiling at this point, you know, what

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Speaker 1: seemed to be quite major policies is sort of interesting

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Speaker 1: in terms of timing, and.

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Speaker 2: Yet they don't want to give too much away in

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Speaker 2: case the Tories steal their clothes.

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Speaker 1: No, absolutely, Leanne That leads us then into the next doory.

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Speaker 1: The Guardian, Ford Vauxhall owner and JLR call for the

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Speaker 1: UK to renegotiate that Brexit deal. So you know, this

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Speaker 1: following on the UK's car industry has to be said

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Speaker 1: was a major achievement by Margaret Thatcher kind of opening

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Speaker 1: up that business. So very interesting that that companies now

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Speaker 1: have been saying what they want.

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Speaker 5: To get and Caroline you couldn't be more right.

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Speaker 3: So yesterday, ahead of Starmer's speech, Stilantis, which owns Vauxhall

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Speaker 3: in Fiat, said producing vehicles in Britain was just becoming

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Speaker 3: so much harder. Ford and Jaguar Landrover have now joined

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Speaker 3: Stillantis really echoing those concerns, and they warning the transition

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Speaker 3: to electric vehicles will be knocked off course unless the

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Speaker 3: UK and EU delay stricter rules of origin. Now these

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Speaker 3: are due to kick in next year and what could

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Speaker 3: happen is they could add tariffs on car exports. There

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Speaker 3: is a big concern it will just become so expensive

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Speaker 3: for them to get their cars out of the country.

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Speaker 3: So post Brexit rules as they stand right now require

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Speaker 3: forty percent of an electric vehicle's parts to be sourced

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Speaker 3: here in the UK or in the EU if it's

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Speaker 3: to be sold on the other side of the channel

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Speaker 3: without a.

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Speaker 5: Ten percent tariff.

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Speaker 3: Now that is due to go up to forty five

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Speaker 3: percent next year, such a massive jump. This is massively

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Speaker 3: concerning these car companies. Now most electric vehicle batteries, we

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Speaker 3: have to admit are still imported from Asia, with batteries

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Speaker 3: making up a large part of cost of building an

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Speaker 3: electric car.

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Speaker 5: And this is something else that I just wanted to.

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Speaker 3: Draw your attention to British Vault, Caroline about them before

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Speaker 3: they collapsed.

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Speaker 5: They were seen as a big.

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Speaker 3: Battery maker here in the UK, something we desperately need

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Speaker 3: if we're moving into the ev market. And the co

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Speaker 3: founder of British Vault has actually given an exclusive interview

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Speaker 3: to Sky News saying Britain's missed its opportunity to build

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Speaker 3: a battery industry after the failure of British Vault, and

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Speaker 3: this is why we're so reliant on Asia.

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Speaker 2: And finally on the ft has the headline Purple Bricks

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Speaker 2: sells itself for a pound as a plan to upend

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Speaker 2: estate agents falls flat.

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Speaker 5: Yes, absolutely, Lizzie.

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Speaker 3: I always feel like the adverts for Purple Bricks are

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Speaker 3: stuck in my head constantly.

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Speaker 5: They really catchy.

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Speaker 3: But listen the trouble online a state agent Purple Bricks

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Speaker 3: has agreed a deal to sell its business and assets.

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Speaker 3: Now that's to the rival strike and it's for a

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Speaker 3: whole token sum of a pound. Now the UK firm,

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Speaker 3: which was once valued at more than one billion dollars,

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Speaker 3: actually put itself up for sale in February. I've been

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Speaker 3: speaking to some of the people's on some of the

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Speaker 3: people we have here on our equities team, and they

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Speaker 3: said it was a UK distributor Darling back in the day,

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Speaker 3: and that's when you know, we saw it launch on

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Speaker 3: London's junior alternative investment market back in twenty fifteen. But

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Speaker 3: it said the deal will lead to job losses. So

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Speaker 3: this deal it's made. It had a whole restructuring plan

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Speaker 3: to make things better and it just didn't happen. It

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Speaker 3: just didn't work. Now the business assets and most of

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Speaker 3: its liabilities will now change hands, while the Purple Bricks

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Speaker 3: will retain up to five point five million pounds and

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Speaker 3: cashes as really to return to their shareholders.

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Speaker 5: We'll definitely see that coming in.

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Speaker 3: But I think is strike the rival just really buying

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Speaker 3: up Purple Bricks for its clients and listings. Now this

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Speaker 3: is where the concern comes in when it comes to

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Speaker 3: massive job losses across that business.

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Speaker 1: Yeah, they've got more than seven hundred and fifty according

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Speaker 1: to the reports. I'm just staggered that Purple Bricks had

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Speaker 1: such a high valuation. It hadn't realized that, you know,

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Speaker 1: this kind of internet Darling was considered to be worth

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Speaker 1: so much I even have read that valuations were as

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Speaker 1: high as one point four billion, which is a huge,

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Speaker 1: huge sum and now lots of restructuring and a sell

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Speaker 1: off for Purple Bricks. Thank you so much for the

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Speaker 1: newspaper round up. Good to have that, Lean gerens with

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Speaker 1: all of those newspapers of interest this morning, right, let's

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Speaker 1: give you a global news round up and update of

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Speaker 1: our top stories. A deal allowing Ukraine to export crops

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Speaker 1: from key ports via the Black Sea will be extended

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Speaker 1: by two months. The agreement keeps open a major trade

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Speaker 1: route amid Russia's war in Ukraine and bolster's global food supplies. Meanwhile,

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Speaker 1: loud explosions were heard in Kiev early this morning. The

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Speaker 1: scope of the attack is unclear. Ukrainian air defenses, bolstered

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Speaker 1: by sophisticated Western supplied systems thwarted and intense Russian air

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Speaker 1: attack on the capitol just earlier this week. A panel

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Speaker 1: task with overseeing the credit fault swaps market says that

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Speaker 1: the write down of credit Suees Group eighty one notes

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Speaker 1: will not trigger and insurance payout. The Credit Derivatives Determinations Committee,

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Speaker 1: which reached a faster than expected decision, took the view

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Speaker 1: that the additional Tier one securities were junior to the

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Speaker 1: subordinated bonds underlying swaps. And just lastly, Micron is poised

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Speaker 1: to land about one and a half billion dollars in

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Speaker 1: financial incentives from the Japanese government to help it make

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Speaker 1: next generation memory chips in the country. Sources tell Bloomberg

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Speaker 1: the US firm will make DRAM chips at its facility

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Speaker 1: in Hiroshima using advanced tech from ASML. Those are the

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Speaker 1: global news stories twenty four hours a day pab on

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Speaker 1: more than twenty seven hundred journalist and alis in over

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Speaker 1: one hundred and twenty countries that you need to know

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Speaker 1: about this morning.

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

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

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Speaker 1: And look for us on your podcast feed every morning

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Speaker 1: on Apple, Spotify and anywhere else you get your podcasts.

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

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

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Speaker 1: Our flagship New York station is also available on your

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Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

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Speaker 1: I'm Caroline Hepka.

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Speaker 2: And I'm Lizzie Burden join us again tomorrow morning for

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

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Speaker 2: here on Bloomberg Daybreak.

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Speaker 5: Europe