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

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Speaker 2: This is the Bloomberg Daybreak Europ podcast, available every morning

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Speaker 2: on Apple, Spotify or wherever you listen. It's Thursday, the

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Speaker 2: twenty eighth of November in London. I'm Stephen Carroll coming

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Speaker 2: up today. Concern over France's political and financial outlook fuel

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Speaker 2: growing investor fears. Research shows black graduates are twice as

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Speaker 2: likely to be denied top jobs in the UK. Plus

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Speaker 2: preparing for a new Cold War, the Nordics and Baltics

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Speaker 2: lead the way in showing Europe how to get ready

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Speaker 2: for a more dangerous world. Let's start with a roundup

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Speaker 2: of our top stories. French stocks and bonds of faced

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Speaker 2: turmoil over fears of a crisis facing the government. Bank

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Speaker 2: stocks tumbled in Paris yesterday, with BNP Parabas sliding as

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Speaker 2: much as three percent, associated General finishing down the day

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Speaker 2: three and a half percent. The moves come as the

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Speaker 2: French government faces a potential no confidence vote over the budget,

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Speaker 2: which could out primeis Michel Baugnier. Within weeks's Mark Cudmore

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Speaker 2: says things are only set to get worse.

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Speaker 3: The longer term story has been there. We knew about

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Speaker 3: this weeks ago. We knew about it even going into

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Speaker 3: the US election. We now know going up to the budget,

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Speaker 3: which is likely to come to a head in December,

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Speaker 3: that it's going to get much more tense for France.

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Speaker 3: The backdrop here is the Eurozone has suffered two years

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Speaker 3: of stagnant, sluggish growth and it looks like next year

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Speaker 3: will be equally bad. So this is in a multi

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Speaker 3: year kind of semi kind of slump, lack of growth.

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Speaker 2: Our market slave executive elger Mark Cudmore there speaking on

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Speaker 2: Bloomberg Television. The political uncertainties also affecting the country's bonds,

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Speaker 2: the spread between French and German ten year yelds widening

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Speaker 2: to the most sins twenty twelve. The government faces another

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Speaker 2: hurdle today when left wing parties have called the vote

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Speaker 2: in the National Assembly to repeal major reforms to the

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Speaker 2: pension system which were passed last year. The United States

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Speaker 2: is weighing additional curbs on sales of semiconductor equipment and

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Speaker 2: AI memory chips to China. The latest restrictions, which may

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Speaker 2: be unveiled as soon as next week, would stop short

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Speaker 2: of earlier proposals and effect fewer Huawei suppliers here's Bloomberg's

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Speaker 2: w WU.

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Speaker 4: We are seeing that biodministration is way additional measures to

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Speaker 4: finance access to equipment and then AI memory chips.

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Speaker 1: But at the same time, Previously we.

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Speaker 5: Reported that there's going to be a six supplier cell sanction,

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Speaker 5: but now what it looks like the Biden mustation is

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Speaker 5: only through section two.

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Speaker 2: That's Bloomberg's w WU, who says the measures followed months

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Speaker 2: of deliberations by US officials and negotiations with allies in

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Speaker 2: Japan and the Netherlands. The Biden administration has also faced

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Speaker 2: intense lobbying by American chip equipment makers, who've warned that

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Speaker 2: tougher measures would hurt businesses. The fed's preferred measure of

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Speaker 2: underlying inflation accelerated slightly in.

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Speaker 1: October compared to a year ago.

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Speaker 2: It's the latest sign that the US inflation steady decline

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Speaker 2: has stalled, and helps to explain policymakers more cautious approach

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Speaker 2: to lowering rates. Here is Bloomberg's International Economics and Policy

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Speaker 2: correspondent Michael McKee with the number.

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Speaker 4: It is exactly what econdom has thought it would be.

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Speaker 4: Two tens rise in the headline PCE for the month

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Speaker 4: of October, and that puts US at two point three

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Speaker 4: four year over year and a three tenths rise in

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Speaker 4: the core two point eight percent year over year, and

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Speaker 4: both of those are increases over where.

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Speaker 1: We Werenberg's Mike McKee.

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Speaker 2: The Core Personal Consumption Expenditures Price Index or PCE script

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Speaker 2: strips out volatile food and energy items. The index rose

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Speaker 2: by zero point three percent from a month earlier. Donald

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Speaker 2: Trump's pick for Commerce Secretary, Howard Lutnik, is among a

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Speaker 2: number of the president Alex political nominees who've been targeted

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Speaker 2: with bomb threats and hoax phone calls. The president Elex

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Speaker 2: Transition team said that several cabinet picks and appointees faced

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Speaker 2: quote violent Unamerican threats to their lives and those who

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Speaker 2: live with them. Some of the attacks are said to

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Speaker 2: have involved a practice known as swatting, a form of

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Speaker 2: harassment in which a caller falsely reports a dangerous incident

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Speaker 2: to law enforcement in hopes of provoking an armed police response.

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Speaker 2: The FBI says it's investigating the incidents. The UK's pharmaceutical, medical,

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Speaker 2: and transport equipment industries will be among the most exposed

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Speaker 2: to any new tariffs, which might be imposed by Donald

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Speaker 2: Trump's administration. That's according to un data analyzed by McKinsey's

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Speaker 2: Global Institute, which shows the US is the top export

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Speaker 2: destination for nine UK sectors. That's greater than the exposure

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Speaker 2: for similar industries in France and Germany. Trade between America

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Speaker 2: and Britain is worth an excess of three hundred billion

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Speaker 2: pounds in the year through March. Almost two thirds of

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Speaker 2: that comes from services, though, which are not expected to

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Speaker 2: be hit by tariffs, and black applicants are twice as

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Speaker 2: likely to be denied top jobs in the UK after

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Speaker 2: finishing university. That's according to new research from consultancy Bane

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Speaker 2: in partnership with the Black Talent Charter Bloomberg.

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Speaker 1: Tia at Abio has more.

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Speaker 5: Black graduates apply for more roles in finance, law and

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Speaker 5: professional services, but are half as likely to receive an offer,

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Speaker 5: and a new survey shows that rejection rates for those

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Speaker 5: applying from outside the country's leading universities are even higher.

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Speaker 5: That's a factor that does not apply to non black applicants,

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Speaker 5: according to the analysis. The findings come after Bloomberg reported

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Speaker 5: that city firms are pulling back on diversity efforts. More broadly,

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Speaker 5: Natasha Ferguson, COO of Diversity Charity the Taylor Bennett Foundation

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Speaker 5: says conditions that some firms prevent progression for ethnic minorities.

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Speaker 6: The culture attracts young talent in, but the culture pushes

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Speaker 6: middle talent out. Middle management is where you see the

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Speaker 6: most concentration of diverse talent at the moment across all sectors.

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Speaker 5: That was Natasha Ferguson from the Taylor Bennett Foundation. When

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Speaker 5: it comes to graduates, the research puts the disparity down

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Speaker 5: to recruitment barriers including socioeconomic factors and a lack of

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Speaker 5: knowledge about the corporate world. In London, Teawa at a

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Speaker 5: Bayo Bloomberg Radio.

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Speaker 2: Your top stories on the markets on Wall Street Yesterday,

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Speaker 2: the SMP five hundred pulled back from all time highs,

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Speaker 2: finishing down zero point four percent, led by weakness and

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Speaker 2: big tech names that ASDAK fell by nine tenths of

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Speaker 2: one percent. There were no surprises in the US data

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Speaker 2: out yesterday. The PCE Price Index data met expectations, the

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Speaker 2: tenure yield rallying four basis points. The Bloomberg Dollar Spot

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Speaker 2: Index softened by zero point seven percent. The standout performer

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Speaker 2: yesterday was the Japanese yen, which strengthened by one point

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Speaker 2: three percent. It's a touchweaker this morning, treading at one

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Speaker 2: hundred and fifty one forty seven.

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Speaker 1: In Asia today we are.

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Speaker 2: Looking at the Hang Seng down by one point two

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Speaker 2: percent amid reports the US is considering fresh sanctions to

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Speaker 2: curtail Beijing's access to crucial semiconductors. Chinese shares more broadly

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Speaker 2: being affected too. In a moment, we'll bring you the

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Speaker 2: latest on the political and market turmoil in France. Plus

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Speaker 2: we have a special report on how Nordic and Baltic

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Speaker 2: nations are preparing for a possible new Cold War. But

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Speaker 2: in the story that caught our eye this morning, Beth

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Speaker 2: Cod from Bloomberg Opinion has been writing about the latest

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Speaker 2: advice from Warren Buffett, not for investing, but for life.

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Speaker 1: So earlier this year.

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Speaker 2: The Oracle of Omaha published a letter which included his

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Speaker 2: insight on how to leave behind a strong family and

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Speaker 2: a lasting legacy. He talked about donating more than a

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Speaker 2: billion dollars in Berkshire Hathaway Shares to four family foundations.

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Speaker 2: That's a continuation of his commitment to give away the

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Speaker 2: vast majority of his wealth to charity rather than pass

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Speaker 2: it on to his family. But as always, as Beth

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Speaker 2: points out, there's quite a lot of wisdom contained in

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Speaker 2: these sorts of announcements from Warren Buffett. Among the advice,

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Speaker 2: as distilled by Beth in her article, don't create dynasties.

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Speaker 2: Don't leave basically so much money to your children that

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Speaker 2: they don't have to do anything. Instead, give them something

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Speaker 2: to be able to do something with their money, to

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Speaker 2: acknowledge the good fortune, be transparent about their plans for

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Speaker 2: the future. He suggests having conversations about what's in a

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Speaker 2: will before someone passes away, and live below your means now.

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Speaker 2: Warren Buffett is someone that still lives in the same

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Speaker 2: house and Omai bought in nineteen fifty eight, and he

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Speaker 2: refers to his savings as he's accumulated over his life

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Speaker 2: as units of deferred consumption. This is of course speaking

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Speaker 2: to his philosophy around compounding and the importance of it.

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Speaker 2: And finally, he says, to tell your kids you're proud

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Speaker 2: of them. So you can read more on Beth coh

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Speaker 2: It's piece at Bloomberg dot com, Ford slash Opinion, Let's

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Speaker 2: go to France next, and more on the political instability,

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Speaker 2: their markets continuing to fret over whether the government will

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Speaker 2: be able to pass its budget for next year. This

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Speaker 2: is the National Assembly will vote later on a proposal

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Speaker 2: to reverse changes to the country's pension system, which is

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Speaker 2: one of the major reforms passed under Emmanuel Macron last year.

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Speaker 2: Our Power supporter Carolyne Conan joins us for more this morning. Caroline,

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Speaker 2: how likely does it look at this stage that this

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Speaker 2: government will fall over the budget?

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Speaker 7: It's actually pretty likely. The risk is pretty high. You've

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Speaker 7: seen in the markets over the past couple of days

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Speaker 7: the spread between the French and German Tenia raises raising

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Speaker 7: to the highest since twenty twelve. So clearly there's a

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Speaker 7: lot of anxiety on the market that these governs and

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Speaker 7: she's going to collapse, if not next week, perhaps the

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Speaker 7: week before Christmas. And today we're actually going to have

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Speaker 7: this interesting possible vote on the repeal of the pension reform,

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Speaker 7: and it's going to be a test if there is

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Speaker 7: a vote, because the National Vary of Mine in Japan

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Speaker 7: might join forces with the left wing, which could obviously

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Speaker 7: be something that we would see if there is no

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Speaker 7: confidence vote over the next few days. So clearly, my

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Speaker 7: con supporters are very anxious, like they've put one thousand

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Speaker 7: amendments for example today on this vote on the pension reform.

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Speaker 7: And Lupenn has been arguing over the past few days

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Speaker 7: that clearly the no conference vote is on the table

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Speaker 7: if she doesn't get her way on the budget, if

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Speaker 7: she doesn't get her red lines go through in the

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Speaker 7: negotiation process.

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Speaker 2: Is there any sense that those negotiations will yield?

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Speaker 1: And I thing for marrying Japan. What are the key

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Speaker 1: things that she wants included in the budgets?

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Speaker 7: So there are a few things, for example, pensions indexation

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Speaker 7: on inflation. You know, this is something that Michelle Barnie

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Speaker 7: wanted to delay until the middle of next year. She

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Speaker 7: doesn't really agree with the new proposal of having like

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Speaker 7: some of it in January, some of it middle of

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Speaker 7: next year, because really she doesn't want pensioners to have

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Speaker 7: less money in their pockets, especially those law income pensioners.

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Speaker 7: Then the second thing she said was the redline our

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Speaker 7: prices on electricity. She doesn't want to raise any taxes

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Speaker 7: on electricity. Also on medicine prices. One of the things

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Speaker 7: that the Banny government proposed in this budget is to

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Speaker 7: raise the prices on medicine or perhaps lower the amount

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Speaker 7: that you get back from the social security when you

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Speaker 7: buy some medicine. She is totally against, and she also

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Speaker 7: says that we should instead spending on immigration and cut

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Speaker 7: spending on some of the administration make the government more efficient.

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Speaker 7: So clearly there is a swall of Democrats. We knew

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Speaker 7: this confidence vote was going to happen at some point,

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Speaker 7: but it seems like the calendar is accelerating. And one

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Speaker 7: of my COM's minister, Mark Fino, who's actually the one

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Speaker 7: in charge of the relations with the parliament, said we

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Speaker 7: are like turkeys waiting for Christmas.

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Speaker 2: Carolyn Connin in Paris, and Nordic and Baltic countries are

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Speaker 2: showing the rest of Europe how to prepare in case

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Speaker 2: Russia's war spills over from Ukraine government, central banks and

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Speaker 2: companies that are leading the way on stockpiling emergency grain

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Speaker 2: and medical supplies, making the financial system more resilient and

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Speaker 2: getting households to store canned food and iodine tablets. Our

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Speaker 2: Nordic Managing editor Katy Poian Pilot joins us now for more.

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Speaker 1: Kati, good morning.

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Speaker 2: Why are European countries stepping up these preparations.

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Speaker 8: Now there's just the general awareness now in Europe that

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Speaker 8: war isn't something that you read about in history books,

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Speaker 8: and the primary job of a government is to keep.

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Speaker 3: Their people safe.

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Speaker 8: So that is really that's been bringing this awareness to

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Speaker 8: the forefront that they need to prepare for a risk

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Speaker 8: of war. But it's not just that climate change is real,

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Speaker 8: it's happening. We've seen really bad weather impacts, events such

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Speaker 8: as the floods in Spain not too long ago, a

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Speaker 8: few years ago in Germany, devastating floods. So there's just

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Speaker 8: this sort of understanding that the more prepared you are,

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Speaker 8: the better you can handle a crisis when it hits.

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Speaker 2: Because you're based in Helsinki, why is Finland seen as

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Speaker 2: a yardstick for other countries in terms of preparedness.

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Speaker 8: That's right, I mean that preparedness mentality here goes back

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Speaker 8: a long way. Organized on government preparedness really started in

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Speaker 8: earnest in the nineteen fifties and it pulls in together

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Speaker 8: the private sector as well, associations and ordinary citizens are

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Speaker 8: given a role. So there's just this sort of general

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Speaker 8: awareness that a potential threat is always there. Finland's surrounded

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Speaker 8: by c from most of its trade partners, so in

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Speaker 8: a crisis, it becomes an island, and so it makes

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Speaker 8: sense to store good, store grain, stockpile within the country.

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Speaker 2: What are other countries doing about this, and how is

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Speaker 2: the EU getting involved in coordination?

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Speaker 8: There's a lot happening actually right now. A lot of

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Speaker 8: countries have given advisories to the people on what to

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Speaker 8: do in the event of a crisis. Lithuania has done that.

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Speaker 8: Sweden just last week started mailing leaflets to all of

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Speaker 8: its household five point two million of them, on how

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Speaker 8: they should be prepared to act in any kind of

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Speaker 8: an emergency. Denmark started recently thinking about banking system resilience

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Speaker 8: and for example, if power went out for a week,

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Speaker 8: how would you buy groceries. So they're working on a

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Speaker 8: system in Denmark where where your card payments would still

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Speaker 8: go through during that week, with the banks and the

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Speaker 8: retail sector sharing the risk. There. In Lithuania, you're seeing

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Speaker 8: a lot of stockpiling medicines and part of that is

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Speaker 8: an EU push to start twenty two medical stockpiles in

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Speaker 8: sixteen member nations. So the EU's role is really fooling

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Speaker 8: resources and it can kind of wake up some of

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Speaker 8: the countries that have less of a tradition of preparedness,

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Speaker 8: they've really sort of The EU is going back to

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Speaker 8: its roots. It was born to safeguard peace in Europe

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Speaker 8: and to take care of security for its citizens, and

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Speaker 8: this is exactly what starting to do more now.

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Speaker 2: One of the key guidelines that is coming out as

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Speaker 2: part of this is asking people or advising people to

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Speaker 2: stock food and water for seventy two hours. Just talk

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Speaker 2: us through how that's playing out in places like Finland

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Speaker 2: and Denmark.

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Speaker 8: So the idea of seventy two hours is to buy

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Speaker 8: time for the authorities to organize a response to whatever

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Speaker 8: the crisis happens to be. So if they can rely

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Speaker 8: on just regular people like you and me to be

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Speaker 8: prepared to have food and water in the house and

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Speaker 8: be able to stay there without authorities immediately coming into help,

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Speaker 8: it buys them time to muster a response, and it

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Speaker 8: also lets them attend to those who need their help

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Speaker 8: the most, those who can't prepare for themselves.

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Speaker 1: And there is.

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Speaker 8: There's also reportedly some people think that more than seventy

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Speaker 8: two hours would be too long and they probably wouldn't

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Speaker 8: do it. So of course the authorities would like coast

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Speaker 8: to prepare for a week, but it sounds like a

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Speaker 8: long time. Would you have week's fourth of water in

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Speaker 8: your house?

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