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

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Speaker 1: Dybaqt podcast, available every morning on Apple, Spotify or wherever

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Speaker 1: you listen. It's Wednesday, the twentieth of November in London.

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Speaker 2: I'm Caroline Hepka and.

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Speaker 3: I'm Stephen Carroll. Coming up today, Kirstarmer looks to elevate

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Speaker 3: the UK's status on the world stage at a G

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Speaker 3: twenty summit punctuated by confusion and chaos.

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Speaker 1: Russia's invasion of Ukraine enters a dangerous new chapter as

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Speaker 1: both sides opt to escalate.

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Speaker 3: Plus one million missing jobs, a new report says Britain

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Speaker 3: has massively underestimated the number of people in employment.

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Speaker 2: Let's start with a roundup of our top stories.

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Speaker 3: Kaers Starmer has used his biggest international summit since becoming

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Speaker 3: Prime Minister to make the case that Britain is back

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Speaker 3: and looking outward to the world again. However, Starmer's appearance

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Speaker 3: at the G twenty meeting in Rio de Janeiro also

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Speaker 3: highlighted the many challenges facing British faria and policy.

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Speaker 4: We can only make lives better for working people if

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Speaker 4: we're prepared to shape the global problems that are reaching

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Speaker 4: into our lives more and more. The G twenty represents

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Speaker 4: eighty five percent of global GDP, so we have a

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Speaker 4: shared interest here in driving up growth and investment and

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Speaker 4: a profound responsibility to find solutions for the problems facing

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Speaker 4: the world today.

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Speaker 3: But despite the soaring rhetoric, Starmer has found himself attending

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Speaker 3: a G twenty summit beset by tensions as leaders failed

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Speaker 3: to present a united front on issues including Ukraine and

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Speaker 3: the Middle East. Questions repeatedly bubbled up about what kind

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Speaker 3: of role the United States would continue to play in

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Speaker 3: world affairs under President elected Trump, with diplomats politely avoiding

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Speaker 3: the term isolationists.

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Speaker 5: Well.

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Speaker 1: The G twenty meeting has most notably been overshadowed by

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Speaker 1: the latest escalator reactions from Moscow and Kiev. On Tuesday,

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Speaker 1: Ukraine launched its first attack on Russian soil with US missiles.

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Speaker 1: The strike came as Vladimir Putin approved broadened guidelines on

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Speaker 1: the potential use of nuclear weapons. The twin developments early

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Speaker 1: on Tuesday rattled investors and once again focused attension on

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Speaker 1: the growing security threat facing nations across Europe. The NATO

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Speaker 1: Secretary General Mark Rutter says defense spending must be bolstered.

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Speaker 5: Clearly the two percent greater. We have achieved it on

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Speaker 5: the European side of NATO overall, but there's not enough.

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Speaker 5: It is clearly not enough. So we have to also

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Speaker 5: make sure that we spend more on defense to make

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Speaker 5: sure that the deterrency defense is not only there today

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Speaker 5: but also for the longer term, to make sure that

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Speaker 5: we can defend ourselves.

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Speaker 1: NATO is Mark or Rutter speaking there, adding to the

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Speaker 1: sense of our ease to under see data. Cables connecting

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Speaker 1: Finland and Germany were damaged earlier this week. Governments in

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Speaker 1: the region have repeatedly reported cyber attacks, this information and

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Speaker 1: incursions by Russian jets, and have worn that they will

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Speaker 1: be under threat if Putin secures victory.

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Speaker 3: In Ukraine, former Hong Kong newspaper titan Jimmy Lai is

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Speaker 3: testified in court for the first time on his trial

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Speaker 3: and national security charges. The seventy six year old dismissed

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Speaker 3: the idea of advocating for the city's independence from China

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Speaker 3: as crazy and don played his foreign ties. He's been

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Speaker 3: detained on these charges for almost four years. Our China

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Speaker 3: correspondent minmn Low is at the court.

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Speaker 6: He mentioned that he studied Epple Daily, that proved democracy

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Speaker 6: newspaper that was forced to shut down in twenty twenty one.

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Speaker 6: He started it because it reflects the core values of

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Speaker 6: Hong Kong, which he said, our freedom, freedom of assembly,

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Speaker 6: freedom of siege, freedom of religion, the rule of law

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Speaker 6: in the pursuit of the democracy. And that's interesting given

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Speaker 6: that we know the National Security Law imposed by Beijing

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Speaker 6: is a very broadly worded legislation.

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Speaker 3: That's our China correspondent min Min Loow. Beijing has accused

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Speaker 3: Live of providing funding to pro Andon's forces acause he

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Speaker 3: previously told Bloomberg Television that he's never supported. A guilty

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Speaker 3: verdict would likely further inflame Hong Kong's political relationships. Donald

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Speaker 3: Trump has vowed to ask China's ch Jinping to free Lie,

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Speaker 3: and the UK Prime Minister Kiro Starmer voiced concerns about

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Speaker 3: his case at this week's G twenty summit.

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Speaker 1: Now to US politics, Donald Trump is appointed Howard Lutnick

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Speaker 1: to head the US Commerce Department, in an administration that

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Speaker 1: will likely be shaped by sweeping terrif Hyke proposals. The

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Speaker 1: Counterfeitzgerald CEO is one of Trump's most prominent Wall Street

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Speaker 1: backers and his co chair of his transition team. The

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Speaker 1: decision comes as the President elect continues to weigh his

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Speaker 1: choices for the position of Treasury Secretary. Bloomberg's Nancy Cook

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Speaker 1: says that Lutnik had previously wanted that role.

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Speaker 7: There was a ton of inviting over the position. Last

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Speaker 7: week we reported that, you know Howard Lutnik was really

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Speaker 7: going for it and labbying and asking allies to call

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Speaker 7: Trump and make the case for him.

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Speaker 2: Scott Bessen doing the same.

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Speaker 7: Trump became very irritated with this and basically now is

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Speaker 7: widening the search and looking for, you know, a third

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Speaker 7: party to fill that job.

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Speaker 1: Our senior National political correspondent and Nancy Cook speaking there

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Speaker 1: A Treasury secretary announcement may come soon, sources tell Bloomberg.

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Speaker 1: Trump's team has discussed placing former Fed Governor Kevin Walsh

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Speaker 1: in the role, with Hedge Fund manager Scott Bassent leading

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Speaker 1: the National Economic Council. Bloomberg senior Washington correspondent Seleha Mussin says,

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Speaker 1: it's a complicated decision.

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Speaker 8: We still don't know who is going to be Treasure secretary,

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Speaker 8: and you know, I don't see how Trump can decide

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Speaker 8: what the rest of the team can look like until

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Speaker 8: he's filled and decided on a candidate for that very

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Speaker 8: key post. We know what his economic agenda is. We

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Speaker 8: know that he wants to go very strong on tariff's

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Speaker 8: and he wants a Treasury secretary with Wall Street pedigree

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Speaker 8: who will carry forth and implement an agenda that is

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Speaker 8: heavy on protection.

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Speaker 2: The Blomberg selehemosine.

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Speaker 5: There.

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Speaker 1: Trump also picks celebrity doctor mehmet Oz to lead these

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Speaker 1: centers for Medicare and Medicaid services, and Linda McMahon, the

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Speaker 1: one time CEO of World Wrestling Entertainment, as his nominee

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Speaker 1: for Education Secretary.

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Speaker 3: The UK has underestimated the number of people in work

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Speaker 3: by almost one million, according to new research. The report

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Speaker 3: by the Resolution Foundation think tank suggests that the employment

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Speaker 3: rate has bounced back to pre pandemic levels and that

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Speaker 3: worker inactivity is lower than thought. The calculations could have

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Speaker 3: significant implications for the Bank of England. Speaking yesterday, Governor

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Speaker 3: Andrew Bailey again highlighted the importance of the labor market

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Speaker 3: to its decision making.

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Speaker 9: One of the important elements of the budget for US

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Speaker 9: is how this increase in the cost of employment then

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Speaker 9: place through. This is really protectly the most important part

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Speaker 9: of it, I would say.

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Speaker 3: Bailey and other Bank of England policymakers have warned that

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Speaker 3: problems with the official employment data the ONS Labor Force

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Speaker 3: Survey have made their calculations harder. Out of the government's

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Speaker 3: tax risers support the Bank of England's gradual approach to

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Speaker 3: easing interest rates.

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Speaker 1: The world's most valuable company reports earnings later today. Options

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Speaker 1: trading suggests that Invidia's quarterly results are now the most

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Speaker 1: important market catalysts left this year. Research from Berkley says

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Speaker 1: that it will be more important even than the Fed's

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Speaker 1: December rate decision. Advisors Capital Management partner and portfolio manager

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Speaker 1: Joanne Feeney explains why traders are looking to Nvidia.

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Speaker 10: We do see that company as having the potential to

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Speaker 10: continue abnormally high growth rates for several years to come,

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Speaker 10: given the demand that we're seeing for AI application capabilities

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Speaker 10: and the uptake that we're seeing in companies really across

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Speaker 10: the spectrum from healthcare two industrials to software. So there's

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Speaker 10: always room for hiccups, but we do see the long

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Speaker 10: term prospects of a Vidia to be really.

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Speaker 1: Robust Phoene's mention of quarterly hiccups comes as Wall Street

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Speaker 1: revenue estimates SPAD an eight billion dollar range that reflects

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Speaker 1: the uncertainty even if the chip giant can meet what

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Speaker 1: its CEO has called quote insane demand.

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Speaker 2: So that's from and Video.

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Speaker 3: Those are your top stories on the markets. US equity

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Speaker 3: markets yesterday recovered from the risk of move, reversing earlier

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Speaker 3: losses driven by that escalation in Russia's war against Ukraine.

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Speaker 3: The S and P five hundred finished up by point

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Speaker 3: four percent, the NASDAK rising zero point seven percent, and

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Speaker 3: Video shares actually soaring close to five percent ahead of

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Speaker 3: their earnings report later. The Euro recovering after falling by

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Speaker 3: as much as zero point seven percent over those geopolitical tensions.

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Speaker 3: It's slightly weaker today at one oh five point eighty

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Speaker 3: four against the dollar. Gold rose by point eight percent yesterday.

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Speaker 3: Bitcoin also hit fresh old time highs of above ninety

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Speaker 3: four thousand, before easing to run ninety two thousand today.

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Speaker 3: Eight stocks in trading today are mixed to the Mscirish

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Speaker 3: Specific Index is six tenths of one percent lower.

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Speaker 1: Well in a moment, we'll have more on the g

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Speaker 1: twenty gathering in Rio, and also how events in Ukraine

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Speaker 1: dominated that event. With our EMEA News director Roslyn Matheson,

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Speaker 1: bloss Hong Kong's former newspaper Titan, Jimmy Lai has been

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Speaker 1: testifying in court against national security charges. Bloomberg's Jenny Marsh

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Speaker 1: will bring us details on his testimony after he has

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Speaker 1: reportedly spent four years in solitary confinements.

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Speaker 3: But first, another story that Caltterai this morning. The prospect

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Speaker 3: of fast food at thirty five thousand feet. I don't

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Speaker 3: know if you've ever been mid flight and craved burger.

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Speaker 3: It's not really something that I have to say has

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Speaker 3: come up in my travels, but it is something now

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Speaker 3: that first class customers on Delta will have the option

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Speaker 3: of getting a Shakeshak Burger flight.

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Speaker 5: I like that.

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Speaker 1: Look, it's very common in the US where people go,

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Speaker 1: you know, east to west, coast, west to east, et cetera,

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Speaker 1: and they take their favorite snack on board. Used I

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Speaker 1: must admit I'm probably one of those people on the

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Speaker 1: plane that doesn't like the smell of fast food.

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Speaker 3: But hey, I did think about that. I mean, I

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Speaker 3: actually thought that old food on planes was calculated to

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Speaker 3: not disturb fellow passengers. Anyway, this is something that is

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Speaker 3: been tried out by Delta, and something that I didn't

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Speaker 3: know is that apparently it has been done before. United

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Speaker 3: a Land's previously partnered with McDonald's in the nineteen ninety

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Speaker 3: stuff for burgers on your flight. Well, let's bring you

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Speaker 3: more now on the end of the G twenty summits,

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Speaker 3: which seems to show the West is no longer running

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Speaker 3: the show. Every summit statement since Russia's war against Ukraine

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Speaker 3: has been weaker than the previous version. Let's bringing our

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Speaker 3: Amy and HISS director Roslind Matheson for more on this.

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Speaker 3: So the end of summit press conference never happened, canceled

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Speaker 3: by the host, Brazilian President Lula. Why was this G

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Speaker 3: twenty summit apparently so chaotic?

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Speaker 11: Well, it did come across as quite chaotic, didn't it.

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Speaker 11: And Lulu, as you say, didn't have his closing press.

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Speaker 11: I mean it standed up normally for the host to

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Speaker 11: do that and also the US president to do that.

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Speaker 11: In this case, it seems neither did. Although it's not precedented.

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Speaker 11: They usually like to tout the achievements of the communicat

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Speaker 11: even if the Communica is kind of wafer thin, but

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Speaker 11: it seems like this meeting was particularly chaotic as well.

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Speaker 11: We had that weirdness over the family photo where three

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Speaker 11: of the leaders missed it. It had to be redone

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Speaker 11: in a different setting a day later, which was all

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Speaker 11: a bit awkward, and it just seems to reflect the

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Speaker 11: fact there was a lot going on behind the scenes

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Speaker 11: in terms of disagreements and arguments over be it the

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Speaker 11: war in Ukraine, but also the conflict in the Middle East,

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Speaker 11: and more than anything, hanging over it the sense of

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Speaker 11: the fact that Donald Trump's returning to the White House

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Speaker 11: and what that means for these leaders and for the

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Speaker 11: rest of the world. There's a lot of frantic chats

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Speaker 11: going on about that. I guess people got pulled into

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Speaker 11: those conversations and missed their cues for things like family photos.

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Speaker 11: And then you had a bunch of domestic pressures going

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Speaker 11: on leaders, including the German leader, Ola Schultz.

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Speaker 2: So you put all that together with a bit of seeming.

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Speaker 11: Like disorganization from the hosts in the minute on some

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Speaker 11: of the logistics, and you ended up with a bit

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Speaker 11: of chaos and a sense of frustration. I guess from

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Speaker 11: Lula as the host that the things he wanted the

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Speaker 11: meeting to achieve or to talk about those things didn't

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Speaker 11: seem to surface.

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Speaker 1: Yeah, absolutely, Neither Putin nor Zelenski were actually at the

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Speaker 1: G twenty. But obviously, you know Ukraine using attackers and

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Speaker 1: Putin signing off on revised on a revised nuclear doctrine,

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Speaker 1: you know, was very key yesterday.

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Speaker 2: Look, she was also at the summit.

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Speaker 1: He wanted assurances on fewer trade barriers, so trade another issue. Meanwhile,

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Speaker 1: the Taiwanese Foreign Minister is now in Europe another key issue.

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Speaker 1: What does the Taiwanese Foreign minister hope to get from

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Speaker 1: the visit.

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Speaker 11: This is interesting because, as you say, it comes against

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Speaker 11: that backdrop of Cgping in his comments at It's interesting

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Speaker 11: because China in a way wants to bifurcate these things.

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Speaker 11: They want to increase trade and investment with countries including

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Speaker 11: the US, but keep other things separate, including tensions around

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Speaker 11: Taiwan or criticism on human rights, a bit like the

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Speaker 11: UK Prime minister in a way Kiss drama. He wants

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Speaker 11: to improve trade and investment with China but also be

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Speaker 11: able to criticize them on human rights and all of that.

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Speaker 11: Taiwan is a key issue, especially again for the incoming

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Speaker 11: US administration how they will view Taiwan, and against that

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Speaker 11: batchop we've got the foreign minister visiting Europe first of

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Speaker 11: all Brussels and then going on to Lithuania. And visits

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Speaker 11: by foreign ministers from Taiwan are not that unusual, but

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Speaker 11: they do tend to touch off criticism from China because Taiwan,

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Speaker 11: of course is a self governing island that China claims

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Speaker 11: as its own, and China views the diplomatic missions as

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Speaker 11: seeking to undermine it. And we know, of course there's

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Speaker 11: been a long history of tension between China and Lithuania.

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Speaker 11: Lithuania has been sort of at the forefront at times

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Speaker 11: criticizing China for some of its economic behavior and by

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Speaker 11: doing this, no doubt sticking its neck out again. And

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Speaker 11: you can see that China may respond economically, particularly to Lithuania.

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Speaker 11: But certainly for Taiwan, it's about, you know, getting the

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Speaker 11: message heard and building diplomatic ties because they don't have

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Speaker 11: that many countries that sort of recognize Taiwan or have

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Speaker 11: diplomatic ties with Taiwan. But equally it's likely to bring

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Speaker 11: some criticism from China.

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Speaker 3: Okay Amy and News director Roslind Marthason. Thank you very

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Speaker 3: much for joining us.

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Speaker 1: Now let's focus on Hong Kong. Jimmy Lai, the former

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Speaker 1: newspaper Titan, has testified in court in the past few hours.

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Speaker 1: He denies allegations of advocating for Hong Kong's independence and

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Speaker 1: downplayed his foreign ties. He faces a maximum penalty of

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Speaker 1: life in prison under the China National Security Law. Joining

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Speaker 1: US now Hong Kong is Jenny Marsh, who heads up

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Speaker 1: OH China Economic and Government coverage. Jenny, good morning, Thank

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Speaker 1: you for being with us. Li's been in jail awaiting

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Speaker 1: child for some four years, according to his lawyer's health

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Speaker 1: in solitary confinement. What did he say so, Jimmy and II.

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Speaker 12: He took the stand today. It is the first time

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Speaker 12: anyone's heard from him other than saying not guilty in

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Speaker 12: four years. And he really sort of tried to paint

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Speaker 12: himself as a moderate figure and to sort of recast

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Speaker 12: the relationships that he had with foreign governments is innocuous

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Speaker 12: and those relationships are really at the heart of the

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Speaker 12: charges against him. So, you know, he dismissed the idea

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Speaker 12: that he was part of a campaign to lobby for

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Speaker 12: Hong Kong's independence as a conspiracy. He said it as

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Speaker 12: a crazy to even think about Hong Kong being independent

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Speaker 12: from China, and that he had never allowed his staff

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Speaker 12: in his newspaper, The Apple Daily, which is now closed,

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Speaker 12: but when it was running, he'd never allowed it to

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Speaker 12: advocate for that, and that isn't it really, I think

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Speaker 12: he's previously said, but you know, it's something which Beijing

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Speaker 12: has accused him of doing. And then he also sort

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Speaker 12: of laid out the relationship he had with Vice President

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Speaker 12: Mike Pence, for example, talking about a meeting in July

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Speaker 12: twenty nineteen where Li said that, yes, he had asked

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Speaker 12: the Republican to voice his support for Hong Kong, but

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Speaker 12: he basically said, you know, I'm not important enough to

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Speaker 12: control the American Vice President. I'm just making a request.

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Speaker 12: And that's important because really what lies charges of cocluding

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Speaker 12: with foreign forces boiled down to is the government says

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Speaker 12: that he had this campaign to convince Western governments to

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Speaker 12: sanction Hong Kong and China over its human rights record,

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Speaker 12: and that makes him a trader in their eyes, and

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Speaker 12: it's a crime under the National Security Law, which actually

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Speaker 12: means that Lia is facing life in prison if he

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Speaker 12: is convicted.

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Speaker 3: And Jenny, this is the latest ministering of cases we've

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Speaker 3: had just this week, some forty people convicted in sentences

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Speaker 3: that were handed inn yesterday. Does it what does it

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Speaker 3: mean for the thick question of the one country two

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Speaker 3: systems and what about the external pressure on China over

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Speaker 3: these issues. We know it's something that the British Prime

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Speaker 3: Minister Coast Armer among others, has raised.

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Speaker 2: That's right.

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Speaker 12: You know, world leaders are bringing it up in Donald

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Speaker 12: Trump on the campaign trail said that he would get

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Speaker 12: Jimmy Lai free if he was elected and that he

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Speaker 12: would bring it out with Hijan Ping. So you know,

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Speaker 12: it remains to be seen how much pressure Trump is

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Speaker 12: going to put on when it does take office. But

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Speaker 12: certainly like Jimmy Lai and the case yesterday involving Joshua Wong,

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Speaker 12: these are some one of the most high profile cases

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Speaker 12: that really do rally foreign governments to criticize Hong Kong

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Speaker 12: and put pressure on China. As for what it means

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Speaker 12: for the one country two systems, I mean, these court

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Speaker 12: cases are symbols of the erosion of that system or

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Speaker 12: the narrowing of it. For sure, Hong Kong is still

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Speaker 12: a different place to China. It does have its own

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Speaker 12: digital system, has the free internet here. There's many things

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Speaker 12: which will differentiate Hong Kong from China, but not as

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Speaker 12: many as there were before in the space here now

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Speaker 12: for political opposition and to criticize the Communist Party has

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Speaker 12: essentially been closed down.

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Speaker 2: You know, that's what the Security Law did it.

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Speaker 12: It made it illegal to try to have political opposition

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Speaker 12: that would criticize the ruling Communist Party in any sort

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Speaker 12: of serious way. So you know, in that sense, these

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Speaker 12: cases are the culmination of that sort of campaign.

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Speaker 2: Yeah.

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Speaker 1: Absolutely, In terms of a Lie though, he is you know,

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Speaker 1: considered the biggest target in the crackdown that you've sort

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Speaker 1: of described from Beijing. And I suppose what might happen

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Speaker 1: next in this in this case.

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Speaker 2: Well, this is it.

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Speaker 12: So he's testifying now and then in the coming weeks.

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Speaker 12: We haven't got a date yet, we'll obviously expect a verdict,

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Speaker 12: and then some time after that you would get a sentence.

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Speaker 12: You know, he is widely expected to be convicted. Only

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Speaker 12: a tiny handful of people under the NSL have had

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Speaker 12: their charges have been acquitted. And as you say, Lie

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Speaker 12: is the top target, so he's almost suddenly looking at

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Speaker 12: a guilty conviction. Then does he appeal it and does

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Speaker 12: the government allow that appeal? I mean, his international legal

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Speaker 12: team was sort of floating the idea that they would

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Speaker 12: they could strike some sort of prisoner swap after the

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Speaker 12: release of Evan Gershevich. But you know who China would

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Speaker 12: swaping for and whether they would even entertain such a swap.

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Speaker 12: You know, there's a lot to be answered around that still,

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Speaker 12: so you know, it's not over until he actually has

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Speaker 12: that verdict. But for now, I think it's just interesting

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Speaker 12: to hear what he has to say. This could be

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Speaker 12: one of the last times that we ever hear from

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Speaker 12: Jimmy life.

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Speaker 2: He is convicted.

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Speaker 12: He's seventy six years old, so if he gets life

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Speaker 12: in jail, you know he's unlikely to walk free again.

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