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

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Speaker 1: DABA Accurate podcast, available every morning on Apple, Spotify or

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Speaker 1: wherever you listen. It's Tuesday, the thirtieth of July here

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Speaker 1: in London. I'm Caroline Hepka.

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Speaker 2: And I'm Stephen Carroll. Coming up today. Rachel Reeves warns

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Speaker 2: of more difficult decisions as she blames the Tories for

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Speaker 2: a twenty two billion pound budget black hole.

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Speaker 1: Standard chart it expands it's multi billion dollar share buyback

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Speaker 1: as results beat estimates.

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Speaker 2: Plus setting up a showdown. Donald Trump says he will

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Speaker 2: probably debate Kamala Harris before US voters go to the polls.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 2: The UK's Chancellor, Rachel Reeves has announced major spending cuts

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Speaker 2: and new taxes as she warned she'd inherited a fiscal

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Speaker 2: black hole. She accused the previous government of spending twenty

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Speaker 2: two billion pounds it didn't have.

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Speaker 3: I'm not talking costs for future years that they signed

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Speaker 3: up to but did not include. I'm not talking about

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Speaker 3: the state of public services in the future, but the

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Speaker 3: crisis in our prisons which they've left for us to fix.

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Speaker 3: I'm talking about the money that they were already spending

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Speaker 3: this year and had no ability to pay for, which

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Speaker 3: they hid from the country. They had exhausted the reserve

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Speaker 3: and they knew that, but nobody else did.

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Speaker 2: The Chancellor scrapped road and rail projects and some support

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Speaker 2: for pensioneeris to help fill the budget shortfall. In all,

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Speaker 2: Rachel Reds announced five and a half billion pounds of savings,

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Speaker 2: leaving a budget shortfall of sixteen point four billion pounds,

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Speaker 2: which includes spending on public sector pay rises off between

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Speaker 2: five and six percent.

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Speaker 1: Rachel Reeves has also hinted at tax rises in the budget,

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Speaker 1: which she set for the end of October. Charlie ban,

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Speaker 1: a former deputy governor at the Bank of England, says

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Speaker 1: that they now seem inevitable.

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Speaker 4: I think they're pretty much has to be the big

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Speaker 4: lie of the election. Camp pain maybe expect to call

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Speaker 4: it conspiracy of silence. Neither party was really honest about

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Speaker 4: the underlying pressures on the public finances in the medium term.

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Speaker 1: So Charlie Bean there, who was joined by other experts

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Speaker 1: who said that the announcement pointed to a painful budget

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Speaker 1: in the autumn. The chance that doubled down on her

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Speaker 1: commitments not to raise vat National Insurance income and Corporation tax,

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Speaker 1: but has not ruled out other levies like capital gains

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Speaker 1: tax increases.

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Speaker 2: Standard Charter is expanding its share buyback program with another

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Speaker 2: one point five billion dollars announced today. It's part of

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Speaker 2: an overall plan to return five billion to shareholders by

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Speaker 2: twenty twenty six. The bank reboarded second quarter pre tax

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Speaker 2: profit of one point eight three billion dollars, beating analyst

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Speaker 2: estimates of one point six billion. Standard Charter also upgraded

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Speaker 2: its guidance for income growth this year, which it now

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Speaker 2: expects to be above seven percent. Shares in Hong Kong

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Speaker 2: at the bank have risen after the results made.

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Speaker 1: Electric vehicles are dominating the European market. Brands from the

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Speaker 1: country are hitting record registrations, with new regulations that could

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Speaker 1: threaten the sector. Bloomberg's Tia Adebaya has more.

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Speaker 5: More than twenty three thousand of Europe's registered battery electric

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Speaker 5: vehicles came from China last month, according to Data Force figures,

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Speaker 5: a record amount. The surge comes as Chinese manufacturers race

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Speaker 5: against EU tariffs, which took effect earlier this month. Cars

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Speaker 5: registered before July fifth could be sold on without added duties.

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Speaker 5: Chinese made imports from Western manufacturers, including Volvo and Tesla,

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Speaker 5: are also subject to the changes, but tensions between Beijing

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Speaker 5: and Brussels risked evolving into a trade war. Chinese brands,

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Speaker 5: including state owned SAIC and BYD, captured eleven percent of

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Speaker 5: the European electric car market in June, and car makers

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Speaker 5: are expanding in Europe to blunt EU restrictions. In London,

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Speaker 5: tiwa Adebayo Bloom Radio.

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Speaker 2: A Tesla market analyst, has reportedly narrowly avoided a crash

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Speaker 2: whilst testing the company's full self driving feature. According to

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Speaker 2: William Stein from Truth Securities, he was forced to intervene

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Speaker 2: when the car accelerated through an intersection in the New

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Speaker 2: York suburbs towards another vehicle. Bomberg Technology's ad Ludlow does

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Speaker 2: the episode cast doubt on the automaker's ambitions.

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Speaker 6: What William Stein at Truist is doing is he's taking

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Speaker 6: a specific commentyl On must made on the first quarter

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Speaker 6: and second quarter earning his calls, which his investors should

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Speaker 6: judge Tesla's ability to solve for autonomy active tents by

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Speaker 6: going out and experiencing themselves and so what he's saying is, note,

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Speaker 6: is my experience based on this now obsolete version of

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Speaker 6: the software is it's not ready to solve autonomy. It

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Speaker 6: hasn't done.

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Speaker 2: That's Bimberg Technologies ad Ludlow. Tesla didn't immediately respond to

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Speaker 2: a request for comment on Stein's report, but CEO Elon

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Speaker 2: Musk posted to X that the car maker is deploying

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Speaker 2: an dated version of full self driving. The incident comes

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Speaker 2: as Mosk seeks to emphasize the company's broader artificial intelligence

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Speaker 2: efforts as sales of its electric vehicles have slowed.

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Speaker 1: Donald Trump says that he expects to eventually debate Vice

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Speaker 1: President Kamala Harris. He had declined to commit to a

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Speaker 1: scheduled debate, which had been booked in when President Biden

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Speaker 1: was still the presumptive nominee, but speaking to Laura Ingram

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Speaker 1: on Fox News, Trump had this to say.

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Speaker 7: The inswes, Yes, I'll probably end up debating. I think

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Speaker 7: actually the debate should take place before the votes start

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Speaker 7: being cased. You know, when you had a very good

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Speaker 7: second debate with Biden, a really beat on badly. The

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Speaker 7: problem was thirty forty percent of the votes were already

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Speaker 7: cast if you're going to have a debate, you're going

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Speaker 7: to do it before I think, before the votes are cast.

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Speaker 2: I think it's very important that you.

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Speaker 7: Do that so the answers yes. But I can also

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Speaker 7: make a case for not doing it.

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Speaker 1: Donald Trump, speaking there to Fox News and referring to

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Speaker 1: the twenty twenty election and early postal voting, which begins

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Speaker 1: in some states in September. Meanwhile, Democrats are poised to

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Speaker 1: virtually nominate Harris and her yet to be named running

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Speaker 1: mate by the seventh of August. One possible VP pick, though,

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Speaker 1: has dropped out. North Carolina Governor Roy Cooper says that

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Speaker 1: he's withdrawing from consideration as this quote just wasn't the

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Speaker 1: right time.

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Speaker 2: Venezuela's opposition says they can prove electoral fraud. As protests

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Speaker 2: erupted in the nation's capital, thousands of Venezuelans took to

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Speaker 2: the streets of Caracas to protest what they say is

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Speaker 2: Maduro's fraudulent win. Opposition leader Maria Coriino Machado says that

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Speaker 2: they show they won more than double the incumbent Nicholas

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Speaker 2: Maduro's votes.

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Speaker 8: Good on you today. I want to tell all Venezuelans

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Speaker 8: in the country and abroad to all the Democrats of

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Speaker 8: the world. We now have proof of the truth of

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Speaker 8: what happened yesterday in Venezuela.

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Speaker 2: Yeah, the administration is accused the shadow of being involved

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Speaker 2: in a plot to alter voting results. International pressure has

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Speaker 2: been ramping up on Maduro to provide transparency over the

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Speaker 2: election tally. In a moment, we'll bring you more on

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Speaker 2: Rachel Reeves's speech on the UK's public finances, plus the

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Speaker 2: latest from the US presidential race. But first, thinking about sleep,

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Speaker 2: as we often do at this time of the morning,

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Speaker 2: and where Olympic athletes are sleeping. Much has been made,

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Speaker 2: of course by the cardboard beds in the Olympic village

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Speaker 2: in Paris, but the question of who's chosen to stay

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Speaker 2: in the village and who's left, And this is something

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Speaker 2: our colleague Willian Town has been writing about.

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Speaker 1: Yea absolutely raffa Adele says that to live the full

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Speaker 1: experience you need to be in the village, and a

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Speaker 1: number of other tennis players decided to stay too, but

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Speaker 1: quite a few have chosen sleep maybe above the cardbole boxes,

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Speaker 1: although I've seen pictures of the corbole boxes and actually

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Speaker 1: they're pretty nice.

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Speaker 2: Yeah, I've you know, I've seen the video of Time

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Speaker 2: Daily jumping on. Yes, it's not like it's flimsy, to

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Speaker 2: be fair, but there's a lot of talk about who's

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Speaker 2: got mattress toppers, who's got extra pillows, who can make

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Speaker 2: them more comfortable. Some of the athletes have decided to

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Speaker 2: leave and go and sleep in a hotel, claiming they

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Speaker 2: weren't getting enough sleep in the Olympic village. But interesting

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Speaker 2: to get a peek behind the curtain with our colleague

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Speaker 2: Jillian tan of what the Olympic athletes are living through

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Speaker 2: I suppose while in Paris.

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Speaker 1: Yeah, absolutely right. Let's focus then on the challenges that

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Speaker 1: were laid bare by the chance of Rachel Reeves in

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Speaker 1: her audit of public spending. How big are the problems

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Speaker 1: and how will the new Labor government solve them? We

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Speaker 1: were watching Rachel Reeves yesterday our UK politics were brought

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Speaker 1: to James Orcock with us this morning, So let's start

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Speaker 1: with the chances. Then we knew that she was going

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Speaker 1: to blame the previous government for their mishandling of the finances.

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Speaker 1: What did she sort of say about what skeletons are

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Speaker 1: actually in the closet.

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Speaker 9: It was a real shock, and I don't say that lightly, Caroline.

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Speaker 2: There we knew there.

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Speaker 9: Was a big fiscal hot and this was all about

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Speaker 9: sort of future spending. The government had basically penciled in

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Speaker 9: twenty billion pounds of civil service cuts. I mean weren't

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Speaker 9: sure where they would come.

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Speaker 8: Now.

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Speaker 9: The big revelation that generally has taken aback analysts and

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Speaker 9: pundits is a lot of money had already been overspent.

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Speaker 9: We're talking six point four billion on asylum claims, about

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Speaker 9: three billion on new policy commitments, and overspends on a

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Speaker 9: range of government projects. And that was money that had

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Speaker 9: not been disclosed, not to the OBR, not to the

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Speaker 9: Labor Party, and has genuinely taken aback. I mean, I

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Speaker 9: go to the IFS intitutficial Studies in the OBR, which

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Speaker 9: are the independent budget watchdogs. Now, the IFS were one

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Speaker 9: of the biggest cheerleaders to say there was a conspiracy

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Speaker 9: of silence over the election debates. After this statement, where

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Speaker 9: they had been having a go at Reeves before it

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Speaker 9: saying this is all sort of known, they went Rachel

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Speaker 9: Reeves is within her rights to feel somewhat aggrieved, and

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Speaker 9: it was always clear that spending plans were incapacible with

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Speaker 9: but the more cashould be required, but they were like

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Speaker 9: the funding pressures do jamely appear to be greater than

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Speaker 9: could be discerned from the outside. So in this blame

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Speaker 9: game that we were expecting, there is a genuine introduction

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Speaker 9: of big, big, big overspends. The OBI called one of

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Speaker 9: the largest budget overspends outside of the post pandemic period.

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Speaker 2: So what has the Chancellor said that she's going to

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Speaker 2: do about this?

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Speaker 9: I mean, let's start with the cuts. They are looking

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Speaker 9: at the three billion cuts for each civil servant department.

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Speaker 9: That's some of the forecast stuff looking ahead. They've cut

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Speaker 9: winter fuel payments. That will get a lot of domestic

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Speaker 9: headlines because it will affect pensioners and wealthy pensions quite specifically.

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Speaker 9: You're also looking at eight hundred million pounds in transport

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Speaker 9: projects to scrapped overnight, and that's just the beginning. This

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Speaker 9: is all going to add up to about five point

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Speaker 9: five billion saved in the budget for this year, but

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Speaker 9: leaving roughly sixteen sixteen point five billion short form for

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Speaker 9: sort of the rest of the government period. And then

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Speaker 9: on taxes, a lot of stuff in the manifesto is

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Speaker 9: coming into play quite quickly. You're looking at a pledge

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Speaker 9: to charge twenty percent eighty on private schools. Non dom

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Speaker 9: taxes will start in April twenty twenty five, a windfall

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Speaker 9: tax of the profits engine gas companies, a rise three

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Speaker 9: percent from November, and a warning of quote further difficult

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Speaker 9: decisions to come in the autumn budget. It really was

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Speaker 9: quite a blockbuster speech yesterday.

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Speaker 1: Yes, some people said, you know, Reeves was the right

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Speaker 1: to feel quite cross. Does the reality though, of the

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Speaker 1: numbers then further damage the Conservative Party? They're looking for

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Speaker 1: a new leader and what does it do to them

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Speaker 1: as they assessed their fourteen years in power?

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Speaker 9: I mean, for the record, they are quibbling these numbers.

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Speaker 2: Chancellor.

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Speaker 9: Former Chancellor Jeremy Hunt has written to Simon Case, who's

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Speaker 9: the head of the Civil Service, to say, excuse me,

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Speaker 9: just a few weeks ago the civil service signed off

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Speaker 9: on a lot of these numbers and didn't bring these

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Speaker 9: questions up. And so they are going to challenge a

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Speaker 9: lot of this stuff. It will be interesting to see

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Speaker 9: how that plays out. It will also be interesting to

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Speaker 9: see how the public takes the stuff. A lot of

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Speaker 9: what Rachel reason anounced yesday was not in their manifesto.

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Speaker 9: Now again, many think tanks have pointed out that there

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Speaker 9: were bits they could have foreseen. So the public sector

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Speaker 9: increases on wage those up of five to six percent,

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Speaker 9: that is something that someone could have taken educating guess

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Speaker 9: about some of these overspends. It would be very hard

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Speaker 9: to have known about. So I will wait to see

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Speaker 9: where the public lands on this issue in terms of polling. Frankly,

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Speaker 9: but for the Conservative Party with six leadership candidates to

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Speaker 9: go basically how they digest it to.

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Speaker 2: Yeah, I mean you could suppose you could also argue

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Speaker 2: they've already been punished by voters of the ballot box

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Speaker 2: and the election too. But as you say, James will

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Speaker 2: wait to see where they continued to reaction to that

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Speaker 2: is James Walcock, our UK politics reporter, Thank you very much.

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Speaker 1: Well now to US politics and whether Donald Trump and

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Speaker 1: Kamala Harris will hold a head to head debate before

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Speaker 1: November's election. This is the field of Harris's running mates

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Speaker 1: narrows the North Carolina Governor Roy Cooper dropping out. Our

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Speaker 1: Breaking News Managing editor Derek Wallbank is with us for more.

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Speaker 1: Good Morning, Derek. Donald Trump had been due to debate

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Speaker 1: Joe Biden in September, but there's been a question mark

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Speaker 1: really about that since Biden dropped out. What has Trump

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Speaker 1: been saying about a potential debate with Vice Persident Kamala Harris.

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Speaker 10: Well, you're right, and I think the one thing that

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Speaker 10: we do know for sure is that Donald Trump will

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Speaker 10: not be debating Joe Biden in September. Everything else is

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Speaker 10: a bit up in the air, right There had been

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Speaker 10: a thought from the Harris camp all right, well, we'll

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Speaker 10: just slot right into that and that'll be fine. And

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Speaker 10: then we've been getting over the last let's say days,

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Speaker 10: indications from the Trump camp that that wasn't going to

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Speaker 10: be quite such smooth sailing. They originally said that they

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Speaker 10: couldn't finalize anything until Harris was the nominee. That process

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Speaker 10: is almost locked up now. There had been some suggestions

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Speaker 10: in the Trump camp that they might want a different venue,

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Speaker 10: they might want different moderators, maybe a different network entirely

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Speaker 10: Fox News instead of ABC, things like that, and so

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Speaker 10: you're you're sort of looking at a kind of permission

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Speaker 10: structure to not have that. At the same time, Kamala

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Speaker 10: Harris's campaign and Harris herself have shot back with a

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Speaker 10: really simple rhetorical, which is basically, you're scared she has

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Speaker 10: been waging a much more forceful campaign against Trumps. In

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Speaker 10: her campaign's infancy, you see Democratic proxies all over every

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Speaker 10: cable news show that we'll have them calling the Republicans

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Speaker 10: weird literally their word weird. And so this just sort

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Speaker 10: of goes right into it where Harris is basically saying,

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Speaker 10: if you're trying to find all of these reasons not

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Speaker 10: to debate me, maybe it's just because you're scared of

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Speaker 10: not debating me.

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Speaker 2: So that rumbles on on the Democratic side, though, we

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Speaker 2: have no one person who won't be Kamona Harris as

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Speaker 2: running mate, and that's why Cooper, the North Carolina governor,

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Speaker 2: because he's dropped out. Who are the other possibilities we

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Speaker 2: should be watching, Well.

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Speaker 10: We're sort of looking at a trio that seems to

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Speaker 10: have emerged a little bit. Josh Shapiro, the governor of Pennsylvania,

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Speaker 10: Mark Kelly, the former astronaut now senator in Arizona, and

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Speaker 10: Tim Wall's former school teacher and former enlisted military man

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Speaker 10: who is now the governor of Minnesota. Of those, you'd

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Speaker 10: figure that Shapiro right now is leading in the betting

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Speaker 10: markets as the most likely pick. Part of that is

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Speaker 10: due to the fact that he is maybe the most

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Speaker 10: popular politician in the most critical swing state of Pennsylvania.

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Speaker 10: The person who's been rising the most recently is Walls.

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Speaker 10: Walls is the person who, you know, kind of I

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Speaker 10: wouldn't say came up with, but certainly popularized the let's

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Speaker 10: call them weird attack that Democrats are currently enjoying. And

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Speaker 10: so it's a little bit of a you know, what

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Speaker 10: sort of flavor do you want to go with. There's

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Speaker 10: a lot of things that go into this. It's not

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Speaker 10: just winning an election. You have to govern, and Harris

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Speaker 10: as a vice president, will have a very good idea

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Speaker 10: of what she wants in that role.

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