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Speaker 1: Good morning. It's Friday, the fifteenth of September here in London.

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Speaker 1: This is the BlueBag Day Recurate podcast. I'm Caroline Hepka.

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Speaker 2: And I'm Stephen Carroll. Coming up today, a union representing

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Speaker 2: one hundred and fifty thousand US auto workers goes on strike,

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Speaker 2: hitting three of the country's biggest car makers.

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Speaker 1: Arms shehes jumped by twenty five percent as this year's

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Speaker 1: biggest IPO takes off.

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Speaker 2: And we take a closer look at However, wilder weather

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Speaker 2: swings have forced a complete redesign of some of the

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Speaker 2: world's busiest airports.

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

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Speaker 2: Workers at America's biggest auto union have gone on strike

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Speaker 2: after a deadline to agree a deal with three major

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Speaker 2: car makers. Past, GM, Ford and Stillantis are currently offering

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Speaker 2: pay rises of up to twenty percent over four and

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Speaker 2: a half years, but the United Auto Workers once thirty

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Speaker 2: six percent union represents one hundred and fifty thousand workers.

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Speaker 2: Speaking before the deadline passed, its president Sean Fain, made

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Speaker 2: clear they would not be backing down.

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Speaker 3: If we need to go all out, we will.

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Speaker 2: Everything is on the table. One study suggests that even

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Speaker 2: a ten day strike by Sean Fain's UAW Union could

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Speaker 2: cast the US economy five point six billion dollars in

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Speaker 2: last output and push the state of Michigan into recession.

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Speaker 1: Shares in the UK based chip designer ARM have climbed

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Speaker 1: twenty five percent after the year's biggest stock listing. Though

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Speaker 1: ARM isn't well known amongst consumers, its technology is almost

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Speaker 1: in every smartphone. The UK government failed in its bid

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Speaker 1: to convince the firm, though to list in London, but

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Speaker 1: the company's CEO Rene Haas has told Bloomberger that he

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Speaker 1: is open to the idea of a secondary listing in Britain.

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Speaker 4: Yeah, so today obviously we're in New York, but we're

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Speaker 4: incredibly proud of our UK heritage and we are opening

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Speaker 4: to considering that down the road.

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Speaker 1: Has added that he's confident that the company's growth will

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Speaker 1: be sustained. The IPO raised close to five billion dollars

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Speaker 1: for investment firm soft Bank, which still owns ninety percent

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Speaker 1: of ARM.

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Speaker 2: China's economy is picking up steam as a summer travel

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Speaker 2: boom and Beijing stimulus measures have helped to boost consumer

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Speaker 2: spending and factory output. Industrial and realist retail sales growth

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Speaker 2: jumped in August from a year earlier, far exceeding expectations.

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Speaker 2: PBOC left its key policy rate on changed while injecting

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Speaker 2: cash into the market for the tenth consecutive month. Still,

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Speaker 2: weakness in the property market remains as prices continue to decline.

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Speaker 1: The European Central Bank has raised interest rates for the

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Speaker 1: tenth time in a row, announcing the move to four percent.

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Speaker 1: ECB President Christine the God signaled a shift in gear

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Speaker 1: that could mean the peak has been reached.

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Speaker 5: The focus is probably going to move a bit more

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Speaker 5: to the duration, but it is not to say, because

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Speaker 5: we can't say that now that we are at peak.

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Speaker 1: Many economists and investors has thought that a four percent

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Speaker 1: base rate would be the high water mark. The central

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Speaker 1: bank new outlook for economic growth shows markedly softer expansion

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Speaker 1: and inflation staying above two percent until the end of

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Speaker 1: twenty twenty five. For Europe. Markets have also brought forward

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Speaker 1: pricing now the first twenty five basis point ECB rate

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Speaker 1: cut to dune next year. In the wake of Legard's comments.

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Speaker 2: The US President's son has been charged with unlawfully purchasing

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Speaker 2: of firearm as a legal issues muddy his father's bid

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Speaker 2: for re election. After Hunter Biden's plea deal imploded earlier

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Speaker 2: this year, prosecutors have begun to file a case against him.

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Speaker 2: Democratic Congressman Jamie Raskin says backing the courts should be

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Speaker 2: a bipartisan issue.

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Speaker 4: We can all applaud the fact when the system in

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Speaker 4: the courts is working and the justice system is working.

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Speaker 4: And you know, I don't think people should applaud the

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Speaker 4: system when it works for Hunter Biden, but then try

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Speaker 4: to tear the system down when it works for Donald Trump.

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Speaker 2: Maryland Representative and law professor Jamie Raskin reacting there to

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Speaker 2: Republicans who are calling for more charges to be brought

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Speaker 2: against Hunter Biden. The team investigating his Biden's son have

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Speaker 2: signaled that they are considering bringing more serious charges for

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Speaker 2: alleged failures to report millions of dollars in income, including

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Speaker 2: from China and Ukraine.

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Speaker 1: And lastly, Apple is facing a controversy in France over

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Speaker 1: the iPhone twelve's radiation levels. Bluemoker has learned that it

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Speaker 1: has advised its tech support staff not to volunteer any

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Speaker 1: information to customers if they raise the issue. It comes

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Speaker 1: as the French government asks Apple earlier this week to

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Speaker 1: see sales of the iPhone twelve because tests showed that

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Speaker 1: the device emits electromagnetic waves that are too strong. Apple

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Speaker 1: rebutted the claims and said that it would engage with

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Speaker 1: France to show that the iPhone twelve is compliant. Seems

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Speaker 1: that we have a theme this week of the most

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Speaker 1: weird and wonderful jobs that there might be out there

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Speaker 1: for you. NASA has named a new person who's going

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Speaker 1: to be in charge of UFOs, basically trying to find

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Speaker 1: a sign scientific evidence based approach to understanding unexplained events

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Speaker 1: in the sky. We all know that it's a US obsession,

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Speaker 1: it seems to perhaps a global one, but now there's

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Speaker 1: going to be one person sort of solely in charge

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Speaker 1: of looking at it at NASA.

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Speaker 2: Interestingly, they won't name the person, which is perhaps other

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Speaker 2: email inbox isn't filled with their reports from people around

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Speaker 2: the world. But it is someoney who has worked in

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Speaker 2: the position for a while, according to NASA, and then

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Speaker 2: they went on to name him after that, after saying

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Speaker 2: they wouldn't originally. And Mark McInerney is the man. So

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Speaker 2: I mean, this is going to be a very interesting

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Speaker 2: position to watch to see what I wonder.

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Speaker 1: Why, because for decades NASA has tried to ignore some

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Speaker 1: perhaps sometimes unexplained, at least pubjects publicly unexplained objects in

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Speaker 1: the sky. But then they started asking, you know, sourcing

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Speaker 1: the public for information about it, and they want to

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Speaker 1: have apparently a conversation that is less sensational and more

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Speaker 1: about science. So yeah, there you go, strange and interesting

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Speaker 1: jobs in the world.

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Speaker 2: Yeah, in our basket of strange interesting jobs of this week.

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Speaker 2: Let's turn next to get the latest on that move,

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Speaker 2: the thousands of members of the United Auto Workers who've

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Speaker 2: gone on strike at selected General Motors, Ford and Stillantis

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Speaker 2: plants in the United States. This comes after the union

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Speaker 2: and automakers fail to reach a deal on a new

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Speaker 2: labor contract. We've got Bloomberg, Crity Goop too with us

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Speaker 2: in studio for more on this story. CREATI great to

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Speaker 2: have you with us. What exactly has happened? The deadline

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Speaker 2: has passed.

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Speaker 3: The deadline has passed. Look, there's picketing happening right now

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Speaker 3: in Detroit, Michigan and Missouri, and a lot of these

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Speaker 3: carmaker plants across the United States. But mind you, it

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Speaker 3: is the middle of the night and basically plants. Workers

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Speaker 3: have quite literally walked off of the property and started picketing,

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Speaker 3: including the president of the United Auto Workers Union, Sean

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Speaker 3: Fain himself. Now he's the one who declared the strike,

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Speaker 3: he's the one who's been in the bargaining table with

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Speaker 3: gm Ford Stalantis. But he's representing about one hundred and

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Speaker 3: fifty thousand people, mostly concentrated in Detroit, Michigan. But let

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Speaker 3: me just kind of emphasize the scale of how big

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Speaker 3: of a deal this is if the strike goes on

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Speaker 3: long enough, because we're in the what early hours of it,

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Speaker 3: It's been about two hours since that declaration has been made.

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Speaker 3: If the strike goes on long enough, economists has said,

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Speaker 3: not only will Detroit perhaps face the recession, the city

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Speaker 3: of Detroit, but the entire state of Michigan that is

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Speaker 3: in the top ten GDP contributors to the entire American economy.

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Speaker 3: That's how big of a deal this is. But look,

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Speaker 3: it affects people right here at home as well, in

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Speaker 3: Europe and in London as well, and arguably in China.

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Speaker 3: And the CEO of Mercedes Benz made a really great point.

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Speaker 3: This changes the cost of labor because when you take

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Speaker 3: one hundred and fifty thousand people out of the supply

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Speaker 3: of labor. You are suddenly not only paying higher wages,

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Speaker 3: you're looking for more people. And that's going to ultimately

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Speaker 3: show up in how much a consumer pays for a vehicle.

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Speaker 1: How the company is then reacting and responding to this,

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Speaker 1: it's obviously after a series of negotiations.

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Speaker 3: Yeah, well, Stalantis was the first to respond. And look,

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Speaker 3: Stalantis is a really interesting component here because it's the one,

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Speaker 3: only one company of the three that is not actually

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Speaker 3: American in Detroit, right, this is a European company. And

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Speaker 3: we've had CEO Carlos Tavaz on the network multiple times

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Speaker 3: and one of the criticisms of that was that he

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Speaker 3: wasn't as involved in the negotiations with the union. So

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Speaker 3: his very first commentary was that he was disappointed that

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Speaker 3: the UAW wasn't willing to engage. But again, the UAW

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Speaker 3: has made the point that Carlos Tavaraz wasn't willing to

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Speaker 3: engage by making the trip to Detroit. So there are

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Speaker 3: two sides to the story here. The commentary Stalanta's made

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Speaker 3: as they are in contingency mode, they are preparing for

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Speaker 3: the worst. They're expecting this to go much much longer,

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Speaker 3: and and it very well could.

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Speaker 2: What what could be the impact of this down the

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Speaker 2: line obviously say we're in the early hours of this

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Speaker 2: as well, but disruption to these lie these lines of

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Speaker 2: production could be huge.

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Speaker 3: Massive, absolutely massive. And FOURD and GM are really going

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Speaker 3: to take the brunt of it here simply because of

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Speaker 3: the presence that they have in the United States as well.

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Speaker 3: I think the timeline really matters here because look at

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Speaker 3: what the negotiating terms actually were. The union came out

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Speaker 3: and said came out was swinging really and said over

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Speaker 3: the next four and a half year contract, a forty

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Speaker 3: six percent pay raise.

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Speaker 1: That is a staggering that's a lot.

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Speaker 5: Yeah, that is a.

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Speaker 3: Lot for even the highest of achievers. But that has

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Speaker 3: still been negotiated down to about thirty six percent. And

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Speaker 3: GM ford have come out and said, look, we'll give

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Speaker 3: you twenty percent over four and a half years, which

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Speaker 3: again is not a number of scoff app but is

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Speaker 3: still significantly lower than what they're asking for at thirty

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Speaker 3: six percent. So seeing a lot of pain there.

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Speaker 1: Yeah, absolutely, But I suppose you know, low unemployment, high

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Speaker 1: inflation means really quiet eyewatering numbers. I mean, I suppose

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Speaker 1: the other thing is the impact on electric vehicle makers.

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Speaker 1: This is the great change that the US is making

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Speaker 1: the rest of the world is meant to be making.

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Speaker 1: I mean, I remember back in the day when I

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Speaker 1: was living in the US and we had the Great

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Speaker 1: Financial Crisis, and you know, Obama bailing out Detroit effectively

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Speaker 1: having to help out those those huge names because there

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Speaker 1: was so many difficulties for them. Massively important industry for

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Speaker 1: the US.

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Speaker 3: Oh massively. And you know, these blue collar workers really

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Speaker 3: take it as a point of pride. So it's not

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Speaker 3: just about the money here or or the working conditions.

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Speaker 3: It really is about this kind of industry that they've

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Speaker 3: built with their hands. And I would argue, I mean,

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Speaker 3: let's take a quick case study here, Tesla. For example,

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Speaker 3: when you think of electric vehicles, a lot of that

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Speaker 3: process is automated, a lot of that process has to

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Speaker 3: do with engineering with batteries, not necessarily physical manual labor

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Speaker 3: or design, for example, And that's really where you start

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Speaker 3: to see the structural shift in the auto industry really

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Speaker 3: take hold. And that's of course one of the concerns

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Speaker 3: on top of pay as well. But look, you're seeing

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Speaker 3: that happen across the country in Hollywood, you're seeing that

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Speaker 3: in shipping, You're seeing that in Wall Street, You're even

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Speaker 3: seeing that in Silicon Valley.

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Speaker 6: So this is a.

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Speaker 3: True labor movement that really couldn't have this large of

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Speaker 3: an effect if you weren't seeing it in every industry

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Speaker 3: in every part of the country.

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Speaker 2: What about the political ramifications of this as well, because

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Speaker 2: for obviously this is something that's going to be brought

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Speaker 2: up both in election campaigns but also democratic prisments in

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Speaker 2: the white How important is that in this background.

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Speaker 3: It's really interesting actually because the UAW, when you think

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Speaker 3: of Democrats versus Republicans, Democrats traditionally favor unions. Republicans traditionally

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Speaker 3: favorite kind of corporations and fewer regulations and things like that.

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Speaker 3: A lot of union workers had actually voted for President Biden.

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Speaker 3: That's not surprising. The UAW specifically has not endorsed President

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Speaker 3: Biden in the reelection for twenty twenty four, which is

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Speaker 3: really interesting because most unions do they lean Democrat. So

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Speaker 3: you've actually seen President Traumas some of the other Republican

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Speaker 3: candidates go after the UAW and say, hey, will you

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Speaker 3: endorse us instead? In one hundred and fifty thousand votes

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Speaker 3: in Detroit in Michigan. That's not something to scoff at

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Speaker 3: and could really change the entire game of how the

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Speaker 3: election works out in a year.

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Speaker 1: Yeah, absolutely so interesting, CHRITTI, thank you so much for

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Speaker 1: being with us on Bloomberg BAJ this morning. Bloeberg's Pretty

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Speaker 1: so to a story about airports across the world. They

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Speaker 1: are making changes to their runways and other infrastructure in

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Speaker 1: order to adapt to increasingly extreme weather conditions as climate

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Speaker 1: change takes its toll. Bloomberg's Aerospace with Paul To Kate

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Speaker 1: Duffy joins us for more on this story. Now, good morning, Kate,

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Speaker 1: thanks for your time. How is climate change then having

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Speaker 1: an impact on airports?

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Speaker 6: So, what we're seeing is that climate change is having

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Speaker 6: a profound impact on airports, so much so that it

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Speaker 6: can sometimes disrupt air travel by causing delays and cancelations.

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Speaker 6: And the extreme weather conditions derived from climate change include

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Speaker 6: higher precipitation levels, storm surges, higher temperatures, and this could

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Speaker 6: all destroy airport infrastructure over time. So, for example, the

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Speaker 6: London looton Airport's runway last year during the heat wave

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Speaker 6: suffered a surface defect, and more recently, sudden rainfall in

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Speaker 6: Frankfurt's airport caused the airfield to flood, making it almost

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Speaker 6: making it look like planes were parked in a lake.

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Speaker 6: And meanwhile, over in Alaska, underlying permafrost is thawing due

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Speaker 6: to higher temperatures, drawing runways and roads as well. So

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Speaker 6: this isn't just specified to airports in one corner of

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Speaker 6: the world. This is all over.

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Speaker 2: How urgent is this issue? And I suppose how widespread

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Speaker 2: are we talking? You mentioned some of the diverse locations there,

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Speaker 2: but I suppose how many airports are really looking at this?

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Speaker 6: Yeah, so those are some of the airports that I

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Speaker 6: spoke to. But there's no doubt that the aviation industry

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Speaker 6: is taking the matter extremely seriously. So eurice Control, for example,

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Speaker 6: that's the European Airspace Coordinator, has called on airports as

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Speaker 6: well as airlines to adapt to the more frequent weather

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Speaker 6: conditions that we are seeing. While the Portable Authority of

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Speaker 6: New York and New Jersey they said that they're on

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Speaker 6: very high alert because of the threats of climate change,

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Speaker 6: and from the airports I've spoken to, it's clear that

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Speaker 6: that the issue affects different latitudes, which is why it's

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Speaker 6: so prevalent, and it's obviously important to keep global air

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Speaker 6: traffic flowing, keep it smooth. And if airports don't adapt

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Speaker 6: to the weather extremes in their climate, this could leave

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Speaker 6: them exposed to damage and disruption and obviously forcing delays

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Speaker 6: and cancelations.

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Speaker 1: What are airports doing about it then, and also obviously

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Speaker 1: the costs must be significant.

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Speaker 6: Yeah, So different airports are making different adaptations according to

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Speaker 6: the climatic changes that they're experiencing. So in Alaska, one

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Speaker 6: of the measures that they've been implemented is slotting insulation

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Speaker 6: into the ground to thermally protect the permafrost because when

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Speaker 6: it thaws, as I said, this can destroy runways and roads.

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Speaker 6: And in New York, the port is looking to elevate

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Speaker 6: or relocate buildings to other areas of the airport which

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Speaker 6: are less flood like prone. And that's because a lot

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Speaker 6: of New York airports are low lying and near bodies

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Speaker 6: of water, so whenever there's increased precipitation or storm surges,

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Speaker 6: this can increase the risk of flooding. And in fact,

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Speaker 6: JFK is undergoing a nineteen billion dollar transformation and part

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Speaker 6: of that includes adaptations to climate change, such as flood doors,

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Speaker 6: whereas closer to home we're having different issues. So in France,

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Speaker 6: Nice Airport has cut back on the amount of industrial

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Speaker 6: water that it uses for cleaning because of a lack

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Speaker 6: of water and higher temperatures, and ship Or Airport in

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Speaker 6: Amsterdam is tackling the blazing heat by creating shadowed areas

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Speaker 6: and also tackling the high precipitation by redesigning runways so

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Speaker 6: they're elevated slightly in the center and then slope down

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Speaker 6: towards the sides. So there's different adaptations for different airports.

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Speaker 6: But in terms of costs, I mean it's not cheap.

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