WEBVTT - Auto Workers Strike, Airport Redesign & iPhone Radiation

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

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<v Speaker 1>This is the BlueBag Day Recurate podcast. I'm Caroline Hepka.

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

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<v Speaker 2>one hundred and fifty thousand US auto workers goes on strike,

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<v Speaker 2>hitting three of the country's biggest car makers.

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<v Speaker 1>Arms shehes jumped by twenty five percent as this year's

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<v Speaker 1>biggest IPO takes off.

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<v Speaker 2>And we take a closer look at However, wilder weather

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<v Speaker 2>swings have forced a complete redesign of some of the

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<v Speaker 2>world's busiest airports.

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<v Speaker 1>Let's start with a round up of our top stories.

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<v Speaker 2>Workers at America's biggest auto union have gone on strike

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<v Speaker 2>after a deadline to agree a deal with three major

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<v Speaker 2>car makers. Past, GM, Ford and Stillantis are currently offering

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<v Speaker 2>pay rises of up to twenty percent over four and

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<v Speaker 2>a half years, but the United Auto Workers once thirty

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<v Speaker 2>six percent union represents one hundred and fifty thousand workers.

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<v Speaker 2>Speaking before the deadline passed, its president Sean Fain, made

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<v Speaker 2>clear they would not be backing down.

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<v Speaker 3>If we need to go all out, we will.

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<v Speaker 2>Everything is on the table. One study suggests that even

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<v Speaker 2>a ten day strike by Sean Fain's UAW Union could

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<v Speaker 2>cast the US economy five point six billion dollars in

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<v Speaker 2>last output and push the state of Michigan into recession.

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<v Speaker 1>Shares in the UK based chip designer ARM have climbed

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<v Speaker 1>twenty five percent after the year's biggest stock listing. Though

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<v Speaker 1>ARM isn't well known amongst consumers, its technology is almost

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<v Speaker 1>in every smartphone. The UK government failed in its bid

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<v Speaker 1>to convince the firm, though to list in London, but

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<v Speaker 1>the company's CEO Rene Haas has told Bloomberger that he

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<v Speaker 1>is open to the idea of a secondary listing in Britain.

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<v Speaker 4>Yeah, so today obviously we're in New York, but we're

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<v Speaker 4>incredibly proud of our UK heritage and we are opening

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<v Speaker 4>to considering that down the road.

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<v Speaker 1>Has added that he's confident that the company's growth will

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<v Speaker 1>be sustained. The IPO raised close to five billion dollars

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<v Speaker 1>for investment firm soft Bank, which still owns ninety percent

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<v Speaker 1>of ARM.

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<v Speaker 2>China's economy is picking up steam as a summer travel

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<v Speaker 2>boom and Beijing stimulus measures have helped to boost consumer

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<v Speaker 2>spending and factory output. Industrial and realist retail sales growth

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<v Speaker 2>jumped in August from a year earlier, far exceeding expectations.

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<v Speaker 2>PBOC left its key policy rate on changed while injecting

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<v Speaker 2>cash into the market for the tenth consecutive month. Still,

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<v Speaker 2>weakness in the property market remains as prices continue to decline.

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<v Speaker 1>The European Central Bank has raised interest rates for the

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<v Speaker 1>tenth time in a row, announcing the move to four percent.

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<v Speaker 1>ECB President Christine the God signaled a shift in gear

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<v Speaker 1>that could mean the peak has been reached.

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<v Speaker 5>The focus is probably going to move a bit more

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<v Speaker 5>to the duration, but it is not to say, because

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<v Speaker 5>we can't say that now that we are at peak.

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<v Speaker 1>Many economists and investors has thought that a four percent

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<v Speaker 1>base rate would be the high water mark. The central

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<v Speaker 1>bank new outlook for economic growth shows markedly softer expansion

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<v Speaker 1>and inflation staying above two percent until the end of

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<v Speaker 1>twenty twenty five. For Europe. Markets have also brought forward

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<v Speaker 1>pricing now the first twenty five basis point ECB rate

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

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<v Speaker 2>The US President's son has been charged with unlawfully purchasing

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<v Speaker 2>of firearm as a legal issues muddy his father's bid

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<v Speaker 2>for re election. After Hunter Biden's plea deal imploded earlier

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<v Speaker 2>this year, prosecutors have begun to file a case against him.

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<v Speaker 2>Democratic Congressman Jamie Raskin says backing the courts should be

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<v Speaker 2>a bipartisan issue.

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<v Speaker 4>We can all applaud the fact when the system in

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<v Speaker 4>the courts is working and the justice system is working.

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<v Speaker 4>And you know, I don't think people should applaud the

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<v Speaker 4>system when it works for Hunter Biden, but then try

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<v Speaker 4>to tear the system down when it works for Donald Trump.

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<v Speaker 2>Maryland Representative and law professor Jamie Raskin reacting there to

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<v Speaker 2>Republicans who are calling for more charges to be brought

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<v Speaker 2>against Hunter Biden. The team investigating his Biden's son have

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<v Speaker 2>signaled that they are considering bringing more serious charges for

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<v Speaker 2>alleged failures to report millions of dollars in income, including

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<v Speaker 2>from China and Ukraine.

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<v Speaker 1>And lastly, Apple is facing a controversy in France over

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<v Speaker 1>the iPhone twelve's radiation levels. Bluemoker has learned that it

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<v Speaker 1>has advised its tech support staff not to volunteer any

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<v Speaker 1>information to customers if they raise the issue. It comes

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<v Speaker 1>as the French government asks Apple earlier this week to

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<v Speaker 1>see sales of the iPhone twelve because tests showed that

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<v Speaker 1>the device emits electromagnetic waves that are too strong. Apple

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<v Speaker 1>rebutted the claims and said that it would engage with

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<v Speaker 1>France to show that the iPhone twelve is compliant. Seems

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<v Speaker 1>that we have a theme this week of the most

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<v Speaker 1>weird and wonderful jobs that there might be out there

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<v Speaker 1>for you. NASA has named a new person who's going

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<v Speaker 1>to be in charge of UFOs, basically trying to find

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<v Speaker 1>a sign scientific evidence based approach to understanding unexplained events

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

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<v Speaker 1>it seems to perhaps a global one, but now there's

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<v Speaker 1>going to be one person sort of solely in charge

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<v Speaker 1>of looking at it at NASA.

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<v Speaker 2>Interestingly, they won't name the person, which is perhaps other

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<v Speaker 2>email inbox isn't filled with their reports from people around

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<v Speaker 2>the world. But it is someoney who has worked in

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<v Speaker 2>the position for a while, according to NASA, and then

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<v Speaker 2>they went on to name him after that, after saying

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<v Speaker 2>they wouldn't originally. And Mark McInerney is the man. So

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<v Speaker 2>I mean, this is going to be a very interesting

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<v Speaker 2>position to watch to see what I wonder.

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<v Speaker 1>Why, because for decades NASA has tried to ignore some

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<v Speaker 1>perhaps sometimes unexplained, at least pubjects publicly unexplained objects in

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<v Speaker 1>the sky. But then they started asking, you know, sourcing

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<v Speaker 1>the public for information about it, and they want to

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<v Speaker 1>have apparently a conversation that is less sensational and more

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<v Speaker 1>about science. So yeah, there you go, strange and interesting

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<v Speaker 1>jobs in the world.

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<v Speaker 2>Yeah, in our basket of strange interesting jobs of this week.

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<v Speaker 2>Let's turn next to get the latest on that move,

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<v Speaker 2>the thousands of members of the United Auto Workers who've

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<v Speaker 2>gone on strike at selected General Motors, Ford and Stillantis

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<v Speaker 2>plants in the United States. This comes after the union

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<v Speaker 2>and automakers fail to reach a deal on a new

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

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<v Speaker 2>in studio for more on this story. CREATI great to

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<v Speaker 2>have you with us. What exactly has happened? The deadline

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<v Speaker 2>has passed.

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

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<v Speaker 3>in Detroit, Michigan and Missouri, and a lot of these

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<v Speaker 3>carmaker plants across the United States. But mind you, it

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<v Speaker 3>is the middle of the night and basically plants. Workers

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<v Speaker 3>have quite literally walked off of the property and started picketing,

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<v Speaker 3>including the president of the United Auto Workers Union, Sean

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<v Speaker 3>Fain himself. Now he's the one who declared the strike,

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<v Speaker 3>he's the one who's been in the bargaining table with

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<v Speaker 3>gm Ford Stalantis. But he's representing about one hundred and

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<v Speaker 3>fifty thousand people, mostly concentrated in Detroit, Michigan. But let

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<v Speaker 3>me just kind of emphasize the scale of how big

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<v Speaker 3>of a deal this is if the strike goes on

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

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<v Speaker 3>It's been about two hours since that declaration has been made.

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<v Speaker 3>If the strike goes on long enough, economists has said,

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<v Speaker 3>not only will Detroit perhaps face the recession, the city

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<v Speaker 3>of Detroit, but the entire state of Michigan that is

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<v Speaker 3>in the top ten GDP contributors to the entire American economy.

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

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<v Speaker 3>it affects people right here at home as well, in

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<v Speaker 3>Europe and in London as well, and arguably in China.

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<v Speaker 3>And the CEO of Mercedes Benz made a really great point.

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<v Speaker 3>This changes the cost of labor because when you take

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<v Speaker 3>one hundred and fifty thousand people out of the supply

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<v Speaker 3>of labor. You are suddenly not only paying higher wages,

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

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<v Speaker 3>show up in how much a consumer pays for a vehicle.

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<v Speaker 1>How the company is then reacting and responding to this,

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<v Speaker 1>it's obviously after a series of negotiations.

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<v Speaker 3>Yeah, well, Stalantis was the first to respond. And look,

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

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<v Speaker 3>only one company of the three that is not actually

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<v Speaker 3>American in Detroit, right, this is a European company. And

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<v Speaker 3>we've had CEO Carlos Tavaz on the network multiple times

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<v Speaker 3>and one of the criticisms of that was that he

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<v Speaker 3>wasn't as involved in the negotiations with the union. So

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<v Speaker 3>his very first commentary was that he was disappointed that

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<v Speaker 3>the UAW wasn't willing to engage. But again, the UAW

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<v Speaker 3>has made the point that Carlos Tavaraz wasn't willing to

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<v Speaker 3>engage by making the trip to Detroit. So there are

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<v Speaker 3>two sides to the story here. The commentary Stalanta's made

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<v Speaker 3>as they are in contingency mode, they are preparing for

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<v Speaker 3>the worst. They're expecting this to go much much longer,

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<v Speaker 3>and and it very well could.

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<v Speaker 2>What what could be the impact of this down the

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<v Speaker 2>line obviously say we're in the early hours of this

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<v Speaker 2>as well, but disruption to these lie these lines of

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<v Speaker 2>production could be huge.

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<v Speaker 3>Massive, absolutely massive. And FOURD and GM are really going

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<v Speaker 3>to take the brunt of it here simply because of

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<v Speaker 3>the presence that they have in the United States as well.

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<v Speaker 3>I think the timeline really matters here because look at

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<v Speaker 3>what the negotiating terms actually were. The union came out

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<v Speaker 3>and said came out was swinging really and said over

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<v Speaker 3>the next four and a half year contract, a forty

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<v Speaker 3>six percent pay raise.

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<v Speaker 1>That is a staggering that's a lot.

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<v Speaker 5>Yeah, that is a.

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<v Speaker 3>Lot for even the highest of achievers. But that has

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<v Speaker 3>still been negotiated down to about thirty six percent. And

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<v Speaker 3>GM ford have come out and said, look, we'll give

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<v Speaker 3>you twenty percent over four and a half years, which

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<v Speaker 3>again is not a number of scoff app but is

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<v Speaker 3>still significantly lower than what they're asking for at thirty

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<v Speaker 3>six percent. So seeing a lot of pain there.

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<v Speaker 1>Yeah, absolutely, But I suppose you know, low unemployment, high

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<v Speaker 1>inflation means really quiet eyewatering numbers. I mean, I suppose

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<v Speaker 1>the other thing is the impact on electric vehicle makers.

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<v Speaker 1>This is the great change that the US is making

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<v Speaker 1>the rest of the world is meant to be making.

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<v Speaker 1>I mean, I remember back in the day when I

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<v Speaker 1>was living in the US and we had the Great

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<v Speaker 1>Financial Crisis, and you know, Obama bailing out Detroit effectively

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<v Speaker 1>having to help out those those huge names because there

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<v Speaker 1>was so many difficulties for them. Massively important industry for

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<v Speaker 1>the US.

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<v Speaker 3>Oh massively. And you know, these blue collar workers really

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<v Speaker 3>take it as a point of pride. So it's not

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<v Speaker 3>just about the money here or or the working conditions.

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<v Speaker 3>It really is about this kind of industry that they've

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<v Speaker 3>built with their hands. And I would argue, I mean,

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

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<v Speaker 3>when you think of electric vehicles, a lot of that

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<v Speaker 3>process is automated, a lot of that process has to

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<v Speaker 3>do with engineering with batteries, not necessarily physical manual labor

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<v Speaker 3>or design, for example, And that's really where you start

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<v Speaker 3>to see the structural shift in the auto industry really

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<v Speaker 3>take hold. And that's of course one of the concerns

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

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<v Speaker 3>that happen across the country in Hollywood, you're seeing that

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<v Speaker 3>in shipping, You're seeing that in Wall Street, You're even

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<v Speaker 3>seeing that in Silicon Valley.

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<v Speaker 6>So this is a.

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<v Speaker 3>True labor movement that really couldn't have this large of

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<v Speaker 3>an effect if you weren't seeing it in every industry

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<v Speaker 3>in every part of the country.

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<v Speaker 2>What about the political ramifications of this as well, because

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<v Speaker 2>for obviously this is something that's going to be brought

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<v Speaker 2>up both in election campaigns but also democratic prisments in

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<v Speaker 2>the white How important is that in this background.

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<v Speaker 3>It's really interesting actually because the UAW, when you think

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<v Speaker 3>of Democrats versus Republicans, Democrats traditionally favor unions. Republicans traditionally

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<v Speaker 3>favorite kind of corporations and fewer regulations and things like that.

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<v Speaker 3>A lot of union workers had actually voted for President Biden.

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<v Speaker 3>That's not surprising. The UAW specifically has not endorsed President

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<v Speaker 3>Biden in the reelection for twenty twenty four, which is

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<v Speaker 3>really interesting because most unions do they lean Democrat. So

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<v Speaker 3>you've actually seen President Traumas some of the other Republican

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<v Speaker 3>candidates go after the UAW and say, hey, will you

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<v Speaker 3>endorse us instead? In one hundred and fifty thousand votes

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<v Speaker 3>in Detroit in Michigan. That's not something to scoff at

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<v Speaker 3>and could really change the entire game of how the

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<v Speaker 3>election works out in a year.

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<v Speaker 1>Yeah, absolutely so interesting, CHRITTI, thank you so much for

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<v Speaker 1>being with us on Bloomberg BAJ this morning. Bloeberg's Pretty

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<v Speaker 1>so to a story about airports across the world. They

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<v Speaker 1>are making changes to their runways and other infrastructure in

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<v Speaker 1>order to adapt to increasingly extreme weather conditions as climate

0:11:55.480 --> 0:11:58.960
<v Speaker 1>change takes its toll. Bloomberg's Aerospace with Paul To Kate

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

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<v Speaker 1>thanks for your time. How is climate change then having

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<v Speaker 1>an impact on airports?

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<v Speaker 6>So, what we're seeing is that climate change is having

0:12:10.679 --> 0:12:13.840
<v Speaker 6>a profound impact on airports, so much so that it

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<v Speaker 6>can sometimes disrupt air travel by causing delays and cancelations.

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<v Speaker 6>And the extreme weather conditions derived from climate change include

0:12:23.840 --> 0:12:29.480
<v Speaker 6>higher precipitation levels, storm surges, higher temperatures, and this could

0:12:29.520 --> 0:12:34.240
<v Speaker 6>all destroy airport infrastructure over time. So, for example, the

0:12:34.520 --> 0:12:38.600
<v Speaker 6>London looton Airport's runway last year during the heat wave

0:12:38.720 --> 0:12:43.520
<v Speaker 6>suffered a surface defect, and more recently, sudden rainfall in

0:12:43.640 --> 0:12:48.400
<v Speaker 6>Frankfurt's airport caused the airfield to flood, making it almost

0:12:48.440 --> 0:12:50.839
<v Speaker 6>making it look like planes were parked in a lake.

0:12:51.400 --> 0:12:57.959
<v Speaker 6>And meanwhile, over in Alaska, underlying permafrost is thawing due

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<v Speaker 6>to higher temperatures, drawing runways and roads as well. So

0:13:02.600 --> 0:13:06.040
<v Speaker 6>this isn't just specified to airports in one corner of

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<v Speaker 6>the world. This is all over.

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<v Speaker 2>How urgent is this issue? And I suppose how widespread

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<v Speaker 2>are we talking? You mentioned some of the diverse locations there,

0:13:15.000 --> 0:13:17.480
<v Speaker 2>but I suppose how many airports are really looking at this?

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<v Speaker 6>Yeah, so those are some of the airports that I

0:13:21.000 --> 0:13:24.240
<v Speaker 6>spoke to. But there's no doubt that the aviation industry

0:13:24.520 --> 0:13:29.400
<v Speaker 6>is taking the matter extremely seriously. So eurice Control, for example,

0:13:29.520 --> 0:13:33.840
<v Speaker 6>that's the European Airspace Coordinator, has called on airports as

0:13:33.880 --> 0:13:37.720
<v Speaker 6>well as airlines to adapt to the more frequent weather

0:13:37.760 --> 0:13:42.000
<v Speaker 6>conditions that we are seeing. While the Portable Authority of

0:13:42.080 --> 0:13:44.960
<v Speaker 6>New York and New Jersey they said that they're on

0:13:45.160 --> 0:13:48.839
<v Speaker 6>very high alert because of the threats of climate change,

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

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<v Speaker 6>that the issue affects different latitudes, which is why it's

0:13:56.360 --> 0:14:00.640
<v Speaker 6>so prevalent, and it's obviously important to keep global air

0:14:00.679 --> 0:14:05.240
<v Speaker 6>traffic flowing, keep it smooth. And if airports don't adapt

0:14:05.440 --> 0:14:08.400
<v Speaker 6>to the weather extremes in their climate, this could leave

0:14:08.440 --> 0:14:13.760
<v Speaker 6>them exposed to damage and disruption and obviously forcing delays

0:14:13.760 --> 0:14:15.120
<v Speaker 6>and cancelations.

0:14:15.720 --> 0:14:18.560
<v Speaker 1>What are airports doing about it then, and also obviously

0:14:18.600 --> 0:14:20.280
<v Speaker 1>the costs must be significant.

0:14:22.040 --> 0:14:26.640
<v Speaker 6>Yeah, So different airports are making different adaptations according to

0:14:26.920 --> 0:14:31.760
<v Speaker 6>the climatic changes that they're experiencing. So in Alaska, one

0:14:31.760 --> 0:14:36.000
<v Speaker 6>of the measures that they've been implemented is slotting insulation

0:14:36.120 --> 0:14:40.040
<v Speaker 6>into the ground to thermally protect the permafrost because when

0:14:40.040 --> 0:14:44.960
<v Speaker 6>it thaws, as I said, this can destroy runways and roads.

0:14:45.880 --> 0:14:48.720
<v Speaker 6>And in New York, the port is looking to elevate

0:14:48.840 --> 0:14:52.000
<v Speaker 6>or relocate buildings to other areas of the airport which

0:14:52.040 --> 0:14:55.640
<v Speaker 6>are less flood like prone. And that's because a lot

0:14:55.640 --> 0:14:59.400
<v Speaker 6>of New York airports are low lying and near bodies

0:14:59.440 --> 0:15:03.640
<v Speaker 6>of water, so whenever there's increased precipitation or storm surges,

0:15:04.280 --> 0:15:07.520
<v Speaker 6>this can increase the risk of flooding. And in fact,

0:15:07.680 --> 0:15:12.680
<v Speaker 6>JFK is undergoing a nineteen billion dollar transformation and part

0:15:12.760 --> 0:15:17.840
<v Speaker 6>of that includes adaptations to climate change, such as flood doors,

0:15:18.840 --> 0:15:23.560
<v Speaker 6>whereas closer to home we're having different issues. So in France,

0:15:23.800 --> 0:15:26.800
<v Speaker 6>Nice Airport has cut back on the amount of industrial

0:15:26.840 --> 0:15:29.800
<v Speaker 6>water that it uses for cleaning because of a lack

0:15:29.880 --> 0:15:34.240
<v Speaker 6>of water and higher temperatures, and ship Or Airport in

0:15:34.320 --> 0:15:38.840
<v Speaker 6>Amsterdam is tackling the blazing heat by creating shadowed areas

0:15:39.280 --> 0:15:44.160
<v Speaker 6>and also tackling the high precipitation by redesigning runways so

0:15:44.600 --> 0:15:48.240
<v Speaker 6>they're elevated slightly in the center and then slope down

0:15:48.320 --> 0:15:52.960
<v Speaker 6>towards the sides. So there's different adaptations for different airports.

0:15:53.000 --> 0:15:56.400
<v Speaker 6>But in terms of costs, I mean it's not cheap.

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0:16:01.560 --> 0:16:04.120
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