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

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

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Speaker 1: you listen. It's Monday, the twenty first of October here

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Speaker 1: in London. I'm Caroline Hepki and.

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Speaker 2: I'm Stephen Carroll. Coming up today Israel's next steps. Netanya,

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Speaker 2: who hones his plan to strike Iran as Israel Targetshbela's

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Speaker 2: economic strongholds in Lebanon.

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Speaker 1: As China's banks cut their lending rates to boost the economy.

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Speaker 1: Muddy Waters founder Carson Block says he sees no sense

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Speaker 1: in putting money into the country.

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Speaker 2: Plus the big Green short why more hedge funds are

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Speaker 2: betting against the Green transition than on it.

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

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Speaker 2: Israel's Prime Minister Benjamin Netania, who has held a series

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Speaker 2: of meetings planning the next attack on Iran after a

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Speaker 2: Hezbella drone exploded next to his private home. The drone

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Speaker 2: was part of a large missile launch from Lebanon that

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Speaker 2: came two days after Israel announced the killing of her

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Speaker 2: mass leader Yaya Sinhwar. Iran has denied its involvement in

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Speaker 2: the Hesbela drone attack, but in an interview with Turkish

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Speaker 2: broadcaster NTV, Iranian Foreign Minister Abbass Aragachi warned against any strike.

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Speaker 3: The attack on Iran is our red line and we

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Speaker 3: do not tolerate it an attack on our nuclear facilities.

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Speaker 3: Every attack that takes place against us will be faced

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Speaker 3: with a similar attack from our side. Our reaction will

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Speaker 3: be similar to the attack that is done against us.

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Speaker 2: In the interview, Ira actually said there was a high

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Speaker 2: probability the war in Gaza and Lebanon spreads to the

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Speaker 2: wider Middle East. Israel's killing of Sinhwar, the Hamas leader,

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Speaker 2: was viewed by many as a potential turning point, but

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Speaker 2: in the days since combat has intentified with Hebella and

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Speaker 2: her mass Now.

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Speaker 1: China has cut its benchmark lending rates as part of

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Speaker 1: a series of measures aimed at reviving growth and halting

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Speaker 1: housing market declined. The one year loan prime rate was

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Speaker 1: lowered twenty five basis points to three point one percent,

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Speaker 1: more than any economy survey by Bloomberg had predicted. Despite

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Speaker 1: the shift, Muddy Waters found a Carton Block says he's

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Speaker 1: still not bullish on China.

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Speaker 4: China wants foreign capital right now. But the moment that

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Speaker 4: she feels that doesn't need it, or that the colss

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Speaker 4: of it outweigh the benefits, foreigners are going to be

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Speaker 4: horribly abused. Again this movie plays repeatedly.

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Speaker 1: Carson's comments come as other investors are making a beeline

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Speaker 1: for Chinese stocks as the economic outlook improves. Central Bank

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Speaker 1: has signaled more easing is on the cards.

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Speaker 2: Taiwan's leader says the island is looking towards nuclear power

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Speaker 2: to fuel its chip dominance. Public support for using reactors

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Speaker 2: in Taiwan plunged in twenty eleven when Japan was struck

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Speaker 2: by an earthquake that wrecked the Fukushima plant, but in

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Speaker 2: an exclusive interview with Bloomberg, Premier Ju Tie says he

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Speaker 2: thinks it would solve the issue of surging demand for

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Speaker 2: electricity from chip makers amid the ai boom.

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Speaker 5: We know that many other countries are actively developing various

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Speaker 5: forms of nuclear energy. The US is also developing new

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Speaker 5: nuclear technologies by twenty thirty. We hope that Taiwan can

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Speaker 5: also catch up with this global trend and the new

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Speaker 5: nuclear technologies.

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Speaker 2: Taiwan's leader Zuong Taie. They're speaking through a translator Taiwan's

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Speaker 2: efforts to bolster its energy security come after its government

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Speaker 2: announced plans in August to lift defense spending to a

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Speaker 2: record in twenty twenty five, the eighth straight year of increases.

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Speaker 1: New Bloomberg analysis of hedge fund data shows the fast

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Speaker 1: money on Wall Street is betting against clean energy and

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Speaker 1: green technology, despite vast green stimulus packages in the US,

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Speaker 1: Europe and China. More hedge funds are on average net

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Speaker 1: short on batteries, solar power, electric view and hydrogen, and

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Speaker 1: more funds are net long fossil fuels. That's according to

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Speaker 1: analysis of positions voluntarily disclosed by roughly five hundred hedge

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Speaker 1: funds to the data compiler Hazel Tree. The climate short

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Speaker 1: may prove more damaging than the political pushback over so

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Speaker 1: called woke capitalism.

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Speaker 2: In the United States. Kamala Harris has criticized Donald Trump's

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Speaker 2: use of swear words and vulgar language, saying profanity will

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Speaker 2: put voters off speaking. During an interview with Al Sharpton

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Speaker 2: an MSNBC, she said former President Trump needs to practice decorum.

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Speaker 2: Harris also made reference to Trump's addresses whilst campaigning in

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Speaker 2: Atlanta before the sit down, when he does.

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Speaker 6: Answer a question or speak at a rally. Have you

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Speaker 6: noticed he tends to.

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Speaker 5: Go off script and ramble.

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Speaker 6: And generally, for the life of him, cannot finish a thought.

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Speaker 2: Vice President Kamala Haara, speaking there, House speaker Mike Johnson,

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Speaker 2: dismissed Trump's remarks as some fun language that shouldn't distract

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Speaker 2: voters from his policy positions.

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Speaker 1: Hire In the UK, the NHS could be set for

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Speaker 1: an increase in funding. That says the Chancellor finalizes plans

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Speaker 1: ahead of the upcoming budgets. Pretty Biggitio at a Buyer

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Speaker 1: reports now.

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Speaker 7: Billions of pounds are expected to be set aside for

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Speaker 7: healthcare in next week's budget. The cash injection comes as

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Speaker 7: the NHS embarks on extensive reforms, according to anonymous government sources. Today,

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Speaker 7: Health Minister West Streeting is set to call for ideas

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Speaker 7: from the public for what he's calling the biggest national

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Speaker 7: conversation about the institution since its founding in nineteen forty eight.

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Speaker 7: In its manifesto, Labour pledged to create forty thousand extra

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Speaker 7: NHS appointments and operations a week. In a statement, Streeting

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Speaker 7: confirmed he has reached an agreement on healthcare funding with

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Speaker 7: the Chancellor Meanwhile, property website Right Move says buyer nerves

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Speaker 7: ahead of the budget announcement are dampening the usual seasonal

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Speaker 7: bounce in house prices in London. To he were out

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Speaker 7: of Bloomberg Radio in.

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Speaker 1: A moment, We're going to bring you the latest on

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Speaker 1: developments in the Middle East. Plus are reporting on how

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Speaker 1: hedge funds are piling up bets against the Green Transition.

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Speaker 1: But another story called Our Party this morning too, which

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Speaker 1: is our opinion columnist Howard, are you Anne talking about

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Speaker 1: tea specifically high tea.

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Speaker 2: Now as one of the Americans in London, although he has,

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Speaker 2: as he said, past his life in the UK test

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Speaker 2: which is where this question came up about exactly what

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Speaker 2: high tea is. And I didn't know this. I would

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Speaker 2: have thought, as Howard did as well, that it was

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Speaker 2: afternoon tea. But it's not.

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Speaker 1: It's equivalent of supper. Basically, you sit at that, you

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Speaker 1: sit at the table for high tea. So yeah, it's

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Speaker 1: considered like a dinner time thing. It's a bigger meal

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Speaker 1: than afternoon tea.

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Speaker 2: Yes, indeed, Howard, what essentially one needs to think which

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Speaker 2: these two these distinction scraps And essentially he said he

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Speaker 2: should roll them into one, but also making a broader

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Speaker 2: argument for how in fact the afternoon tea, which something

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Speaker 2: you know, the preserve of luxury hotels often here in London,

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Speaker 2: could be reformed, making it more perhaps about the tea,

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Speaker 2: you know, bringing in.

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Speaker 1: Yeah, no, I get what he's pointing. I don't think

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Speaker 1: that anybody in the UK really makes a distinction between

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Speaker 1: heid and afternoon tea anymore. But I do get what

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Speaker 1: he's pointing out, which is that that afternoon tea has

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Speaker 1: become very expensive and generally you know, get a soggy

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Speaker 1: sandwich and a really hard scoran, and actually it should

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Speaker 1: be much more about maybe the team specialist teas. Maybe

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Speaker 1: then you could be supporting tea growers for example, and

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Speaker 1: just make it a kind of more special, less overly

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Speaker 1: expensive past time.

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Speaker 2: Indeed, more on that of Bloomberg dot Com for it

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Speaker 2: slash Opinion to read Hard Try Yuan's piece on Hei t.

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Speaker 1: Now to the Middle East as well as Prime Minister

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Speaker 1: held a series of meetings with his top security advisors

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Speaker 1: to discuss their next move on Iran. This after a

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Speaker 1: hezbolo drone on Saturday targeted Benny minnett Na, who's home

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Speaker 1: our EMEA news director was in Matheson joins US Now

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Speaker 1: for more on this Good MORNINGZ. Does it look like

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Speaker 1: Israel is close to attacking Iran? What might we expect?

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Speaker 6: Well, it does sound like it. Israeli Prime Minister Benjamin

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Speaker 6: who met last night with some of his top security as.

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Speaker 6: They discussed a number of things, but among them was

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Speaker 6: this plan to respond to Iran for its ballistic missile

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Speaker 6: strike on Israel. So we're in that tit for tat

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Speaker 6: environment between them of direct action and NATTNO has made

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Speaker 6: clear it does plan to strike back. You know, the

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Speaker 6: question obviously is when and how we know. There are

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Speaker 6: reports of leaks of some of the planning and training

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Speaker 6: that's been going on. No doubt the actual involves striking

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Speaker 6: specific targets in Iran, most likely on the military side.

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Speaker 6: It does seem as though oil, particularly nuclear sites, maybe

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Speaker 6: off the table. The US knows what those plans are.

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Speaker 6: It's been leaning on Israel to not hit oil installations

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Speaker 6: or nucleo sites, but Israel's clearly getting to the point

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Speaker 6: it needs to do something. It's been some weeks now

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Speaker 6: since the ballistic missile strike. You know, what that shows

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Speaker 6: us is that it is actually taking some cues from

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Speaker 6: the US, still deliberating and trying to think of a

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Speaker 6: response that will send a message without triggering a full

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Speaker 6: blown wall.

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Speaker 2: So of course we're waiting to see how Israel chooses

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Speaker 2: to move in that direction. But we did have further

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Speaker 2: strikes on Hesbela targets over the weekend, notably in Lebanon,

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Speaker 2: hitting a financial institution that the group uses. What more

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Speaker 2: can you tell us about that?

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Speaker 6: Well, that's right, we know that they're now also targeting

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Speaker 6: Hesbila's economic strongholds, its financial network. These are sort of

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Speaker 6: shadow institutions used by the group and its leadership, particularly

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Speaker 6: associated with the Al Khad al Hassan Association, which is

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Speaker 6: sort of this alternative banking structure. It operates outside the

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Speaker 6: law and allows them to money around. So obviously not

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Speaker 6: just targeting the military leadership here, not just targeting their

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Speaker 6: weapons cases and so on, but also targeting their economic

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Speaker 6: and financial structure. The whole point of that is to really,

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Speaker 6: you know, again, weaken Hesbela as well, to the point

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Speaker 6: that they say that they don't want Hesbela being a

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Speaker 6: force on its borders. So they're coming at has been

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Speaker 6: all those different ways.

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Speaker 1: How significant was the Joon attach though on Natanya, who's

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Speaker 1: home the explosion it penetrated Israeli defenses, Well.

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Speaker 6: There's been a number of drone strikes recently that have

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Speaker 6: penetrated the Israeli defenses, so it's not the first one.

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Speaker 6: But obviously Israel is calling this a red line. Well,

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Speaker 6: at least the foreign minister did. This was his private

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Speaker 6: coastal residence which is north of Teal Aviv, and he

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Speaker 6: was not there, his family was not there, no one

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Speaker 6: was injured, So you really can't call this some sort

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Speaker 6: of assassination attempt given all those parameters, and they would

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Speaker 6: have likely known than Hezbla, But obviously they were trying

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Speaker 6: to send a message, and it sort of increases the

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Speaker 6: temperature even further because it was seen as something very personal.

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Speaker 6: Even if they didn't intend to strike him directly because

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Speaker 6: they knew he was not there at the time, it

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Speaker 6: does send that message and obviously Israel now was responding

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Speaker 6: by saying it to a red lion.

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Speaker 2: Okay, ras, thank you very much for joining us with

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Speaker 2: the latest this morning. That's our EMEA News director Rasalind Matheson.

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Speaker 1: Now more on this story. Hedge funds have examined key

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Speaker 1: sectors in the green economy and decided to bet against

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Speaker 1: clean energy and green tech. In a special report, Bloomberg

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Speaker 1: examines the climate short that could be even more damaging

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Speaker 1: than the political pushback that has been seen against so

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Speaker 1: called woke capitalism. Joining us now for more on this

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Speaker 1: is Bloomberg's ESG managing editor in Ema tansanin Broja tasanin

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Speaker 1: good morning, Thanks for your time. What are these hedge

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Speaker 1: funds betting against eggs?

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Speaker 2: Exactly?

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Speaker 1: What do we know?

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Speaker 8: Yeah, good morning. So what this story shows us is

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Speaker 8: that despite all the stimulus, so we've had two years

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Speaker 8: of the Inflation Reduction Act in the US and even

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Speaker 8: longer than that with the enormous regulatory and legislative apparatus

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Speaker 8: supporting the green transition in the EU, hedge funds as

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Speaker 8: a group appear to be largely betting against keygreen sectors.

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Speaker 8: So specifically, our analysis found that more hedge funds are

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Speaker 8: nit short, solar stocks, and a net long, and the

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Speaker 8: same negative view applies to electric vehicles, to batteries and

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Speaker 8: to hydrogen. They're more negative now than they were in

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Speaker 8: twenty twenty one, and at the same time, more hedge

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Speaker 8: funds are net long oil, net long gas and even

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Speaker 8: coal than are short those sectors.

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Speaker 2: And do we know why hedge funds have shifted their positions.

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Speaker 8: Yeah, I mean the context is interesting here. So at

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Speaker 8: the beginning of this year, there were four that with

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Speaker 8: interest rates coming down, the green sector would bounce back

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Speaker 8: after sort of struggling in the post pandemic era of

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Speaker 8: higher rates and an energy crisis. And a few pockets

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Speaker 8: are doing better, like wind for example, and hedge funds

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Speaker 8: have noted that and are a more positive wind for now. Though,

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Speaker 8: what we kept hearing from the hedge fund managers we

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Speaker 8: interviewed was that it's all about geopolitics. Geopolitics is very

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Speaker 8: much getting in the way of that expected recovery in

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Speaker 8: the green transition. So taraff wars appear to be getting

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Speaker 8: increasingly entrenched, with the US and Europe imposing tariffs on

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Speaker 8: China and China then retaliating. We had one hedge fund manager,

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Speaker 8: Turk explicitly that geopolitics is, as he put it, just

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Speaker 8: reading here, that the key reason why the energy transition

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Speaker 8: theme isn't working out, he said. And then there was

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Speaker 8: another who pointed to the dominance of China across green

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Speaker 8: sectors I mean notably solar, which has made it particularly

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Speaker 8: hard for companies in the US and Europe to compete.

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Speaker 8: And so his advice is that wherever China dominates, as

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Speaker 8: he puts it, just run for the hills as an

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Speaker 8: investor in the green transition.

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Speaker 1: That is interesting, now we've used the word and we've

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Speaker 1: written it in the piece. Also the idea of this

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Speaker 1: being worse than the pushback against quote woke capitalism. Just

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Speaker 1: talk to us a bit about that, i e. The

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Speaker 1: consequences maybe of these people and hedge funds making these decisions.

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Speaker 8: So yeah, I mean, it's an interesting sort of way

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Speaker 8: to set it up. Woke capitalism is very much a

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Speaker 8: US movement, specifically the Republican Party, which the green movement

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Speaker 8: has sort of largely characterized as you know, illogical and

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Speaker 8: sort of ignoring the facts. The reason it's we thought

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Speaker 8: it was interesting to look specifically at hedge fund managers

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Speaker 8: in the context of the green transition is because these

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Speaker 8: guys have had no ideology, not one way or the other.

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Speaker 8: All they're looking for is where to make a profit,

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Speaker 8: and from that sort of laser because on making money

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Speaker 8: and from that sort of I suppose dispassionate approach to

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Speaker 8: that goal. They've decided that here and now, the green

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Speaker 8: transition largely is not a winning bit. That's said, there

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Speaker 8: is one sector in particular that they do like, and

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Speaker 8: that is grids and grid infrastructure, and that is notably

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Speaker 8: also a sector that is shielded from the kind of

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Speaker 8: geopolitical geopolitical sort of tit for tat that is particularly

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Speaker 8: damaging for solar and wind and are the green sectors.

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