1
00:00:02,400 --> 00:00:11,200
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

2
00:00:11,240 --> 00:00:14,520
Speaker 1: dayba Q podcast, available every morning on Apple, Spotify or

3
00:00:14,520 --> 00:00:17,360
Speaker 1: wherever you listen. It's Monday, the third of June in London.

4
00:00:17,440 --> 00:00:18,720
Speaker 1: I'm Caroline Hepkin.

5
00:00:18,640 --> 00:00:22,000
Speaker 2: And I'm Stephen Carroll. Coming up today. South Africa's ANC

6
00:00:22,160 --> 00:00:25,320
Speaker 2: is forced into coalition talks for the first time since

7
00:00:25,360 --> 00:00:27,080
Speaker 2: taking power three decades ago.

8
00:00:27,400 --> 00:00:31,480
Speaker 1: Investors tell Bloomberg they fear a second Trump presidency could

9
00:00:31,520 --> 00:00:33,360
Speaker 1: erode the fed's independence.

10
00:00:33,680 --> 00:00:37,880
Speaker 2: Plus Emmanuel Macrar was to strengthen France's global influence. We

11
00:00:38,000 --> 00:00:40,839
Speaker 2: look at why unrest on an island territory thousands of

12
00:00:40,840 --> 00:00:43,879
Speaker 2: miles from Paris is a huge test for that ambition.

13
00:00:44,320 --> 00:00:46,440
Speaker 1: Let's start with a round up of our top stories.

14
00:00:46,600 --> 00:00:50,199
Speaker 2: South Africa's ruling African National Congress has begun talks with

15
00:00:50,240 --> 00:00:53,160
Speaker 2: its rivals to form a government. The move comes after

16
00:00:53,200 --> 00:00:56,240
Speaker 2: the party last its parliamentary majority for the first time

17
00:00:56,280 --> 00:00:58,840
Speaker 2: since Nelson Mandela led them to power at the end

18
00:00:58,920 --> 00:01:01,600
Speaker 2: of a Part eight in ninety ninety four. The leader

19
00:01:01,600 --> 00:01:04,600
Speaker 2: of the ANC, So Ramaposa, says that the result is

20
00:01:04,600 --> 00:01:08,640
Speaker 2: a sign the South African people wanted more cooperation between

21
00:01:08,640 --> 00:01:09,480
Speaker 2: major parties.

22
00:01:09,959 --> 00:01:13,360
Speaker 3: What this election has made plain is that the people

23
00:01:13,400 --> 00:01:17,600
Speaker 3: of South Africa expect their leaders to work together to

24
00:01:17,800 --> 00:01:21,360
Speaker 3: meet their needs. They expect the parties for which they

25
00:01:21,360 --> 00:01:25,160
Speaker 3: have voted to act and work together for the good

26
00:01:25,440 --> 00:01:27,080
Speaker 3: of everyone.

27
00:01:27,560 --> 00:01:31,000
Speaker 2: Ramaposa's ANC got a vote chair of just over forty percent,

28
00:01:31,200 --> 00:01:34,319
Speaker 2: down from more than fifty seven percent five years ago.

29
00:01:34,600 --> 00:01:38,120
Speaker 2: The electoral shakeup has pushed Africa's most industrialized nation into

30
00:01:38,240 --> 00:01:42,000
Speaker 2: uncharted territory. The ANC will likely be forced to cooperate

31
00:01:42,080 --> 00:01:46,000
Speaker 2: with bitter rivals the Democratic Alliance, the Economic Freedom Fighters

32
00:01:46,080 --> 00:01:48,840
Speaker 2: or the new party of former President Jacob Zuma.

33
00:01:49,680 --> 00:01:53,600
Speaker 1: Kis Starmer will pitch Labor as the party of National Security.

34
00:01:53,720 --> 00:01:56,960
Speaker 1: Today in the UK, out of a TV election debate

35
00:01:57,040 --> 00:02:00,320
Speaker 1: with the Prime Minister tomorrow, the opposition leader is looking

36
00:02:00,360 --> 00:02:02,880
Speaker 1: to draw a line under a public row over the

37
00:02:02,920 --> 00:02:07,559
Speaker 1: candidacy of the veteran MP Diane Abbott. Starman now says

38
00:02:07,600 --> 00:02:10,160
Speaker 1: that she is free to stand as a Labor candidate,

39
00:02:10,200 --> 00:02:13,639
Speaker 1: and Abbot has confirmed she will. Here's the Shadow Home

40
00:02:13,680 --> 00:02:15,040
Speaker 1: Secretary Ivette Cooper.

41
00:02:15,440 --> 00:02:17,679
Speaker 4: Diane has been, you know, continues to be a really

42
00:02:17,680 --> 00:02:20,680
Speaker 4: important figure in the Labor Party, not just because of

43
00:02:20,760 --> 00:02:23,520
Speaker 4: the trailblazing people have talked about, but also some of

44
00:02:23,560 --> 00:02:26,360
Speaker 4: the things she did. For example, she was crucial to

45
00:02:26,639 --> 00:02:29,760
Speaker 4: exposing the windrush scandal and holding the government to account

46
00:02:29,800 --> 00:02:30,040
Speaker 4: on that.

47
00:02:30,960 --> 00:02:34,160
Speaker 1: Ivett Cooper speaking there to the BBC. Diane Abbott has

48
00:02:34,200 --> 00:02:37,040
Speaker 1: been an MP since nineteen eighty seven, when she was

49
00:02:37,080 --> 00:02:39,399
Speaker 1: the first black woman to be elected to the House

50
00:02:39,440 --> 00:02:42,480
Speaker 1: of Commons. She was readmitted to the Labor Party last

51
00:02:42,520 --> 00:02:45,960
Speaker 1: week following a suspension over comments she made about racism

52
00:02:46,240 --> 00:02:46,799
Speaker 1: last year.

53
00:02:47,320 --> 00:02:51,400
Speaker 2: Claudia seinbaumers expected to become Mexico's first female president and

54
00:02:51,480 --> 00:02:55,240
Speaker 2: a landslide victory. Three exit polls show the Marina Party

55
00:02:55,280 --> 00:02:58,920
Speaker 2: receiving between fifty eight and sixty three percent of the votes.

56
00:02:59,200 --> 00:03:04,640
Speaker 2: Shinebun's men tours the popular outgoing President Andress Manuelopas Obrador,

57
00:03:04,919 --> 00:03:08,600
Speaker 2: but Amlo leaves office having allowed drug cartels to expand

58
00:03:08,639 --> 00:03:12,640
Speaker 2: their influence across Mexico, resulting in record murder rates, as

59
00:03:12,639 --> 00:03:15,680
Speaker 2: well as the large fiscal deficit and the world's most

60
00:03:15,680 --> 00:03:20,600
Speaker 2: indebted oil company, the state owned Petroleus Mexicanos. The Mexican

61
00:03:20,639 --> 00:03:24,400
Speaker 2: peso has been the strongest performing emerging market currency over

62
00:03:24,440 --> 00:03:27,640
Speaker 2: the past two years, and the prospect of continuity under

63
00:03:27,639 --> 00:03:30,359
Speaker 2: SHINEBAM has helped keep the PAESO steady.

64
00:03:31,120 --> 00:03:34,880
Speaker 1: A survey by Bloomberg has shown that investors are worried

65
00:03:35,000 --> 00:03:38,640
Speaker 1: about the Federal Reserve's independence if Donald Trump is elected

66
00:03:38,760 --> 00:03:42,480
Speaker 1: US president in November. Forty four percent of those responding

67
00:03:42,480 --> 00:03:45,600
Speaker 1: to our Markets Live Pulse survey said that they expect

68
00:03:45,680 --> 00:03:49,240
Speaker 1: the former president to politicize the Central Bank or limit

69
00:03:49,360 --> 00:03:52,120
Speaker 1: its powers if he returns to the White House. They

70
00:03:52,160 --> 00:03:54,880
Speaker 1: also expect volatility in the bond market in the event

71
00:03:55,160 --> 00:03:58,480
Speaker 1: of a Trump victory, with around a quarter seeing ten

72
00:03:58,560 --> 00:04:01,880
Speaker 1: year US treasury yields jumping by more than twenty five

73
00:04:01,960 --> 00:04:04,000
Speaker 1: basis points in videos.

74
00:04:04,040 --> 00:04:07,320
Speaker 2: Planning to upgrade its AI accelerator chips every year as

75
00:04:07,320 --> 00:04:11,040
Speaker 2: it seeks to broaden its customer base beyond cloud computing giants,

76
00:04:11,440 --> 00:04:14,120
Speaker 2: CEO Jensen Hwang has announced the new black Rail Ultra

77
00:04:14,320 --> 00:04:16,600
Speaker 2: chip for next year and the development of an AI

78
00:04:16,680 --> 00:04:19,960
Speaker 2: platform called Ruben for twenty twenty six. He made the

79
00:04:19,960 --> 00:04:21,600
Speaker 2: announcements during a speech in Taiwan.

80
00:04:22,040 --> 00:04:25,400
Speaker 5: For Future Laptop, your future PC will become an AI

81
00:04:26,000 --> 00:04:29,760
Speaker 5: It'll be constantly helping you, assisting you in the background.

82
00:04:30,640 --> 00:04:32,279
Speaker 2: The PC will.

83
00:04:32,120 --> 00:04:37,080
Speaker 5: Also run applications that are enhanced by AI, and your

84
00:04:37,400 --> 00:04:44,000
Speaker 5: PC will also post applications with digital humans that are AARs.

85
00:04:44,040 --> 00:04:46,720
Speaker 2: In Vidia CEO Jensen Huang, they're speaking of the Computex

86
00:04:46,839 --> 00:04:50,120
Speaker 2: conference in Taiwan. He compared the rise of AI to

87
00:04:50,160 --> 00:04:53,359
Speaker 2: the Industrial Revolution. The chip maker expects to play a

88
00:04:53,440 --> 00:04:56,880
Speaker 2: major role as the technology shifts to personal computers.

89
00:04:57,520 --> 00:05:00,440
Speaker 1: The price of oil has swung between gains and losses

90
00:05:00,480 --> 00:05:04,080
Speaker 1: after OPEC plus set out a plan to restore some production,

91
00:05:04,560 --> 00:05:08,120
Speaker 1: minister's meeting in Riad agreed to extend production cuts into

92
00:05:08,160 --> 00:05:11,840
Speaker 1: the third quarter, while also laying out a twelve month

93
00:05:11,920 --> 00:05:15,839
Speaker 1: timeline to bring some barrels back online. The news came

94
00:05:15,839 --> 00:05:19,080
Speaker 1: as geopolitical tensions from the Middle East to Ukraine have

95
00:05:19,839 --> 00:05:25,520
Speaker 1: concerned and have raised concerns about supply in recent months. Now,

96
00:05:25,560 --> 00:05:27,440
Speaker 1: in a moment, we're going to talk about the crisis

97
00:05:27,440 --> 00:05:32,200
Speaker 1: in the French overseas territory of New Caledonia. But first

98
00:05:32,360 --> 00:05:35,159
Speaker 1: let's go to election results and what they will mean

99
00:05:35,400 --> 00:05:39,080
Speaker 1: for South Africa. The ruling African National Congress has begun

100
00:05:39,240 --> 00:05:42,279
Speaker 1: talks with rivals to form a new government after losing

101
00:05:42,360 --> 00:05:46,040
Speaker 1: their parliamentary majority, one that they held for thirty years

102
00:05:46,240 --> 00:05:49,920
Speaker 1: since the end of White minority rule. The main opposition party,

103
00:05:50,000 --> 00:05:54,360
Speaker 1: the Democratic Alliance, secured eighty seven seats, Jacob Zuma's New

104
00:05:54,400 --> 00:05:57,560
Speaker 1: Party gone fifty eight seats, and the Economic Freedom Fighters

105
00:05:57,600 --> 00:06:00,800
Speaker 1: led by Judas Malema won thirty nine nine. C's just

106
00:06:01,080 --> 00:06:04,280
Speaker 1: as a reminder of the outcome from the vote joining

107
00:06:04,320 --> 00:06:07,479
Speaker 1: us now is Bloomberg anchor Jennifer z Abasaja Live from

108
00:06:07,520 --> 00:06:12,080
Speaker 1: South Africa. Is a historic setback for the ANC. Why

109
00:06:12,080 --> 00:06:13,680
Speaker 1: did it happen? What's the thinking?

110
00:06:13,800 --> 00:06:18,200
Speaker 6: Firstly, absolutely, I mean if we think about over the

111
00:06:18,240 --> 00:06:21,360
Speaker 6: past thirty years, I mean, the ANC was largely writing

112
00:06:21,440 --> 00:06:24,719
Speaker 6: on this idea and really it was true that they

113
00:06:24,760 --> 00:06:26,440
Speaker 6: did liberate the country.

114
00:06:26,760 --> 00:06:28,200
Speaker 7: But I think if we just take a look at

115
00:06:28,240 --> 00:06:30,080
Speaker 7: what the past few years have been under the A

116
00:06:30,240 --> 00:06:33,960
Speaker 7: and C, there's been a number of people accused them

117
00:06:33,960 --> 00:06:38,119
Speaker 7: of economic mismanagement. We've seen the economy stall in many ways.

118
00:06:38,160 --> 00:06:43,279
Speaker 7: Unemployment has been north of thirty three percent, and you

119
00:06:43,360 --> 00:06:47,000
Speaker 7: can tell based on the voter turnout and really the

120
00:06:47,040 --> 00:06:50,080
Speaker 7: support for the ANC that voters are quite fed up

121
00:06:50,120 --> 00:06:52,600
Speaker 7: with what they've seen over the past few years and

122
00:06:52,680 --> 00:06:55,599
Speaker 7: want to see a change. And that's really what we

123
00:06:55,920 --> 00:06:58,200
Speaker 7: are interpreting based on these results.

124
00:06:58,640 --> 00:07:01,960
Speaker 2: So what MISA coalition government look like who does it

125
00:07:02,000 --> 00:07:04,560
Speaker 2: appear the ANC are and aren't talking to.

126
00:07:05,920 --> 00:07:09,920
Speaker 7: Great So that's the big question, Stephen. And it's interesting

127
00:07:09,920 --> 00:07:12,880
Speaker 7: because going into this election, the hope for the ANC

128
00:07:13,240 --> 00:07:16,560
Speaker 7: was to get above closer to that fifty percent threshold.

129
00:07:16,600 --> 00:07:19,200
Speaker 7: They clearly have not gotten that it's closer to forty percent.

130
00:07:19,240 --> 00:07:22,600
Speaker 7: So they are going to need to tap into some

131
00:07:22,760 --> 00:07:26,280
Speaker 7: of their bigger rivals. And I'm talking about the main

132
00:07:26,280 --> 00:07:30,960
Speaker 7: opposition party, the Democratic Alliance, which did pretty well with

133
00:07:31,040 --> 00:07:35,160
Speaker 7: twenty one point seventy five percent, but potentially, you know,

134
00:07:35,240 --> 00:07:38,600
Speaker 7: they could look to the EFF Party, which is the

135
00:07:38,640 --> 00:07:42,800
Speaker 7: more leftist populist party, or even you know, a stretch

136
00:07:42,840 --> 00:07:46,240
Speaker 7: could potentially be former President Jacob Zuma's MK Party. Now,

137
00:07:46,520 --> 00:07:49,400
Speaker 7: the concern, and really the discussions that are going to

138
00:07:49,440 --> 00:07:53,040
Speaker 7: be beginning today is how would these coalitions work. The

139
00:07:53,080 --> 00:07:55,640
Speaker 7: Democratic Alliance has said they are willing to work with

140
00:07:56,000 --> 00:08:00,880
Speaker 7: whoever supports the constitution and aligance with them. The ANC

141
00:08:01,440 --> 00:08:04,760
Speaker 7: has said they are willing to talk with all parties,

142
00:08:05,400 --> 00:08:08,400
Speaker 7: but they are saying with the caveat that you know,

143
00:08:08,520 --> 00:08:12,320
Speaker 7: President Zero Remoposa is not going to step aside, and

144
00:08:12,320 --> 00:08:15,280
Speaker 7: that has been a condition that We have heard from

145
00:08:15,400 --> 00:08:19,680
Speaker 7: former President Jacob Zuma's party MK they are willing to

146
00:08:19,720 --> 00:08:22,960
Speaker 7: work in a coalition, but they would like zero Remoposa

147
00:08:23,000 --> 00:08:25,800
Speaker 7: to step aside, and so you can only expect the

148
00:08:25,840 --> 00:08:28,960
Speaker 7: negotiations at the beginning today are going to be quite difficult.

149
00:08:29,600 --> 00:08:32,480
Speaker 7: But you know, all sides are potentially going to need

150
00:08:32,520 --> 00:08:35,160
Speaker 7: to make compromises in the next two weeks in order

151
00:08:35,200 --> 00:08:37,479
Speaker 7: to form this next administration.

152
00:08:38,040 --> 00:08:38,199
Speaker 8: Yeah.

153
00:08:38,200 --> 00:08:41,320
Speaker 1: Absolutely, I'm very short. Parliament has to elect a new

154
00:08:41,360 --> 00:08:44,480
Speaker 1: president in a fortnight. How do you think financial markets

155
00:08:44,520 --> 00:08:47,839
Speaker 1: and ratings agencies are looking at this in terms of

156
00:08:47,880 --> 00:08:50,240
Speaker 1: the policies that are most important for the news government

157
00:08:50,480 --> 00:08:52,040
Speaker 1: and what this coalition might look like.

158
00:08:53,760 --> 00:08:56,680
Speaker 7: So, you know, the biggest, the biggest thing that markets

159
00:08:56,720 --> 00:09:00,640
Speaker 7: are really wanting and we're anticipating going into this election

160
00:09:01,200 --> 00:09:05,320
Speaker 7: was somewhat of policy continuity. We had seen the anc

161
00:09:05,600 --> 00:09:09,360
Speaker 7: under cer Remiposa that their latest policy somewhat bearing fruit

162
00:09:09,559 --> 00:09:13,480
Speaker 7: in recent weeks and months. The electricity outages have declined

163
00:09:13,559 --> 00:09:17,520
Speaker 7: somewhat and we're also seeing some positive signs in terms

164
00:09:17,520 --> 00:09:20,600
Speaker 7: of economic growth. So they would like to see that

165
00:09:20,800 --> 00:09:24,840
Speaker 7: continue and that is where the main opposition party has

166
00:09:24,920 --> 00:09:29,960
Speaker 7: been favorable for the markets now The concern is potentially

167
00:09:30,040 --> 00:09:33,400
Speaker 7: if we do see some of these more leftist parties

168
00:09:33,440 --> 00:09:37,200
Speaker 7: coming in and demanding things like the finance minister to

169
00:09:37,240 --> 00:09:40,319
Speaker 7: step aside, or you know, some of their economic demands

170
00:09:40,600 --> 00:09:46,559
Speaker 7: have been land expropriation without compensation, nationalizing the central bank,

171
00:09:47,320 --> 00:09:51,000
Speaker 7: and the minds, and so investors are really paying close

172
00:09:51,000 --> 00:09:55,040
Speaker 7: attention to what these negotiations are and also the concessions

173
00:09:55,080 --> 00:09:57,679
Speaker 7: that are going to need to be made. But ultimately

174
00:09:57,720 --> 00:10:02,360
Speaker 7: they want to see a continent continuation excuse me, of

175
00:10:02,440 --> 00:10:05,160
Speaker 7: the growth that this country is very much in need of.

176
00:10:06,040 --> 00:10:08,520
Speaker 2: John, we mentioned that fourteen day deadline there. I wonder

177
00:10:08,520 --> 00:10:09,679
Speaker 2: if you could just talk us through the sort of

178
00:10:09,720 --> 00:10:11,960
Speaker 2: key elements to watch in the next couple of days.

179
00:10:13,480 --> 00:10:16,960
Speaker 7: Right, So today is really going to be closely watched

180
00:10:16,960 --> 00:10:19,320
Speaker 7: because we are going to see the A and c's

181
00:10:19,520 --> 00:10:23,840
Speaker 7: National Executive Committee, which is essentially the top seven members

182
00:10:23,880 --> 00:10:27,280
Speaker 7: of the party, meeting and to talk about the next

183
00:10:27,280 --> 00:10:31,319
Speaker 7: steps who they could potentially work with, what their terms

184
00:10:31,360 --> 00:10:35,839
Speaker 7: are and what is off the table, and so after that,

185
00:10:36,000 --> 00:10:38,800
Speaker 7: you know, we are anticipating more meetings to be happening.

186
00:10:39,080 --> 00:10:42,120
Speaker 7: Our understanding is that a number of these parties were

187
00:10:42,120 --> 00:10:45,600
Speaker 7: meeting over the weekend some more meeting with one another.

188
00:10:46,360 --> 00:10:49,560
Speaker 7: But yes, you know by midweek, by the end of

189
00:10:49,559 --> 00:10:51,960
Speaker 7: the week, we're going to need to have some clarity

190
00:10:52,000 --> 00:10:55,320
Speaker 7: as to who is talking to who and what decisions

191
00:10:55,440 --> 00:10:59,240
Speaker 7: are going to be to be made in order to

192
00:10:59,320 --> 00:11:02,920
Speaker 7: form this cup because as you mentioned, Stephen, there is

193
00:11:03,000 --> 00:11:05,920
Speaker 7: two weeks under the constitution where they need to form

194
00:11:06,200 --> 00:11:07,079
Speaker 7: this next government.

195
00:11:08,120 --> 00:11:11,280
Speaker 1: Okay, Jennifer Sabasaja, thank you so much for being with

196
00:11:11,360 --> 00:11:13,880
Speaker 1: us this morning and taking us through well the importance

197
00:11:13,920 --> 00:11:17,720
Speaker 1: of that South African election, of course, I mean it

198
00:11:17,840 --> 00:11:22,080
Speaker 1: is a hugely important moment for the most industrialized nation

199
00:11:22,320 --> 00:11:26,880
Speaker 1: on the African continent. Of which of those partners actually

200
00:11:26,960 --> 00:11:31,079
Speaker 1: the ANC is going to choose, you know, the EEF

201
00:11:31,400 --> 00:11:33,559
Speaker 1: on the kind of extreme left as it were with

202
00:11:33,679 --> 00:11:36,760
Speaker 1: Julius Malemma as leader, you know, talking about taking land

203
00:11:36,960 --> 00:11:40,400
Speaker 1: without compensation, I think is very interesting. A democratic alliance,

204
00:11:40,440 --> 00:11:43,800
Speaker 1: you know, could that be a sort of supply and

205
00:11:43,960 --> 00:11:47,719
Speaker 1: confidence alliance maybe that has been discussed.

206
00:11:47,760 --> 00:11:50,839
Speaker 2: It's uncharged territory for South Africa's democracy and in either

207
00:11:50,880 --> 00:11:53,320
Speaker 2: way this is going to have to prompt a renewal

208
00:11:53,360 --> 00:11:56,000
Speaker 2: of how the ANC does business. It's not used to

209
00:11:56,040 --> 00:11:58,679
Speaker 2: being a coalition partners. That's going to be something it's

210
00:11:58,720 --> 00:12:00,960
Speaker 2: going to be an interesting part for how the party

211
00:12:01,320 --> 00:12:04,160
Speaker 2: handles things going ahead. Just looking at the market reaction

212
00:12:04,240 --> 00:12:06,320
Speaker 2: as well. We had that strengthening in the rand after

213
00:12:06,360 --> 00:12:08,959
Speaker 2: we got the first indications out of those votes last week,

214
00:12:09,320 --> 00:12:12,040
Speaker 2: and the round really remaining with that you holding on

215
00:12:12,080 --> 00:12:13,920
Speaker 2: to those gains that we saw in the currency last

216
00:12:13,960 --> 00:12:16,560
Speaker 2: week as well. So the markets are very closely watching

217
00:12:16,600 --> 00:12:19,880
Speaker 2: how those coalition talks go and what sort of policy

218
00:12:20,000 --> 00:12:23,680
Speaker 2: mix whatever coalition agreement is drawn up may produce and

219
00:12:23,720 --> 00:12:26,280
Speaker 2: what that means for the future of the country's economy

220
00:12:26,320 --> 00:12:26,680
Speaker 2: as well.

221
00:12:27,720 --> 00:12:30,520
Speaker 1: So that the latest then when it comes to the

222
00:12:30,679 --> 00:12:33,240
Speaker 1: vote in South Africa. Let's also turn our attention though

223
00:12:33,280 --> 00:12:36,640
Speaker 1: to another feature story that we have this morning on

224
00:12:36,720 --> 00:12:39,560
Speaker 1: the French overseas territory of New Caledonia, which is in

225
00:12:39,600 --> 00:12:43,600
Speaker 1: the South Pacific. This is a hugely important story that

226
00:12:43,640 --> 00:12:46,440
Speaker 1: perhaps has gone a little bit under the radar, obviously

227
00:12:46,440 --> 00:12:49,720
Speaker 1: not in France, but perhaps here in the UK. The

228
00:12:49,800 --> 00:12:52,200
Speaker 1: territory of New Caledonia in the South Pacific is a

229
00:12:52,240 --> 00:12:55,440
Speaker 1: cluster of islands and it's now back onder the control

230
00:12:55,480 --> 00:12:58,600
Speaker 1: of French authorities. It saw deadly violence in May and

231
00:12:58,679 --> 00:13:03,439
Speaker 1: a state of emergency imposed after decades of tensions between

232
00:13:03,800 --> 00:13:08,000
Speaker 1: those seeking independence for the islands and those loyal to France.

233
00:13:08,040 --> 00:13:11,280
Speaker 1: The islands are key nickel producers, but they also suffer

234
00:13:11,320 --> 00:13:14,439
Speaker 1: from deep economic inequality. Joining us now as Eddie Spence,

235
00:13:14,480 --> 00:13:17,920
Speaker 1: our commodities reporter based in Jakarta, Eddie's been writing about

236
00:13:17,920 --> 00:13:20,840
Speaker 1: this story. Good to have you with us. Firstly, I

237
00:13:20,840 --> 00:13:23,360
Speaker 1: suppose for anyone who doesn't know what has happened, what

238
00:13:23,520 --> 00:13:26,400
Speaker 1: triggered the riots in New Caledonia.

239
00:13:27,440 --> 00:13:31,960
Speaker 8: Well, essentially, they wanted to change the electoral laws to

240
00:13:32,040 --> 00:13:36,240
Speaker 8: allow people who had emigrated to New Caledonia in some

241
00:13:36,320 --> 00:13:39,960
Speaker 8: cases like many decades ago, to actually be part of

242
00:13:39,960 --> 00:13:44,400
Speaker 8: the voting system. Previously, they weren't actually able to do

243
00:13:44,480 --> 00:13:46,800
Speaker 8: that as part of kind of agreements that were made

244
00:13:46,840 --> 00:13:51,200
Speaker 8: between the independence parties, who are largely backed by the

245
00:13:51,240 --> 00:13:55,080
Speaker 8: indigenous Knak population and the loyalist parties. That was kind

246
00:13:55,120 --> 00:13:58,000
Speaker 8: of the compromise, and they wanted to shift that compromise

247
00:13:58,000 --> 00:14:00,559
Speaker 8: to allow people who'd lived there for at least ten

248
00:14:00,640 --> 00:14:04,280
Speaker 8: years to actually be able to vote in the regional elections.

249
00:14:04,520 --> 00:14:09,160
Speaker 8: And that's what triggered the violence. Essentially, because can act

250
00:14:09,200 --> 00:14:11,800
Speaker 8: people who again are the indigenous people have been there

251
00:14:11,800 --> 00:14:15,240
Speaker 8: one thousand years, were worried about having their control of

252
00:14:15,679 --> 00:14:20,320
Speaker 8: the voting system there jeopardized by adding in a whole

253
00:14:20,360 --> 00:14:23,960
Speaker 8: new group of arrivals to the electorate.

254
00:14:25,480 --> 00:14:28,520
Speaker 2: Emmanuel Macron made the trip to New Caledonia as part

255
00:14:28,560 --> 00:14:31,880
Speaker 2: of this crisis. What role did his visit play and

256
00:14:32,160 --> 00:14:33,760
Speaker 2: what is the situation like there now?

257
00:14:35,720 --> 00:14:39,320
Speaker 8: Well, the situation is better now We've had thousands of

258
00:14:39,680 --> 00:14:44,000
Speaker 8: please arvive, some from mainland France, some from Tahiti, essentially

259
00:14:44,080 --> 00:14:46,920
Speaker 8: just to stop the rioting which was incredibly severe. I mean,

260
00:14:47,200 --> 00:14:49,680
Speaker 8: in the space of a few weeks, you know, seven

261
00:14:49,720 --> 00:14:52,080
Speaker 8: people have died, billions of dollars of damage have happened.

262
00:14:53,800 --> 00:14:57,040
Speaker 8: So Mcron's visit was obviously kind of symbolic in some

263
00:14:57,080 --> 00:14:59,600
Speaker 8: ways that just showed that the mainland was helping to

264
00:14:59,640 --> 00:15:03,560
Speaker 8: restore order. Whether it actually is going to help lead

265
00:15:03,640 --> 00:15:07,880
Speaker 8: to a long lasting resolution to this crisis is another question.

266
00:15:08,080 --> 00:15:10,240
Speaker 8: In some ways, you know, him turning up for less

267
00:15:10,240 --> 00:15:13,520
Speaker 8: than twenty four hours, if anything, has slightly riled some

268
00:15:13,600 --> 00:15:18,560
Speaker 8: of the pro independence political parties there. And I mean

269
00:15:18,600 --> 00:15:21,040
Speaker 8: also just his approach to this whole issue in the

270
00:15:21,080 --> 00:15:22,880
Speaker 8: first place, of trying to push through this change to

271
00:15:22,920 --> 00:15:28,520
Speaker 8: the electoral laws. Earlier, he pushed through an independence referendum

272
00:15:28,560 --> 00:15:33,200
Speaker 8: on the territory, which the independence parties wanted delayed because

273
00:15:33,240 --> 00:15:36,760
Speaker 8: it was during the COVID pandemic. Traditionally they would have

274
00:15:36,800 --> 00:15:38,960
Speaker 8: quite a long period of morning for their dead. He

275
00:15:39,040 --> 00:15:40,640
Speaker 8: pushed that through. It's kind of in keeping with his

276
00:15:41,120 --> 00:15:44,440
Speaker 8: overall political strategy of just trying to move fast on

277
00:15:44,520 --> 00:15:48,040
Speaker 8: difficult political issues. It worked in the case of the

278
00:15:48,080 --> 00:15:52,440
Speaker 8: pensions reform in France last year. In this case, seemingly

279
00:15:52,440 --> 00:15:54,520
Speaker 8: it hasn't worked. They haven't actually managed to push this

280
00:15:54,520 --> 00:15:57,680
Speaker 8: through yet. The threat of violence is re emerging, is

281
00:15:57,720 --> 00:15:58,240
Speaker 8: still there.

282
00:15:58,960 --> 00:16:01,560
Speaker 2: This is Bloomberg day Break Europe, your morning brief on

283
00:16:01,640 --> 00:16:04,840
Speaker 2: the stories making news from London to Wall Street and beyond.

284
00:16:05,120 --> 00:16:09,080
Speaker 1: Look for us on your podcast feed every morning, on Apple, Spotify,

285
00:16:09,200 --> 00:16:11,120
Speaker 1: and anywhere else you get your podcasts.

286
00:16:11,160 --> 00:16:14,200
Speaker 2: You can also listen live each morning on London Dab Radio,

287
00:16:14,240 --> 00:16:16,960
Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

288
00:16:16,960 --> 00:16:19,760
Speaker 1: Our flagship New York station is also available on your

289
00:16:19,760 --> 00:16:24,480
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

290
00:16:24,720 --> 00:16:26,040
Speaker 1: I'm Caroline Hipka and.

291
00:16:25,960 --> 00:16:28,640
Speaker 2: I'm Stephen Carroll join us again tomorrow morning for all

292
00:16:28,640 --> 00:16:31,080
Speaker 2: the news you need to start your day right here

293
00:16:31,120 --> 00:16:36,600
Speaker 2: on Bloomberg day Break. Europe