1
00:00:02,640 --> 00:00:04,920
Speaker 1: This is Bloomberg Daybreak. You up for this Tuesday, the

2
00:00:04,920 --> 00:00:07,880
Speaker 1: thirtieth of May in London, coming up today.

3
00:00:07,800 --> 00:00:09,840
Speaker 2: Making default not the default.

4
00:00:09,960 --> 00:00:13,280
Speaker 3: Joe Biden and Kevin McCarthy lobby hardliners to pass their

5
00:00:13,360 --> 00:00:14,640
Speaker 3: death ceiling deal.

6
00:00:14,920 --> 00:00:19,400
Speaker 1: Storing up problems. Britain's shop see yet another price rise.

7
00:00:19,200 --> 00:00:22,720
Speaker 3: Peak Spain's snap poll. Prime Minister of Pedro Sanchez calls

8
00:00:22,720 --> 00:00:25,120
Speaker 3: an early election after heavy regional losses.

9
00:00:25,440 --> 00:00:29,560
Speaker 4: Johnson's document drama w PP chips in and that's a

10
00:00:29,600 --> 00:00:32,559
Speaker 4: wrap on plastic. Those are the stories we're looking at

11
00:00:32,600 --> 00:00:33,640
Speaker 4: in today's papers.

12
00:00:33,680 --> 00:00:35,640
Speaker 5: And I'm Leanne Gern's.

13
00:00:35,440 --> 00:00:40,000
Speaker 1: Plus ruling the charts reports that Queen's music back catalog

14
00:00:40,120 --> 00:00:42,199
Speaker 1: could sell for a billion dollars.

15
00:00:43,800 --> 00:00:47,600
Speaker 6: That's all straight ahead on Bloomberg Daybreak Europe. The business

16
00:00:47,640 --> 00:00:49,800
Speaker 6: news you need to start your day in just one

17
00:00:49,920 --> 00:00:54,400
Speaker 6: fifteen minute podcast on Apple, Spotify, the Bloomberg Business App

18
00:00:54,520 --> 00:00:56,680
Speaker 6: and everywhere you get your podcasts.

19
00:01:00,560 --> 00:01:01,040
Speaker 2: Good morning.

20
00:01:01,080 --> 00:01:03,680
Speaker 1: I'm Stephen Carroll and I'm Caroline Hecker. Here are the

21
00:01:03,760 --> 00:01:05,319
Speaker 1: stories that we're following today.

22
00:01:05,800 --> 00:01:08,360
Speaker 3: In the United States, leaders from across the political divide

23
00:01:08,400 --> 00:01:11,880
Speaker 3: say they're optimistic about passing the death sealing deal before

24
00:01:12,080 --> 00:01:15,680
Speaker 3: a default. US President Joe Biden told reporters he's confident

25
00:01:15,680 --> 00:01:19,200
Speaker 3: that legislators will approve the bill before the June fifth deadline.

26
00:01:19,400 --> 00:01:20,760
Speaker 2: I feel very good about him.

27
00:01:21,080 --> 00:01:23,720
Speaker 7: I've spoke on a number of a member, I spoke

28
00:01:23,760 --> 00:01:26,839
Speaker 7: to McConnell, I spoke to a whole bunch.

29
00:01:26,760 --> 00:01:29,959
Speaker 2: Of people, and it feels good. We'll sailing the boat starts.

30
00:01:31,280 --> 00:01:34,399
Speaker 3: Both the President and Republican House Speaker Kevin McCarthy are

31
00:01:34,440 --> 00:01:36,880
Speaker 3: hailing the deal as a win for their separate parties.

32
00:01:37,120 --> 00:01:38,880
Speaker 2: If approved, it will fund US.

33
00:01:38,760 --> 00:01:40,720
Speaker 3: Government from the US government at the l after the

34
00:01:40,720 --> 00:01:41,840
Speaker 3: twenty twenty four election.

35
00:01:42,120 --> 00:01:44,120
Speaker 2: Voting on the dealers expected to start tomorrow.

36
00:01:44,640 --> 00:01:47,319
Speaker 1: Now Here in the UK, shot price inflation has reached

37
00:01:47,360 --> 00:01:51,120
Speaker 1: its fastest pace for at least eighteen years, but new

38
00:01:51,160 --> 00:01:53,600
Speaker 1: figures for the month of May show that the rate

39
00:01:53,680 --> 00:01:57,440
Speaker 1: of food price growth marginally eased blue both You and

40
00:01:57,480 --> 00:01:58,240
Speaker 1: POTS reports.

41
00:01:58,560 --> 00:02:01,840
Speaker 8: According to the British Retail Sourcing prices in stores rose

42
00:02:01,880 --> 00:02:04,320
Speaker 8: by nine percent in the year to May, up from

43
00:02:04,360 --> 00:02:08,000
Speaker 8: the eight point eight percent recorded in April. Food inflation

44
00:02:08,280 --> 00:02:11,160
Speaker 8: is slightly in May, but prices were still fifteen point

45
00:02:11,320 --> 00:02:14,120
Speaker 8: four percent higher than a year ago. The slowing of

46
00:02:14,120 --> 00:02:17,239
Speaker 8: food price rises was driven by lower energy and commodity costs,

47
00:02:17,280 --> 00:02:20,799
Speaker 8: which fed through to lower prices on staples including butter, milk,

48
00:02:20,960 --> 00:02:23,480
Speaker 8: fruit and fish. The chances of Jeremy Hard has been

49
00:02:23,480 --> 00:02:26,680
Speaker 8: wholding meetings with food manufacturers to discuss soaring prices and

50
00:02:26,720 --> 00:02:29,880
Speaker 8: to ask businesses to soften the blow for consumers. The

51
00:02:29,919 --> 00:02:32,640
Speaker 8: government and the BOE will be concerned that inflation is

52
00:02:32,639 --> 00:02:36,120
Speaker 8: becoming entrenched in the UK economy. In London, I'm youwing

53
00:02:36,160 --> 00:02:37,080
Speaker 8: pot's been both day.

54
00:02:36,960 --> 00:02:40,200
Speaker 3: Break Europe, Spain's Prime Minister Pedro Sanchez is called a

55
00:02:40,200 --> 00:02:43,280
Speaker 3: snap election for July. The move comes just hours after

56
00:02:43,440 --> 00:02:46,120
Speaker 3: the Socialist Party leader learned the full extent of its

57
00:02:46,200 --> 00:02:50,040
Speaker 3: parties lasses and regional elections. Here he is announcing the move,

58
00:02:50,120 --> 00:02:51,280
Speaker 3: speaking via translator.

59
00:02:53,520 --> 00:02:56,799
Speaker 7: Although yes, there's elections had a municipal and regional reach,

60
00:02:57,240 --> 00:03:00,160
Speaker 7: the direction and message of the vote goes further. So

61
00:03:00,200 --> 00:03:03,800
Speaker 7: as Prime Minister and also General Secretary of the Socialist Party,

62
00:03:04,200 --> 00:03:07,120
Speaker 7: I recognize the results and I think it necessary to

63
00:03:07,120 --> 00:03:09,600
Speaker 7: give a response and put under the scrutiny of the

64
00:03:09,639 --> 00:03:11,720
Speaker 7: people's vote at democratic mandate.

65
00:03:13,440 --> 00:03:15,920
Speaker 2: Santez's opponents will have less than two months to prepare

66
00:03:15,960 --> 00:03:18,760
Speaker 2: and campaign for the July twenty third election, which had

67
00:03:18,800 --> 00:03:20,800
Speaker 2: been expected to take place in December.

68
00:03:21,720 --> 00:03:25,800
Speaker 1: As Recepti up Urduwan secured a record breaking third term

69
00:03:25,840 --> 00:03:30,120
Speaker 1: as Turkey's president. The country's currency also hit a record low.

70
00:03:30,360 --> 00:03:33,120
Speaker 1: The leris moved to twenty ten against the US dollar.

71
00:03:33,480 --> 00:03:37,320
Speaker 1: Came after the returning leader declared a new era has begun.

72
00:03:38,960 --> 00:03:42,600
Speaker 9: According to the election's provisional results, our nation has served

73
00:03:42,600 --> 00:03:45,920
Speaker 9: the duty of presidents for another five years. To us,

74
00:03:46,360 --> 00:03:49,240
Speaker 9: the winner is Turkey. The winner is our very nation

75
00:03:49,400 --> 00:03:52,440
Speaker 9: with all of its sections. The winner is our democracy.

76
00:03:53,640 --> 00:03:57,680
Speaker 1: The president has a grim intray, with Turkey facing high inflation,

77
00:03:57,960 --> 00:04:02,440
Speaker 1: low interest rates, and no foreign reserves. Morgan Stanley's analysts

78
00:04:02,480 --> 00:04:05,360
Speaker 1: are warning that it may slide even further. The Turkish

79
00:04:05,440 --> 00:04:10,200
Speaker 1: lera is expected or predicted to drop twenty nine percent

80
00:04:10,320 --> 00:04:11,440
Speaker 1: by the end of the year.

81
00:04:12,080 --> 00:04:14,600
Speaker 3: Elon Musk is expected to visit China this week for

82
00:04:14,640 --> 00:04:17,359
Speaker 3: the first time in three years, sources tell Bloomberg. The

83
00:04:17,360 --> 00:04:20,719
Speaker 3: Tesla CEO is expected to meet senior officials and visit

84
00:04:20,760 --> 00:04:25,240
Speaker 3: the electric carmaker's Shanghai factory. Shanghai plant accounts for more

85
00:04:25,360 --> 00:04:29,440
Speaker 3: than half its global production, making roughly half a rather

86
00:04:29,520 --> 00:04:31,640
Speaker 3: roughly a million cars a year.

87
00:04:32,480 --> 00:04:34,440
Speaker 1: Okay, there's a few of our top stories for you

88
00:04:34,520 --> 00:04:39,359
Speaker 1: this morning. On a lighter note, reports that the back

89
00:04:39,480 --> 00:04:42,400
Speaker 1: catalog of Queen could be sold for more than a

90
00:04:42,680 --> 00:04:46,680
Speaker 1: billion dollars. It's kind of an eye watering sum because

91
00:04:46,760 --> 00:04:50,839
Speaker 1: even John Legend, Bob Dylan, Stev Nicks, nearly none of

92
00:04:50,880 --> 00:04:52,920
Speaker 1: them made that amount of money.

93
00:04:53,040 --> 00:04:54,640
Speaker 3: I mean, when you start looking at the list of hits,

94
00:04:54,640 --> 00:04:57,320
Speaker 3: it's pretty long, right, So I guess it's a rather

95
00:04:57,440 --> 00:04:59,760
Speaker 3: large back catalog and also one that, you know, thanks

96
00:04:59,760 --> 00:05:02,000
Speaker 3: to the film, has managed to kind of resurge and

97
00:05:02,080 --> 00:05:04,000
Speaker 3: popularity recently as well.

98
00:05:04,000 --> 00:05:05,200
Speaker 2: But an eyewatering figure.

99
00:05:05,279 --> 00:05:07,359
Speaker 3: Interesting to see another one of these big deals happening

100
00:05:07,400 --> 00:05:08,239
Speaker 3: in the record industry.

101
00:05:08,320 --> 00:05:11,280
Speaker 1: Yeah, apparently it's huge. I mean, CNN has been reporting

102
00:05:11,760 --> 00:05:14,640
Speaker 1: that talks are well underway for Universal Music Group to

103
00:05:14,680 --> 00:05:19,279
Speaker 1: acquire the catalog actually from Disney Music Group. And then

104
00:05:19,360 --> 00:05:24,440
Speaker 1: The Times quotes Barry Mazarski from Citrine Cooperman, which is

105
00:05:24,440 --> 00:05:27,720
Speaker 1: a business consultancy, talking about just all the different funds

106
00:05:27,720 --> 00:05:30,880
Speaker 1: that are actually interested in music. Now. He talks about

107
00:05:30,920 --> 00:05:35,400
Speaker 1: fifty funds operational trying to execute deals in this space.

108
00:05:35,680 --> 00:05:37,080
Speaker 1: So yeah, music big business.

109
00:05:37,160 --> 00:05:39,440
Speaker 3: Yeah, look at it's Obviously there's buyers out there because

110
00:05:39,440 --> 00:05:41,640
Speaker 3: I think there's money to be made off those back catalogs.

111
00:05:41,640 --> 00:05:43,279
Speaker 2: So the oldies are the goodies.

112
00:05:44,640 --> 00:05:47,440
Speaker 5: I'm so sad we couldn't play the music. That's the problem.

113
00:05:47,560 --> 00:05:48,960
Speaker 2: Can sing along if you want.

114
00:05:49,279 --> 00:05:49,640
Speaker 6: I won't.

115
00:05:49,680 --> 00:05:51,800
Speaker 1: I won't bore you this morning with that, bear.

116
00:05:51,720 --> 00:05:54,560
Speaker 3: Our listeners that and talk more about the latest under

117
00:05:54,560 --> 00:05:57,799
Speaker 3: debt siting agreement in the United States the House Royals Committee.

118
00:05:57,800 --> 00:06:00,240
Speaker 3: We'll examine a DA later before a vote. My gets

119
00:06:00,279 --> 00:06:01,880
Speaker 3: what got there? Say too? With a foot of t

120
00:06:02,080 --> 00:06:05,360
Speaker 3: bill auctions set to be held in the coming days

121
00:06:05,400 --> 00:06:08,039
Speaker 3: and weeks as well. Bloomberg Senior risor Bill Ferries joins

122
00:06:08,080 --> 00:06:09,960
Speaker 3: us now for more on this story.

123
00:06:10,320 --> 00:06:11,640
Speaker 2: Bill, great to have you with us.

124
00:06:11,680 --> 00:06:14,440
Speaker 3: What is then, the latest in terms of securing support

125
00:06:14,839 --> 00:06:17,000
Speaker 3: from lawmakers for this deal?

126
00:06:18,000 --> 00:06:21,440
Speaker 10: Well, thanks for having me. We know both President Biden

127
00:06:21,600 --> 00:06:25,480
Speaker 10: and Kevin McCarthy on the Republican side have been lobbying

128
00:06:26,000 --> 00:06:29,440
Speaker 10: their supporters, their members in Congress to vote for this.

129
00:06:29,600 --> 00:06:33,560
Speaker 10: I mean, obviously the clock is ticking. June fifth is

130
00:06:33,560 --> 00:06:36,760
Speaker 10: is next week, and there's not really a lot of

131
00:06:36,839 --> 00:06:39,440
Speaker 10: room for second chances or rewrites at this point. So

132
00:06:39,880 --> 00:06:42,040
Speaker 10: we could have a vote as soon as Wednesday in

133
00:06:42,080 --> 00:06:43,599
Speaker 10: the House and then it would move to the Senate.

134
00:06:44,760 --> 00:06:47,640
Speaker 10: But there is you know, there there is some arm

135
00:06:47,680 --> 00:06:51,880
Speaker 10: twisting going on to make sure that the people who

136
00:06:52,000 --> 00:06:54,680
Speaker 10: may be on the fence or maybe haven't commented publicly

137
00:06:54,720 --> 00:06:58,279
Speaker 10: about it, get on board and support the agreement and

138
00:06:58,320 --> 00:07:00,440
Speaker 10: don't go to the other side. I think, think what

139
00:07:00,480 --> 00:07:04,480
Speaker 10: you've seen so far, there are very vocal members on

140
00:07:04,560 --> 00:07:07,080
Speaker 10: both to the left of President Biden and to the

141
00:07:07,160 --> 00:07:10,880
Speaker 10: right of Kevin McCarthy who are opposed to this deal.

142
00:07:11,520 --> 00:07:14,160
Speaker 10: That's not such a huge surprise. This was never going

143
00:07:14,240 --> 00:07:17,800
Speaker 10: to be a unanimous agreement. There are Republican members of

144
00:07:18,760 --> 00:07:22,720
Speaker 10: Congress who have in their political careers never voted once

145
00:07:22,800 --> 00:07:26,600
Speaker 10: to increase the debt ceiling, regardless of who was in power,

146
00:07:26,720 --> 00:07:30,000
Speaker 10: So there was always going to be opposition. I think

147
00:07:30,040 --> 00:07:33,360
Speaker 10: both sides, Biden and McCarthy, want to make sure that

148
00:07:33,440 --> 00:07:36,560
Speaker 10: opposition doesn't get to some sort of a critical mass.

149
00:07:37,280 --> 00:07:39,040
Speaker 1: Okay, who are the key names to what?

150
00:07:40,360 --> 00:07:40,520
Speaker 2: Well?

151
00:07:40,560 --> 00:07:44,200
Speaker 10: I think on the Democratic side, we're really still waiting

152
00:07:44,320 --> 00:07:48,280
Speaker 10: for the Democratic leader, Hakeem Jeffries to say anything in

153
00:07:48,320 --> 00:07:52,360
Speaker 10: public about this agreement. He's been noticeably quiet so far,

154
00:07:53,240 --> 00:07:55,320
Speaker 10: even as as a leader, he would he would have

155
00:07:55,400 --> 00:07:58,120
Speaker 10: to try to bridge the divide between maybe the more

156
00:07:58,120 --> 00:08:02,200
Speaker 10: progressive members who are really upset about some of the

157
00:08:02,200 --> 00:08:05,520
Speaker 10: things the President negotiated in this and then maybe the

158
00:08:05,640 --> 00:08:07,600
Speaker 10: kind of more middle of the road Democrats who are

159
00:08:07,600 --> 00:08:10,120
Speaker 10: ready to get a debt deal and move on. So

160
00:08:10,560 --> 00:08:13,440
Speaker 10: the question is, is that what he's waiting to, you know,

161
00:08:13,520 --> 00:08:15,960
Speaker 10: is that why he's waiting to go public or does

162
00:08:15,960 --> 00:08:18,920
Speaker 10: he have some more immediate concerns of his own that

163
00:08:19,040 --> 00:08:22,080
Speaker 10: might make it harder to get this on the floor quickly.

164
00:08:22,200 --> 00:08:24,680
Speaker 10: So that's one big question. I think on the Republican side,

165
00:08:24,680 --> 00:08:27,240
Speaker 10: it's really kind of the numbers. You have a lot

166
00:08:27,280 --> 00:08:31,240
Speaker 10: of Freedom Caucus members who have long been opposed and

167
00:08:31,280 --> 00:08:35,200
Speaker 10: who say the president that the President got ninety percent

168
00:08:35,200 --> 00:08:38,240
Speaker 10: of what he wanted and Republicans only got ten percent.

169
00:08:38,760 --> 00:08:42,040
Speaker 10: I think what Kevin McCarthy is banking on are people

170
00:08:42,120 --> 00:08:45,839
Speaker 10: like Jim Jordan, someone who supported his candidacy to be leader,

171
00:08:46,160 --> 00:08:49,560
Speaker 10: but who also has close ties to the conservative wing

172
00:08:49,600 --> 00:08:52,240
Speaker 10: of the Republican Party, and he has been on board

173
00:08:52,280 --> 00:08:56,000
Speaker 10: with this deal. He said it's a first step towards

174
00:08:56,000 --> 00:08:59,559
Speaker 10: reigning and government spending. So I think as long as

175
00:08:59,559 --> 00:09:02,000
Speaker 10: you have people like that staying on board on the

176
00:09:02,000 --> 00:09:04,400
Speaker 10: House side, you're good. I think the Senate will be

177
00:09:04,520 --> 00:09:06,960
Speaker 10: its own battle, and over there you can have a

178
00:09:07,000 --> 00:09:09,960
Speaker 10: single member way in to slow things down.

179
00:09:11,040 --> 00:09:13,200
Speaker 3: What's the timetable that we should be watching out for

180
00:09:13,320 --> 00:09:14,360
Speaker 3: now in the coming days?

181
00:09:15,640 --> 00:09:18,080
Speaker 10: I think the first one is Wednesday, and whether the

182
00:09:18,160 --> 00:09:21,560
Speaker 10: House really does move towards a vote either probably late

183
00:09:21,600 --> 00:09:24,440
Speaker 10: in the day after a lot of debate, or if it,

184
00:09:24,559 --> 00:09:27,800
Speaker 10: you know, slips into Thursday, and that's probably okay. If

185
00:09:27,840 --> 00:09:30,600
Speaker 10: they can't get to a vote by by some point

186
00:09:30,679 --> 00:09:33,199
Speaker 10: on Thursday, you're going to start wondering about the broader

187
00:09:33,240 --> 00:09:37,400
Speaker 10: timetable because you can have someone on the Senate side

188
00:09:37,440 --> 00:09:41,439
Speaker 10: slow things down. June fifth is correct me if I'm wrong,

189
00:09:41,480 --> 00:09:45,560
Speaker 10: I think it's Tuesday next week, so things will start

190
00:09:45,600 --> 00:09:49,320
Speaker 10: to get extremely tight because in the Senate, you get

191
00:09:49,320 --> 00:09:51,840
Speaker 10: to you get to debate. As a senator, you can

192
00:09:51,920 --> 00:09:53,840
Speaker 10: you can often set the terms of how long you

193
00:09:53,840 --> 00:09:56,560
Speaker 10: want to speak for, so that can really that can

194
00:09:56,640 --> 00:09:57,600
Speaker 10: really slow things down.

195
00:09:58,120 --> 00:10:01,840
Speaker 3: Yeah, June fifth, June fifth, Monday, but yes, still very close.

196
00:10:01,920 --> 00:10:04,839
Speaker 3: I think it's the key the key sentiment there as well,

197
00:10:05,080 --> 00:10:07,480
Speaker 3: and from the market's point of view, you know, there's

198
00:10:07,520 --> 00:10:09,800
Speaker 3: going to be a flood of T bill sales coming

199
00:10:10,080 --> 00:10:12,680
Speaker 3: as the treasure seeks to replante its cash supply in

200
00:10:12,679 --> 00:10:13,400
Speaker 3: the coming months.

201
00:10:13,520 --> 00:10:15,199
Speaker 2: What should we be watching out for on that front?

202
00:10:15,880 --> 00:10:17,760
Speaker 10: Well, I think we're first people are going to be

203
00:10:17,840 --> 00:10:20,720
Speaker 10: very curious about the pace of those sales. I mean,

204
00:10:20,960 --> 00:10:24,560
Speaker 10: we saw the Treasury's cash balance fall below forty billion dollars.

205
00:10:24,880 --> 00:10:27,080
Speaker 10: That was a level we haven't seen in I think

206
00:10:27,160 --> 00:10:30,120
Speaker 10: six or seven years, so they will be looking to

207
00:10:30,240 --> 00:10:34,000
Speaker 10: rebuild that quickly. It was just for comparison, at about

208
00:10:34,000 --> 00:10:36,880
Speaker 10: a trillion dollars just over a year ago, so there's

209
00:10:36,920 --> 00:10:40,640
Speaker 10: potentially a lot of room to build. How much liquidity

210
00:10:40,760 --> 00:10:43,640
Speaker 10: does this suck out of the US financial system? What

211
00:10:43,679 --> 00:10:46,200
Speaker 10: does this do to banks that have been that have

212
00:10:46,480 --> 00:10:48,680
Speaker 10: you know, a little been some of those banks that

213
00:10:48,720 --> 00:10:54,280
Speaker 10: have been on unsteady ground since the Silicon Valley bank crisis.

214
00:10:54,920 --> 00:10:59,040
Speaker 10: Does this Do they see outflows from this decision by

215
00:10:59,360 --> 00:11:01,959
Speaker 10: the Fed to LT bills? What does that mean? And

216
00:11:02,040 --> 00:11:04,120
Speaker 10: I just step back from the whole thing. When you

217
00:11:04,160 --> 00:11:07,079
Speaker 10: look at the debt deal, if it passes, the big

218
00:11:07,160 --> 00:11:09,959
Speaker 10: two of the big questions will be does this tip

219
00:11:10,160 --> 00:11:13,720
Speaker 10: the US into a recession? If the US ends up

220
00:11:13,760 --> 00:11:17,320
Speaker 10: in a recession after this passes, does this keep it

221
00:11:17,360 --> 00:11:20,199
Speaker 10: down there for longer? And what does that mean for

222
00:11:20,400 --> 00:11:23,920
Speaker 10: you know, average households and the interest rates they pay

223
00:11:23,920 --> 00:11:27,640
Speaker 10: on their loans and they're borrowing. So those I think

224
00:11:27,679 --> 00:11:29,400
Speaker 10: those are going to be the two biggest questions for

225
00:11:29,440 --> 00:11:30,600
Speaker 10: the economy going forward.

226
00:11:31,080 --> 00:11:33,600
Speaker 1: Yeah, absolutely pivotal. Bill, Thank you so much for your

227
00:11:33,600 --> 00:11:36,839
Speaker 1: time this morning. Bloomberg Senior Editor Bill Ferries, joining us

228
00:11:36,840 --> 00:11:39,040
Speaker 1: on the debt ceiling agreement and what's next?

229
00:11:39,480 --> 00:11:43,960
Speaker 3: Up next Johnson's document drama WPP chips in and that's

230
00:11:44,000 --> 00:11:45,760
Speaker 3: a wrap on plastic.

231
00:11:46,920 --> 00:11:50,839
Speaker 6: Now the paper review on Blueberg Daybreak Europe, the news

232
00:11:50,880 --> 00:11:53,200
Speaker 6: you need to know from today's papers.

233
00:11:53,640 --> 00:11:56,040
Speaker 1: And joining us for more is bloombergs Ley and Garin.

234
00:11:56,120 --> 00:11:59,880
Speaker 1: Starting with the Financial Times headline the Cabinet in stand

235
00:12:00,160 --> 00:12:06,080
Speaker 1: off with COVID inquiry over Boris Johnson messages. Good morning leone, Caroline.

236
00:12:05,640 --> 00:12:06,440
Speaker 5: Good morning to you.

237
00:12:06,600 --> 00:12:10,920
Speaker 4: Yes, so, Boris Johnson has until this afternoon to submit

238
00:12:11,040 --> 00:12:16,720
Speaker 4: those unredacted diary entries and WhatsApp messages to the COVID inquiry.

239
00:12:17,000 --> 00:12:21,160
Speaker 4: Now the government insists it is provided all relevant material

240
00:12:21,440 --> 00:12:23,880
Speaker 4: and that was when that request was made by the

241
00:12:23,960 --> 00:12:28,640
Speaker 4: chair of the inquiry, Lady Heather Hallett, yesterday the Government

242
00:12:28,720 --> 00:12:34,480
Speaker 4: Office did resist all demands to handover information called unambiguously

243
00:12:34,920 --> 00:12:39,720
Speaker 4: irrelevant to the inquiry. Pretty strong words there by Cabinet Office.

244
00:12:39,920 --> 00:12:43,040
Speaker 4: It suggests that this would set a really harmful president

245
00:12:43,520 --> 00:12:46,360
Speaker 4: and actually be detrimental to the privacy of the former

246
00:12:46,400 --> 00:12:51,560
Speaker 4: Prime Minister Boris Johnson, so they are strongly resisting doing this. However,

247
00:12:51,679 --> 00:12:56,520
Speaker 4: last week Hallett highlighted that some areas of correspondence were

248
00:12:56,559 --> 00:13:02,560
Speaker 4: in her opinion, completely relevant to the investigation and the inquiry.

249
00:13:02,920 --> 00:13:03,840
Speaker 5: She marked out.

250
00:13:03,720 --> 00:13:06,720
Speaker 4: That some of these include talks between the former Prime

251
00:13:06,760 --> 00:13:11,440
Speaker 4: Minister and AIDS about the London Metropolitan Police's enforcement of

252
00:13:11,520 --> 00:13:15,120
Speaker 4: COVID regulations, and that was after the murder of Sarah

253
00:13:15,240 --> 00:13:19,200
Speaker 4: Everard in twenty twenty one. Now the spat could really

254
00:13:19,320 --> 00:13:23,400
Speaker 4: overshadow the start of the COVID inquiry later in June.

255
00:13:23,400 --> 00:13:26,880
Speaker 4: It starts on the thirteenth, But the Guardian Today's actually

256
00:13:26,920 --> 00:13:30,959
Speaker 4: reporting something. They saying the Cabinet Office could take unprecedent

257
00:13:31,080 --> 00:13:34,920
Speaker 4: action to prevent Boris Johnson's diaries and WhatsApp message has

258
00:13:34,960 --> 00:13:39,080
Speaker 4: been handed over to the official COVID inquiry.

259
00:13:38,640 --> 00:13:41,840
Speaker 1: They would have to write because as Lady Hallett has

260
00:13:41,880 --> 00:13:43,760
Speaker 1: pointed out, I mean she is a former Court of

261
00:13:43,800 --> 00:13:48,120
Speaker 1: Appeal judge who actually Johnson appointed himself. This idea of

262
00:13:48,200 --> 00:13:53,800
Speaker 1: unambiguously irrelevant. She her inquiry and she has the legal

263
00:13:53,880 --> 00:13:57,920
Speaker 1: power to decide that and she's saying the Cabinet Office

264
00:13:57,960 --> 00:14:00,680
Speaker 1: does not. So this is a kind of lead tussle

265
00:14:00,679 --> 00:14:03,000
Speaker 1: and just how far cabinet offers have prepared to go,

266
00:14:03,040 --> 00:14:04,080
Speaker 1: which is quite fascinating.

267
00:14:04,200 --> 00:14:08,120
Speaker 4: So absolutely, and if you know, we hear from the

268
00:14:08,160 --> 00:14:11,839
Speaker 4: Guardian that this could happen, it would be absolutely unprecedented

269
00:14:12,320 --> 00:14:15,439
Speaker 4: for this to go ahead, as you've just said, Caroline.

270
00:14:15,559 --> 00:14:18,400
Speaker 5: But also there's two sides to the story.

271
00:14:18,760 --> 00:14:22,200
Speaker 4: Lady Heather Hallett thinks that this is relevant material in

272
00:14:22,280 --> 00:14:26,800
Speaker 4: the investigation. You know, it's related to checkers and visitors

273
00:14:26,840 --> 00:14:29,680
Speaker 4: that went to see the Prime Minister there during the

274
00:14:29,720 --> 00:14:31,080
Speaker 4: lockdowns and COVID.

275
00:14:31,400 --> 00:14:33,640
Speaker 5: But the other side of the argument is.

276
00:14:33,640 --> 00:14:37,880
Speaker 4: Once again Johnson's privacy out in the open. So where

277
00:14:37,880 --> 00:14:40,400
Speaker 4: do we draw the line. We'll all know what happens

278
00:14:40,560 --> 00:14:42,480
Speaker 4: this afternoon at about four pm.

279
00:14:42,880 --> 00:14:44,040
Speaker 2: Okay, let's go to the Times.

280
00:14:44,080 --> 00:14:44,240
Speaker 6: Next.

281
00:14:44,360 --> 00:14:49,720
Speaker 3: Leanne Wpps Nvidia deal to change advertising by embracing AI.

282
00:14:50,040 --> 00:14:52,800
Speaker 4: Yeah, this is actually so interesting because we know AI

283
00:14:53,080 --> 00:14:56,400
Speaker 4: just seems to be everywhere at the moment, exploding as

284
00:14:56,480 --> 00:14:59,280
Speaker 4: we read every article about what's going to happen. Now,

285
00:14:59,280 --> 00:15:03,120
Speaker 4: the world's biggest advertising agency, which is of course UK based,

286
00:15:03,200 --> 00:15:07,200
Speaker 4: that's WPP, is teaming up with Video and that's of

287
00:15:07,240 --> 00:15:11,000
Speaker 4: course the American chip company. Now why are they joining forces.

288
00:15:11,280 --> 00:15:15,360
Speaker 4: It's to develop a platform that will create automated digital

289
00:15:15,520 --> 00:15:22,119
Speaker 4: adverts using artificial intelligence. Now this sounds pretty incredible. WPP

290
00:15:22,280 --> 00:15:27,040
Speaker 4: says integrating these three D tools with generative AI will

291
00:15:27,080 --> 00:15:31,640
Speaker 4: allow its creative teams to just produce all this commercial

292
00:15:32,000 --> 00:15:35,480
Speaker 4: content such as images and videos at.

293
00:15:35,320 --> 00:15:37,160
Speaker 5: This incredible speed.

294
00:15:37,600 --> 00:15:41,280
Speaker 4: So basically they will outline a platform, put it all

295
00:15:41,360 --> 00:15:45,400
Speaker 4: to AI, and the next minute will have all these

296
00:15:45,440 --> 00:15:46,440
Speaker 4: amazing adverts.

297
00:15:46,520 --> 00:15:49,960
Speaker 1: I've seen some AI beer commercials and other people sort

298
00:15:50,000 --> 00:15:52,480
Speaker 1: of experiment. I mean they look weird frankly at yes,

299
00:15:52,560 --> 00:15:54,960
Speaker 1: of course, you can imagine that in three or six

300
00:15:55,120 --> 00:15:59,200
Speaker 1: or twelve months time they'll probably look pretty credible. Just lastly,

301
00:15:59,320 --> 00:16:03,920
Speaker 1: the Guardian story around Mars bar rappers being changed for paper.

302
00:16:04,200 --> 00:16:06,160
Speaker 5: There's actually a serious undertone to this.

303
00:16:06,640 --> 00:16:10,800
Speaker 4: Of course, it's all about sustainability initiatives right now, and

304
00:16:10,880 --> 00:16:15,760
Speaker 4: everyone's looking for environmentally friendly alternatives to the plastic that

305
00:16:15,840 --> 00:16:20,400
Speaker 4: we do use for lots of things like Chriss chocolate bars,

306
00:16:20,680 --> 00:16:24,840
Speaker 4: Mars bar. Current plastic wrappers are not recyclable, as is

307
00:16:24,880 --> 00:16:27,240
Speaker 4: the case with several other kinds of packaging.

308
00:16:27,360 --> 00:16:28,480
Speaker 5: So now we're going to.

309
00:16:28,520 --> 00:16:31,240
Speaker 4: Get paper packaging on Mars bars and it's going to

310
00:16:31,280 --> 00:16:35,560
Speaker 4: be trialed in various Tesco supermarkets. So traditional wrapping looks

311
00:16:35,600 --> 00:16:37,520
Speaker 4: like it's no longer happening.

312
00:16:38,520 --> 00:16:40,080
Speaker 2: This is Bloomberg Daybreak Europe.

313
00:16:40,120 --> 00:16:42,920
Speaker 3: You're morning brief on the stories making news from London

314
00:16:42,960 --> 00:16:44,360
Speaker 3: to Wall Street and beyond.

315
00:16:44,640 --> 00:16:47,840
Speaker 1: Look for us on your podcast feed every morning on Apple,

316
00:16:48,000 --> 00:16:50,680
Speaker 1: Spotify and anywhere else you get your podcasts.

317
00:16:50,720 --> 00:16:53,760
Speaker 3: You can also listen live each morning on London Dab Radio,

318
00:16:53,800 --> 00:16:56,480
Speaker 3: the Bloomberg Business app, and Bloomberg dot Com.

319
00:16:56,520 --> 00:16:59,280
Speaker 1: Our flagship New York station is also available on your

320
00:16:59,320 --> 00:17:04,040
Speaker 1: Amazon Let devices. Just say Alexa play Bloomberg eleven thirty.

321
00:17:04,280 --> 00:17:05,520
Speaker 1: I'm Caroline Hepka and.

322
00:17:05,520 --> 00:17:06,320
Speaker 2: I'm Stephen Carol.

323
00:17:06,400 --> 00:17:08,720
Speaker 3: Join us again tomorrow morning for all the news you

324
00:17:08,800 --> 00:17:14,240
Speaker 3: need to start your day right here on Bloomberg Daybreak Europe.