1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,920 --> 00:00:12,240 Speaker 2: This is the Blue Big Day baq At podcast. Good morning, 3 00:00:12,280 --> 00:00:15,080 Speaker 2: It's Wednesday, the twenty second of October. I'm Caroline Hepga 4 00:00:15,200 --> 00:00:16,319 Speaker 2: in London and. 5 00:00:16,239 --> 00:00:19,319 Speaker 1: I'm Stephen Caroline Brussels. Coming up today, the price of 6 00:00:19,320 --> 00:00:22,200 Speaker 1: gold sees its biggest fall in more than a decade, 7 00:00:22,280 --> 00:00:24,840 Speaker 1: raising questions about its record breaking rally. 8 00:00:25,520 --> 00:00:28,520 Speaker 2: Europe and Ukraine are working on a proposal to end 9 00:00:28,600 --> 00:00:31,639 Speaker 2: Russia's war to pitch to President Donald Trump. 10 00:00:32,240 --> 00:00:35,559 Speaker 1: Plus why an overburdens sewer in Cambridge has become a 11 00:00:35,600 --> 00:00:38,760 Speaker 1: symbol of the uk struggle to overhaul its economy. 12 00:00:39,200 --> 00:00:41,199 Speaker 3: Let's start with a roundup of our top stories. 13 00:00:42,320 --> 00:00:45,159 Speaker 1: Gold has seen its steepest selloff in years, putting an 14 00:00:45,200 --> 00:00:48,559 Speaker 1: abrupt halt to its record rally prices, and the precious 15 00:00:48,600 --> 00:00:51,519 Speaker 1: metal dropped by as much as six point three percent 16 00:00:51,600 --> 00:00:54,480 Speaker 1: in trading yesterday, the biggest intra day fall in more 17 00:00:54,520 --> 00:00:58,360 Speaker 1: than twelve years. Suki Cooper is Standard Charters Global head 18 00:00:58,360 --> 00:01:01,680 Speaker 1: of Commodities Research. She says this is the first real 19 00:01:01,760 --> 00:01:02,960 Speaker 1: test of the Mega rally. 20 00:01:03,640 --> 00:01:05,760 Speaker 4: I think that currently we are seeing something of a 21 00:01:05,800 --> 00:01:08,720 Speaker 4: healthy correction. We wouldn't be surprised if we see crisis 22 00:01:08,720 --> 00:01:12,720 Speaker 4: digging below four thousand dollars parounced. From a technical standpoint, 23 00:01:12,720 --> 00:01:14,959 Speaker 4: I think that provides the best guidance in terms of 24 00:01:15,000 --> 00:01:16,760 Speaker 4: what sort of levels we could be looking at in 25 00:01:16,760 --> 00:01:17,360 Speaker 4: the near ten. 26 00:01:19,000 --> 00:01:21,840 Speaker 1: Cooper notes that gold prices are still up almost sixty 27 00:01:21,880 --> 00:01:24,800 Speaker 1: percent this year, and she expects them to recover. The 28 00:01:24,840 --> 00:01:27,920 Speaker 1: metal's record breaking year has been driven by buying from 29 00:01:27,959 --> 00:01:31,880 Speaker 1: central banks and worries about fiscal deficits and inflation. 30 00:01:33,560 --> 00:01:36,360 Speaker 2: US President Donald Trump says that he doesn't want a 31 00:01:36,440 --> 00:01:40,640 Speaker 2: wasted meeting with Russia's Vladimir Putin. Trump told reporters he 32 00:01:40,720 --> 00:01:44,320 Speaker 2: isn't scrapping a planned second summit, but he repeated his 33 00:01:44,440 --> 00:01:47,640 Speaker 2: desire to see the war in Ukraine frozen along current 34 00:01:47,680 --> 00:01:51,520 Speaker 2: battle lines, a position repeatedly rejected by Russia. The US 35 00:01:51,560 --> 00:01:54,480 Speaker 2: president says that he's still assessing the situation. 36 00:01:55,320 --> 00:01:57,200 Speaker 5: I don't want to have a wasted meeting. I don't 37 00:01:57,200 --> 00:01:59,440 Speaker 5: want to have a wasted time. So I'll see what happens. 38 00:01:59,480 --> 00:02:01,640 Speaker 5: But and I said, go to the line, go to 39 00:02:01,680 --> 00:02:06,000 Speaker 5: the line of the battle, on the battlefield lines, and 40 00:02:06,120 --> 00:02:09,480 Speaker 5: you pull back and you go home, and everybody take 41 00:02:09,560 --> 00:02:11,680 Speaker 5: some time off because you got two countries that are 42 00:02:11,760 --> 00:02:14,840 Speaker 5: killing each other. Two countries are losing five to seven 43 00:02:14,919 --> 00:02:18,040 Speaker 5: thousand soldiers a week. So we'll see what happens. Since 44 00:02:18,360 --> 00:02:20,000 Speaker 5: we haven't made a determination area. 45 00:02:20,960 --> 00:02:23,639 Speaker 2: Donald Trump was speaking after a White House official had 46 00:02:23,639 --> 00:02:26,360 Speaker 2: said earlier that he and Putin had no plans to 47 00:02:26,400 --> 00:02:30,480 Speaker 2: meet in the immediate future. This after a phone conversation 48 00:02:31,160 --> 00:02:34,720 Speaker 2: with the krem In last week, with President Trump having 49 00:02:34,760 --> 00:02:38,080 Speaker 2: said that he would meet his Russian counterpart within two. 50 00:02:37,919 --> 00:02:38,440 Speaker 3: Weeks or so. 51 00:02:39,240 --> 00:02:42,280 Speaker 1: European countries are working with Ukraine in a fresh effort 52 00:02:42,320 --> 00:02:45,440 Speaker 1: to end the conflict with Russia. It's the latest pushback 53 00:02:45,440 --> 00:02:49,640 Speaker 1: against Vladimir Potin's renewed demands for surrender. Bloomberg's Tea Adebayo 54 00:02:49,720 --> 00:02:50,480 Speaker 1: has more. 55 00:02:50,600 --> 00:02:55,760 Speaker 6: The return of deported children, prisoner exchanges, and security guarantees, 56 00:02:56,320 --> 00:02:59,280 Speaker 6: all ambitions of a new European proposal to end the 57 00:02:59,360 --> 00:03:03,400 Speaker 6: Russia Ukraine in war. Bloomberg understands countries in the region 58 00:03:03,440 --> 00:03:06,000 Speaker 6: are working on plans to be overseen by a peace 59 00:03:06,040 --> 00:03:10,400 Speaker 6: board chaired by US President Donald Trump. Under the agreement, 60 00:03:10,520 --> 00:03:14,359 Speaker 6: sanctions on Russia would gradually be lifted, and Ukraine would 61 00:03:14,400 --> 00:03:17,720 Speaker 6: also receive funds to repair war damage and a pathway 62 00:03:17,760 --> 00:03:22,200 Speaker 6: to rapidly join the EU. According to sources, European officials 63 00:03:22,280 --> 00:03:25,360 Speaker 6: may travel to the US this week to discuss the plans, 64 00:03:25,639 --> 00:03:28,480 Speaker 6: and any proposal would still need buy in from Washington. 65 00:03:29,160 --> 00:03:32,040 Speaker 6: In London twa Adebayo Bloomberg Radio. 66 00:03:32,840 --> 00:03:36,760 Speaker 2: The US person has raised hopes of securing a good 67 00:03:36,840 --> 00:03:40,680 Speaker 2: deal on trade with China's Shijingping, but concedes that talks 68 00:03:40,720 --> 00:03:44,160 Speaker 2: between them may fail to materialize. Donald Trump says that 69 00:03:44,200 --> 00:03:47,120 Speaker 2: he has a great relationship with Ji and expects their 70 00:03:47,160 --> 00:03:50,280 Speaker 2: planned meeting later this month to be very successful, but 71 00:03:50,360 --> 00:03:53,960 Speaker 2: he also acknowledged that things can happen that might get 72 00:03:54,000 --> 00:03:56,240 Speaker 2: in the way of a meeting. Our senior US government 73 00:03:56,400 --> 00:04:00,600 Speaker 2: editor Derek Warbank says Trump is leaving himself an exit route. 74 00:04:01,160 --> 00:04:04,480 Speaker 7: If we're looking at vibes, we're in happy talk right now, 75 00:04:04,840 --> 00:04:07,680 Speaker 7: but there's an awful lot of uncertainty here. I do 76 00:04:07,760 --> 00:04:10,080 Speaker 7: think that you're seeing a president who does not want 77 00:04:10,120 --> 00:04:13,560 Speaker 7: to lock himself up into the idea of having to 78 00:04:13,640 --> 00:04:16,640 Speaker 7: make a deal, the idea that no deal is bad 79 00:04:16,800 --> 00:04:19,320 Speaker 7: and that any deal is better than no deal. I 80 00:04:19,360 --> 00:04:22,160 Speaker 7: think Trump very much is saying I think we can 81 00:04:22,200 --> 00:04:24,280 Speaker 7: make a deal. I'd like to make the right deal, 82 00:04:24,640 --> 00:04:27,799 Speaker 7: but he's giving himself space to walk away if none 83 00:04:27,880 --> 00:04:28,599 Speaker 7: is presented. 84 00:04:29,480 --> 00:04:32,640 Speaker 2: Derek Wallbank, there Gie, and Trump are scheduled to meet 85 00:04:32,680 --> 00:04:34,880 Speaker 2: at the summit in South Korea in two weeks time. 86 00:04:35,200 --> 00:04:38,320 Speaker 2: Will Treasury Sectory Scott Bessett will meet his Chinese counterparts 87 00:04:38,360 --> 00:04:41,760 Speaker 2: over the weekend, delay the groundwork for a de escalation 88 00:04:41,839 --> 00:04:44,760 Speaker 2: of trade tensions. It comes as the US President said 89 00:04:44,760 --> 00:04:48,960 Speaker 2: that he'd had assurances from India's Prime Minister Nuendra Modi 90 00:04:49,120 --> 00:04:52,839 Speaker 2: that the country would wind down purchases of Russian oil. 91 00:04:54,040 --> 00:04:56,960 Speaker 1: Netflix as a tax dispute with Brazil cut into its 92 00:04:57,000 --> 00:05:00,360 Speaker 1: third quarter earnings, marring results that otherwise fell in line 93 00:05:00,360 --> 00:05:04,080 Speaker 1: with Wall Street estimates. The world's most valuable entertainment company 94 00:05:04,080 --> 00:05:08,160 Speaker 1: posted quarterly operating income of three point twenty four billion dollars, 95 00:05:08,400 --> 00:05:12,520 Speaker 1: around four hundred million below its own forecast and analysts estimates. 96 00:05:12,920 --> 00:05:15,599 Speaker 1: Netflix had to pay around six hundred and nineteen million 97 00:05:15,680 --> 00:05:18,719 Speaker 1: dollars to settle a multi year tax dispute with Brazilian 98 00:05:18,720 --> 00:05:22,200 Speaker 1: authorities going back to twenty twenty two. The company said 99 00:05:22,240 --> 00:05:25,000 Speaker 1: it doesn't expect the matter to have a material impact 100 00:05:25,040 --> 00:05:26,480 Speaker 1: on future results. 101 00:05:27,279 --> 00:05:31,120 Speaker 2: Now to breaking earnings news, the Italian bank UniCredit has 102 00:05:31,160 --> 00:05:35,440 Speaker 2: reported third quarter profits and revenues that beat expectations. Net 103 00:05:35,480 --> 00:05:38,880 Speaker 2: income came in at two point six three billion euros, 104 00:05:38,920 --> 00:05:42,560 Speaker 2: some two hundred and forty million above estimates. The bank 105 00:05:42,600 --> 00:05:45,880 Speaker 2: has maintained its full year profit guidance at about ten 106 00:05:45,920 --> 00:05:48,760 Speaker 2: and a half billion euros. UniCredit has been on a 107 00:05:48,800 --> 00:05:52,080 Speaker 2: buying spree in recent months, building stakes in Greece's Alpha 108 00:05:52,120 --> 00:05:56,520 Speaker 2: Bank and Germany's Comments Bank. In July, UniCredit dropped its bid, 109 00:05:56,560 --> 00:06:01,120 Speaker 2: though to acquire small arrival Banco BPM, after opposition from 110 00:06:01,120 --> 00:06:02,239 Speaker 2: the Italian government. 111 00:06:03,000 --> 00:06:05,760 Speaker 1: Bloomberg has learned that Anthropic is in talks with Google 112 00:06:05,800 --> 00:06:08,800 Speaker 1: about a deal for cloud computing services valued in the 113 00:06:08,920 --> 00:06:12,080 Speaker 1: high tens of billions of dollars. The plan, which has 114 00:06:12,080 --> 00:06:15,480 Speaker 1: not been finalized, involves Google providing cloud computing services to 115 00:06:15,520 --> 00:06:18,479 Speaker 1: the AI company. Source has told Bloomberg the deal will 116 00:06:18,520 --> 00:06:23,040 Speaker 1: allow Anthropic to use Google's tensor processing units or TPUs, 117 00:06:23,360 --> 00:06:26,800 Speaker 1: the company's chips that accelerate machine learning workloads. Talks are 118 00:06:26,839 --> 00:06:29,480 Speaker 1: in their early stages and details could change. 119 00:06:30,600 --> 00:06:33,240 Speaker 2: Bank of England Governor Andrew Bailey is warning that alarm 120 00:06:33,360 --> 00:06:36,719 Speaker 2: bells are rigging in the private markets. The central banker 121 00:06:36,760 --> 00:06:39,360 Speaker 2: says that when he has looked at the way that 122 00:06:39,440 --> 00:06:42,880 Speaker 2: loans is structured in the sector. He sees echoes of 123 00:06:42,920 --> 00:06:45,400 Speaker 2: two thousand and eight were involved for. 124 00:06:45,480 --> 00:06:48,120 Speaker 8: The financial crisis and jury the alarm bells start going off. 125 00:06:48,160 --> 00:06:52,440 Speaker 8: At that point, I start in an obsession with people 126 00:06:52,480 --> 00:06:56,200 Speaker 8: from the private equity and private credit world some months ago, 127 00:06:56,320 --> 00:06:58,279 Speaker 8: who of course told me that everything was fine in 128 00:06:58,320 --> 00:07:00,000 Speaker 8: their world apart from the role of the rating age 129 00:07:00,160 --> 00:07:02,000 Speaker 8: sus and I said, well, we're not playing that movie again, 130 00:07:02,080 --> 00:07:02,400 Speaker 8: aren't we. 131 00:07:03,640 --> 00:07:07,320 Speaker 2: Banker Governor Andrew Bailey speaking, they're to members of Parliament 132 00:07:07,320 --> 00:07:09,960 Speaker 2: here in the UK. Here is the latest veteran of 133 00:07:10,000 --> 00:07:14,000 Speaker 2: the global financial crisis to publicly worry about private credit 134 00:07:14,080 --> 00:07:17,720 Speaker 2: after JP Morgan CEO Jamie Diamond spoke of cock croaches 135 00:07:17,920 --> 00:07:21,600 Speaker 2: last week. Private credit executives, though, have hit back, saying 136 00:07:21,640 --> 00:07:26,000 Speaker 2: that they shouldn't be attacked for legacy banks failures. So 137 00:07:26,080 --> 00:07:28,119 Speaker 2: those are some of our top stories for you this morning. 138 00:07:28,200 --> 00:07:30,720 Speaker 2: Let's just go through the markets this hour. So we 139 00:07:31,000 --> 00:07:34,240 Speaker 2: did see yesterday a plunge in gold and silver, but 140 00:07:34,280 --> 00:07:37,960 Speaker 2: that has eased in Asia trading hours. We did see 141 00:07:38,120 --> 00:07:42,000 Speaker 2: the big bout of volatility. Asian stocks this morning are 142 00:07:42,280 --> 00:07:45,360 Speaker 2: mostly lower right now for the MSCI Asia Pacific Index, 143 00:07:45,680 --> 00:07:49,840 Speaker 2: US exity futures gaining upon stock futures down this morning, 144 00:07:49,840 --> 00:07:52,400 Speaker 2: TENNY treasury yields easing about a basis point to three 145 00:07:52,520 --> 00:07:56,040 Speaker 2: ninety five. Bitcoin has stumbled. We're down more than two 146 00:07:56,120 --> 00:07:59,560 Speaker 2: percent this morning. Oil is up on that possibility of 147 00:07:59,600 --> 00:08:03,600 Speaker 2: a US India trade deal. Are loads of earnings today, Heineken, 148 00:08:03,640 --> 00:08:07,800 Speaker 2: for example, cutting its adjusted operating profit growth outlook. So 149 00:08:08,240 --> 00:08:10,720 Speaker 2: that and UniCredit and many others. 150 00:08:12,640 --> 00:08:14,080 Speaker 1: Well. In a moment, we'll bring you more on the 151 00:08:14,120 --> 00:08:16,440 Speaker 1: big moves and gold and silver prices, plus why a 152 00:08:16,480 --> 00:08:19,680 Speaker 1: problem with sewers may be holding back the UK's life 153 00:08:19,680 --> 00:08:22,520 Speaker 1: sciences ambitions. But another story that I've been reading this 154 00:08:22,600 --> 00:08:26,760 Speaker 1: morning is the shine already disappearing from the Boo boo dolls. 155 00:08:26,960 --> 00:08:28,440 Speaker 1: I mean, I feel like that they come up in 156 00:08:28,480 --> 00:08:32,079 Speaker 1: conversation far too often for anything to be healthy and 157 00:08:32,080 --> 00:08:35,560 Speaker 1: Bloomberg Opinion chili Ren Bloomber Companion columns. Julien has been 158 00:08:35,559 --> 00:08:38,079 Speaker 1: writing about this and how it might not just be 159 00:08:38,200 --> 00:08:40,120 Speaker 1: me who's sick of hearing about them at this stage. 160 00:08:40,559 --> 00:08:43,440 Speaker 1: Shares are actually down in pop Mart from twenty five 161 00:08:43,559 --> 00:08:46,959 Speaker 1: percent from their August peak, and the question that investors 162 00:08:47,000 --> 00:08:49,160 Speaker 1: are now asking is is that is PopMart a one 163 00:08:49,200 --> 00:08:52,199 Speaker 1: trick pony or can it transform Lea Boo Boo into 164 00:08:52,240 --> 00:08:54,160 Speaker 1: a sort of a lasting brand. She looks at the 165 00:08:54,280 --> 00:08:57,679 Speaker 1: likes of Pokemon or Lego, who've managed to make particularly 166 00:08:57,720 --> 00:09:00,600 Speaker 1: in Pokemon's case, you know, a viral trend asked into 167 00:09:00,840 --> 00:09:06,319 Speaker 1: continuing and extremely large revenues, and particularly worried about scarcity. 168 00:09:07,240 --> 00:09:09,920 Speaker 2: Yeah, listen, Lego is an absolute machine and it doesn't 169 00:09:09,920 --> 00:09:12,360 Speaker 2: look like pop mart is yet there. 170 00:09:13,200 --> 00:09:14,200 Speaker 3: Look, I had to have a. 171 00:09:14,200 --> 00:09:17,280 Speaker 2: Little look on Amazon and other websites to see this morning. 172 00:09:17,440 --> 00:09:20,520 Speaker 2: Labooms are still incredibly scarce, and the other offerings like 173 00:09:20,640 --> 00:09:23,400 Speaker 2: cry Baby and others are available, so you have to 174 00:09:23,440 --> 00:09:26,360 Speaker 2: think they haven't kind of caught far as much with buyers. 175 00:09:26,440 --> 00:09:30,040 Speaker 2: But yes, definitely, I see a worrying number of labooos 176 00:09:30,120 --> 00:09:33,760 Speaker 2: attached to adults bags of various description. I think it's 177 00:09:33,760 --> 00:09:34,920 Speaker 2: pretty strange, but it's. 178 00:09:36,400 --> 00:09:38,760 Speaker 9: That's the question, you know, this is the action. 179 00:09:39,120 --> 00:09:40,600 Speaker 1: And look, the question of scarcity is an interesting one 180 00:09:40,640 --> 00:09:42,240 Speaker 1: because it's a good strategy from one point of view 181 00:09:42,280 --> 00:09:44,280 Speaker 1: to drive up prices. But actually, she Ran says that 182 00:09:44,440 --> 00:09:47,040 Speaker 1: risks alienating people who'll just get sick of it and say, well, 183 00:09:47,040 --> 00:09:48,520 Speaker 1: I can't buy one, so I'm not going to bother. 184 00:09:48,800 --> 00:09:52,000 Speaker 1: And she talks about this term the IQ tax, which 185 00:09:52,080 --> 00:09:54,720 Speaker 1: is slang in China for someone who has with bad judgment, 186 00:09:54,760 --> 00:09:57,920 Speaker 1: who pays an exorbitant amount for poor quality products, and 187 00:09:58,040 --> 00:10:00,680 Speaker 1: she says that Laboo could be at risk people talking 188 00:10:00,720 --> 00:10:02,520 Speaker 1: about an IQ tax and people who buy them in 189 00:10:02,559 --> 00:10:03,080 Speaker 1: the future as well. 190 00:10:03,120 --> 00:10:03,680 Speaker 9: That's a great piece. 191 00:10:03,679 --> 00:10:05,679 Speaker 1: You'll find it at Blomberg down Carns Slash Opinion and 192 00:10:05,720 --> 00:10:07,600 Speaker 1: we'll put an ink in our podcast here notes as well. 193 00:10:09,200 --> 00:10:11,360 Speaker 2: Right, let's talk about our top story. The price of 194 00:10:11,440 --> 00:10:14,040 Speaker 2: gold is stabilizing this morning after it's biggest drop in 195 00:10:14,160 --> 00:10:17,480 Speaker 2: over a decade. Yesterday, Silver, which had also hit record 196 00:10:17,600 --> 00:10:21,240 Speaker 2: highs in recent days, slumped to our market's life stashes. 197 00:10:21,280 --> 00:10:24,160 Speaker 2: Mark Cranfield joins us now for more. Mark, good morning. 198 00:10:24,360 --> 00:10:27,240 Speaker 2: How significant was the drop in gold and silver and 199 00:10:28,120 --> 00:10:29,160 Speaker 2: why did it happen? 200 00:10:29,280 --> 00:10:29,880 Speaker 7: What drove it? 201 00:10:30,760 --> 00:10:34,960 Speaker 10: Yeah, good morning, Very significantly. As you say gold, it's 202 00:10:35,000 --> 00:10:37,160 Speaker 10: biggest drop for more than a decade, and it looked 203 00:10:37,200 --> 00:10:39,800 Speaker 10: as though it was going to continue this morning. Gold 204 00:10:39,840 --> 00:10:43,200 Speaker 10: and silver in the early stages of Asian trading today 205 00:10:43,280 --> 00:10:46,440 Speaker 10: they were very weak, but around the four thousand level 206 00:10:46,520 --> 00:10:49,160 Speaker 10: pretty close to there. That's where we saw the dip 207 00:10:49,280 --> 00:10:52,520 Speaker 10: buying come in to stabilize gold. So for the time being, 208 00:10:52,640 --> 00:10:55,760 Speaker 10: it looks as though people are still very interested to 209 00:10:55,960 --> 00:10:58,880 Speaker 10: get back in, but the whole thing is starting to 210 00:10:58,960 --> 00:11:01,959 Speaker 10: look a little bit per care. It's no secret that 211 00:11:02,240 --> 00:11:05,200 Speaker 10: a lot of speculative money has got involved in gold 212 00:11:05,240 --> 00:11:07,560 Speaker 10: and silver over the past few months. You can tell 213 00:11:07,640 --> 00:11:11,840 Speaker 10: from the IDIA ETF numbers, the future's numbers, general turnover 214 00:11:12,400 --> 00:11:15,240 Speaker 10: in the markets, and the fact that you're seeing queues 215 00:11:15,280 --> 00:11:18,679 Speaker 10: of people at gold shops, whether it's in Sydney, whether 216 00:11:18,720 --> 00:11:21,599 Speaker 10: it's in India or Vietnam, all kinds of places in 217 00:11:21,640 --> 00:11:25,040 Speaker 10: the world. That is usually the sign of a market top. 218 00:11:25,320 --> 00:11:28,079 Speaker 10: It's probably have taxi drivers probably recommending it as a 219 00:11:28,120 --> 00:11:30,959 Speaker 10: good investment as well. Certainly all the things are in 220 00:11:31,040 --> 00:11:35,960 Speaker 10: place to suggest that the market is overheated. Quite possibly, 221 00:11:36,200 --> 00:11:38,480 Speaker 10: we've seen the peak for this year. It's going to 222 00:11:38,480 --> 00:11:40,760 Speaker 10: be a bit volatile and bumpy from here on in. 223 00:11:40,880 --> 00:11:44,439 Speaker 10: But with so much money sloshing around positions very large, 224 00:11:44,800 --> 00:11:47,520 Speaker 10: you would expect things to be choppy and volatile for 225 00:11:47,600 --> 00:11:48,120 Speaker 10: a little while. 226 00:11:48,280 --> 00:11:52,160 Speaker 1: Just yet, does it expose a question of broader risk 227 00:11:52,440 --> 00:11:56,440 Speaker 1: on markets, and that if the momenta behind gold is faltering, 228 00:11:56,520 --> 00:12:00,320 Speaker 1: should we be even more worried about equities who also 229 00:12:00,360 --> 00:12:01,800 Speaker 1: seen repeated record eyes. 230 00:12:02,440 --> 00:12:06,080 Speaker 10: Most certainly if we see any cracks in this earning season. 231 00:12:06,280 --> 00:12:10,480 Speaker 10: So two places where people are putting the lines together 232 00:12:10,679 --> 00:12:13,680 Speaker 10: is that the AI related trades. People have been jumping 233 00:12:13,720 --> 00:12:16,960 Speaker 10: into all kinds of themes related to AI. There may 234 00:12:17,080 --> 00:12:20,000 Speaker 10: well be a lot of overvaluation in that space, and 235 00:12:20,160 --> 00:12:23,280 Speaker 10: gold was running up at about the same time as well. 236 00:12:23,760 --> 00:12:26,959 Speaker 10: Gold is beginning to soften. Now, if we get some 237 00:12:27,600 --> 00:12:30,880 Speaker 10: discontent with what the AI outlook is for twenty twenty six, 238 00:12:31,000 --> 00:12:34,040 Speaker 10: if some of the suggestions from the major firms over 239 00:12:34,080 --> 00:12:37,040 Speaker 10: the next few weeks are not as rosy as the 240 00:12:37,120 --> 00:12:39,520 Speaker 10: big numbers which have already been put into their pricing 241 00:12:39,600 --> 00:12:42,360 Speaker 10: for their stock prices, then people will probably put two 242 00:12:42,360 --> 00:12:44,640 Speaker 10: and two together and say, okay AI is running out 243 00:12:44,640 --> 00:12:47,400 Speaker 10: of steam. Precious metals are running out of steam. There 244 00:12:47,440 --> 00:12:50,079 Speaker 10: are two momentum, the two biggest momentum plays of the 245 00:12:50,200 --> 00:12:53,719 Speaker 10: year both faltering, and the two could feed on each other. 246 00:12:53,840 --> 00:12:57,200 Speaker 10: That would certainly be a big knock on effect across 247 00:12:57,240 --> 00:13:00,280 Speaker 10: asset markets. So now that really depends on what these 248 00:13:00,320 --> 00:13:02,280 Speaker 10: big tech companies have to say about the outlook for 249 00:13:02,360 --> 00:13:02,760 Speaker 10: next year. 250 00:13:03,880 --> 00:13:05,840 Speaker 3: Yeah. I think that is really really interesting. 251 00:13:05,880 --> 00:13:09,360 Speaker 2: I wonder whether you've also read John Author's latest column 252 00:13:09,400 --> 00:13:11,599 Speaker 2: out this morning, where he talks about after such a 253 00:13:11,679 --> 00:13:14,120 Speaker 2: big year for gold, it's a gold dinger. 254 00:13:14,480 --> 00:13:15,360 Speaker 3: I liked that one. 255 00:13:16,160 --> 00:13:16,360 Speaker 2: Mark. 256 00:13:16,400 --> 00:13:18,040 Speaker 3: Thank you so much for being with us this morning. 257 00:13:18,280 --> 00:13:20,679 Speaker 2: Our market's life state is Mark Cranfield giving you some 258 00:13:21,240 --> 00:13:24,079 Speaker 2: lines and explanations about what's been happening in the precious 259 00:13:24,080 --> 00:13:24,960 Speaker 2: metals markets. 260 00:13:25,760 --> 00:13:29,120 Speaker 3: Stay with us. More from Bloomberg Daybaqube coming up after this. 261 00:13:37,920 --> 00:13:40,240 Speaker 1: Were the UK's ambition to become a global leader in 262 00:13:40,320 --> 00:13:43,040 Speaker 1: life sciences being put to the test in Cambridge, where 263 00:13:43,080 --> 00:13:46,960 Speaker 1: rapid development and its biomedical campus is being hampered by 264 00:13:47,040 --> 00:13:51,520 Speaker 1: strained local infrastructure. Despite major investments from companies like Prologs 265 00:13:51,640 --> 00:13:55,480 Speaker 1: and the presence of pharmaceutical giant Astrozenica, basic utilities like 266 00:13:55,559 --> 00:13:59,000 Speaker 1: wastewater treatment are struggling to keep pace. Our health reporter 267 00:13:59,040 --> 00:14:02,040 Speaker 1: Actually Furlong joined us now for more on this story. Actually, 268 00:14:02,160 --> 00:14:04,959 Speaker 1: why is the sewage system a problem in Cambridge? 269 00:14:06,720 --> 00:14:09,240 Speaker 11: So the real problem is with Anglian Water, which is 270 00:14:09,280 --> 00:14:13,160 Speaker 11: responsible for sewerage in Cambridge, and what they have is 271 00:14:13,400 --> 00:14:16,680 Speaker 11: they don't have extra capacity, so they have to take 272 00:14:17,280 --> 00:14:21,440 Speaker 11: sewage from things like your household taps or your toilets. 273 00:14:21,600 --> 00:14:24,880 Speaker 11: What they don't have to take is trade effluent and 274 00:14:25,000 --> 00:14:26,920 Speaker 11: that you need apply for a license. So if you're 275 00:14:26,920 --> 00:14:29,920 Speaker 11: a biotech company, you're a big pharmaceutical company in Cambridge 276 00:14:30,200 --> 00:14:32,480 Speaker 11: and you want to open your new lab there, you 277 00:14:32,600 --> 00:14:35,520 Speaker 11: need permission to be able to just targe your waste 278 00:14:36,000 --> 00:14:38,600 Speaker 11: into the sewage system, and Anglian Water is saying, sorry, 279 00:14:39,280 --> 00:14:42,160 Speaker 11: we can't take additional waste, so that developers are telling 280 00:14:42,240 --> 00:14:45,880 Speaker 11: us that that's really become a significant problem for them. Prolags, 281 00:14:45,960 --> 00:14:48,720 Speaker 11: for example, have built these massive tanks underneath the new 282 00:14:48,880 --> 00:14:50,200 Speaker 11: development that they're building there. 283 00:14:50,920 --> 00:14:52,600 Speaker 9: They need to sort of have an alternative. 284 00:14:52,680 --> 00:14:55,080 Speaker 11: They're really saying that we'll just put these tanks there 285 00:14:55,160 --> 00:14:57,360 Speaker 11: and we'll get trucks to come and take the waste 286 00:14:57,400 --> 00:15:01,240 Speaker 11: away to ensure that they can actually get new tenants 287 00:15:01,520 --> 00:15:03,480 Speaker 11: into their building and to be. 288 00:15:03,480 --> 00:15:05,800 Speaker 2: Able to function. That's interesting. Is it part of a 289 00:15:05,880 --> 00:15:08,600 Speaker 2: wider problem in the UK? Then? I mean we've heard 290 00:15:08,680 --> 00:15:12,000 Speaker 2: so much about the issues of you know, the water 291 00:15:12,080 --> 00:15:13,360 Speaker 2: companies across the UK. 292 00:15:13,960 --> 00:15:16,080 Speaker 9: Very much, so, so this is not just an Anglian 293 00:15:16,160 --> 00:15:16,840 Speaker 9: Water problem. 294 00:15:17,400 --> 00:15:19,880 Speaker 11: Obviously, angling water is responsible for Cambridge, so that's a 295 00:15:19,920 --> 00:15:22,080 Speaker 11: problem in this life science has hub. But across the 296 00:15:22,160 --> 00:15:25,280 Speaker 11: country were seeing problems with steurage. You'll know when there's 297 00:15:25,320 --> 00:15:29,120 Speaker 11: heavy rains, you know, the rivers will be flatted with sewage. 298 00:15:29,360 --> 00:15:31,320 Speaker 11: In summer, you know, you might be worried about going 299 00:15:31,360 --> 00:15:33,760 Speaker 11: to swarm in the sea. So this is a problem 300 00:15:33,800 --> 00:15:36,520 Speaker 11: across the country. And these private companies are really responsible 301 00:15:36,560 --> 00:15:41,960 Speaker 11: for maintaining and increasing the capacity to take on additional wastewater. 302 00:15:42,280 --> 00:15:45,640 Speaker 11: And obviously the government has very ambitious housebuilding targets which 303 00:15:45,640 --> 00:15:48,440 Speaker 11: are going to mean you know, even additional waste in 304 00:15:48,520 --> 00:15:49,320 Speaker 11: the sewage system. 305 00:15:50,320 --> 00:15:52,200 Speaker 1: It's certainly not a headline that you want to have 306 00:15:52,280 --> 00:15:56,480 Speaker 1: associated with big ambitions for transforming the UK economy and 307 00:15:56,520 --> 00:15:59,840 Speaker 1: the emphasis the government has put on life sciences in particular. 308 00:16:00,280 --> 00:16:03,720 Speaker 1: How are these problems interacting, How are they affecting the 309 00:16:03,840 --> 00:16:07,120 Speaker 1: ambitions that the government and others have for attracting more 310 00:16:07,200 --> 00:16:08,360 Speaker 1: investment in this area. 311 00:16:09,440 --> 00:16:12,400 Speaker 11: It's a massive problem. So the sewage problem is just 312 00:16:12,480 --> 00:16:16,800 Speaker 11: a small sort of symbol of a much wider issue 313 00:16:17,120 --> 00:16:20,280 Speaker 11: within life sciences in the UK. So we've seen Astrosenica 314 00:16:20,360 --> 00:16:23,760 Speaker 11: say that they're not expanding or halting their expansion in Cambridge. 315 00:16:24,040 --> 00:16:27,320 Speaker 11: We've seen US company Merk say that they're pulling out 316 00:16:27,360 --> 00:16:32,080 Speaker 11: of a new facility in London, and companies across across 317 00:16:32,120 --> 00:16:34,320 Speaker 11: the life sciences industry are really saying that the UK 318 00:16:34,480 --> 00:16:35,600 Speaker 11: needs to be more attractive. 319 00:16:36,160 --> 00:16:37,200 Speaker 9: You know, we've got the US. 320 00:16:37,280 --> 00:16:40,400 Speaker 11: We've got President Trump saying build your manufacturing plants in 321 00:16:40,440 --> 00:16:44,800 Speaker 11: the US. We've got companies like Singapore offering you know, incentives. 322 00:16:44,960 --> 00:16:48,360 Speaker 11: Okay is really not offering anything comparable at the moment. 323 00:16:49,080 --> 00:16:51,320 Speaker 2: And so in terms of next steps, the pressure is 324 00:16:51,320 --> 00:16:53,960 Speaker 2: obviously on the government to do more on this. What 325 00:16:54,120 --> 00:16:56,560 Speaker 2: are they talking about, how are they thinking about this. 326 00:16:57,120 --> 00:16:59,080 Speaker 11: I think that the next critical step is going to 327 00:16:59,120 --> 00:17:01,440 Speaker 11: be to see what happens with drug prices. So at 328 00:17:01,480 --> 00:17:05,560 Speaker 11: the moment, there's negotiations ongoing with the US around the 329 00:17:06,000 --> 00:17:10,280 Speaker 11: UK's drug prices, which are very very low, particularly when 330 00:17:10,280 --> 00:17:11,879 Speaker 11: you compare them to the US, and the US is 331 00:17:11,920 --> 00:17:14,399 Speaker 11: obviously saying that the UK needs to increase drug prices. 332 00:17:14,560 --> 00:17:17,320 Speaker 11: Pharmaceutical companies also saying that. So I think if we 333 00:17:17,400 --> 00:17:21,080 Speaker 11: get some stabilization with drug prices, companies might actually say 334 00:17:21,400 --> 00:17:22,919 Speaker 11: this might be a better place to invest. 335 00:17:23,000 --> 00:17:24,680 Speaker 9: We might actually want to do more R and D here. 336 00:17:24,960 --> 00:17:28,080 Speaker 11: We want to bring our drugs to British patients, but 337 00:17:28,160 --> 00:17:30,159 Speaker 11: at the moment that's really we're seeing sort of a 338 00:17:30,240 --> 00:17:32,600 Speaker 11: standoff at that when we don't have an agreement yet. 339 00:17:33,400 --> 00:17:36,080 Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the 340 00:17:36,200 --> 00:17:39,199 Speaker 1: stories making news from London to Wall Street and beyond. 341 00:17:39,560 --> 00:17:43,520 Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify, 342 00:17:43,640 --> 00:17:45,520 Speaker 2: and anywhere else you get your podcasts. 343 00:17:45,760 --> 00:17:48,800 Speaker 1: You can also listen live each morning on London DAB Radio, 344 00:17:48,840 --> 00:17:51,160 Speaker 1: the Bloomberg Business app, and Bloomberg dot Com. 345 00:17:51,600 --> 00:17:54,320 Speaker 2: Our flagship New York station, is also available on your 346 00:17:54,359 --> 00:17:59,040 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 347 00:17:59,320 --> 00:18:01,040 Speaker 9: I'm Caroline and I'm Stephen. 348 00:18:01,119 --> 00:18:03,600 Speaker 1: Carol. Join us again tomorrow morning for all the news 349 00:18:03,680 --> 00:18:06,280 Speaker 1: you need to start your day right here on Bloomberg 350 00:18:06,359 --> 00:18:07,080 Speaker 1: Daybreak Europe.