1 00:00:00,200 --> 00:00:00,480 Speaker 1: Kiss. 2 00:00:00,600 --> 00:00:04,160 Speaker 2: Darmer's set to meet with US Finance CEOs is on 3 00:00:04,160 --> 00:00:06,000 Speaker 2: a trip to New York. This, of course, after the 4 00:00:06,120 --> 00:00:09,799 Speaker 2: gathering in Liverpool of the Party conference. The Prime Minister 5 00:00:10,200 --> 00:00:13,240 Speaker 2: has told the press in New York that more foreign 6 00:00:13,280 --> 00:00:17,360 Speaker 2: investment is crucial to growing the British economy. But after 7 00:00:17,440 --> 00:00:21,599 Speaker 2: quite a detail light labor Party conference, business is watching 8 00:00:21,960 --> 00:00:25,759 Speaker 2: for the budget. There's also the Global Investment Summit in 9 00:00:26,000 --> 00:00:29,520 Speaker 2: just eighteen days time. Joining us now to discuss this 10 00:00:29,640 --> 00:00:31,159 Speaker 2: and pleased to say as the Lord Mayor of the 11 00:00:31,200 --> 00:00:34,000 Speaker 2: City of London, Michael Minelli, are very warm welcome to 12 00:00:34,000 --> 00:00:34,800 Speaker 2: Bloomberg Radio. 13 00:00:34,800 --> 00:00:35,840 Speaker 1: Good morning and. 14 00:00:35,800 --> 00:00:37,800 Speaker 3: Good morning to you. It's great to be back at Bloomberg. 15 00:00:37,920 --> 00:00:43,560 Speaker 2: Ah super so in terms of what you're expecting from 16 00:00:43,760 --> 00:00:47,000 Speaker 2: the Chancellor. The Lloyd's of London chairman told me the 17 00:00:47,120 --> 00:00:51,800 Speaker 2: Chancellor has six weeks to win over investors. How do 18 00:00:51,840 --> 00:00:53,520 Speaker 2: you think she can do that now? 19 00:00:54,160 --> 00:00:56,200 Speaker 3: Well, I think the Chancellor has more than six weeks. 20 00:00:56,480 --> 00:00:59,480 Speaker 3: Investors are taking very much a long term view. I've 21 00:00:59,480 --> 00:01:02,160 Speaker 3: spent nearly one hundred days abroad this year, traveling to 22 00:01:02,320 --> 00:01:05,440 Speaker 3: about twenty five countries, and I think investors are relieved. 23 00:01:05,480 --> 00:01:07,319 Speaker 3: In fact, they were relieved by the previous government. We 24 00:01:07,319 --> 00:01:10,080 Speaker 3: saw a lot more stability coming in. This government has 25 00:01:10,120 --> 00:01:14,279 Speaker 3: exhibited a real understanding that stability is needed. That's clearly 26 00:01:14,280 --> 00:01:17,480 Speaker 3: political stability, but it is also stability uncertainty, and the 27 00:01:17,480 --> 00:01:20,640 Speaker 3: messages that they're projecting are really, in my opinion, quite good. 28 00:01:21,440 --> 00:01:23,200 Speaker 1: Does the concern come in You must have had this 29 00:01:23,240 --> 00:01:27,520 Speaker 1: conversation as well around the proposals, potential proposals, and we'll 30 00:01:27,520 --> 00:01:29,160 Speaker 1: see if that comes through in the budget of course 31 00:01:29,400 --> 00:01:32,880 Speaker 1: at the end of October, around for example, increasing taxes 32 00:01:32,880 --> 00:01:36,240 Speaker 1: on capital gains, the shared or carried interest tax proposals, 33 00:01:36,280 --> 00:01:38,720 Speaker 1: wealth taxes potentially as well in the mix, all of 34 00:01:38,720 --> 00:01:42,320 Speaker 1: those being voiced at least being suggested. And we've done 35 00:01:42,360 --> 00:01:45,880 Speaker 1: our own reporting on high net worth individuals, wealthy business 36 00:01:45,880 --> 00:01:48,120 Speaker 1: owners looking to relocate as a result of this. There 37 00:01:48,160 --> 00:01:51,240 Speaker 1: is that caution, There is that concern. Are you hearing 38 00:01:51,280 --> 00:01:52,440 Speaker 1: that as well? 39 00:01:52,440 --> 00:01:54,400 Speaker 3: We're always hearing that, but we were hearing that about 40 00:01:54,400 --> 00:01:55,720 Speaker 3: the previous governments as well. 41 00:01:55,840 --> 00:01:57,560 Speaker 1: As it increased, I mean, has it steps up. 42 00:01:57,600 --> 00:01:59,440 Speaker 3: No, I don't believe it has increased. But if you 43 00:01:59,440 --> 00:02:02,400 Speaker 3: were to have me for our personal ass from the budget, 44 00:02:02,440 --> 00:02:05,200 Speaker 3: it is very much The first one would be a stable, 45 00:02:05,480 --> 00:02:08,400 Speaker 3: simplified tax regime even and so a lot of this 46 00:02:08,480 --> 00:02:11,680 Speaker 3: discussion hopefully will calm down after we see the shape 47 00:02:11,720 --> 00:02:14,400 Speaker 3: of the budget. After that, we're quite interested in some 48 00:02:14,480 --> 00:02:18,320 Speaker 3: things to do with a particularly digital verification, which we 49 00:02:18,400 --> 00:02:21,639 Speaker 3: think might even be wildly misunderestimated in terms of the 50 00:02:21,680 --> 00:02:24,880 Speaker 3: amount of gross benefit it might give to the economy. 51 00:02:24,960 --> 00:02:28,120 Speaker 3: That's an exciting one for us. And finally, we'd also 52 00:02:28,200 --> 00:02:31,040 Speaker 3: like some clarity on net zero, particularly a gain more 53 00:02:31,080 --> 00:02:33,400 Speaker 3: stability there on the net zero policy. Those would probably 54 00:02:33,440 --> 00:02:34,640 Speaker 3: be our three biggest asks. 55 00:02:35,760 --> 00:02:39,760 Speaker 2: Is there a bit of mistiming though, I mean, we're 56 00:02:39,800 --> 00:02:43,799 Speaker 2: also looking ahead to the investment summit. This is going 57 00:02:43,800 --> 00:02:46,440 Speaker 2: to be held before the budget, which doesn't kind of 58 00:02:46,440 --> 00:02:49,120 Speaker 2: make sense to most people because we're waiting for the budget. 59 00:02:49,520 --> 00:02:51,320 Speaker 3: I think you're right, it probably makes a little bit. 60 00:02:51,600 --> 00:02:54,520 Speaker 3: There's probably some logical sequence that the budget is secured 61 00:02:54,520 --> 00:02:57,040 Speaker 3: and the investors come. But one of the things about 62 00:02:57,040 --> 00:03:00,280 Speaker 3: Britain is we do have an annual budget cycle. Manager 63 00:03:00,320 --> 00:03:03,639 Speaker 3: of budget cycle. Compared to many other countries, is exhibits 64 00:03:03,680 --> 00:03:07,399 Speaker 3: much more fluctuation and volatility, So investors will be expecting 65 00:03:07,440 --> 00:03:09,760 Speaker 3: that next year there'll be another budget cycle and another 66 00:03:10,120 --> 00:03:12,200 Speaker 3: I think it's important that Labor sets out that it 67 00:03:12,280 --> 00:03:15,920 Speaker 3: is a very much seeking global investment. Last year I 68 00:03:15,960 --> 00:03:18,239 Speaker 3: was at Hampton Court. I was surprised at how positive 69 00:03:18,280 --> 00:03:20,400 Speaker 3: it was. And even then we were picking up the 70 00:03:20,440 --> 00:03:24,240 Speaker 3: indications of concerns over utilities in particular water. Then, so 71 00:03:24,639 --> 00:03:28,000 Speaker 3: global investors are savvy. They're not waiting on this month, 72 00:03:28,680 --> 00:03:30,560 Speaker 3: or this week's or this day's announcement. 73 00:03:30,800 --> 00:03:33,919 Speaker 2: Okay, has there been a gat a change? We're about 74 00:03:34,000 --> 00:03:37,840 Speaker 2: eighty eighty five days into the administration. Has there been 75 00:03:37,920 --> 00:03:41,000 Speaker 2: a material change in terms of the evidence of investment 76 00:03:41,080 --> 00:03:43,800 Speaker 2: coming into Britain as a result of this new administration, 77 00:03:43,840 --> 00:03:46,760 Speaker 2: because that really is one of the key tests for 78 00:03:47,000 --> 00:03:48,120 Speaker 2: Starma and Reeves. 79 00:03:48,840 --> 00:03:50,840 Speaker 3: I'd completely agree with you know, there has been no 80 00:03:50,920 --> 00:03:54,720 Speaker 3: indication that I've seen of change, but there's no indication 81 00:03:54,800 --> 00:03:57,720 Speaker 3: of the decrease as much as there might be an increase. 82 00:03:58,160 --> 00:04:01,280 Speaker 3: And let's speak candidate two and a bit months in 83 00:04:01,360 --> 00:04:05,240 Speaker 3: to an administration, this is actually a good sign capital 84 00:04:05,280 --> 00:04:08,680 Speaker 3: flight is not going out. Sorry, Apple flight does not occurring. 85 00:04:10,080 --> 00:04:12,400 Speaker 1: But we need to see those commitments, don't we. I mean, 86 00:04:12,400 --> 00:04:15,320 Speaker 1: we need to see investors coming through with some big 87 00:04:15,360 --> 00:04:19,039 Speaker 1: ticket investments. And I understand. I hear it's going to 88 00:04:19,040 --> 00:04:21,160 Speaker 1: take time. Sense is your sense that at least that 89 00:04:21,160 --> 00:04:26,160 Speaker 1: that is coming, and which sectors are investors eyeing up? 90 00:04:26,160 --> 00:04:28,280 Speaker 1: What is what is looking like the kind of the 91 00:04:28,320 --> 00:04:29,680 Speaker 1: biggest opportunity at this point. 92 00:04:31,120 --> 00:04:34,159 Speaker 3: The large scale investors that I've met, so that the 93 00:04:34,200 --> 00:04:36,320 Speaker 3: well fund, some of the larger asset managers, believe it 94 00:04:36,360 --> 00:04:39,280 Speaker 3: or not, Chinese pensions have an intense interest in the UK. 95 00:04:39,839 --> 00:04:42,000 Speaker 3: Over decades, the UK has been proven to be one 96 00:04:42,000 --> 00:04:44,359 Speaker 3: of the most stable regimes, perhaps even more stable in 97 00:04:44,400 --> 00:04:46,960 Speaker 3: many ways, and direct investments say in the US State 98 00:04:47,120 --> 00:04:49,680 Speaker 3: or something like that, it's actually a very very good 99 00:04:49,720 --> 00:04:54,359 Speaker 3: stable regime, particularly during conflict, particularly during geopolitical uncertainty of 100 00:04:54,360 --> 00:04:57,200 Speaker 3: any form. So they're always interested in the UK and 101 00:04:57,200 --> 00:04:59,680 Speaker 3: this has increased over the last two years. What I'm 102 00:04:59,720 --> 00:05:04,520 Speaker 3: seeing is people constantly grilling me, you know, where's the brochure? 103 00:05:05,640 --> 00:05:07,760 Speaker 3: What can I pick up? And of course they have 104 00:05:07,800 --> 00:05:09,440 Speaker 3: to wait just that little bit of time until we 105 00:05:09,440 --> 00:05:12,280 Speaker 3: see what these projects are. Remember we've canceled quite a 106 00:05:12,320 --> 00:05:14,040 Speaker 3: few large scale investments. 107 00:05:14,279 --> 00:05:17,560 Speaker 2: So what is the brochure for the big infrastructure projects 108 00:05:17,560 --> 00:05:19,880 Speaker 2: that Britain is going to do? And that's what foreign 109 00:05:19,920 --> 00:05:22,480 Speaker 2: investors are telling you they want to see definitely, but 110 00:05:22,680 --> 00:05:25,240 Speaker 2: why is it not coming then from the new setup 111 00:05:25,480 --> 00:05:28,080 Speaker 2: we've set up. This new government has set up two 112 00:05:28,160 --> 00:05:32,360 Speaker 2: new bodies, so the National Wealth Funds and gb Energy. 113 00:05:32,839 --> 00:05:35,800 Speaker 2: I mean, why are they not painting but those brochures, 114 00:05:36,040 --> 00:05:36,720 Speaker 2: glossy ones. 115 00:05:36,760 --> 00:05:40,880 Speaker 3: Please, I'm sure they're preparing them for the fourteenth. It's 116 00:05:40,920 --> 00:05:43,200 Speaker 3: two and a half months. I personally, you've got to 117 00:05:43,200 --> 00:05:45,400 Speaker 3: give them a bit of slack. You've hit the ground 118 00:05:45,480 --> 00:05:48,000 Speaker 3: on an unexpected election and suddenly the next day you're 119 00:05:48,040 --> 00:05:50,960 Speaker 3: in office. The next day international investors are saying, we 120 00:05:51,000 --> 00:05:53,760 Speaker 3: saw that some of these major projects are canceled. What's 121 00:05:53,800 --> 00:05:55,320 Speaker 3: in your chart? And they're saying we're going to present 122 00:05:55,320 --> 00:05:57,720 Speaker 3: them on the fourteenth. I actually think that's pretty sad. 123 00:05:58,000 --> 00:06:01,120 Speaker 1: Being very generous to the current Laboor gun they knew 124 00:06:01,120 --> 00:06:02,600 Speaker 1: they were going to be in power about twelve months 125 00:06:02,600 --> 00:06:05,720 Speaker 1: before before the election. The doom and gloom, the rhetoric 126 00:06:05,880 --> 00:06:08,800 Speaker 1: from Starmer, the rhetoric from Rachel Reeves. I mean, we've 127 00:06:08,800 --> 00:06:11,200 Speaker 1: gone from the kind of heady hyperbole at Boris Johnson 128 00:06:11,200 --> 00:06:13,039 Speaker 1: to the dooman gloom of this Labor Party. Would be 129 00:06:13,040 --> 00:06:16,680 Speaker 1: the critique is that wig On some of these decisions 130 00:06:16,720 --> 00:06:17,680 Speaker 1: that you're speaking. 131 00:06:17,400 --> 00:06:21,039 Speaker 3: About personally, I see that as political theater. Recall that 132 00:06:21,080 --> 00:06:23,200 Speaker 3: the previous government came in and said we were left 133 00:06:23,200 --> 00:06:25,240 Speaker 3: a note saying the cupboard spear if you remember that, 134 00:06:25,320 --> 00:06:29,000 Speaker 3: So that's exactly what happened on the previous administration. In business, 135 00:06:29,000 --> 00:06:31,520 Speaker 3: we all know the three envelope joke. You get three envelopes. 136 00:06:31,560 --> 00:06:34,000 Speaker 3: The first one is blamed your predecessor, the second one 137 00:06:34,040 --> 00:06:35,920 Speaker 3: is blame your predecessor, and the third is right out 138 00:06:35,920 --> 00:06:39,360 Speaker 3: three envelopes. So you've got to exercise that envelope strategy 139 00:06:39,440 --> 00:06:41,400 Speaker 3: right up front. You couldn't have done this in February 140 00:06:41,400 --> 00:06:43,760 Speaker 3: because they said, well you've been in administration for six months, 141 00:06:43,760 --> 00:06:45,679 Speaker 3: so you know, stop blaming the government. 142 00:06:45,960 --> 00:06:46,320 Speaker 1: Michael. 143 00:06:46,640 --> 00:06:48,880 Speaker 2: You're a global system. You mentioned one hundred days aboard 144 00:06:49,480 --> 00:06:53,560 Speaker 2: just this year. I'm told you have four nationalities educated 145 00:06:53,600 --> 00:06:58,160 Speaker 2: across the US, Britain, Ireland and you've eloquently put the 146 00:06:58,200 --> 00:07:00,440 Speaker 2: case and the Lord met always has to put the 147 00:07:00,480 --> 00:07:04,880 Speaker 2: case for Britain abroad, which is fantastic. Do you think 148 00:07:04,880 --> 00:07:08,680 Speaker 2: that Britain needs to reckon with its attitudes towards migration. 149 00:07:08,800 --> 00:07:11,440 Speaker 2: We are post Brexit and this is still huge issue 150 00:07:11,440 --> 00:07:13,440 Speaker 2: comes up again and again when I speak to the 151 00:07:13,480 --> 00:07:17,360 Speaker 2: CBI or anybody else. It's about skills. It's about attracting 152 00:07:17,400 --> 00:07:20,240 Speaker 2: that international person to the UK. 153 00:07:21,160 --> 00:07:24,520 Speaker 3: Agreed over fourteenth centuries, the Corporation has always focused on 154 00:07:24,600 --> 00:07:27,320 Speaker 3: four things. Defense and security, nobody brings money to a 155 00:07:27,320 --> 00:07:30,800 Speaker 3: war zone, Free and open trade very much, the rule 156 00:07:30,800 --> 00:07:33,280 Speaker 3: of law in its wider sense, and access to skills 157 00:07:34,120 --> 00:07:36,960 Speaker 3: and talent. And we cannot say we have the best 158 00:07:36,960 --> 00:07:39,280 Speaker 3: British lawyer or the breast British scientists. We have to 159 00:07:39,280 --> 00:07:41,600 Speaker 3: have the best scientists for the projects that we're trying 160 00:07:41,600 --> 00:07:45,760 Speaker 3: to do, which are global solutions. That doesn't mean unlimited migration, 161 00:07:46,280 --> 00:07:48,200 Speaker 3: and I like to I'd like us to focus a 162 00:07:48,200 --> 00:07:50,920 Speaker 3: lot more on access to skills and talent. In terms 163 00:07:50,960 --> 00:07:54,880 Speaker 3: of visiting business visas, working visas is. 164 00:07:54,920 --> 00:07:58,040 Speaker 2: The one thing that Reeves and Starmer's government could do 165 00:07:58,320 --> 00:07:59,920 Speaker 2: to make those visas better. 166 00:08:01,400 --> 00:08:04,280 Speaker 3: Probably for me, the biggest thing is more stability on 167 00:08:04,320 --> 00:08:08,080 Speaker 3: the education front. Again, we're looking to the long term. 168 00:08:08,680 --> 00:08:11,120 Speaker 3: That's what we do in the corporation, and when you 169 00:08:11,160 --> 00:08:13,600 Speaker 3: look to the long term, it's a couple of years 170 00:08:13,600 --> 00:08:16,840 Speaker 3: that students get afterwards where they're building up their proto networks. 171 00:08:17,520 --> 00:08:19,720 Speaker 3: You're building up your network as a lawyer and suddenly 172 00:08:19,760 --> 00:08:22,120 Speaker 3: you're back in Boosat and somebody says, do you know 173 00:08:22,160 --> 00:08:24,920 Speaker 3: an accountant in London? It's funny. I used to room 174 00:08:24,960 --> 00:08:26,840 Speaker 3: with them, or I used to take drinks with them. 175 00:08:27,160 --> 00:08:29,800 Speaker 3: Those proto networks are the biggest piece of soft power 176 00:08:29,840 --> 00:08:32,480 Speaker 3: for Britain, and as I travel around the world, we 177 00:08:32,520 --> 00:08:35,520 Speaker 3: are greeted. I went to Toronto just two weeks ago 178 00:08:36,040 --> 00:08:38,280 Speaker 3: and we had eighty five people, but the majority of 179 00:08:38,320 --> 00:08:42,680 Speaker 3: whom had studied in Britain, cheering the Lord mayor cheering Britain, 180 00:08:42,880 --> 00:08:45,079 Speaker 3: cheering London, cheering the city of London. And that's the 181 00:08:45,120 --> 00:08:47,760 Speaker 3: sort of attitude we need. So it's that long term 182 00:08:47,840 --> 00:08:50,480 Speaker 3: view of making sure those skills and talents come in. 183 00:08:50,679 --> 00:08:51,880 Speaker 3: That doesn't mean migration.