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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is the Bloomberg Daybreakerate podcast, available every morning on Apple,

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Speaker 2: Spotify or wherever you listen. It's Friday, the eleventh of

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Speaker 2: October in London. I'm Stephen Carroll.

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Speaker 3: And I'm Caroline Hepka. Coming up today. I don't think

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Speaker 3: there's been a major economic win yet. As Labor approaches

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Speaker 3: one hundred days in power, we speak to business leaders

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Speaker 3: who say they're still waiting for Kirstarmer's plan to reignite growth.

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Speaker 2: And another news Musk goes hands free. Tesla unveils its

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Speaker 2: long awaited cyber cab prototype with no steering wheel or pedals.

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Speaker 3: Plus, the French government announces plans to tax top firms

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Speaker 3: and reduce public spending in a bid to trim the

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Speaker 3: country's colossal debt.

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Speaker 4: Let's start with a roundup of our top stories.

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Speaker 3: UK investors and business leaders have told Bloomberg Radio that

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Speaker 3: they're frustrated at the lack of action from the new

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Speaker 3: Labor government as it approaches one hundred days in office.

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Speaker 3: Voices from across private equity, venture capital and finance say

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Speaker 3: that while they appreciate Kirs Starmer and Rachel Reeves's rhetoric

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Speaker 3: on economic growth. They're still waiting for them to deliver.

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Speaker 3: Lloyd Lee is managing partner and co founder of you Capital,

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Speaker 3: which has invested two and a half billion pounds into

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Speaker 3: the UK since twenty ten. He says that talk of

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Speaker 3: tax hikes and the upcoming budget is spooking investors.

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Speaker 5: I mean, I think you have to call a spae displayed.

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Speaker 5: If you raise the specter of significant increases in taxes

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Speaker 5: anywhere in the world, people get nervous, and I mean

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Speaker 5: people at all levels get nervous. If you're going to

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Speaker 5: raise the specter of more taxes, you have to show

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Speaker 5: what you're doing with the money and why. And I accept,

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Speaker 5: and I think we all accept that there have been

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Speaker 5: some black holes that need to be filled in over

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Speaker 5: the last several years. What people don't want to hear

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Speaker 5: is you kept collecting taxes, you didn't invest it back

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Speaker 5: into the country and it didn't grow, so you just

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Speaker 5: keep more black holes coming down the road.

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Speaker 3: Lloyd Lee's warning comes ahead of the budget on the

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Speaker 3: thirtieth of October, during which Chancellor Rachel Reeves will announce

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Speaker 3: how she plans to fill a twenty two billion pound

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Speaker 3: hole in the public finances. The investors who spoke to

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Speaker 3: Bloomberg Radio expressed concern about tax changes, especially for private equity.

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Speaker 3: Their comments come just days before the Prime Minister and

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Speaker 3: the Chancellor convene their first international investment summits.

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Speaker 2: Kirs Starmer has appointed former Dark Tray CEO Poppy Guftasten

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Speaker 2: as the UK's new investment Minister. The Prime Minister filled

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Speaker 2: the post just days ahead of a major government led

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Speaker 2: summit in London. Bloomberg's James Wilcock has more.

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Speaker 6: Rachel Reeves has made it clear her plans depend on

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Speaker 6: bringing private investment back to Britain. Monday's summit is supposed

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Speaker 6: to be a show of strength for Labour's business credentials.

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Speaker 6: Corporate royalty like Alphabet's Ruth Porat, former Google CEO L Schmidt,

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Speaker 6: and Barclay's boss CSVN Kate Krishnan are all in attendance,

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Speaker 6: but the surprise summer election has meant the event has

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Speaker 6: been hurried together, with investors puzzled by the decision to

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Speaker 6: have the summits before the budget, and some of global

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Speaker 6: finance's biggest names can't make it, notably JP Morgan's, Jamie

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Speaker 6: Diamond and Blackstone Steve Schwartzman, and we're still waiting to

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Speaker 6: hear what the actual plans are to entice investors to

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Speaker 6: plow new money into Britain's aging infrastructure. In London, James

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Speaker 6: Wilcock Bloomberg Radio.

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Speaker 3: Now Elon Musk has unveiled the long awaited prototype of

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Speaker 3: Tesla's cyber cab. According to the billionaire CEO, production may

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Speaker 3: start in twenty twenty six, with the vehicle price set

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Speaker 3: under thirty thousand dollars. At the unveiling event in California,

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Speaker 3: Musk hitched a ride in the car before speaking about

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Speaker 3: the future of autonomous transport.

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Speaker 7: You can think of it like individualized mass transit. The

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Speaker 7: average cost of a bus per mile for a city

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Speaker 7: not to take a price because they are a subsidized

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Speaker 7: but the average price is about a dollar a mile,

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Speaker 7: whereas the cost of cybercab, we think probably over time

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Speaker 7: from the operating cost is probably going to be around

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Speaker 7: twenty seves a.

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Speaker 3: Mile, Tesla's Elon Musk speaking there. Also showcased at the

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Speaker 3: event was a robo van concept, which Musk said could

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Speaker 3: transport twenty people at once. The unveiling itself got underway

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Speaker 3: an how late, and according to Bloomberg reports, the Robotaxi

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Speaker 3: event has been delayed by several months. Musk has a

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Speaker 3: track record of exceeding timelines he's set for a range

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Speaker 3: of products.

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Speaker 2: The government in France is aiming to find more than

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Speaker 2: sixty billion euros for its public finances with its new budget.

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Speaker 2: Finance Minister Antoine Auman says officials are relying on spending

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Speaker 2: CODs plus higher taxes on businesses, the wealthy and energy

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Speaker 2: to tackle the country's colossal debt pile. Speaking before the

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Speaker 2: official announcement, Charlotte de Montpellier, ing senior economist for France

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Speaker 2: and Switzerland un til Bloomberg, the government faces a difficult task.

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Speaker 1: First of all, there are a lot of measure that

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Speaker 1: are being announced that are supposed to be temporary, but

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Speaker 1: we know that probably won't be enough put the deficit

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Speaker 1: back into the right trajectories. We also know that this

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Speaker 1: kind of measure they tend to disappoint. Also, it means

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Speaker 1: that even if they conto on some revenue from those

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Speaker 1: increasing taxes, it could be that in one year time

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Speaker 1: they realized that at.

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Speaker 4: The end it was not enough.

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Speaker 2: That was Charlotte de Montpellier from IG under the plans,

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Speaker 2: temporary levees will be placed on four hundred and forty

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Speaker 2: companies with over a billion euros and revenue, a move

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Speaker 2: the government forecast will generate twelve billion euros by twenty

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Speaker 2: twenty six. Around sixty five thousand households are due to

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Speaker 2: face higher taxes aimed at bringing in two billion euros

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Speaker 2: next year. Lawmakers are seeking to narrow the deficit to

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Speaker 2: five percent of economic output and twenty twenty five from

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Speaker 2: a forecast six point one percent this year.

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Speaker 3: Chinese shes have fallen as caution grows ahead of a

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Speaker 3: key weekend briefing that may shed more light on the

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Speaker 3: scale of China's fiscal support. Investors and analysts expect Beijing

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Speaker 3: to deploy as much as two trillion one that's the

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Speaker 3: equivalent of two hundred and eighty three billion dollars in

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Speaker 3: fresh stimulus. Saturday's press conference comes as investors look for

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Speaker 3: greater fiscal spending to arrest a slowdown that threatens to

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Speaker 3: put China's twenty twenty four target of about five percent

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Speaker 3: of economic growth out of reach.

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Speaker 2: In the United States, three Federal Reserve policymakers have suggested

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Speaker 2: they're unphased by Thursday's higher than forecast September inflation reports.

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Speaker 4: However, a fourth hinted.

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Speaker 2: He may favor a pause at the fed's next meeting

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Speaker 2: based on the latest data. With more Hairspoenberg's Charlie Pallace.

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Speaker 8: New York FED President John Williams says month to month quote,

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Speaker 8: there's wiggles and bumps in the data, but we've seen

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Speaker 8: this pretty steady process of inflation moving downward. Bank of

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Speaker 8: Chicago President Austin Goolsby, in a CNBC interview, said, quote,

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Speaker 8: the overall trend for inflation over twelve to eighteen months

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Speaker 8: is clearly moving down. His counterpart from the Richmond Fed,

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Speaker 8: Thomas Parkins, says inflation is definitely heading in the right direction.

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Speaker 8: The outlier Raphael Bostik, president of the Atlanta Fed, in

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Speaker 8: an interview with The Wall Street Journal, he revealed that

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Speaker 8: in projections released in September, he'd called for one additional

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Speaker 8: quarter point cut this year in New York. Charlie Palette

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Speaker 8: Bloomberg Radio.

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Speaker 3: Hurricane Milton has left millions without power and at least

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Speaker 3: ten people dead after hitting Florida. Nearly three million homes

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Speaker 3: and businesses remain without electricity in the state. According to

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Speaker 3: poweroutis dot US. The Florida Governor Ron Desanta says that

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Speaker 3: people in the state are continuing to persevere.

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Speaker 9: Phase two hurricanes in a couple of weeks. Not easy

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Speaker 9: to go through, but I've seen a lot of resilience

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Speaker 9: throughout this state. I think people just you know, when

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Speaker 9: you're a Floridian, you kind of just like, no like

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Speaker 9: this or these are things that can happen, and you

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Speaker 9: roll with it.

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Speaker 3: Governor DeSantis was touring damage from Hurricane Milton in Sarasota yesterday.

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Speaker 3: The full scope of Milton's destruction, though, won't be known

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Speaker 3: for days or perhaps even some weeks.

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Speaker 2: Well, let's focus now on our top story this morning.

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Speaker 2: It's almost one hundred days since Cairstarmer's labor government was

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Speaker 2: elected on a pledge to change Britain and reboot economic growth.

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Speaker 2: But the investors and business people Labor courted ahead of

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Speaker 2: that landslide win are increasingly concerned about progress and the

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Speaker 2: big decisions in the budget. Our karline Hepger, has been

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Speaker 2: interviewing key investors across the city over the past three

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Speaker 2: weeks to understand their verdict on the new government and

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Speaker 2: what lies ahead. Caroline barely three months since Labor swept

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Speaker 2: back to power after fourteen years. What is the economic

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Speaker 2: verdict from the investors you've been speaking to.

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Speaker 3: Yeah, I've had a very interesting month talking to a

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Speaker 3: smattering of vital investors and asking you know, whether the

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Speaker 3: government's delivered on stability, what the big economic wins have been,

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Speaker 3: what the fears around the budget really are? The verdict

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Speaker 3: I think is frustrated, a bit unimpressed. And Glover, for example,

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Speaker 3: who heard writer the start of the program. She's the

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Speaker 3: co founder of Amadea's capital partner. She's been an investor

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Speaker 3: for thirty years. She says, on delivering stability, O, it's

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Speaker 3: too soon to tell because it implies a longer time frame,

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Speaker 3: doesn't it stability? She gives them the benefit of the doubt,

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Speaker 3: but she's clear that they have not pulled off a

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Speaker 3: major economic win yet. Michael Moore of the bvcA so

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Speaker 3: representing private equity and big investors, he says, yes, the

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Speaker 3: government's ticked a lot of important early boxes. He even

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Speaker 3: described it as small c conservative in its approach. You know,

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Speaker 3: this obviously being a left leaning UK government, but he's

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Speaker 3: concerned about you know that the government has said a

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Speaker 3: lot of the right things, but actually people need a

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Speaker 3: bit more information. Haven't listened to what he says.

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Speaker 10: Many of these ideas are still at kind of higher

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Speaker 10: level conceptual stage and we do need to see quite

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Speaker 10: a lot more detail. But I think that investors, international

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Speaker 10: investors certainly want to see them develop.

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Speaker 3: So that was Michael Moore who was speaking there. He

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Speaker 3: was talking, you know about the announcement around a well

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Speaker 3: fund for the UKGB Energy, those sorts of announcements which

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Speaker 3: he says are very top level. And then Mike Eakins,

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Speaker 3: who is the chief investment officer at Phoenix Group sort

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Speaker 3: of one of the big pension providers in the UK

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Speaker 3: big investors, UK's largest long term savings and retirement provider.

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Speaker 3: He was very much saying we stand ready to invest

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Speaker 3: alongside government and other businesses, but we need a pipeline

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Speaker 3: of investable assets. So basically wanting more detail.

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Speaker 2: So this is our ahead of the investment. Some of

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Speaker 2: that's taking place on Monday. What is the government hoping

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Speaker 2: to achieve from this event?

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Speaker 3: Well, this is the difficulty. I mean, look, to their credit,

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Speaker 3: the election happens a little bit sooner than we had thought,

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Speaker 3: and so they have scrambled to deliver an event that

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Speaker 3: in the past under the previous Conservative government has been successful.

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Speaker 3: So they do have some big names, big money managers

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Speaker 3: and multinational companies attending the king is hosting reception. And

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Speaker 3: you know we've heard for example, Alphabet's Ruth Parts going,

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Speaker 3: the AI firm Wave, You've got the Brookfield Asset Management

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Speaker 3: boss going. Elon Musk not invited, but still the investors

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Speaker 3: that I've been speaking to are frustrated. Have I listened

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Speaker 3: to Mike ekin Cio at the Phoenix Group with his expectations.

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Speaker 5: Our ask is that the government should be really bold

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Speaker 5: in outlining what it wants to achieve from that investment Summitch, So.

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Speaker 3: Read between the lines bold that means, you know, we

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Speaker 3: need more direction. Effectively, the government has now named their

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Speaker 3: Investment Minister, job that they struggle to fill. So that's

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Speaker 3: the former Dark Trace CEO of Poppy Gustafson. But their

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Speaker 3: first choice, you know, wouldn't take up the role. That's

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Speaker 3: Benjamin Wegg Prossuh's very well known, you know for his

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Speaker 3: own business reasons and you know, talking to others sort

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Speaker 3: of broader business voices like the British Chambers of Commerce,

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Speaker 3: Chevron Havelin saying that the Investment Summit is a good thing,

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Speaker 3: but they've got, you know, they've got to tell the

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Speaker 3: world that the UK's open for business. It's miss times though,

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Speaker 3: that's the real worry.

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Speaker 2: Well, this is course, is all happening as we're counting

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Speaker 2: down to the budget on the thirtieth of October.

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Speaker 3: Yeah, and the real worry is what are the tax

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Speaker 3: announcements going to be From the chances of Rachel Reeves,

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Speaker 3: Lloyd Lee who's the managing partner co founder of you Capital,

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Speaker 3: which is a huge developer in London, involved in Olympia,

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Speaker 3: which is in West London, a big conference center. They've

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Speaker 3: planned lots of money into that and they've got other

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Speaker 3: major investments underway too. They say, actually, yes, we are

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Speaker 3: investing more in London because of the new government. As

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Speaker 3: a result of the new government. One of the few

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Speaker 3: who said out and out yes we are. But he's

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Speaker 3: concerned broadly about you know, what happens if there are

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Speaker 3: more black holes in the finances that perhaps business has

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Speaker 3: been spooked. Have a listen also to the Budhish Chambers

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Speaker 3: of Commerce Director General Chavorn Havelan, who says that businesses

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Speaker 3: are worried. When the Chanceller talks about the burden falling

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Speaker 3: on those with the broad his shoulders that that means

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Speaker 3: business have listened to her.

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Speaker 11: The Chancellor needs to find the money she needs in

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Speaker 11: the right places that don't impact economic growth, but she

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Speaker 11: also needs to tell the story, the wider story. The

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Speaker 11: UK is a really great place to start, grow and

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Speaker 11: invest in a business.

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Speaker 3: That's the strange thing because actually the UK economic performance

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Speaker 3: hasn't been too bad recently, and yet there's a big

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Speaker 3: worry about taxation on the macro front. But also specifically

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Speaker 3: for private equity investors. You know, are there going to

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Speaker 3: be changes to the rules around carried interest That is

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Speaker 3: a huge question. Bill Curtain, who's the head of M

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Speaker 3: and A at Hogan Levels, talked about if there's increasing

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Speaker 3: costs through taxation, interest rates and the like, it doesn't

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Speaker 3: pay to pretty picture for private equity in the UK.

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Speaker 3: He says, how the budget is resolved is going to

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Speaker 3: be very important for confidence in the UK. So basically,

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Speaker 3: three months into this new UK government, a lot of

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Speaker 3: people in this city don't feel we can judge on

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Speaker 3: the economic impact yet, but they still want clarity detailed

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Speaker 3: the industrial strategy. They are starting to get more nervous

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Speaker 3: about what Starma and Reeves and the team can actually deliver.

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Speaker 2: Yeah, of course, so panting to a very difficult road

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Speaker 2: ahead too for the government. Krolyn, thanks for bringing us

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Speaker 2: details of your reporting. I've got to turn to another

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Speaker 2: story now. Elon Mosk has unveiled the longer waged prototype

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Speaker 2: of a Tesla driverless taxi called a cyber cab. He

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Speaker 2: says production could start in twenty twenty six and the

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Speaker 2: vehicle may cost less than thirty thousand dollars. Our transport

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Speaker 2: border Danny Lee joins us now for more. Hey Danny,

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Speaker 2: what do we need to know then about the cyber cabod.

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Speaker 12: Morning, Well, it definitely looks more striking than the cyber truck.

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Speaker 12: That's for stuff. Artisan el Musk came in over the

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Speaker 12: overnight with this driving in with what is a prototype

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Speaker 12: that has no steering rule, no pedals, very much, this

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Speaker 12: autonomous vehicle, this cybercab that is going to determine basically

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Speaker 12: Tesla's future and the future direction and its fortunes here

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Speaker 12: and so eil Musk outlined that this is going to

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Speaker 12: be a product that will come out be ready by

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Speaker 12: twenty twenty six and be available for less than thirty

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Speaker 12: thousand US dollars and sold directly to consumers. But el

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Speaker 12: Musk has made many predictions before and he's been wrong.

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Speaker 3: Yeah, absolutely, So do you think the timeline is realistic

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Speaker 3: twenty twenty six?

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Speaker 12: It's going to be aggressive purely because there's a lot

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Speaker 12: hinges on the technology that powers this cybercap particularly around

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Speaker 12: Tesla's AI capabilities. And this AI capability is not just

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Speaker 12: around the technology, but this is also fundamental to Tesla's

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Speaker 12: huge valuations here and so getting that all right, and

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Speaker 12: particularly that we've talked about many times before what was

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Speaker 12: called full self driving, that test has gone full throated

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Speaker 12: into getting that to work and work in a way

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Speaker 12: in which this cybercab, which has no steering wheel and pedals,

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Speaker 12: is going to be very challenging and something you know, investors,

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Speaker 12: particularly regulators, will be watching very closely on.

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Speaker 4: Yeah, because Doane.

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Speaker 2: I feel like we've been hearing about driverless cars and

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Speaker 2: this technology for quite a long time now, and yet

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Speaker 2: there's been a lot of regulatory reticence around letting these

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Speaker 2: cars on the roads to kind of function properly.

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Speaker 4: I mean, how much would have to change on that front.

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Speaker 2: For these cyber taxis to actually be allowed to operate.

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Speaker 12: I think it's going to take a monumental shift here,

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Speaker 12: and particularly, you know, we haven't heard much about the

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Speaker 12: technology behind this cybercab overall yet, and particularly you know,

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Speaker 12: what are the full back measures and how this will

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Speaker 12: come into being in real world conditions. Frankly, and you

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Speaker 12: know we've been hearing from Bloomberg Intelligence, who is doubtful

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Speaker 12: at the moment that regulatory approval, particularly in the US,

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Speaker 12: will pass because of the lack of these fundamental features

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Speaker 12: of what is normally what you see and have in

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Speaker 12: a car. So I think it's gonna be uphill battle

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Speaker 12: when you see how much someone like Eli and Musk

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Speaker 12: has tried to court the likes of China in order

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Speaker 12: to test things such as full self driving, but going

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Speaker 12: with a car that has different kind of equipment full

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Speaker 12: stop is a very different matter.

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Speaker 3: Yeah. Absolutely. What does it mean then for Tesla as

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Speaker 3: a company overall? Obviously it's grown rapidly but has had

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Speaker 3: a lot of challenges in the last year.

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Speaker 12: Yeah. I think for Elion Musks, he's helped kind of

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Speaker 12: give a bit more direction into with the kind of

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Speaker 12: product lineup. I think there's still fundamental questions about what

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Speaker 12: this cyber cab is actually meant to be in terms

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Speaker 12: of how this is incorporated into the kind of business

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Speaker 12: model and what kind of product lines that wants to

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Speaker 12: be selling into, particularly when you still fundamentally are making

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Speaker 12: vehicles and having to make them profitably but then also

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Speaker 12: as a service ultimately, and so there's that, and there's

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Speaker 12: also still the question of can someone like Teslas still

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Speaker 12: build a more conventional affordable vehicle. I think we've seen

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Speaker 12: a little bit of that based on what the cybercab

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Speaker 12: is potentially offering in are having a vehicle under thirty

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Speaker 12: thousand dollars, but still that challenge and the competition's threat,

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Speaker 12: and particularly the competition threat from Chinese ev makers who

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Speaker 12: are really breathing down Tesla's neck here outside of the US.

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Speaker 12: So I still think there are questions around how Tesla

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Speaker 12: can be fit for the future. And you know, Elon

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Speaker 12: Musk has done a little bit to at least give

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Speaker 12: a glimpse, but there are still more questions that need

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Speaker 12: to be answered around this current product launch.

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