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Speaker 1: Good morning. It's Wednesday, the thirteenth of December here in London.

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Speaker 1: This is the BlueBag Daybreak at podcast. I'm Caroline Hepkif.

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Speaker 2: And I'm Stephen Carroll.

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Speaker 3: Coming up today, Ritchie Sunac sees off a Tory Party

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Speaker 3: revolt on Rwanda for now.

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Speaker 1: Argentina announces a massive devaluation of the peso in a

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Speaker 1: move dubbed economic shock therapy.

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Speaker 3: And we have a special report on UK builders who

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Speaker 3: are going rogue on planning rules and increasingly getting away

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Speaker 3: with us.

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Speaker 1: Let's start with a round up of our top stories.

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Speaker 3: The Prime Minister Richie Sunac has survived a vote on

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Speaker 3: his Rwanda deportation bill and a test of his authority

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Speaker 3: for now. The policy to send asylum seekers to Africa

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Speaker 3: passed by a majority of forty three, with thirty seven

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Speaker 3: Tories abstaining. Tory Mpean Duncan Smith backs the bill but

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Speaker 3: now once changes.

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Speaker 4: There are debates around here about certain clauses where there

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Speaker 4: may be some open possibilities for people to make vexatious

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Speaker 4: continuous vexation claims, so you know lots. We're looking at

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Speaker 4: whether it's feasible to kind of tighten that bid.

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Speaker 3: Up Toncan Smith is part of a faction who could

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Speaker 3: veto the legislation next year, but any changes would aggravate

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Speaker 3: conservative moderates, which would also throw the Prime Minister's flagship

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Speaker 3: policy into jeopardy.

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Speaker 1: Walgreens is looking at a possible exit from Boots nearly

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Speaker 1: eighteen months after it's scrapped a sale of the UK

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Speaker 1: pharmacy chain. Bloomberg understands that the US firm is considering

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Speaker 1: a London IPO as one option, in a move that

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Speaker 1: could value Boots at about seven billion pounds. A stock

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Speaker 1: offering would be a big help to the London market.

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Speaker 1: According to data can pile by Bloomberg, UK IPO fundraising

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Speaker 1: has fallen by more than fifty percent this year to

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Speaker 1: around a billion US dollars.

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Speaker 3: Argentina has devalued the peso by fifty four percent and

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Speaker 3: announced massive public spending cuts. The moves are part of

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Speaker 3: new President have MLA's shark therapy for the country's economy,

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Speaker 3: which is battling an inflation rate north of one hundred

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Speaker 3: and forty percent. Economy Minister Luis Kaputo made the announcement

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Speaker 3: in a televised address.

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Speaker 4: If FISHU Exchangery is going to go to eight hundred

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Speaker 4: pistoles so that the productive sectors have the right incentives

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Speaker 4: to increase their production.

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Speaker 3: The first dramatic steps by Economy Minister Lewis Caputo Wood

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Speaker 3: follows a somber inauguration speech on Sunday, when President Malay

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Speaker 3: warns that Argentinians will have to endure months of pain

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Speaker 3: while he works to pull the country from the economic

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Speaker 3: crisis inherited from his predecessor.

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Speaker 1: Now, divisions between the United States and Israel about the

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Speaker 1: war are spilling into public view. Bloomberg's Ed Baxter has

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Speaker 1: the story.

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Speaker 5: President Biden very openly saying that Prime Minister Netna who

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Speaker 5: has to change or risk losing international support. He is

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Speaker 5: referring to two things. First that after the war, Israel

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Speaker 5: must be thinking about accepting the Palestinian authority, and second,

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Speaker 5: in the way in which the war is currently prosecuted.

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Speaker 6: Attempting to do it being possible to prevent innocent Palestinian

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Speaker 6: civilians from being being hurt, murdered, lost consider.

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Speaker 5: Then Yahoo, in response says he will not accept Palestinian

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Speaker 5: authority rule. Meanwhile, the UN General Assembly has voted a

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Speaker 5: call for a cease fire. Ed Baxter Bloomberg Radio the.

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Speaker 3: Cop twenty eight summers could close with a call for

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Speaker 3: a global transition away from fossil fuels, after Saudi Arabia

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Speaker 3: signaled it will support a new agreement. The kingdom had

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Speaker 3: pushed back hard on the idea of phasing down or

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Speaker 3: phasing out oil and gas. However, it's understood that Saudi

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Speaker 3: and other large oil producers are willing to accept the

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Speaker 3: language because it allows them a large degree of discretion

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Speaker 3: about how to transition. If agreed, it will be the

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Speaker 3: first time fossil fuels are included in an agreement in

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Speaker 3: nearly three decades of climate talks.

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Speaker 1: Elon Musk's ex the social network formerly known as Twitter

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Speaker 1: is expected to miss its own ad revenue goals. According

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Speaker 1: to people familiar with the matter. The platform is on

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Speaker 1: track to earn roughly two point five billion dollars from

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Speaker 1: advertising in twenty twenty three, a big drop from sales

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Speaker 1: of more than a billion dollars per quarter in twenty

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Speaker 1: twenty two. Bloomberg's social media reporter Kurt Wagner says that

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Speaker 1: Musk's conduct is a key issue for some advertisers.

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Speaker 7: I think the issue here continues to be that you

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Speaker 7: Musk seems to not really be aware that his own

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Speaker 7: behavior is having this dramatic.

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Speaker 8: Impact, or if he is, he just simply doesn't care.

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Speaker 7: But I think that's really the issue, more than anything,

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Speaker 7: is that he's not really giving advertisers.

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Speaker 8: A good enough reason to come back.

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Speaker 7: They're trying to move away from this kind of legacy

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Speaker 7: brand business that Twitter used to have, right, And that's

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Speaker 7: partly because I think it's inconsistent, and it's moving because

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Speaker 7: of Elon's behavior.

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Speaker 8: Right. So the more they move away from the.

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Speaker 7: Disneys of the world or the Coca Colas from the world,

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Speaker 7: then they get to either small and medium sized businesses,

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Speaker 7: subscription revenue data licensing. That stuff's just not going to

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Speaker 7: be as impacted by the CEO's behavior.

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Speaker 1: Ker Wagner added that X is looking for earning opportunities

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Speaker 1: less likely to be influenced by the actions of its owner.

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Speaker 1: The news comes, though, as another Musk lad venture, SpaceX

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Speaker 1: announces that it will sell insider shares for ninety seven

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Speaker 1: dollars each in a tender offer. That's a price increase

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Speaker 1: which boosts the value of the space and satellite company

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Speaker 1: closer to one hundred and eighty billion. Dollars, indicating strong

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Speaker 1: investor demands.

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Speaker 3: Netflix is now telling the world how many people watch

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Speaker 3: its shows. Bloomberg's Charlie Pallace has the story.

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Speaker 2: The company who's released global midhear viewer data for every

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Speaker 2: title on its service, the first of what Netflix says

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Speaker 2: will be regular reports. The political thriller The Night Agent

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Speaker 2: was the most watched title globally in the first half

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Speaker 2: of twenty twenty three, generating eight hundred and twelve point

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Speaker 2: one million hours of viewing. That was followed by season

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Speaker 2: five two of the family drama Ginny and Georgia and

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Speaker 2: the debut of the Glory of South Korean series. Ginny

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Speaker 2: and Georgia delivered the biggest audience if you consider all

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Speaker 2: seasons of a show in New York. Charlie Palette Bloomberg Radio.

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Speaker 3: In a moment, there may be intense focus on the

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Speaker 3: UK's planning system, but few rogue developers are being caught.

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Speaker 3: We'll discuss with our residential real estate reporter Damian Shepherd

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Speaker 3: in just a moment. But first, has a spreadsheet ever

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Speaker 3: been so exciting to read? I've been pouring over that

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Speaker 3: Netflix dat at. Charlie Palette was just telling us about

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Speaker 3: as well.

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Speaker 5: Yeah.

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Speaker 3: Well, I was curious because not only obviously to see

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Speaker 3: what the big titles are, but also to look at

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Speaker 3: the ones that are i suppose very heavily promoted by Netflix.

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Speaker 3: I was looking thinking about the likes of Selling Sunset,

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Speaker 3: for example. I want to see how they're because that's

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Speaker 3: quite a long way into their runs. I want to

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Speaker 3: see how they're viewing figures compared to other ones. The

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Speaker 3: most recent season of Selling Sunset came in an eighty

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Speaker 3: two million stream so fairly far down if you consider

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Speaker 3: that one of the seasons of Pepper Peg also eighty

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Speaker 3: two million streams, and Pepper Pig appears quite a number

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Speaker 3: of times, as does Pop Patrol.

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Speaker 1: It is interesting because they've released also the data they've

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Speaker 1: been under heavy industry pressure to do so, they've released

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Speaker 1: it by hours viewed, which I thought was kind of fascinating.

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Speaker 3: Yeah. One that I really loved is the fact that

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Speaker 3: all of the seasons of The Gilmore Girls are over

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Speaker 3: sixty million hours of streaming, and they all rank quite highly,

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Speaker 3: so if you had them together, I think people are

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Speaker 3: spending quite a lot of time watching not just the

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Speaker 3: new series created by Netflix, with some of the older ones.

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Speaker 1: Yeah, it'd definitely not ask. We're obviously clearly much too

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Speaker 1: busy to be watching quite so much. Anyway, Moving on

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Speaker 1: from the Netflix story.

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Speaker 3: Let's turn to the political story here in the UK

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Speaker 3: and Richie Sinac fended off rebels and won a parliamentary

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Speaker 3: vote on legislation to greenlight his signature plan to deport

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Speaker 3: asylum seekers to Rwanda. But it is far from a

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Speaker 3: resolution of the issue. Joining us now to discuss Bloomberg

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Speaker 3: UK Politics podcast producer and reporter James Wilcock, James, great.

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Speaker 2: To have you with us.

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Speaker 3: So Ritchie Sinac survived the vote, What does it mean

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Speaker 3: now for his premiership?

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Speaker 9: Well, I mean Stephen giving you an found love of drama.

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Speaker 9: I'm going to hope to try and deliver Withether. What's

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Speaker 9: happening in Westminster last night? In short, both sides blinked

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Speaker 9: a lot of the sort of Downing Street staff were

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Speaker 9: saying that if they were to lose this vote it

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Speaker 9: would be an historic defeat that would spell the beginning

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Speaker 9: of the end for a toy soon axt. So for

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Speaker 9: him to secure majority of forty four is a win.

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Speaker 9: It is an unalloyed win and is worth saying that

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Speaker 9: at the start, but it is a win that leads

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Speaker 9: very little resolved for the Prime Minister. It is the

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Speaker 9: second reading, which means that you vote for the bill

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Speaker 9: in principle, you don't vote for all the bits of

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Speaker 9: it doesn't become law immediately, doesn't go to the House

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Speaker 9: of Lords. That all still needs to happen. And the ERG,

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Speaker 9: the hardliners who fought against this vote say that soon

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Speaker 9: a behind the scenes promised them amendments, amendments that would

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Speaker 9: make the moderates not back the bill. So when this

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Speaker 9: comes back in January, we are set to have this

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Speaker 9: whole thing happen again. And crucially, in that vote, although

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Speaker 9: So got quite a comfortable majority of forty four, there

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Speaker 9: were thirty eight abstentions, and as you know from parliamentary arithmetic,

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Speaker 9: if you abstain that's one thing. If you vote against

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Speaker 9: that works doubly hard to get down the bill. Those

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Speaker 9: numbers are enough to kill a future version of this bill.

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Speaker 9: So both sides claim that they won here and it

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Speaker 9: does nothing but delay the drama in Westminster through to

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Speaker 9: the next year.

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Speaker 1: But surely this is part of the problem that we're

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Speaker 1: talking about a Conservative party that is cleave down the

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Speaker 1: middle where there are two sides within the Tory Party.

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Speaker 1: Labour's kissed Arma obviously, yeah, addressing that, talking to that,

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Speaker 1: saying that the toys are quote fighting like rats in

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Speaker 1: a sack.

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Speaker 9: He obviously will point to that, and he will be

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Speaker 9: doing his best electorally as a Labor leader to point

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Speaker 9: to kissed Darma. So it's point to Liz Trust and

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Speaker 9: point to Boris Johnson party Gate and try and draw

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Speaker 9: a connection between the Party of the modern day in

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Speaker 9: ronto Richie Sunak and that of last year. The question is, though,

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Speaker 9: is what would Labor do differently on migration? And that

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Speaker 9: is what Richie's is very pleased to be saying this

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Speaker 9: morning because the one thing that this majority gives him

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Speaker 9: is he can say I've got a plan. My MP's

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Speaker 9: voted for that plan. Sure it was difficult, but migration

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Speaker 9: is a hard decision. What's your alternative? So this does

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Speaker 9: again give Richie a out to be able to push

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Speaker 9: Labor and go, well, well, excuse me, what is your

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Speaker 9: concern otherwise? So it is worth saying, Caroline, yesterday things

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Speaker 9: look very very very bleak. I mean the government was

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Speaker 9: even flying its cop climate Minister Graham Stuart back to

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Speaker 9: vote on this. It was tense, but this gives them

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Speaker 9: a reprief for Christmas, effectively, James.

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Speaker 3: Meanwhile, the UK being warned that it's at high risk

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Speaker 3: of a catastrophic ransomware attack from a parliamentary report.

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Speaker 9: This is yes, I mean, this is from Select Committee

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Speaker 9: chair by Margaret Becket, who has been a guest on

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Speaker 9: our podcast in the past. It warns the UK could

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Speaker 9: face a bill of twenty nine billion, which is one

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Speaker 9: point six percent of GDP if it doesn't protect itself.

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Speaker 9: Better not to mention the risks of election interference, I

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Speaker 9: mean the dangers here, Stephen is there are big, serious questions,

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Speaker 9: like there's questions over the UK's at future industrial strategy.

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Speaker 9: There are riches, other four pledges outside of just stopping

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Speaker 9: the votes. The kind of drama in Westments we see

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Speaker 9: last night does question how far can command and the

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Speaker 9: gens to deal with, frankly, the boring bits of politics,

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Speaker 9: the bits that won't make it into Netflix.

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Speaker 2: Yeah. Yeah.

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Speaker 1: And Lord Harrington, who was on the program on yesterday,

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Speaker 1: was saying that exact issue that immigration has taken up

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Speaker 1: an awful lot of you know, the time at a

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Speaker 1: Downing Street over the last few days. Thank you so

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Speaker 1: much for being with us. James Walcock, our Bloomberg UK

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Speaker 1: Politics podcast producer and reporter. Then on the latest in

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Speaker 1: UK politics.

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Speaker 3: We're going to stay in the UK for our next story,

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Speaker 3: to a conversation about home building and how some developers

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Speaker 3: are escaping sanctions for breaking planning rules. Freedom of information

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Speaker 3: requests compiled by Bloomberg So the number of cases opened

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Speaker 3: in relation to alleged breaches of planning cremation has almost

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Speaker 3: had since twenty ten. Joining us now with the details

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Speaker 3: our residential real estate reporter Damien Shepherd. Damien, good morning

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Speaker 3: to you. One high profile incident recently in London of

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Speaker 3: rogue development that got a lot of attention. Tell us

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Speaker 3: about what happened.

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Speaker 10: Yeah, so we're talking about the master Key development in Woolwich,

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Speaker 10: the old military town in London. Now, just to sort

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Speaker 10: of take you back, planning Planning Agreement, there's a strict

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Speaker 10: set of in place to ensure that developers are building

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Speaker 10: as the agreement told them to. It's there to protect

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Speaker 10: neighbors and often the integrity of the area. Willich being

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Speaker 10: an old military town, it was quite important that this

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Speaker 10: luxury apartment block looked like a luxury apartment block, but

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Speaker 10: the reality was a rather rudimentary design which didn't deliver

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Speaker 10: on its promises of disabled access commercial space, and the

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Speaker 10: balconies were too small, the windows were too small. There

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Speaker 10: are a lot of reasons for planning enforcement to be

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Speaker 10: pretty annoyed at the way the building was erected, but

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Speaker 10: the reality is this is one case of planning enforcement

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Speaker 10: getting it right. The Freedom of information requests showed that

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Speaker 10: the amount of planning enforcement happening in local authorities has

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Speaker 10: more than halved since twenty ten. So while this is

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Speaker 10: an example of them getting it right, there's a lot

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Speaker 10: of neighbors in areas where these rogue developments are happening

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Speaker 10: that will be looking out their window and thinking why

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Speaker 10: these not getting caught.

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Speaker 1: I like the fact that you started by saying that

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Speaker 1: you know that it's a strict set of rules. I mean,

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Speaker 1: it's not if you don't abide by them. And mass

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Speaker 1: Key got so much attention because the developers have been

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Speaker 1: told to tear the building down, which is kind of

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Speaker 1: extraordinary in the UK. And I think you would say

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Speaker 1: pretty rare, wouldn't you. I mean our offenders being.

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Speaker 10: Caught, well no, I mean, yeah, we've got this exclusive data.

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Speaker 10: I went to you know, dozens of local authorities around

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Speaker 10: the UK, seventeen in London too, and like I say,

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Speaker 10: the amount of developers getting caught has halved roughly in

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Speaker 10: the last ten years. And in that period of time,

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Speaker 10: housing construction, albeit from a low base, has actually risen.

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Speaker 10: So while construction has gone up, the amount of rogue

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Speaker 10: buildings being caught in the act are going down. The

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Speaker 10: London borough of Hounslow handed out twenty one enforcements last

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Speaker 10: year compared to one hundred and fifty in twenty fourteen. Now,

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Speaker 10: I was speaking to a planner yesterday who said there

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Speaker 10: used to be an enforcement officer and he used to

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Speaker 10: literally walk around Westminster looking at buildings that were being

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Speaker 10: developed and checking that they were being built in the

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Speaker 10: way that they should. So there's clearly a contrast happening

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Speaker 10: now in planning departments compared to how it used to be.

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Speaker 3: And why is it that more of these rugue developments

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Speaker 3: aren't being course?

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Speaker 10: Yeah, Well, I saw an interesting survey during my reporting

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Speaker 10: that said that nine in ten local authorities have a

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Speaker 10: backlog of enforcement notices. Eight in ten planning teams say

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Speaker 10: that not enough staff are in the departments to carry

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Speaker 10: out the workload. And this essentially all comes down to resource.

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Speaker 10: There's not enough funding in these planning departments. There's not

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Speaker 10: enough staff, and this is leading to simply, as I say,

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Speaker 10: not enough people in these departments to carry out the workload.

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Speaker 10: We've seen this year Birmingham and Nottingham Council's warning of

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Speaker 10: being in financial distress and until more money's flowing into

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Speaker 10: these local councils. There were people looking out their windows

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Speaker 10: hearing loud construction noise and wondering if everything is being

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Speaker 10: done many.

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Speaker 1: Yeah, okay. Meanwhile, lots of pressure in this area because

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Speaker 1: political parties are vowing to improve the planning system.

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Speaker 9: Yeah.

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Speaker 10: So, earlier this year at the Labor Party conference, there

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Speaker 10: was a vow to hike stamp duty for foreign home

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Speaker 10: buyers and use it to improve the planning system. Now,

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Speaker 10: the Tories kind of retaliated to that in their party

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Speaker 10: conference announcing plans to let homeowners split their house into

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Speaker 10: two flats without the need for planning permission. Now, spoken

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Speaker 10: to a few folks in the real estate industry about this,

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Speaker 10: and there's a real concern from an enforcement point of

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Speaker 10: view that allowing a house to be split into two

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Speaker 10: flats without the need for planning permission is kind of

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Speaker 10: a soft approach towards enforcement. So we've seen this data

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Speaker 10: on the amount of enforcement tumbling since twenty ten. And

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Speaker 10: given now that the rules on planning are being relaxed,

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Speaker 10: which albeit could be a good thing for the amount

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Speaker 10: of homes in this country, I think there'll be a

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Speaker 10: lot more concern around the road developments that are happening.

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