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

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Speaker 2: This is the Bloomberg DAYBAQ podcast. Good morning, It's Friday,

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Speaker 2: the third of October. I'm Caroline Hepkitt in London.

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Speaker 1: And I'm Stephen Caroline Brussels. Coming up today. Police patrols

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Speaker 1: are stepped up at synagogues across the UK following a

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Speaker 1: fatal terror attack in Manchester.

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Speaker 2: Flights are suspended at Munich Airport after multiple drone sightings,

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Speaker 2: adding to security concerns in Europe.

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Speaker 1: Plus, looking to sweeten the deal for investors, we'll bring

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Speaker 1: you the story of the secretive Swiss chocolate maker plotting

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Speaker 1: its billion dollar comeback.

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Speaker 3: Let's start with a roundup of our top stories.

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Speaker 1: UK counter terrorism police have named a British citizen of

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Speaker 1: Syrian descent as the perpetrator of an attack on a

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Speaker 1: synagogue that killed two people. Thirty five year old Gihad

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Speaker 1: al Shamy carried out the attack on Heaton Park Hebrew

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Speaker 1: Congregation Synagogue in Manchester yesterday. I'll Shami entered the UK

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Speaker 1: as a young child and was granted British citizenship in

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Speaker 1: two thousand and six. The Prime Minister Kirs Starmer called

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Speaker 1: the killings a terrorist attack. That attacked Jews because they

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Speaker 1: are Jews.

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Speaker 3: On behalf of our country.

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Speaker 4: I express my solidarity but also my sadness.

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Speaker 3: But you still have to live with these fears. Nobody

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Speaker 3: should have to do that.

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Speaker 1: Kir Starmer also promised extra protection for Jewish communities across

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Speaker 1: the UK. Two men died and three others sustained serious

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Speaker 1: injuries during the assault on the temple where worshippers were

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Speaker 1: gathered for Young Kapor, the holiest day in the Jewish calendar.

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Speaker 1: Police said the attacker drove a vehicle at people outside

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Speaker 1: the synagogue and then attacked them with a knife before

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Speaker 1: being shot dead by officers. He wore a vest that

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Speaker 1: police said had the appearance of an explosive device, but

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Speaker 1: was later found not to be viable now.

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Speaker 2: In other news, Munich Airport has suspended flight operations after

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Speaker 2: several drone sightingsfecting thousands of passengers at Germany's second busiest hub.

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Speaker 2: Seventeen flights were grounded and fifteen arrivals diverted to nearby cities.

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Speaker 2: It follows similar incidents in Denmark and Norway. Recent incursions

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Speaker 2: into European airspace have prompted European leaders to discuss building

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Speaker 2: a drone wall.

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Speaker 3: Here's Danish Prime.

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Speaker 2: Minister Meta Friedrichsen speaking at their summit in Copenhagen.

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Speaker 5: We have to build a much stronger European defense and

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Speaker 5: of course also respond to hybrid threats that we face.

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Speaker 5: One part of this response will be to strengthen our

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Speaker 5: defense against drones, to increase our own drone production, and

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Speaker 5: it has to be in very close cooperation with you.

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Speaker 2: In Ukraine, Danish Prime Minister Meta Friedrichsen speaking that alongside

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Speaker 2: Ukraine's v Lodomi Zelenski, several incursions in to NATO airspace

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Speaker 2: last month were attributed to Russia. That it remains unclear

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Speaker 2: if the events in Oslo, Copenhagen and Munich are connected.

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Speaker 2: Moscow has denied all accusations of breaching the alliance's airspace.

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Speaker 1: The US President Donald Trump is weighing slashing thousands of

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Speaker 1: federal jobs. The news comes ahead of a meeting with

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Speaker 1: his budget director Russell Vote, as the White House pressures

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Speaker 1: Democrats to end the government shut down. Press Secretary Carolyn

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Speaker 1: Levett told reporters the cuts will be focused on agencies

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Speaker 1: that don't align with the administration's values.

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Speaker 6: It's likely going to be in the thousands. It's a

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Speaker 6: very good question, and that's something that the Office of

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Speaker 6: Management and Budget and the entire team at the White

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Speaker 6: House here again is unfortunately having to work on today.

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Speaker 6: These discussions, in these conversations, these meetings would not be

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Speaker 6: happening if the Democrats had voted to keep the government open,

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Speaker 6: the White.

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Speaker 1: House's Caroline Leviatt speaking there. Her comments came after the

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Speaker 1: President described on social media what he'd called Democrat agencies,

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Speaker 1: most of which are a quote political scam. The Congressional

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Speaker 1: Budget Office estimates that about seven hundred and fifty thousand

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Speaker 1: employees are being furloughed during the show down, at a

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Speaker 1: cost of four hundred million dollars per day in last compensation.

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Speaker 2: Bridgewater Associates flagship Macro fund climbed twenty six point four

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Speaker 2: percent in the first nine months of the year on

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Speaker 2: the back of tariff fueled market uncertainty. Bloomberg understands that

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Speaker 2: the hedge fund is now on track for its biggest

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Speaker 2: gain since twenty ten. Hedge funds overalls have posted strong

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Speaker 2: gains this year, aided by surging US shares and volatility

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Speaker 2: in bonds and currency markets.

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Speaker 1: The launch of Boeing's latest plane is set to be delayed.

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Speaker 1: The hold up could result in billions of dollars and

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Speaker 1: extra charges. Bloomberg's Tea Adebaio has more.

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Speaker 7: Already six years late. Boeing's new seven seven seven X

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Speaker 7: won't join its feet until twenty twenty seven. Bloomberg understands

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Speaker 7: that some of the manufacturer's biggest customers are already making

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Speaker 7: plans for a further delay. According to analyst estimates, the

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Speaker 7: cost of this latest setback could run from two point

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Speaker 7: five five billion to as much as four billion dollars.

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Speaker 7: The jet is of major strategic and financial importance to

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Speaker 7: the firm, especially as part of its battle with rival

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Speaker 7: Airbus for a bigger slice of the lucrative long haul market.

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Speaker 7: A Boeing spokeswoman declined to comment, citing a quiet period

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Speaker 7: ahead of earnings in London.

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Speaker 3: To you at Abayo Bloomberg Radio.

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Speaker 2: Italy has approved a budget that cuts the deficit to

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Speaker 2: three percent of GDP this year, bringing the country within

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Speaker 2: the EU's fiscal rules for the first time since twenty nineteen.

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Speaker 2: The deficit is projected to shrink to two point eight

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Speaker 2: percent in twenty twenty six and keep falling in the

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Speaker 2: following years. The plan opens the door to Italy exiting

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Speaker 2: the EU's budget monitoring regime, which could then allow Prime

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Speaker 2: Minister Georgia Maloney space for tax cuts and more defense spending.

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Speaker 2: Picta's fixed Incomes Tracus Laurelin Reno Chatelein told Bloomberg Radio

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Speaker 2: that France and other European countries have lessons to learn

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Speaker 2: from Italy.

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Speaker 8: There is this commitment at the political level that they

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Speaker 8: want to put in some reforms, that they don't want

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Speaker 8: to strange themselves from Europe, even though you have this

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Speaker 8: populist vibe a bit still from Meloni. But I think

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Speaker 8: overall what we've learned is really political stability is very

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Speaker 8: good for business. It's very good also for markets, and

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Speaker 8: I think that's also a template that maybe we'll need

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Speaker 8: to have in the rest of Europe and in particular

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Speaker 8: in France.

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Speaker 2: Picta Is laure Lein Veno Chatlin speaking as uncertainty ever

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Speaker 2: France's budget continues. French Prime Minister Sebastia and Lacone is

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Speaker 2: holding meetings with lawmakers from different parties today as he

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Speaker 2: tries to build support for a spending plan.

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Speaker 1: Those are top stories on the markets. The MSCIS specific

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Speaker 1: index is up by four tenths of one percent. Today

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Speaker 1: we are seeing Japanese shares powering ahead, up by one

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Speaker 1: point seven percent, largely being lifted by technology shares. European

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Speaker 1: stock few are higher two tenths of one percent at

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Speaker 1: the moment for eurostocks fifty, the dollar is trading a

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Speaker 1: tenth of one percent stronger. The euro is at one

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Speaker 1: seventeen seventeen against the dollar.

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Speaker 3: So those are the markets. In a moment.

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Speaker 2: We will have the latest on the investigation into the

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Speaker 2: attack in Manchester. Plus we will bring you a story

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Speaker 2: about Switzerland's most shorted stock. But there is another story

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Speaker 2: that we've been reading about this morning, and I really

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Speaker 2: learned something new, Stephen, from this, and I really enjoyed

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Speaker 2: the images in this the vulnerability of undersea cables that

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Speaker 2: connect the world. Bloombo's got a fantastic written story, but

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Speaker 2: I think the illustrations allow you to really understand the

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Speaker 2: power of this.

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Speaker 1: Yeah, I mean, if you think about it, nearly all

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Speaker 1: global Internet traffic, so military communications, ten trillion dollars, and

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Speaker 1: daily financial transactions all flow through the subsea cables. So

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Speaker 1: our team has been looking in particular at how regular

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Speaker 1: cable cutting incidents off Taiwan have exposed the risks the

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Speaker 1: network faces. We of course remember this off Denmark as

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Speaker 1: well being a question too, and there are warnings in

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Speaker 1: the piece that governments are years behind the curve and

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Speaker 1: protecting this infrastructure too. And what this piece really exposes

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Speaker 1: is first of all, who controls the cables in different places.

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Speaker 1: There's four companies that mainly make them at the moment,

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Speaker 1: but also how you can trace the roots of how

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Speaker 1: these cables connect different parts of the world. There's cables

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Speaker 1: owned by a Chinese company that avoid India, for example.

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Speaker 1: There are you know, geopolitical factors involved in how this

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Speaker 1: network is created. Companies are also becoming more alive to

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Speaker 1: this meta, for example as building its own version of

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Speaker 1: subse cables too. So look, it's a really interesting illustration

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Speaker 1: of what could potentially be yet another risk in the

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Speaker 1: rosing geopolitical tensions, particularly if we think about the US

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Speaker 1: and China. Really recommended it's called Two Cables and the

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Speaker 1: Hidden Subsea Battle between US and China. You'll find it

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Speaker 1: on Bloomberg dot com and we'll put a link to

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Speaker 1: it on our show notes.

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Speaker 2: Well, let's bring you more now on the on a

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Speaker 2: synagogue in Manchester yesterday in which two people were killed.

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Speaker 2: A British citizen of Syrian origin has been named as

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Speaker 2: the attacker. He was shot dead by police. Are UK

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Speaker 2: Politics who reported James Walcock joins US Now for more

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Speaker 2: on this. James, what is the latest today that we

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Speaker 2: are hearing on the investigation?

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Speaker 9: Calln Police are still looking to the motives, but they

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Speaker 9: and the Prime Minister are declaring this a terrorist incident.

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Speaker 9: They have named Jahad al Shami, who is a thirty

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Speaker 9: five year old British citizen of Syrian descent, as the perpetrator,

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Speaker 9: and they have arrested three people, two men in their

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Speaker 9: thirties and a woman in her sixties, on suspicion of

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Speaker 9: the Commission Preparation and Instigation of Acts of terrorism.

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Speaker 1: James, how has the government responded to this? Kiss Starmer.

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Speaker 9: The Prime Minister flew back cut short a trip to

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Speaker 9: Copenhagen to visit in London Synagogue, and he says that

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Speaker 9: this act was committed by a vile individual who attacked

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Speaker 9: Jews because they are Jews and attack Britain because of

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Speaker 9: its values. He continues to say that hatred against Jews

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Speaker 9: is rising once again and Britain must defeat it once again,

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Speaker 9: and he adds that I promise over the coming days

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Speaker 9: you will see the other Britain, the Britain of compassion,

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Speaker 9: of decency and of love. He has vowed a police

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Speaker 9: response and indeed police have increased presence at synagogues across

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Speaker 9: the country. I was looking up the Community Security Trust,

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Speaker 9: which is a UK charity that tracks and combats anti Semitism,

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Speaker 9: say it is the first fatal incident targeting Jewish people

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Speaker 9: in the UK in at least thirty years. You've also

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Speaker 9: seen unanimous statements across the political spectrum from Reform UK's Nigelfrag,

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Speaker 9: the Greens Jack Polanski, who is Jewish himself, the Conservative

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Speaker 9: Kaomie Badenoch, who are all condemning the attack, expressing their

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Speaker 9: horror that it has taken place and saying is antithetical

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Speaker 9: British values. I would note, just in addition to this,

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Speaker 9: clearly in the back of the mind of down Street

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Speaker 9: is the riots from last year in July. If you

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Speaker 9: look at the feed of the response, the speed at

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Speaker 9: which Starmer and the Prime Minister returned to the country,

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Speaker 9: and also which Andy Burnham, the Mayor City Calumay of

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Speaker 9: London and Shabana moved. The Home Secretary were on the scene.

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Speaker 9: There is clearly intent to try and get ahead of

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Speaker 9: any future spiraling, which we see in the morning, that

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Speaker 9: the police are concerned about the fear of copycat attacks.

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Speaker 2: Britain's Jewish community have been on alert for the last

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Speaker 2: two years about incidents around and of anti Semitism, since

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Speaker 2: the October seventh attacks in Israel. The wider reaction then

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Speaker 2: to this attack. I mean, it's rare to see terrorist

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Speaker 2: attacks in Britain and this is a very serious one.

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Speaker 9: The last time we saw terror attack to this nature,

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Speaker 9: especially isthmus lated ones, was twenty seventeen. But the current

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Speaker 9: no secret that there had been fears and the security

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Speaker 9: services for a number of times, like the number of

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Speaker 9: months now that the events in Gaza may spill over

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Speaker 9: into the UK's public order. I mean Ken McCallum, the

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Speaker 9: Director General of the UK's Domestics Service Domestic Security m

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Speaker 9: I five, warned last year that there were security implications

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Speaker 9: from Gaza, but last month Kirstarmus said the UK would

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Speaker 9: recognize Palestine's statehood and that has also led to concerns

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Speaker 9: about how this conflict increases the tensions in Britain's political debates.

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Speaker 9: It's worth adding that from the religious community, there has

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Speaker 9: been unanimous combin nations attack and I want to read

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Speaker 9: out what Im Kassim kari Asim, who's the co chairman

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Speaker 9: of the British Must Network said, because he said, this

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Speaker 9: bloodshed and violence in the Middle East, which is exclusionating,

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Speaker 9: is crusually even painful to witness. For all of us

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Speaker 9: must not be allowed to poison our streets in Britain.

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Speaker 9: So there has been a broad condemnation of the attack,

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Speaker 9: but it has also led to fears from the police

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Speaker 9: who've asked organized of a mass processes Saturday against the

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Speaker 9: Baron Pawers and actions be postponed while they divert resources

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Speaker 9: to protect both Jewish and Muslim communities after the terror attack.

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Speaker 1: Okay, James Wilcock, our UK Pultrick supporter, thank you, stay

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Speaker 1: with us. More from Bloomberg Daybreak Europe coming up after

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Speaker 1: this now.

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Speaker 2: The Swiss chocolate maker Barry Cable is positioning itself for

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Speaker 2: a turnaround after its stock and nearly halved in value.

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Speaker 2: It's the world's largest cocoa processor, but it's also Switzerland's

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Speaker 2: most shorted stock, so we wanted to bring you more

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Speaker 2: on this story with our Switzerland reporter Paula Dneki.

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Speaker 3: Good morning, thanks for being with us.

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Speaker 2: Barry Cable is a big player in the global chocolate industry.

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Speaker 3: Is not a household name though.

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Speaker 2: Tell us a bit about the origins of this business.

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Speaker 4: It's really interesting because it used to belong to a

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Speaker 4: German that went to Switzerland and it was called Yacrops

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Speaker 4: and it was a chocolate and coco company. And then

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Speaker 4: he went through a few alterations actually and eventually merged

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Speaker 4: Barry the chocolate process unit with the firm of Calibo.

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Speaker 4: So now it is the biggest chocolate processor and cocoa

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Speaker 4: bean's buyer and it literally produces everything from bean to

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Speaker 4: bar and sells the ingredients along the value chain two

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Speaker 4: different companies which are indeed household names. So it's fair

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Speaker 4: to assume that there is a bit of Verry Cali

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Speaker 4: chocolate and almost every chocolate you buy.

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Speaker 1: Why has the stock come under such pressure product?

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Speaker 4: I mean, we have seen we have seen a huge

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Speaker 4: cocoa price rally, which was very painful for Barry colib

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Speaker 4: out because they had their buying of chocolate, so those

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Speaker 4: bets became very costly. When price is searched, and then

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Speaker 4: at the same time, the company announced a turnaround, like

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Speaker 4: an internal turnaround, shortly before a price is started to rise.

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Speaker 4: So it is like it was attacked from the outside,

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Speaker 4: it changed things at the inside, and then like it

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Speaker 4: has a unique position in the market because people don't

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Speaker 4: know it. It's not a consumer brand, but it has

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Speaker 4: this exposure to the commodity prices. So yeah, that's why

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Speaker 4: companies like lind for example, found it much easier to

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Speaker 4: pass on those high prices to consumers, whereas Berry Calivart

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Speaker 4: had to convince its industrial customers that they have to

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Speaker 4: pay those higher prices now.

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Speaker 2: And briefly, there's a big question mark then and maybe

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Speaker 2: about the future of the company and how it addresses

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Speaker 2: these challenges.

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Speaker 4: This is really what the CEO, Pitterfel, taught us what

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Speaker 4: he's trying to do at the moment. He wants to

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Speaker 4: put the company on a much stronger footing for the future.

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Speaker 4: He does not believe in the way that coco, that

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Speaker 4: the cocoa industry has operated for the longest time.

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Speaker 1: It is really.

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Speaker 3: Still like fractured.

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Speaker 4: Industry with many producers of coco that it's hard to

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Speaker 4: sell and he thinks now is the time because the

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Speaker 4: prices are going up where those producers will have the

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Speaker 4: means to collect device basically to have much wider yards

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Speaker 4: and acres and produce coco much more efficiently because now

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Speaker 4: they can invest.

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Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 1: stories making news from London to Wall Street and beyond.

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Speaker 3: I'm Caroline Hepka.

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Speaker 1: And I'm Stephen Carroll. Join us again tomorrow morning for

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Speaker 1: all the news you need to start your day right

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Speaker 1: here on Bloomberg Daybreak Europe