WEBVTT - Synagogue Terror Attack, Munich Drone Shutdown, Chocolatier's Comeback

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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

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<v Speaker 2>the third of October. I'm Caroline Hepkitt in London.

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<v Speaker 1>And I'm Stephen Caroline Brussels. Coming up today. Police patrols

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<v Speaker 1>are stepped up at synagogues across the UK following a

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<v Speaker 1>fatal terror attack in Manchester.

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<v Speaker 2>Flights are suspended at Munich Airport after multiple drone sightings,

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<v Speaker 2>adding to security concerns in Europe.

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<v Speaker 1>Plus, looking to sweeten the deal for investors, we'll bring

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<v Speaker 1>you the story of the secretive Swiss chocolate maker plotting

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<v Speaker 1>its billion dollar comeback.

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<v Speaker 3>Let's start with a roundup of our top stories.

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<v Speaker 1>UK counter terrorism police have named a British citizen of

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<v Speaker 1>Syrian descent as the perpetrator of an attack on a

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<v Speaker 1>synagogue that killed two people. Thirty five year old Gihad

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<v Speaker 1>al Shamy carried out the attack on Heaton Park Hebrew

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<v Speaker 1>Congregation Synagogue in Manchester yesterday. I'll Shami entered the UK

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<v Speaker 1>as a young child and was granted British citizenship in

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<v Speaker 1>two thousand and six. The Prime Minister Kirs Starmer called

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<v Speaker 1>the killings a terrorist attack. That attacked Jews because they

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<v Speaker 1>are Jews.

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<v Speaker 3>On behalf of our country.

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<v Speaker 4>I express my solidarity but also my sadness.

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<v Speaker 3>But you still have to live with these fears. Nobody

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<v Speaker 3>should have to do that.

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<v Speaker 1>Kir Starmer also promised extra protection for Jewish communities across

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<v Speaker 1>the UK. Two men died and three others sustained serious

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<v Speaker 1>injuries during the assault on the temple where worshippers were

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<v Speaker 1>gathered for Young Kapor, the holiest day in the Jewish calendar.

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<v Speaker 1>Police said the attacker drove a vehicle at people outside

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<v Speaker 1>the synagogue and then attacked them with a knife before

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<v Speaker 1>being shot dead by officers. He wore a vest that

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<v Speaker 1>police said had the appearance of an explosive device, but

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<v Speaker 1>was later found not to be viable now.

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<v Speaker 2>In other news, Munich Airport has suspended flight operations after

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

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<v Speaker 2>Seventeen flights were grounded and fifteen arrivals diverted to nearby cities.

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<v Speaker 2>It follows similar incidents in Denmark and Norway. Recent incursions

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<v Speaker 2>into European airspace have prompted European leaders to discuss building

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<v Speaker 2>a drone wall.

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<v Speaker 3>Here's Danish Prime.

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<v Speaker 2>Minister Meta Friedrichsen speaking at their summit in Copenhagen.

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<v Speaker 5>We have to build a much stronger European defense and

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<v Speaker 5>of course also respond to hybrid threats that we face.

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<v Speaker 5>One part of this response will be to strengthen our

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<v Speaker 5>defense against drones, to increase our own drone production, and

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<v Speaker 5>it has to be in very close cooperation with you.

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<v Speaker 2>In Ukraine, Danish Prime Minister Meta Friedrichsen speaking that alongside

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

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<v Speaker 2>last month were attributed to Russia. That it remains unclear

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<v Speaker 2>if the events in Oslo, Copenhagen and Munich are connected.

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<v Speaker 2>Moscow has denied all accusations of breaching the alliance's airspace.

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<v Speaker 1>The US President Donald Trump is weighing slashing thousands of

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<v Speaker 1>federal jobs. The news comes ahead of a meeting with

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<v Speaker 1>his budget director Russell Vote, as the White House pressures

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<v Speaker 1>Democrats to end the government shut down. Press Secretary Carolyn

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<v Speaker 1>Levett told reporters the cuts will be focused on agencies

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<v Speaker 1>that don't align with the administration's values.

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<v Speaker 6>It's likely going to be in the thousands. It's a

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<v Speaker 6>very good question, and that's something that the Office of

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<v Speaker 6>Management and Budget and the entire team at the White

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<v Speaker 6>House here again is unfortunately having to work on today.

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<v Speaker 6>These discussions, in these conversations, these meetings would not be

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<v Speaker 6>happening if the Democrats had voted to keep the government open,

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<v Speaker 6>the White.

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<v Speaker 1>House's Caroline Leviatt speaking there. Her comments came after the

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<v Speaker 1>President described on social media what he'd called Democrat agencies,

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<v Speaker 1>most of which are a quote political scam. The Congressional

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<v Speaker 1>Budget Office estimates that about seven hundred and fifty thousand

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<v Speaker 1>employees are being furloughed during the show down, at a

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<v Speaker 1>cost of four hundred million dollars per day in last compensation.

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<v Speaker 2>Bridgewater Associates flagship Macro fund climbed twenty six point four

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<v Speaker 2>percent in the first nine months of the year on

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<v Speaker 2>the back of tariff fueled market uncertainty. Bloomberg understands that

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<v Speaker 2>the hedge fund is now on track for its biggest

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<v Speaker 2>gain since twenty ten. Hedge funds overalls have posted strong

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<v Speaker 2>gains this year, aided by surging US shares and volatility

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<v Speaker 2>in bonds and currency markets.

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

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<v Speaker 1>The hold up could result in billions of dollars and

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<v Speaker 1>extra charges. Bloomberg's Tea Adebaio has more.

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<v Speaker 7>Already six years late. Boeing's new seven seven seven X

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<v Speaker 7>won't join its feet until twenty twenty seven. Bloomberg understands

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<v Speaker 7>that some of the manufacturer's biggest customers are already making

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<v Speaker 7>plans for a further delay. According to analyst estimates, the

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<v Speaker 7>cost of this latest setback could run from two point

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<v Speaker 7>five five billion to as much as four billion dollars.

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<v Speaker 7>The jet is of major strategic and financial importance to

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<v Speaker 7>the firm, especially as part of its battle with rival

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<v Speaker 7>Airbus for a bigger slice of the lucrative long haul market.

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<v Speaker 7>A Boeing spokeswoman declined to comment, citing a quiet period

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<v Speaker 7>ahead of earnings in London.

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<v Speaker 3>To you at Abayo Bloomberg Radio.

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<v Speaker 2>Italy has approved a budget that cuts the deficit to

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<v Speaker 2>three percent of GDP this year, bringing the country within

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<v Speaker 2>the EU's fiscal rules for the first time since twenty nineteen.

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<v Speaker 2>The deficit is projected to shrink to two point eight

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<v Speaker 2>percent in twenty twenty six and keep falling in the

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<v Speaker 2>following years. The plan opens the door to Italy exiting

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<v Speaker 2>the EU's budget monitoring regime, which could then allow Prime

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<v Speaker 2>Minister Georgia Maloney space for tax cuts and more defense spending.

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<v Speaker 2>Picta's fixed Incomes Tracus Laurelin Reno Chatelein told Bloomberg Radio

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<v Speaker 2>that France and other European countries have lessons to learn

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<v Speaker 2>from Italy.

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<v Speaker 8>There is this commitment at the political level that they

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<v Speaker 8>want to put in some reforms, that they don't want

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<v Speaker 8>to strange themselves from Europe, even though you have this

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<v Speaker 8>populist vibe a bit still from Meloni. But I think

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<v Speaker 8>overall what we've learned is really political stability is very

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<v Speaker 8>good for business. It's very good also for markets, and

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<v Speaker 8>I think that's also a template that maybe we'll need

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<v Speaker 8>to have in the rest of Europe and in particular

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<v Speaker 8>in France.

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<v Speaker 2>Picta Is laure Lein Veno Chatlin speaking as uncertainty ever

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<v Speaker 2>France's budget continues. French Prime Minister Sebastia and Lacone is

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<v Speaker 2>holding meetings with lawmakers from different parties today as he

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<v Speaker 2>tries to build support for a spending plan.

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<v Speaker 1>Those are top stories on the markets. The MSCIS specific

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<v Speaker 1>index is up by four tenths of one percent. Today

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<v Speaker 1>we are seeing Japanese shares powering ahead, up by one

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<v Speaker 1>point seven percent, largely being lifted by technology shares. European

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<v Speaker 1>stock few are higher two tenths of one percent at

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<v Speaker 1>the moment for eurostocks fifty, the dollar is trading a

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<v Speaker 1>tenth of one percent stronger. The euro is at one

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<v Speaker 1>seventeen seventeen against the dollar.

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<v Speaker 3>So those are the markets. In a moment.

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<v Speaker 2>We will have the latest on the investigation into the

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<v Speaker 2>attack in Manchester. Plus we will bring you a story

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<v Speaker 2>about Switzerland's most shorted stock. But there is another story

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<v Speaker 2>that we've been reading about this morning, and I really

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<v Speaker 2>learned something new, Stephen, from this, and I really enjoyed

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<v Speaker 2>the images in this the vulnerability of undersea cables that

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

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<v Speaker 2>I think the illustrations allow you to really understand the

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<v Speaker 2>power of this.

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<v Speaker 1>Yeah, I mean, if you think about it, nearly all

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<v Speaker 1>global Internet traffic, so military communications, ten trillion dollars, and

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<v Speaker 1>daily financial transactions all flow through the subsea cables. So

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<v Speaker 1>our team has been looking in particular at how regular

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<v Speaker 1>cable cutting incidents off Taiwan have exposed the risks the

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<v Speaker 1>network faces. We of course remember this off Denmark as

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<v Speaker 1>well being a question too, and there are warnings in

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<v Speaker 1>the piece that governments are years behind the curve and

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<v Speaker 1>protecting this infrastructure too. And what this piece really exposes

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<v Speaker 1>is first of all, who controls the cables in different places.

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<v Speaker 1>There's four companies that mainly make them at the moment,

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<v Speaker 1>but also how you can trace the roots of how

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<v Speaker 1>these cables connect different parts of the world. There's cables

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<v Speaker 1>owned by a Chinese company that avoid India, for example.

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<v Speaker 1>There are you know, geopolitical factors involved in how this

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<v Speaker 1>network is created. Companies are also becoming more alive to

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<v Speaker 1>this meta, for example as building its own version of

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

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<v Speaker 1>of what could potentially be yet another risk in the

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<v Speaker 1>rosing geopolitical tensions, particularly if we think about the US

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<v Speaker 1>and China. Really recommended it's called Two Cables and the

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<v Speaker 1>Hidden Subsea Battle between US and China. You'll find it

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<v Speaker 1>on Bloomberg dot com and we'll put a link to

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<v Speaker 1>it on our show notes.

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<v Speaker 2>Well, let's bring you more now on the on a

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<v Speaker 2>synagogue in Manchester yesterday in which two people were killed.

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<v Speaker 2>A British citizen of Syrian origin has been named as

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<v Speaker 2>the attacker. He was shot dead by police. Are UK

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<v Speaker 2>Politics who reported James Walcock joins US Now for more

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<v Speaker 2>on this. James, what is the latest today that we

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<v Speaker 2>are hearing on the investigation?

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<v Speaker 9>Calln Police are still looking to the motives, but they

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<v Speaker 9>and the Prime Minister are declaring this a terrorist incident.

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<v Speaker 9>They have named Jahad al Shami, who is a thirty

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<v Speaker 9>five year old British citizen of Syrian descent, as the perpetrator,

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<v Speaker 9>and they have arrested three people, two men in their

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<v Speaker 9>thirties and a woman in her sixties, on suspicion of

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<v Speaker 9>the Commission Preparation and Instigation of Acts of terrorism.

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<v Speaker 1>James, how has the government responded to this? Kiss Starmer.

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<v Speaker 9>The Prime Minister flew back cut short a trip to

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<v Speaker 9>Copenhagen to visit in London Synagogue, and he says that

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<v Speaker 9>this act was committed by a vile individual who attacked

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<v Speaker 9>Jews because they are Jews and attack Britain because of

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<v Speaker 9>its values. He continues to say that hatred against Jews

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<v Speaker 9>is rising once again and Britain must defeat it once again,

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<v Speaker 9>and he adds that I promise over the coming days

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<v Speaker 9>you will see the other Britain, the Britain of compassion,

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<v Speaker 9>of decency and of love. He has vowed a police

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<v Speaker 9>response and indeed police have increased presence at synagogues across

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<v Speaker 9>the country. I was looking up the Community Security Trust,

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<v Speaker 9>which is a UK charity that tracks and combats anti Semitism,

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<v Speaker 9>say it is the first fatal incident targeting Jewish people

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<v Speaker 9>in the UK in at least thirty years. You've also

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

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<v Speaker 9>the Greens Jack Polanski, who is Jewish himself, the Conservative

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<v Speaker 9>Kaomie Badenoch, who are all condemning the attack, expressing their

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<v Speaker 9>horror that it has taken place and saying is antithetical

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<v Speaker 9>British values. I would note, just in addition to this,

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<v Speaker 9>clearly in the back of the mind of down Street

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<v Speaker 9>is the riots from last year in July. If you

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<v Speaker 9>look at the feed of the response, the speed at

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<v Speaker 9>which Starmer and the Prime Minister returned to the country,

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<v Speaker 9>and also which Andy Burnham, the Mayor City Calumay of

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<v Speaker 9>London and Shabana moved. The Home Secretary were on the scene.

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<v Speaker 9>There is clearly intent to try and get ahead of

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<v Speaker 9>any future spiraling, which we see in the morning, that

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<v Speaker 9>the police are concerned about the fear of copycat attacks.

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<v Speaker 2>Britain's Jewish community have been on alert for the last

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<v Speaker 2>two years about incidents around and of anti Semitism, since

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<v Speaker 2>the October seventh attacks in Israel. The wider reaction then

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<v Speaker 2>to this attack. I mean, it's rare to see terrorist

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<v Speaker 2>attacks in Britain and this is a very serious one.

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<v Speaker 9>The last time we saw terror attack to this nature,

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<v Speaker 9>especially isthmus lated ones, was twenty seventeen. But the current

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<v Speaker 9>no secret that there had been fears and the security

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<v Speaker 9>services for a number of times, like the number of

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<v Speaker 9>months now that the events in Gaza may spill over

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<v Speaker 9>into the UK's public order. I mean Ken McCallum, the

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<v Speaker 9>Director General of the UK's Domestics Service Domestic Security m

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<v Speaker 9>I five, warned last year that there were security implications

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<v Speaker 9>from Gaza, but last month Kirstarmus said the UK would

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<v Speaker 9>recognize Palestine's statehood and that has also led to concerns

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

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<v Speaker 9>It's worth adding that from the religious community, there has

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<v Speaker 9>been unanimous combin nations attack and I want to read

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<v Speaker 9>out what Im Kassim kari Asim, who's the co chairman

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<v Speaker 9>of the British Must Network said, because he said, this

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<v Speaker 9>bloodshed and violence in the Middle East, which is exclusionating,

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<v Speaker 9>is crusually even painful to witness. For all of us

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<v Speaker 9>must not be allowed to poison our streets in Britain.

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<v Speaker 9>So there has been a broad condemnation of the attack,

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<v Speaker 9>but it has also led to fears from the police

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<v Speaker 9>who've asked organized of a mass processes Saturday against the

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<v Speaker 9>Baron Pawers and actions be postponed while they divert resources

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<v Speaker 9>to protect both Jewish and Muslim communities after the terror attack.

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<v Speaker 1>Okay, James Wilcock, our UK Pultrick supporter, thank you, stay

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<v Speaker 1>with us. More from Bloomberg Daybreak Europe coming up after

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<v Speaker 1>this now.

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<v Speaker 2>The Swiss chocolate maker Barry Cable is positioning itself for

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<v Speaker 2>a turnaround after its stock and nearly halved in value.

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<v Speaker 2>It's the world's largest cocoa processor, but it's also Switzerland's

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<v Speaker 2>most shorted stock, so we wanted to bring you more

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<v Speaker 2>on this story with our Switzerland reporter Paula Dneki.

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<v Speaker 3>Good morning, thanks for being with us.

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<v Speaker 2>Barry Cable is a big player in the global chocolate industry.

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<v Speaker 3>Is not a household name though.

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<v Speaker 2>Tell us a bit about the origins of this business.

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<v Speaker 4>It's really interesting because it used to belong to a

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<v Speaker 4>German that went to Switzerland and it was called Yacrops

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<v Speaker 4>and it was a chocolate and coco company. And then

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<v Speaker 4>he went through a few alterations actually and eventually merged

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<v Speaker 4>Barry the chocolate process unit with the firm of Calibo.

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<v Speaker 4>So now it is the biggest chocolate processor and cocoa

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<v Speaker 4>bean's buyer and it literally produces everything from bean to

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<v Speaker 4>bar and sells the ingredients along the value chain two

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<v Speaker 4>different companies which are indeed household names. So it's fair

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<v Speaker 4>to assume that there is a bit of Verry Cali

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<v Speaker 4>chocolate and almost every chocolate you buy.

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<v Speaker 1>Why has the stock come under such pressure product?

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<v Speaker 4>I mean, we have seen we have seen a huge

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<v Speaker 4>cocoa price rally, which was very painful for Barry colib

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<v Speaker 4>out because they had their buying of chocolate, so those

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<v Speaker 4>bets became very costly. When price is searched, and then

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<v Speaker 4>at the same time, the company announced a turnaround, like

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<v Speaker 4>an internal turnaround, shortly before a price is started to rise.

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<v Speaker 4>So it is like it was attacked from the outside,

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<v Speaker 4>it changed things at the inside, and then like it

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<v Speaker 4>has a unique position in the market because people don't

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<v Speaker 4>know it. It's not a consumer brand, but it has

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

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<v Speaker 4>companies like lind for example, found it much easier to

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<v Speaker 4>pass on those high prices to consumers, whereas Berry Calivart

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<v Speaker 4>had to convince its industrial customers that they have to

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<v Speaker 4>pay those higher prices now.

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<v Speaker 2>And briefly, there's a big question mark then and maybe

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<v Speaker 2>about the future of the company and how it addresses

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<v Speaker 2>these challenges.

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<v Speaker 4>This is really what the CEO, Pitterfel, taught us what

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<v Speaker 4>he's trying to do at the moment. He wants to

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<v Speaker 4>put the company on a much stronger footing for the future.

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<v Speaker 4>He does not believe in the way that coco, that

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<v Speaker 4>the cocoa industry has operated for the longest time.

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<v Speaker 1>It is really.

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<v Speaker 3>Still like fractured.

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<v Speaker 4>Industry with many producers of coco that it's hard to

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<v Speaker 4>sell and he thinks now is the time because the

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<v Speaker 4>prices are going up where those producers will have the

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<v Speaker 4>means to collect device basically to have much wider yards

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<v Speaker 4>and acres and produce coco much more efficiently because now

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<v Speaker 4>they can invest.

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<v Speaker 1>This is Bloomberg Daybreak Europe, your morning brief on the

0:16:21.120 --> 0:16:24.200
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0:16:24.520 --> 0:16:28.480
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0:16:45.400 --> 0:16:47.840
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0:16:47.960 --> 0:16:50.360
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<v Speaker 1>here on Bloomberg Daybreak Europe