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

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Speaker 2: This is the BlueBag Day, baq At podcast. Good morning,

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Speaker 2: It's Wednesday, the fifth of November. I'm Caroline Hepcat in London.

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Speaker 1: And I'm Stephen Caroline Brussels. Coming up today. Zoran mmdanni

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Speaker 1: wins the election to become the next mayor of New

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Speaker 1: York City as Democrats chuck up big wins across the

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Speaker 1: United States.

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Speaker 2: Stocks drop as investors wonder if long running concerns over

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Speaker 2: lofty tech valuations have now become a market reality.

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Speaker 1: Plus why Astra Zeneca's CEO is willing to compromise when

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Speaker 1: it's for Donald Trump.

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Speaker 2: Let's start with a roundup of our top stories.

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Speaker 1: Zora Mumdanny has been elected as mayor of New York

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Speaker 1: City as Democrats secured decisive wins in votes across the

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Speaker 1: United States. Ma'm danny won just over fifty percent of

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Speaker 1: the vote, while former Governor Andrew Cuomo garnered forty two

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Speaker 1: percent and Republican Curtis Leewa got seven percent. With eighty

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Speaker 1: eight percent of that's counted. During his victory speech, mmdanny

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Speaker 1: pitched his win as a moment of change for the country,

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Speaker 1: as he sought to single out what he called the

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Speaker 1: billionaire class.

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Speaker 3: We refuse to let them dictate the rules of the

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Speaker 3: game anymore. They can play by the same rules as

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Speaker 3: the rest of us. Together, we will usher in a

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Speaker 3: generation of change. And if we embrace this brave new course,

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Speaker 3: rather than fleeing from it, we can respond to oligarchy

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Speaker 3: and authoritarianism, which the strength it fears, not the appeasement

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Speaker 3: it graves.

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Speaker 1: Zorn Mmdanni will be New York's first Muslim mayor and

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Speaker 1: first person of South Asian descent to lead the city

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Speaker 1: in its four hundred year history. His win capped off

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Speaker 1: a night of sweeping victories for the Democratic Party as

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Speaker 1: it seeks to turn the page on the presidential election

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Speaker 1: defeat to Trump. Mikey Cheryl in New Jersey and Abigail

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Speaker 1: Spanberg in Virginia both won their races for governor, and

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Speaker 1: in California, voters approved a ballot initiative that will redraw

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Speaker 1: the state's congressional district map to give Democrats the opportunity

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Speaker 1: to win a handful of additional seats.

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Speaker 2: Now, global stocks have fallen on concerns that lofty valuations

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Speaker 2: are overstretched. With megacap tech firms leading losses, the selling

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Speaker 2: pressure white five hundred billion dollars off the Philadelphia Semiconductor Index,

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Speaker 2: and a Bloomberg gage tracking Asian chip stocks. Now, the

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Speaker 2: growing slump is leading investors to question where the long

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Speaker 2: running concerns will finally bring an end to the bull

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Speaker 2: run that started in April. Here is Ekaterina Bigos from

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Speaker 2: AXA Investment Managers.

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Speaker 4: Now, what is the catalyst for some of the recovery

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Speaker 4: and quicker recovery? Clearly market watching, first evaluations, some indications

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Speaker 4: of potential revenue crystallization on some investment but importantly for us,

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Speaker 4: will looking at the FED. So FED has been part

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Speaker 4: of the narrative of why we see that correction. To

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Speaker 4: some degrees, people are concerned as will the Fed pad

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Speaker 4: in December, And of course at the meeting that they've

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Speaker 4: had last week, you know they put it into balance.

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Speaker 4: It wasn't kind of a clear guidance. Are they're actually

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Speaker 4: going to do it?

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Speaker 2: Ekearina big Speaking thereafter, Wall Street chiefs, including Goldman SACHXEO

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Speaker 2: David Solomon warns that a significant market pullback is now

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Speaker 2: increasingly likely.

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Speaker 1: The US government shutdown is now and it's thirty sixth day,

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Speaker 1: making it the longest in history. As the entrench standoff

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Speaker 1: between Republicans and Democrats over healthcare and spending priorities continues,

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Speaker 1: the economic pain is deepening. The Congressional Budget Office estimates

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Speaker 1: the shutdown will cut fourth quarter growth by as much

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Speaker 1: as two percentage points if it continues for eight weeks,

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Speaker 1: followed by a short term rebound early next year. Even then,

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Speaker 1: the US economy would lose billions in outputs.

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Speaker 2: Here in the UK, the Office for Budget Responsibility is

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Speaker 2: poised to lower its estimates for UK productivity by zero

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Speaker 2: point three percentage points. It means a hit of as

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Speaker 2: much as twenty billion pounds for the Chancellor Rachel Reeves

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Speaker 2: ahead of this month's budget. Meanwhile, leading think tank, the

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Speaker 2: National Institute of Economic and Social Research, has warned that

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Speaker 2: the Chancellor needs to run primary budget surpluses to get

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Speaker 2: a grip of the country's quote unsustainable debt trajectory in

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Speaker 2: their view. Meanwhile, the Chancellor's meeting top insurance CEOs today

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Speaker 2: in a bid to try to increase investment into the UK.

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Speaker 2: The Chief Secretary to the Treasury, James Murray, says the

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Speaker 2: government's economic strategy is working.

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Speaker 5: We had the fastest growing economy in the G seven

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Speaker 5: in the first half of this year, with for one

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Speaker 5: hundreds of billions of pounds of investment, five interest rate cuts.

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Speaker 5: But we're really clear that there's a lot more to

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Speaker 5: do and that we've got some big challenges we're facing.

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Speaker 5: And those big challenges that we're facing now are what

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Speaker 5: the Chancellor is going to take head on going into

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Speaker 5: the budget.

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Speaker 2: This year, James Murray speaking. Their attendees will include representatives

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Speaker 2: from Lloyd's of London, Hiss Cox and Swiss Ree. According

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Speaker 2: to the Treasury.

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Speaker 1: The European Union countries have reached a preliminary deal to

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Speaker 1: reduce emissions by ninety percent by twenty forty compared with

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Speaker 1: nineteen ninety levels. It's a key milestone on the path

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Speaker 1: to reaching net zero by twenty fifty. As consensus over

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Speaker 1: climate action has fractured, Bloomberg's Micaalcubala has.

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Speaker 6: More it took more than fifteen hours of negotiations. Now

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Speaker 6: Bloomberg has learned that EU environment ministers have reached the

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Speaker 6: basis for an agreement, which is due to be adopted

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Speaker 6: in the coming hours. The deal came after member state

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Speaker 6: secured assurances from the European Commission. They include trade protections

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Speaker 6: for steel and language on technical neutrality, a term often

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Speaker 6: used to open the door to more nuclear power. The

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Speaker 6: compromise will still need approval from the European Parliament, but

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Speaker 6: will allow the EU to submit its new climate pledge

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Speaker 6: to the United Nations. All as world leaders gather in

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Speaker 6: Brazil for COP thirty. In Brussels, Michalcubola, Bloomberg Radio.

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Speaker 2: And lastly, WhatsApp has introduced a standalone Apple Watch app

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Speaker 2: messaging on its platform, rather making messaging on its platform

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Speaker 2: easier for whereas the software includes features as such as

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Speaker 2: coll notifications, voice messages, and full length text previews. A

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Speaker 2: Meta statement described the release as just the start of

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Speaker 2: enhancing the WhatsApp experience for Apple Watch users and said

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Speaker 2: that additional features are plaied for the coming months. So

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Speaker 2: those are our top stories.

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Speaker 1: On the markets today. We're looking at the equity sell

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Speaker 1: off continuing in Asia at the MSCIS specific index down

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Speaker 1: by one point two percent, the Nicke and Tokyo two

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Speaker 1: point nine percent lower, the Caspian sold three point three

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Speaker 1: percent lower. Suppliers to Nvidia, particularly in focus the likes

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Speaker 1: of Advan test in Japan down by seven percent in

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Speaker 1: trading today, European stock future is firmly in the red

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Speaker 1: to down seven tenths for eurostocks fifty futures, and on

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Speaker 1: Wall Street NASDAK futures are pointing also lower, down four

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Speaker 1: tenths of one percent.

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Speaker 2: Well, in a moment, we'll bring you more on the

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Speaker 2: US election results and also how the boss of AstraZeneca

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Speaker 2: approached which is his relationship with the Trump administration. But

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Speaker 2: before that, we always like to think about food. It's

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Speaker 2: almost breakfast time, isn't it. I might not be eating

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Speaker 2: chocolate for breakfast, but maybe.

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Speaker 1: I mean, we should all think about us. Quite frankly,

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Speaker 1: I think I could make the start of the day

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Speaker 1: much easier, if not necessarily particularly healthy. But this is

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Speaker 1: to do with the rising cocoa price, as the story

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Speaker 1: we've been reporting on for some time now, but also

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Speaker 1: how chocolate makers are adapting their recipes in some cases

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Speaker 1: to use less coco. The bloomber Cominnian columns Lara Williams

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Speaker 1: has been writing about this. She went to Amsterdam to

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Speaker 1: meet some of them, as she describes the real life

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Speaker 1: Willy Wonkas who are coming up with their own operations

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Speaker 1: to try and our own creations rather to try and

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Speaker 1: use less cocoa. So she tried the brownies made by Opi,

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Speaker 1: which is a food ingredients business, uses one fifth less

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Speaker 1: cocoa than normal and Larasas tastes infinitely more chocolatey. So

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Speaker 1: perhaps this could be the future.

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Speaker 2: Well, there's been this huge controversy in the UK because

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Speaker 2: not only have we had shrink flation when it comes

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Speaker 2: to you know, chocolate products, chocolate biscuits and so on,

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Speaker 2: but also some that have actually now can't call themselves

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Speaker 2: chocolate because they don't have enough chocolate content in them

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Speaker 2: because there are rules around that labeling here in the UK.

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Speaker 2: But yes, I think, given you know, the price increases

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Speaker 2: that we've seen for coco, people are trying lots of

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Speaker 2: different things, aren't they. But it's a very nice story.

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Speaker 2: We'll put a link to it in our show notes.

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Speaker 2: That is from our Bloomberg opinion columnist Laura Williams.

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Speaker 1: Well, that's bringing more now on the US election results,

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Speaker 1: zorn Mum Danny winning the race to become New York

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Speaker 1: City's next mayor, while the Democrats also scored wins incubernatorial

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Speaker 1: votes in New Jersey and Virginia. We've got Bloomberg Daybreak

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Speaker 1: editor Mark Perrier with us for more on this story. Mark,

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Speaker 1: let's start with Zora Mumdany. Then it was, as polls

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Speaker 1: had predicted, what won't.

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Speaker 6: It for them?

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Speaker 7: Good morning? The focus was very much on the cost

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Speaker 7: of living, and I think that really captured the attention

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Speaker 7: of a younger electorate in the city thing. Younger voters

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Speaker 7: really turned out for him. I think that really supported

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Speaker 7: him and also his opponents in the race. You know,

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Speaker 7: one has to remember he had already beaten Cuomo in

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Speaker 7: the primaries, so not not a surprise win, but definitely

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Speaker 7: a resounding one that will send waves through the political

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Speaker 7: sphere in New York and beyond.

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Speaker 2: Yeah, and it was also a three way race in

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Speaker 2: some way, so Andrewka, you know, some people saying that

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Speaker 2: actually Sliva because Islia maybe split the vote effectively exactly. Also,

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Speaker 2: though a lot of challenges perhaps lie ahead, Ma'm Danny

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Speaker 2: made many big promises.

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Speaker 7: He's got huge promises to fill free buses, more affordable housing,

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Speaker 7: turning city run grocery, creating city rung grocery stores. These

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Speaker 7: are massive promises. And also the fact that he wants

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Speaker 7: to take the wealthy to you know, to in order

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Speaker 7: to pay for all of this, I think will make

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Speaker 7: him somewhat less attractive to Wall Street, to the Wall

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Speaker 7: Street players in the city. He's got to build coalition here.

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Speaker 7: And in his acceptance speech it was very much a

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Speaker 7: populist message. It was very much about changing leadership. Uh

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Speaker 7: it was about toppling a political dynasty, That's what he said.

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Speaker 3: Uh.

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Speaker 7: So I think he's got to He's you know, obviously

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Speaker 7: he's got to work on his policy platform, but I

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Speaker 7: think he also needs to work on coalition building as well.

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Speaker 7: That will be key to his success in the city.

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Speaker 1: And we should mention as well, Mark that Michael Bloomberg

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Speaker 1: endorsed and Cuomo and the Merrill race and had to

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Speaker 1: donate it to a super park committee supporting him. Bloomberg

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Speaker 1: course the founder and majority owner of Bloomberg LP, which

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Speaker 1: is the parent company of Bloomberg Television and Radio. But

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Speaker 1: I wanted to ask you as well about some of

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Speaker 1: the other wins for the Democrats New Jersey and Virginia,

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Speaker 1: as well as the redistricting vote in California that passed

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Speaker 1: as well. How significant significant are those wins and what

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Speaker 1: does it tell us about the momentum behind the Democratic

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Speaker 1: parties we look ahead to next year's midterms.

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Speaker 7: It does re energize the party and they certainly did

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Speaker 7: need it. I think, you know this, this injection of

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Speaker 7: of of energy will propel them in the next year.

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Speaker 7: And obviously the whole message is around affordability. That will

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Speaker 7: be I think their platform going into the midterms. They'll

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Speaker 7: definitely play on that. On the cost of living crisis

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Speaker 7: in the US and again looming in the background the

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Speaker 7: shutdown which has hit thirty six days, so it's it's

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Speaker 7: definitely it may play. I think it may play in

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Speaker 7: their favor, but it really depends on their strategy, strategy

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Speaker 7: and how they you know, how they approach the electorate

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Speaker 7: with it.

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Speaker 2: Yeah, very interesting and also there was a reaction from

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Speaker 2: President Trump on social media. Trump wasn't on the ballot

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Speaker 2: and shut down were the two reasons that Republicans lost

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Speaker 2: elections tonight. That was the quote from President Donald Trump

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Speaker 2: on truth social Thank you so much, Mark for being

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Speaker 2: with us today. That is Bloomberg Daybake editor Mark Perrier.

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Speaker 2: Stay with us more from Bloomberg Daybakeube coming up after this.

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Speaker 1: AstraZeneca's CEO Pasco Sorrio has turned the British drug maker

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Speaker 1: into a cancer drug powerhouse, the largest company on the

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Speaker 1: London Stock Exchange, and a business that has compromised rather

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Speaker 1: than criticized US President Donald Trump. Joining us now to

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Speaker 1: discuss Boomberg Helth reporter Ashley Furlong and her reporting into

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Speaker 1: the company and its culture. Ashley, good morning. How has

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Speaker 1: Pascott Sorrio then handles the Trump administration and its agenda

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Speaker 1: in the pharmaceutical space.

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Speaker 8: So he's taken the threats from the administration incredibly seriously

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Speaker 8: and he's really prioritized getting a deal done with Trump.

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Speaker 8: Skill Sorry's presence was really key to that. He was

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Speaker 8: in almost every meeting. He was described as really constructive.

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Speaker 8: Sorrio told us that he compromised in the end and

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Speaker 8: it wasn't what Astrazena coriginally wanted to do. But I

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Speaker 8: think it really shows this pivot from this British drug

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Speaker 8: maker increasingly to the US to what is their key

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Speaker 8: market and what will be their key market for growth

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Speaker 8: of their new medicines and the years to come.

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Speaker 2: Indeed, sorry, though, and you pointed this out, he's been

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Speaker 2: a lot less outspoken about the Trump administration when it

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Speaker 2: has challenged science.

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Speaker 8: Yes, yes, that is very true, and to be fair

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Speaker 8: to him, you know, we have heard very little from

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Speaker 8: drug makers in general, but Sorio essentially told me, you

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Speaker 8: know that there wasn't actually an impact but to the

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Speaker 8: company at the moment from these cuts, and what he

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Speaker 8: was concerned about was, you know, early career researchers and

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Speaker 8: available positions for them. But there's also been you know,

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Speaker 8: criticism of how d makers have kept quiet on what

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Speaker 8: is a massive attack on established science and these big

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Speaker 8: cuts to public health in the US, and we have

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Speaker 8: heard very little direct criticism from drug makers on that,

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Speaker 8: and obviously they rely you know a lot on the

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Speaker 8: Trump administration as well, so we can sort of see

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Speaker 8: that relationship playing out there.

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Speaker 1: Another part of your reporting, Ashley, for this piece has

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Speaker 1: been Pascal Sarrio's influence on Astra Zeneca's company culture. Tell

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Speaker 1: us more about what you learned.

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Speaker 8: So we heard that he when he came on in

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Speaker 8: twenty twelve, had a really big influence on you know,

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Speaker 8: everything from you know, ensuring that the science was really

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Speaker 8: presented to the world, making sure that staff were going

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Speaker 8: to scientific meetings and staff were presenting their papers in

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Speaker 8: high impact journals. And we also heard that it's a

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Speaker 8: really high pressure, intense environment to work where performance is

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Speaker 8: you know, really constantly monitored and you know, you know,

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Speaker 8: if you have a poor presentation in a meeting, you know,

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Speaker 8: your career at the company could.

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Speaker 1: Be a jeopardy.

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Speaker 3: So we heard it.

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Speaker 8: It can be a very difficult place to work as well.

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Speaker 2: Yeah, and so then there is a tension on what

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Speaker 2: would happen to ask Zeneca post Pascal Sawyer.

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Speaker 8: Yes, that is obviously the big, the big unknown question.

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Speaker 8: You know, he is sixty six, he's been at the

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Speaker 8: drug Maker since twenty twelve. You know he will be

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Speaker 8: leaving at some stage. He sort of told us that

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Speaker 8: you know, that will be he won't be here for

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Speaker 8: ten years, but he wouldn't give a figure off, you

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Speaker 8: wouldn't say whether he'd be here for five. I think

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Speaker 8: the question is whether there's sort of key man risk,

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Speaker 8: and some think that they that they will that they

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Speaker 8: will be you know, he's been really key to remaking

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Speaker 8: the drug Maker, and he's also created, you know, to

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Speaker 8: his credit, a really skilled staff beneath him. So I

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Speaker 8: think there's also optimism that those people will be able

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Speaker 8: to carry on and you know, bring the drug Maker,

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Speaker 8: you know, continue to sort of increase sales and continue

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Speaker 8: on the trajectory that the drug makes has already on.

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Speaker 4: But there is also.

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Speaker 8: Concern that this sort of pervasive oversight that Pascal Sorrio

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Speaker 8: has over the drug maker. Without him, it will be

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Speaker 8: a very different place.

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