1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. 2 00:00:09,960 --> 00:00:10,520 Speaker 2: Good morning. 3 00:00:10,560 --> 00:00:13,360 Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the 4 00:00:13,400 --> 00:00:14,880 Speaker 3: stories we're following today. 5 00:00:15,400 --> 00:00:17,800 Speaker 4: Karen, we begin with politics in Europe and a ramped 6 00:00:17,840 --> 00:00:22,040 Speaker 4: up political crisis in France. The country's Prime Minister, Sebastian 7 00:00:22,079 --> 00:00:26,439 Speaker 4: Lecorneo has resigned, just a day after President Emmanuel mccrowe 8 00:00:26,520 --> 00:00:29,840 Speaker 4: named a new government that was broadly criticized. We get 9 00:00:29,840 --> 00:00:32,120 Speaker 4: more from Bloomberg Jehan Dalbard in Paris. 10 00:00:32,560 --> 00:00:34,960 Speaker 5: It is still a serious situation, but it is only 11 00:00:35,000 --> 00:00:38,320 Speaker 5: a political crisis yet and it doesn't look like a 12 00:00:38,320 --> 00:00:43,080 Speaker 5: fiscal non economic crisis. It will be for pro MACNC 13 00:00:43,080 --> 00:00:47,839 Speaker 5: to decigned a resignation. We think it's pretty unlikely, so 14 00:00:48,000 --> 00:00:51,720 Speaker 5: either he appoints a new prime minister or it called 15 00:00:51,760 --> 00:00:55,000 Speaker 5: for a new election, new general elections, But we don't 16 00:00:55,040 --> 00:00:58,080 Speaker 5: think it will solve the situation, because the political situation 17 00:00:58,200 --> 00:01:01,560 Speaker 5: is so fragmented in France that evening you general elections 18 00:01:01,600 --> 00:01:03,040 Speaker 5: once solved the problem. 19 00:01:03,200 --> 00:01:05,640 Speaker 4: It's Bloomberg, Jean Delbarta. We are seeing an impact in 20 00:01:05,680 --> 00:01:08,399 Speaker 4: the markets this morning. Stocks in France are down one 21 00:01:08,440 --> 00:01:09,520 Speaker 4: point seven percent. 22 00:01:10,240 --> 00:01:12,480 Speaker 3: Well, Nathan, we turned out to the latest developments to 23 00:01:12,600 --> 00:01:15,040 Speaker 3: end the war in the Middle East. Israel and Hamas 24 00:01:15,040 --> 00:01:18,440 Speaker 3: are preparing for indirect negotiations in Egypt, as hopes are 25 00:01:18,560 --> 00:01:22,080 Speaker 3: rising for a possible ceasefire in Gaza began more with 26 00:01:22,120 --> 00:01:24,240 Speaker 3: the Bloomberg's Dan Williams in Jerusalem. 27 00:01:24,360 --> 00:01:28,440 Speaker 6: Well, we have delegations converging on Egypt the Red Sea 28 00:01:28,560 --> 00:01:31,960 Speaker 6: result of Charmoche. There will be more proximity talks. Abbas 29 00:01:32,080 --> 00:01:35,480 Speaker 6: will never engage directly with Israel, so there'll be mediation 30 00:01:35,680 --> 00:01:39,920 Speaker 6: by the Egyptians by a Katari technical team, which is 31 00:01:39,959 --> 00:01:43,360 Speaker 6: also expected in Kato. You remember, along with Egypt, those 32 00:01:43,400 --> 00:01:48,160 Speaker 6: were the two Arab powers that have mediated previous cease files. 33 00:01:48,640 --> 00:01:52,320 Speaker 6: But now what's being discussed is a peace plan put 34 00:01:52,400 --> 00:01:56,120 Speaker 6: forward by President Trump last week. Peace meaning that this 35 00:01:56,160 --> 00:02:00,800 Speaker 6: will not just be a self interested, time bound, cessational 36 00:02:00,840 --> 00:02:04,520 Speaker 6: suspension of hostilities, but an end to the war and 37 00:02:04,680 --> 00:02:09,000 Speaker 6: according to the plan, an end to Hamas institutionally in 38 00:02:09,040 --> 00:02:10,240 Speaker 6: the Gaza strip. 39 00:02:10,720 --> 00:02:13,320 Speaker 3: And Bloombergs D and Williams in Jerusalem says a swap 40 00:02:13,320 --> 00:02:17,480 Speaker 3: of Israeli hostages and Palestinian prisoners would happen immediately upon 41 00:02:17,560 --> 00:02:21,120 Speaker 3: securing an agreement. While Hamas's disarmament would come in a 42 00:02:21,240 --> 00:02:22,160 Speaker 3: second stage. 43 00:02:22,280 --> 00:02:24,240 Speaker 4: Turning back to the US now, Karen, it is the 44 00:02:24,360 --> 00:02:27,800 Speaker 4: sixth day of the federal government shutdown, and the White 45 00:02:27,840 --> 00:02:30,840 Speaker 4: House is signaling the first rounds of federal layoffs could 46 00:02:30,840 --> 00:02:34,120 Speaker 4: begin as soon as today. Government worker unions have found 47 00:02:34,120 --> 00:02:37,120 Speaker 4: an emergency request with a federal judge in San Francisco 48 00:02:37,160 --> 00:02:39,680 Speaker 4: to try to keep that from happening. President Trump was 49 00:02:39,680 --> 00:02:41,760 Speaker 4: asked about his job cut plans on his way back 50 00:02:41,760 --> 00:02:43,600 Speaker 4: from a Navy celebration in Virginia. 51 00:02:43,919 --> 00:02:45,880 Speaker 7: Tek, you place right now, and it's all because of 52 00:02:45,919 --> 00:02:49,600 Speaker 7: the Democrats. The Democrats are causing the loss of a 53 00:02:49,600 --> 00:02:53,799 Speaker 7: lot of jobs with their it's a shutdown. It's there shutdown, 54 00:02:53,840 --> 00:02:55,440 Speaker 7: not our shutdown. It's there shutdown. 55 00:02:55,680 --> 00:02:58,360 Speaker 4: Well, despite President Trump's comments, it's not immediately clear if 56 00:02:58,400 --> 00:03:01,440 Speaker 4: layoffs have taken place. Meantime, the Senate is set to 57 00:03:01,520 --> 00:03:04,360 Speaker 4: vote again today on a stopgap spending bill that has 58 00:03:04,360 --> 00:03:07,880 Speaker 4: failed four times before. Senate Minority Leader Chuck Schumer says 59 00:03:07,880 --> 00:03:11,320 Speaker 4: House Speaker Mike Johnson's refused to negotiate with Democrats on 60 00:03:11,400 --> 00:03:13,000 Speaker 4: extending healthcare subsidies. 61 00:03:13,480 --> 00:03:16,160 Speaker 8: We've tried forty five days, and forty five days and 62 00:03:16,240 --> 00:03:17,400 Speaker 8: forty five days. 63 00:03:17,120 --> 00:03:17,799 Speaker 2: From March on. 64 00:03:18,160 --> 00:03:20,720 Speaker 8: We asked them to vote on it three times, the 65 00:03:20,800 --> 00:03:23,400 Speaker 8: Republicans in the Senate, they voted. 66 00:03:23,080 --> 00:03:24,040 Speaker 2: No three times. 67 00:03:24,120 --> 00:03:27,200 Speaker 4: But Speaker Johnson says there's time to negotiate once the 68 00:03:27,240 --> 00:03:28,600 Speaker 4: shutdowns over. 69 00:03:28,720 --> 00:03:31,600 Speaker 9: The funding runs out in December thirty first. The month 70 00:03:31,600 --> 00:03:33,880 Speaker 9: of October is a critical time for us to get 71 00:03:33,880 --> 00:03:36,920 Speaker 9: to this, but we can't when Chuck Schumer keeps voting 72 00:03:36,960 --> 00:03:38,960 Speaker 9: to shut the government down for political reasons. 73 00:03:39,040 --> 00:03:41,880 Speaker 4: Speaker Johnson and Leader Schumer appeared on CBS's Face to 74 00:03:41,880 --> 00:03:44,240 Speaker 4: the Nation heard Sundays on Bloomberg Radio. 75 00:03:44,600 --> 00:03:47,320 Speaker 3: Well Nathan, a federal judge, has temporarily blocked the Trump 76 00:03:47,360 --> 00:03:51,320 Speaker 3: administration from deploying any National Guard troops to Oregon during 77 00:03:51,680 --> 00:03:56,600 Speaker 3: protests against an immigration crackdown. US District Judge Karen Immergut, 78 00:03:56,600 --> 00:04:00,200 Speaker 3: at Trump appointee, issued a temporary order late Sunday that 79 00:04:00,280 --> 00:04:03,640 Speaker 3: will launch at least fourteen days holding the administration's plan 80 00:04:03,760 --> 00:04:07,200 Speaker 3: to deploye hundreds of troops from California and Texas to Portland. 81 00:04:07,720 --> 00:04:09,120 Speaker 2: Back to the markets now Karen. 82 00:04:09,200 --> 00:04:12,400 Speaker 4: Stocks in Japan surge to an all time high as 83 00:04:12,640 --> 00:04:16,480 Speaker 4: Sanai Takaichi, a pro stimulus conservative, is poised to become 84 00:04:16,560 --> 00:04:21,239 Speaker 4: Japan's first female prime minister. While equity investors embraced the news, 85 00:04:21,360 --> 00:04:25,880 Speaker 4: bond markets did not longer dated Japanese bonds slid, and 86 00:04:25,920 --> 00:04:28,680 Speaker 4: we get more from Bloomberg's sharing on in Tokyo. 87 00:04:29,000 --> 00:04:31,839 Speaker 10: We know that Sanaa Takaichi is a nationalist. We know 88 00:04:31,920 --> 00:04:34,000 Speaker 10: that she's a fan of Margaret Thatcher, a fan of 89 00:04:34,240 --> 00:04:37,960 Speaker 10: heavy metal music as well. But it's really the pro 90 00:04:38,000 --> 00:04:41,640 Speaker 10: growth policies that Santata Kaichi has talked about that is 91 00:04:41,680 --> 00:04:45,360 Speaker 10: really the focus for investors. She's talked about the bojspezy 92 00:04:45,440 --> 00:04:49,039 Speaker 10: monetary policy toned down her rhetoric during this election campaign, 93 00:04:49,320 --> 00:04:52,680 Speaker 10: but we know that she wants to continue expanding fiscal policy. 94 00:04:52,960 --> 00:04:56,800 Speaker 10: She's promised cash handel's tax rebates, hinting at raising the 95 00:04:56,839 --> 00:04:59,000 Speaker 10: tax free income allowance as well. 96 00:04:59,080 --> 00:05:02,719 Speaker 4: Bloomberg sherry On in Tokyo, Japan's Nike index surged four 97 00:05:02,760 --> 00:05:04,160 Speaker 4: and three quarters percent. 98 00:05:04,760 --> 00:05:05,080 Speaker 6: Nathan. 99 00:05:05,080 --> 00:05:07,040 Speaker 3: Here in the US, futures are higher as who begin 100 00:05:07,120 --> 00:05:09,320 Speaker 3: a new trading week. The S and P five hundred 101 00:05:09,400 --> 00:05:11,599 Speaker 3: sits at an all time high, coming off six straight 102 00:05:11,680 --> 00:05:14,920 Speaker 3: days of gains. Amy Wu Silverman is head of Derivative 103 00:05:14,920 --> 00:05:16,120 Speaker 3: Strategy for RBC. 104 00:05:16,520 --> 00:05:18,880 Speaker 11: Here we are with overall, with markets at all time 105 00:05:18,960 --> 00:05:22,440 Speaker 11: highs SKEW is relatively low. You know, all the hedges 106 00:05:22,480 --> 00:05:25,880 Speaker 11: that had been placed were not monetized because the markets 107 00:05:25,960 --> 00:05:29,240 Speaker 11: kept going up. And when I talked to investors, they say, 108 00:05:29,279 --> 00:05:31,760 Speaker 11: this just feels like the most reluctant rally. 109 00:05:32,400 --> 00:05:35,159 Speaker 3: And RBC's Amy wu Silverman the S and P five 110 00:05:35,240 --> 00:05:38,120 Speaker 3: hundred is that more than fourteen percent so far this year. 111 00:05:38,240 --> 00:05:40,880 Speaker 4: And this morning Karen Bloomberg Economics is out with its 112 00:05:40,960 --> 00:05:43,760 Speaker 4: latest outlook for global interest rates, and we get the 113 00:05:43,800 --> 00:05:46,400 Speaker 4: details on that from Bloomberg's John Tucker. 114 00:05:46,400 --> 00:05:50,080 Speaker 12: Good morning, John and Nathan. The forecast highlights a significant difference. 115 00:05:50,279 --> 00:05:52,800 Speaker 12: The US will be cutting rates and much of Europe 116 00:05:52,839 --> 00:05:55,719 Speaker 12: will stay put. According to Bloomberg Economics, the Fed's going 117 00:05:55,760 --> 00:05:58,480 Speaker 12: to follow up it's cut last month with two more 118 00:05:58,560 --> 00:06:01,200 Speaker 12: by year end, and continue with quarterly cuts in the 119 00:06:01,240 --> 00:06:04,880 Speaker 12: first nine months of twenty twenty six. By contrast, Western 120 00:06:04,920 --> 00:06:08,440 Speaker 12: European central banks are forecast to be on hold. I 121 00:06:08,480 --> 00:06:11,400 Speaker 12: Fed officials next to gather at the end of the month. 122 00:06:11,720 --> 00:06:14,200 Speaker 12: The FOMC is in something of a bind if they 123 00:06:14,200 --> 00:06:18,160 Speaker 12: cut rates too fast. The long predicted acceleration in inflation 124 00:06:18,240 --> 00:06:21,640 Speaker 12: from tariffs could materialize. By not cutting fast enough, the 125 00:06:21,720 --> 00:06:25,479 Speaker 12: labor market could quickly go south. Meantime, the European Central 126 00:06:25,480 --> 00:06:28,360 Speaker 12: Bank officials have made it clear they're comfortable with rates 127 00:06:28,480 --> 00:06:31,880 Speaker 12: where they are at present, concluding that inflation won't stray 128 00:06:31,920 --> 00:06:34,760 Speaker 12: too far from their two percent target. In New York, 129 00:06:34,760 --> 00:06:36,800 Speaker 12: on John Tucker Bloomberg Radio, All. 130 00:06:36,800 --> 00:06:39,159 Speaker 3: Right, John, thank you. In company news, Boeing may soon 131 00:06:39,200 --> 00:06:42,880 Speaker 3: be increasing its manufacturing output. Bloomberg News has learned Boeing, 132 00:06:42,880 --> 00:06:46,120 Speaker 3: as guiding suppliers at seven thirty seven max output could 133 00:06:46,160 --> 00:06:50,039 Speaker 3: reach a forty two jet monthly tempo as early as October. 134 00:06:50,279 --> 00:06:52,640 Speaker 3: To reach the first step in returning seven thirty seven 135 00:06:52,680 --> 00:06:55,480 Speaker 3: output to pre COVID levels, Boeing must still convince the 136 00:06:55,560 --> 00:06:59,040 Speaker 3: FAA that its factories and suppliers can keep pace while 137 00:06:59,080 --> 00:07:04,400 Speaker 3: maintaining qualities. Time now for look at some of the 138 00:07:04,440 --> 00:07:06,640 Speaker 3: other stories making news in New York and around the world, 139 00:07:06,680 --> 00:07:08,799 Speaker 3: and for that we're joined by Bloomberg's Michael Mahr. 140 00:07:08,880 --> 00:07:12,040 Speaker 13: Michael, good morning, Good morning, Karen. The Supreme Court's termed 141 00:07:12,040 --> 00:07:14,720 Speaker 13: agends today. The High Court we'll hear a number of 142 00:07:14,760 --> 00:07:18,560 Speaker 13: cases this year, some on its emergency docket concerning the 143 00:07:18,600 --> 00:07:22,880 Speaker 13: limits on executive authority of the president in situations involving 144 00:07:22,920 --> 00:07:27,760 Speaker 13: the firing of agency heads and imposing tariffs without congressional approval. 145 00:07:28,240 --> 00:07:31,760 Speaker 13: Last term, the Supreme Court addressed the scope of nationwide 146 00:07:31,840 --> 00:07:35,960 Speaker 13: injunctions as applied to the Birthright Citizenship Order. Now, the 147 00:07:36,080 --> 00:07:40,560 Speaker 13: justices potentially could be taking up whether that is constitutional. 148 00:07:41,120 --> 00:07:43,880 Speaker 13: Two men accused of setting a Boston police cruiser on 149 00:07:43,960 --> 00:07:46,760 Speaker 13: fire are scheduled to be in court today. It comes 150 00:07:46,800 --> 00:07:49,720 Speaker 13: after a group looking to race on the city streets 151 00:07:49,760 --> 00:07:52,480 Speaker 13: over the weekend. Cops arrived to break up the crowd 152 00:07:52,560 --> 00:07:55,280 Speaker 13: of more than one hundred people on Massachusetts Avenue in 153 00:07:55,320 --> 00:08:00,240 Speaker 13: Tremont Street. Several vehicles were blocking the intersections. They were 154 00:08:00,280 --> 00:08:02,880 Speaker 13: ready to race and broke it up, and that's when 155 00:08:02,920 --> 00:08:07,160 Speaker 13: the violence began. Someone smashed the back windshield. Officers came 156 00:08:07,200 --> 00:08:10,200 Speaker 13: out of the vehicle, fireworks were thrown inside, and the 157 00:08:10,240 --> 00:08:13,760 Speaker 13: crewiser burst into flames. Two people from Rhode Island were arrested, 158 00:08:13,800 --> 00:08:17,320 Speaker 13: but Boston Police Commissioner Michael Cox expects there will be more. 159 00:08:17,800 --> 00:08:20,360 Speaker 3: We will get every video and every piece of evidence 160 00:08:20,400 --> 00:08:22,640 Speaker 3: we can to find every individual that was involved. 161 00:08:22,720 --> 00:08:26,000 Speaker 13: The officers were not injured. At least five people were 162 00:08:26,080 --> 00:08:30,720 Speaker 13: killed after Russia launched drones, missiles, and guided aerial bombs 163 00:08:30,720 --> 00:08:34,040 Speaker 13: at Ukraine overnight in a major attack that officials there 164 00:08:34,200 --> 00:08:39,000 Speaker 13: said target at civilian infrastructure. Ukrainian President Vladimir Zelenski says 165 00:08:39,080 --> 00:08:42,720 Speaker 13: Moscow sent over fifty ballistic missiles and about five hundred 166 00:08:42,800 --> 00:08:47,520 Speaker 13: drones into nine regions. It's Breast cancer Awareness Month and 167 00:08:47,800 --> 00:08:51,360 Speaker 13: time to remind people about the importance of early detection, 168 00:08:51,559 --> 00:08:55,680 Speaker 13: starting with the very first breast exam. Doctor Darien Sutton 169 00:08:55,760 --> 00:08:59,160 Speaker 13: says men can get breast cancer as well if you have. 170 00:08:59,160 --> 00:09:01,600 Speaker 14: A family history, if you have a genetic risk. It's 171 00:09:01,640 --> 00:09:03,480 Speaker 14: not just for women, it's for all humans. If you 172 00:09:03,520 --> 00:09:06,040 Speaker 14: have that BRCA gen you need to talk to your 173 00:09:06,040 --> 00:09:07,439 Speaker 14: doctor about additional screening. 174 00:09:07,640 --> 00:09:08,920 Speaker 2: But knowing the symptoms. 175 00:09:08,920 --> 00:09:10,840 Speaker 14: If there is a change in your chest, if you 176 00:09:10,840 --> 00:09:12,800 Speaker 14: have a new lump, if there's a change in your nipple, 177 00:09:13,000 --> 00:09:15,240 Speaker 14: or there's any concerning signs, you need to talk to 178 00:09:15,280 --> 00:09:16,880 Speaker 14: your doctor to get evaluated. 179 00:09:17,040 --> 00:09:20,520 Speaker 13: Doctor Sutton spoke to ABC Global News twenty four hours 180 00:09:20,520 --> 00:09:22,640 Speaker 13: a day and whatever you want it with Bloomberg News 181 00:09:22,640 --> 00:09:24,840 Speaker 13: now not Michael Barr and this is Bloomberg here. 182 00:09:25,679 --> 00:09:26,760 Speaker 2: Thanks Michael all the time. 183 00:09:26,800 --> 00:09:29,480 Speaker 3: Now for our Bloomberg Sports Update, and for that we 184 00:09:29,559 --> 00:09:30,960 Speaker 3: bring in John Stashauer. 185 00:09:31,160 --> 00:09:31,720 Speaker 2: Thanks Darren. 186 00:09:31,760 --> 00:09:34,280 Speaker 8: The Toronto Blue Jays after winning Game one of the 187 00:09:34,320 --> 00:09:37,840 Speaker 8: Alds ten to one, one Game two over the Yankees 188 00:09:37,920 --> 00:09:40,319 Speaker 8: thirteen to seven, so Toronto will take a two to 189 00:09:40,320 --> 00:09:43,240 Speaker 8: nothing series lead to New York. Seattle beat Detroit three 190 00:09:43,240 --> 00:09:45,760 Speaker 8: to two. That series is tied at one and upset. 191 00:09:45,760 --> 00:09:48,200 Speaker 8: In Sunday night football at Buffalo, New England won twenty 192 00:09:48,240 --> 00:09:51,280 Speaker 8: three to twenty. Philadelphia blew a two touchdown lead and 193 00:09:51,320 --> 00:09:54,080 Speaker 8: lost at home to Denver twenty one to seventeen. So 194 00:09:54,120 --> 00:09:56,640 Speaker 8: there are no undefeated teams left in the NFL. Is 195 00:09:56,679 --> 00:10:00,000 Speaker 8: only one winless team, that's the Jets. That's for Bloomberg's 196 00:10:00,000 --> 00:10:00,600 Speaker 8: What's It's Update. 197 00:10:02,040 --> 00:10:05,840 Speaker 3: Stay with us more from Bloomberg Daybreak coming up after this. 198 00:10:10,040 --> 00:10:14,200 Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 199 00:10:14,360 --> 00:10:17,200 Speaker 1: and around the world on Bloomberg dot Com and the 200 00:10:17,240 --> 00:10:18,400 Speaker 1: Bloomberg Business app. 201 00:10:18,720 --> 00:10:20,280 Speaker 2: This is Bloomberg Daybreak. 202 00:10:20,440 --> 00:10:23,840 Speaker 4: Good morning, I'm Nathan Hager. The political crisis in France 203 00:10:23,880 --> 00:10:26,480 Speaker 4: has hit a whole new level. The country's Prime Minister, 204 00:10:26,600 --> 00:10:30,760 Speaker 4: Sebastian Lecornow, has resigned less than twenty four hours after 205 00:10:30,800 --> 00:10:33,960 Speaker 4: President Emanuel McCrone named a new cabinet that drew criticism 206 00:10:34,000 --> 00:10:37,520 Speaker 4: from seemingly all sides, including from some within it. For 207 00:10:37,600 --> 00:10:40,400 Speaker 4: the very Latest were joined by Bloomberg Daybreak, euro banker 208 00:10:40,880 --> 00:10:44,520 Speaker 4: Stephen Carroll, Stephen, good Morning. I'm honestly losing track of 209 00:10:44,520 --> 00:10:47,640 Speaker 4: how many prime ministers France has had in just this year. 210 00:10:47,760 --> 00:10:50,680 Speaker 2: What did lecornew in Good Morning. 211 00:10:51,360 --> 00:10:55,320 Speaker 15: Good Morning, Karen and Nathan look, they says the now 212 00:10:55,360 --> 00:10:57,480 Speaker 15: the shores is tenure for a prime minister. That's a 213 00:10:57,520 --> 00:10:59,920 Speaker 15: record that it has only been held since last a seven, 214 00:11:00,200 --> 00:11:03,120 Speaker 15: when you might remember Michelle Barnu went, but Sebastian Lecornu 215 00:11:03,200 --> 00:11:06,200 Speaker 15: has gone after twenty seven days in the job and 216 00:11:06,360 --> 00:11:10,600 Speaker 15: just fourteen hours after he unveiled his new cabinet, which 217 00:11:10,600 --> 00:11:13,600 Speaker 15: is also the shortest in history as well. This is 218 00:11:13,640 --> 00:11:16,720 Speaker 15: the same problem that has bedeviled every French prime minister 219 00:11:16,920 --> 00:11:20,960 Speaker 15: since the National Assembly snap elections last summer. This is 220 00:11:21,080 --> 00:11:24,920 Speaker 15: a question around being unable to form a majority in parliament. 221 00:11:24,960 --> 00:11:27,679 Speaker 15: Sebastian Leconnu has been the third prime minister since that 222 00:11:27,760 --> 00:11:31,160 Speaker 15: fractured parliament was returned to try to build a coalition. 223 00:11:31,440 --> 00:11:34,600 Speaker 15: He's been speaking in the past hour outside his office 224 00:11:34,679 --> 00:11:38,719 Speaker 15: in Paris, talking about how he negotiated as well as 225 00:11:38,720 --> 00:11:42,000 Speaker 15: he could behind the scenes, he couldn't see signs that 226 00:11:42,040 --> 00:11:45,000 Speaker 15: he would be able to build a sufficient coalition to 227 00:11:45,080 --> 00:11:48,200 Speaker 15: pass a budget through parliament or indeed address many of 228 00:11:48,240 --> 00:11:52,200 Speaker 15: the other key political issues that France is facing. He 229 00:11:52,280 --> 00:11:56,360 Speaker 15: had promised not to use the constitutional override mechanism that 230 00:11:56,400 --> 00:11:58,959 Speaker 15: he has available to him to force the budget through parliament. 231 00:11:59,000 --> 00:12:01,360 Speaker 15: He'd told the other part he wanted to build a 232 00:12:01,360 --> 00:12:04,440 Speaker 15: compromise with them, but he says the other parties weren't 233 00:12:04,480 --> 00:12:07,560 Speaker 15: willing to agree, even though they had made some signs 234 00:12:07,600 --> 00:12:09,679 Speaker 15: in private that they were willing to soften on some 235 00:12:09,720 --> 00:12:12,480 Speaker 15: of their positions. There was no consensus to be built, 236 00:12:12,480 --> 00:12:15,680 Speaker 15: and that's why he decided to resign now. One of 237 00:12:15,679 --> 00:12:18,800 Speaker 15: the key difficulties he had was after unveiling his range 238 00:12:18,800 --> 00:12:21,600 Speaker 15: of ministers yesterday, is that one of his most important 239 00:12:21,679 --> 00:12:27,760 Speaker 15: partners in his very minority government, the center right Republicans Party, 240 00:12:28,160 --> 00:12:30,360 Speaker 15: They had already said they weren't happy with the lineup 241 00:12:30,400 --> 00:12:32,360 Speaker 15: of ministers that were announced, despite the fact that their 242 00:12:32,440 --> 00:12:36,160 Speaker 15: leader Brunovottayo kept his job as Interior Minister in the 243 00:12:36,200 --> 00:12:39,280 Speaker 15: reshuffle there, so they weren't unhappy partners. They were due 244 00:12:39,280 --> 00:12:42,480 Speaker 15: to hold a meeting around now to try and discuss 245 00:12:42,559 --> 00:12:46,000 Speaker 15: their position in a government, a government that no longer exists. 246 00:12:46,640 --> 00:12:48,559 Speaker 4: So now that the corn New's out, it raises the 247 00:12:48,640 --> 00:12:51,720 Speaker 4: question once again about whether anybody is going to be 248 00:12:51,800 --> 00:12:54,959 Speaker 4: able to get a budget through this National Assembly, whether 249 00:12:55,120 --> 00:12:58,720 Speaker 4: anyone can be prime minister. We've had so many at 250 00:12:58,760 --> 00:13:02,000 Speaker 4: this point, so what are the options going forward to you. 251 00:13:02,679 --> 00:13:05,440 Speaker 15: It's the same three options that we had a month ago, 252 00:13:05,760 --> 00:13:08,120 Speaker 15: that we had at the end of last year, and 253 00:13:08,200 --> 00:13:10,720 Speaker 15: that we had in September of last year. When prime 254 00:13:10,720 --> 00:13:14,000 Speaker 15: Minister or President Emanuel Macron has been picking prime ministers, 255 00:13:14,000 --> 00:13:16,079 Speaker 15: he can try again. He can pick somebody else from 256 00:13:16,120 --> 00:13:19,440 Speaker 15: his own political family or from a different political family 257 00:13:19,480 --> 00:13:22,040 Speaker 15: within the Parliament. We've talked many times over the past 258 00:13:22,120 --> 00:13:25,079 Speaker 15: few months about the key role the center left Socialist 259 00:13:25,080 --> 00:13:27,640 Speaker 15: Party played and whether or not they could be tempted 260 00:13:27,679 --> 00:13:29,839 Speaker 15: into government. The last time around, they set out a 261 00:13:29,920 --> 00:13:33,960 Speaker 15: very clear agenda of measures that weren't palatable to the 262 00:13:33,960 --> 00:13:36,160 Speaker 15: center or the center right. So that presents the same 263 00:13:36,200 --> 00:13:38,559 Speaker 15: problem even if you did let them lead a government, 264 00:13:38,559 --> 00:13:41,000 Speaker 15: as to how you would build a coalition for a budget. 265 00:13:41,080 --> 00:13:44,520 Speaker 15: So that's one choice, go back to find another prime 266 00:13:44,520 --> 00:13:47,559 Speaker 15: minister and try again. You can call elections to the 267 00:13:47,640 --> 00:13:51,320 Speaker 15: National Assembly, what Emmanuel Macron did in June of last year, 268 00:13:51,640 --> 00:13:53,640 Speaker 15: but the polls don't indicate that you would end up 269 00:13:53,640 --> 00:13:56,800 Speaker 15: with in any greater consensus in Parliament now than you 270 00:13:56,880 --> 00:13:59,640 Speaker 15: did before. Although arguably French people are as sick of 271 00:13:59,679 --> 00:14:02,920 Speaker 15: this political turmoil as the markets appear to be. The 272 00:14:02,960 --> 00:14:06,720 Speaker 15: third option very unlikely. Emmanuel Macro himself has ruled it out, 273 00:14:06,760 --> 00:14:09,400 Speaker 15: would be that he would resign and call an early 274 00:14:09,679 --> 00:14:10,880 Speaker 15: presidential election. 275 00:14:11,240 --> 00:14:12,200 Speaker 2: Those are the options. 276 00:14:12,200 --> 00:14:15,080 Speaker 15: They don't get any easier, and it's difficult to see 277 00:14:15,080 --> 00:14:16,280 Speaker 15: the path forward. 278 00:14:16,240 --> 00:14:20,720 Speaker 4: Now, given the fact that President mccron appointed a cabinet 279 00:14:20,720 --> 00:14:24,760 Speaker 4: that didn't include too many changes. It does appear likely, 280 00:14:24,800 --> 00:14:28,400 Speaker 4: doesn't it that the President would try to stick it out. 281 00:14:28,440 --> 00:14:31,280 Speaker 4: But is he feeling any pressure at this point to 282 00:14:31,400 --> 00:14:32,720 Speaker 4: make some changes here? 283 00:14:33,240 --> 00:14:35,720 Speaker 15: Ultimately yes, but the changes that he can make are 284 00:14:35,720 --> 00:14:39,880 Speaker 15: only going to produce it would appear limited results. Whether 285 00:14:39,920 --> 00:14:42,480 Speaker 15: he'll attempt again to go back to some of those 286 00:14:42,520 --> 00:14:45,480 Speaker 15: parties and build a coalition or which is what we 287 00:14:45,480 --> 00:14:47,480 Speaker 15: thought he was doing the last time around, build a 288 00:14:47,520 --> 00:14:50,960 Speaker 15: consensus around some sort of budget proposals before putting a 289 00:14:51,000 --> 00:14:52,960 Speaker 15: government into place as a question, but we need to 290 00:14:53,040 --> 00:14:54,480 Speaker 15: keep an eye on the markets and all of this 291 00:14:54,600 --> 00:14:57,800 Speaker 15: as well. We've had French stocks selling off, particularly French banks, 292 00:14:58,040 --> 00:15:00,680 Speaker 15: but those government bond yields part of the problem in 293 00:15:00,720 --> 00:15:04,520 Speaker 15: France's difficult budget calculus rising again and the spread between 294 00:15:04,560 --> 00:15:06,840 Speaker 15: French and German yields what we use as a gauge 295 00:15:06,840 --> 00:15:10,160 Speaker 15: of risk in Europe when it comes to how investors 296 00:15:10,160 --> 00:15:13,080 Speaker 15: are viewing French debth. That's widened to the widest since 297 00:15:13,200 --> 00:15:17,280 Speaker 15: last December, two political crises ago, if you're counting, and 298 00:15:17,320 --> 00:15:20,359 Speaker 15: that is an issue that will weigh on Emmanuel Macron's 299 00:15:20,360 --> 00:15:23,000 Speaker 15: mind because he knows there are a series of deadlines 300 00:15:23,000 --> 00:15:25,760 Speaker 15: approaching for a budget. One has to be sent to 301 00:15:25,840 --> 00:15:28,880 Speaker 15: Brussels to the European Commission for approval within the next 302 00:15:29,200 --> 00:15:31,520 Speaker 15: couple of weeks, and an effort to try and put 303 00:15:31,560 --> 00:15:33,880 Speaker 15: that together and to stop a position where we're going 304 00:15:33,920 --> 00:15:36,120 Speaker 15: to end up with a rollover budget at the end 305 00:15:36,160 --> 00:15:38,600 Speaker 15: of the year, with the pain that would inflict on 306 00:15:38,680 --> 00:15:41,480 Speaker 15: both French taxpayers and on the state, is one that 307 00:15:41,520 --> 00:15:43,480 Speaker 15: he'll be sure to try to avoid. But as they 308 00:15:43,560 --> 00:15:46,160 Speaker 15: say at this point there are no easy paths out 309 00:15:46,320 --> 00:15:47,400 Speaker 15: of this crisis. 310 00:15:47,840 --> 00:15:50,320 Speaker 4: And to that point, Stephen, is you say the cat 311 00:15:50,320 --> 00:15:53,760 Speaker 4: comparis is down one point seven percent, So yeah, there 312 00:15:53,840 --> 00:15:56,360 Speaker 4: is pain in the market this morning as well. Thank 313 00:15:56,360 --> 00:15:58,680 Speaker 4: you for this, Stephen, for the update. That's Sploomberg day Break. 314 00:15:58,680 --> 00:16:02,560 Speaker 4: Europe banker Steve Carol with us this morning, Karen Nathan. 315 00:16:02,640 --> 00:16:05,360 Speaker 3: We're coming up on two years since the Hamas attack 316 00:16:05,440 --> 00:16:08,680 Speaker 3: on Israel that sparked a devastating war in Gaza. President 317 00:16:08,720 --> 00:16:11,160 Speaker 3: Trump isserving both sides to seal the deal on his 318 00:16:11,280 --> 00:16:14,200 Speaker 3: plan and the conflict. Indirect talks are said to begin 319 00:16:14,240 --> 00:16:17,400 Speaker 3: today in Egypt Israelly Prime Minister Benjamin et Yah, who 320 00:16:17,480 --> 00:16:19,600 Speaker 3: says he thinks peace is possible. 321 00:16:19,960 --> 00:16:22,440 Speaker 16: I hope it will happen, but I can't guarantee that 322 00:16:22,440 --> 00:16:25,320 Speaker 16: will happen, and so if it doesn't happen, what President 323 00:16:25,360 --> 00:16:27,440 Speaker 16: Trump has said is that he will back as will 324 00:16:27,480 --> 00:16:30,840 Speaker 16: completely in acting forcefully against Almas. 325 00:16:31,240 --> 00:16:33,520 Speaker 3: And that was Israeli Prime Minister Benjamin Att Yeah, who 326 00:16:33,560 --> 00:16:35,760 Speaker 3: went an interview with year own News and joining us 327 00:16:35,800 --> 00:16:39,760 Speaker 3: this morning from Jerusalem as Bloomberg News reporter Dan Williams. Dan, 328 00:16:39,800 --> 00:16:42,960 Speaker 3: good morning, what do you make right away of those 329 00:16:43,000 --> 00:16:45,880 Speaker 3: comments from Netan Yahoo, is that any sign that peace 330 00:16:45,920 --> 00:16:47,000 Speaker 3: can be reached here. 331 00:16:48,040 --> 00:16:51,280 Speaker 6: Well, it's either all. It's the President of the United 332 00:16:51,320 --> 00:16:55,760 Speaker 6: States Trump who described this deal, this proposal, as one 333 00:16:55,800 --> 00:16:58,840 Speaker 6: that would bring peace. He says peace off to three 334 00:16:58,880 --> 00:17:02,240 Speaker 6: thousand years of conflict. So he definitely sees an epical 335 00:17:02,240 --> 00:17:06,439 Speaker 6: opportunity here. Whether all that will be achieved maybe in doubt, 336 00:17:06,440 --> 00:17:09,960 Speaker 6: because right now what we have is a partial Hamas 337 00:17:10,000 --> 00:17:13,840 Speaker 6: agreement following a full embrace of the proposal buying it 338 00:17:14,040 --> 00:17:17,760 Speaker 6: now a partial Hamas agreement to enter into it, meaning 339 00:17:18,119 --> 00:17:21,359 Speaker 6: Hamas has said it's open to releasing. 340 00:17:21,359 --> 00:17:26,800 Speaker 17: The releasing the remaining forty eight hostages, and yeah, the 341 00:17:27,359 --> 00:17:31,080 Speaker 17: remaining forty eight hostages, and then discussing the other clauses 342 00:17:31,080 --> 00:17:31,879 Speaker 17: of the proposal. 343 00:17:32,280 --> 00:17:38,080 Speaker 6: Hamas's misgivings are over the demand that it relinquish its weaponry, 344 00:17:38,080 --> 00:17:41,879 Speaker 6: that it fully relinquished power. Effectively, this proposal would see 345 00:17:42,000 --> 00:17:45,520 Speaker 6: Hamas ousted from the Gaza Strip and end of Hamas 346 00:17:45,840 --> 00:17:49,600 Speaker 6: institutionally in exchange for the physical survival of the remaining 347 00:17:49,640 --> 00:17:52,959 Speaker 6: Hamas members, who would presumably be offered an amnesty. So 348 00:17:53,320 --> 00:17:55,280 Speaker 6: it would appear that all parties are getting together, they 349 00:17:55,280 --> 00:17:58,680 Speaker 6: don't want to miss up an opportunity for that hostage release. 350 00:17:59,160 --> 00:18:02,240 Speaker 6: But making quite clear, and he does have vocal support 351 00:18:02,240 --> 00:18:05,080 Speaker 6: for Trump on this, that if Hamas doesn't get with 352 00:18:05,080 --> 00:18:08,159 Speaker 6: a program for what remains of the plan, Israel is 353 00:18:09,119 --> 00:18:12,000 Speaker 6: ready to redouble its attacks in the Gaza strip, where 354 00:18:12,000 --> 00:18:16,000 Speaker 6: it already controls something between seventy and eighty percent of 355 00:18:16,000 --> 00:18:19,800 Speaker 6: the territory, a territory that's really been laid ruined by 356 00:18:19,880 --> 00:18:22,919 Speaker 6: this two year old war that the Israel is prepared 357 00:18:22,960 --> 00:18:25,200 Speaker 6: to go in and it is words finish the job 358 00:18:25,480 --> 00:18:30,000 Speaker 6: by effectively crushing Hamas militarily and seeing an end to 359 00:18:30,119 --> 00:18:30,760 Speaker 6: that regime. 360 00:18:31,400 --> 00:18:33,720 Speaker 3: Yeah, and their talks are going on today. Who is 361 00:18:33,800 --> 00:18:37,159 Speaker 3: taking part in these talks today specifically. 362 00:18:37,680 --> 00:18:40,720 Speaker 6: Well, we already have the Hamas delegation there. It's led 363 00:18:40,760 --> 00:18:44,560 Speaker 6: by the de facto leader of outside Gaza, a man 364 00:18:44,600 --> 00:18:46,960 Speaker 6: who was actually out of public site for a number 365 00:18:46,960 --> 00:18:50,360 Speaker 6: of weeks because he was among the leaders of Hamas 366 00:18:50,400 --> 00:18:55,119 Speaker 6: that were targeted in a failed Israeli assassination strike in Cutter. 367 00:18:55,680 --> 00:18:59,080 Speaker 6: Though the capital of cut Cutter, like Egypt, has been 368 00:18:59,240 --> 00:19:02,320 Speaker 6: mediating which being Hamas in Israel during this war. So 369 00:19:02,440 --> 00:19:06,520 Speaker 6: he has now led this delegation to Egypt, specifically the 370 00:19:06,560 --> 00:19:10,360 Speaker 6: Red Sea resort of Charamelschet in the coming hours. We're 371 00:19:10,359 --> 00:19:14,560 Speaker 6: expecting in an Israeli delegation, a working delegation to be 372 00:19:14,720 --> 00:19:18,480 Speaker 6: out there. Basically, what we're waiting for here, all these 373 00:19:18,520 --> 00:19:21,160 Speaker 6: relies are waiting for is a sign that Hamas really 374 00:19:21,160 --> 00:19:23,359 Speaker 6: is on board with and able to deliver those forty 375 00:19:23,359 --> 00:19:28,800 Speaker 6: eight hostages, at which point Nathaniel's top advisor, Strategic Affairs, 376 00:19:28,840 --> 00:19:32,760 Speaker 6: Minister Rondermer, would join the Israeli delegation. We're also expecting 377 00:19:32,880 --> 00:19:37,240 Speaker 6: Jared Kushner and Steve Whitkoff, some two main envoys on 378 00:19:37,320 --> 00:19:40,760 Speaker 6: this in shamashef It's unclear if they've arrived or when 379 00:19:40,760 --> 00:19:44,199 Speaker 6: they would be arriving, but would appear that they, like 380 00:19:45,080 --> 00:19:48,159 Speaker 6: Minister Durhma of Israel, may be waiting to ensure that 381 00:19:48,200 --> 00:19:52,840 Speaker 6: there's no backsliding, reneging, time buying on the part of Hamas. Trump, 382 00:19:52,920 --> 00:19:56,120 Speaker 6: for his part, has said that he won't be patient 383 00:19:56,840 --> 00:20:00,040 Speaker 6: beyond a few days, so did Secretary Rubio. Everyon I 384 00:20:00,040 --> 00:20:02,520 Speaker 6: think would like to see this concluded, at least the 385 00:20:02,640 --> 00:20:05,960 Speaker 6: hostage stage concluded in the coming days, within this week. 386 00:20:07,800 --> 00:20:11,240 Speaker 3: This is Bloomberg Daybreak, Your Morning podcast on the stories 387 00:20:11,320 --> 00:20:14,360 Speaker 3: making news from Wall Street to Washington and beyond. 388 00:20:14,600 --> 00:20:17,000 Speaker 4: Look for us on your podcast feed by six am 389 00:20:17,040 --> 00:20:20,440 Speaker 4: Eastern each morning, on Apple, Spotify, or anywhere else you listen. 390 00:20:20,640 --> 00:20:23,480 Speaker 3: You can also listen live each morning starting at five 391 00:20:23,520 --> 00:20:26,240 Speaker 3: am Wall Street Time on Bloomberg eleven three to zero 392 00:20:26,240 --> 00:20:29,160 Speaker 3: in New York, Bloomberg ninety nine to one in Washington, 393 00:20:29,200 --> 00:20:33,160 Speaker 3: Bloomberg ninety two nine in Boston, and nationwide on serious 394 00:20:33,359 --> 00:20:35,080 Speaker 3: XM Channel one twenty one. 395 00:20:35,320 --> 00:20:38,040 Speaker 4: Plus listen coast to coast on the Bloomberg Business app 396 00:20:38,080 --> 00:20:40,920 Speaker 4: now with Apple CarPlay and Android auto interfaces. 397 00:20:41,119 --> 00:20:44,160 Speaker 3: And don't forget to subscribe to Bloomberg News Now. It's 398 00:20:44,160 --> 00:20:46,879 Speaker 3: the latest news whenever you want it in five minutes 399 00:20:47,000 --> 00:20:50,120 Speaker 3: or less. Search Bloomberg News Now on your favorite podcast 400 00:20:50,160 --> 00:20:52,399 Speaker 3: platform to stay informed all day long. 401 00:20:52,680 --> 00:20:55,080 Speaker 2: I'm Karen Moscow and I'm Nathan Hager. 402 00:20:55,240 --> 00:20:57,280 Speaker 4: Join us again tomorrow morning for all the news you 403 00:20:57,320 --> 00:20:59,800 Speaker 4: need to start your day right here on Bloomberg Day 404 00:20:59,800 --> 00:20:59,919 Speaker 4: Brea