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Speaker 1: Good morning. It's Monday, the tenth of July in London.

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

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Speaker 2: And I'm Stephen Carroll. Coming up today, Joe Biden is

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Speaker 2: in the UK ahead of crunch NATO talks on everything

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Speaker 2: from cluster munitions to Sweden's membership request.

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Speaker 1: There's finally a bit of good news for the UK's

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Speaker 1: ongoing battle with inflation as the number of job candidates rises.

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Speaker 2: And the BBC once again finds itself at the center

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Speaker 2: of a media storm, this time over allegations that a

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Speaker 2: leading presenter paid for sexual photos from a teenager. Let's

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Speaker 2: start though, with the roundup of our top stories. US

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Speaker 2: President Joe Biden is in Britain today, with the two

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Speaker 2: countries split on how to help Ukraine. The UK government

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Speaker 2: has questioned the American leaders plans to send controversial cluster

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Speaker 2: bombs to support Kiev. Former UK National Security Advisor Peter

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Speaker 2: Ricketts called the move an uncomfortable choice.

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Speaker 3: I think we do it to the Ukrainians to understand

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Speaker 3: why they need these weapons. Haven't had the level of

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Speaker 3: precision munitions.

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Speaker 1: From the West they wanted.

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Speaker 3: We haven't given them the fighter aircraft they wanted and

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Speaker 3: they see this as a potential game changer.

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Speaker 2: Ricker's view is shared by Italy, Spain and Germany. They're

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Speaker 2: among the NATO members who Biden will be meeting at

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Speaker 2: the Defense Alliance Summer tomorrow. He'll be helping to convince them,

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Speaker 2: plus secure Sweden's bid to join the military block.

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Speaker 1: Here in the UK, a new survey has shown the

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Speaker 1: number of job candidates arising at the fastest pace in

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Speaker 1: two and a half years and wage pressures easing. That

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Speaker 1: should be good news for the Bank of England at

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Speaker 1: this fight against inflation. Bloombergs U and POTS reports.

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Speaker 3: The latest data suggests a calling of the UK's labor markets.

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Speaker 3: The June poll of recruiters by KPMG and the Recruitment

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Speaker 3: and Employment Confederation found firms were scaling back hiring and

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Speaker 3: increasing redundancies. This as employers faced an uncertain economic outlook,

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Speaker 3: while costs of living pressures motivated people to look for work.

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Speaker 3: The result was the fastest increase in labor supply since

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Speaker 3: the twenty twenty and the smallest bump up in starting

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Speaker 3: salaries for over two years. The data will be welcomed

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Speaker 3: by the Bank of England as it struggles to get

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Speaker 3: a grip on inflation in the face of a red

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Speaker 3: hot labor market. Over the weekend, Governor Andrew Bailey rejected

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Speaker 3: calls to lift the BIOWIESE inflation target higher than two percent,

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Speaker 3: saying that changes could damage credibility and unpick expectations. And

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Speaker 3: your inflation is currently eight point seven percent, over four

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Speaker 3: times the central Bank's targets and the highest in the

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Speaker 3: G seven In London. I'm unpot's been big day break Europe.

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Speaker 2: Meanwhile, the governor of the Bank of France says the

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Speaker 2: ECB is nearly finished raising rates. However, he does say

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Speaker 2: they'll need to stay at a high plateau for some

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Speaker 2: time to come. Hossviewire the Gallo believes the central banks

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Speaker 2: records cycle of tightening will bring inflation towards its two

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Speaker 2: percent target by twenty twenty five. Euro Area policymakers are

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Speaker 2: expected to raise rates at their next meeting on the

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Speaker 2: twenty seventh of July.

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Speaker 1: Now, the US Treasury Secretary Janet Yellen says that it's

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Speaker 1: too early to rule out of a session in the country.

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Speaker 1: Her comments come after data show that the economy added

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Speaker 1: two hundred and nine thousand jobs last month, less than

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Speaker 1: economists had expected. Speaking to CBS's Faced the Nation, Yellen

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Speaker 1: was asked if the risk of a recession could be

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Speaker 1: taken off the table.

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Speaker 4: It's not completely off the table, but we would expect,

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Speaker 4: with the job market as strong as it is now,

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Speaker 4: to see a slower pace of ongoing job gains.

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Speaker 1: Yellen's comments come just a week after Bloomberg Economics said

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Speaker 1: that it expects a US recession to begin towards the

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Speaker 1: end of twenty twenty three.

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Speaker 2: Johnny Allen also struck a positive but pragmatic tone about

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Speaker 2: the relationship with China. She aimed to reassure officials the

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Speaker 2: world's second largest economy after both sides restricted key trade.

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Speaker 4: I believe that my bilateral meetings, which totaled about ten

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Speaker 4: hours over two days, served as a step forward in

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Speaker 4: our effort to put the US China relationship on a

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Speaker 4: surer footing.

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Speaker 2: The US Treasury Secretary's four day trip came as President

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Speaker 2: Biden's team prepare an executive order curbing outbound investment.

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Speaker 1: China's consumer inflation rate is to zero in June. That

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Speaker 1: is lower than the Bloomberg survey estimate of a gain

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Speaker 1: of two tenths of one percent. The inflation data adds

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Speaker 1: to evidence that the economic recovery is cooling, with core

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Speaker 1: inflation also slowing to four tenths of one percent. In

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Speaker 1: the meantime, producer prices fell by five point four percent,

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Speaker 1: that is compared with a four point six percent drop

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Speaker 1: in the previous month. Both gauges add to evidence that

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Speaker 1: the recovery is weakening in China, with concerns about deflation

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Speaker 1: weighing on confidence.

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Speaker 2: The BBC has been in touch with police about one

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Speaker 2: of its presenters who is accused of paying a teenager

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Speaker 2: thousands of pounds for explicit images. We do not know

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Speaker 2: the identity of the personality, but he has been suspended

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Speaker 2: while the corporation investigates. Some stars like Nikki Campbell, Gary

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Speaker 2: lineker Ryland Clark and Jeremy Devine have issued denials after

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Speaker 2: being falsely accused. Online media law consultant Ian Bloom says

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Speaker 2: the corporation needs to act.

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Speaker 5: At the moment. The precious clearly on the BBC to

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Speaker 5: do something, and to do something quickly. The rumor mill

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Speaker 5: on the Internet is an overdrive and every possible presenter

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Speaker 5: it is being suggested that's intolerable for all of them

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Speaker 5: who are not the one in question.

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Speaker 2: BBC's Director General says he takes these types of claims

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Speaker 2: incredibly seriously. Tim Davey discussed the issue with the Culture

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Speaker 2: Secretary Lucy Fraser yesterday.

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Speaker 1: Those were a few of our top stories for you

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Speaker 1: this morning. There was a fantastic piece. I wonder whether

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Speaker 1: you read it over the weekend. Britain's interest rates are

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Speaker 1: spiraling into a national obsession. So we know that the

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Speaker 1: cost of living crisis has been brewing for months, but

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Speaker 1: of course last week the fear over interest rates actually

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Speaker 1: just seemed to accelerate on its own, the benchmark ten

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Speaker 1: year rate reaching a high four point seven percent. So

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Speaker 1: in this piece, you know, talking about why that happened

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Speaker 1: and what may come. The question is still on everyone's

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Speaker 1: minds how much high can interest rates and bond deals

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Speaker 1: actually go in the UK?

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Speaker 2: It does seem to be feeling into the conversation that

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Speaker 2: a lot of people are having. I mean, if you

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Speaker 2: weren't worried about reflexing your mortgage rate now like a

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Speaker 2: couple of months ago, you definitely are now. And I

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Speaker 2: think that there are so many more people realizing that

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Speaker 2: this is going to play into their personal finances, even

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Speaker 2: if it hasn't yet, or if you've had savings since

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Speaker 2: the pandemic that have been able to cushion the creeping

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Speaker 2: up of price rises that we've all been seeing.

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Speaker 1: Yeah. Absolutely, and I think that's why there's also a

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Speaker 1: great deal of focus on the match and howse speech tonight.

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Speaker 1: The Chancellor Jeremy Hunt and the Bank of England Governor

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Speaker 1: Andrew Bailey will be delivering speeches this evening at the

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Speaker 1: building just over the road from where we are in

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Speaker 1: the City of London. It's not normally you know, a

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Speaker 1: kind of huge speech, but actually enormous amounts of tension

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Speaker 1: I think in terms of what reforms may come for

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Speaker 1: the City of London in those speeches. But also you

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Speaker 1: know a lot of interest in both of these figures,

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Speaker 1: these individuals because of interest rates and what's happening in

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Speaker 1: the market.

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Speaker 2: Yeah, certainly we'll be in of course, we'll bringing details

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Speaker 2: of that on the program tomorrow. Let's for now they'll

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Speaker 2: turn to the latest political movements ahead of tomorrow's NATO

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Speaker 2: leaders summit. Turkey's President resh of Typer erdwan As meeting

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Speaker 2: Sweden's Prime minister later as part of the country's push

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Speaker 2: for accession to the Alliance. Are euro correspondent Maria Today,

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Speaker 2: I was in Vilnius ahead of that NATO leader's some

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Speaker 2: of good morning to you, Maria. US President Joe Biden

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Speaker 2: speaking to Erduwan ahead of his meeting with Sweden's of Christensen.

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Speaker 2: What should we expect from today?

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Speaker 6: Yeah, an erder one has been very active in the

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Speaker 6: diplomatic front this weekend. We know there was a phone

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Speaker 6: call yesterday we the United States which lasted about forty

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Speaker 6: five to one hour. Time will to know that Prisoner

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Speaker 6: one in fact met with President Lensky of Ukraine on

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Speaker 6: the Friday. Now, a lot of the focus now for

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Speaker 6: DA one is twofold. One is obviously Sweden, and then

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Speaker 6: the other one has to do with the almost never

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Speaker 6: ending story around the F sixteen. That's the obviously the

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Speaker 6: fighter jets. I think when it comes to Sweden, a

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Speaker 6: lot of the diplomacy will kick in today and kicks

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Speaker 6: off already from tonight. We are expecting a meeting between

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Speaker 6: President erd One and as you say, the Swedish Prime Minister.

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Speaker 6: The expectation, hopefully for the Swedish is that this will

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Speaker 6: bring about some kind of political breakthrough and finally get

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Speaker 6: the ratification going. We know by now it's materially timely.

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Speaker 6: It's impossible to get the ratification from the Turkish parliament

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Speaker 6: before the end of the summit. But what they want

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Speaker 6: is now a clear signal that this will happen from

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Speaker 6: Earth to one and look for the time the end.

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Speaker 6: They played this very hertful. You know, they still say

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Speaker 6: they're not satisfied that Turkey has security concerns, and Person

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Speaker 6: one had some very tough words still saying that in

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Speaker 6: a country like Sweden you still get terrorists that walk

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Speaker 6: out and about freely. Obviously the Swedish government will have

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Speaker 6: a different perspective, but obviously this is where we are

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Speaker 6: with twenty four hours to go before the summit starts.

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Speaker 7: Yeah.

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Speaker 1: Absolutely. I Meanwhile, a sort of longer term issue, President

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Speaker 1: Biden says Ukraine is not yet ready to join NATO.

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Speaker 1: How does that bode for their aspirations in this meeting.

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Speaker 6: Look, he was very clear yesterday a CNN. Obviously that's

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Speaker 6: the entry that we're fair to where just the quote,

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Speaker 6: as you say, is Ukraine has not ready yet for

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Speaker 6: membership of NATO. Again repeated this idea too, that this

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Speaker 6: is a country that is fighting war, and also the

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Speaker 6: warning that if Ukraine where to join NAT or would

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Speaker 6: join NATOR so fast, it would bring about confrontation between

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Speaker 6: well NATO members Russia. Obviously that's a severe escalation. And

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Speaker 6: again I think beyond that, there's a question of narratives

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Speaker 6: to the United States has always been very well careful

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Speaker 6: about projecting this idea or feeding into this idea that

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Speaker 6: the Kremlin likes to put out. So they're not fighting Ukraine,

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Speaker 6: that really are fighting NATO in Ukraine. This is just

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Speaker 6: a geographical location, but instead Russia's really fighting against the

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Speaker 6: NATO machine. So I think that feeds into that, But

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Speaker 6: to me, there was nothing outstanding or surprising about that.

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Speaker 6: That is the precision that had been held by the

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Speaker 6: US administration for a very long time. And what they

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Speaker 6: say is we shall focus now on giving Ukraine what

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Speaker 6: they need so they're able to attain their objectives on

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Speaker 6: the battlefield. I think, funnily enough, in the two day summit,

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Speaker 6: we're going to see what is a lot of linguistical

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Speaker 6: and grammatical kind of exercises going on to be able

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Speaker 6: to get that point from the US across, but also

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Speaker 6: give the Ukrainians something that they can kind of say, okay,

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Speaker 6: we're now finally moving closer to NATO, and not immediately.

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Speaker 6: They're not expecting a formal invitation. They were never expecting it.

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Speaker 6: They never expected that. You know, we have to be clear,

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Speaker 6: but almost a political yes that one date this will happen.

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Speaker 6: There's also a big question mark around President Zelenski. Will

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Speaker 6: he attend the summit or not. We know he's invited

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Speaker 6: for for the time being, it's not clear whether he

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Speaker 6: will travel to Vilnius.

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Speaker 2: Ok Invilnis. Thank you very much for joining us on that,

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Speaker 2: and later Maria, we'll be speaking to the host of

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Speaker 2: the summer Lithuania's president for Bloomberg as well.

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Speaker 1: Coming up next to the BBC on the backfoot.

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Speaker 2: Now the paper review on Bluebird, Daybreak Europe, the news

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Speaker 2: you need to know from today's papers, and Bloomberg lean

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Speaker 2: Goerrens joins us with today's review of the newspapers. Good

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Speaker 2: morning to you, liamn. We're starting with many newspaper headlines,

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Speaker 2: leading with the BBC suspense star and calls in police.

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Speaker 2: What's the Guardian saying about this story?

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Speaker 7: Stephen, good morning to you. You outlined some of the

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Speaker 7: top lines from the store in what's been escalating and

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Speaker 7: basically swirling over the weekend, and police officers are due

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Speaker 7: to meet with the BBC today after more allegations about

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Speaker 7: the network's presenter at the heart of the scandal, which

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Speaker 7: just will not stop gaining ground. More details have been

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Speaker 7: revealed in many of this morning's newspapers, with the Met

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Speaker 7: Police confirming it was in discussions with the BBC but

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Speaker 7: had actually not received a formal allegation. Media outlets have

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Speaker 7: not named the presenter due to the UK's increasingly strong

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Speaker 7: privacy laws, as a reason for the Sun newspaper not

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Speaker 7: to identify them now. It was the Sun newspaper that

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Speaker 7: first released this story into the allegations about the BBC presenter.

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Speaker 7: The presenter is accused of sending an unnamed teenager thousands

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Speaker 7: of pounds for sexually explicit photos. Now, the teenager was

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Speaker 7: seventeen at the time. We do understand the teenager is

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Speaker 7: now twenty years old and just a thought to remember.

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Speaker 7: Although the age of consent in England and Wales is

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Speaker 7: sixteen years old, the minimum age at which people are

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Speaker 7: allowed to send explicit photographs is actually eighteen. So this

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Speaker 7: is where you know the law has coming into action

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Speaker 7: and the Met police are getting involved. Many people are

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Speaker 7: speculating The Culture Secretary Lucy Fraser has already held talks

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Speaker 7: with the BBC director Tim Davey, and the corporation has

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Speaker 7: put out a statement shortly after this meeting happened. But interestingly,

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Speaker 7: you know, we have to remember one thing at the

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Speaker 7: heart of the story is a teenager and the BBC

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Speaker 7: has been accused of dragging its feet and the presenter's

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Speaker 7: still been on TV last week even though these allegations

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Speaker 7: were first reported in May, and more allegations coming out

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Speaker 7: on Thursday.

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Speaker 1: Okay, all right on that story. The headline in the

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Speaker 1: telegrapher BT on high alert for a German takeover. Talk

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Speaker 1: us through this business story.

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Speaker 7: Yeah, Caroline BT. Right, it's an absolute household name here

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Speaker 7: in the UK and we all know about it. But apparently,

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Speaker 7: according to the Telegraph, it's preparing this defense in the

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Speaker 7: face of a possible bid by Deutsche Telecom. Now Deutsche

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Speaker 7: Telecom do own a stake in BT, and speculation in

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Speaker 7: the telecom's industry and the city is red hot as

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Speaker 7: BT battles with a fifteen billion pound investment and that's

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Speaker 7: basically into the new fiber optic network and a growing

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Speaker 7: debt pile for BET. I don't know if you know,

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Speaker 7: but if you walk around London it feels like all

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Speaker 7: the roads are being dug up as the new fiber

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Speaker 7: optics are put in place. The company's debt pile excluding

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Speaker 7: leases stands at fourteen billion pounds at the moment. And

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Speaker 7: you know, Caroline, another thing that's really hitting the company's

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Speaker 7: rising interest rates because they are plowing billions into fiber

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Speaker 7: optic but things are getting more expensive.

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Speaker 1: Yeah, but this I think is also the fallout from

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Speaker 1: Thames Water, isn't it. Everybody is looking at different industries

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Speaker 1: to work out whether their debt is inflation link not

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Speaker 1: inflation link. You know how much rising rates are going

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Speaker 1: to affect their bottom line. So I think BT's also

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Speaker 1: in people's crosshairs.

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Speaker 2: Well, let's go to the Financial Times next, Leanne with

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Speaker 2: the story about banking made not so easy. Monzo rejected

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Speaker 2: Jeremy Hunt's account application.

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Speaker 7: Now, Stephen and Caroline, this issue massively hit the headline

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Speaker 7: after Nigel Farage, the former Brexit party leader, claimed that

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Speaker 7: he couldn't get a bank account that was being opened,

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Speaker 7: and he claimed that the pep's regime maybe the reason

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Speaker 7: the elite bank Coots decided to close down his long

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Speaker 7: standing bank account, the online bank Monzo. Apparently, according to

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Speaker 7: the Chancellor Jeremy Hunt, who has been speaking to the ft,

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Speaker 7: did not allow him to open account with them last year,

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Speaker 7: and speaking to the newspaper, he says that this illustrates

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Speaker 7: what he regards as one of the over onerous vetting

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Speaker 7: that banks must carry out on people in public life.

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Speaker 7: Hunters back to review by the Financial Conduct Authority into

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Speaker 7: the politically exposed Person's regime. This is PEPs Caroline. This

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Speaker 7: is a set of rules designed to combat corruption and

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Speaker 7: bribery of public officials. But it's something Jeremy Hunter's saying

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Speaker 7: is blocking people from getting accounts.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Street and beyond.

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